Regulation 3 Cases in which payments under section 7 of the Act are not to be made, or are to be made to prescribed persons
No payment shall be made under section 7 of the Act (schemes becoming contracted-out between 1st January 1986 and 5th April 1993) in any case to which paragraph (2), F1(3), (4) or (4A) applies.
F2Subject to paragraph (2B), this paragraph applies to a case where the earner in question, or another earner, has been in employment which—
was contracted-out employment by reference to a scheme other than the scheme in question during part or all of the period beginning on 1st January 1986 and ending on 5th April 1993; and
is indistinguishable from the employment of the earner in question except by reference to the identity of the employer, or F3, subject to paragraph (2A), the identity of the person employed, or both.
For the purposes of paragraph (2)(b) the employment of the earner in question is distinguishable from the employment mentioned in paragraph (2)(a) if—
throughout the period beginning on 6th April 1988 and ending on the last day of the last tax week in respect of which the payment is claimed it is a condition for admission to membership of the scheme other than the scheme in question that the earner has attained a minimum age or completed a minimum period of service, or both, and on 6th April 1988 the earner in question had not attained that age or completed that period of service; and
membership of the scheme in question is open only to earners who do not satisfy that condition or those conditions.
Paragraph (2) does not apply if both the following conditions are satisfied.
The employment referred to in paragraph (2) is distinguishable from the employment of the earner in question because there has been a change in the identity of the employer.
If the employment of the earner in question were contracted-out by reference to the scheme other than the scheme in question, payments under section 7 would be made to that other scheme in respect of the earner in question.
This paragraph applies to a case where the employment in question could have been contracted-out employment by reference to a scheme other than the scheme in question during part or all of the period beginning on 1st January 1986 and ending on 5th April 1993, but was not, because of a choice made by, or a failure to make a choice on the part of, the earner in question.
This paragraph applies to a case where the earnings in question are either—
earnings in relation to which the earner, being a married woman or widow, is liable to make contributions at a reduced rate in accordance with an election which she has made and which is still operative; or
earnings in relation to which contributions have not been paid or treated as paid, or the earner has paid contributions which are treated as not paid under regulation 38(1) and (2)(a) of the Social Security (Contributions) Regulations 1979 M1.
This paragraph applies to any case where a claim for the payment under section 7 of the Act has not been made in accordance with regulation 4 below before 6th April 2001.
In a case where a scheme has ceased, on any date after 31st December 1985, to be a contracted-out scheme, no payment shall be made under section 7 of the Act to the trustees or managers of that scheme.
In a case where—
the scheme in question is a money purchase contracted-out scheme;
a period during which the earner in question has been in an employment which is or was contracted-out by reference to that scheme has terminated; and
effect has been given to that earner's protected rights under that scheme,
no payment shall be made under section 7 of the Act to the trustees or managers of that scheme in respect of that earner in relation to any tax week falling within the period referred to in sub-paragraph (b) of this paragraph, except as provided by paragraph (12).
Where, but for the provisions of paragraph (6), or paragraphs (5) and (6), a payment would have fallen to be made under section 7 of the Act to the trustees or managers of a money purchase contracted-out scheme, a payment of the same amount shall, subject to paragraph (8), be made, in the circumstances described in paragraphs (9) and (11), to the persons described in paragraphs (10) and (12) (and in no other circumstances and to no other persons).
Where a payment would otherwise be required under paragraph (7), it shall not be required if the scheme in question has ceased to be a contracted-out scheme unless effect was given to the protected rights of the earner in question before the end of the tax year following that which included the date with effect from which the scheme ceased to be a contracted-out scheme.
Paragraph (10) applies where effect has been given to the earner's protected rights by the making of a transfer payment to a personal pension scheme or to another occupational pension scheme.
Where the personal pension scheme is an appropriate scheme or the occupational pension scheme is another money purchase contracted-out scheme, the payment shall be made to the trustees or managers of that personal pension scheme or occupational pension scheme.
Paragraph (12) applies where effect has been given to the earner's protected rights by the purchase of an annuity, or, where the scheme is still a contracted-out scheme, by the provision by the scheme of a pension.
Where—
the amount of the payment is at least 10 times as great as the lower earnings limit (within the meaning of section 1 of the Social Security Pensions Act 1975) for the tax year in which the Secretary of State first becomes aware that the relevant payment under section 7 falls to be made, or would fall to be made but for paragraph (5) or (6); and
the Secretary of State is satisfied that the amount paid will be applied fairly to increase the amount of the annuity or pension,
the payment shall be made (in the case of an annuity) to the insurance company from which the annuity has been purchased, or (in the case of a pension) to the trustees or managers of the scheme.
Annotations
Textual amendments
- F1
Words in reg. 3(1) substituted (6.4.2000) by The Personal and Occupational Pension Schemes (Incentive Payments) Amendment Regulations 2000 (S.I. 2000/749), regs. 1, 2(1)(a)
- F2
Words in reg. 3(2) inserted (27.6.90) by S.I. 1990/1142, regs. 1(2), 6(2)
- F3
Words in reg. 3(2)(b) inserted (26.1.1989) by S.I. 1988/2237, regs. 1, 2
- F4
Reg. 3(2A) inserted (26.1.1989) by S.I. 1988/2237, regs. 1, 2
- F5
Reg. 3(2B) inserted (27.6.1990) by S.I. 1990/1142, regs. 1(2), 6(3)
- F6
Reg. 3(4A) inserted (6.4.2000) by The Personal and Occupational Pension Schemes (Incentive Payments) Amendment Regulations 2000 (S.I. 2000/749), regs. 1, 2(1)(b)
Marginal citations
- M1
S.I. 1979/591, to which there are amendments not relevant to these Regulations.