The Occupational and Personal Pension Schemes (Automatic Enrolment) (Miscellaneous Amendments) Regulations 2016

These Regulations may be cited as the Occupational and Personal Pension Schemes (Automatic Enrolment) (Miscellaneous Amendments) Regulations 2016 and come into force on 6th April 2016.

In these Regulations, “the Automatic Enrolment Regulations” means the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010^f1.

The Employers’ Duties (Implementation) Regulations 2010^f1 are amended as follows.

In regulation 3 (early automatic enrolment)^f2—

In regulation 4 (staging of the employers’ duties)^f3—

The Employers’ Duties (Registration and Compliance) Regulations 2010^f1 are amended as follows.

In paragraph (1) of regulation 2 (registration: general)^f2—

After paragraph (3) of regulation 2, insert—

“(4)

In this Part, “automatic re-enrolment date” means an automatic re-enrolment date occurring by virtue of section 6(1)(b) of the Act (timing of automatic re-enrolment).”.

For paragraph (1) of regulation 4 (registration: re-registration)^f3 substitute—

“(1)

Where paragraph (1)(c) of regulation 2 applies, an employer must provide the information specified in paragraph (3) of this regulation in relation to each of its PAYE schemes—

(a)

where it is the employer’s first automatic re-enrolment date, within the period of 5 months beginning with the third anniversary of the employer’s staging date; and

(b)

in any other case, within the period of 5 months beginning with the third anniversary of the employer’s previous automatic re-enrolment date,

and the time at which an employer provides that information is referred to in this regulation as the “point of re-registration”.”.

Omit paragraph (2) of regulation 4.

In paragraph (3) of regulation 4—

Part 1A of the Automatic Enrolment Regulations^f1 (exemptions and exceptions) is amended as follows.

In paragraph (1) of regulation 5E (winding-up lump sum), for sub-paragraph (c) substitute—

“(c)

during the period of 12 months beginning with the date on which the winding-up lump sum was paid—

(i)

the worker has ceased to be employed and been re-employed by that person; and

(ii)

after re-employment, either section 3(1) (automatic enrolment) or 5(1A) or (1B) (automatic re-enrolment) of the Act applies to the worker.”.

After regulation 5E, insert—

“Company directors

5EA.

(1)

This regulation applies to a jobholder who holds office as a director of the company by which that jobholder is employed.

(2)

In relation to the jobholder to whom this regulation applies, sections 3(2) (automatic enrolment) and 5(2) (automatic re-enrolment) of the Act are to be read as if for “must” there were substituted “may”.

Limited liability partnerships

5EB.

(1)

This regulation applies where a person (P) is a jobholder and—

(a)

P is a member of a limited liability partnership;

(b)

qualifying earnings are payable to P by that limited liability partnership; and

(c)

P is not treated for income tax purposes as being employed by that limited liability partnership under section 863A of the Income Tax (Trading and other Income) Act 2005 (limited liability partnerships: salaried members)^f2.

(2)

Where this regulation applies, in relation to the jobholder referred to in paragraph (1), sections 3(2) and 5(2) of the Act are to be read as if for “must” there were substituted “may”.”.

In sub-paragraph (a) of paragraph (1) of regulation 5F (effect of exercise of discretion) for “or 5E” substitute “, 5E, 5EA or 5EB”.

Regulation 32M (alternative quality requirements: UK defined benefits schemes)^f1 of the Automatic Enrolment Regulations is amended as follows.

In paragraph (3), after “(4)” insert “, (5A)”.

At the beginning of paragraph (4), insert “Subject to paragraph (5A),”.

After paragraph (5), insert—

“(5A)

Subject to paragraph (5C), where the conditions in paragraph (5B) are met, the employer of the jobholder may choose, notwithstanding paragraph (4), that the relevant members are the members of the scheme who were active members and in contracted-out employment on the effective date of the most recent written report from an actuary.

(5B)

The conditions to be met for the purposes of paragraph (5A) are—

(a)

the jobholder was in contracted-out employment on 5th April 2016; and

(b)

the rules of the scheme of which the jobholder is a member have not been amended, on or after the coming into force of these Regulations, in any way which would mean that the rules of the scheme would not satisfy the contracting-out requirements if those requirements were still in force.

(5C)

Paragraph (5A) applies until the earliest of—

(a)

the date the first written report determining whether there is, or was, a material difference in the cost of providing the benefits accruing for different groups of relevant members over the relevant period, taking into account the criteria mentioned in paragraph (4), is signed by an actuary after 5th April 2016;

(b)

5th April 2019.

(5D)

For the purposes of paragraph (5A), the effective date of the most recent written report is the date by reference to which the information in that report is stated.”.

In paragraph (6), for “paragraph (4)” substitute “paragraphs (4) and (5A)”.

In paragraph (9)—

In paragraph (12), after the definition of “basic pay” insert—

• ““contracted-out employment” has the meaning given in section 8(1) of the 1993 Act (meaning of “contracted-out employment”)^f2;

• “contracting-out requirements” means the requirements set out in section 9 of the 1993 Act (requirements for certification of schemes: general)^f3 as they had effect immediately before 6th April 2016;”.