Section 67 essentials

Section 67 of the PA95 applies whenever a power to modify an occupational pension scheme is exercised to make a change (known as a “regulated modification”) which would or might adversely affect a member’s subsisting rights.  Certain limited exceptions are prescribed by statute.

Meaning of subsisting rights

In brief, subsisting rights are those rights which have accrued to or in respect of a member (and his/her survivors) to future benefits under the scheme rules or any entitlement to pension.


There are two types of “regulated modification”.  These are “protected modifications” and “detrimental modifications”.  Each type of modification requires certain conditions to be met before the modification can be made.

A change will be a “protected modification” if it would or might result:

  • in the conversion of a member’s accrued DB benefits to DC benefits; or
  • in a reduction to a pension in payment.

Protected modifications always require an affected member’s informed consent.

A change will be a “detrimental modification” if it would or might adversely affect any subsisting right of a member and his/her survivors (but it is not a protected modification).  Detrimental modifications require either an affected member’s informed consent or the actuarial equivalence requirements to be satisfied.

In both cases both the trustee approval requirements and the reporting requirement must be met.

Exempted schemes

Section 67 of the PA95 does not apply to:

  • public service pension schemes;
  • schemes with fewer than two members;
  • schemes which are not registered pension schemes.