The Pensions Regulator

EU cross-border pension schemes

.

.

Definitions

Cross-border legislation means sections 287 to 295 of the Pensions Act 2004, and The Occupational Pension Schemes (Cross-border Activities) Regulations 2005 and The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2007.

A European employer employs qualifying persons and makes contributions in respect of their pensions.

European member means a member of a scheme who is, or was, a qualifying person in respect of whom contributions were made to the scheme by a European employer,

European survivor means a survivor of a European member of the scheme who is entitled to benefits, or has a right to future benefits, under the scheme rules in respect of that European member.

Host member state means in relation to a European employer, the member state or states other than the United Kingdom where that European employer has employees who are qualifying persons.

Member states are:

Austria	Belgium	Bulgaria
Cyprus	Czech Republic	Denmark
Estonia	Finland	France
Germany	Greece	Hungary
Iceland	Ireland	Italy
Latvia	Liechtenstein	Lithuania
Luxembourg	Malta	Norway
Poland	Portugal	Romania
Slovakia	Slovenia	Spain
Sweden	The Netherlands	United Kingdom

Norway, Liechtenstein and Iceland (EEA states) have now become part of the cross-border regime and it is possible to apply for approval for these states.

Qualifying person means a person who is employed under a contract of service and whose place of work under that contract is sufficiently located in a member state other than the UK so that his relationship with his employer is subject to the social and labour law relevant to the field of occupational pensions schemes of that member state.

Social and labour law means the national laws relevant to the field of employment and occupational pension schemes. Whether another EU state’s social and labour law applies to a member will depend on the precise terms of the employment relationship between the sponsoring employer and that particular employee.

The statutory funding objective of a scheme which has entered the Part 3 funding regime under the Pensions Act 2004 is that it must have sufficient and appropriate assets to cover the technical provisions. The statutory funding objective of a scheme which remains subject to transitional provisions is its MFR.

A scheme’s technical provisions mean the amount required, on an actuarial basis, to make provision for the scheme’s liabilities.

.

.