delete The Occupational Pension Schemes(Winding Up) Regulations 1996
The Occupational Pension Schemes (Winding Up) Regulations 1996 govern the procedural and technical requirements for winding up occupational pension schemes in the UK, including: determination of when winding up begins, calculation and verification of scheme liabilities under section 73, rules for discharging liabilities through various methods (annuity purchase, transfer credits, personal pensions, cash sums), detailed notice and consent requirements for members, trustee obligations to notify members of deferral determinations, and record-keeping penalties. The regulations prescribe extensive actuarial standards, FRC requirements, and disclosure obligations that schemes must follow when settling member entitlements during wind-up.
This regulation imposes substantial compliance costs through prescriptive actuarial standards, FRC requirements, and procedural requirements that add complexity without proportional benefit to members. The extensive notice, consent, and disclosure requirements for discharging liabilities restrict parties' freedom to negotiate efficient settlements. These requirements disproportionately burden smaller schemes, contributing to consolidation in the pension industry. While member protection is a legitimate goal, this regulation achieves it through bureaucratic process rather than market mechanisms or clear liability rules. Post-Brexit, Britain should reform rather than retain these technical pension wind-up rules, allowing parties greater contractual freedom in arranging beneficial outcomes for scheme members.