Explanatory note

These Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of Part I of the Pensions Act 1995 (c. 26) (“the Act”) by virtue of which they are made. They are accordingly exempt by section 120(2)(c) of the Act from the requirement for the Secretary of State to consult such persons as he considers appropriate.

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2(1) provides for subsections (2) and (3) of section 51 of the Act to apply, on or after the day appointed for the coming into force of section 51 of the Act for purposes other than authorising the making of these Regulations (“the appointed day”), to such part of a pension payable by an occupational pension scheme to which that section applies as is derived from a transfer credit allowed by the scheme in respect of rights which have previously been subject to indexation under the requirements of section 51 or section 162 of the Act as if those rights were attributable to pensionable service or to payments in respect of employment on or after the appointed day.

Regulation 2(2) provides an exception from the provisions of regulation 2(1) in any case where a transfer credit has been allowed by an occupational pension scheme to which section 51 of the Act applies in respect of rights which have previously been held in a personal pension scheme and which were not subject to the requirements of section 162 of the Act in that scheme.

Regulation 3 provides for subsections (2) and (3) of section 51 of the Act to apply, on or after the appointed day, to such part of a pension payable by an occupational pension scheme to which that section applies as is derived from a transfer payment accepted by the scheme from a policy of insurance or annuity contract in respect of rights which have previously been subject to indexation under the requirements of section 51 or section 162 of the Act as if those rights were attributable to pensionable service or to payments in respect of employment on or after the appointed day.

An assessment of the compliance cost to business of the measures arising from the Act, including these Regulations, has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, 11th Floor, Adelphi, 1-11 John Adam Street, London WC2N 6HT.