Commentary on Sections UK occupational pension scheme receiving contributions from European employer Section 287: Occupational pension scheme receiving contributions from European employer
1152.This section details the conditions an occupational pension scheme located in the UK must meet before it can begin to operate as a cross-border scheme. Subsection (1) provides that trustees or managers of an occupational pension scheme cannot accept any contribution to the scheme from a European employer unless the conditions in subsections (2) to (6) are met. A scheme must:
	be ‘authorised’ under section 288 by the Regulator to engage in such activity (subsection (2)); and
	have been approved under section 289 by the Regulator to receive contributions in respect of a particular employer from a different Member State (subsection (3)).
1153.Subsection (4) provides that the scheme must not operate cross-border until its trustees or managers have been notified, by the Regulator, of the social and labour law of the host Member State, together with details of any additional investment restrictions under Article 18(7) and information rules under Article 11 of the Directive that the host Member State requires the scheme to comply with. If a period of two months has passed since the Regulator notified the scheme that it is approved under section 289 and this information has not been provided by the Regulator, this condition is taken to be satisfied.
1154.Subsection (5) enables the Regulator to take action to impose a civil penalty under section 10 of the Pensions Act 1995 (civil penalties) against the trustees or managers of a scheme who commence cross-border activity without having complied with the conditions listed above.
1155.Subsection (6) makes provision for the terms “European Employer” and “host Member State” to be defined in regulations.