More PPF and Pensions Regulator Regs
by Ian Neale 21/03/2005    Back to previous page

The flood continues unabated: in the last few days the following new SIs made under the Pensions Act 2004 have been laid before Parliament, all to come into force on 6 April 2005. Except where otherwise indicated, none has been a subject of prior public consultation so far as we are aware. (Under s.317 of the Act, the Secretary of State is under no duty to consult on regulations made within six months of coming into force of the relevant enabling provisions of the Act.)

(1) The Pension Protection Fund (Eligible Schemes) Appointed Day Order 2005 (SI 2005/599) prevents an occupational pension scheme from being eligible for the PPF if it was in wind- up before 6 April 2005.

(2) The Pension Protection Fund (Reviewable Matters) Regulations 2005 (SI 2005/600), under s.206, modifies Schedule 9 ("Reviewable Matters") of the Act, prescribing various time periods within which a failure by the Board of the PPF to do the act or make the determination in question creates a reviewable matter. The regs also insert four further reviewable matters.

(3) The Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 2005 (SI 2005/669), under s.207, prescribes how the Board must conduct a review of a reviewable matter and how the Reconsideration Committee of the Board must subsequently reconsider the matter on the written application of an interested person.

(4) The Pension Protection Fund (Compensation) Regulations 2005 (SI 2005/670), predictably lengthy at 23 pages, prescribe the circumstances where a person shall be entitled to periodic or lump sum compensation and various matters relating to calculation of the amount.

(5) The Pension Protection Fund (Valuation) Regulations 2005 (SI 2005/672) provide for the assessment of the assets and liabilities of eligible schemes in accordance with sections 143 and 179 of the Act.

(6) The Pension Protection Fund (Provision of Information) Regulations 2005 (SI 2005/674) make provision relating to the information which the Board of the PPF, the members and beneficiaries of certain occupational pension schemes, the trustees and managers of such schemes and certain insolvency practitioners are required to provide, and to whom, where compensation is, or may become, payable by the Board.

(7) The Pension Protection Fund (Statement of Investment Principles) Regulations 2005 (SI 2005/675) is about the statement of investment principles which the Board of the Pension Protection Fund is required to prepare, review and if necessary revise in accordance with section 114 of the Act.

(8) The Pension Protection Fund (Limit on Borrowing) Order 2005 (SI 2005/339), which came into force on 9 March 2005 and which we overlooked reporting here earlier, specifies £25 million as the limit on the amount the PPF can borrow.

(9) The Pensions Regulator Tribunal Rules 2005 (SI 2005/690), made under ss. 102(3) and 104(6) of the Act, set out in 21 pages the procedure for references to the Tribunal and for hearings and appeals. These rules emanate from the Department for Constitutional Affairs (formerly the Lord Chancellor's Department), not the DWP.

(10) The Pensions Act (Commencement No. 3, Transitional Provisions and Amendment) Order 2005 (SI 2005/695) has emerged from a brief consultation by the DWP in January. Made on 14 March but first published on the HMSO website only today, this SI in particular concerns the dissolution of Opra on 6 April 2005 and under section 300(2) of the Act the transfer of property, rights and liabilities of Opra to the Pensions Regulator ("the Regulator") on that day.

The Order also sets the appointed day for several other matters, notably section 272 of the Act (debt due from the employer in the case of multi-employer schemes), as 15 March. A list is appended of all the provisions of the Act brought into force by earlier Commencement Orders.

Finally, the DWP has provided an updated timetable of its Pensions Act regulations programme, as at Friday 18 March; together with a summary of its schedule for “non-Bill” (ie other) Regs this year and another timetable for issue of eleven Codes of Practice under the Act. Copies of these three documents may be obtained on request from regs@ariespensions.co.uk