Social Security Act 1990

Preservation of rights for persons opting out of schemes U.K.

5 (1) In Schedule 16 to the 1973 Act, in sub-paragraph (1) of paragraph 6 (short service benefit where member’s service in relevant employment terminates before normal pension age etc) for the words “service in relevant employment” there shall be substituted the words “pensionable service”.

(2) At the end of that paragraph there shall be added—

“(6) In any case where—

(a) the pensionable service of a member of a scheme terminated during the period beginning with 6th April 1988 and ending immediately before the coming into force of this sub-paragraph, otherwise than on the termination of his service in relevant employment, and

(b) during that period no payments in discharge of his rights under the scheme were made in consequence of that termination,

sub-paragraph (1) above shall be taken at all times on and after 6th April 1988 (the date on which section 15 of the Social Security Act 1986 came into force) to have had effect in relation to that member and his rights under the scheme with the amendment made by paragraph 5(1) of Schedule 4 to the Social Security Act 1990 (which substituted the words “pensionable service” for the words “service in relevant employment”).”

(3) In paragraph 15(4) of that Schedule (commutation of widow’s, widower’s or dependant’s benefit by the beneficiary) for the words “by the beneficiary” there shall be substituted the words “of that benefit”.

(4) In consequence of the amendment made by sub-paragraph (1) above—

(a) in paragraph 2(b) of that Schedule (definition of “long service benefit”) after the words “remains in relevant employment” there shall be inserted the words “, and continues to render service which qualifies him for benefits,”;

(b) in paragraph 17(1)(b) of that Schedule, for the words “relevant employment” there shall be substituted the words “pensionable service”;

(c) in Schedule 1A to the Pensions Act (revaluation of pensions and transfer values)—

(i) in paragraphs 1(1)(b), 2(2)(d) and 11(1)(b), sub-paragraph (ii) and the word “or” immediately preceding it shall cease to have effect;

(ii) in paragraphs 1(4) and 11(2), the words “ “relevant employment””shall be omitted; and

(iii) paragraph 12(1)(b) and the word “or” immediately preceding it shall cease to have effect.