# The Occupational Pension Schemes (Contracted-out Protected Rights Premiums) Regulations 1987, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations are all made under provisions of the Social Security Act 1986 (“the 1986 Act”), or provisions of the Social Security Pensions Act 1975 (“the 1975 Act”) inserted by or modified under the 1986 Act, before the end of a period of 12 months from the commencement of the relevant sections of the 1986 Act. 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.
The amendments made to the 1975 Act by Schedule 2 to the 1986 Act introduced into the 1975 Act the concept of the “money purchase contracted-out scheme”. When such a scheme ceases to be a contracted-out scheme, a “contracted-out protected rights premium” may become payable under section 44ZA of the 1975 Act in respect of each person in the categories described in subsection (4) of that section.
Under subsection (7) of that section, the amount of a contracted-out protected rights premium is the cash equivalent of the protected rights of the person concerned, calculated and verified in the prescribed manner.
Regulation 2 provides for the manner in which protected rights, and other rights under the scheme, are to be calculated and verified.
Regulations 3 to 7 make various amendments, in order to deal with the case of contracted-out protected rights premiums, to the Occupational Pension Schemes (Contracting-out) Regulations 1984, and in particular to regulations 18 (liability for payment of state scheme premiums), 20 (time for payment of premiums) and 23 (treating premiums as paid).
The publication “Retirement Benefit Schemes-Transfer Values (GN 11)” referred to in regulation 2(3)(b)(ii), may be obtained from the Institute of Actuaries, Staple Inn Hall, High Holborn, London W.C. IN 7QJ, and from the Faculty of Actuaries, 23 St. Andrew Square, Edinburgh EH2 1AQ.

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Source: https://www.legislation.gov.uk/uksi/1987/1103/note (the official version)
Page: https://openlegislation.uk/occupational-pension-schemes-contracted-out-protected-rights-premiums-regulations-1987/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.