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The Pensions Regulator

Codes of practice

Codes of practice

Code of practice 10
Modification of subsisting rights

Terms used in this code

  1. In this code legislative requirements are indicated by 'must' and code guidelines by 'should'.
  2. Throughout this code (and its footnotes), unless stated otherwise, all references to:
    • 'schemes' are to occupational pension schemes;5
    • 'sections' are to those of the Pensions Act 1995;
    • 'regulations' are to those of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006 (SI 2006/759); and
    • 'trustees' are to the trustees of an occupational pension scheme.

Sections 67 to 67I of the Pensions Act 1995

  1. The provisions of sections 67 to 67I do not apply to public service schemes6, or schemes with fewer than two members, or a scheme which is not registered for the purposes of Part 4 of the Finance Act 2004.7
  2. Likewise modifications for a purpose connected with debits in respect of pension sharing orders8 and other prescribed modifications9 are themselves exempt.
  3. This code has no effect where the legislation does not apply.

To whom does this code of practice apply?

  1. It applies to anyone seeking to modify an occupational pension scheme, and to the trustees of such a scheme. It will also be of relevance to employers sponsoring such schemes, particularly if they have powers under the scheme documents to modify the scheme, to all advisers to pension schemes, and to administrators and practitioners in general.

Other relevant codes

  1. Code of practice No 3 - Funding defined benefits sets out what is expected of trustees of schemes subject to the scheme funding provisions of Part 3 of the Pensions Act 2004. Changes to scheme benefits are likely to have funding implications where a scheme is subject to Part 3.
  2. Code of practice No 1 - Reporting breaches of the law sets out what is expected of trustees (and others) in reporting matters of material significance to the regulator.
  3. Code of practice No 7 - Trustee knowledge and understanding will be relevant as it refers to the trustees having to be aware of their scheme documents, including the powers of amendment.

Northern Ireland

In this code of practice references to the law that apply in Great Britain should be taken to include corresponding legislation in Northern Ireland. The annex to this code lists the corresponding references.

5 See section 1 of the Pension Schemes Act 1993 as amended by the Pensions Act 2004
6 Section 67(1)(a)
7 Section 67(1)(b) and the Occupational Pension Schemes (Modification of Schemes) Regulations 2006, Regulation 2
8 Section 67(3)(a)
9 The Occupational Pension Schemes (Modification of Schemes) Regulations 2006, Regulation 3