The Contracting-out (Transfer and Transfer Payment) Regulations 1996

Changes over time for: Section 1

Version Superseded: 06/04/2016

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Point in time view as at 13/03/2014. This version of this provision has been superseded.

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Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Contracting-out (Transfer and Transfer Payment) Regulations 1996 and shall come into force on 6th April 1997.

(2) In these Regulations—

“the 1993 Act" means the Pension Schemes Act 1993;

“accrued rights", for the purposes of Parts II and IV of these Regulations, has the meaning given to that expression in section 20(6) of the 1993 Act;

F1...

“appropriate policy" means a policy of insurance or an annuity contract such as is described in section 19(4) of the 1993 Act;

“appropriately secured" has the meaning given to that expression in section 19(3) of the 1993 Act;

[F2“connected employer transfer” and “connected employer transfer payment” mean respectively a transfer of guaranteed minimum pensions from a salary-related contracted-out scheme to a salary-related contracted-out scheme and a transfer payment in respect of section 9(2B) rights from a salary-related contracted-out scheme to a salary-related contracted-out scheme where either—

(a)

the transferring scheme and the receiving scheme relate to persons who are or have been in employment with the same employer; or

(b)

the transferring scheme and receiving scheme relate to persons who are or have been in employment with different employers, and the earner or person concerned is one of a group of persons in respect of whom transfers or transfer payments are being made from the transferring scheme to the receiving scheme and either—

(i)

the transfer or transfer payment is a consequence of a financial transaction between the employers, or

(ii)

each of the employers is one of a group of companies consisting of a holding company and one or more subsidiaries within the meaning of section 1159(1) of the Companies Act 2006 (meaning of “subsidiary” etc ),

and, in this definition, “salary-related contracted-out scheme” includes a scheme which was formerly a salary-related contracted-out scheme;.]

“earner" includes an earner who is not in employment at the time of the transfer or transfer payment;

F1...

“overseas arrangement" means a scheme or arrangement, other than an occupational pension scheme, which—

(a)has effect, or is capable of having effect, so as to provide benefits on termination of employment or on death or retirement to or in respect of earners; [F3and]

F4(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)is administered wholly or primarily outside the United Kingdom;

[F5“overseas scheme” means—

(a)

an occupational pension scheme which has its main administration outside the [F6EEA states ] ; or

(b)

a European pensions institution as defined in section 293(8) of the Pensions Act 2004 (functions of Regulator in relation to institutions administered in other [F7EEA states ] ),

but does not include a salary-related contracted-out scheme nor one in respect of which section 53 of the 1993 Act applies by virtue of section 52(1) of that Act.]

“the principal appointed day" has the meaning given to that expression in section 7(2B) of the 1993 Act M1;

F8...

“salary-related contracted-out scheme" means an occupational pension scheme which is contracted-out by virtue of satisfying section 9(2) of the 1993 Act M2;

“scheme" means an occupational pension scheme or a personal pension scheme;

[F9“section 9(2B) rights" are—

(a)rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions) under a scheme contracted-out by virtue of section 9(2B) of the 1993 Act, so far as attributable to an earner’s service in contracted-out employment on or after the principal appointed day; and

(b)where a transfer payment has been made to such a scheme, any rights arising under the scheme as a consequence of that payment which are derived directly or indirectly from—

(i)such rights as are referred to in sub-paragraph (a) under another scheme contracted-out by virtue of section 9(2B) of that Act; or

(ii) protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of F10 ... employment on or after the principal appointed day [F11where that transfer payment was made before the abolition date];]

“trustees", in relation to a scheme which is not set up or established under a trust, means the managers of the scheme.

Textual Amendments

F1Words in reg. 1(2) omitted (6.4.2012) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 6(2)(a)

F2Words in reg. 1(2) substituted (6.4.2013) by The Occupational and Stakeholder Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/459), regs. 1, 4(2)

F3Word in reg. 1(2) added (6.4.2012) by The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 6(2)(b)(i)

F4Words in reg. 1(2) omitted (6.4.2012) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 6(2)(b)(ii)

F5Words in reg. 1(2) substituted (6.4.2007) by Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/814), regs. 1, 6(2)

F6Words in reg. 1(2) substituted (26.11.2007) by Occupational Pension Schemes (EEA States) Regulations 2007 (S.I. 2007/3014), regs. 1, 2(a), Sch. paras. 5

F7Words in reg. 1(2) substituted (26.11.2007) by Occupational Pension Schemes (EEA States) Regulations 2007 (S.I. 2007/3014), regs. 1, 2(b), Sch. paras. 5

F8Words in reg. 1(2) omitted (6.4.2012) by virtue of The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246), arts. 1(2)(a), 9(2)(a)

F9 Words in Reg. 1(2) substituted (6.4.1997) by virtue of The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), reg. 1, Sch. 1 para. 7(2)(b)

F10Words in reg. 1(2) deleted (30.12.1999) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/3198), regs. 1(1), 2