Child Support, Pensions and Social Security Bill

This Bill introduces a number of changes and improvements to the regulatory regime for occupational pension schemes, many of which follow on from the consultation papers issued during the course of the year.

The Bill provides as follows:

• all schemes, subject to existing exemptions, must have at least one third member-nominated trustees. Schemes will be able to appoint them either through a simplified statutory procedure or through their own procedures approved by the members but they will no longer be able to opt out of them altogether;
• Opra must be told where the employer of a scheme becomes insolvent and there is no independent trustee or no trustees at all. Opra will supervise the winding up of pension schemes which have been undertaking the process for more than 3 years. Trustees will have to provide Opra with details of their actions and an outline plan of what is still to be done, and make regular reports against the plan. Opra will be able to direct action where appropriate. The measures will be phased in over 5 years;
• the Pensions Ombudsman will be able to allow interested parties to be joined to a complaint and make representations and bind them with the decision; he will also be able to allow the costs of their representation, if appropriate, to be met from pension scheme resources;
• changes will be made to the contracting-out regime including: new rules concerning Anti-franking; commutation of Protected Rights in contracted-out money purchase schemes in cases of serious ill health and the disclosure of information by COEG to schemes together with some minor technical changes;
• greater public access will be given to Opra’s register of disqualified trustees;
• members of money purchase schemes will be given an annual illustration of the projected value of their pension fund at retirement age and the amount of pension it is likely to provide;
• earmarked schemes can obtain their end of year statement about contributions from the insurance company, as an alternative to appointing a scheme auditor; and
• changes will be made to the rules on transfers - these measures are intended to offer further options for the transfer of pension rights.

For further information contact Nigel Moore on Tel 0171 367 3000 or e-mail [email protected]