Explanatory note

These Regulations amend the Contracting-out (Transfer and Transfer Payment) Regulations 1996 (S.I. 1996/1462) (“the 1996 Regulations”) to enable schemes that were contracted-out to make transfers in respect of pensioner members into occupational pension schemes which have not previously been contracted-out.

Regulation 2(4) inserts new regulation 6A into the 1996 Regulations, which applies in relation to transfers of liability for, and transfer payments in respect of, guaranteed minimum pensions. Regulation 2(6) inserts new regulation 11A into the 1996 Regulations, which applies in relation to transfers of liability for, and transfer payments in respect of, section 9(2B) rights.

The new regulations provide that such a transfer can be made from an occupational pension scheme where either the scheme is going through a Pension Protection Fund assessment period or where a regulated apportionment arrangement has been entered into in relation to the scheme. The transfer can only be made where the pensioner member consents in writing. In addition the member must acknowledge in writing receipt of a statement showing the benefits to be awarded in respect of the transfer. The member must also acknowledge in writing the member’s acceptance that the benefits to be provided by the receiving scheme may be in a different form and of a different amount to those which would have been payable by the transferring scheme; and that the receiving scheme is not required by statute to provide for survivor’s benefits in relation to the transfer.

An impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is published with the Explanatory Memorandum alongside this instrument on the UK Legislation website and the gov.uk website, and copies can be obtained from the Department for Work and Pensions, First Floor, Caxton House, Tothill Street, London SW1H 9NA.