The Occupational Pension Schemes (Winding Up) (Amendment) Regulations 2004

Explanatory Note

(This note is not part of the Regulations)

These Regulations make certain revocations and amend regulation 3 of the Occupational Pension Schemes (Winding Up) Regulations 1996 (“the 1996 Regulations”), in relation to salary-related occupational pension schemes which begin to be wound up on or after the date on which these Regulations come into force (“the commencement date”) and before the end of the transitional period, which is defined in the 1996 Regulations.

Regulation 3 of the 1996 Regulations modifies section 73(3) of the Pensions Act 1995, which sets out the priority order in which the assets of a scheme are to be applied when it is wound up towards satisfying the liabilities in respect of pensions and other benefits.

Regulation 1 provides for citation, commencement and interpretation of the Regulations. It provides that the changes made by the Regulations will have effect only in relation to schemes which begin to be wound up after the commencement date and before the end of the transitional period.

In relation to schemes which begin to be wound up on or after the commencement date and before the end of the transitional period, regulation 2 revokes regulation 3(5) of the 1996 Regulations. Regulation 2 also revokes regulation 3(3) of the Pension Sharing (Consequential and Miscellaneous Amendments) Regulations 2000 (S.I. 2000/2691) which amended regulation 3(5) of the 1996 Regulations.

Regulation 3 amends regulation 3 of the 1996 Regulations. Paragraph (a) makes the changes to the priority order apply to schemes which begin to be wound up on or after the commencement date and before the end of the transitional period. Paragraph (b) sets out the changes to the priority order. Paragraphs (c) and (d) make consequential amendments.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the cost of business.