The Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations (Northern Ireland) 2026

Explanatory note

Reproduced verbatim from the instrument as published on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). The note is prepared by the responsible government department and is not part of the instrument itself.

These Regulations amend the Pension Schemes Act 2021 (“ the 2021 Act ”) in order to remove the exclusion of pension schemes used, or intended to be used, by two or more employers some or all of which are not connected with each other (“unconnected multiple employer schemes”) from the definition of “qualifying scheme”. This enables such schemes to be “ collective money purchase schemes ” for the purposes of Part 2 of the 2021 Act. The Regulations also make further provision about such schemes - such as the detail of the authorisation and supervisory regime to which such schemes will be subject, amend the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations (Northern Ireland) 2024 ( S.R. 2024 No. 15 ) (“ the 2024 Regulations ”) and make provision for amendments to legislation in relation to schemes providing collective money purchase benefits.

Part 2 of the Regulations makes amendments to the 2021 Act.

Regulation 3 amends subsection (2) of section 54 of the 2021 Act, and omits subsection (3) of that section, to remove the limitations on qualifying schemes to (a) pension schemes established solely by one or more persons to whom section 1(2)(a) (employer) of the Pension Schemes (Northern Ireland) Act 1993 applied when the scheme was established and (b) pension schemes used, or intended to be used, only by a single employer or two or more employers that are connected with each other (“single or connected employer schemes”). It also inserts definitions of “single or connected employer scheme” and “unconnected multiple employer scheme” into section 52 of the 2021 Act to enable different provision to be made in relation to each type of scheme.

Regulations 4 to 23 make amendments to the 2021 Act to make provision about unconnected multiple employer schemes. Regulation 5 amends section 60 of the 2021 Act to provide additional authorisation criteria that must be met by unconnected multiple employer schemes. Regulation 9 amends section 65 of the 2021 Act to require the Pensions Regulator to be satisfied that the business strategy relating to the scheme is sound in order to be satisfied that an unconnected multiple employer scheme is financially sustainable. Regulation 10 inserts section 65A into the 2021 Act, requiring the scheme proprietor of an unconnected multiple employer scheme to prepare a business plan for the scheme, which the Pensions Regulator must take into account in deciding whether it is satisfied that the business strategy relating to the scheme is sound. Schedules 4A and 4B, which are inserted into the 2021 Act by regulation 23 make provision about the matters the Pensions Regulator must and may take into account in deciding whether a scheme’s business strategy is sound and about the business plan. Other provisions of Part 2 of the Regulations amend the 2021 Act to reflect these changes.

Part 3 of the Regulations makes provision about when an employer is connected with another employer for the purposes of determining whether a scheme is a single or connected employer scheme or an unconnected employer scheme.

Part 4 of the Regulations makes provision about unconnected multiple employer schemes. This Part makes provision equivalent to the 2024 Regulations, which will continue to have effect in relation to single or connected employer schemes. There are some differences to reflect the different nature of unconnected multiple employer schemes and the additional authorisation criteria that will apply to such schemes. Chapter 1 makes preliminary provision covering application, interpretation and notices. Chapter 2 makes provision about schemes divided into sections. Chapter 3 makes provision about authorisation. Chapter 4 makes provision about the provisions that must be included in scheme rules relating to the calculation of benefits, about actuarial valuations and about benefit adjustments. Chapter 5 makes provision about ongoing supervision including about supervisory returns, significant events and risk notices. Chapter 6 (including Schedule 6), makes provision about triggering events and continuity options, including provision about administration charges during a triggering event period.

Part 5 of the Regulations amends the 2024 Regulations. Regulation 58(2) limits the application of the 2024 Regulations to single or connected employer schemes (other than where the 2024 Regulations make amendments to other Statutory Rules). Regulation 58(4) omits regulation 3 of the 2024 Regulations which made provision about when an employer is connected with another employer. This is now provided for in Part 3 of these Regulations. Regulation 58(3) and (5) to (20) make changes for consistency between the 2024 Regulations and these Regulations.

Part 6 of the Regulations amends the Pension Schemes (Northern Ireland) Act 1993, the Pensions (Northern Ireland) Order 1995 and the Pensions (Northern Ireland) Order 2005 to ensure that relevant definitions of “scheme rules” incorporate overrides made by virtue of these Regulations. It also amends the Pensions (Northern Ireland) Order 2005 to reflect changes to the provisions in the 2021 Act about risk notices provided for by regulation 15. It also amends the Pension Schemes Act (Northern Ireland) 2021 to provide that unconnected multiple employer schemes are not Master Trusts for the purposes of that Act and to make provision for cases where a section of a Master Trust is subject to the provisions of the 2021 Act. Part 6 also introduces Schedule 7 which makes consequential amendments to secondary legislation.