{
  "url": "https://openlegislation.uk/occupational-pension-schemes-contracting-out-regulations-1996/regulation-45",
  "json_url": "https://openlegislation.uk/occupational-pension-schemes-contracting-out-regulations-1996/regulation-45.json",
  "legislation": "uksi/1996/1172",
  "legislation_title": "Occupational Pension Schemes (Contracting-out) Regulations 1996",
  "legislation_url": "https://openlegislation.uk/occupational-pension-schemes-contracting-out-regulations-1996",
  "path": "regulation/45",
  "kind": "regulation",
  "number": "45",
  "heading": "Approval of arrangements for schemes ceasing to be contracted-out.",
  "text": "(1) ...For the purposes of section 50(1B) of the 1993 Act (prescribed conditions to be met in order for arrangements to be approved on the cessation of contracting-out) arrangements for cessation of contracting-out before the second abolition date shall not be approved by the Secretary of State unless the conditions specified in paragraphs (2) or (3) are satisfied.\n(2) To the extent that the arrangements concern the transfer of rights or the discharge of liabilities they must meet the requirements of (as the case may be) section 37A of the (transfer of liabilities: schemes contracted-out on or after 6th April 1997), section 19 of that Act (discharge of liability for guaranteed minimum pensions secured by insurance policies or annuity contracts), section 20 of that Act (transfer of guaranteed minimum pensions) ... ... and any regulations made under those provisions and the Secretary of State must be satisfied that such arrangements will be completed within two years of the date of cessation or such later date as the Secretary of State may specify in relation to a particular case or class of case.\n(3) To the extent that the arrangements concern the preservation of rights within the scheme, the scheme must comply with the requirements of paragraph (a)—\n(a) in the case of a scheme where employment was contracted-out under section 9(2) of the 1993 Act (salary-related contracted-out scheme) the scheme must , until the second abolition date, continue to satisfy the requirements of that section and any regulations which would apply to the scheme by reason of it being a scheme to which section 9(2) of that Act relates, other than section 9(2B)(a) of that Act (requirement to comply with section 12A of that Act) and any regulations which relate to compliance with that section, and the scheme must contain a protection rule;\n(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(3A) For the purpose of paragraph (3)(a) a protection rule is a rule which provides that the total amount of the benefits under the scheme for each member at normal pension age and the member’s widow, widower or surviving civil partner at the day following the date of death of the member will not be less than the aggregate of—\n(a) any such benefits arising in respect of section 9(2B) rights and guaranteed minimum pensions;\n(b) any other such benefits due in respect of rights which have accrued to the member in relation to service in employment which was contracted-out before the principal appointed day under section 9(2) of the 1993 Act; and\n(c) any such benefits due in respect of rights which have accrued to the member in relation to service in employment which was not contracted-out.\n(3B) The amount of the benefits mentioned in paragraph (3A)(a) and (b) and, so far as they relate to service on or before the date on which the scheme ceased to be contracted-out, those mentioned in paragraph (3A)(c) shall be calculated on an early leaver basis in accordance with Chapter I of Part IV of the 1993 Act and any regulations made under that Chapter, as if the member had ceased to be in pensionable service under the scheme on that date.\n(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in reg. 45(1) omitted (6.4.2016) by virtue of The Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015 (S.I. 2015/1677), regs. 1(2)(b), 29(3)(a)(i)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in reg. 45(1) inserted (6.4.2016) by The Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015 (S.I. 2015/1677), regs. 1(2)(b), 29(3)(a)(ii)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in reg. 45(2) substituted (6.4.2016) by The Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015 (S.I. 2015/1677), regs. 1(2)(b), 29(3)(b)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in reg. 45(2) omitted (6.4.2012) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245) , regs. 1(2) , 4(14)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in reg. 45(2) omitted (6.4.2012) by virtue of The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246) , arts. 1(2)(a) , 8(9)(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in reg. 45(3) substituted (6.4.2012) by The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246) , arts. 1(2)(a) , 8(9)(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in reg. 45(3)(a) inserted (6.4.2016) by The Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015 (S.I. 2015/1677), regs. 1(2)(b), 29(3)(c)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in reg. 45(3)(a) substituted (6.4.1997) by The Occupational Pension Schemes (Reference Scheme and Miscellaneous Amendments) Regulations 1997 (S.I. 1997/819) , regs. 1(1) , 3(b)(i)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Reg. 45(3)(b) omitted (6.4.2012) by virtue of The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246) , arts. 1(2)(a) , 8(9)(b)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Reg. 45(3A) - Reg. 45(3B) inserted (6.4.1997) by The Occupational Pension Schemes (Reference Scheme and Miscellaneous Amendments) Regulations 1997 (S.I. 1997/819) , regs. 1(1) , 3(b)(ii)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in reg. 45(3A) substituted (5.12.2005) by Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050) , art. 1(3) , Sch. 2 para. 13"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Reg. 45(4) omitted (6.4.2012) by virtue of The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246) , arts. 1(2)(a) , 8(9)(c)"
    },
    {
      "type": "M",
      "label": "M1",
      "text": "Section 50(1B) was inserted by paragraph 45 of Schedule 5 to the Pensions Act 1995."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1996/1172/regulation/45",
    "retrieved_at": "2026-10-29T12:44:46.785957+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."
}