Section 87 — Pensions Act 2008: Stakeholder pension schemes

Stakeholder pension schemes 87 1 The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.

2 Section 3 (duty of employers to facilitate access to stakeholder pension schemes) is amended as follows.

3 In subsection (1), for “the requirements set out below” substitute “ the requirement in subsection (5) ” .

4 After subsection (1) insert— 1A A relevant employee, in relation to an employer, is an employee of the employer who, on the relevant date, satisfies the conditions in subsection (1B). 1B The conditions are that—

a the employee is a member of a stakeholder pension scheme;

b the employee made a request under subsection (5) before the relevant date and that request has not been withdrawn;

c the employee pays contributions (which are deducted in accordance with that request) to the scheme at regular intervals;

d at least one deduction has been made before the relevant date in accordance with that request. 1C A person ceases to be a relevant employee—

a on ceasing to be employed by the employer;

b on withdrawing a request under subsection (5);

c on ceasing to pay contributions at regular intervals.

5 Omit subsections (2) to (4).

6 In subsection (5)—

a omit the word “fourth”;

b omit the words from “of his” to “qualifying scheme”;

c in paragraph (a), for “scheme” substitute “ stakeholder pension scheme ” .

7 After subsection (5) insert— 5A That requirement only applies in relation to a request to make deductions made before the relevant date (whether or not that request is varied after that date).

8 Omit subsection (6).

9 In subsection (7), for “any of the requirements” substitute “ the requirement ” .

10 In subsection (8)—

a for the words from “whether before” to “those purposes” substitute “ while subject to the requirement in subsection (5) ” ;

b omit paragraph (a)(ii) and (iii).

11 In subsection (9), after the definition of “employer” insert— “ relevant date ” means the date on which section 87 of the Pensions Act 2008 comes into force.

12 In that subsection—

a omit the definition of “qualifying scheme”;

b omit the definition of “relevant employees”.

13 In section 6 (application of certain enactments), omit subsections (1), (2) and (4).

14 In section 8 (interpretation), in subsection (1), omit the definition of “designated scheme”.