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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Order)

This Order amends the National Employment Savings Trust Order 2010 (S.I. 2010/917) (“the Order”) and the Pensions Act 2008 (c. 30) (“the Act”).

Section 67(1) of the Act and article 3 of the Order established a pension scheme known as the National Employment Savings Trust (“the Scheme”). The National Employment Savings Trust Corporation established under section 75 of the Act was appointed as the trustee of the Scheme (“the Trustee”) under article 4 of the Order.

Paragraph (5) of article 2 amends article 19 of the Order so as to provide that the Trustee may admit a person as a member of the Scheme, unless the person has already been admitted as a member, if certain conditions are satisfied. These conditions are that—

  • the conditions set out in regulation 12(2) and (3) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (S.I. 1991/167) (“the Regulations”) or of the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991 (S.R. (NI) 1991 No 37) (“the NI Regulations”), which relate to transfers of a member’s accrued rights without consent, are satisfied in relation to that person; and

  • the employer referred to in regulation 12(2) of the Regulations or of the NI Regulations as the employer which uses the receiving scheme is a participating employer in the Scheme and is currently making contributions to the Scheme on behalf of or in respect of a jobholder.

Paragraph (7) of article 2 removes articles 22 to 26 from the Order so that there is no annual contribution limit for contributions made in each tax year by, or on behalf or in respect of, a member of the Scheme.

Paragraph (9) of article 2 removes article 30 from the Order, which limited the Trustee to accepting transfers in which were cash transfer sums.

Paragraph (11) of article 2 amends article 32 of the Order so as to lift the restrictions on transfers of a member’s pension account to another pension scheme. The restrictions limited such transfers to situations where the conditions in regulation 2(2) or (3) of the Transfer Values (Disapplication) Regulations 2010 (S.I. 2010/6) or, in Northern Ireland, of the Transfer Values (Disapplication) Regulations (Northern Ireland) 2010 (S.R. (NI) 2010 No 121) were met.

Paragraphs (2), (3), (4), (6), (8) and (10) of article 2 make consequential amendments to the Order.

Article 3 repeals section 70 of the Act to remove the requirement to prescribe the maximum amount of contributions that may be made by or in respect of a member in any tax year.

An assessment of the impact of this Order on private sector and civil society organisations has been made. A copy of this assessment is available in the libraries of both Houses of Parliament and alongside this instrument on www.legislation.gov.uk. Copies may also be obtained from the Better Regulation Unit of the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA.