Further to our e-update dated 05/02/09, it has been confirmed that employers planning to take advantage of rule changes relating to the revaluation of deferred benefits do not have to consult members beforehand, unless there is a distinct requirement to do so in terms of employment law.
The Pensions Regulator has confirmed to us that an amendment to reflect the change to the statutory revaluation cap from 5% to 2.5% falls within the exemption contained in regulation 10(1)(a) of The Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006. This means that there will be no requirement for a consultation to be carried out under those regulations.
It will, however, remain important for employers and trustees to take legal advice to ensure that any amendments are effectively made (where the reduction does not apply automatically) and for employers to satisfy any employment law obligations to which they are subject.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
