# The Occupational Pension Schemes (Trust and Retirement Benefits Exemption) Regulations 2005 S.I. 2005/2360 · made 25 August 2005 · revised to 31 December 2020 These Regulations prescribe the description of schemes which are exempt from the requirement in section 252(2) of the Pensions Act 2004 (c. 35) (“the Act”) that trustees or managers of an occupational pension scheme with its main administration in the United Kingdom must not accept funding payments unless the scheme is established under irrevocable trust. These Regulations also prescribe the description of a scheme which is exempt from the requirement in section 255(1) of the Act, that an occupational pension scheme with its main administration in the United Kingdom must be limited to retirement-benefit activities. PDFs: Printed copy https://openlegislation.uk/occupational-pension-schemes-trust-and-retirement-benefits-exemption-regulations-2005/pdf/uksi_20052360_300606_en.pdf; Printed copy https://openlegislation.uk/occupational-pension-schemes-trust-and-retirement-benefits-exemption-regulations-2005/pdf/uksi_20052360_en.pdf; Explanatory Memorandum https://openlegislation.uk/occupational-pension-schemes-trust-and-retirement-benefits-exemption-regulations-2005/pdf/uksiem_20052360_en.pdf ## Introductory text PENSIONS Made 25th August 2005 Laid before Parliament 1st September 2005 Coming into force 22nd September 2005 The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 252(4), 255(2), 315(2) and (5) and 318(1) of the Pensions Act 2004 , and of all other powers enabling him in that behalf, by this instrument which contains regulations made before the end of the period of six months beginning with the coming into force of the provisions of that Act by virtue of which they are made , makes the following Regulations: ## 1 Citation, commencement and interpretation (1) These Regulations may be cited as the Occupational Pension Schemes (Trust and Retirement Benefits Exemption) Regulations 2005 and shall come into force on 22nd September 2005. (2) In these Regulations— “the 2004 Act” means the Pensions Act 2004; “approved scheme” means an occupational pension scheme— (a)which is approved under section 590 (conditions for approval of retirement benefit schemes) or 591 (discretionary approval) of the Income and Corporation Taxes Act 1988 ; or (b)in respect of which an application for such approval has been made but has not been determined before 6th April 2006; “public service pension scheme” has the meaning given by section 1(1) of the Pension Schemes Act 1993 (categories of pension schemes); “registered scheme” means a scheme which is registered in accordance with section 153 of the Finance Act 2004 (registration of pension schemes); “relevant benefits”, before 6th April 2006, has the meaning given by section 612(1) of the Income and Corporation Taxes Act 1988 and, from that date onwards, has the meaning given by section 393B of the Income Tax (Earnings and Pensions) Act 2003 (relevant benefits); “relevant statutory scheme” has the meaning given by section 611A of the Income and Corporation Taxes Act 1988 (definition of relevant statutory scheme). ... ## 1A Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 Exemption from trust requirement An occupational pension scheme which is— (a) a public service pension scheme; (b) an occupational pension scheme with fewer than two members; or (c) an occupational pension scheme which— (i) has fewer than 100 members; (ii) provides relevant benefits; and (iii) is neither— (aa) an approved scheme; (bb) a relevant statutory scheme; nor (cc) a registered scheme; is a scheme of a prescribed description for the purposes of section 252(4) of the 2004 Act (UK-based scheme to be trust with effective rules). ## 3 Exemption from retirement-benefit activities limitation An occupational pension scheme which— (a) has fewer than 100 members; (b) provides relevant benefits; and (c) is neither— (i) an approved scheme; (ii) a relevant statutory scheme; nor (iii) a registered scheme; is a scheme of a prescribed description for the purposes of section 255(2) of the 2004 Act (activities of occupational pension schemes). ## Signature Signed by authority of the Secretary of State for Stephen C. Timms Minister of State, Department for Work and Pensions ## Explanatory note (This note is not part of the Regulations) These Regulations prescribe the description of schemes which are exempt from the requirement in section 252(2) of the Pensions Act 2004 (c. 35) (“the Act”) that trustees or managers of an occupational pension scheme with its main administration in the United Kingdom must not accept funding payments unless the scheme is established under irrevocable trust. These Regulations also prescribe the description of a scheme which is exempt from the requirement in section 255(1) of the Act, that an occupational pension scheme with its main administration in the United Kingdom must be limited to retirement-benefit activities. Regulation 2 provides for the description of those schemes which are exempt from the requirements of section 252(2) of the Act. Regulation 3 provides for the description of a scheme which is exempt from the requirements of section 255(1) of the Act. As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of the Act by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply. The Secretary of State has, however, carried out a consultation exercise in respect of regulation 2. Section 252(2) of the Act transposes Article 8 of Directive 2003/41/EC (“the Directive”) on the activities and supervision of institutions for occupational retirement provision. Article 8 requires legal separation of the assets of an occupational pension scheme and those of a sponsoring employer. Section 255(1) of the Act transposes Article 7 of the Directive. Article 7 requires that occupational pension schemes are limited to retirement-benefit activities. The transposition of Articles 7 and 8 of the Directive is detailed in the Transposition Table that accompanied the Act. A copy of that Table has been placed in the libraries of both Houses of Parliament. Copies may be obtained from the Department for Work and Pensions, Better Regulation Unit, 4th floor, Adelphi, 1-11 John Adam Street, London WC2N 6HT. A Regulatory Impact Assessment has not been prepared for this instrument as it has no impact on business, charities or voluntary bodies. --- Source: https://www.legislation.gov.uk/uksi/2005/2360 (the official version) Page: https://openlegislation.uk/occupational-pension-schemes-trust-and-retirement-benefits-exemption-regulations-2005 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.