Social Security Pensions Act 1975

42 Premium on termination of contracted-out employment. E+W+S

(1) This section has effect as to the cases in which [F1 the prescribed person] may pay a state scheme premium where—

(a) the earner’s service in contracted-out employment by reference to an occupational pension scheme [F2 which is not a money purchase contracted-out scheme] is terminated before he attains the scheme’s normal pension age or (if earlier) the end of the tax year preceding that in which he attains pensionable age; and

(b) he has served for less than [F3 two] years in contracted-out employment by reference to the scheme;

and a premium under this section may be referred to as a “contributions equivalent premium”.

(2) If—

(a) the earner’s service is terminated in any way except by his death or by the scheme’s ceasing to be contracted-out; and

(b) his period of service is not one in respect of which the scheme conforms to the appropriate extent with the preservation requirements of Part II of the M1 Social Security Act 1973,

[F4 the prescribed person] may elect to pay a contributions equivalent premium with a view to extinguishing the earner’s accrued rights to guaranteed minimum pensions under the scheme.

(3) If the earner’s service is terminated by his death and he dies leaving a widow, [F4 the prescribed person] may elect to pay a contributions equivalent premium with a view to extinguishing any such accrued rights in respect of the widow.

Textual Amendments

F1 Words substituted by Social Security Act 1985 (c. 53), Sch. 5, para. 25

F2 Words inserted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 6(1)(f)

F3 Word substituted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50) Sch. 10, para. 21

F4 Words substituted by Social Security Act 1985 (c. 53), Sch. 5, para. 25

Marginal Citations

M1 1973 c. 38.