Key Dates

The Pension Schemes Bill was introduced in the House of Lords on 15 October 2019

Summary

The Pension Schemes Bill was introduced in the House of Lords on 15 October 2019.  Part 3 of the Bill includes amendments to the requirements to notify certain events to the Pensions Regulator.

New notifiable events requirement

• A new section 69A will be inserted in the Pensions Act 2004, applicable to schemes which are eligible schemes for Pension Protection Fund (PPF) purposes.
• Section 69A will require an "appropriate person" to notify the Regulator of:
• a prescribed notifiable event (including a failure to act) in relation to the employer;
• a material change (as defined in regulations) in a notifiable event, or in the expected effects of a notifiable event; or
• the non-occurrence of a notifiable event.

Who is an appropriate person?

• An "appropriate person" will mean each of the following:
• the scheme employer;
• a person connected with the employer;
• an associate of the employer; and
• a person in a prescribed description.

Accompanying statement

• The notification must be sent with an "accompanying statement" containing prescribed information, including a description of:
• the notifiable event;
• any adverse effects of the event on the scheme;
• steps taken to mitigate the adverse effects; and
• any communication with the trustees or managers about the event.

When must notification be given?

• The notification must be given:
• as soon as reasonably practicable after the appropriate person becomes aware of the notifiable event, material change, or non-occurrence of a notifiable event; and
• if required by regulations, at least a prescribed period before the notifiable event or material change.
• At the same time as providing the notification and accompanying statement to the Regulator, the appropriate person must give copies of these to the trustees or managers.

Penalties for non-compliance

• Knowingly or recklessly providing the Regulator with information which is materially false or misleading in relation to duties under the existing section 69 (duty on employers, trustees and prescribed persons to give notice of notifiable events) or new section 69A will be added to the potential offences under section 80 Pensions Act 2004, which are punishable by a fine or imprisonment for up to two years.
• New section 88A (which permits the Regulator to impose civil fines of up to £1m) will apply to a person who, without reasonable excuse, fails to comply with the requirements under section 69A.  Section 88A will also apply to failure to comply with section 69.

Date Accessed: 03/12/2021