The Pensions Regulator has issued guidance about the application process for authorisation and approval for trustees to accept contributions in respect of European members. “The determining factors are the main administration of the scheme and the place of work of the member,” it said.
“If the scheme’s main administration is in the UK and has members in another EU member state, it could still require authorisation and approval, even if the employer were in a third, non-EU country.
“If the scheme’s main administration was in a non-EU country, it would not require authorisation and approval, even if it had members in both the UK and another EU member state (it would be a foreign scheme).”
It said that pension schemes located in one EU member state must apply for authorisation and approval to accept contributions from employers employing members who are subject to the social and labour law of another EU member state.
Trustees need to decide whether they have to apply to the regulator for authorisation and approval for your scheme to accept contributions in respect of European members.
“If you are an employer sponsoring an occupational pension scheme, you need to consider whether your scheme will be accepting contributions in respect of European members in future,” the regulator said.
“If you are an adviser to the trustees of a pension scheme, you need to know whether the scheme you are giving advice in respect of should be authorised and approved to accept contributions in respect of European members.”
It has issued a flowchart to help people decide if their scheme needs to apply for authorisation and approval.
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