Regulation 37 Revaluation of guaranteed minimum

(1)

Where the guaranteed minimum of a person who has ceased to be an active member is appropriately secured, his earnings factors for the purposes of section 14(2) of the Pension Schemes Act 1993 must be determined—

(a)

by reference to the last order under section 21 of the Social Security Pensions Act 1975^f1 or section 148 of the Social Security Administration Act 1992^f2 (revaluation orders) to come into force before the end of the tax year in which he ceased to be an active member; and

(b)

without reference to the last such order to come into force before the end of the final relevant year.

(2)

For such a person the weekly equivalent mentioned in section 14(2) of the Pension Schemes Act 1993 is to be increased—

(a)

by at least the prescribed percentage for each relevant year after the end of the tax year in which he ceased to be an active member, and

(b)

in accordance with such additional requirements as may be prescribed for the purposes of section 16(3) of the Pension Schemes Act 1993^f3.

(3)

In this regulation—

“appropriately secured” has the meaning given in section 19 of the Pension Schemes Act 1993^f4;
“final relevant year” has the meaning given in section 16(5) of that Act;
“relevant year” has the meaning given in section 14(8) of that Act^f5; and
“prescribed percentage” has the meaning given in regulation 62 of the Occupational Pension Schemes (Contracting-out) Regulations 1996^f6.

Annotations

Footnotes

f1: 1975 c. 60.
f2: 1992 c. 4.
f3: Section 16(3) of the Pension Schemes Act 1993 (c. 48) was amended by the Pensions Act 1995 (c. 26), Schedule 5, paragraph 28.
f4: Section 16(5) of the Pension Schemes Act 1993 (c. 48) was amended by the Pensions Act 1995 c. 26, Schedule 5, paragraph 28(b).
f5: Section 14(8) of the Pension Schemes Act 1993 was amended by the Pensions Act 1995, Schedule 5, paragraph 27.
f6: S.I. 1996/1172.