Regulation 7 Amendment of the Occupational Pension Schemes (Indexation) Regulations 1996

The Occupational Pension Schemes (Indexation) Regulations 1996^f1 are amended in accordance with this regulation.

After regulation 4 (indexation of certain transfers made on or after 6th April 2005)^f2, insert—

“Purpose for which trustees may modify the scheme

5.

(1)

This regulation prescribes a purpose for which the trustees of a trust scheme may by resolution modify the scheme under section 68 of the Act (power of trustees to modify schemes by resolution).

(2)

The purpose is to—

(a)

reduce the amount of the annual increase in the rate of any pension^f3 that accrues after the date of the resolution; or

(b)

change the method for determining that amount in order to make such a reduction.

(3)

No modification may be made for the purpose in paragraph (2) without the consent of—

(a)

where there is one employer in relation to the scheme, that employer; or

(b)

where there is more than one employer in relation to the scheme—

(i)

all those employers; or

(ii)

a person nominated by all those employers, or in accordance with the scheme rules, to act as their representative.”.