The Pensions Regulator

Key elements - what the code covers

• Which schemes and types of modification the legislation applies to
• Trustees' duties and responsibilities in respect of:
  • communicating proposed scheme modifications to affected members;
  • the consent requirements;
  • the actuarial equivalence requirements;
  • the trustee approval requirement; and
  • the reporting requirement
• The Pensions Regulator's views as to what constitute 'reasonable periods' as set out in sections 67 to 67I of the legislation
• The Pensions Regulator's powers to intervene and power to declare a modification void

Who do the provisions apply to?

They apply to any person with power under scheme rules to modify a scheme. They apply to most private sector occupational pension schemes, but not to public service schemes.

Who else needs to be involved?

The sponsoring employer, who will often propose scheme modifications and may have power under the scheme rules to make them, will need to be closely involved.

The scheme actuary will be involved, for example, in valuing existing subsisting rights and evaluating the effect of any proposed modification on affected members' accrued rights, providing actuarial equivalence statements where the actuarial equivalence route is followed, providing illustrations of the effects of proposed modifications upon member benefits, and evaluating the effect of any changes to proposed modifications.