{
  "url": "https://openlegislation.uk/occupational-pension-schemes-winding-up-etc-regulations-2005/regulation-6",
  "json_url": "https://openlegislation.uk/occupational-pension-schemes-winding-up-etc-regulations-2005/regulation-6.json",
  "legislation": "uksi/2005/706",
  "legislation_title": "The Occupational Pension Schemes (Winding up etc.) Regulations 2005",
  "legislation_url": "https://openlegislation.uk/occupational-pension-schemes-winding-up-etc-regulations-2005",
  "path": "regulation/6",
  "kind": "regulation",
  "number": "6",
  "heading": "Adjustments to discretionary awards",
  "text": "(1) For the purposes of section 73A of the 1995 Act (operation of scheme during winding up period) and this regulation, “discretionary award”, in relation to an occupational pension scheme, means an award of a pension or other benefit under the scheme where either—\n(a) entitlement to the award arises as a result of the exercise of a discretion conferred by the scheme rules that may be exercised in circumstances specified in those rules; or\n(b) the amount awarded depends on the exercise of such a discretion.\n(2) Where section 73A of the 1995 Act applies, the circumstances in which trustees or managers of the scheme are required to adjust any such entitlement as is referred to in section 73A(7)(a) are where—\n(a) the entitlement to a pension or other benefit is—\n(i) the entitlement of a member; or\n(ii) the entitlement to a pension or other benefit in respect of a member other than a member who dies during the winding up period; and\n(b) it appears to the trustees or managers that as a result of—\n(i) the discretionary award in question;\n(ii) that award and any other awards under the scheme rules to which section 73A(7)(a) applies; or\n(iii) all the awards under the scheme rules to which that section applies and any entitlements in respect of the member to which section 73A(7)(b) applies (“survivor entitlements”),\nthe total amount of the liability for pensions and other benefits in respect of the member is greater than it was immediately before the commencement of the winding up period.\n(3) In those circumstances, the trustees or managers are required to adjust the entitlement—\n(a) to the discretionary award;\n(b) to that award and the other awards mentioned in paragraph (2)(b)(ii); or\n(c) to the awards and entitlements mentioned in paragraph (2)(b)(iii),\nin such manner as they think fit so that the total amount of that liability does not exceed its amount immediately before the commencement of the winding up period.\n(4) If—\n(a) the commencement of the winding up of the scheme is backdated (whether in accordance with section 154 of the 2004 Act or otherwise); and\n(b) the requirement under paragraph (3) to adjust any entitlement arises as a result of that backdating,\nthe adjustment must be made with effect from the time the award takes effect.\n(5) Where a discretionary award takes effect during a period that is a winding up period or an assessment period in relation to a scheme, the trustees or managers of the scheme must give the person to whom the award is made notice in writing not later than one month after the date on which the award is made—\n(a) that the award may be adjusted by virtue of this regulation; or\n(b) where the award takes effect before the scheme has begun to be wound up, that it may be so adjusted if the scheme begins to be wound up and the commencement of the winding up is backdated.\n(6) Such a notice may be given in accordance with regulations 26 to 28 (giving information and documents) of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 and, if the person to whom it is given is not in employment to which the scheme relates, is to be treated as having been given if it is sent to him by post to his last address known to the trustees or managers.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in reg. 6(6) substituted (6.4.2014) by The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (S.I. 2013/2734), reg. 1(1), Sch. 9 para. 13(2)"
    },
    {
      "type": "M",
      "label": "M1",
      "text": "Section 73A is inserted by section 270 of the Pensions Act 2004."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2005/706/regulation/6",
    "retrieved_at": "2026-10-29T05:03:51.042635+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}