{
  "url": "https://openlegislation.uk/pensions-act-2014-contributions-equivalent-premium-consequential-provision-and-savings-amendment-order-2016/article-3",
  "json_url": "https://openlegislation.uk/pensions-act-2014-contributions-equivalent-premium-consequential-provision-and-savings-amendment-order-2016/article-3.json",
  "legislation": "uksi/2016/252",
  "legislation_title": "The Pensions Act 2014 (Contributions Equivalent Premium) (Consequential Provision) and (Savings) (Amendment) Order 2016",
  "legislation_url": "https://openlegislation.uk/pensions-act-2014-contributions-equivalent-premium-consequential-provision-and-savings-amendment-order-2016",
  "path": "article/3",
  "kind": "article",
  "number": "3",
  "heading": "Payment of contributions equivalent premium in respect of earners in formerly contracted-out schemes",
  "text": "(1) Where a scheme ceases to be a contracted-out occupational pension scheme on the second abolition date, the relevant person may, upon the occurrence of a relevant event, elect to pay a premium in respect of a relevant member and must do so if paragraph (6) applies.\n(2) A premium paid under paragraph (1) is to be known as a “contributions equivalent premium”.\n(3) A “relevant member” is a member who—\n(a) was serving in contracted-out employment by reference to the scheme immediately prior to the second abolition date; and\n(b) at the date of the relevant event, has served for less than two years in that employment.\n(4) A “relevant event” is an event which—\n(a) occurs before the member attains the scheme’s normal pension age or (if earlier) the end of the tax year preceding that in which the earner attains pensionable age; and\n(b) is of a description listed in paragraph (5).\n(5) For the purposes of paragraph (4), a relevant event occurs when—\n(a) the member’s service in the employment ceases otherwise than on the member’s death;\n(b) the member ceases to be a member of the scheme otherwise than on the member’s death;\n(c) the member’s service in the employment ceases on the member’s death and the member dies leaving a widow, widower or surviving civil partner; or\n(d) the scheme begins to be wound up.\n(6) This paragraph applies if—\n(a) at the date of the relevant event, the member has no accrued right to any benefit under the scheme; and\n(b) none of paragraphs (7), (8) or (9) applies.\n(7) This paragraph applies where—\n(a) the member’s service in the employment ceases on the member’s death; and\n(b) the member leaves a surviving spouse or civil partner who is not entitled to any of the following benefits—\n(i) a widowed mother’s allowance under section 37 of the 1992 Act (widowed mother’s allowance: deaths before 9 April 2001);\n(ii) a widow’s pension under section 38 of the 1992 Act (widow’s pension: deaths before 9 April 2001);\n(iii) a widowed parent’s allowance under section 39A of the 1992 Act (widowed parent’s allowance);\n(iv) a bereavement allowance under section 39B of the 1992 Act (bereavement allowance where no dependent children); or\n(v) a bereavement support payment under section 30 of the Pensions Act 2014 (bereavement support payment).\n(8) This paragraph applies where the member is a woman who has made, or is treated as having made, an election under regulations made under section 19(4) of the 1992 Act (general power to regulate liability for contributions), which has not been revoked, that her liability in respect of primary Class 1 contributions shall be at a reduced rate.\n(9) This paragraph applies where, on the termination of pensionable service, the member elects to acquire a right to a cash transfer sum in accordance with section 101AB(1)(a) of the 1993 Act (right to cash transfer sum and contribution refund).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 37 was amended by paragraph 18(1) and (2) of Schedule 24 and Schedule 30 to the Civil Partnership Act 2004 (c.33), paragraphs 1 and 2 of Schedule 1 to the Child Benefit Act 2005 (c.6), section 50 of, and Schedule 8 to, the Welfare Reform Act 2007 (c.5) and paragraphs 2 and 10 of Schedule 16 to the Pensions Act 2014. Amendments were also made by paragraph 22(1) and (3) of Schedule 1 to S.I. 2014/560 in relation to England and Wales and by paragraph 2(1) and (3) of Schedule 4 to S.I. 2014/3229 in relation to Scotland."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Section 38 was amended by paragraph 19(1) and (2) of Schedule 24 and Schedule 30 to the Civil Partnership Act 2004, paragraph 40 of Schedule 1 to the Pensions Act 2007 and paragraphs 2 and 11 of Schedule 16 to the Pensions Act 2014. Amendments were also made by paragraph 22(1) and (4) of Schedule 1 to S.I. 2014/560 in relation to England and Wales and by paragraph 2(1) and (4) of Schedule 4 to S.I. 2014/3229 in relation to Scotland."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Section 39A was inserted by section 55(2) of the Welfare Reform and Pensions Act 1999 (c.30) and amended by paragraph 20(1) to (6) of Schedule 24 and Schedule 30 to the Civil Partnership Act 2004, paragraphs 1 and 3 of Schedule 1 to the Child Benefit Act 2005, section 51 of the Welfare Reform Act 2007 and paragraphs 2 and 12 of Schedule 16 to the Pensions Act 2014. Amendments were also made by paragraph 22(1) and (5) of Schedule 1 to S.I. 2014/560 in relation to England and Wales and by paragraph 2(1) and (5) of Schedule 4 to S.I. 2014/3229 in relation to Scotland."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "Section 39B was inserted by section 55(2) of the Welfare Reform and Pensions Act 1999 and amended by paragraph 21(1) to (5) of Schedule 24 and Schedule 30 to the Civil Partnership Act 2004. Amendments were also made by paragraph 22(1) and (6) of Schedule 1 to S.I. 2014/560 in relation to England and Wales and by paragraphs 2(1) and (6) of Schedule 4 to S.I. 2014/3229 in relation to Scotland."
    },
    {
      "type": "footnote",
      "label": "f5",
      "text": "Section 19(4) was amended by paragraphs 1 and 5(1) and (4) of Schedule 1 to the National Insurance Contributions Act 2002 (c.19)."
    },
    {
      "type": "footnote",
      "label": "f6",
      "text": "Section 101AB was inserted by section 264 of the 2004 Act."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2016/252/article/3",
    "retrieved_at": "2026-10-28T23:26:36.302648+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."
}