Part IV U.K. Occupational Pensions

Extinguishment of liability of scheme for pensions secured by insurance policies or annuity contracts E+W+S

52D Guaranteed minimum pensions under contracted-out schemes - supplementary. E+W+S

(1) Where—

(a) guaranteed minimum pensions provided for a member or his widow under a contracted-out scheme have been wholly or partly secured as mentioned in section 52C above by a policy or a number of policies of insurance taken out with one or more companies or by an annuity contract or a number of annuity contracts entered into with one or more companies, or by both a policy or a number of policies and an annuity contract or a number of annuity contracts; and

[F1 (b) either—

(i) the transaction wholly or partly securing them was carried out before 1st January 1986 and discharged the trustees or managers of the scheme as mentioned in subsection (1) of that section; or

(ii) it is carried out on or after that date without any of the requirements specified in subsection (5)(a) to (c) of that section being satisfied in relation to it and the scheme has been wound up;] and

(c) any such company is unable to meet the liabilities under policies issued or securities given by it; and

(d) the combined proceeds of any policy or policies taken out as mentioned in section 52C above and of any annuity contract or annuity contracts entered into as there mentioned and of any cash sums paid or altemative arrangements made under the Policyholders Protection Act 1975 are inadequate to provide the whole of the amount secured,

the member and his widow shall be treated for the purposes of [F2 sections 29(1), 29A, 29B and 29C above] as [F3 only entitled to such part (if any) of his or her guaranteed minimum pension as] is provided by the proceeds mentioned in paragraph (d) above.

[(2)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

(4) Where a scheme has ceased by virtue of section 52C above to be liable to provide guaranteed minimum pensions for a member and his widow1, the duties imposed on the Occupational Pensions Board by sections 40(2), 41 and 49 above shall cease to subsist in relation to those pensions.

(5) Any question whether a cash sum paid or an altemative arrangement made under the Policyholders Protection Act 1975 provides the whole or any part of the guaranteed minimum pension to which an earner or his widow was entitled under a contracted-out scheme is to be determined for the purposes of this Act by the Secretary of State.

(6) The Secretary of State may make any determination required by subsection (5) above on such basis as he considers appropriate.]

Textual Amendments

F1 S. 52D(1)(b) substituted retrospectively by Social Security Act 1986 (c. 50), Sch. 10, para. 27(1)(a)

F2 Words substituted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6) Sch. 2, para. 33

F3 Words substituted retrospectively by Social Security Act 1986 (c. 50), Sch. 10, para. 27(1)(b)

F4 S. 52D(2)(3) repealed by Social Security Act 1986 (c. 50), Sch. 11

Modifications etc. (not altering text)

C1 S. 52D(1) to be construed (with effect from 6.4.1988) as if references to “widow” included references to widower (and with consequential modifications) by virtue of Social Security Act 1986 (c. 50), s.9(4)(h)