Paragraph 4 Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015

(1)

Regulation 2 (interpretation)^f1 is amended as follows.

(2)

In paragraph (1)—

(a)

in the appropriate places insert—

““the 2021 Act” means the Pension Schemes Act 2021^f2;”;

““collective contribution percentage charge” has the meaning given in regulation 5A(3);”;

““collective flat fee charge” has the meaning given in regulation 5A(3);”;

““collective existing rights charge” has the meaning given in regulation 5A(3);”;

““collective money purchase benefit” has the meaning given in section 1(1) of the 2021 Act;”;

““collective money purchase scheme” has the meaning given in section 1(2) of the 2021 Act;”;

““collective single charge structure” has the meaning given in regulation 5A(2);”;

““qualifying collective money purchase scheme” has the meaning given in regulation 3A;”;

““qualifying section employer” means an employer in relation to whom a section of a pension scheme, which is a collective money purchase scheme for the purposes of section 1(2)(b) of the 2021 Act, is being used by a qualifying scheme in relation to at least one of its jobholders;”;

““specified section” means a relevant scheme that is a collective money purchase scheme for the purposes of section 1(2)(b) of the 2021 Act in which at least one qualifying section employer participates;”;

(b)

in the definition of “contributing member”—

(i)

after “relevant scheme” insert “, that is not a collective money purchase scheme,”; and

(ii)

after “money purchase benefits” insert “(other than collective money purchase benefits)”;

(c)

in the definition of “performance fee”^f3—

(i)

at the beginning of sub-paragraph (b) insert “in the case of a relevant scheme that is not a collective money purchase scheme,”;

(ii)

at the end of sub-paragraph (b) insert “or”; and

(iii)

after sub-paragraph (b) insert—

“(c)
in the case of a relevant scheme that is a collective money purchase scheme, is not calculated by reference to the value of members’ rights under the scheme;”;

(d)

in the definition of “specified scheme” after “relevant scheme” insert “, that is not a collective money purchase scheme for the purposes of section 1(2)(b) of the 2021 Act,”.

(3)

In paragraph (2)—

(a)

in sub-paragraph (a), after “money purchase benefits” insert “other than collective money purchase benefits”;

(b)

omit “or” at the end of sub-paragraph (a);

(c)

in sub-paragraph (b), after “money purchase benefits,” insert “other than collective money purchase benefits,”;

(d)

at the end of sub-paragraph (b), omit the comma and insert “; or”; and

(e)

after sub-paragraph (b) insert—

“(c)
a collective money purchase scheme,”.

(4)

After paragraph (2), insert—

“(2A)
Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the 2021 Act (see section 1(2)(b)) is to be treated for the purposes of these Regulations as a separate scheme.”.

(5)

After paragraph (3), insert—

“(3A)
Where, in these Regulations, a collective flat fee charge is to be calculated and these Regulations have applied to a member of a qualifying collective money purchase scheme for a period of less than a charges year, the charge associated with that member for the purposes of calculating the collective flat fee charge (see regulation 6A(4)(a)) must be calculated on a pro rata basis.”.

(6)

At the end of paragraph (4), omit the full-stop and insert—

“;

(d)
a charge under a collective single charge structure;

(e)
a collective existing rights charge.”.

(7)

In paragraph (5)^f4 for “When a charge under a single charge structure is” substitute “When the charges in paragraph (5A) are”.

(8)

After paragraph (5), insert—

“(5A)
For the purposes of paragraph (5), the charges are—

(a)
a charge under a single charge structure;

(b)
a charge under a collective single charge structure.”.

Annotations

Footnotes

f1: Regulation 2 was amended by S.I. 2016/304, 2017/774 and 2021/1070.
f2: 2021 c. 1.
f3: The definition of “performance fee” was inserted by S.I. 2021/1070.
f4: Paragraph 5 was inserted by S.I. 2021/1070.