# The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations 1998 (S.I. 1998/1397) and the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations (Northern Ireland) 1998 (S.R. 1998 No. 208) (“the 1998 Regulations”). The 1998 Regulations deal with the calculation of the amount required for restoring certain rights under the State retirement pension scheme of members of occupational pension schemes that are wound up underfunded (“the calculation”).
The amendments apply where the effective date of the calculation is on or after 21st April 2005. (The effective date is the date on which the Commissioners of Inland Revenue determine the extent to which the resources of the pension scheme in question are insufficient to meet the liability for the cash equivalent of the member’s rights under the scheme).
Regulation 2 amends the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations 1998. It amends the definition of “relevant weekly amount” so that the calculation covers relevant employment after 5th April 2002. For such employment the calculation is done by reference to the relevant weekly amount which reflects the deduction made in calculating the additional pension in a Category A retirement pension where the earner was in contracted-out employment.
In the case of members within 10 years of pensionable age, it changes the percentage to be used as the numerator in calculating the market level indicator from 3.5 per cent. to 3 per cent.
It also substitutes new tables in Schedule 1 to those Regulations setting out new actuarial factors to be used for the purposes of the calculation and a new table in Schedule 2 setting out the investment indices relating to the yields of gilts and equities that are used in finding the market level indicator for the calculation.
Regulation 3 makes corresponding amendments of the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations (Northern Ireland) 1998.
A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.

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Source: https://www.legislation.gov.uk/uksi/2005/891/note (the official version)
Page: https://openlegislation.uk/occupational-pension-schemes-contracting-out-amount-required-for-restoring-state-scheme-rights-amendment-regulations-2005/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.