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Section 39.
Commencement Information
I1Schs. 1-4 in force at 7.2.1994 by S.I. 1994/86, art. 2
1(1)In relation to employments which are or at any time have been contracted-out employments, and to the operation of schemes by reference to which employments are or have been contracted-out, regulations may make provision generally as to the circumstances in which an earner’s employment is or is not to be treated as having begun, or as having come to an end and, in particular, as to the matters mentioned in sub-paragraphs (2) to (4).E+W+S
(2)Regulations may make provision for treating an earner’s employment which ends before a person succeeds to the business of the earner’s employer as having been employment under the employer’s successor.
(3)Regulations may make provision—
(a)for changes in an earner’s employment due to the death of an employer or another cause, or any cesser of contracted-out employment so due, to be disregarded; or
(b)for employment under one employer to be treated as a continuation of that under another and any contracting-out certificate issued to, or election made by, the former employer to be treated as issued to or made by the latter.
(4)Regulations may also make provision—
(a)for temporary interruptions in an earner’s employment or contracted-out employment to be disregarded; and
(b)for the employment in either case to be treated as continuing during the interruption.
(5)References in this paragraph to an earner’s employment beginning or ending shall include references to his employment becoming or ceasing to be contracted-out employment.
2(1)Subject to sub-paragraph (2), regulations may enable the [F1Inland Revenue] to determine in prescribed circumstances that an earner, or any group of earners whose employment falls within a particular category or description of contracted-out employments, has been in such employment from a date (“the determined date”) earlier than would otherwise be the case.E+W+S
(2)The determined date for any earner may not be earlier than—
(a)the date on which his relevant employment began, or
(b)the date on which a contracting-out certificate was issued in respect of it,
whichever is the later.
Textual Amendments
F1Words in Sch. 2 para. 2(1) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(2); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
3E+W+SProvision may be made by regulations for requiring an employer to give notice to the Secretary of State—
(a)when an earner’s employment becomes or ceases to be contracted-out employment; and
(b)when an earner’s employment in contracted-out employment begins or ends.
4(1)Regulations may modify the provisions of Part III (other than sections 18, 19 [F2, 67 and 68]), Chapter III of Part IV and Chapter II of Part V (except, so far as they relate to personal pension schemes, the members of such schemes or rights in respect of them) in their application to cases in which—E+W+S
(a)a person is employed at the same time in two or more employments (whether or not under the same employer); and
(b)at least one but not all of those employments is contracted-out employment,
with a view to enabling the employments to be treated either separately or together for the purposes of those provisions.
(2)Regulations may also modify those provisions in their application to cases in which—
(a)any description of benefit under a scheme is subject to a limit (however imposed) operating so as to prevent service beyond a particular length from qualifying for further benefits; or
(b)earners qualify for the benefits of a scheme by reference to both—
(i)service in employment which is contracted-out in relation to them by reference to the scheme; and
(ii)service in the same employment or another employment (whether or not contracted-out employment) before the scheme was contracted-out in relation to them or their employment.
(3)Regulations under this paragraph may include provision for securing that in the cases to which they apply an earner’s employment [F3which, apart from the regulations, would not be contracted-out employment is treated as contracted-out employment where any benefits provided under the scheme are attributable to a period when the scheme was contracted-out].
Textual Amendments
F2Words in Sch. 2 para. 4(1) substituted (6.4.2012) by Pensions Act 2007 (c. 22), s. 30(2)(b), Sch. 4 para. 59(2); S.I. 2011/1267, art. 2(b)(iii) (as substituted (20.3.2012) by S.I. 2012/911, art. 2(a))
F3Words in Sch. 2 para. 4(3) substituted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 84(b); S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
5(1)Regulations may make provision for requiring persons to furnish the [F4Inland Revenue] F5... with such information as [F4they] F5... may require for the purposes of [F6sections 37, 50 to 63 and 159(1) to (3) and (6)].E+W+S
(2)Regulations may provide that for the purposes of sections 50, 55 to 60 and 63 F7... (except as they so apply) the prescribed person shall be treated as the employer—
(a)of any employed earners who, in any period of service in contracted-out employment—
(i)have been paid earnings in any income tax week by more than one person in respect of different employments; or
(ii)have worked under the general control or management of a person other than their immediate employer, or
(b)of any other employed earners in the case of whom it appears to the Secretary of State that such provision is needed.
(3)Regulations may, F8..., provide—
(a)for dispensing with the payment of a premium where its amount would be inconsiderable;
F9(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)for treating part of a premium payable in prescribed circumstances in respect of a person as having been paid and for modifying the provisions mentioned in paragraph 4(1) in relation to a case in which such a part is so treated;
(d)for treating a premium wrongly paid or an overpayment in respect of a premium as paid (wholly or in part) in discharge of a liability for another premium or for contributions under Part I of the M1Social Security Contributions and Benefits Act 1992;
(e)for the return of premiums paid in error or, in prescribed circumstances, of premiums which the [F10Inland Revenue are] satisfied ought to be repaid;
(f)for the [F11Inland Revenue], in prescribed circumstances where a premium has been paid in respect of a person, to direct the payment out of the National Insurance Fund to that person or his estate of an amount equal to a prescribed part of the premium;
(g)for any other matters incidental to the payment, collection or return of premiums.
[F12and in this sub-paragraph and the following provisions of this paragraph “premium” means a contributions equivalent premium]
[F13(3A)Sub-paragraph (3B) applies in relation to a member of a contracted-out occupational pension scheme which is being wound up if, in the opinion of the [F14Inland Revenue]—
(a)the resources of the scheme are insufficient to meet the whole of the liability for the cash equivalent of the member’s rights under the scheme, and
(b)if the resources of the scheme are sufficient to meet a part of that liability, that part is less than the amount required for restoring his State scheme rights.
(3B)Where this sub-paragraph applies—
(a)regulations may provide for treating the member as if sections 46 to 48 or, as the case may be, section 48A(1) did not apply, or applied only to such extent as is determined in accordance with the regulations, and
(b)the amount required for restoring the member’s State scheme rights, or a prescribed part of that amount, shall be a debt due from the trustees or managers of the scheme to the [F15Inland Revenue].
(3C)Regulations may make provision—
(a)for determining the cash equivalent of a member’s rights under a scheme and the extent (if any) to which the resources of the scheme are insufficient to meet the liability for that cash equivalent,
(b)for the recovery of any debt due under sub-paragraph (3B)(b), and
(c)for determining the amount required for restoring a member’s State scheme rights including provision requiring the [F16Inland Revenue] to apply whichever prescribed actuarial table in force at the appropriate time is applicable.
(3D)Section 155 shall apply as if sub-paragraphs (3A) and (3B)(a), and regulations made by virtue of this sub-paragraph and sub-paragraph (3B)(b), were included among the provisions there referred to.
(3E)In sub-paragraphs (3A) and (3B), “State scheme rights”, in relation to a member of a scheme, are the rights for which, if the scheme had not been a contracted-out scheme, the member would have been eligible by virtue of section 44(6) of the Social Security Contributions and Benefits Act 1992 (earnings factors for additional pension).]
(4)The [F17Inland Revenue] may accept payments in connection with a case in which a premium or part of it is treated as having been paid.
F18(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F4Words in Sch. 2 para. 5(1) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(4)(a); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F5Words in Sch. 2 para. 5(1) repealed (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 84(c)(i), Sch. 7 Pt. III; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
F6Words in Sch. 2 Pt. I para. 5(1) substituted (6.4.2015) by Pensions Act 2007 (c. 22), s. 30(2)(b), Sch. 4 para. 59(3); S.I. 2011/1267, art. 3(a)(vi)
F7Words in Sch. 2 para. 5(2) repealed (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 84(d), Sch. 7 Pt. III; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
F8Words in Sch. 2 para. 5(3) repealed (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 141(2)(a)(i), 180(1), Sch. 7 Pt. III; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
F9Sch. 2 para. 5(3)(b) repealed (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 141(2)(a)(ii), 180(1), Sch. 7 Pt. III; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
F10Words in Sch. 2 para. 5(3)(e) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(4)(b)(i); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F11Words in Sch. 2 para. 5(3)(f) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(4)(b)(ii); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F12Words in Sch. 2 para. 5(3) added (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 141(2)(a)(iii), 180(1); S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
F13Sch. 2 para. 5(3A)-(3E) inserted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 141(2)(b), 180(1); S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
F14Words in Sch. 2 para. 5(3A) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(4)(c); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F15Words in Sch. 2 para. 5(3B)(b) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(4)(c); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F16Words in Sch. 2 para. 5(3C)(c) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(4)(c); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F17Words in Sch. 2 para. 5(4) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(4)(c); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F18Sch. 2 para. 5(5) repealed (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 141(2)(c), 180(1), Sch. 7 Pt. III; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II
Marginal Citations
6(1)Regulations may modify Chapters I and III of Part III (other than sections 8, 18, 19, 35 to 39 [F19, 67 and 68]), Chapter III of Part IV and Chapter II of Part V (except so far as they relate to personal pension schemes, the members of such schemes or rights in respect of them) in their application to employments in the case of which earners under different employers qualify by virtue of their respective service in those employments for the benefits of the same occupational pension scheme.E+W+S
(2)Regulations under this paragraph may provide for the adjustment of rights and liabilities as between employers, earners and the trustees or managers.
Textual Amendments
F19Words in Sch. 2 para. 6(1) substituted (6.4.2012) by Pensions Act 2007 (c. 22), s. 30(2)(b), Sch. 4 para. 59(4); S.I. 2011/1267, art. 2(b)(iii) (as substituted (20.3.2012) by S.I. 2012/911, art. 2(a))
7(1)This paragraph applies to the following classes of employments, that is to say employments in which an earner’s service qualifies him for benefit under—E+W+S
(a)section 26 of the M2Fire Service Act 1947;
(b)the M3Police Pensions Act 1976;
(c)sections 7 to 10 of the M4Superannuation Act 1972.
(2)Where employment would fall within one of the classes specified in sub-paragraph (1) but for rules having effect under section 2 of the M5Superannuation (Miscellaneous Provisions) Act 1948 (persons transferring to and from certain employments), the employment shall be treated as falling within that class and not within any other class to which this paragraph applies.
(3)Where a local Act contains a provision for the payment of benefits in respect of service which but for the provision would qualify a person for such benefits under the enactments specified in sub-paragraph (1), that provision shall be deemed to be included among the enactments so specified.
(4)In relation to employments of any class to which this paragraph applies, the Secretary of State may by regulations—
(a)direct that elections with a view to the issue, variation or surrender of contracting-out certificates shall be made and revoked [F20by the Inland Revenue] instead of by the employer;
(b)make provision for other things which by or under the provisions mentioned in paragraph 4(1) are required or authorised to be done by or to an employer to be done instead by or to the [F21Inland Revenue];
(c)make provision for treating any employments of the class in question as employments under a single employer different from the employer in any other employment;
(d)make provision for the recovery by the [F22Inland Revenue] of any state scheme premium from any person where it has been paid by the [F22Inland Revenue] instead of by that person.
Textual Amendments
F20Words in Sch. 2 para. 7(4)(a) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(5)(a); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F21Words in Sch. 2 para. 7(4)(b) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(5)(b); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F22Words in Sch. 2 para. 7(4)(d) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 62(5)(b); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
Marginal Citations
8E+W+SRegulations may make provision—
(a)for any incidental matters connected with the provisions mentioned in paragraph 4(1) in relation to any employment which is, has been or may become contracted-out employment; and
(b)for any incidental matters otherwise connected with those provisions.
F239E+W+S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F23Sch. 2 Pt. 2 omitted (6.4.2012) by virtue of The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) (No.2) Order 2011 (S.I. 2011/1730), arts. 1(2)(b), 5(24)