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The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010

Type Statutory-Instrument

Publication 2010-03-11

Last updated 2022-08-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Made: 11th March 2010

Coming into force: 1st October 2012

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 111A(15)(b), 181 and 182(2) and (3) of the Pension Schemes Act 1993 , sections 49(8), 124(1) and 174(2) and (3) of the Pensions Act 1995 and sections 2(3), 3(2), (5) and (6), 4(1) and (3), 5(2) and (4), (6), (7) and (8), 6(1)(b) and (2), 7(4), (5) and (6), 8(2)(b), (3), (4), (5) and 8(6), 9(3), 10, 15, 16(2) and (3)(c), 18(c), 22(4) to (7), 23(1)(b) and (3), 24(1)(a) and (b), 25, 27, 30(6)(c), 33(2), 37(3), 99 and 144(2) and (4) of the Pensions Act 2008 .

In accordance with section 185(1) of the Pension Schemes Act 1993 and section 120(1) of the Pensions Act 1995, the Secretary of State has consulted with such persons as the Secretary of State considers appropriate.

A draft of these Regulations was laid before Parliament in accordance with section 143(4) and (5)(a) and (b) of the Pensions Act 2008 and approved by a resolution of each House of Parliament.

PART 1 — Citation, commencement and interpretation

Citation, commencement ... and interpretation

1

(1) These Regulations may be cited as the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 and shall come into force on 1st July 2012, immediately after the time when the amendments made by the Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2012 come into force .

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In these Regulations—

“the Act” means the Pensions Act 2008;

“the 1993 Act” means the Pension Schemes Act 1993;

“the 1995 Act” means the Pensions Act 1995;

“applicable pay reference period” means—a period of one week; orin the case of a jobholder who is paid their regular wage or salary by reference to a period longer than a week, that period;

“automatic enrolment date” has the meaning given by section 3(7) (automatic enrolment) of the Act;

“automatic re-enrolment date” means the date determined in accordance with regulation 12;

“enrolment date” means the date determined in accordance with regulation 18(6);

“enrolment information” has the meaning given by regulation 2;

“jobholder information” has the meaning given by regulation 3;

“joining notice” means a notice given under section 9(2) (workers without qualifying earnings) of the Act;

“opt in” means the jobholder's right under section 7(3) of the Act (jobholder's right to opt in) by notice to require the employer to arrange for the jobholder to become an active member of an automatic enrolment scheme;

“opt in notice” means a notice given under section 7(3) (jobholder's right to opt in) of the Act;

“opt out” means the jobholder's right to give notice under section 8 (jobholder's right to opt out) of the Act;

“opt out notice” means a notice in the form set out in the Schedule 1 ;

“opt out period” means the period determined in accordance with regulation 9(2) or (3);

“staging date” means the date on which sections 2 to 8 of the Act first apply in relation to the employer.

Enrolment information

2

In these Regulations “enrolment information” means the information described in paragraphs 1-15, and 24 of Schedule 2.

Jobholder information

3

(1) In these Regulations “jobholder information” is the jobholder's—

(a) name;

(b) date of birth;

(d) gender;

(e) automatic enrolment date, automatic re-enrolment date or enrolment date, as the case may be, or for a jobholder to whom regulation 28 or 29 applies, the date mentioned in regulation 7(1) as modified by regulation 28 or 29, as the case may be;

(f) national insurance number;

(g) the gross earnings due to the jobholder in any applicable pay reference period;

(h) the value of any contributions payable to the scheme by the employer and the jobholder in any applicable pay reference period, where this information is available to the employer;

(i) postal work address;

(j) individual work e-mail address, where an individual work e-mail address is allocated to that jobholder; and

(k) personal e-mail address, where the employer holds this information.

(2) For the purposes of paragraph (1)(h), “the value” of contributions may be expressed as a fixed amount or a percentage of any qualifying earnings or pensionable pay due to the jobholder in any applicable pay reference period.

Pay reference periods for the purposes of sections 1(1)(c), 3(1)(c) and 5(1)(c) of the Act

4

(1) This regulation applies for the purposes of sections 1(1)(c), 3(1)(c) and 5(1)(c) of the Act (jobholders, automatic enrolment and automatic re-enrolment).

(2) The pay reference period in respect of a person is determined in accordance with paragraph (3) or paragraphs (4) and (5), whichever the employer may decide.

(3) For the purposes of this paragraph, the pay reference period is—

(a) in the case of a person who is paid their regular wage or salary by reference to a period of a week, the period of one week;

(b) in the case of a person who is paid their regular wage or salary by reference to a period longer than a week, that period.

(4) For the purposes of this paragraph, subject to paragraph (6)(b), a pay reference period is—

(a) a period equal in length to the usual interval between payments of the person’s regular wage or salary; or

(b) the period of a week,

whichever is the longer.

(5) For the purposes of paragraph (4), pay reference periods commence—

(a) where the person is paid monthly, on the first day of a tax month;

(b) where the person is paid weekly or the pay reference period is a week, on the first day of a tax week;

(i) 6th April; and

(ii) the first day of the tax week which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (6) applies; and

(d) where the person is paid at intervals of multiple months, on—

(i) 6th April; and

(ii) the first day of the tax month which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (6) applies.

(6) Where paragraphs (4) and (5) apply and a pay reference period includes the last day of a tax year—

(a) the next pay reference period commences on 6th April; and

(b) if the qualifying earnings which, but for this sub-paragraph, would fall in that pay reference period, are paid or payable on or after 6th April, the pay reference period ends on 5th April.

(7) In this regulation—

“pay interval period” means a period which is equal in length to the usual interval between payments and each whole multiple of that period;

“tax month” means the period beginning with the sixth day of the month and ending on the fifth day of the following month; and

“tax week” means one of the successive periods in a tax year beginning with the first day of that year and every seventh day after that (so that the last day of a tax year or, in the case of a tax year ending in a leap year, the last two days is treated as a separate week).

Pay reference periods for the purposes of section 20(1)(b) and (c) and section 26(4)(b) and (5)(b) of the Act

5

(1) The pay reference periods for the purposes of section 20(1)(b) and (c) (quality requirement: UK money purchase schemes) and section 26(4)(b) and (5)(b) (quality requirement: UK personal pension schemes) of the Act are as follows.

(2) A pay reference period may be either—

(a) subject to paragraph (10), a period of a year, ending on the day before an anniversary of the employer’s staging date;

(b) a period which is equal in length to the period by reference to which the jobholder is paid their regular wage or salary, commencing on the first day of that period; or

(c) subject to paragraph (4)(b), a period which is equal in length to the usual interval between payments of the jobholder’s regular wage or salary, commencing on the date determined in accordance with paragraph (3).

(3) Where paragraph (2)(c) applies, pay reference periods in respect of a person commence—

(a) where the person is paid monthly, on the first day of a tax month;

(b) where the person is paid weekly, on the first day of a tax week;

(i) 6th April; and

(ii) the first day of the tax week which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (4) applies; and

(d) where the person is paid at intervals of multiple months, on—

(i) 6th April; and

(ii) the first day of the tax month which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (4) applies.

(4) Where paragraph (2)(c) applies and a pay reference period includes the last day of a tax year—

(a) the next pay reference period commences on 6th April; and

(b) if the qualifying earnings which, but for this sub-paragraph, would fall in that pay reference period, are paid or payable on or after 6th April, the pay reference period ends on 5th April.

(5) Where paragraph (2)(a) applies, the first pay reference period in respect of a person commences—

(a) on the relevant day; or

(b) where there has been a period beginning after the relevant day, during which the requirements of section 1(1)(a) or (c) of the Act were not met but the person remained an active member of a qualifying scheme, on the day following the last day of that period.

(6) Where paragraph (2)(b) applies, the first pay reference period in respect of a person commences on the first day determined in accordance with that paragraph which falls on or after the relevant day.

(7) Where paragraph (2)(c) applies, the first pay reference period in respect of a person commences on the first day determined in accordance with paragraph (3) which falls on or after the relevant day.

(8) Subject to paragraph (2)(c), a pay reference period in relation to any person ends on the day before the day on which the next pay reference period begins.

(9) Where a person ceases to be a jobholder of the employer or ceases to be an active member of a qualifying scheme the last pay reference period—

(a) ends on the day on which the person’s status so changes, where paragraph (2)(a) applies; or

(b) is the pay reference period which includes the day on which the person’s status so changes, where paragraph (2)(b) or (c) applies.

(10) A pay reference period under paragraph (2)(a) may be less than a year if it either commences or ends within the period of a year ending on the day before an anniversary of the employer’s staging date.

(11) In this regulation—

“relevant day” means the first day on or after the staging date on which the person is both a jobholder and an active member of a qualifying scheme; and

“pay interval period”, “tax week” and “tax month” have the same meaning as in regulation 4.

PART 2 — Automatic enrolment, opt out and refunds

Arrangements to achieve active membership

6

(1) The arrangements the employer must make in accordance with section 3(2) (automatic enrolment) of the Act are to enter into arrangements with—

(a) the trustees or managers of an automatic enrolment scheme which is an occupational pension scheme, so that before the end of a period of six weeks beginning with the automatic enrolment date the jobholder to whom section 3 of the Act applies becomes an active member of that scheme with effect from the automatic enrolment date; or

(b) the provider of an automatic enrolment scheme which is a personal pension scheme, so that before the end of a period of six weeks beginning with the automatic enrolment date the jobholder to whom section 3 of the Act applies is given information about the terms and conditions of the agreement to be deemed to exist under paragraph (2).

(2) Where the employer enters into arrangements with a personal pension scheme provider under paragraph (1)(b), the jobholder is deemed to have entered into an agreement to be an active member of that scheme with effect from the automatic enrolment date, on the later of—

(a) the date on which the personal pension scheme provider gives the information required by paragraph (1)(b); or

(b) the date on which the employer gives the jobholder the enrolment information in accordance with regulation 7(1)(a).

(3) The terms and conditions of an agreement deemed to exist under paragraph (2) must, as a minimum—

(a) explain the purpose of the personal pension scheme;

(b) specify the services to be provided by the personal pension scheme provider;

(c) specify the value of any contributions payable by the jobholder, where this information is available to the personal pension scheme provider;

(d) specify the charges which may be payable to the personal pension scheme provider; and

(e) in the absence of a choice made by the jobholder, explain the investment strategy adopted by the personal pension scheme provider in relation to any contributions payable to the scheme by or in respect of the jobholder.

(4) In paragraph (1)(b) the reference to “terms and conditions” is a reference to the terms and conditions mentioned in paragraph (3).

7

(1) Subject to paragraph (2), for the purposes of the arrangements under section 3(2) of the Act, at any time before the end of a period of six weeks beginning with the automatic enrolment date, the employer must give—

(a) the jobholder the enrolment information in writing; and

(b) the trustees or managers of the occupational pension scheme or the personal pension scheme provider the jobholder information in writing.

(2) The requirement in paragraph (1)(b) does not apply in relation to the information specified in regulation 3(1)(g), (h), (i), (j) or (k), where the trustees or managers of the occupational pension scheme notify, or the personal pension scheme provider notifies, the employer that they do not require that piece of information for the purposes of arrangements under section 3(2) of the Act.

(3) Where the information referred to in regulation 3(1)(f) is not available to the employer on the automatic enrolment date, the employer must give the trustees or managers of the occupational pension scheme or the personal pension scheme provider that information within six weeks from the date on which the employer receives it.

8

An employer must, on or after the automatic enrolment date, deduct any contributions payable by the jobholder to the scheme, from ... qualifying earnings or pensionable pay due to the jobholder ....

Opting Out

9

(1) A jobholder who has become an active member of an occupational pension scheme or a personal pension scheme in accordance with arrangements under section 3(2) of the Act, may opt out by giving their employer a valid opt out notice obtained and given in accordance with this regulation.

(2) Where the jobholder has become an active member of an occupational pension scheme, the jobholder must give their employer a valid opt out notice within a period of one month beginning with the later of—

(a) the date on which the jobholder became an active member of the scheme in accordance with regulation 6(1)(a), or

(b) the date on which the jobholder was given the enrolment information.

(3) Where the jobholder has become an active member of a personal pension scheme, the jobholder must give their employer a valid opt out notice within a period of one month beginning with the date on which the agreement was deemed to exist under regulation 6(2).

(4) Subject to paragraph (5), the jobholder may only obtain an opt out notice from the scheme in which the jobholder is an active member.

(5) Where the jobholder is an active member of a scheme which is an occupational pension scheme and that scheme has, in its trust instrument, expressly delegated its administrative functions to the employer, the jobholder may obtain an opt out notice from that employer.

(6) An opt out notice is valid if—

(a) it includes the wording set out in Schedule 1;

(aa) it includes statements from the jobholder to the effect that the jobholder wishes to opt out of pension saving and understands that, in so doing, the jobholder will lose the right to pension contributions from the employer and may have a lower income upon retirement;

(b) it includes the jobholder's name;

(d) it is signed by the jobholder or, where the notice is in an electronic format, it must include a statement confirming that the jobholder personally submitted the notice; and

(e) it is dated.

(7) Where the employer is given an opt out notice which is not valid—

(a) the employer must inform the jobholder of the reason for the invalidity, and

(b) paragraphs (2) and (3) are modified so that for the reference to “one month” there is substituted “ ;6 weeks ”.

(8) Where an employer has accepted as valid an opt out notice prior to the coming into force of the 2013 Regulations, the notice is deemed to be valid on the coming into force of the 2013 Regulations.

(9) In this regulation “the 2013 Regulations” means the Automatic Enrolment (Miscellaneous Amendments) Regulations 2013.

10

Where an employer is given a valid opt out notice, the employer must inform the scheme in which the jobholder is an active member that a valid opt out notice has been received.

Refunds

11

(1) Where an employer receives a valid opt out notice, that employer must refund to the jobholder before the refund date any contributions paid to the scheme by the jobholder and any contributions made on behalf of the jobholder, except where any of those refunds are required to be paid as tax.

(2) Where a scheme receives the information required by regulation 10, the trustees or managers of the occupational pension scheme or the provider of the personal pension scheme, as the case may be, must refund to the employer before the refund date any contributions made to the scheme by the jobholder and any contributions made to the scheme by the employer on behalf or in respect of the jobholder.

(3) For the purposes of this regulation “the refund date” is—

(a) the date one month from the date on which the employer is given a valid opt out notice; or

(b) where the opt out notice is given to the employer after the employer's payroll arrangements have closed, the last day of the second applicable pay reference period following the date on which a valid opt out notice is given.

PART 3 — Automatic re-enrolment

Automatic re-enrolment dates

12

(1) Subject to paragraphs ... (3) and (4), the automatic re-enrolment date for the purposes of section 5 (automatic re-enrolment) of the Act—

(a) is the date chosen at the discretion of the employer, within a period beginning 3 months before, and ending at the end of the period of 3 months beginning with, the third anniversary of the staging date; and

(b) thereafter, is the date chosen at the discretion of the employer, within a period beginning 3 months before, and ending at the end of the period of 3 months beginning with, the third anniversary of the date chosen for the previous automatic re-enrolment date.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In a case under section 6(4) of the Act, the automatic re-enrolment date for the purposes of section 5 is the day after the day on which the jobholder ceases to be an active member of the scheme

(4) In a case under section 6(5) of the Act, the automatic re-enrolment date for the purposes of section 5 is the first day on which all the requirements of section 1(1) (jobholders) of the Act are met (so that the person is a jobholder from that date).

Arrangements to achieve active membership

13

(1) Except where the jobholder becomes an active member of an automatic enrolment scheme under paragraph (2), the arrangements in regulations 6, 7 and 8 are the arrangements prescribed to achieve active membership for the purposes of section 5 of the Act, but with the following modifications—

(a) in regulation 6 for all references to “section 3” substitute “ ;section 5 ”;

(b) in regulations 6, 7 and 8 for all references to “section 3(2)” substitute “ ;section 5(2) ”; and

(c) in regulations 6, 7 and 8 for all references to “the automatic enrolment date” substitute “ ;the automatic re-enrolment date ”.

(2) Subject to paragraph (3), where before the jobholder's automatic re-enrolment date, the jobholder is a member of a personal pension scheme, or in a case under section 6(5) of the Act a member of a personal pension scheme or an occupational pension scheme, the employer may meet the obligation in section 5(2) of the Act by—

(a) before the end of a period of six weeks beginning with the automatic re-enrolment date, entering into arrangements with the provider or the trustees or managers of the scheme of which the jobholder is a member so that—

(i) the scheme is an automatic enrolment scheme; and

(ii) the jobholder is an active member of that scheme; and

(b) satisfying the requirements of regulation 7, as if for all references in regulation 7 to “section 3(2)” there was substituted “ ;section 5(2) ” and for all references to “the automatic enrolment date” there was substituted “ ;the automatic re-enrolment date ”.

(3) Paragraph (2)(b) does not apply in a case under section 6(5) of the Act.

Jobholders excluded from automatic re-enrolment

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Opting out

15

The arrangements in regulations 9 and 10 are the arrangements for the purposes of section 8 (jobholder's right to opt out) of the Act in relation to a jobholder who has become an active member of an automatic enrolment scheme under section 5 of the Act, but with the modification that in paragraph (1) of regulation 9 for “section 3(2)” substitute “ ;section 5(2) ”.

Refunds

16

The arrangements in regulation 11 are the arrangements for the purposes of section 8 of the Act in relation to a jobholder who has become an active member of an automatic enrolment scheme under section 5 of the Act.

PART 4 — Jobholders opting in to pension saving

Information on the right to opt in to pension saving

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Opt in notices and arrangements to achieve active membership

18

(1) Where the jobholder wishes to opt in, the jobholder must give an opt in notice to the employer.

(2) An opt in notice must be—

(a) in writing; and

(b) signed by the jobholder or, where the notice is in an electronic format, it must include a statement confirming that the jobholder personally submitted the notice.

(3) Where the employer is given an opt in notice, except where a jobholder becomes an active member of an automatic enrolment scheme under paragraph (4), the arrangements in regulations 6, 7 and 8 are the arrangements in relation to the jobholder who gave that employer an opt in notice, but with the following modifications—

(a) in regulation 6 for all references to “section 3” substitute “ ;section 7 ”;

(b) in regulations 6, 7 and 8 for all references to “section 3(2)” substitute “ ;section 7(3) ”; and

(4) Where the jobholder is a member of a personal pension scheme before the enrolment date, the employer may meet the obligation in section 7(3) of the Act by—

(a) before the end of a period of six weeks beginning with the enrolment date, entering into arrangements with the provider of the scheme of which the jobholder is a member so that—

(i) the scheme becomes an automatic enrolment scheme; and

(ii) the jobholder becomes an active member of that scheme; and

(b) satisfying the requirements contained in regulation 7, as if for all references in regulation 7 to “section 3(2)” there was substituted “ ;section 7(3) ” and for all references to “the automatic enrolment date” there was substituted “ ;the enrolment date ”.

(5) Where a jobholder gives an opt in notice to the employer, but in writing withdraws that notice before the enrolment date, the employer is not required to make the arrangements prescribed by this regulation.

(6) For the purposes of this regulation, the enrolment date is—

(a) the first day of the jobholder's applicable pay reference period which begins after the date on which the employer is given the opt in notice; or

(b) where the opt in notice is given after the employer's payroll arrangements have closed for the purposes of the jobholder's applicable pay reference period referred to in sub-paragraph (a), the first day of the jobholder's second applicable pay reference period which begins after the date on which the employer is given the opt in notice.

Opting out

19

The arrangements in regulations 9 and 10 are the arrangements for the purposes of section 8 (jobholder's right to opt out) of the Act in relation to a jobholder who has given an employer an opt in notice, but with the modification that in paragraph (1) of regulation 9 for “section 3(2)” substitute “ ;section 7(3) ”.

Refunds

20

The arrangements in regulation 11 are the arrangements for the purposes of section 8 of the Act in relation to a jobholder who has given an employer an opt in notice.

PART 5 — Workers joining pension saving

Information

21

At any time before the end of the period of six weeks beginning with the date on which section 7 (jobholder’s right to opt in) or section 9 (workers without qualifying earnings) of the Act, as the case may be, first applies to a worker, the employer must give—

(a) the jobholder to whom section 7 applies, in writing, the information described in—

(i) paragraphs 16 and 24 of Schedule 2; or

(ii) paragraphs 18 and 24 of Schedule 2; and

(b) the worker to whom section 9 applies, in writing, the information described in—

(i) paragraphs 17 and 24 of Schedule 2; or

(ii) paragraphs 18 and 24 of Schedule 2.

Form and content of joining notices

22

(1) A joining notice must be in writing and, save where paragraph (2) applies, be signed by the worker.

(2) Where the joining notice is in an electronic format, it must include a statement confirming that the worker personally submitted the notice.

Arrangements to achieve active membership

23

(1) The arrangements an employer who is given a joining notice by a worker must make for the purpose of section 9(2) of the Act are to—

(a) enter into arrangements with—

(i) the trustees or managers of an occupational pension scheme which satisfies the requirements of section 9(7) of the Act; or

(ii) the provider of a personal pension scheme which satisfies the requirements of section 9(7) of the Act,

so that the worker who is the subject of the joining notice becomes an active member of the scheme in accordance with the scheme rules or requirements applicable to that scheme; and

(b) provide the trustees or managers of the occupational pension scheme or the personal pension scheme provider with the information specified in regulation 3(1)(a) to (d) and (f) to (k).

(2) The requirement in paragraph (1)(b) does not apply in relation to the information specified in regulation 3(1)(g), (h), (i), (j) or (k), where the trustees or managers of the occupational pension scheme notify, or the personal pension scheme provider notifies, the employer that they do not require that piece of information to achieve active membership of that scheme.

(3) Where the information referred to in regulation 3(1)(f) is not available to the employer on the date the notice is received by the employer, the employer must give the trustees or managers of the occupational pension scheme or the personal pension scheme provider that information within six weeks from the date on which the employer receives it.

(4) For the purposes of this regulation, any reference to ‘the jobholder’ in regulation 3(1) shall be read as a reference to ‘worker’.

PART 6 — Postponement of automatic enrolment or disapplication of automatic enrolment

Information

24

(1) A notice under section 4(1), (2) or (3) of the Act (postponement or disapplication of automatic enrolment) given by an employer to all workers must be in writing and, subject to paragraphs (1A) and (1B), include the information described in paragraphs 18, 20, 21 and 24 of Schedule 2;

(1A) In the case of workers who are jobholders and who are not active members of a qualifying scheme, the notice referred to in paragraph (1) must include the information described in either paragraph 16 or 18 and in paragraphs 20, 21 and 24; and

(1B) In the case of workers who are not jobholders and are not active members of a qualifying scheme, the notice referred to in paragraph (1) must include the information described in either paragraph 17 or 18 and in paragraphs 20, 21 and 24

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For the purposes of section 4(5) of the Act, the prescribed period is the period of six weeks beginning with the day after the starting day.

Postponement of the automatic enrolment date

25

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cases in which automatic enrolment may be postponed

26

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 7 — Automatic enrolment following the transitional period for defined benefit and hybrid schemes

Information

27

Where the employer gives the jobholder the notice mentioned in section 30(3) of the Act (transitional period for defined benefits and hybrid schemes), that notice must—

(a) be in writing;

(b) be given at any time before the end of the period of six weeks beginning with the employer’s first enrolment date; and

Arrangements to achieve active membership

28

The arrangements prescribed in regulations 6, 7 and 8 are the arrangements prescribed for the purposes of section 3(2) (automatic enrolment) of the Act as modified by section 30(3) (transitional period for defined benefits and hybrid schemes) of the Act, but with the following modifications—

(a) for regulation 6 substitute—

(6) (1) An employer must meet the obligation in section 3(2) (automatic enrolment) of the Act by entering into arrangements with the trustees or managers of an automatic enrolment scheme which is a defined benefits scheme or a hybrid scheme. (2) An employer must ensure that a jobholder to whom section 3 of the Act applies becomes an active member of that scheme with effect from the day after the end of the transitional period prescribed for the purposes of section 30 (transitional period for defined benefits and hybrid schemes) of the Act. (3) An employer must carry out the duties in paragraphs (1) and (2) before the end of a period of six weeks beginning with the day after the end of the transitional period prescribed for the purposes of section 30 of the Act.

; and

(b) in regulations 7 and 8 for all references to “the automatic enrolment date” substitute “ ;the day after the end of the transitional period prescribed for the purposes of section 30 of the Act ”.

29

The arrangements prescribed in regulations 6, 7 and 8 are prescribed for the purposes of section 3(2) (automatic enrolment) of the Act as modified by section 30(5) (transitional period for defined benefits and hybrid schemes) of the Act, but with the following modifications—

(a) for regulation 6(1) substitute—

((1)) An employer must meet the obligation in section 3(2) (automatic enrolment) of the Act by entering into arrangements with— (a) the trustees or managers of an automatic enrolment scheme which is a defined benefits scheme or a hybrid scheme, so that, before the end of a period of six weeks beginning with the closure date, a jobholder to whom section 3 of the Act applies becomes an active member of that scheme with effect from the closure date;... (b) the trustees or managers of an automatic enrolment scheme which is a money purchase scheme, so that before the end of a period of six weeks beginning with the closure date a jobholder to whom section 3 of the Act applies becomes an active member of that scheme with effect from the automatic enrolment date; or (c) the provider of an automatic enrolment scheme which is a personal pension scheme so that before the end of the period of six weeks beginning with the closure date the jobholder to whom section 3 of the Act applies receives information about the terms and conditions mentioned in paragraph (4).

(aa) in regulation 6(2) and (4) for “paragraph (1)(b)” each time it occurs substitute “paragraph (1)(c)”

(b) in regulations 7 and 8 for all references to “the automatic enrolment date” substitute “ ;the closure date ”; and

(4) At the request of the jobholder the employer must, for the period prescribed in paragraph (5), deduct any contributions which would have been payable by the jobholder to the scheme in respect of the period beginning on the automatic enrolment date and ending on the closure date, from any qualifying earnings or pensionable pay due to the jobholder in any applicable pay reference period. (5) For the purposes of paragraph (4), the prescribed period is a period of— (a) 5 years beginning with the date on which section 3 (automatic enrolment) of the Act comes into force in accordance with provision made by order by the Secretary of State under section 149(1) of the Act; or (b) such shorter period as is agreed between the jobholder and the employer. (6) For the purposes of this regulation and regulation 6 “closure date” has the meaning given by section 30(4) (transitional period for defined benefits and hybrid schemes) of the Act.

Opting out

30

The arrangements in regulations 9 and 10 are the arrangements for the purposes of section 8 (jobholder's right to opt out) of the Act as modified by section 30(3).

31

The arrangements in regulations 9 and 10 are the arrangements for the purposes of section 8 of the Act as modified by section 30(5), but with the modification that in paragraph (2)(a) of regulation 9 for “regulation 6(1)(a)” substitute “ ;regulation 6(1)(a) or (b) ”.

Refunds

32

The arrangements in regulation 11 are the arrangements for the purposes of section 8 of the Act as modified by section 30(3) or (5) of the Act.

PART 8 — Existing members of qualifying schemes

Information

33

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Continuity of scheme membership

34

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 9 — Automatic enrolment schemes

Further conditions applicable to automatic enrolment schemes

35

(1) The conditions prescribed for the purposes of section 17(1)(c) (automatic enrolment schemes) of the Act are—

(a) that the scheme must be—

(i) an occupational pension scheme within section 18(a)... (occupational pension schemes) of the Act; or

(ii) a personal pension scheme where the operation of the scheme—

(aa) is regulated by a competent authority; and

(bb) is carried on by a person who is in relation to that activity authorised by a competent authority; and

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) except as provided in paragraph (1A), that the provisions governing any part of an occupational pension scheme or of a personal pension scheme that provides money purchase benefits must not include a provision that allows for—

(i) any amount to be deducted from any payments made to the scheme by or on behalf or in respect of the jobholder;

(ii) any amount to be deducted from any income or capital gain arising from the investment of such payments; or

(iii) the value of the jobholder’s rights under the scheme to be reduced by any amount,

where the amount is to be paid to a third party under an agreement between the employer and the third party.

(1A) Paragraph (1)(c) does not apply where an employer has entered into a legally enforceable agreement with a third party before 10th May 2013 under which an amount is to be paid to the third party in one or more of the ways set out in paragraph (1)(c)(i) to (iii).

(2) For the purposes of this regulation—

“competent authority” means the Financial Conduct Authority or the Pensions Regulator;

“regulatory requirements” includes provisions of legislation that concern tax;

“relevant benefits” means—any money purchase benefits applicable to the jobholder; andin relation to a defined benefits scheme, or the defined benefits element of a hybrid scheme, that provides for a sum of money to be made available for the provision of benefits to a member, that sum

“third party” means any person other than— the jobholder;where the scheme is an occupational pension scheme, the trustee or manager of the scheme; orwhere the scheme is a personal pension scheme, the provider of the scheme.

PART 10 — Exclusion as a qualifying scheme

Certain schemes providing average salary benefits excluded from being qualifying schemes

36

(1) A pension scheme which provides for average salary benefits to be provided to or in respect of a jobholder is not a qualifying scheme if, subject to paragraphs (2A) and (3), the scheme has any of the features specified in paragraph (2).

(2) The specified features are that, in relation to any jobholder who has accrued rights to benefits under the scheme (“accrued benefits”)—

(a) there is no provision for revaluation of such benefits;

(b) such benefits are to be revalued at less than the minimum rate; or

at any time when the jobholder's pensionable service is continuing.

(2A) Paragraph (1) does not apply to a scheme with the feature specified in paragraph (2)(b) if—

(a) the funding of the scheme is based on the assumption that accrued benefits would be revalued at or above the minimum rate; and

(b) such funding is provided for in the scheme’s statement of funding principles under section 223 of the Pensions Act 2004 (statement of funding principles) or, if the scheme is not required to have such a statement, in an equivalent statement of the scheme’s funding plan.

(3) Paragraph (1) does not apply to a scheme with the feature specified in paragraph (2)(c) if—

(a) the funding of the scheme takes account of the exercise of the discretionary power and does so on the assumption that accrued benefits would be revalued at or above the minimum rate; and

(b) such funding is provided for in the scheme's statement of funding principles under section 223 (statement of funding principles) of the Pensions Act 2004 or, if the scheme is not required to have such a statement, in an equivalent statement of the scheme's funding plan.

(4) For the purposes of this regulation, the minimum rate on a revaluation of accrued benefits is either—

(a) where a scheme is a scheme established under section 1 of the 2013 Act (schemes for persons in public service) or is a new public body pension scheme as defined in section 30(5) of the 2013 Act (new public body pension schemes), an annual increase or decrease by the relevant percentage for the year by reference to which the revaluation is made; or

(b) in any other case, an annual increase by whichever is the lesser or the least of—

(i) the percentage increase in the retail prices index for the year by reference to which the revaluation is made;

(ii) the percentage increase in the general level of prices for the year by reference to which the revaluation is made; and

(iii) 2.5%.

(5) In this regulation—

“the 2013 Act” means the Public Service Pensions Act 2013;

“general level of prices” means the general level of prices in Great Britain determined in such manner as the Secretary of State thinks fit;

“relevant percentage” means—where the scheme requires revaluation of accrued benefits by reference to a change in prices, the percentage change in prices specified in a Treasury order under section 9(2) of the 2013 Act (revaluation); orwhere the scheme requires revaluation of accrued benefits by reference to a change in earnings, the percentage change in earnings specified in a Treasury order under section 9(2) of the 2013 Act;

“retail prices index” means—the general index of retail prices (for all items) published by the Statistics Board; orwhere that index is not published for a month, any substituted index or figures published by the Board;

“Treasury order” has the meaning given in section 37 of the 2013 Act (general interpretation).

(6) The Secretary of State shall publish from time to time the manner in which the general level of prices is to be determined.

PART 11 — Test Scheme

Test scheme: requirements to revalue accrued benefits and increase pensions in payment

37

(1) Paragraph (2) applies for the purposes of section 23(1)(c) (test scheme) of the Act.

(2) The following must be satisfied in relation to a test scheme—

(a) the requirements of section 84 (basis of revaluation) of the 1993 Act; and

(b) the requirements of section 51 (annual increase in rate of pension) of the 1995 Act in relation to a scheme which provides for a member to be entitled to a pension commencing at the appropriate age and continuing for life.

(3) For the purposes of paragraph (2)(a)—

(a) a test scheme which falls within section 23(2)(a) of the Act and a test scheme which falls within regulation 39A(2) must satisfy the requirements of section 84 of the 1993 Act by reference to the final salary method; and

(b) a test scheme to which regulation 39A(3) applies must satisfy the requirements of section 84 of the 1993 Act by reference to the average salary method or the final salary method.

Staged increase in appropriate age

38

(1) For the purposes of making a relevant determination, the appropriate age prescribed for a member whose pensionable age is over 65 is the age at which the member attains pensionable age.

(2) In this regulation, “relevant determination” means a determination under section 22 (test scheme standard) of the Act as to whether a scheme satisfies the test scheme standard in relation to a jobholder.

Requirements for meeting the test scheme standard

39

(1) This regulation applies for the purposes of section 22(4) of the Act.

(2) No person other than—

(a) the scheme actuary, or

(b) the employer of the relevant members of the scheme,

may certify that a scheme satisfies the test scheme standard.

(3) An employer may certify a scheme under paragraph (2)(b) only in cases that do not require any calculation, comparison or assessment of a description usually carried out by actuaries.

(4) In determining whether a scheme satisfies the test scheme standard, a scheme actuary or employer—

(a) must have regard to the benefits to be provided under the scheme for persons who, at the date by reference to which the determination is made (which may precede the date on which it is made), are relevant members of the scheme; and

(b) must not have regard to—

(i) pension credit benefits;

(ii) death benefits;

(iii) discretionary benefits (apart from those arising from discretionary pre-retirement revaluation made in the case of schemes providing for average salary benefits);

(iv) survivors' benefits;

(v) money purchase benefits ...;

(vi) benefits in respect of any person who is not a jobholder for the purposes of the Act;

(vii) benefits in respect of any jobholder whose annual rate of benefit accrual under the scheme has been reduced below the rate specified in section 23(4)(a) of the Act, where the reduction is made as a result of a request made by the jobholder in question in accordance with scheme rules; or

(viii) benefits in respect of any jobholder who has given notice under section 8 (jobholder's right to opt out) of the Act.

(5) A scheme actuary or employer may not certify that a scheme satisfies the test scheme standard if the benefits to be provided for more than 10% of relevant members are not at least as valuable as the benefits which would be provided for them under a test scheme.

(6) In determining whether—

(a) any of paragraphs (3) to (5) apply in relation to a scheme; or

(b) a scheme otherwise satisfies the test scheme standard,

a scheme actuary or employer must follow any guidance issued by the Secretary of State under section 22(5) of the Act which is for the time being in force.

(7) “Scheme actuary” has the meaning given in section 22(7) of the Act except—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) where the scheme is a defined benefits or hybrid scheme within section 18(c) of the Act and there is an actuary appointed to the scheme who satisfies the requirements of regulations made under section 47(5) (professional advisers) of the 1995 Act ; or

(c) in any other circumstances where, by virtue of regulations made under section 47 of the 1995 Act , the scheme is not required to appoint a scheme actuary.

(8) In any case falling within paragraph (7)(b), “scheme actuary” means the actuary referred to in that paragraph who is appointed to the scheme.

(9) “Relevant members” has the meaning given in section 22(2) of the Act.

PART 12 — Hybrid schemes

Interpretation

40

In this Part—

“the paragraph (a) quality requirements” means the requirements for a money purchase scheme under section 20 of the Act (referred to in relation to hybrid schemes in paragraph (a) of section 24(1) (quality requirements: UK hybrid schemes) of the Act);

“the paragraph (b) quality requirements” means the requirements for a defined benefits scheme under sections 21 to 23A of the Act (referred to in relation to hybrid schemes in paragraph (b) of section 24(1) of the Act);

“relevant rule” means any rule made under section 24(2) to (4) of the Act .

Modification of test scheme standard: money purchase benefit lump sum accruals

41

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of test scheme standard: final salary lump sum accruals

42

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification allowing different quality requirements to be satisfied in aggregate

43

(1) Paragraphs (2) to (4) apply where a relevant rule—

(a) specifies a description of hybrid schemes; and

(b) provides that—

(i) the provisions of any scheme of that description which relate to defined benefits and the provisions of the scheme relating to money purchase benefits are to be treated as if they provided for benefits under separate schemes;

(ii) in respect of the money purchase benefits provisions, the paragraph (a) quality requirements are to apply; and

(iii) in respect of the defined benefits provisions, the paragraph (b) quality requirements are to apply; and

(iv) those quality requirements are to apply to the scheme subject to the modifications made by this regulation.

(2) Notwithstanding that not all of the paragraph (a) quality requirements or the paragraph (b) quality requirements are satisfied in relation to the scheme, those requirements are nevertheless to be treated as having been satisfied in relation to any jobholder in the circumstances set out in paragraph (3).

(3) The circumstances are that—

(a) all of the paragraph (a) quality requirements are met apart from either or both of the requirement in section 20(1)(b) of the Act (“requirement X”) and the requirement in section 20(1)(c) of the Act;

(b) all of the paragraph (b) quality requirements are met apart from the relevant benefit requirement (“requirement Y”); and

(c) having carried out the calculations set out in paragraph (4)(a) and (b), the aggregate of the resulting percentages is at least 100.

(4) Each of the following is to be calculated as a percentage—

(a) the extent to which requirement X is met as a proportion of the minimum rate of employer's contribution specified in section 20(1)(b) of the Act;

(b) the extent to which requirement Y is met as a proportion of—

(i) where the requirement in subsection (4) of section 23 of the Act applies, the annual rate of pension specified in that subsection; or

(ii) where a requirement in paragraph (4), (6) or (7) of regulation 39A applies, the sum of money to be made available for the provision of benefits as specified in the relevant paragraph.

(5) Where paragraphs (2) to (4) have effect in relation to a hybrid scheme of the relevant description, regulation 39 is to be read as if, for paragraph (5), there were substituted—

(5) A scheme actuary or employer may not certify that a scheme satisfies the test scheme standard if the aggregate percentage referred to in regulation 43(3)(c) is less than 100 in relation to more than 10% of relevant members.

(6) In this regulation, “the relevant benefit requirement” means—

(a) the requirements in subsection (4) of section 23 of the Act where that subsection applies; or

(b) one of the requirements specified in regulation 39A where that regulation applies.

PART 13 — Non-UK Pension Schemes

Description of an occupational pension scheme with its main administration outside the United Kingdom

44

A pension scheme that has its main administration outside the United Kingdom is an occupational pension scheme for the purposes of section 18(c) (occupational pension schemes) of the Act if it is an occupational pension scheme within the meaning of section 1(1) of the 1993 Act.

Quality requirements: non-UK occupational pension schemes

45

(1) A money purchase scheme within section 18(c) (occupational pension schemes) of the Act satisfies the quality requirement for the purposes of section 25 (quality requirement: non-UK occupational pension schemes) of the Act in relation to a jobholder—

(a) if it satisfies the requirements for a money purchase scheme under section 20(1) (quality requirement: UK money purchase schemes) of the Act; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) For the purposes of paragraph (1), section 20(1) of the Act is to be read as if for the words “that has its main administration in the United Kingdom” there were substituted “ ;within section 18(c)”.

(3) A defined benefits scheme within section 18(c) of the Act satisfies the quality requirement for the purposes of section 25 of the Act in relation to the jobholder—

(a) if it satisfies the requirements for a defined benefits scheme under sections 21 to 23A (quality requirement: UK defined benefits schemes) of the Act; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) For the purposes of paragraph (3), sections 21 and 23A of the Act are to be read as if for the words “that has its main administration in the United Kingdom” there were substituted “;within section 18(c)”.

(5) Section 24 (quality requirement: UK hybrid schemes) of the Act applies to any hybrid scheme within section 18(c) of the Act as it applies to a hybrid scheme that has its main administration in the United Kingdom.

(6) For the purposes of paragraph (5)—

(a) the reference in section 24(1)(a) to the requirements for a money purchase scheme under section 20 of the Act; and

(b) the reference in section 24(1)(b) to the requirements for a defined benefits scheme under sections 21 to 23A of the Act,

are to be read subject to the modifications made by paragraphs (2) and (4).

(7) Accordingly, a hybrid scheme within section 18(c) of the Act satisfies the quality requirement for the purposes of section 25 of the Act in relation to the jobholder if the scheme falls within a description of hybrid schemes specified in any rule made under section 24(2) to (4) of the Act and either—

(a) the scheme satisfies such of the requirements referred to in paragraph (6)(a) or (b) as the rule in question may specify as being appropriate to schemes of that description, subject to any prescribed modification of those requirements which is referred to in that rule; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46

A pension scheme to which section 26 (quality requirement: UK personal pension schemes) of the Act does not apply, satisfies the quality requirement for the purposes of section 27 (quality requirement: other personal pension schemes) of the Act in relation to a jobholder—

(a) if the conditions in subsections (3) to (7) of section 26 are satisfied; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prescribed requirements for non-UK qualifying schemes

47

(1) Where—

(a) the requirements set out in paragraphs (2) and (3) are satisfied, and

(b) the requirement set out in one of paragraphs (4), (5), (6) or (7) is satisfied,

section 16(1)(b) of the Act does not apply in relation to an occupational pension scheme or a personal pension scheme to which section 25 or 27 of the Act applies.

(2) The requirements to be satisfied are that—

(a) the scheme is an occupational pension scheme and there is, in the country or territory in which it has its main administration, a body—

(i) which regulates occupational pension schemes; and

(ii) which regulates that scheme; or

(b) the scheme is a personal pension scheme and there is, in the country or territory in which the personal pension scheme provider is established, a body—

(i) which regulates personal pension schemes; and

(ii) which regulates the personal pension scheme provider in relation to that scheme.

(3) The requirement to be satisfied is that the regulatory requirements applicable to an occupational pension scheme or the personal pension scheme provide that some of the benefits applicable to the jobholder may be designated for the purpose of providing that jobholder with an income for life.

(4) The requirement to be satisfied is that the scheme is a qualifying overseas pension scheme.

(5) The requirement to be satisfied is that relief from tax is given in respect of contributions made by an individual under a double taxation agreement for which a deduction of tax is given under the Income and Corporation Taxes Act 1988 .

(6) The requirement to be satisfied is that relief from tax is given in respect of contributions made by an individual under an arrangement entered into by the individual for which a deduction of tax is given under Chapter 2 of Part 5 (Employment Income: Deductions allowed from earnings) of the Income Tax (Earnings and Pensions) Act 2003 for that tax year in accordance with paragraph 51 of Schedule 36 (Pension Schemes etc.) to the Finance Act 2004.

(7) This paragraph applies in relation to any money purchase benefits applicable to the jobholder and the requirement to be satisfied is that the employer's contribution, however calculated, includes an additional amount, the value of which represents the value of any relief from tax which would have been applicable in relation to the jobholder's contributions if the scheme had been registered under Chapter 2 of Part 4 (Pension Schemes etc.) of the Finance Act 2004.

(8) For the purposes of this regulation—

“double taxation agreement” means an agreement having effect by virtue of section 788 (relief by agreement with other territories) of the Income and Corporation Taxes Act 1988;

“qualifying overseas pension scheme” has the meaning given in Schedule 33 (overseas pension schemes: migrant member relief) to the Finance Act 2004.

PART 14 — Due dates

Amendment of the Occupational Pension Schemes (Scheme Administration) Regulations 1996

48

For regulation 16 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 substitute—

(16) (1) Save as provided in paragraph (2), the prescribed period for the purposes of section 49(8) of the 1995 Act (amount deducted from earnings to be paid to the trustees or managers of the scheme within a prescribed period) is— (a) where the contribution payable on behalf of an active member is paid to the trustees or managers of the scheme by means of an electronic communication, 22 days; or (b) in any other case, 19 days, commencing on the day following the last day of the month in which the amount is deducted from the earnings in question. (2) Where a jobholder becomes an active member of an occupational pension scheme in accordance with arrangements provided for in regulation 6, 13, 18, 28 or 29 of the 2010 Regulations, in relation to any contributions deducted between the relevant date and the end of the opt out period, the prescribed period for the purposes of section 49(8) of the 1995 Act is the period commencing on the relevant date and ending on the last day of the second month after the month which includes the relevant date. (3) For the purposes of this regulation— - “the 2008 Act” means the Pensions Act 2008; - “the 2010 Regulations” means the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010; - “automatic enrolment date” has the meaning given by section 3(7) of the 2008 Act (automatic enrolment); - “automatic re-enrolment date” means the date determined in accordance with regulation 12 of the 2010 Regulations; - “electronic communication” has the meaning given in section 15 of the Electronic Communications Act 2000; - “enrolment date” has the meaning given by regulation 18(6) of the 2010 Regulations; - “jobholder” has the meaning given by section 1(1) of the 2008 Act (jobholders); - “opt out period” means the period prescribed by regulation 9 of the 2010 Regulations within which a jobholder who has become an active member of an occupational pension scheme in accordance with arrangements under section 3(2), 5(2) or 7(3) of the 2008 Act, may give notice under section 8 (jobholder's right to opt out) of that Act; and - “relevant date” means the automatic enrolment date, the automatic re-enrolment date or the enrolment date, as the case may be, or for a jobholder to whom regulation 28 or 29 of the 2010 Regulations applies, the day or date mentioned in regulation 6 of those Regulations as modified respectively by regulation 28 or 29, as the case may be.

Amendment of the Personal Pension Schemes (Payments by Employers) Regulations 2000

49

For regulation 5 of the Personal Pension Schemes (Payments by Employers) Regulations 2000 , substitute—

(5) (1) Save as provided in paragraph (2), the prescribed period for the purposes of section 111A(15)(b) of the 1993 Act (meaning of “due date” where a contribution payable under the direct payment arrangements falls to be paid on behalf of the employee) is the period of— (a) where the contribution payable under the direct payment arrangements is paid to the trustees or managers of the scheme by means of an electronic communication, 22 days; or (b) in any other case, 19 days, commencing on the day following the last day of the month in which the deduction was made from the employee’s earnings. (2) Where an employee becomes an active member of a personal pension scheme in accordance with arrangements provided for in regulation 6, 13, 18, 28 or 29 of the 2010 Regulations, in relation to any contributions deducted between the relevant date and the end of the opt out period, the prescribed period for the purposes of section 111A(15)(b) of the 1993 Act is the period commencing on the relevant date and ending on the last day of the second month after the month which includes the relevant date. (3) For the purposes of this regulation— - “the 2008 Act” means the Pensions Act 2008; - “the 2010 Regulations” means the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010; - “automatic enrolment date” has the meaning given by section 3(7) of the 2008 Act (automatic enrolment); - “automatic re-enrolment date” means the date determined in accordance with regulation 12 of the 2010 Regulations; - “electronic communication” has the meaning given in section 15 of the Electronic Communications Act 2000; - “enrolment date” has the meaning given by regulation 18(6) of the 2010 Regulations; - “jobholder” has the meaning given by section 1(1) of the 2008 Act (jobholders); - “opt out period” means the period prescribed by regulation 9 of the 2010 Regulations within which a jobholder who has become an active member of an occupational pension scheme in accordance with arrangements under section 3(2), 5(2) or 7(3) of the 2008 Act, may give notice under section 8 (jobholder's right to opt out) of that Act; - “relevant date” means the automatic enrolment date, the automatic re-enrolment date or the enrolment date, as the case may be, or for a jobholder to whom regulation 28 or 29 of the 2010 Regulations applies, the day or date mentioned in regulation 6 of those Regulations as modified respectively by regulation 28 or 29, as the case may be.

Due Date for the purposes of section 37(3) of the Act

50

(1) This regulation defines “due date” for the purposes of section 37 (unpaid contributions notices) of the Act.

(2) Subject to paragraphs (3) to (6), “due date” means the 22nd day of the month following the month during which either—

(a) relevant contributions payable to—

(i) the trustees or managers of an occupational pension scheme, or

(ii) the provider of a personal pension scheme,

were deducted by an employer (whether or not under section 33 (deduction of contributions) of the Act); or

(b) relevant contributions payable to—

(i) an occupational pension scheme under a payment schedule, or

(ii) a personal pension scheme under direct payment arrangements,

were due but not made by an employer.

(3) Where a jobholder becomes an active member of a qualifying scheme or a worker is enrolled pursuant to section 9 of the Act in a scheme which meets the requirements of section 9 of the Act, paragraph (2) does not apply in respect of contributions—

(a) deducted in the 3 month period commencing with the relevant date; or

(b) due but not made in the 3 month period commencing with the relevant date,

in which case paragraph (4) applies.

(4) Where this paragraph applies, “due date” means the 22nd day of the fourth month after the month which includes the relevant date.

(5) Paragraphs (2) and (3) do not apply where an employer uses either—

(a) a defined benefits scheme; or

(b) a hybrid scheme,

to comply with sections 2 to 9 of the Act, in which case paragraph (6) applies.

(6) Where a scheme used by an employer to comply with sections 2 to 9 of the Act—

(a) is a defined benefits scheme, “due date” means the due dates of relevant contributions payable by or on behalf of—

(i) active members of a scheme, and

(ii) an employer,

under a schedule of contributions; or

(b) is a hybrid scheme, “due date” in respect of any part of that scheme providing—

(i) defined benefits, has the same meaning as in sub-paragraph (a); or

(ii) money purchase benefits, has the same meaning as in paragraph (2), except where a jobholder becomes an active member of an occupational pension scheme or a personal pension scheme in accordance with regulation 6, 13, 18, 28 or 29, in which case it has the same meaning as in paragraph (4).

(7) For the purposes of this regulation—

“direct payment arrangements” has the meaning given in section 111A of the 1993 Act ;

“payment schedule” has the meaning given in section 87 (schedules of payments to money purchase schemes) of the 1995 Act ;

“relevant date” means the date from which active membership is effective.

“schedule of contributions” has the meaning given in section 227(2) of the Pensions Act 2004.

Schedule 1 — Information for workers

Signed

Signed by authority of the Secretary of State for Work and Pensions.

Angela Eagle — Minister of State, — 2010-03-11

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: Section 181 of the Pension Schemes Act 1993 is cited for the meaning it gives to “prescribed” and “regulations”.

[^f00002]: 1993 c.48; section 111A(15) was inserted by section 9 of the Welfare Reform and Pensions Act 1999 (c.30).

[^f00003]: Section 124(1) of the Pensions Act 1995 is cited for the meaning it gives to “prescribed” and “regulations”.

[^f00004]: 1995 c.26; section 49(8) was substituted for section 49(8) as originally enacted by section 10 of the Welfare Reform and Pensions Act 1999.

[^f00005]: Section 99 of the Pensions Act 2008 is cited for the meaning it gives to “prescribed” and “regulations”.

[^f00006]: 2008 c.30.

[^f00007]: 2004 c.12; section 192(4) was substituted for section 192(4) as originally enacted by section 6(5) and paragraphs 10 and 11 of Part 2 of Schedule 2 to the Finance Act 2004; section 192(5) was repealed by sections 1027 and 1031 of the Income Tax Act 2007 (c.3).

[^f00008]: Sub-paragraphs (b) and (c) of section 20(1) are applied to occupational pension schemes within section 18(b) of the Act which are: money purchase schemes by regulation 45(1)(a); defined benefit schemes by regulation 45(3)(a) and hybrid schemes by regulation 45(5) to (7)(a).

[^f00009]: Paragraphs (4)(b) and (5)(b) of section 26 are applied to personal pension schemes within regulation 35(1)(a)(ii) by regulation 46(a).

[^f00010]: 2004 c.12.

[^f00011]: OJ L 177, 30.6.2006, p1.

[^f00012]: OJ L 145, 30.4.2004, p1.

[^f00013]: OJ L 375, 31.12.85, p3 (as amended by Directive 2001/107/EC OJ L 41, 13.2.02, p20).

[^f00014]: OJ L 345, 19.12.02, p.1.

[^f00015]: 2004 c.35.

[^f00016]: Section 51 was amended by paragraph 51 of Schedule 12 to the Welfare Reform and Pensions Act 1999 (c.30), section 51(1) of the Child Support, Pensions and Social Security Act 2000 (c.19), section 278 of the Pensions Act 2004 (c.35) and S.I. 2006/745.

[^f00017]: See the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (S.I. 1996/1715).

[^f00019]: The rules are available at www.dwp.gov.uk.

[^f00020]: OJ L 209, 25.7.1998 p.46-49.

[^f00021]: OJ L 209, 25.7.1998 p.46-49.

[^f00022]: OJ L 209, 25.7.1998 p.46-49.

[^f00023]: 1988 c.1.

[^f00024]: 2003 c.1.

[^f00025]: S.I. 1996/1715. Regulation 16 was amended by S.I. 1997/786 and 2000/679.

[^f00026]: S.I. 2000/2692.

[^f00027]: Section 111A was inserted by the Welfare Reform and Pensions Act 1999, section 9 and amended by section 268 of the Pensions Act 2004.

[^f00028]: Section 87 of the 1995 Act has been amended but not in a way material to these Regulations.

Citation, commencement, expiry and interpretation

PART 1A — Exemption and Exceptions

Exemption of European employers

5A

Sections 2(1), 3(2), 5(2), 7(3), 9(2) and 54 of the Act (employer’s obligations regarding membership of a qualifying scheme) do not apply in relation to a person’s employment of an individual in relation to whom the person is a European employer.

Opting Out

Refunds

Prescribed requirements for the purposes of section 4(1), (2) and (3) of the Act

Notice to be given under section 30(3) of the Act

Opting out

Refunds

PART7A — Certification that a quality or alternative requirement is satisfied

Effect of a certificate under section 28 of the Act

32A

Subject to regulation 32H, a scheme to which section 28 of the Act applies is to be taken to satisfy the relevant quality requirement in relation to each of an employer’s relevant jobholders if the certificate in question is given in accordance with regulations 32B to 32D in relation to the employer and those jobholders.

Giving of a certificate, retention and disclosure

32B

(1) Subject to paragraph (2), a certificate under section 28(1) of the Act must be given by the employer or by a person who is authorised by the employer to give the certificate on its behalf.

(2) The person who gives the certificate must have regard to any guidance that is issued by the Secretary of State.

(3) A certificate may be given for a certification period of eighteen months or any part of such a period.

(4) A certificate must be given no later than the end of a period of one month beginning with the first day of the certification period.

(5) The employer or a person as referred to in paragraph (1) may, at any time before the end of the certification period, amend the certificate so that the certification period ends on a different day, being a day after the day on which the amendment is made and not later than the last day of the period of eighteen months beginning with the first day of the certification period.

(6) Where a certificate has been amended under paragraph (5), it may be amended again under that paragraph and so on with reference to any further amendment that is made under that paragraph.

(7) The employer must retain the certificate for a period of 6 years after the end of the certification period and must provide a copy of the certificate to the Regulator on receiving from the Regulator a notification requesting such a copy.

(8) The employer must, where a request for a copy of the certificate is received within the period of 6 years after the end of the certification period, from—

(a) a relevant jobholder; or

(b) any independent trade union recognised to any extent for the purposes of collective bargaining in relation to any relevant jobholder,

send a copy of the certificate to the person who requested it, within a period of 2 months after the day on which the employer received the request.

(9) For the purpose of paragraph (8), “independent trade union” has the meaning given in section 235(1) of the Employment Rights Act 1996.

Form of certificate

32C

A certificate under section 28(1) of the Act must be in writing and contain the following information –

(a) whether the certificate relates to part of a scheme and, if so, which part;

(b) the employer pension scheme reference within the meaning of regulation 1 of the Employers’ Duties (Registration and Compliance) Regulations 2010;

(c) whether the certificate relates to all of the jobholders of the employer who are active members of the scheme or part-scheme in question;

(d) where the certificate relates to only some of the jobholders of the employer who are active members of the scheme or part-scheme (“the active members”) —

(i) the names and roles of the relevant jobholders;

(ii) where one or more of the active members have not been included in the certificate because they have chosen to pay contributions at a level such that the relevant quality requirement or alternative requirement is not met, the names and roles of those active members; and

(iii) where one or more of the active members have not been included in the certificate because, in the opinion of the person who gives the certificate, the contributions made by the employer and the member will clearly meet the relevant quality requirement, the names and roles of those active members;

(e) where the certificate is given with respect to an alternative requirement—

(i) under regulation 32E or 32G, which of the sets of requirements in regulation 32E applies; or

(ii) under regulation 32F, which of the sets of requirements in that regulation applies;

(f) where the certificate relates to a hybrid scheme to which regulation 43 applies, the percentages referred to in regulation 43(4)(a) and (b);

(g) where there is an upper limit to the amount of contributions that may be paid as referred to in regulation 32E(5) or 32F(8), that limit;

(h) the certification period; and

(i) whether that period has been amended and, if so, the previous certification period or periods.

Renewal of Certificate

32D

(1) Paragraph (2) applies where—

(a) it is proposed to give, by or on behalf of an employer, a certificate under section 28(1) of the Act (“the further certificate”); and

(b) the certification period of one or more reference certificates has ended, or will end, within a period of 2 years before the day on which it is proposed that the certification period of the further certificate will begin.

(2) Where this paragraph applies, before the further certificate is given, the employer must—

(a) assess whether, during the certification period of any reference certificate as referred to in paragraph (1)(b) and in relation to the jobholders to whom that certificate applies, all of the elements of the alternative requirement or relevant quality requirement were, or will be, met;

(b) where an element of the alternative requirement or relevant quality requirement was not, or will not be, met, consider what (if any) action needs to be taken by the employer in order to ensure that the alternative requirement or relevant quality requirement will be met in relation to the jobholders to whom the further certificate will apply, for the proposed period of the further certificate, and take any such action;

(i) the assessment made under sub-paragraph (a); and

(ii) the action (if any) that the employer takes, as referred to in sub-paragraph (b);

(d) retain that record for a period of 6 years beginning with the day on which the record was compiled; and

(e) provide a copy of that record to the Regulator on receiving a notification from the Regulator requesting such a copy.

(3) Paragraph (2) applies even where, under regulation 32H(2), in relation to a reference certificate and the jobholders to whom it applies, the scheme is not to be treated by virtue of regulation 32A as having satisfied the relevant quality requirement.

(4) For the purposes of paragraphs (1) to (3), a “reference certificate” means a certificate under section 28(1) of the Act that has been given, by or on behalf of the employer, in relation to some or all of the jobholders to whom the further certificate is to apply.

Alternative requirements for a money purchase scheme

32E

(1) Subject to paragraph (1A), in relation to a money purchase scheme to which section 20 of the Act applies ... the prescribed alternative requirement is the first, second or third set of requirements below.

(1A) In relation to a money purchase scheme—

(a) to which section 20 of the Act applies; and

(b) which provides collective money purchase benefits,

the prescribed alternative requirement is the first, second or third set of requirements below or, in respect of any jobholders accruing rights to benefits under a collective money purchase scheme, the requirements set out in regulation 32EA.

(2) The first set of requirements is that under the scheme —

(a) the employer of the relevant jobholder must pay contributions in respect of the jobholder;

(b) the employer’s contribution must be equal to or more than 4% of the amount of the relevant jobholder’s pensionable earnings in the certification period;

(c) the total amount of the contributions paid by the relevant jobholder and the employer must be equal to or more than 9% of the jobholder’s pensionable earnings in the certification period; and

(d) the pensionable earnings of the relevant jobholder must be equal to or more than the basic pay of that jobholder.

(3) The second set of requirements is that—

(a) under the scheme—

(i) the employer of the relevant jobholder must pay contributions in respect of the jobholder;

(ii) the employer’s contribution must be equal to or more than 3% of the amount of the relevant jobholder’s pensionable earnings in the certification period;

(iii) the total amount of the contributions paid by the relevant jobholder and the employer must be equal to or more than 8% of the amount of the jobholder’s pensionable earnings in the certification period; and

(iv) the pensionable earnings of the relevant jobholder must be equal to or more than the basic pay of that jobholder; and

(b) taking all of the relevant jobholders together, the pensionable earnings of those jobholders constitute at least 85% of the earnings of those jobholders in the certification period.

(4) The third set of requirements is that under the scheme—

(a) the employer of the relevant jobholder must pay contributions in respect of the jobholder;

(b) the employer’s contribution must be equal to or more than 3% of the amount of the relevant jobholder’s earnings in the certification period; and

(c) the total amount of the contributions paid by the relevant jobholder and the employer must be equal to or more than 7% of the amount of the jobholder’s earnings in that period.

(5) Subject to the proviso in paragraph (6), for the purposes of paragraphs (1) to (4), a scheme as referred to in paragraph (1) may satisfy the first, second or third set of requirements even though under the scheme there is an upper limit (however expressed) to the amount of contributions that may be paid by the employer or the relevant jobholder or both of those persons.

(6) The proviso referred to is that the upper limit must not result in the payment of contributions by the employer, or by the employer and the relevant jobholder, that are less than those required by the relevant quality requirement.

(7) For the purposes of paragraphs (2) to (6), a reference to “the relevant jobholder” is a reference to each of the relevant jobholders.

Alternative requirements for a personal pension scheme

32F

(1) In relation to a personal pension scheme to which section 26 of the Act applies or which is referred to in regulation 32J(1), the prescribed alternative requirement is the first, second or third set of requirements below.

(2) The first set of requirements is that —

(a) all of the benefits that may be provided to the relevant jobholder under the scheme are money purchase benefits;

(b) there is, in relation to the relevant jobholder, an agreement between the provider of the scheme and the employer under which—

(i) the employer must pay contributions in respect of the jobholder;

(ii) the employer’s contribution must be equal to or more than 4% of the amount of the jobholder’s pensionable earnings in the certification period; and

(iii) the pensionable earnings of the jobholder must be equal to or more than the basic pay of that jobholder;

(c) if there is a shortfall, there is an agreement between the provider of the scheme and the relevant jobholder which provides that the jobholder must pay contributions which are equal to or more than the shortfall; and

(d) there are direct payment arrangements between the relevant jobholder and the employer within the meaning of section 111A of the Pension Schemes Act 1993.

(3) In paragraph (2)(c), “shortfall” means the difference (if any) between—

(a) the employer’s contributions in respect of the relevant jobholder under the agreement referred to in paragraph (2)(b); and

(b) 9% of the amount of the relevant jobholder’s pensionable earnings in the certification period, being earnings which are equal to or more than the basic pay of that jobholder.

(4) The second set of requirements is that—

(a) all of the benefits that may be provided to the relevant jobholder under the scheme are money purchase benefits;

(b) there is, in relation to the relevant jobholder, an agreement between the provider of the scheme and the employer under which—

(i) the employer must pay contributions in respect of the jobholder;

(ii) the employer’s contribution must be equal to or more than 3% of the amount of the jobholder’s pensionable earnings in the certification period; and

(iii) the pensionable earnings of the jobholder must be equal to or more than the basic pay of that jobholder;

(c) if there is a shortfall, there is an agreement between the provider of the scheme and the relevant jobholder which provides that the jobholder must pay contributions which are equal to or more than the shortfall;

(d) taking all of the relevant jobholders together, the pensionable earnings of the jobholders constitute at least 85% of the earnings of the jobholders in the certification period; and

(e) there are direct payment arrangements between the relevant jobholder and the employer within the meaning of section 111A of the Pension Schemes Act 1993.

(5) In paragraph (4)(c), “shortfall” means the difference (if any) between—

(a) the employer’s contributions in respect of the relevant jobholder under the agreement referred to in paragraph (4)(b); and

(b) 8% of the amount of the relevant jobholder’s pensionable earnings in the certification period, being earnings which are equal to or more than the basic pay of that jobholder.

(6) The third set of requirements is that—

(a) all of the benefits that may be provided to the relevant jobholder under the scheme are money purchase benefits;

(b) there is, in relation to the relevant jobholder, an agreement between the provider of the scheme and the employer under which—

(i) the employer must pay contributions in respect of the jobholder; and

(ii) the employer’s contribution must be equal to or more than 3% of the amount of the jobholder’s earnings in the certification period;

(c) if there is a shortfall, there is an agreement between the provider of the scheme and the relevant jobholder which provides that the jobholder must pay contributions which are equal to or more than the shortfall; and

(d) there are direct payment arrangements between the relevant jobholder and the employer within the meaning of section 111A of the Pension Schemes Act 1993.

(7) In paragraph (6)(c), “shortfall” means the difference (if any) between—

(a) the employer’s contributions in respect of the relevant jobholder under the agreement referred to in paragraph (6)(b); and

(b) 7% of the amount of the relevant jobholder’s earnings in the certification period.

(8) Subject to the proviso in paragraph (9), for the purposes of paragraphs (1) to (7), a scheme as referred to in paragraph (1) may satisfy the first, second or third set of requirements even though under the agreements referred to above there is an upper limit (however expressed) to the amount of contributions that may be paid by the employer or the relevant jobholder or both of those persons.

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