Citation and Commencement

1. —(1) These Regulations may be cited as the Occupational and Personal Pension Schemes (Modification of Schemes - Miscellaneous Amendments) Regulations 2016.

(2) These Regulations come into force on 6th April 2016.

Amendment of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006

2. After regulation 7B (amendment of schemes for adjustment measure) of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006( 5 ) insert—

“ Modification of schemes: revaluation of guaranteed minimum pensions

7C. —(1) The trustees of a trust scheme may by resolution passed before 6th April 2017 modify the scheme for the purposes of —

(a) revaluing earnings factors for the purposes of section 14 (earner’s guaranteed minimum pension) of the 1993 Act in accordance with section 16(2) (revaluation of earnings factors for the purposes of section 14: early leavers etc. ) of that Act as substituted by paragraph 16 of Schedule 13 to the Pensions Act 2014; and

(b) where the scheme contains a rule or provision that would require or permit the increases referred to in section 16(3) of the 1993 Act to be applied to an earner whose service in contracted-out employment ceased on the second abolition date with effect from a relevant year before the last service tax year, disapplying that rule or provision to the extent that it does not require or permit such increases.

(2) Modifications made by resolution under paragraph (1)—

(a) must only have effect from 6th April 2016 or such later date as may be specified; and

(b) may have effect from a date before the resolution is passed.

(3) In this regulation—

“contracted-out employment” has the meaning given in section 8 (meaning of “contracted-out employment” etc.) of the 1993 Act ( 6 ) ;

“earnings factors” has the meaning given in section 181(1) (general interpretation) of the 1993 Act;

“last service tax year” has the meaning given in section 16(2) of the 1993 Act as substituted by paragraph 16 of Schedule 13 to the Pensions Act 2014;

“relevant year” has the meaning given in section 16(5) of the 1993 Act ( 7 ) ;

“the second abolition date” has the meaning given in section 181(1) of the 1993 Act ( 8 ) . ” .

Amendment of the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006

3. In regulation 10(1) of the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006(listed changes: exclusions) after sub-paragraph (aa)( 9 ) insert—

“ (ab) is made for either or both of the purposes referred to in regulation 7C(1) (modification of schemes: revaluation of guaranteed minimum pensions) ( 10 ) of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006, ” .

Amendment of the Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015

4. In regulation 20 (alteration of scheme rules) of the Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015( 11 )—

(a) in the opening words, omit “would not”; and

(b) for paragraphs (a) and (b) substitute—

“ (a) would not—

(i) affect any of the matters dealt with in Part III of the 1993 Act (schemes that were contracted-out etc. and effects on members’ state scheme rights), or any regulations made under that Part, that relate to guaranteed minimum pensions, in a manner that would or might adversely affect any entitlement or accrued rights of any member of the scheme acquired before the alteration takes effect;

(ii) affect any of the matters dealt with in sections 87 to 92 of the 1993 Act ( 12 ) (protection of increases in guaranteed minimum pensions) or sections 109 and 110 of that Act ( 13 ) (annual increases of guaranteed minimum pensions) or any matters dealt with in regulations made under any of those provisions; or

(b) is made for either or both of the purposes referred to in regulation 7C(1) (modification of schemes: revaluation of guaranteed minimum pensions) of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006. ” .