Explanatory note

These Regulations amend the Occupational Pension Schemes (Winding Up) Regulations 1996 (S.I. 1996/3126), the Pension Sharing (Pension Credit Benefit) Regulations 2000 (S.I. 2000/1054) and the Occupational Pension Schemes (Winding Up Notices and Reports etc.) Regulations 2002 (S.I. 2002/459).

Regulation 2 omits part of regulation 8(6)(b)(i) of the Occupational Pension Schemes (Winding Up) Regulations 1996. As a result trustees may discharge their liabilities to members by payment of a lump sum, even if members did not have a right to the lump sum under the scheme rules.

Regulation 3 adds a new sub-paragraph (c) to regulation 3(2) of the Pension Sharing (Pension Credit Benefit) Regulations 2000. This allows trustees or managers of occupational pension schemes which have pension credit members to discharge their liabilities to such members by payment of a winding up lump sum. This is subject to meeting the conditions for such lump sums in paragraph 10 of Schedule 29 to the Finance Act 2004 (c.12).

Regulation 4 adds a new paragraph (6) to regulation 9 of the Occupational Pension Schemes (Winding up Notices and Reports etc.) Regulations 2002. This paragraph applies to trustees or managers of occupational pension schemes which commence winding up after 1st October 2007. The requirement to submit their first winding up report to the Pensions Regulator applies from the date which is two years after the date winding up commenced. From that date the trustees or managers will have three months in which to submit their winding up report.

These Regulations have only a negligible impact on business, charities or voluntary bodies. Publication of a full impact assessment is not necessary for such legislation.