The Pensions Regulator’s code of practice on the modification of subsisting rights has been laid before Parliament.
This code 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 says: “The new requirements give more flexibility to modify scheme rules, giving the opportunity to realise cost savings, while also safeguarding members’ rights” .