22 December 2004 - Consultation continues on Pensions Act 2004 code of practice
The draft code of practice on the notifiable events framework was published for consultation on the Department for Work and Pensions (DWP) website at https://secureonline.dwp.gov.uk/penret-consult/.
Employers, trustees and scheme managers with a duty to report notifiable events are invited to participate in the consultation to ensure that the framework is clear and workable. The consultation period finishes on 4 March 2005, and the code is due to be issued by The Pensions Regulator by May 2005.
The consultation document sets out when trustees and employers will need to report certain events to The Pensions Regulator and is applicable to those employers, trustees and managers of pension schemes that will pay the Pensions Protection Fund (PPF) levy.
The purpose of the notifiable events framework is to reduce the risk of the circumstances which lead to compensation being payable from the PPF by providing The Pensions Regulator with early warning of problems with schemes or their sponsoring employers which may eventually lead to a ‘call’ on the PPF. This will enable the Regulator to assist schemes and employers before a ‘call’ on the PPF becomes inevitable. The consultation document lists the proposed events that should be reported to the Regulator
Development of codes of practice for The Pensions Regulator is being led by the Department for Work and Pensions, working in partnership with the Occupational Pensions Regulatory Authority (Opra).
Notes for editors
- Notifiable events are part of the new regulatory system for pensions introduced by the Pensions Act 2004. The Pensions Regulator can issue directions exempting certain schemes and employers from the duty to notify. The proposal is to do so when there is no significant risk to the PPF. However, all schemes and employers will have to report ‘serious events’ if they occur.
- Codes of practice are not statements of the law. However they will have evidential value, meaning they will be taken into account by the Determinations Panel, a court or tribunal where relevant.
- Development of codes of practice is being lead by the Department for Work and Pensions, working in partnership with the Occupational Pensions Regulatory Authority (Opra).
- There will be approximately ten codes of practice. The Pensions Regulator will issue the codes on a rolling basis from April 2005.
- The Pensions Regulator has been established by the Pensions Act 2004, which received Royal Assent on 18 November 2004. On 6 April 2005 The Pensions Regulator will succeed Opra, which will cease to exist at that point.
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