Commentary on Sections Restrictions on payment into occupational pension schemes Section 252: UK-based scheme to be trust with effective rules
922.This section requires that an occupational pension scheme which has its main administration in the UK must be established under irrevocable trusts.
923.Subsections (1) and (2) provide that where an occupational pension scheme has its main administration in the UK, it can only accept “funding payments” (see subsection (6)) if it is established under irrevocable trusts.
924.Subsection (3) provides that a scheme must also have proper written rules about benefits under the scheme before it can accept funding payments.
925.Regulations made under subsection (4) may exempt certain schemes from the requirement to be established under irrevocable trust. Specifically, statutory schemes could be exempted under this power.
926.Subsection (5) gives the Regulator the power to sanction trustees or managers who accept payments into a scheme which is not trust based or which does not have proper written rules.