About the IWMPS
The Scheme provides retirement and death benefits for coal industry employees transferred to new employment as a consequence of the de-nationalisation of British Coal. It was established on 29 December 1994 under the Industry-Wide Mineworkers’ Pension Scheme Regulations 1994, which created the Trust Deed and Rules. The Coal Industry Act 1994 and The Coal Industry (Protected Persons) Pensions Regulations 1994 set out the duties on employers and rights of members in this respect. The Scheme is a Registered Pension Scheme in accordance with Chapter 2, Part 4 of the Finance Act 2004. The Scheme is generally exempt from taxation on investment income and capital gains.
In accordance with the provisions of the Pensions Act 2014, the Scheme ceased to be contracted-out of any additional state pension from 6 April 2016. The Scheme was exempted from changes in rates to reflect the higher employer National Insurance rates under Section 24 (4) (a) of the Act and accompanying Regulations. Prior to 6 April 2016, the Scheme was a contracted-out scheme for the purposes of Part III of the Pension Schemes Act 1993, and a contracting-out certificate was issued to each participating employer by HMRC to cover the employment of members of the Scheme. This meant that members paid reduced rate National Insurance contributions whilst contracted-out. The Scheme was closed to new entrants from 1 April 2019. This was to ensure that the IWMPS remained exempt from Regulatory Authorisation as a Master Trust under the Occupational Pension Schemes (Master Trusts) Regulations 2018.
The assets of the Scheme are held separately from those of the participating employers and are controlled by the Committee of Management. The costs of administration and management are met by the Scheme, except where specified differently by a Schedule of Contributions. The Trust Deed and Rules require a separate Employer Section to be established for each employer or group of associated employers since the benefits payable in respect of the members of each Employer Section are to be funded solely by the contributions paid by and in respect of those members (plus investment returns). Several pooled funds have been established for investment management purposes. Each operates on a unitised basis so that the value attributable to each Employer Section is readily ascertainable by reference to the number of units held in each pooled fund. The contributions remitted to the Scheme by employers are invested each month after making deductions to meet benefit payments due, life insurance premiums and the Scheme’s running costs in the following month. Investments are made in the relevant pooled fund(s) in accordance with the asset allocation policy for each Employer Section. The money invested buys units in each pooled fund at the prevailing unit rate as determined by the market value for that fund.
The legal documentation governing the operation of the IWMPS is the Trust Deed & Rules of the Scheme. The establishment of the Scheme and protection for members transferring from their former employment is covered in Schedule 5 of the Coal Industry Act 1994 and a set of Regulations made under that Act.
In common with most company pension schemes the IWMPS is established as a trust under which the assets of the Scheme are held separately from those of the sponsoring employers. The management of the Scheme is the responsibility of its trustee board, the Committee of Management, who are required to manage the Scheme in accordance with its Deed and Rules.
The Trustee of the Scheme is Industry-Wide Mineworkers’ Pension Scheme Trustees Limited (the Trustee Company). The Articles of Association of the Trustee Company provide for the appointment of six directors. The directors form the Scheme’s Committee of Management. Subject to the “Member-Nominated Director” requirements under legislation, three of the directors are appointed on behalf of the participating employers by the Industry-Wide Mineworkers’ Pension Scheme Co-ordinator Limited and three are appointed currently by trade unions.
Contacting the Trustee
All correspondence and questions about policy of the Trustee should be addressed to the Secretary at the address below. All mail addressed to the IWMPS Trustee will normally be dealt with by the Secretary.
The Secretary to the Trustee
IWMPS, The Trustees Office, Mexborough Business Centre, College Road, Mexborough, S64 9JP
E-mail : [email protected]
Telephone 01709 590058