The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013

• (3) This regulation does not apply where the trustees or managers of an occupational pension scheme receive on or after 1st June 2022 from any person an application, or communication made in relation to an application, from B to transfer rights in accordance with paragraph (2)(a) if—

• (a) B is under the age of 50;

• (b) receiving flexible benefits is not the purpose, or one of the purposes, of the application; or

• (c) the trustees or managers have received from B or a person authorised to act on behalf of B confirmation (given verbally or in writing) in relation to the application that—

• (i) B—

• (aa) has been referred by the trustees or managers of a different pension scheme to appropriate pensions guidance; and

• (bb) has received or opted out of receiving that guidance,

in accordance with the requirements of this regulation; or

• (ii) B is transferring rights to flexible benefits into a relevant pension scheme in respect of which the trustees or managers are required to comply with rules made under section 137FB of the Financial Services and Markets Act 2000 (FCA general rules: disclosure of information about the availability of pensions guidance).

• (4) As part of the application process, the trustees or managers—

• (a) must offer to book a pensions guidance appointment on behalf of B on a date, at a time and of a kind suitable for B;

• (b) where B accepts the offer mentioned in sub-paragraph (a), must take reasonable steps to book that appointment;

• (c) where B does not accept that offer, or where the trustees or managers are unable to book such an appointment on a date, at a time and of a kind suitable for B despite having taken reasonable steps, must provide B with details of how to book a pensions guidance appointment;

• (d) must explain to B that they cannot proceed with the application unless—

• (i) B has received, and notified them of receipt of, appropriate pensions guidance; or

• (ii) B opts out of receiving such guidance by giving them an opt-out notification; and

• (e) must explain to B that B can only opt out of receiving appropriate pensions guidance by giving them an opt-out notification.

• (5) Where the trustees or managers receive an application, or communication made in relation to an application, as mentioned in paragraph (2), B may give an opt-out notification—

• (a) in a communication made solely for the purpose of opting out of receiving appropriate pensions guidance; or

• (b) where paragraph (9) applies.

• (6) Paragraph (7) applies to any interaction subsequent to the interaction mentioned in paragraph (4) where B contacts the trustees or managers in connection with B’s application unless—

• (a) B has confirmed to the trustees or managers that B has received appropriate pensions guidance in connection with the application; or

• (b) B has provided to the trustees or managers an opt-out notification in a communication made solely for the purpose of opting out of receiving appropriate pensions guidance.

• (7) Where this paragraph applies, the trustees or managers must repeat the steps required by paragraph (4).

• (8) If, at any point while the trustees or managers are repeating the steps required by paragraph (4) by virtue of paragraph (7), B confirms to them that B has received appropriate pensions guidance in connection with the application, the trustees or managers may treat the requirements of paragraph (4) as having been satisfied.

• (9) This paragraph applies where the trustees or managers have received from B or a person authorised to act on behalf of B confirmation (given verbally or in writing) that—

• (a) B has received—

• (i) appropriate pensions guidance; or

• (ii) regulated financial advice in connection with the application, provided by a financial adviser regulated and authorised by the Financial Conduct Authority to provide such advice,

in the 12-month period (excluding the date of receipt) before the trustees or managers received an application, or communication made in relation to an application, as mentioned in paragraph (2);

• (b) B qualifies for a serious ill-health lump sum within the meaning of paragraph 4(1) of Schedule 29 to the Finance Act 2004; or

• (c) B’s application is solely to transfer any of their rights to flexible benefits accrued under the scheme.

• (10) In this regulation—

• “appropriate pensions guidance” means pensions guidance accessible by B during a pensions guidance appointment which includes the facility for real-time human interaction between the parties during the appointment (whether face to face, by telephone or through another electronic medium);

• “opt-out notification” means a notification (given verbally or in writing) given to the trustees or managers of an occupational pension scheme for the purpose of confirming that B is opting out of receiving appropriate pensions guidance in connection with an application or communication made in relation to an application;

• “pensions guidance appointment” means an appointment of B with the provider of appropriate pensions guidance;

• “regulated financial advice” means advice of a kind mentioned in article 53 of the Financial Services and Markets Act (Regulated Activities) Order 2001 (advising on investments);

• “relevant beneficiary” has the meaning given by the definition in section 113B(6) of the 1993 Act and for the purposes of paragraph (b) of that definition another person of a prescribed description is a survivor of a member.

Consequential modifications of sections 99 and 101J of the 1993 Act

18D

• (1) The 1993 Act has effect subject to the following modifications.

• (2) Where regulation 18C of these Regulations applies in relation to an application under section 95(1) (ways of taking right to cash equivalent), section 99(2)(b) (trustees’ duties after exercise of option) has effect as if the duty it imposes only applies if, within the 6-month period to which it refers, therequirementsunder that regulation for proceeding with the application have been satisfied.

• (3) Where regulation 18C of these Regulations applies in relation to the requirement under section 101G(4) (restrictions on power to give transfer notice) for a member to make an application under section 95(1) in addition to giving a transfer notice, section 101J(1)(b) (time for compliance with transfer notice) has effect as if the duty it imposes only applies if, within the 6-month period to which it refers, therequirementsunder that regulationfor proceeding with the applicationhave been satisfied.

Record-keeping requirements of trustees and managers

18E

• (1) The trustees or managers of an occupational pension scheme must, in respect of a relevant beneficiary (“B”), keep a record of—

• (a) the receipt by B of appropriate pensions guidance in connection with an application, or communication made in relation to an application, from B under regulation 18C(2);

• (b) the provision to them by B of an opt-out notification in connection with an application, or communication made in relation to an application, from B under regulation 18C(2); or

• (c) the receipt of a confirmation referred to in regulation 18C(9).

• (2) For the purposes of paragraph (1), “relevant beneficiary”, “appropriate pensions guidance” and “opt-out notification” have the meanings given in regulation 18C(10).

First information on accessing benefits

Retirement risk warnings

Second information on accessing benefits

Accessing benefits on the death of the member or beneficiary

Scheme closure: collective money purchase schemes

8A

• (1) In relation to a collective money purchase scheme, the information specified in paragraphs (2) and (3) must be given in accordance with this regulation.

• (2) The information listed in paragraphs 30 to 33 of Schedule 2 must be given as soon as practicable and in any event no more than one month after a decision by the trustees to pursue continuity option 3.

• (3) The information listed in paragraphs 34 to 37 of Schedule 2 must be given as soon as is practicable and in any event no more than one month after the date on which the Regulator notifies the trustees in accordance with section 38(4) of the 2021 Act.

• (4) The information must be given to all members and beneficiaries of the scheme except for excluded persons.

• (5) In this regulation, and in Schedule 2, “continuity option 3” is the conversion of the scheme into a closed scheme in accordance with sections 34 and 38 of the 2021 Act and regulations made under the latter of those sections.

Modification by the Regulator

Former stakeholder pension schemes

Statements of benefits: collective money purchase schemes

17A

• (1) The information mentioned in paragraph 2 must be given in accordance with this regulation to a member of a collective money purchase scheme who is not—

• (a) an excluded person, or

• (b) a member to whom benefits under the scheme have, or are about to, become payable.

• (2) The information is—

• (a) for active members, the information listed in Parts 1, 2 and 4 of Schedule 6A,

• (b) for deferred members, the information listed in Parts 1, 2, 3 and 5 of Schedule 6A. and

• (c) for pension credit members, the information listed in Parts 1 and 3 of Schedule 6A.

• (3) The information must be given—

• (a) no more than 12 months after the effective date of the first actuarial valuation, and

• (b) thereafter, no more than 12 months after the end of each scheme year.

• (4) In this regulation, “the effective date” is the date by reference to which the available assets of the scheme are determined.

• (5) A notification need not be given under regulation 27 in relation to the information on the website that is also given to the person in accordance with paragraphs 15 and 16 of Schedule 6A (statements of benefits: collective money purchase benefits).

Benefit adjustment information: collective money purchase schemes

22A

• (1) Information listed in paragraphs 15 to 20 of Schedule 7 must be provided in accordance with this regulation to members and beneficiaries of a collective money purchase scheme.

• (2) The information must be given each time an actuarial valuation is obtained—

• (a) as soon as reasonably practicable after the certification of the actuarial valuation by the scheme actuary, and

• (b) no less than six weeks before any adjustment to the rate or amount of benefits provided under the scheme following the latest actuarial valuation is applied, where reasonably practicable.

Incorrect benefit adjustments in collective money purchase schemes

22B

• (1) The information listed in paragraphs 21 to 27 of Schedule 7 must be given in accordance with this regulation where—

• (a) the scheme is a collective money purchase scheme, and

• (b) a benefit adjustment has not been applied in accordance with the scheme rules or (as the case may be) the latest actuarial valuation.

• (2) The information must be given as soon as reasonably practicable to members and beneficiaries who have been or will be affected by the failure to apply the benefit adjustment in accordance with the scheme rules or (as the case may be) the latest actuarial valuation.

Additional publication requirements for collective money purchase schemes

29B

• (1) In relation to a collective money purchase scheme, the information specified in paragraphs (2) to (4) must be published in accordance with this regulation.

• (2) The following information must be published no more than one month after the date on which the Regulator notifies the applicant of its decision to authorise the scheme—

• (a) a statement explaining the design of the scheme, which must contain the information listed in Part 1 of Schedule 11, and

• (b) the scheme’s rules.

• (3) The information listed in Part 2 of Schedule 11 must be published no more than three months after the latest actuarial valuation is sent to the Regulator.

• (4) The model used to calculate information specified in paragraphs ... 19, 20 and 23 to 25 of Schedule 6A must be published as soon as reasonably practicable after information is first provided in accordance with regulation 17A.

• (5) Where there is a change in relation to the information listed in paragraph 4 or paragraph 5 of Schedule 11, the statement mentioned in sub-paragraph (2)(a) must be altered accordingly, and published ... as soon as practicable after the change.

• (6) Each time the document specified in sub-paragraph (2)(b) is changed after it is first published, the changed version must be published ... as soon as possible after (and in any event within three months after) the change.

• (7) A notification need not be given under regulation 27 in relation to the information on the website that is published in accordance with this regulation.

• (8) Where a person requests the trustees of the scheme to provide the information referred to in paragraph (2), (3) or (4) in hard copy form, the trustees of the scheme must give that information to the person in hard copy form where, but only where, the trustees are satisfied that it would be unreasonable for that person to obtain it from the website on which it is published.

• (9) Where information is required to be given in hard copy form in accordance with paragraph (8), it must be given within two months of the date the request is made.

• (10) In this regulation “published” means made publicly available free of charge on a website.

Responsibility for giving information and documents

18A

In respect of a collective money purchase scheme, a statement that—

• (a) there is no promise or guarantee as to the rate or amount of benefit provided under the scheme, and

• (b) the rate or amount of benefits may fluctuate, which may result in—

• (i) reduced benefits before benefit becomes payable;

• (ii) reduced benefits after benefit becomes payable.

18B

In respect of a collective money purchase scheme, a summary of the rules governing how the rate or amount of benefits provided under the scheme is to be adjusted from time to time, including—

• (a) that annual benefit calculations and any adjustments of the rate or amount of benefits are applied to all the members of the scheme without variation,

• (b) where relevant, an explanation of how any multi-annual reduction permitted under the scheme rules operates and the effect it may have on the rate or amount of benefits provided under the scheme, and

• (c) the arrangements in place for making any adjustments to the rate or amount of benefits provided to pensioner members.

PART 4 — Scheme closure: collective money purchase schemes

30

A statement that a decision has been made to pursue continuity option 3.

31

A summary of the reasons for the decision in paragraph 30.

32

An estimate of when information will be provided in accordance with paragraphs 34 to 37.

33

A statement that the scheme will continue to operate in respect of its current members and beneficiaries.

34

A statement confirming that the scheme will be closed, which must include whether it will be closed to new contributions or new members (or both).

35

The date the scheme will begin to operate as a closed scheme.

36

A statement explaining any impact that the closure will have in relation to accrued rights to benefits under the scheme, including any differences in impact for active, deferred and pensioner members.

37

The arrangements for—

• (a) the future operation of the scheme, and

• (b) where the scheme will be closed to new contributions, any scheme or section of a scheme to which future contributions may be made.

10A

In respect of a collective money purchase scheme, the latest actuarial valuation.

SCHEDULE6A — Statements of Benefits: Collective Money Purchase Benefits

PART1 — Information for active, deferred and pension credit members

1

The date on which the member’s pensionable service started.

2

The member’s retirement date and age used for the purposes of the information given under this Schedule.

3

The illustration date.

4

An explanation of how the member may obtain further details about the information given under this Schedule.

5

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

6

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

7

Details of any deduction from the member’s benefits.

8

Where applicable, a statement that, if the member exercises rights or options to access benefits under the scheme before the member’s retirement date, the amount of the member’s benefits is likely to be lower.

9

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

10

A statement that illustrations of the amount of pension that may be payable to the member on the member’s retirement date—

• (a) do not represent any promise or guarantee as to the amount of benefits that may be receivable by the member under the scheme, and

• (b) are calculated using projections based on actuarial assumptions as to uncertain future events, and that the actual amount could be higher or lower.

11

A statement that—

• (a) any future increases or decreases in the rate or amount of benefits provided under the scheme will depend on the available assets of the scheme,

• (b) assumptions have been made about the nature of the scheme’s investments and their likely performance, and

• (c) those assumptions may not correspond with the investments actually made or their actual performance.

12

A statement that the amounts in any illustrations of amount of pension given are expressed in today’s prices.

13

Either—

• (a) an explanation of the meaning and basis of “today’s prices”, or

• (b) a statement that such an explanation is—

• (i) provided in a specified annex, or

• (ii) available on a website, in which case the statement must include the information listed in regulation 27(2).

14

Where any illustrations of amount of pension are expressed as a range, an explanation of the extent of variability which the range represents.

15

In relation to the information that must be published on a website in accordance withregulation 29A(2)and (2A)(publishing charges and transaction costs and other relevant information)—

• (a) the information specified insub-paragraphs (a) to (d) of regulation 27(2)(provision of information on a website), and

• (b) a statement explaining the circumstances in which the information will be provided on request in hard copy form.

16

Where the trustees are required to publish a report on a website in accordance with regulation 5 of the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 (climate change reporting and publication requirements), in relation to the most recent report published—

• (a) the information specified in sub-paragraphs (a) to (d) of regulation 27(2) of these Regulations; and

• (b) a statement explaining the circumstances in which the report will be provided on request in hard copy form.

17

Either—

• (a) a summary of the methods and assumptions used to calculate—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) the member’s future benefit illustrations, or

• (b) a statement that such a summary is—

• (i) provided in a specified annex, or

• (ii) available on a website, in which case the statement must include the information listed in regulation 27(2).

PART2 — Information for active and deferred members

18

Where the member has reached normal minimum pension age on the illustration date, a statement explaining that the member may request the following information—

• (a) the flexible benefits that may be provided to the member,

• (b) the member’s opportunity to transfer flexible benefits, and

• (c) the options available to the member under the scheme rules.

PART3 — Information for deferred and pension credit members

19

An illustration, having regard to the latest actuarial modelling under the scheme, of the amount of any survivor’s benefits, as if these were payable on the illustration date.

20

An illustration of the amount of pension, having regard to the latest actuarial modelling under the scheme, that may be payable to the member on their retirement date.

21

Either—

• (a) a summary of the method used for calculating any survivor’s benefits, or

• (b) a statement that such a summary is—

• (i) provided in a specified annex, or

• (ii) available on a website, including the information listed in regulation 27(2).

PART4 — Information for active members

22

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

23

The amount, at the illustration date, of any benefits payable on the death of the member.

24

An illustration of the amount of pension, which may be payable to the member at their retirement date if pensionable service were to end on the illustration date, having regard to the latest actuarial modelling under the scheme.

25

An illustration of the amount of pension, which may be payable to the member at their retirement date if contributions continue, having regard to the latest actuarial modelling under the scheme.

26

A statement that it is assumed the active member will continue to contribute, or a contribution will be made on the member’s behalf, to the scheme until their retirement date.

27

A statement as to any assumed salary increases taken into account in calculating the illustration provided in accordance with paragraph 25.

28

Either—

• (a) a summary of the method used for calculating the member’s death in service benefits, or

• (b) a statement that such a summary is—

• (i) provided in a specified annex, or

• (ii) available on a website, including the information listed in regulation 27(2).

PART5 — Information for deferred members

29

The date on which the member became a deferred member.

30

A statement that no further contributions are expected to be made to the scheme by, or in respect of, the member after the illustration date.

6A

In relation to a collective money purchase scheme, a statement that—

• (a) there is no promise or guarantee as to the rate or amount of benefit provided under the scheme, and

• (b) the rate or amount of benefits may fluctuate, which may result in—

• (i) reduced benefits before benefit becomes payable;

• (ii) reduced benefits after benefit becomes payable.

PART 4 — Information to be given by collective money purchase schemes about benefit adjustments

15

Where benefit is not yet payable to the person—

• (a) the amount representing the member’s share of the available assets of the scheme,

• (b) the period for which that amount applies,

• (c) except where information under this paragraph is provided to the person for the first time—

• (i) any adjustment to that amount since the previous year, both in monetary terms and as a percentage increase or decrease,

• (ii) where applicable, an explanation of why that amount has been adjusted or, as the case may be, remained the same, and

• (d) an explanation of when an adjustment in that amount may next occur.

16

Where benefit is payable to the person—

• (a) the amount of benefit that is payable,

• (b) the period for which that amount applies,

• (c) except where information under this paragraph is provided to the person for the first time—

• (i) any adjustment to the amount of benefit payable from the previous year, both in monetary terms and as a percentage increase or decrease,

• (ii) an explanation of why the amount of benefit payable has been adjusted or, as the case may be, remained the same, and

• (d) an explanation of when an adjustment in the amount of benefit payable may next occur.

17

Any rights or options a person may be entitled to exercise in the event of a member or beneficiary dying, and any procedures for exercising those rights or options.

18

A statement that there is no promise or guarantee as to the amount of benefit that may be provided under the scheme, that the rate or amount of benefits may fluctuate, and that this may result in reduced benefits.

19

A summary of the method and assumptions used to calculate the benefit adjustments.

20

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

21

The level of the benefit adjustment that should have been applied in accordance with the latest actuarial valuation and the schemes rules.

22

The level of the benefit adjustment that was actually applied.

23

Where the benefit adjustment that was actually applied was not the adjustment that should have been applied in accordance with the latest actuarial valuation and the schemes rules, any proposed remedial actions.

24

A timetable for implementing any remedial actions.

25

A statement indicating whether the failure to apply the benefit adjustment in accordance with the scheme rules or (as the case may be) the latest actuarial valuation has resulted in any negative impact on the scheme’s ongoing ability to deliver the pension benefits envisaged under the design of the scheme.

26

Where there is a likely negative impact on the scheme’s ongoing ability to deliver the pension benefits envisaged, details of any proposed actions to address the negative impact.

27

An explanation of what the trustees will do to ensure benefit adjustments are applied correctly in future.

SCHEDULE 11 — Statements to Be Published by Collective Money Purchase Schemes

PART 1 — Scheme design statement

1

A summary of—

• (a) the rate or amount ... by reference to which ... benefits accrue each year under the scheme;

• (b) the rate or amount of contributions paid by the employer;

• (c) the rate or amount of contributions paid by the member;

• (d) the normal pension age as specified in the rules of the scheme.

2

A statement that—

• (a) there is no promise or guarantee as to the rate or amount of benefits provided under the scheme, and

• (b) the rate or amount of benefits may fluctuate, which may result in—

• (i) reduced benefits before benefit becomes payable;

• (ii) reduced benefits after benefit becomes payable.

3

A summary of the rules governing how the rate or amount of benefits provided under the scheme is to be adjusted from time to time, including—

• (a) that annual benefit calculations and any adjustments of the rate or amount of benefits are applied to all the members of the scheme without variation, and

• (b) where relevant, an explanation of how any multi-annual reduction permitted under the scheme rules operates and the effect it may have on the rate or amount of benefits provided under the scheme.

4

An explanation of how the trustees of the scheme will monitor risks to the scheme including potential negative impacts on the rate or amount of benefits provided under the scheme.

5

A summary of the procedure that would be followed in the event of the winding up of the scheme.

PART 2 — Valuation and benefit adjustment statement

6

The name of the scheme to which the statement relates.

7

A summary of the results of the latest actuarial valuation of the scheme, based on the latest actuarial valuation report, including any resulting benefit adjustment.

8

An explanation of the methods and assumptions used in the latest actuarial valuation.

9

The effective date of the latest actuarial valuation to which the explanation in paragraph 8 relates.

10

A description of the model used to calculate benefit illustrations for the purpose of annual benefit statements.

11

In the case of the first valuation statement for the scheme, an explanation of any changes to the methods and assumptions used in the application for authorisation.

12

In the case of all subsequent statements, an explanation of any changes to the actuarial valuation or to the methods and assumptions used in the last statement.

13

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