09 November 2006
The Pensions Regulator's code of practice on the modification of
subsisting rights has been laid before Parliament.
The code of practice on the modification of
subsisting rights explains that, under the Pensions Act 2004,
changes cannot be made to scheme rules without the consent of
scheme members or an actuarial equivalence certificate - depending
on the type of modification.
The code of practice gives guidance on:
- to which schemes and types of modification the legislation
applies;
- trustees' duties and responsibilities; and
- the Pensions Regulator's expectations and powers to
intervene.
The Pensions Regulator head of policy and guidance Sue Rivas
said: "The new requirements give more flexibility to modify scheme
rules, giving the opportunity to realise cost savings, while also
safeguarding members' rights."
