The Occupational Pension Schemes (Charges and Governance) (Amendment) Regulations (Northern Ireland) 2022 - screening

The  Statutory Rule introduces a  restriction on the permitted charges that trustees or managers of certain occupational pension schemes can impose upon their members, for the investment administration and general scheme administration of their pension savings (also known as “rights”) in the default fund.

This new restriction applies to the flat-fee charges which can be levied on members of a defined contribution pension scheme used for automatic enrolment with rights invested in the pension scheme’s default fund.  It prohibits a flat-fee charge from being imposed on a member which would reduce the value of the member’s rights in the default arrangement to less than a £100 threshold – or de minimis. Broadly, a default arrangement means an arrangement into which members’ contributions are invested and the member has not expressed a choice as to where their funds should be invested.