DWP Central Freedom of Information Team

e-mail: [DWP request email]

Our Ref: VTR1269

16 December 2008

Dear Mr Wynn

Freedom of Information Request - VTR 1269

Thank you for your e-mail of 8 December 2008 in which you have asked for further information on The Stakeholder Pension Schemes Regulations 2000 (as amended by The Stakeholder Pension Schemes (Amendment) Regulations 2005).

In particular, you have asked what is the meaning of `benefits' in Regulation 13(1) and whether `Expenses, commission etc' (the heading under which this regulation appears) are benefits. Although there is no definition of `benefits' in these regulations, a stakeholder pension is a type of money purchase pension and a definition of `money purchase benefits' is set out in section 181 of The Pension Schemes Act 1993.

This defines `money purchase benefits', in relation to a member of a personal or occupational pension scheme or the widow, widower or surviving civil partner of a member of such a scheme, as meaning:

`benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which are not average salary benefits.'.

Put simply, from the context in which it is used in regulation 13(1) and throughout other pensions legislation, `benefits' can only refer to the `benefits' payable on retirement or death, or on the attainment of a particular age. This would include `lump sum benefits', a `regular income' (for example that provided through a pension or annuity), or through the provision of a `survivor's benefit'.

It follows, therefore, that it could not possibly in this context, be interpreted as referring to `expenses' or `commission'.

Whilst I hope you find this helpful, the guidance on the operation of Regulations set out in this reply should not be taken as a definitive statement of how the legislation works. Ultimately, that is a matter for the courts.

If you are not satisfied with my handling of your request please tell me why within two calendar months of the date of this letter. I will then arrange for someone to conduct an internal review of your request and my handling. The review will be conducted by another officer, usually of a more senior grade to me. The person will have taken no part in my original decision. You will be advised of their decision in writing.

If you are still not content with the outcome of the internal review you have the right to apply directly to the Information Commissioner to look into the way your request has been handled. Generally the Commissioner cannot make a decision unless you have first exhausted DWP's own complaints procedure.

If you have any queries about this letter, please contact me. Please remember to quote the reference number above in any future communications.

Yours sincerely

DWP Central FoI Team