Annual Funding Statement 2021 Annual Funding Statement 2021 This statement is for trustees and sponsoring employers of occupational defined benefit (DB) pension schemes. 9.In section 60 (registrable information), in subsection (2), after paragraph 10.In section 80 (offences of providing false or misleading information), 11.In section 316 (Parliamentary control of subordinate legislation), in subsection Further provision relating to pension schemes: Northern Ireland, PART 1 Funding of defined benefit schemes, 1.Amendments of Part 4 of the Pensions (Northern Ireland) Order 2005. Sponsors of DB pension schemes . In Article 88(2) (regulatory functions of the Pensions Regulator). Pension Schemes Act 2021 UK Public General Acts 2021 c. 1 Table of contents Table of Contents Content Explanatory Notes More Resources Plain View Print Options What Version Latest available. 1995/3213 (N.I. 21. Transfer to the First Capital Connect train service to City Thameslink station and walk fromLudgate Hill (10 minutes to Gresham Street). 131. 14. 15. (1) Section 181(1) (general interpretation) is amended as follows. 200 provisions and might take some time to download. (1) Section 176(1) (general interpretation) is amended as follows. We have set out a brief summary of the implications of the Act. (2)In section 95 (ways of taking right to cash equivalent), after subsection (6) insert. (1) Article 288 (Assembly etc. Please see www.pwc.com/structure for further details. 2005/255 (N.I. The Pension Schemes Act 2017 is amended as follows. In Article 85 (codes of practice), in paragraph (2). Businesses dealing with defined benefit pension schemes face a changed world of regulation with the new Pension Schemes Act 2021 having cleared all Parliamentary stages and to receive royal. We use necessary cookies to make our website work. (1) Section 181(1) (general interpretation) is amended as follows. 3. Revised legislation carried on this site may not be fully up to date. These protections form part of a suite of measures designed to protect consumers from scams. The existing notifiable events regime is changing. Pension Schemes Act 2021: key points by Practical Law Pensions This practice note contains an overview of the key provisions of the Pension Schemes Act 2021 (including their progress as debated in Parliament) through to Royal Assent on 11 February 2021. Your browser currently has javascript disabled. long time to run. Pensions (Northern Ireland) Order 2005 (S.I. (1) Section 76 (inspection of premises: supplementary) is amended as 6.In section 78 (warrants), in subsection (1)(c)(iii). 1)). Simon Kew gauges how businesses should respond to the changes. Crucially, the member may also be required to provide the trustees with evidence that they have obtained information or guidance from a prescribed person before a transfer is allowed to proceed. All rights reserved. 2015 Regulations may make provision requiring the trustees or managers of a pension scheme to notify a member who makes an application under subsection (1) of conditions prescribed under subsection, In section 98 (loss of right to cash equivalent), in subsection (2), for 99(2A) substitute 99, In section 99 (trustees duties after exercise of option), after subsection (2) insert, Subsection (2) does not apply if the trustees or managers have been unable to carry out what the member requires because a condition prescribed by regulations under section 95, the member was required by section 96(4) to give a transfer notice under section 101F(1) in addition to making an application, and, the trustees or managers have been unable to carry out what the member required in the transfer notice under section 101F(1) because a condition prescribed by regulations under section 101F, In section 101F (power to give transfer notice), after subsection (5) insert. (1) Article 71 (inspection of premises: supplementary) is amended as 20.In Article 73 (warrants), in paragraph (1)(c)(iii). The Pension Schemes Act 1993 is amended as follows. 11. 200 provisions and might take some time to download. Take the Victoria Line to Oxford Circus, then the Central Line to St. Pauls. Take the Northern Line (City Branch) to Moorgate (four stops). 22)), 16.Pensions (Northern Ireland) Order 2005 (S.I. In section 40 (fixed penalty notices), in subsection (1), In section 41 (escalating penalty notices), in subsection (1). 2005/255 (N.I. 5. This strategy will need to be agreed this with the sponsor. The Act adds additional restrictions to a member's statutory right to transfer their benefits to another pension scheme. the member is not subject to such a prescribed condition. Over 80 pension. 5. Different options to open legislation in order to view more content on screen at once. 25. Breach of the new events (or failure to provide an accompanying statement) without reasonable excuse will be punishable by a civil penalty of up to 1 million. 11.The Pensions (Northern Ireland) Order 2005 is amended as follows. 12.In Article 2 (general interpretation), in paragraph (4), 13.In Article 9 (improvement notices), in paragraph (7). 6. Changes we have not yet applied to the text, can be found in the Changes to Legislation area. 4. Continue on Cheapside until you get to the crossroads with the traffic lights, and turn right into King Street. Amendments of Part 4 of the Pensions (Northern Ireland) Order 2005. Pension Schemes Act 2021 the dawn of a new regulatory era? Poultry turns into Cheapside. 2020 to 2021 funding level as per the Care Act 2014 Impact Assessment. Get the latest independent commentary and exclusive insights from a range of experts at the forefront of pensions, investment, risk and insurance tailored to your preference. Trustee and pensions providers will be required to provide certain specified information to the dashboards. (1) Schedule 18 (power to restrict charges or impose requirements Money purchase benefits: Northern Ireland, 2.Pension Schemes (Northern Ireland) Act 1993 (c. 49). The table of allocations for 12 million in 2021 to 2022 is in annex B. (1) Section 181(1) (general interpretation) is amended as follows. Details of the new notifiable events will be set out in regulations but are expected to include: Notifications to TPR will generally need to be made as soon as reasonably practicable after the sponsoring employer becomes aware of the event. Plan your retirement income: step by step. control of orders and regulations) 27.In Schedule 1 (the Pensions Regulator), in Part 1 (delegation), 28.In Schedule 2 (the reserved regulatory functions), after paragraph 41 29.The Pensions (No. 25. 3. The Whole Which schemes are in scope of these governance and disclosure requirements? The new regime is intended to deter employers who seek to avoid their DB pension scheme obligations. As an alternative to the criminal sanctions outlined above, TPR will have power to impose a civil penalty of up to 1 million. England, Wales, Scotland and Northern Ireland); Show Timeline of Changes (1) Section 84 (basis of revaluation of accrued benefits) is 3.In section 101AI (right to cash transfer sum and contribution 4.In section 186 (Parliamentary control of orders and regulations), in 5.In Schedule 3 (methods of revaluing accrued pension benefits), in 6.The Pensions Act 1995 is amended as follows. Take the Circle, Hammersmith & City or Metropolitan Line eastbound to Moorgate (three stops). (1) Article 75 (offences of providing false or misleading information) 22.In Article 85 (codes of practice), in paragraph (2). At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. 11. Changes we have not yet applied to the text, can be found in the Changes to Legislation area. All rights reserved. (1) Section 93(2) (regulatory functions of the Pensions Regulator) is 15.In section 97(5) (special procedure: applicable cases), after paragraph (tf) 16.In section 126 (schemes eligible for pension protection), after subsection 17.In section 249A (requirement for an effective system of governance), 18.In section 254 (representative of non-European scheme to be treated 19.In section 291 (duty of trustees or managers to act 20.In section 318 (general interpretation), in subsection (3). (ii)the member is not subject to such a prescribed condition. (1) Section 181(1) (general interpretation) is amended as follows. Much of the detail behind the new measures will be set out in draft Government regulations and related guidance from the Pensions Regulator (TPR) yet to be published. 9. control of orders and regulations) 27.In Schedule 1 (the Pensions Regulator), in Part 1 (delegation), 28.In Schedule 2 (the reserved regulatory functions), after paragraph 41 29.Pensions (No. Expansion of the circumstances where TPR can require payments to defined benefit schemes. Here we look at what is coming in and when and the most immediate practical issues for defined benefit pension scheme sponsors and trustees. This website uses cookies to improve your experience. 5. (1) Section 231 (powers of the Regulator) is amended as 8.The Pensions Act 2004 is amended as follows. New climate change governance and reporting requirements are being placed on the largest schemes. Whilst rejected, following a last-gasp challenge in the Lords, important Government assurances were secured. Live andvirtualevents, designed to bring you the insightsyou need whenmaking informed strategic decisions across risk, pensions, investment and insurance. After 150 yards turn right into Gresham Street. 8. The Pension Schemes Act 2021 came into force on 11 February 2021. Financial economics and regulatory finance, Environmental and sustainable legal advice, Pensions employer covenant and restructuring, Managing your personal and business wealth, Environmental, Social and Governance (ESG), Human rights and Modern Slavery Statement, Sale of a group company or part of its business, Transferring a material part of the balance sheet to another group entity, Raising additional finance ranking ahead of a DB Scheme, Payment of material dividends, special dividends or share buybacks. The PSA 21 is an important and wide-ranging piece of pensions legislation that will have a material impact for trustees of occupational pension schemes. How much you could get and when. Dependent on the legislation item being viewed this may include: This timeline shows the different points in time where a change occurred. (1) Article 203 (actuarial valuations and reports) is amended as 5.In Article 205 (recovery plan), after paragraph (3) insert. The Pension Schemes Act 2021 covers a broad range of issues - below, we've summarised the key changes impacting those saving for retirement. incorporate PSA 21 considerations into their governance; understand the impact of corporate activity on the ability of business to fund their DB Schemes; and. 19. There are currently no known outstanding effects for the Pension Schemes Act 2021. The Pension Schemes Act 2021 (PSA 2021) passed into law in February 2021. We have advised the Pensions Dashboard Programme on the data requirements and standards - you can download our report on the PDP website. This statement must be signed by the chair of trustees, provided he or she meets such other conditions as may be prescribed. The Whole 14. the members employment or place of residence; providing the trustees or managers with information or evidence about the members employment or place of residence; the member obtaining information or guidance about exercising the option conferred by subsection (1) from a prescribed person in a prescribed case; providing the trustees or managers with evidence that, the member has complied with a prescribed condition about obtaining such information or guidance from a prescribed person, or. The Pensions (No. Dependent on the legislation item being viewed this may include: Click 'View More' or select 'More Resources' tab for additional information including: All content is available under the Open Government Licence v3.0 except where otherwise stated. To avoid scrutiny and sanctions, company directors and trustees need to demonstrate that they have taken the right steps to: There is no single approach to managing risks arising out of PSA 21. Several years in the making, the Pension Schemes Act ("the Act") finally received Royal Assent on 11 February 2021. Watch as our experts unpack, unwind and unfurl the recent market turmoil, providing you with fresh perspectives on the challenges ahead. Powers in relation to sponsoring employers are broadened with: We take a look below about what we know so far. At the end of Moorgate, turn right on to Gresham Street. The closest car park to the office is NCP Aldersgate Street Car Park, EC1A 4HY. The trustees or managers of the scheme may not use the cash equivalent in a way specified in subsection (2)(a), (b) or (d), (2A)(a), (b) or (d) or (3) unless prescribed conditions are satisfied. As well as support with Regulatory and stakeholder engagement. may also experience some issues with your browser, such as an alert box that a script is taking a The Whole Act you have selected contains over 200 provisions and might take some time to download. DB Scheme sponsors, their wider groups (including individual directors and advisers) and trustees of schemes impacted by relevant corporate activity. We don't yet know exact dates on which the new measures will take effect, but recent statements by the pensions minister do give us some idea. 20 Gresham Street is on the corner and we are on the sixth floor. Imposing liability in relation to the criminal sanctions and civil penalties outlined above may come down to whether the person had the requisite intent or knowledge (as appropriate), and whether they had a reasonable excuse (in the case of the criminal sanctions) or it was reasonable for the person to act (or fail to act) in the way that he/she did (in relation to the civil penalties). 1995/3213 (N.I. Pension Schemes Act 2021: Impact on M&A. 23. 6. A Contribution Notice is a formal legal demand from TPR to make a cash payment to the DB pension scheme and can be imposed on the sponsor, company director, shareholder or connected party. In section 226 (recovery plan), after subsection (3) insert. 19. Read our summary of the key clauses contained inThe Pension Schemes Act 2021. Collective money purchase benefits: minor and consequential amendments for Northern Ireland. But a judgment on the operation of s.37 of the Pension Schemes Act 1993 (the 1993 Act) and Regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (SI 1996/1172) (the Regulations), and whether a scheme needs written actuarial confirmation that it continues to satisfy the statutory standards for contracting-out . 20 Gresham Street Pensions (No. (5B)The conditions that may be prescribed by regulations under subsection (5A) include (but are not limited to) conditions about. 7. (1) A pause order must specify the period for which Validation of action in contravention of pause order. Different options to open legislation in order to view more content on screen at once. Climate change is shifting the risk landscape for companies, bringing with it a complex set of challenges and opportunities. A licensed taxi service operates from City airport. The schemes technical provisions under the statutory funding regime will need to be calculated in a way that is consistent with this strategy. long time to run. 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run. 26. You Stay ahead with our latest comment, expert insight and event notifications, Family offices, endowments and foundations, Actuarial, benefits and governance consultancy, Actuarial and risk management (life insurers), Actuarial and risk management (non-life insurers), The Pension Schemes Act 2021: a summary of the key clauses, Requiring pension schemes to report on how they manage the. Financial economics and regulatory finance, Environmental and sustainable legal advice, Pensions employer covenant and restructuring, Managing your personal and business wealth, Environmental, Social and Governance (ESG), 10 things you need to know about the new Funding Code, practical guide to the Pensions Dashboard, Human rights and Modern Slavery Statement, 1 October 2021 (new TPR notification requirements Q1/2 2022), Autumn 2021 (consultation closed 10 June 2021), October 2021 (consultation closed 31 August 2021). Head out of St. Pauls Underground station and walk north onto St. Martins Le Grand, past Tesco (on your right). In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). Pension Schemes Act 2021. Delay (defer) your State Pension. View our full Privacy Notice which explains how we process your personal data. The War Pensions Scheme Disregard grant will be paid as a Department of Health and Social Care section 31 grant. Earlier today we reported on a 3.5% fall in house prices with further cuts predicted, in part because sellers are struggling to shift their houses at asking price as buyers face increasing . Act you have selected contains over 12. 25. 1. We offer bespoke solutions for clients. The Pensions Act 1995 is amended as follows. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run. These powers include a new range of criminal and civil offences and employers . Sacker & Partners LLP The Pension Schemes Act 2021 (the PSA 21) has finally reached the statute books. This is the case whether the amendment is adverse or beneficial, and whether it affects rights in respect of past service or not. In section 318 (general interpretation), in subsection (3). Advanced Search (including Welsh legislation in Welsh language), Collective money purchase benefits and schemes, Amendment of definitions of money purchase benefits etc, Authorisation of collective money purchase schemes, Reference to Tribunal of refusal to grant authorisation, Certificate that actuarial valuation prepared in accordance with scheme rules, Duty to notify the Pensions Regulator of significant events, When a decision to withdraw authorisation becomes final, Continuity option 1: discharge of liabilities and winding up, Continuity option 2: resolving triggering event, Continuity option 3: conversion to closed scheme, Trustees duties once implementation strategy approved, Prohibition on winding up except in accordance with continuity option 1, Prohibition on increasing charges etc during triggering event period, Powers to extend definition of qualifying schemes, Grounds for issuing a section 38 contribution notice, Reasonableness of issuing a contribution notice, Determination of sum specified in a contribution notice, Sanctions for failure to comply with a contribution notice, Duty to notify the Regulator of certain events, Duty to give notices and statements to the Regulator in respect of certain events, Fixed penalty notices and escalating penalty notices, Provision of false or misleading information to Regulator, Provision of false or misleading information to trustees or managers, Information from occupational pension schemes, Information from personal and stakeholder pension schemes, The Money and Pensions Service: the pensions guidance function, Modification of provisions relating to pensionable service. (1) Section 93(2) (regulatory functions of the Pensions Regulator) is 15.In section 97(5) (special procedure: applicable cases), after paragraph (tf) 16.In section 126 (schemes eligible for pension protection), after subsection 17.In section 249A (requirement for an effective system of governance), 18.In section 254 (representative of non-European scheme to be treated 19.In section 291 (duty of trustees or managers to act 20.In section 318 (general interpretation), in subsection (3). The data we collect is anonymised. The Pension Schemes Act 1993 is amended as follows. Key Regulatory Bodies. It also gives us new powers to protect pension scheme members and the Pension Protection Fund. 7.3 The Assembly passed the Budget Act (Northern Ireland) 2021 in March 2021, which authorised the cash and use of resources for all departments for the 2020-21 year, based . may also experience some issues with your browser, such as an alert box that a script is taking a Act you have selected contains over The Pension Schemes Act 2021 is about to become law. 2005/255 (N.I. 19. Clearly, much of the detail in the Act remains to be fleshed out in regulations. 18.The Pension Schemes Act 2017 is amended as follows. 13. Different options to open legislation in order to view more content on screen at once. - 2023 PwC. long time to run. (1) Section 31 of the Pensions (No. The War Pensions Scheme Disregard grant will be paid as a Department of Health and Social Care section 31 grant. 2005/255 (N.I. Trustees will also be required to publish information of a prescribed description relating to the effects of climate change on their scheme. Trustees of DB schemes will be required to report on this strategy to the Pensions Regulator (TPR) in a new statement of strategy (sometimes referred to as a "Chair's statement"). The Pension Schemes (Northern Ireland) Act 1993 is amended as (1) Section 176(1) (general interpretation) is amended as follows. New regulations in force on 30 November 2021 set out two conditions, one of which must be met before a statutory transfer can be made.. Your browser is out of date, and unable to use many of the features of this website. 7. Pension scheme liabilities accrue over employees' periods of service and are discharged over the period of retirement and, where applicable, the period for which a . (1) Section 80 (basis of revaluation of accrued benefits) is 3.In section 97AI (right to cash transfer sum and contribution 4.In section 181 (Assembly, etc. 4. We support clients by carrying out legal and financial analysis to assess the expected impact of activity and support in developing and implementing a strategy for managing this. Displays relevant parts of the explanatory notes interweaved within the legislation content. (1) Section 99 (interpretation of Part 1: pension scheme membership 7.In section 99A(1) (money purchase benefits: supplementary), for the definition 3.Validation of action in contravention of pause order, 4.Notification of trustees, employers and members, Collective money purchase benefits: minor and consequential amendments. the member obtaining information or guidance about exercising the right under subsection (1) from a prescribed person in a prescribed case; Regulations may make provision requiring the trustees or managers of a qualifying scheme to notify an eligible member who gives a transfer notice of conditions prescribed under subsection, In section 101J (time for compliance with transfer notice), after subsection (2A) insert, Subsection (1) does not apply if the trustees or managers have been unable to carry out what the member requires because a condition prescribed by regulations under section 101F, the member was required by section 101G(4) to make an application under section 95(1) in addition to giving a transfer notice, and, the trustees or managers have been unable to carry out what the member required in the application under section 95(1) because a condition prescribed by regulations under section 95, Advanced Search (including Welsh legislation in Welsh language), the original print PDF of the as enacted version that was used for the print copy, lists of changes made by and/or affecting this legislation item, confers power and blanket amendment details, links to related legislation and further information resources. Key elements of the new Act include beefing up TPR's powers, changes in relation to scheme funding, and new restrictions on statutory transfers. With much of the detail to be set out in regulations, including the dates on which most of the provisions will come into force, the Act will introduce: A raft of new offences, both criminal and civil, as well as extended information-gathering and new interviewing powers, will go some way to helping TPR fulfil its clearer, quicker, and tougher mantra. For details on how to pay the congestion charge visitwww.cclondon.comor call 0845 900 1234. Shifting the onus so that trustees cannot make a statutory transfer unless prescribed requirements are met should go some way to reducing the possibility of members falling victim to scams. 2005/255 (N.I. (1) Section 80 (offences of providing false or misleading information) 8.In section 90 (codes of practice), in subsection (2). Its arrival grabbed headlines, with many commentators focusing on the new criminal offences and civil penalties. (1) In Article 34 (contribution notices where avoidance of employer Reasonableness of issuing contribution notice. 2. No changes have been applied to the text. The conditions that may be prescribed by regulations under subsection, include (but are not limited to) conditions about. Reviewing the exposure of the scheme to such risks; Developing a strategy for managing the risks; Measuring performance against those targets; Publishing certain information relating to the effects of climate change. This site additionally contains content derived from EUR-Lex, reused under the terms of the Commission Decision 2011/833/EU on the reuse of documents from the EU institutions. Transfer rights: exercise of right to cash equivalent, The Pension Protection Fund: modification of provisions relating to pensionable service, Categories of pension schemes: repeal of provisions of Pension Schemes Act (Northern Ireland) 2016, the original print PDF of the as enacted version that was used for the print copy, lists of changes made by and/or affecting this legislation item, confers power and blanket amendment details, links to related legislation and further information resources. 7. You can hear our reflections on how the Pension Schemes Act 2021 is working in practice here. (1) Section 18 (escalating penalty notice for failure to comply PART 1 Amendments of the Pensions (Northern Ireland) Order 2005. 3. Secretary of State for Work and Pensions v Beattie and others (Employment Appeal Tribunal) 27 October 2022 More. (a)the members employment or place of residence; (b)providing the trustees or managers with information or evidence about the members employment or place of residence; (c)the member obtaining information or guidance about exercising the option conferred by subsection (1) from a prescribed person in a prescribed case; (d)providing the trustees or managers with evidence that, (i)the member has complied with a prescribed condition about obtaining such information or guidance from a prescribed person, or. 9.In section 60 (registrable information), in subsection (2), after paragraph 10.In section 80 (offences of providing false or misleading information), 11.In section 316 (Parliamentary control of subordinate legislation), in subsection Further provision relating to pension schemes: Northern Ireland, PART 1 Funding of defined benefit schemes, Amendments of Part 4 of the Pensions (Northern Ireland) Order 2005. 1995/3213 (N.I. 13. (1) Article 35 (the sum specified in an Article 34 Sanctions for failure to comply with a contribution notice. Among a raft of changes introduced to UK pensions law, the most eye-catching are the expansion of The Pensions Regulator's so-called "Moral Hazard" powers. (1) Section 176(1) (general interpretation) is amended as follows. Fixed penalty notices and escalating penalty notices. 16.In Article 92(5) (special procedure: applicable cases), after sub-paragraph (ta) 17.In Article 110 (schemes eligible for pension protection), after paragraph 18.In Article 226A (requirement for an effective system of governance), 19.In Article 231 (representative of non-European scheme to be treated 20.In Article 267 (duty of trustees or managers to act 21.In Schedule 2 (the reserved regulatory functions), after Part 4 22.Pensions (No. 1. Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. 20. In the Pension Schemes Act (Northern Ireland) 2016 (c. 1 the original print PDF of the as enacted version that was used for the print copy, lists of changes made by and/or affecting this legislation item, confers power and blanket amendment details, links to related legislation and further information resources. (1) In Schedule 1 (the Pensions Regulator), in Part 4 14.In Schedule 2 (the reserved regulatory functions), after paragraph 41 16.In section 40 (fixed penalty notices), in subsection (1), 17.In section 41 (escalating penalty notices), in subsection (1). (1) In Schedule 1 (the Pensions Regulator), in Part 4 14.In Schedule 2 (the reserved regulatory functions), after paragraph 41 15.The Pensions Act 2008 is amended as follows. The Pension Schemes Act puts onto the statute book a tougher regulatory regime for DB pension provision from the corporate perspective.