# The Occupational Pension Schemes (Administration and Disclosure) (Amendment) Regulations 2018, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations impose obligations on trustees or managers of certain occupational pension schemes in relation to the disclosure of information about transaction costs and charges imposed on members by those schemes. These Regulations implement the duty on the Secretary of State imposed by section 113 of the Pension Schemes Act 1993 (c. 48), as amended by section 44 of the Pensions Act 2014 (c.19), to make regulations requiring the giving and publication of information about administration charges and transaction costs. In addition, they impose obligations concerning the disclosure of information about the pooled funds in which assets are invested by the scheme on behalf of members.
Regulation 1 of these Regulations deals with the coming into force of these Regulations. In particular, it provides for these Regulations to come into force from a later date in certain cases where the scheme year ends before 6th April 2018.
Regulation 2 amends regulation 23 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (S.I.1996/1715) (“the Scheme Administration Regulations 1996”) which relates to the annual statement regarding governance. The effect of the amendments is to require the trustees or managers of a relevant pension scheme to provide information, in so far as the information relates to the provision of money purchase benefits, about the level of costs and transaction charges applicable to each default arrangement and each fund which members are able to select and in which assets relating to members are invested during the scheme year. A relevant pension scheme is defined in regulation 2 (interpretation) of the Scheme Administration Regulations 1996 and (with certain exceptions) means an occupational pension scheme which provides money purchase benefits. The trustees or managers of the scheme are also required to provide an illustrative example of the compounding effect of such charges and transaction costs. In complying with these requirements, the trustees or managers must have regard to guidance published from time to time by the Secretary of State.
Regulation 3 amends the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (S.I.2013/2734) (“the Disclosure Regulations 2013”). The principal effect of these amendments is to require the trustees or managers of a relevant pension scheme to publish the information which must be included in the annual statement relating to the default arrangement and charges and transaction costs free of charge on a publicly available website (regulation 3(6)). This includes information about the extent to which the trustees or managers consider the charges and transaction costs represent good value for money. The information must be published in accordance with guidance published from time to time by the Secretary of State. It must, however, be given in hard copy form if the trustees or managers are satisfied that it would be unreasonable to require the person to obtain it via the website chosen by the trustees or managers of the scheme.
Regulation 3(3) of these Regulations introduces a new regulation 12A into the Disclosure Regulations 2013 and regulation 3(7) amends Schedule 3 (information to be given on request) to those Regulations to add to the information that trustees or managers of a relevant pension scheme are required to provide on request. In the case of a relevant scheme, it requires the international securities identification numbers (“the ISINs”) to be provided to members and recognised trade unions in relation to certain securities in which funds are invested by the scheme on behalf of the member to provide money purchase benefits.
Regulation 3(8) of these Regulations adds to the information that trustees or managers of a relevant scheme are required to include in an annual statement of money purchase benefits (see regulation 17 of, and Part 1 of Schedule 6 to, the Disclosure Regulations 2013). It requires the trustees or managers to give the member certain information about where the additional information required to be disclosed as a result of these Regulations can be obtained.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. The Department for Work and Pensions has nonetheless undertaken an assessment of the impact of this instrument, a copy of which is available from the Better Regulation Unit of Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA and is published with the Explanatory Memorandum alongside this instrument at www.legislation.gov.uk.

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Source: https://www.legislation.gov.uk/uksi/2018/233/note (the official version)
Page: https://openlegislation.uk/occupational-pension-schemes-administration-and-disclosure-amendment-regulations-2018/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.