Social Security Pensions Act 1975

Supplementary E+W+S

48 Guaranteed minimum pensions to be inalienable. E+W+S

(1) Where a person is entitled or prospectively entitled to a guaranteed minimum pension under an occupational pension scheme [F1 or to payments giving effect to protected rights under such a scheme] and the person’s entitlement is in respect of his or another person’s service in employment which was contracted-out by reference to that scheme—

(a) every assignment of or charge on that pension [F1 or those payments]; and

(b) every agreement to assign or charge that pension [F1 or those payments],

shall be void.

[F2 (1A) In subsection (1) above, the references to assignments of and agreements to assign a guaranteed minimum pension do not include references to any assignment of or agreement to assign a policy of insurance or annuity contract in accordance with conditions prescribed by regulations under section 52C(4)(b) below.].

(2) Subsection (1) above has effect whether or not the assignment, charge or agreement was made at a time when the employment was contracted-out employment or the scheme was a contracted-out scheme in relation to the employment.

(3) On the bankruptcy of a person who is entitled or prospectively entitled as mentioned in subsection (1) above, [F3 nothing whose assignment is or would be made void by that subsection shall] pass to any trustee or other person acting on behalf of his creditors.

(4) In the application of this section to Scotland—

(a) references to assignment shall be construed as references to assignation and “assign” shall be construed accordingly; and

(b) the reference to a person’s bankruptcy shall be construed as a reference to the sequestration of his estate or the appointment on his estate of a judicial factor under section 14 of the M1 Bankruptcy (Scotland) Act 1913 or section 15 of the M2 Solicitors (Scotland) Act 1958.

Textual Amendments

F1 Words inserted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 8(a)

F2 S. 48(1A) inserted by Social Security Act 1985 (c. 53), Sch. 5, para. 31

F3 Words substituted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 8(b)

Modifications etc. (not altering text)

C1 S. 48 modified, where guaranteed minimum pension rights have been transferred from schemes which are or were contracted-out salary related schemes, by S.I. 1985/1323, Sch. 3, para. 8, with effect from 23.9.1985, and where such rights have been transferred from appropriate policies, by S.I. 1985/1323, Sch. 3A, para. 5, with effect from 27.7.1987

C2 Bankruptcy (Scotland) Act 1913 (c. 20) was repealed (with effect from 29.12.1986) by Bankruptcy (Scotland) Act 1985 (c. 66)

C3 The reference to s. 15 of Solicitors (Scotland) Act 1958 is to be construed, by virtue of Solicitors (Scotland) Act 1980 (c. 46), Sch. 6, para. 2, as a reference to s. 41 of the latter Act

Marginal Citations

M1 1913 c. 20.

M2 1958 c. 28.

49 Supervision of schemes which have ceased to be contracted-out. E+W+S

(1) The provisions of this section shall apply in respect of any occupational pension scheme, other than a public service scheme, where—

(a) the scheme has ceased to be a contracted-out scheme otherwise than by being wound up; and

[F4 (b) there has not been a payment—

(i) under section 44 above in respect of each person entitled to receive, or having accrued rights to, guaranteed minimum pensions under the scheme; or

(ii) of a premium under section 44ZA above in respect of each person (not being a person in respect of whom a premium is not payable by virtue of regulation 18(2A) of the Occupational Pension Schemes (Contracting-out) Regulations 1984) who has protected rights under it or is entitled to any benefit giving effect to protected rights under it or is entitled to any benefit giving effect to protected rights under it;]

and those provisions shall continue to apply so long as there is any such person [F5 (not being a person in respect of whom a premium is not payable by virtue of regulation 18(2A) of the Occupational Pension Schemes (Contracting-out) Regulations 1984)].

Textual Amendments

F4 S. 49(1)(b) substituted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 9(a)

F5 Words inserted (with effect from 6.4.1988) by The Personal and Occupational Pensions Schemes (Modification of Enactments) Regulations 1987 (S.I. 1987/1116), reg. 5(2)

Modifications etc. (not altering text)

C4 S. 49(1) to be construed (with effect from 6.4.1988) as if reference to a person entitled to receive a guaranteed minimum pension includes earner's widower by virtue of, and only in cases prescribed under, Social Security Act 1986 (c. 50), s. 9(6); construction amplified in S.I. 1984/380, reg. 33D

C5 S. 49(1) has effect (with effect from 27.7.1987) in relation to personal pension schemes subject to the modifications in para. 1 of Sch. 2 of S.I. 1987/1116; as so modified, s. 49(1) is set out below

C6 The reference to s. 15 of Solicitors (Scotland) Act 1958 is to be construed, by virtue of Solicitors (Scotland) Act 1980 (c. 46), Sch. 6, para. 2, as a reference to s. 41 of the latter Act

[F6 49 (1) The provisions of this section shall apply in respect of any personal pension scheme, where—

(a) the scheme has ceased to be an appropriate scheme otherwise than by being wound up; and

(b) there has not been a payment of a premium under section 5 of the Social Security Act 1986 in respect of each person (not being a person in respect of whom a premium is not payable by virtue of regulation 3 of the Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987) who has protected rights under it or is entitled to any benefit giving effect to protected rights under it;

and those provisions shall continue to apply so long as there is any such person (not being a person in respect of whom a premium is not payable by virtue of regulation 3 of the Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987).]

(2) The Occupational Pensions Board shall be under a duty to satisfy themselves from time to time as to—

(a) the matters in respect of which they are required to be satisfied for contracting-out purposes under sections 40(2) and 41(1) above [F7 or, by virtue of subsections (2A) and (2B) of section 32 above, paragraph 10(1) of Schedule 1 to the Social Security Act 1986]; and

(b) the soundness and adequacy of any investments held for the purposes of the scheme (so far as relevant to the considerations of the said section 41(1));

and where the scheme was contracted-out subject to such conditions as are referred to in section 41(2) and (5) above those conditions shall continue to be binding notwithstanding that there is no contracting-out certificate in force.

[F8 (2A) Where in the case of any scheme the Board have issued a certificate under subsection (1C) of section 44 above which has not been cancelled under subsection (1D) of that section, or a certificate under subsection (2) of section 44ZA above which has not been cancelled under subsection (3) of that section, the Board shall not be under the duty which would otherwise be imposed on them by subsection (2) above in relation to that scheme.]

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

(4) In so far as the Board are not satisfied as mentioned in subsection (2)(b) above, they may by order modify the scheme’s rules or by order direct the scheme’s trustees or managers to take such steps as the order may specify, in either case with a view to ensuring that the guaranteed minimum pensions under the scheme are adequately secured to its beneficiaries, both present and future.

(5) If it appears to the Board that there has been, or is likely to be, a breach of any rule of the scheme relating to the matters dealt with in sections [F10 32] to 41 above, the Board may take such steps as they think expedient with a view to remedying or preventing the breach; and for this purpose they may themselves take any proceedings for enforcement of the rules which would be open to a person as an actual or prospective beneficiary under the scheme, or as one of its trustees or managers, or as being otherwise concerned with the scheme or its benefits, and may assume the conduct of proceedings for enforcement brought by any such person.

(6) Where the Board are satisfied that the guaranteed minimum pensions under the scheme are not, and cannot be, adequately secured to its beneficiaries, they may by order—

(a) require the scheme to be wound up in accordance with such directions in that behalf as may be contained in the order; or

(b) direct the trustees or managers to take such steps for the winding-up of the scheme as the order may specify;

and, on a winding-up in pursuance of an order of theirs under this subsection, the same powers shall be exercisable by the Board in relation to the scheme’s winding-up rules as are exercisable by them under subsection (5) above in relation to other rules.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

Textual Amendments

F6 S. 49(1) has effect (with effect from 27.7.1987) in relation to personal pension schemes subject to the modifications in para. 1 of Sch. 2 of S.I. 1987/1116; as so modified, s. 49(1) is set out above

F7 Words inserted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 9(b)

F8 S. 49(2A) inserted (with effect from 1.11.1986) by Social Security Act 1986 (c. 50), Sch. 10, para. 24

F9 S. 49(3)(7) repealed by Social Security Act 1986 (c. 50), Sch. 10, para. 19

F10 “32” substituted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 9(b)

Modifications etc. (not altering text)

C7 S. 49(2)(2A) has effect (with effect from 27.7.1987) in relation to personal pension schemes subject to the modifications in paras. 2 and 3 of Sch. 2 to S.I. 1987/1116

C8 S. 49(5) has effect (with effect from 27.7.1987) in relation to personal pension schemes subject to the substitution of “Schedule 1 to the Social Security Act 1986” for the words from “sections” to “above”; S.I. 1987/1116, reg. 3(2), Sch. 2 para. 4

C9 Reference to guaranteed minimum pensions to be construed (with effect from 6.4.88) as including reference to guaranteed minimum pension of earner's widower by virtue of, and only in cases prescribed under, Social Security Act 1986 (c. 50), s. 9(6)

50 Alteration of rules of contracted-out schemes. E+W+S

(1) Where in respect of any employment a contracting out certificate has been issued, no alteration of the rules of the relevant contracted-out scheme shall be made so as to affect any of the matters dealt with in this Part of this Act without the consent of the Occupational Pensions Board [F11 unless it is an alteration to which this subsection does not apply]; and subject to subsection (2) below any [F12 alteration to which this subsection applies] made without that consent shall be void.

[F13 (1A) Subsection (1) above does not apply—

(a) to an alteration consequential on a provision of the Health and Social Security Act 1984, the Social Security Act 1985 or the Social Security Act 1986; or

(b) to an alteration of a prescribed description.]

(2) A consent given by the Board for the purposes of this section shall, if and to the extent that the Board so direct, operate so as to validate with retrospective effect any alteration of the rules which would otherwise be void under this section.

(3) This section shall continue in force in relation to a scheme after it has ceased to be contracted-out so long as any person is entitled to receive, or has accrued rights to, a guaranteed minimum pension under the scheme [F14 or any person has protected rights under it or is entitled to any benefit giving protected rights under it].

Textual Amendments

F11 Words inserted by Social Security Act 1986 (c. 50), Sch. 10, para. 25(a)

F12 Words substituted by Social Security Act 1986 (c. 50), Sch. 10, para. 25(a)

F13 S. 50(1A) inserted by Social Security Act 1986 (c. 50), Sch. 10, para. 25(b)

F14 Words added (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 10

Modifications etc. (not altering text)

C10 S. 50 has effect (with effect from 27.7.1987) in relation to personal pension schemes subject to the modifications in reg. 3(4)-(7) of S.I. 1987/1116

C11 S. 50(1)(2) applied by Social Security Act 1980 (c. 30), s. 3(10)

C12 S. 50(3) to be construed (with effect from 6.4.1988) as if reference to a person entitled to receive a guaranteed minimum pension includes earner's widower by virtue of, and only in cases prescribed under, Social Security Act 1986 (c. 50), s. 9(6); construction amplified in S.I. 1984/380, reg. 33D

51 Information as to guaranteed minimum pensions. E+W+S

The Secretary of State may from time to time furnish the trustees or managers of an occupational pension scheme [F15 which is not a money purchase contracted-out scheme] and such other persons as may be prescribed with information as to the amount of the guaranteed minimum pension to which it appears to him that any person is immediately or prospectively entitled under the scheme or as to any other matter required for calculating that amount.

Textual Amendments

F15 Words inserted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 6(1)(j)

[F16 51A Refusal and cancellation of contracting-out certificates. E+W+S

(1) This subsection applies in any case where—

(a) a contracting-out certificate (the “first certificate”) has been surrendered by an employer or cancelled by the Occupational Pensions Board; and

(b) at any time before the expiry of the period of twelve months beginning with the date of the surrender or cancellation, that or any connected employer, with a view to the issue of a further contracting-out certificate, makes an election in respect of any employment which was specified by virtue of section 31(1)(a) of this Act in the first certificate.

(2) This subsection applies in any case where—

(a) a contracting-out certificate (the “first certificate”) has been surrendered by an employer or cancelled by the Board;

(b) a further contracting-out certificate has been issued, after the surrender or cancellation of the first certificate but before the expiry of the period of twelve months beginning with the date of the surrender or cancellation, in respect of any employment which was specified by virtue of section 31(1)(a) of this Act in the first certificate; and

(c) the Board have formed the opinion that had they been aware of all the circumstances of the case at the time when the further contracting-out certificate was issued they would have been prevented by subsection (4) below from issuing it.

(3) Subsections (1) and (2) above apply whether or not the occupational pension scheme by reference to which the employment concerned with contracted-out employment by virtue of the first certificate is the same as the scheme by reference to which the employment—

(a) would be contracted-out employment if the further contracting-out certificate were issued; or

(b) is contracted-out employment by virtue of the further contracting-out certificate.

(4) In a case to which subsection (1) above applies, the Board shall not give effect to the election referred to in that subsection by issuing a further contracting-out certificate unless they consider that, in all the circumstances of the case, it would be reasonable to do so.

(5) In a case to which subsection (2) above applies, the Board may, before the expiry of the period of twelve months beginning with the date on which the further contracting-out certificate was issued, cancel the further contracting-out certificate.

(6) Where a contracting-out certificate is cancelled under subsection (5) above the provisions of this Act and of any regulations and orders made under it shall have effect as if the certificate had never been issued.

(7) This section does not apply in any case where the surrender or cancellation of the first certificate occurred before 22nd July 1981.

(8) Where the further contracting-out certificate referred to in paragraph (b) of subsection (2) above was issued before the commencement of this section, then—

(a) paragraph (c) of that subsection shall have effect as if this section had been in force at the time when the further contracting-out certificate was issued; and

(b) subsection (5) above shall have effect as if the reference to the date of issue of that certificate were a reference to the commencement of this section.

(9) Regulations may make such supplemental provision in relation to cases falling within subsection (1) or (2) above as the Secretary of State considers necessary or expedient.

(10) Without prejudice to subsection (9) above, regulations may make provision, in relation to any case in which the Board have cancelled a contracting-out certificate under subsection (5) above, preventing the recovery by the employer concerned (whether by deduction from emoluments or otherwise) of such arrears which he is required to pay to the Secretary of State in respect of an earner’s liability under [F17 section 6(3) of the Contributions and Benefits Act] as may be prescribed.

(11) For the purposes of subsections (1) and (2) above an employment (the “second employment”) in respect of which—

(a) an election of the kind referred to in subsection (1)(b) above has been made; or

(b) a further contracting-out certificate of the kind referred to in subsection (2)(b) above has been issued;

and an employment (the “first employment”) which was specified by virtue of section 31(1)(a) of this Act in the first certificate shall be treated as one employment if, in the opinion of the Board,—

(i) they are substantially the same, however, described; or

(ii) the first employment fall wholly or partly within the description of the second employment or the second employment falls wholly or partly within the description of the first employment.

(12) Regulations shall prescribe the cases in which employers are to be treated as connected for the purposes of this section.]

(13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18

Textual Amendments

F16 S. 51A inserted by Social Security and Housing Benefits Act 1982 (c. 24), s. 40

F17 Words substituted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), Sch. 2, para. 32

F18 Ss. 1–10, 12–16A, 18–21, 23–25, 51A(13), 60(1)(a), words in s. 60A, s. 62(1) and (3), words in s. 64(2), s. 65(4), words in s. 66(2)(a) and (b); Sch. 1; Sch. 4, paras. 35–46, 49, 50, 53–64, 66, 67 repealed (1.7.1992) on consolidation by Social Security (Consequential Provisions) Act 1992 (c. 6)

52 Contracting-out regulations. E+W+S

Schedule 2 to this Act shall have effect for enabling regulations to be made in relation to the operation and administration of this Part of this Act.