The DWP has disclosed more details of its schedule for implementation of the Pensions Bill once it is enacted. In this document, recently made available to industry bodies but not published on the web, the DWP asserts its intention to restrict April 2005 commencement to sections directly required for setting up the PPF, the FAS and the Regulator; those integral to them or their funding (eg the changes to LPI); and those which are optional (eg simplified IDR procedures). TUPE (clauses 246-7 of the present Bill) it claims is perhaps the only additional subject expected to come into force from next April. However, this depends partly on what is considered as "optional". In any event, as DWP itself acknowledges, this represents a tight timetable, with no draft Regs yet published for consultation.
There are three principal target dates for coming into force: April 2005, September 2005, and April, 2006. Each of the subjects listed below is anticipated to require a separate SI, which suggests over 70 sets of Regs, not counting those concerning the PPF. The DWP's schedule in more detail is as follows:
(A) April 2005
Part 1 Regulator
- Transitionals
- Freezing Order / Transfers
- Independent Trustees
- Scheme Register
- Pension Tracing Service
- Pensions Liberation
- Levy
- Moral Hazard
- Notifiable Events
Part 2 Pension Protection Fund
No details are provided; implementation plans for individual sets of regulations are said to be still under review, "in the light of available resources and the need to balance viability of the new PPF against overall loading of the system".
Part 5 Occupational and Personal Pension Schemes: Miscellaneous Provisions
- LPI
- Vires Power (Commencement Order)
- Meaning of "Working Life" in PSA 93 (Commencement Order)
- Amendments relating to the Pensions Compensation Board
- Internal Dispute Resolution
- Pensions Ombudsman
- Pension Protection on Transfer
- Priority Order (Wind-Up)
- Discharge of Liabilities
- Employer Debt
- Deemed Buy-back
- Employer (Insolvent) Debt
Part 6 Financial Assistance Scheme
Part 8 State Pension Deferral
- Lump Sum: Definition of Accrual Period
- Lump Sum: Power to prescribe interest rate > 2% above BoE rate
- Lump Sum: Exclusions from calculation of pension foregone; deferred GRB
- Lump Sum for Surviving Spouses
- Increments for SAP and other increment-related consequences
(B) September 2005
Part 3 Scheme Funding
- Exemptions
- Modifications
- Calculations, Valuations and Recovery Plans
- Schedules of Contributions and Failure to Make Payments
- Matters Requiring the Agreement of the Employer
- Matters Requiring the Actuary's Advice
- The Powers of the Regulator
- Transitional Arrangements
- Consequential Amendments
Part 5 Occupational and Personal Pension Schemes: Miscellaneous Provisions
- Definitions of Occupational and Personal Pension Scheme
- Trust Requirement
- Meaning of "Stakeholder Pension Scheme"
Part 7 Cross-Border Activities Within European Union
- Exemption for Certain Schemes from requirement to ensure Adequate Controls
- Investment
- Disclosure (EU Directive)
- IORP (EC Directive) 2 (2) Regs (Art 17, 14 (1) & 9 (1)(b)
- Exclusion of FURBS
- Definitions of "European Employer" and "Host Member State"
- TPR-related provisions: "Authorisation" and "Approval" requirements, Ring-fencing and Art 20 (10) activities
- UK "Social and Labour Laws"
Part 9 Definition of Employer
(C) April 2006
Part 5 Occupational and Personal Pension Schemes: Miscellaneous Provisions
- MNTs (the recent announcement about 50% MNTs will be introduced via later Regs and will not come into force until perhaps 2008 or 2009)
- Section 67
- Late Payments
- Finance Act consequentials
- Surplus Payments to Employers
- Trustees’ Knowledge
- Disclosure (Simplifications)
- Trivial Commutation
- Serious Ill-Health Commutation
- Protected Rights changes
- EPBs
- Income Drawdown
- SIPPs
- Early Leavers: Cash Transfer Sums and Contribution Refunds
- Pensions and Employment: Requirement to Consult
Part 8 State Pension Deferral
- Lump Sum: Time Limits and manner of notifying an Election; provision to change Election
- Lump Sum: prescribe different start date for rate change
- Lump Sum: exemptions from s. 113
- Lump Sum: non-appealable D&A Regs amendment
- Lump Sum: award of increments: grounds for review
- Lump Sum held over to following tax year; advance claims for people ceasing to defer; backdating of SP; arrears on death
(D) No definite target date
Part 4 Financial Planning for Retirement
- Financial Planning for Retirement (possibly June 2006: "if used")
- Mandatory Combined Pension Forecast (April 2007, depending on above decision)
Part 8 State Pension Deferral
- Lump Sum Disregard, Pension Credit and HB/CTB
