The Pensions Act 2008 (Commencement No. 14 and Supplementary Provisions) Order 2012

Made: 27th September 2012

The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 144(2)(a) and 149(1) of the Pensions Act 2008[^f00001].

Citation and interpretation

1

• (1) This Order may be cited as the Pensions Act 2008 (Commencement No. 14 and Supplementary Provisions) Order 2012.

Commencement of provision

2

The day appointed for the coming into force of section 87 of the Pensions Act 2008 is 1st October 2012.

Supplementary provisions

3

• (1) Where an employer is making deductions from a person’s remuneration in accordance with a request under section 3(5) (duty of employers to facilitate access to stakeholder pension schemes) of the Welfare Reform and Pensions Act 1999[^f00002], paragraph (2) of this article applies.

• (2) Where the person withdraws a request to the employer to make deductions in accordance with section 3(5) of that Act, that employer must notify the person—

• (a) that the employer is no longer required to make deductions from the person’s remuneration and pay contributions to the trustees or managers of the stakeholder pension scheme; and

• (b) that the person may still be able to make payments directly to the stakeholder pension scheme, subject to the rules of that scheme or the terms and conditions of any contract governing that scheme.

Signed

Signed by authority of the Secretary of State for Work and Pensions.

Steve Webb — Minister of State, — Department for Work and Pensions — 27th September 2012

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order brings into force section 87 (stakeholder pension schemes) of the Pensions Act 2008 (c.30) (‘the 2008 Act’) which amends section 3 of the Welfare Reform and Pensions Act 1999 (c.30), on 1st October 2012.

Section 3 of the Welfare Reform and Pensions Act 1999 relates to the duty of employers to designate a stakeholder pension scheme for relevant employees. Section 3, as amended by section 87 of the 2008 Act, requires employers to continue to deduct contributions from the remuneration of those relevant employees who are contributing to a stakeholder pension scheme before the coming into force of section 87, and to pass those contributions to the scheme.

Article 2 brings section 87 of the 2008 Act into force on 1st October 2012, the date on which the employer duties in sections 2 to 9 of the 2008 Act first apply to employers.

Article 3 makes supplementary provisions which apply from 1st October 2012, requiring an employer to notify an employee of the consequences of having made a request to cease making deductions.

This instrument has a savings impact on the private sector and civil society organisations. An assessment of that impact has been made. A copy of that assessment is available in the Libraries of both Houses of Parliament and alongside the instrument on www.legislation.gov.uk. Copies may also be obtained from the Better Regulation Unit of the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H - 9NA or on the Department for Work and Pensions website: http://www.dwp.gov.uk/publications/impact-assessments.

Footnotes

[^f00001]: 2008 c. 30.

[^f00002]: 1999 c. 30.