{
  "url": "https://openlegislation.uk/money-purchase-contracted-out-schemes-regulations-1987/note",
  "json_url": "https://openlegislation.uk/money-purchase-contracted-out-schemes-regulations-1987/note.json",
  "legislation": "uksi/1987/1101",
  "legislation_title": "The Money Purchase Contracted-out Schemes Regulations 1987",
  "legislation_url": "https://openlegislation.uk/money-purchase-contracted-out-schemes-regulations-1987",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations are all made under section 30(1C) or 32(2D) of the Social Security Pensions Act 1975 (“the 1975 Act”) or paragraph 3 or 6 of Schedule 1 to the Social Security Act 1986 (“the 1986 Act”), as modified by section 32(2B) of the 1975 Act, and are made before the end of the period of 12 months from the commencement of those provisions. Consequently, by virtue of section 61(5) of the 1986 Act, the provisions of section 61(2) and (3) of the 1975 Act (as amended by section 86(1) of, and paragraph 94 of Schedule 10 to, the 1986 Act), which require reference to the Occupational Pensions Board of, and a report by the Board on, proposals to make regulations for certain purposes of both Acts do not apply to them.\nSection 6 of the 1986 Act, with Schedule 2, introduces the concept of the money purchase contracted-out occupational pension scheme. Regulation 2, with the Schedule, makes provision about the way in which the resources of the scheme must be invested if it is to be a money purchase contracted-out scheme.\nFor a money purchase scheme to be contracted-out, it is necessary that “minimum payments” should be made to it. Regulations 3, 4 and 5 provide for the calculation of minimum payments; that they should be made by employers to the trustees or managers of schemes; and that parts of them may be deducted by employers from payments of emoluments.\nSection 32(2D) of the 1975 Act (inserted by paragraph 5(b) of Schedule 2 to the 1986 Act) provides that a scheme which has been contracted-out by virtue of one of subsections (2) and (2A) of section 32 (schemes which are not, and schemes which are, money purchase contracted-out schemes respectively) may not become contracted-out by virtue of the other, except in prescribed circumstances. Regulation 6 provides that it may do so only if its trustees or managers have been discharged of all their liability, accrued before the change, to provide guaranteed minimum pensions or to give effect to protected rights, as the case may be.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1987/1101/note",
    "retrieved_at": "2026-10-29T16:24:58.368479+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}