OpenLegislation

The Unfunded Public Service Defined Benefits Schemes (Transfers) Regulations 2015

S.I. 2015/1614 · Made 14 August 2015

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Pensions

Made 14th August 2015

Laid before Parliament 17th August 2015

Coming into force in accordance with regulation 1(2)

The Treasury, in exercise of the powers conferred by sections 95(2A)(d), 95(5A), 182(2) and 182(3) of the Pension Schemes Act 1993f1, make the following Regulations.

In accordance with section 185(5A) of that Actf2 the Treasury have consulted such persons as they consider appropriate.

Annotations to the whole text

Footnotes

f1

1993 c. 48; sections 95(2A) and 95(5A) were inserted by the Pension Schemes Act 2015 (c. 8), section 68(3) and (4).

f2

Section 185(5A) was inserted by the Pension Schemes Act 2015, section 70(2).

Contents

  1. 1Citation, commencement and interpretation
  2. 2Requirements to be met by receiving arrangements
  3. Signature
  4. Explanatory note

1Citation, commencement and interpretation

(1)

These Regulations may be cited as the Unfunded Public Service Defined Benefits Schemes (Transfers) Regulations 2015.

(2)

These Regulations come into force on 7th September 2015 but have no effect in relation to an application made under section 95(1) of the 1993 Act before that date.

(3)

In these Regulations—

  • “the 1993 Act” means the Pension Schemes Act 1993;

  • “the 1996 Regulations” means the Contracting-out (Transfer and Transfer Payment) Regulations 1996f1;

  • “cash equivalent” means a cash equivalent mentioned in section 94(1) of the 1993 Act (right to cash equivalent)f2;

  • “overseas arrangement” has the meaning given in regulation 1(2) of the 1996 Regulations (interpretation)f3;

  • “section 9(2B) rights” has the meaning given in regulation 1(2) of the 1996 Regulations 1996f4.

2Requirements to be met by receiving arrangements

(1)

The prescribed circumstances referred to in section 95(5A) of the 1993 Act (prescribed circumstances regarding the construction of section 95(2A)) are that a member of an unfunded public service defined benefits scheme who has acquired a right to a cash equivalent has required the managers of the scheme to use the cash equivalent for subscribing to an overseas arrangementf1.

(2)

The prescribed requirements referred to in section 95(2A)(d) of the 1993 Act (cash equivalent to be used for subscribing to pension arrangements not mentioned in section 95(2A)(a) to (c)) are that the pension arrangement to which it is proposed to subscribe—

(a)

is an overseas arrangement;

(b)

if the cash equivalent is or includes the cash equivalent of accrued section 9(2B) rights, is one to which a transfer payment in respect of such rights may be made in accordance with regulation 11 of the 1996 Regulations (transfer payments to overseas schemes or arrangements in respect of section 9(2B) rights)f2;

(c)

if the scheme from which rights are transferred is registered under section 153 of the Finance Act 2004 (registration of pension schemes)f3, is a qualifying recognised overseas pension scheme as defined in section 169(2) of the Finance Act 2004 (recognised transfers)f4; and

(d)

may only provide benefits by virtue of the subscription that are not flexible benefitsf5.

Signature

Alun Cairns

Mel Stride

Two of the Lords Commissioners of Her Majesty’s Treasury

14th August 2015

Explanatory note

(This note is not part of the Regulations)

These Regulations prevent transfers under section 95 of the Pension Schemes Act 1993 (‘the 1993 Act’) from an unfunded public service defined benefits scheme to a qualifying recognised overseas pension scheme which can provide flexible benefits as a result of the transfer.

Section 68 of the Pension Schemes Act 2015 (‘the 2015 Act’) restricted, by means of amendments to section 95 of the 1993 Act, transfers out of unfunded public service defined benefits schemes. The restriction does not apply if the scheme to which the transfer is to be made satisfies requirements prescribed in regulations. Section 68(9) of the 2015 Act provides that regulations made under section 95(2)(d) and 95(5)(a) of the 1993 Act apply for the purposes of section 95(2A)(d) and 95(5A) of the 1993 Act respectively, until the coming into force of the first regulations made under the latter provisions. With the coming into force of these Regulations, the first made under section 95(2A)(d) and 95(5A) of the 1993 Act, regulation 12(4) and 12(5) of the Occupational Pension Schemes (Transfer Values) Regulations 1996 (S.I. 1996/1847) will no longer apply for the purposes of those provisions.

An impact assessment has not been produced for this instrument as no impact on the costs of business or the voluntary sector is foreseen.