Running a pension scheme

Changes to a pension scheme

Scheme rules may permit trustees to make changes to the pension scheme for which they have responsibility. Changes must be recorded and most must be notified to the scheme's members and beneficiaries. It will also be necessary to inform the office of the pensions regulator.

Occupational schemes
These changes may involve:

• Basic scheme conditions - such as who is eligible for membership, the notice required for termination of pensionable service, the calculation of members' or employers' contributions - members must be notified of these changes within three months of the effective date of the change.
• Benefits in payment - changes must be notified within one month of the decision or one month before the effective date of the change.
• The year-end of the Scheme, eg to coincide with the business' financial year.

Personal and stakeholder schemes
Trustees (or pension providers) must notify members and beneficiaries in writing of changes in these schemes, as follows:

Subjects covered in this guide

• Introduction
• Regulations for setting up a pension scheme
• Pension trustees' role and responsibilities
• Running a pension scheme effectively
• Changes to a pension scheme
• Winding up a pension scheme
• Checklist for employers and pension scheme trustees
• Buying or selling businesses with pension schemes

 Print This Page

Source - Business Link; Crown Copyright.