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Occupational Pension Schemes (Contracting-out) Regulations 1996

S.I. 1996/1172 · Made 25 April 1996 · Extends to England, Wales and Scotland

Up to date with all changes known to legislation.gov.uk, revised to 31 December 2020.

PENSIONS

Made 25th April 1996

Laid before Parliament 29th April 1996

Coming into force 6th April 1997

The Secretary of State for Social Security in exercise of the powers set out in Schedule 1 and of all other powers enabling him in that behalf, after agreement with the Occupational Pensions Board that certain proposals within these Regulations need not be referred to it, by this instrument, which otherwise contains regulations made for the purpose of consolidating regulations revoked herein and regulations which are consequential upon enactments contained in Part III of the Pensions Act 1995M1 and are made before the end of the period of 6 months beginning with the coming into force of the enactments of that Part by virtue of which they are madeM2, hereby makes the following Regulations:C1

Annotations to the whole text

Marginal citations

M1

1995 c.26 .

M2

Seesection 185 of the Pension Schemes Act 1993 (c.48) and section 173 of the Social Security Administration Act 1992 (c.5), under which the requirement to consult does not apply where regulations are made only for the purpose of consolidating other regulations revoked by them or which are consequential upon a specified enactment and made before the end of six months from the coming into force of that enactment or where the Occupational Pensions Board agrees that regulations need not be referred to it.

Modifications

C1

Regulations: certain functions transferred (1.4.1999) by Social Security Contributions (Transfer of Functions, etc. ) Act 1999 (c. 2), ss. 1(2), 28(3), Sch. 2; S.I. 1999/527, art. 2(b), Sch. 2

Contents

  1. Part I: PRELIMINARY
  2. 1Citation, commencement and interpretation.
  3. Part II: CERTIFICATION OF EMPLOYMENTS
  4. 2Making of elections for the issue of contracting-out certificates
  5. 3Notices by employers of intended election.
  6. 4Consultation with trade unions.
  7. 5Time for making an election.
  8. 6Information to be included in an election.
  9. 7Amendment of an election.
  10. 8Issue of contracting-out certificates.
  11. 9Making of elections by employers for the variation or surrender of contracting-out certificates.
  12. 10Special provision with regard to elections for the issue, variation or surrender of certificates where (before the second abolition date) the employment remains contracted-out.
  13. 11Special circumstances in which the Secretary of State may determine earners to have been in contracted-out employment Repealed
  14. 12Special provision for holding companies and subsidiaries Repealed
  15. 13Special provision for public service pension schemes. Repealed
  16. 14Special provision for holders of pensionable judicial office. Repealed
  17. 15Further information and change of circumstances.
  18. 16Requirement to confirm relevant requirements are satisfied. Repealed
  19. Part III: SALARY-RELATED CONTRACTED-OUT SCHEMES
  20. 17Further contracting-out conditions for salary-related contracted-out schemes Repealed
  21. 18Requirement as to resources of the scheme. Repealed
  22. 19Lump sum benefits and salary-related contracted-out schemes. Repealed
  23. 20Payment of a lump sum instead of a pension payable under a relevant scheme Repealed
  24. 20ASuspension of section 9(2B) rights Repealed
  25. 21Payable age in salary-related contracted-out schemes. Repealed
  26. 22Each part of scheme to comply with section 12A of the 1993 Act.
  27. 23Requirements for meeting the statutory standard.
  28. 24Circumstances when actuary other than actuary appointed under section 47 of the 1995 Act may certify broad equivalence.
  29. 25Requirements for a reference scheme.
  30. 26Reference scheme: circumstances in which widows', widowers' or surviving civil partners' pensions need not be payable
  31. 27Modification applying to public service pension schemes.
  32. 28Service in a salary-related contracted-out scheme that does not qualify for further benefits
  33. 29Schemes which cannot be certified under section 9(2B) of the 1993 Act.
  34. Part IV: MONEY PURCHASE CONTRACTED-OUT SCHEMES
  35. 30Further contracting-out requirements for money purchase contracted-out schemes Repealed
  36. 31Deduction of minimum payments from earnings. Repealed
  37. 32Minimum payments to be made by employers to trustees. Repealed
  38. 33Calculation of minimum payments. Repealed
  39. 34Manner of calculation or estimation of earnings.
  40. 35Manner of payment of the age-related payment.
  41. 36Verification of age.
  42. 37Circumstances in which the age-related payments are not to be paid.
  43. 38Adjustment of the amount of the age-related payment.
  44. 39Circumstances in which schemes may change mode of contracting-out. Repealed
  45. 40Schemes which may not be contracted-out under section 9(3) of the 1993 Act. Repealed
  46. Part V: FURTHER REQUIREMENTS (ALL SCHEMES) AND OVERSEAS SCHEMES
  47. 41Provision of information as to resources. Repealed
  48. 42Alteration of rules of contracted-out schemes. Repealed
  49. 43Termination of periods of contracted-out employment. Repealed
  50. 44Notifications to the Secretary of State.
  51. 45Approval of arrangements for schemes ceasing to be contracted-out.
  52. 46Supervision of schemes that have ceased to contract out before the second abolition date.
  53. 47Circumstances in which the Secretary of State may vary or cancel a contracting-out certificate.
  54. 48Special provision for overseas schemes.
  55. Part VI: RESTORATION OF STATE SCHEME RIGHTS
  56. 49Insolvent schemes. Repealed
  57. 50Member to be informed of the option to restore state scheme rights. Repealed
  58. 50APersons to be regarded as members Repealed
  59. 51Contributions equivalent premiums Repealed
  60. 52Payment of a contributions equivalent premium. Repealed
  61. 53Payment in lieu of benefit and delay in refund for the purposes of employer’s right of recovery. Repealed
  62. 54Refund of a contributions equivalent premium. Repealed
  63. Part VII: GUARANTEED MINIMUM PENSIONS
  64. 55Scheme rules about guaranteed minimum pensions Repealed
  65. 56Special provision for revaluation of guaranteed minimum pensions secured by insurance policies or annuity contracts. Repealed
  66. 57Circumstances for the purposes of section 17(6) of the 1993 Act in which widower’s, widow’s or surviving civil partner's guaranteed minimum pension is to be payable. Repealed
  67. 58Period for the purposes of section 17(6) of the 1993 Act for which widower’s, widow’s or surviving civil partner's guaranteed minimum pension is to be payable. Repealed
  68. 59Statutory references to persons entitled to guaranteed minimum pensions application to widowers, widows of female earners and surviving civil partners Repealed
  69. 60Payment of a guaranteed minimum pension as a lump sum Repealed
  70. 61Suspension and forfeiture of guaranteed minimum pensions. Repealed
  71. 62Fixed rate revaluation of guaranteed minimum pensions for early leavers.
  72. 63Provision of information about guaranteed minimum pensions. Repealed
  73. 64Meaning of expression “connected employer".
  74. 65Modification of section 16 of the 1993 Act.
  75. 66Circumstances in which the modifications to the 1993 Act set out in regulation 65 apply.
  76. 67Modification of section 51(1) of the 1993 Act in relation to revaluation and schemes which have ceased to be contracted-out. Repealed
  77. 68Additional modifications relating to transfers and increases of earnings factors by 12 per cent.. Repealed
  78. 69Miscellaneous provisions affecting section 51 of the 1993 Act. Repealed
  79. 69AConversion of guaranteed minimum pensions into other benefits: actuarial equivalence Repealed
  80. 69BConversion of guaranteed minimum pensions into other benefits: survivors’ benefits
  81. Part VIII: TRANSITIONAL ARRANGEMENTS AND SAVINGS
  82. 70Transitional arrangements for certification of schemes. Repealed
  83. 71Elections for replacement certificates by salary-related schemes during transitional period. Repealed
  84. 72Transitional requirements as to sufficiency of resources of salary-related schemes. Repealed
  85. 73Transitional arrangements and savings for salary-related schemes which have begun winding up before the principal appointed day. Repealed
  86. 74Transitional arrangements in relation to the powers of the Secretary of State to approve arrangements for schemes ceasing to contract out before the principal appointed day. Repealed
  87. 75Transitional modifications to sections 35 and 36 of the 1993 Act. Repealed
  88. 76Prevention of recovery by employers of Class 1 contributions where certificate cancelled under section 36(3) of the 1993 Act.
  89. 76ATransitional arrangements for schemes contracted-out under section 9(2) of the 1993 Act to become contracted-out under section 9(3) of that Act Repealed
  90. 76BFormer requirements for consent for alterations of rules Repealed
  91. 77Savings in respect of State Scheme Premiums. Repealed
  92. Part IX: REVOCATIONS
  93. 78Revocations.
  94. Signature
  95. Schedule 1PROVISIONS CONFERRING POWERS EXERCISED IN MAKING THESE REGULATIONS
  96. Schedule 2REVOCATIONS
  97. Schedule 3: Further requirements for meeting the statutory standard
  98. 1Paragraph 1
  99. 2Paragraph 2
  100. 3Paragraph 3
  101. 4Paragraph 4
  102. 5Paragraph 5
  103. 6Paragraph 6
  104. 7Paragraph 7
  105. 8Paragraph 8
  106. 9Paragraph 9
  107. 10Paragraph 10
  108. 11Paragraph 11
  109. 12Paragraph 12
  110. 13Paragraph 13
  111. 14Paragraph 14
  112. 15Paragraph 15
  113. 16Paragraph 16
  114. 17Paragraph 17
  115. Explanatory note