The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016

Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations 1996

4.—(1) The Contracting-out (Transfer and Transfer Payment) Regulations 1996(1) are amended as follows.

(2) In regulation 1(2) (interpretation)—

(a) in the definition of “connected employer transfer” and “connected employer transfer payment”(2)—

(i) after sub-paragraph (b)(ii), omit the words from “and, in this definition” to the end of that paragraph; and

(ii) before the words “salary-related contracted-out scheme”, in each case where they occur, insert “scheme that was a”;

(b) in the definition of “overseas scheme”(3)—

(i) before “salary-related contracted-out scheme” insert “scheme that was a”; and

(ii) omit the words “nor one in respect of which section 53 of the 1993 Act applies by virtue of section 52(1) of that Act”;

(c) in the definition of “the principal appointed day”, for “7(2B)” substitute “181(1)”;

(d) omit the definition of “salary-related contracted-out scheme”(4); and

(e) for the definition of “section 9(2B) rights”(5), substitute—

““section 9(2B) rights” has the meaning given in regulation 2(1) of the Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015(6);”.

(3) In regulation 3 (transfers of guaranteed minimum pensions to salary-related contracted-out schemes)—

(a) in the heading, before “salary-related” insert “schemes that were”;

(b) in the opening words, before “salary-related” insert “scheme that was a”; and

(c) in paragraph (c), omit the words from the beginning to “the receiving scheme,”.

(4) In regulation 5 (transfer payments in respect of guaranteed minimum pensions to occupational and personal pension schemes)(7), in the opening words, omit “a salary-related contracted-out scheme,”.

(5) In regulation 7(1) (transfers of liability in respect of section 9(2B) rights – general)(8), in sub-paragraphs (a) and (b)—

(a) after “from a” insert “scheme that was a”; and

(b) omit “(or a scheme which was formerly a salary-related contracted-out scheme)”.

(6) In regulation 8 (transfer payments to salary-related contracted-out schemes in respect of section 9(2B) rights)—

(a) in the heading, before “salary-related” insert “schemes that were”;

(b) in the opening words, for “salary-related contracted-out scheme” substitute “scheme that was a salary-related contracted-out scheme which was contracted-out by virtue of section 9(2B) of the 1993 Act”; and

(c) in paragraph (c)(9), for the words from “which is contracted-out” to the end of that paragraph substitute “which was contracted-out in relation to the receiving scheme on or after the principal appointed day.”.

(7) In regulation 10 (transfer payments to occupational and personal pension schemes in respect of section 9(2B) rights)(10), in the opening words, omit “a salary-related contracted-out scheme,”.

(8) In regulation 12 (modifications of Part III of the 1993 Act on transfers of and transfer payments in respect of guaranteed minimum pensions from occupational pension schemes)—

(a) in the opening words, before “salary-related contracted-out scheme” insert “scheme that was a”;

(b) subject to article 5(1), omit paragraph (a); and

(c) subject to article 5(1), in paragraph (b), for “any other” substitute “a”.

(9) In regulation 13 (modifications of Part III of the 1993 Act on transfers from policies of insurance or annuity contracts)—

(a) in the opening words, before “salary-related contracted-out scheme” insert “scheme that was a”;

(b) subject to article 5(2), omit paragraph (a); and

(c) subject to article 5(2), in paragraph (b)(11) omit the words from the beginning to “to the receiving scheme,”.

(10) Omit regulation 13A (modification of section 12C of the 1993 Act where transfer payments are made to salary-related contracted-out schemes)(12).

(11) In Schedule 1 (further conditions for transfers of guaranteed minimum pensions)—

(a) for the heading to Part I substitute “Further Conditions for Transfer to a Scheme that was a Salary-related Contracted-out Scheme of Accrued Rights to Guaranteed Minimum Pensions”;

(b) in paragraph 2, omit sub-paragraph (a) and the “but” immediately following it; and

(c) for the heading to Part II substitute “Further Conditions for Transfer from an Appropriate Policy to a Scheme that was a Salary-related Contracted-out Scheme of Accrued Rights to Guaranteed Minimum Pensions”.

(12) In Schedule 2 (modifications of Part III of the 1993 Act)—

(a) in paragraphs 1 and 6(13) in the definition of “guaranteed minimum pension”, for “by an occupational pension scheme” substitute “by a scheme that was a salary-related contracted-out scheme”;

(b) in paragraphs 3 and 7, for “is contracted-out” substitute “was contracted-out”;

(c) subject to article 5(1), omit paragraph 3; and

(d) subject to article 5(2), omit paragraph 7.

(1)

S.I. 1996/1462.

(2)

These definitions were substituted by S.I. 2013/459.

(3)

This definition was substituted by S.I. 2007/814 and amended by S.I. 2007/3014.

(4)

A scheme that was a contracted-out scheme is now defined in the 1993 Act. See sections 7B and 181(1), inserted by the 2014 Act.

(5)

This definition was substituted by S.I. 1997/786 and amended by S.I. 1999/3198 and S.I. 2011/1246.

(6)

S.I. 2015/1677 as amended by article 28 of this instrument.

(7)

Regulation 5 was substituted by S.I. 2011/1245.

(8)

Regulation 7(1) was amended by S.I. 1997/786.

(9)

Regulation 8(c) was amended by S.I. 1997/786.

(10)

Regulation 10 was substituted by 2011/1245.

(11)

Regulation 13(b) was amended by S.I. 1997/1786.

(12)

Regulation 13A was inserted by S.I. 1997/786 and amended by S.I. 2011/1246.

(13)

Paragraphs 1 and 6 were substituted by S.I. 1997/786.