16 December 2008 – Consultation – Draft Pensions Regulator (Miscellaneous Amendment) Regulations 2009
The Department for Work and Pensions yesterday released a consultation document that sets out simplifications to the Pensions Regulator’s notifiable events framework, and an amendment to the statutory period that applies to the use of financial support directions.
The Regulator has also published its draft material detriment code of practice for consultation. The material detriment test, introduced by the Pensions Act 2008, is a new test for contribution notices, based on whether a sponsor's actions or failures have a materially detrimental effect on the likelihood of members receiving their benefits.
The code, which targets the new material detriment test, sets out the circumstances in which the Regulator expects to use this new power. It aims to provide trustees, employers and their advisers with greater certainty about its operation.
Lord McKenzie of Luton, Parliamentary Under-Secretary said:
“We want to do all that we can to ensure that our regulations reflect the needs of the current market. These changes, which the Government announced earlier this year, are designed to rationalise the Regulator’s notifiable events regime, and to ensure that the period that applies to financial support directions is appropriate.
“I also welcome the consultation that the Pensions Regulator has launched on the material detriment test, which shows the commitment to protect members’ benefits without hampering routine business activity.”
Notes to Editors
- The consultation period begins on 15 December 2008 and runs until 6 February 2009. Comments on any aspect of the draft Regulations are welcomed. This document is available on the Department’s website at: http://www.dwp.gov.uk/consultations/2008/pen-reg-misc-amdt-regs-consultation.pdf
- The tPR consultation is available on line at - http://www.tpr.gov.uk/whatsNew/pn08-28.aspx
- The amendments to the Regulator’s notifiable events regime and the statutory period that applies to financial support directions were announced in the October 2008 Government response to the consultation on “Amendments to the anti-avoidance measures in the Pensions Act 2004”. The draft regulations remove three notifiable events and provide for a staged increase to the period for issuance of a financial support direction from 12 to 24 months.
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