Summary
The Occupational Pension Schemes (Modification of Schemes) Regulations 2006 provide a legal framework enabling trustees of occupational pension schemes to modify scheme rules by resolution for various specified purposes. The regulations define key terms, prescribe descriptions of schemes exempt from certain subsisting rights provisions, set out the prescribed manner for exercising modification powers, establish actuarial equivalence requirements, and grant trustees powers to modify schemes for purposes including: removing HMRC approval requirements, equalising treatment for civil partners and same-sex spouses, removing obsolete protected rights provisions, implementing adjustment measures, revaluing earnings factors, providing nomination and drawdown pension options, and addressing transfer payment independent advice requirements. The regulations facilitate compliance with multiple Pension Acts (1993, 1995, 2004, 2007, 2008, 2014, 2015) and provide procedural mechanisms for scheme governance updates.
Reason
This regulation is fundamentally facilitative rather than restrictive—it provides trustees with legal authority to modify scheme rules for legitimate purposes including compliance with legislative reforms. Deletion would create legal uncertainty about what modifications trustees are permitted to make, potentially harming scheme members by impeding legitimate scheme governance updates and compliance with primary legislation. The regulation does not restrict trade, create monopolies, or impose significant costs on businesses; rather it enables pension schemes to adapt to statutory changes. The substantive restrictions on pension schemes derive from primary legislation, not this procedural regulation.