Section 68: Sex equality rule: consequential alteration of schemes
Effect
232.This section gives trustees and managers of an occupational pension scheme the power, by resolution, to alter scheme rules to conform to the sex equality rule in section 67.
233.They may use the power if:
they lack the power to alter rules; or
procedures for altering rules, including obtaining consent from another person (for example the employer), are unduly complex or would take too long.
234.In line with section 67, where the operation of an equality rule relates to the terms on which a person becomes a member of the scheme, any alteration made relying on this section may only have effect from 8 April 1976. Where the alteration relates to a term on which a member of the scheme is treated, reliance on this section may have effect only from 17 May 1990.
Background
235.The section replaces equivalent equal treatment provisions in section 65 of the Pensions Act 1995.
Example
The scheme rules of a large scheme require consultation with all the members before an amendment to the rules may be made. This is impracticable, particularly as some deferred members cannot be traced. Scheme trustees may make the necessary alterations to scheme rules relying on this power.
