Explanatory note

Regulation 3 of the Personal and Occupational Pension Schemes (Incentive Payments) Regulations 1987 specifies those cases in which an incentive payment under section 7 of the Social Security Act 1986 is not to be made. Paragraph (2) of that regulation provides that an incentive payment is not to be made if the earner in question or another earner has during any part of the period from 1st January 1986 to 5th April 1993 been in contracted-out employment by reference to another scheme, which employment is indistinguishable from the employment of the earner in question except by reference to the identity of the employer or employee or both.

These Regulations insert a new paragraph (2A) into regulation 3 which provides that the employment of the earner in question is to be distinguishable from the other employment if on 6th April 1988 the earner in question was ineligible for membership of the other scheme because he had not attained the minimum age or completed the minimum period of service required for membership and membership of the scheme in question is restricted to such earners.