Commentary on Sections Modification of pension rights Section 67I – Subsisting rights requirement: civil penalties
1005.This section covers the circumstances when the Regulator may impose a civil penalty for a failure to comply with the subsisting rights provisions.
1006.Subsection (1) provides that subsections (2) and (3) apply where a detrimental or protected modification is voidable by virtue of section 67(2). Subsection (2) provides that where a modification is made either by the trustees of a scheme exercising a power vested in them, or by any other person in circumstances that are not provided for in subsection (3), section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee who has failed to take all reasonable steps to secure that the modification is not so voidable.
1007.Subsection (3) provides that section 10 of the Pensions Act 1995 (civil penalties) applies to people who are not trustees who, without reasonable excuse, exercise a power to make a modification if either:
	the trustees have not given their consent to the modification as required under section 67E(1) or,
	the timing requirement in section 67B(6) has not been complied with.
1008.Subsection (4) provides that section 10 of the Pensions Act 1995 applies to any trustee who has failed to take all reasonable steps to secure compliance with any requirements imposed under subsection (5)(a) of section 67G requiring trustees to take specified steps within the time specified.
1009.Subsection (5) provides that where a detrimental or protected modification is made by the exercise of a power in contravention of an order made by the Regulator not to make the modification (section 67H(2)(a)) section 10 of the Pensions Act 1995 applies to:
	any trustee who fails to take all reasonable steps to secure compliance with the order (where the power in question is exercised by the trustees), and
	any other person who, without reasonable excuse, exercises the power in contravention of the order.
1010.Subsection (6) provides that where the trustees fail to comply with any requirement specified in an order made by the Regulator to take certain steps in the time specified, either before or after the regulated modification is made (section 67H(2)(b)), section 10 of the Pensions Act 1995 applies to any trustee who fails to take all reasonable steps to secure such compliance.