Section 11 Relevant schemes: value for moneyI1

England, Wales and Scotland

(1)

The Secretary of State may make regulations (“value for money regulations”) for the purpose of evaluating, and promoting best practice with regard to, the provision of value for money by—

(a)

prescribed descriptions of relevant pension schemes (“regulated VFM schemes”), and

(b)

prescribed descriptions of arrangements under relevant pension schemes (“regulated VFM arrangements”).

(2)

Value for money regulations may in particular require responsible trustees or managers to—

(a)

make, and publish (in whole or part) reports of, assessments (“VFM assessments”) of the performance of—

(i)

regulated VFM schemes, or

(ii)

regulated VFM arrangements,

with regard to the provision of value for money in respect of prescribed periods (“VFM periods”);

(b)

notify the Pensions Regulator of any publication they make under paragraph (a);

(c)

publish or share with prescribed persons in respect of—

(i)

regulated VFM schemes or (as the case may be) regulated VFM arrangements, and

(ii)

VFM periods,

prescribed categories of information (“metric data”) for the purpose of enabling VFM assessments to be made (with respect to the scheme or arrangement in question and other regulated VFM schemes or regulated VFM arrangements).

(3)

A duty to publish information under subsection (2)(c) may be a duty to publish the information for a specified period.

(4)

Where value for money regulations require responsible trustees or managers to make a VFM assessment with respect to a scheme or arrangement, the regulations may require those trustees or managers to—

(a)

assign to the scheme or arrangement, and set out in the VFM assessment, a rating for that period (a “VFM rating”), and

(b)

notify the Pensions Regulator of the rating.

(5)

Value for money regulations may specify—

(a)

the method for calculating anything that is to be calculated under the regulations;

(b)

the time at or by which anything required to be done under the regulations must be done.

(6)

In complying with value for money regulations a person must have regard to any guidance issued from time to time by the Secretary of State.

(7)

The Secretary of State must consult with such persons as the Secretary of State considers appropriate before—

(a)

making value for money regulations;

(b)

issuing guidance under subsection (6).

(8)

In this Chapter “responsible trustees or managers” means any of the following—

(a)

trustees or managers of a regulated VFM scheme;

(b)

trustees or managers of a relevant pension scheme any arrangements under which are regulated VFM arrangements.

(9)

Nothing in this Chapter prejudices the breadth of subsections (1) and (2).

(10)

Subject to subsection (11), value for money regulations are subject to the affirmative procedure.

(11)

Any exercise, after the first, of the power to prescribe categories of information by virtue of subsection (2)(c) is subject to the negative procedure.

(12)

Subject to subsection (13), in this Chapter “relevant pension scheme” means an occupational pension scheme that provides money purchase benefits.

(13)

Value for money regulations may provide that where an occupational pension scheme provides money purchase benefits in conjunction with other benefits, references in this Chapter (other than this subsection) to the occupational pension scheme are to an occupational pension scheme only to the extent that it provides money purchase benefits.

Annotations

Commencement

I1: S. 11 in force at Royal Assent for specified purposes, see s. 133(1)