Regulation 4 Modifications of Part III of the Pensions Act where transfer payments are made to salary related contracted-out schemes or section 49 salary related schemes

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

reg. 4(1)(6)(b) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(3)
reg. 4(1) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(4)
reg. 4(2) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(5)
reg. 4(3) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(6)
reg. 4(4) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(7)
reg. 4(5) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(8)
reg. 4(6) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(9)
reg. 4(7) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(10)
reg. 4(8) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(11)
reg. 4(9) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 20(12)

(1)

Where a transfer payment has been paid by a paying scheme to a salary related contracted-out scheme or to a section 49 salary related scheme in accordance with regulations 2 and 3, Part III of the Pensions Act shall have effect as modified by paragraphs (2) to (9).

(2)

Section 26(2) shall have effect as if —

(a)

after “sections 33 and 36 below” there were inserted “or in compliance with the requirement set out in paragraph 2 of Schedule 3 to the Protected Rights (Transfer Payment) Regulations 1987”; and

(b)

at the end there were added “or, as the case may be, of that requirement.”.

(3)

Section 29(2) shall have effect as if there were inserted after the words added by paragraph 14(b)(ii) of Schedule 10 to the Act, “unless he is entitled to that guaranteed minimum pension by reason of paragraph 2 of Schedule 3 to the Protected Rights (Transfer Payment) Regulations 1987.”.

(4)

Section 35(1) shall have effect as if —

(a)

after “guaranteed minimum” there were inserted “both”; and

(b)

at the end there were added “and in relation to any pension provided by a scheme in compliance with the requirement set out in paragraph 2 of Schedule 3 to the Protected Rights (Transfer Payment) Regulations 1987, (guaranteed minimum pension to be paid by a scheme by reason of receiving a transfer payment).”.

(5)

In a case to which regulation 2(1) of the Abatement of Benefit Regulations applies, section 35(5) shall have effect as if any earnings factor to which regulation 2(2)(b) of those Regulations applies were, before being increased as mentioned in section 35(5), equal to the amount mentioned in regulation 2(2)(b) of them.

(6)

Section 35(7) shall have effect —

(a)

if the scheme from which the transfer payment was made was a personal pension scheme —

(i)

in respect only of each relevant year after the year in which minimum contributions, within the meaning given to that expression by section 1 of the Act, were last payable, and

(ii)

in a case to which regulation 2(1) of the Abatement of Benefit Regulations applies, as if any earnings factor to which regulation 2(2)(b) of those Regulations applies were, before being increased as mentioned in section 35(7), equal to the amount mentioned in regulation 2(2)(b) of them; or

(b)

if the scheme from which the transfer payment was made was a money purchase contracted-out scheme or a section 49 money purchase scheme, in respect only of each relevant year after the year in which contracted-out employment by reference to that scheme terminated.

(7)

Section 35(8) shall have effect as if there were added at the end “, so however that separate provision may be made for members as regards any guaranteed minimum pensions which have accrued to them by reason of paragraph 2 of Schedule 3 to the Protected Rights (Transfer Payment) Regulations 1987.”.

(8)

In a case to which regulation 2(1) of the Abatement of Benefit Regulations applies —

(a)

section 44(6)(a) shall have effect as if any earnings factor to which regulation 2(2)(b) of those Regulations applies were, before being increased as mentioned in section 44(6)(a), equal to the amount mentioned in regulation 2(2)(b) of them; and

(b)

section 45(3)(a) shall have effect as if any earnings factor to which regulation 2(2)(b) of those Regulations applies were, before being increased as mentioned in section 45(3)(a), equal to the amount mentioned in regulation 2(2)(b) of them.

(9)

Section 45(1) shall have effect as if after “accrued rights” there were inserted “,including any such pensions which have accrued to him by reason of paragraph 2 of Schedule 3 to the Protected Rights (Transfer Payment) Regulations 1987”.