Regulation 3 Amendment of the Occupational Pension Schemes (Contracting-out) RegulationsI1

before “Subject to any regulations” there shall be inserted “—(1)”;

at the end there shall be added the following paragraph—

“(2)

Subject to any regulations made under Article 146 of the Order and to regulation 77^f2, a scheme which has been contracted out by virtue of section 5(2) of the Act^f3 may become contracted out under section 5(3) of the Act only if its trustees have been discharged of all liability to provide guaranteed minimum pensions and section 5(2B) rights.”.

in paragraph (3)(a) for the words from “a rule which provides” to the end there shall be substituted “a protection rule”;

after paragraph (3) there shall be inserted the following paragraphs—

“(3A)

For the purposes 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 or widower at the day following the date of death of the member will not be less than the aggregate of—

(a)

any such benefits arising in respect of section 5(2B) rights and guaranteed minimum pensions;

(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 5(2); and

(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.

(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 Act^f4 (preservation of benefit under occupational pension schemes) and any regulations made under that Chapter, as if the member had ceased to be in pensionable service under the scheme on that date.”.