Your browser is out of date, and unable to use many of the features of this website. We offer bespoke solutions for clients. All rights reserved. Check your State Pension age. Whilst a number of the new requirements may take a year or more to come into effect, the direction of travel is already impacting on corporate, trustee and regulator behaviour, and this will accelerate over 2021. A robust governance framework will be key to mitigate the risks. If you would like to be added to the Sackers mailing list, please provide the following information: If you are already subscribed to our mailing lists and would like to unsubscribe completely or from specific publications, please contact us at mailinglist@sackers.com. 5. In section 181 (Assembly, etc. 2005/255 (N.I. (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. Employer agreement to the strategy, as set out in the schemes statement of strategy, must be obtained. (1) Article 71 (inspection of premises: supplementary) is amended as 20.In Article 73 (warrants), in paragraph (1)(c)(iii). 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. The Pension Schemes Act 2021 (Commencement No. The Pension Schemes Act 2021 | Lane Clark & Peacock LLP Pensions (Northern Ireland) Order 1995 (S.I. In Article 85 (codes of practice), in paragraph (2). Revised legislation carried on this site may not be fully up to date. may also experience some issues with your browser, such as an alert box that a script is taking a "(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1 (2) (b) of that Act) is to be treated for the purposes of . The Pensions Act 2004 is amended as follows. Whilst rejected, following a last-gasp challenge in the Lords, important Government assurances were secured. The Pension Schemes Act 2021 (PSA 2021) creates a new requirement for trustees of defined benefit (DB) schemes to have a scheme-specific funding and investment strategy. 10. There are currently no known outstanding effects for the Pension Schemes Act 2021. The Pension Schemes Act 2021 introduces two new Contribution Notice tests. 7. may also experience some issues with your browser, such as an alert box that a script is taking a (1) Article 85 (codes of practice) is amended as follows. 15.In Article 88(2) (regulatory functions of the Pensions Regulator). The Pension Schemes Act 2021 (the PSA 21) has finally reached the statute books. For more information see the EUR-Lex public statement on re-use. (c)the member obtaining information or guidance about exercising the right under subsection (1) from a prescribed person in a prescribed case; (5C)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 (5A)., (7)In section 101J (time for compliance with transfer notice), after subsection (2A) insert, (2AA)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(5A) has not been satisfied., (8)In section 101J, after subsection (2AA) (inserted by subsection (7)), (a)the member was required by section 101G(4) to make an application under section 95(1) in addition to giving a transfer notice, and, (b)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(6ZA) has not been satisfied.. 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. PART 1 Collective money purchase benefits, 1.Collective money purchase benefits and schemes, 6.Amendment of definitions of money purchase benefits etc, 7.Authorisation of collective money purchase schemes, 10.Reference to Tribunal of refusal to grant authorisation, 21.Certificate that actuarial valuation prepared in accordance with scheme rules, 27.Requirement to submit supervisory return, 28.Duty to notify the Pensions Regulator of significant events, 35.When a decision to withdraw authorisation becomes final, 36.Continuity option 1: discharge of liabilities and winding up, 37.Continuity option 2: resolving triggering event, 38.Continuity option 3: conversion to closed scheme, 41.Trustees' duties once implementation strategy approved, 42.Prohibition on winding up except in accordance with continuity option 1, 45.Prohibition on increasing charges etc during triggering event period, 47.Powers to extend definition of qualifying schemes, PART 2 Collective money purchase benefits: Northern Ireland, 52.Collective money purchase benefits and schemes, 57.Amendment of definitions of money purchase benefits etc, 58.Authorisation of collective money purchase schemes, 61.Reference to Tribunal of refusal to grant authorisation, 72.Certificate that actuarial valuation prepared in accordance with scheme rules, 78.Requirement to submit supervisory return, 79.Duty to notify the Pensions Regulator of significant events, 86.When a decision to withdraw authorisation becomes final, 87.Continuity option 1: discharge of liabilities and winding up, 88.Continuity option 2: resolving triggering event, 89.Continuity option 3: conversion to closed scheme, 92.Trustees' duties once implementation strategy approved, 93.Prohibition on winding up except in accordance with continuity option 1, 96.Prohibition on increasing charges etc during triggering event period, 98.Powers to extend definition of qualifying schemes, Contribution notices where avoidance of employer debt etc, 103.Grounds for issuing a section 38 contribution notice, 104.Reasonableness of issuing a contribution notice, 105.Determination of sum specified in a contribution notice, 106.Sanctions for failure to comply with a contribution notice, Sanctions for avoidance of employer debt etc, 107.Sanctions for avoidance of employer debt etc, 108.Duty to notify the Regulator of certain events, 109.Duty to give notices and statements to the Regulator in respect of certain events, 112.Fixed penalty notices and escalating penalty notices, Provision of false or misleading information, 113.Provision of false or misleading information to Regulator, 114.Provision of false or misleading information to trustees or managers, 117.The Pensions Regulator: Northern Ireland, 118.Qualifying pensions dashboard service, 119.Information from occupational pension schemes, 120.Pensions dashboards: Northern Ireland, 121.Information from personal and stakeholder pension schemes, 122.The Money and Pensions Service: the pensions guidance function, PART 5 Further provision relating to pension schemes, 126.Modification of provisions relating to pensionable service, 129.Further provision relating to pension schemes: Northern Ireland. We take a look below about what we know so far. This includes training, governance reviews, and specific legal, actuarial and covenant advice in relation to matters which may attract regulatory scrutiny. 2005/255 (N.I. (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 theCentral line to St. Pauls (two stops). (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. (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. 9 In section 87 (schedules of payments to money purchase schemes), after subsection (1) insert. The Pension Schemes Act 2021 came into force on 11 February 2021. Show Geographical Extent (e.g. Adult personal social services: specific revenue funding and grant may also experience some issues with your browser, such as an alert box that a script is taking a Live andvirtualevents, designed to bring you the insightsyou need whenmaking informed strategic decisions across risk, pensions, investment and insurance. Pension Schemes Act 2021 - Legislation.gov.uk The Pension Schemes Act 2021 (the PSA 21) paves the way for wide ranging obligations on trustees in relation to climate change governance and reporting. 26. It is. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.)). 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. 5. The first date in the timeline will usually be the earliest date when the provision came into force. (1) Section 80 (offences of providing false or misleading information) 8.In section 90 (codes of practice), in subsection (2). 25. In section 99A(1) (money purchase benefits: supplementary), for the definition Validation of action in contravention of pause order, Notification of trustees, employers and members. In section 40 (fixed penalty notices), in subsection (1), In section 41 (escalating penalty notices), in subsection (1). In Article 73 (warrants), in paragraph (1)(c)(iii). PDF The Pension Schemes Act 2021: New risks for not for profits (NFPs) The new Pension Schemes Act gives the Pensions Regulator increased power to prosecute on behalf of scheme members who have been left shortchanged by the actions of a variety of people involved in a business. 9. In Article 2 (general interpretation), in paragraph (4), In Article 9 (improvement notices), in paragraph (7). 26. (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). 8. Take the Victoria Line to Oxford Circus, then the Central Line to St. Pauls. Sponsoring employers must also be consulted on the following issues: During the Acts passage through Parliament, the House of Lords tried to introduce a requirement for open DB schemes to be regulated differently for scheme funding purposes. 22)), 16.Pensions (Northern Ireland) Order 2005 (S.I. )), 23.Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.)). Pension Schemes Act 2021 How is it working in practice? The Retirement Benefits Levy. 14. No versions before this date are available. Walk in the direction of London Wall. 1)), In Article 2 (general interpretation), in paragraph (4), In Article 9 (improvement notices), in paragraph (7). Here we look at what is coming in and when and the most immediate practical issues for defined benefit pension scheme sponsors and trustees. 9. More details on the requirements and wider context and approaches. 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. The Whole A new platform which allows individuals to aid their retirement planning by viewing all their pension information in a single place including state pensions. 2015 25. The Schedules you have selected contains over 200 provisions and might take some time to download. 200 provisions and might take some time to download. 6. Pension Schemes Act 2021: Impact on M&A. Events that are likely to adversely affect or materially reduce the financial resources of a business supporting a defined benefit pension scheme (DB Scheme) need . Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. In Article 233 (no indemnification for fines or civil penalties), (1) Article 282 (admissibility of statements) is amended as follows. (1) Article 288 (Assembly etc. In Article 75 (offences of providing false or misleading information), (1) The Pensions (Northern Ireland) Order 1995 (S.I. Sponsors of DB pension schemes . But quite how the Government will implement it as corporate Britain struggles with the economic consequences of the lengthy Covid-19 pandemic and any Brexit-related downturn remains to be seen. 2. ThePension Schemes Act 2021 will make significant changes to the legal and regulatory landscape in the UK in a wide range of areas. Simon Kew gauges how businesses should respond to the changes. (1) Schedule 18 (power to restrict charges or impose requirements Money purchase benefits: Northern Ireland, 2.Pension Schemes (Northern Ireland) Act 1993 (c. 49). We have advised the Pensions Dashboard Programme on the data requirements and standards - you can download our report on the PDP website. Further consultations are also expected later in the year in relation to other clauses in the legislation, including the key provisions relating to the below. The Whole Act you have selected contains over 200 provisions and might take some time to download. Issued: Thursday 11 February 2021 The Pensions Regulator's (TPR's) Chief Executive, Charles Counsell, welcomed the Pension Schemes Bill receiving its Royal Assent. Pension Schemes Act 2021 - 1 October changes | Gowling WLG Please see www.pwc.com/structure for further details. (1) In Article 34 (contribution notices where avoidance of employer Reasonableness of issuing contribution notice. 25. 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). Since the introduction of The Pension Schemes Act 2021 (PSA 21) we are seeing greater oversight and scrutiny over scheme governance and corporate activity. In Article 233 (no indemnification for fines or civil penalties), (1) Article 282 (admissibility of statements) is amended as follows. (1) Article 288 (Assembly etc. Act you have selected contains over PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. The Pension Schemes Act 2021: Which measures come into force when? In section 318 (general interpretation), in subsection (3). (1) Section 18 (escalating penalty notice for failure to comply PART 1 Amendments of the Pensions (Northern Ireland) Order 2005. Take theCentral line to St. Pauls (two stops). 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. 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. The Pension Schemes Act 2021: New risks for not for profits (NFPs Our practical guide to the Pensions Dashboard. Watch our series of conversations with the Pensions Regulator. incorporate PSA 21 considerations into their governance; understand the impact of corporate activity on the ability of business to fund their DB Schemes; and. To help people understand these new duties and powers we have published: Other Pension Schemes Act publications expected in the coming months include: Your email address will only be used to reply to your comment. 9. 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. (1) Section 231 (powers of the Regulator) is amended as 8.The Pensions Act 2004 is amended as follows. Its arrival grabbed headlines, with many commentators focusing on the new criminal offences and civil penalties. It also provides the framework for further change through the implementation of secondary legislation. Pension Schemes Act 2021 - Legislation.gov.uk the sale of a material proportion of the business or assets of a sponsoring employer which has funding responsibility for at least 20% of a DB schemes liabilities, and, the granting of security on a debt to give it priority over a DB scheme (see our, the employer insolvency test broadly, this will be met if TPR considers that at the time of an act or failure to act a scheme was in deficit and, had a statutory employer debt fallen due (under section 75 of PA95), this act or failure to act would have materially reduced the amount of the debt likely to be recovered, and. The Pensions Regulator welcomes the Pension Schemes Bill receiving Pensions (Northern Ireland) Order 1995 (S.I. Cost of living - latest updates: Huge drop in UK house - Sky News 5. Categories of pension schemes: repeal of provisions of Pension Schemes Act (Northern Ireland) 2016. Pension Schemes Act 2021 | The Pensions Regulator the extent to which, in the trustees opinion, the strategy is being successfully implemented and, where it is not, the steps proposed to remedy the position, including details about timing, the main risks faced by the scheme in implementing the strategy, and how the trustees intend to mitigate or manage them, and. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run. 131. (1) Article 71 (inspection of premises: supplementary) is amended as 20.In Article 73 (warrants), in paragraph (1)(c)(iii). For more information see the EUR-Lex public statement on re-use. 200 provisions and might take some time to download. conduct risking accrued scheme benefits punishable by an unlimited fine and/or up to seven years in prison. It also gives us new powers to protect pension scheme members and the Pension. The Schedules you have selected contains over 200 provisions and might take some time to download. 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. Pension Schemes Act 2021 - CMS UK 200 provisions and might take some time to download. 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. Although most of the provisions are not yet in force, they are expected to come into effect over the course of the next year, once secondary legislation has been passed. 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. The first condition is that the transfer is to a prescribed low-risk scheme - these include public sector schemes and authorised master . We have developed governance frameworks and tools to support our clients in reviewing and updating their governance procedures and to help trustees understand the impact of the new regime on their sponsors.