C1PART 1PENSION SCHEME MEMBERSHIP FOR JOBHOLDERS
C1CHAPTER 1EMPLOYERS' DUTIES
Transitional
I1I230Transitional period for defined benefits and hybrid schemes
1
Subsection (3) applies if, in relation to a person who on the employer's first enrolment date is a jobholder to whom section 3 applies, the conditions in subsection (2) are satisfied, and continue to be satisfied during the transitional period for defined benefits and hybrid schemes.
2
The conditions are that—
a
the jobholder has been employed by the employer for a continuous period beginning before the employer's first enrolment date,
b
at a time in that period before the employer's first enrolment date, the jobholder became entitled to become an active member of a defined benefits scheme or a hybrid scheme,
c
the jobholder is, and has always since that time been, entitled to become an active member of a defined benefits scheme or a hybrid scheme, and
d
the scheme to which that entitlement relates is a qualifying scheme, and any scheme to which it has related on or after the employer's first enrolment date has been a qualifying scheme.
3
F4If by the end of the prescribed period the employer has given the jobholder notice that the employer intends to defer automatic enrolment until the end of the transitional period for defined benefits and hybrid schemes , section 3 has effect in relation to the jobholder with the substitution for subsection (2) of the following subsection—
2
The employer must make prescribed arrangements by which the jobholder becomes an active member, with effect from the end of the transitional period for defined benefits and hybrid schemes, of an automatic enrolment scheme which is a defined benefits scheme or a hybrid scheme.
4
If F5a notice is given under subsection (3) and at any later time in the transitional period for defined benefits and hybrid schemes the condition in subsection (2)(c) or (d) ceases to be satisfied, subsection (5) applies instead of subsection (3) (and the day after the last day on which that condition is satisfied is referred to as “the closure date”).
5
Where this subsection applies, section 3 has effect in relation to the jobholder with the substitution for subsection (2) of the following subsection—
2
The employer must make prescribed arrangements by which the jobholder either—
a
becomes an active member, with effect from the closure date, of an automatic enrolment scheme which is a defined benefits scheme or a hybrid scheme, or
b
becomes an active member, with effect from the automatic enrolment date, of an automatic enrolment scheme which is a money purchase scheme F7or personal pension scheme.
6
If the jobholder becomes a member of a scheme under arrangements made under subsection (2)(b) of that section (as substituted by subsection (5))—
a
the employer's contributions are payable with effect from the automatic enrolment date;
b
any requirement of the scheme F8... for contributions to be payable by the jobholder does not apply in respect of the period of the jobholder's membership before the closure date;
c
regulations made for the purposes of section 3(2)(b) must secure that the jobholder may pay, within a period prescribed by the regulations, any contributions which would have been payable by the jobholder but for paragraph (b) of this subsection.
7
Where subsection (3) or (5) F1applies—
a
section 3(3) and (4) applies as if references to the automatic enrolment date were references to the F2day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.
F3b
section 4 applies as if—
i
the reference in subsection (1) to the employer's staging date were a reference to the employer's first enrolment date;
ii
in that subsection, for “the worker's automatic enrolment date is the deferral date” there were substituted “
the day with effect from which arrangements fall to be made by virtue of section 30 in respect of the jobholder is changed to the deferral date
”
;
iii
in subsections (4) to (6), references to the starting day were references to the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.
F67A
The Department may by regulations make provision about the form and content of a notice under subsection (3).
8
The transitional period for defined benefits and hybrid schemes is a prescribed period beginning with the day on which section 3 comes into operation.
9
In this section, the “employer's first enrolment date” means the first day on which section 3 applies in the case of the employer (where that day falls within the transitional period for defined benefits and hybrid schemes).
Pt. 1 applied (with modifications) (1.7.2012) by The Automatic Enrolment (Offshore Employment) Order 2012 (S.I. 2012/1388), arts. 1(1), 2 (with art. 5)