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Section 19 Discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts.I1C1

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

A transaction to which this section applies discharges the trustees or managers of an occupational pension scheme from their liability to provide for or in respect of any person guaranteed minimum pensions—

(a)

if it is carried out not earlier than the time when that person’s pensionable service terminates; and

(b)

if and to the extent that it results in guaranteed minimum pensions for or in respect of that person being appropriately secured; and

(c)

if and to the extent that the requirements set out in paragraph (a), (b) or (c) of subsection (5) are satisfied.

(2)

This section applies to the following transactions—

(a)

the taking out of a policy of insurance or a number of such policies;

(b)

the entry into an annuity contract or a number of such contracts;

(c)

the transfer of the benefit of such a policy or policies or such a contract or contracts.

(3)

In this section “appropriately secured” means secured by an appropriate policy of insurance or an appropriate annuity contract, or by more than one such policy or contract.

(4)

A policy of insurance or annuity contract is appropriate for the purposes of this section if—

(a)

the F1insurer with which it is or was taken out or entered into—

(i)

is, or was at the relevant time, carrying on F2... long-term insurance business in the United Kingdom or any other F3EEA state; and

(ii)

satisfies, or at the relevant time satisfied, prescribed requirements; and

(b)

it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed; and

(c)

it contains or is endorsed with terms whose effect is that the amount secured by it may not be commuted except on conditions which satisfy such requirements as may be prescribed; and

(d)

it satisfies such other requirements as may be prescribed.

(5)

The requirements referred to in subsection (1) are—

(a)

that the arrangement for securing the amount by means of the policy or contract was made—

(i)

at the written request of the earner or, if the earner has died, of the earner’s F4widow, widower or surviving civil partner; or

(ii)

with the consent of the earner or the F5widow, widower or surviving civil partner given in writing in a prescribed form;

(b)

that—

(i)

the case is one such as is mentioned in section 96(2); and

(ii)

the policy or contract only secures guaranteed minimum pensions;

(c)

that—

(i)

the case is not one such as is mentioned in section 96(2); and

(ii)

such conditions as may be prescribed are satisfied.

(6)

In subsection (4)(a), “the relevant time” means the time when the policy of insurance was taken out or the annuity contract was entered into or, as the case may be, when the benefit of the policy or contract was transferred.

F6(7)

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Annotations

Textual amendments

F1

Word in s. 19(4)(a) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 116(2)(a)

F2

Word in s. 19(4)(a)(i) repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 116(2)(b)

F3

Words in s. 19(4)(a)(i) substituted (26.11.2007) by The Occupational Pension Schemes (EEA States) Regulations 2007 (S.I. 2007/3014), regs. 1, 2, Sch. para. 1(b)

F4

Words in s. 19(5)(a)(i) substituted (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(3), Sch. 1 para. 5

F5

Words in s. 19(5)(a)(ii) substituted (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(3), Sch. 1 para. 5

F6

S. 19(7) repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 116(3)

Modifications

C1

S. 19 applied (1.4.1998) by The Local Government Pension Scheme (Scotland) Regulations 1998 (S.I. 1998/366), regs. 1, 58(5)(6)

Commencement

I1

Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Notes on Part III

Textual amendments

F1

Words in Pt. 3 heading omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(b)

F2

Words in Pt. 3 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(a)

Modifications

C1

Pt. III power to modify conferred by Social Security Administration Act 1992 (c. 5), s. 148 (as read with Pensions Act 1995 (c. 26), ss. 128(3)(4), 180(2) (with s. 128(5)(6)); Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 33(2)-(4), 86(1)(b)(2))

C2

Pt. III: power to modify conferred (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 149(1), 180(1); S.I. 1996/778, art. 2(6); S.I. 1997/664, art. 2(3), Sch. Pt. 2

C3

Pt. III applied (with modifications) (6.4.1997) by The Occupational Pension Schemes (Mixed Benefit Contracted-out Schemes) Regulations 1996 (S.I. 1996/1977), regs. 1(1), 2(4)(a)-(f)

C4

Pt. III: power to transfer functions conferred (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), ss. 23, 28(3); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

C5

Pt. 3 modified (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 7(2); S.I. 2014/1683, art. 2

Notes on Chapter I

Textual amendments

F1

Pt. 3 Ch. 1 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 4

Notes on Guaranteed minimum pensions

Textual amendments

F1

S. 13 cross-heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 12