Part IIIE+W+S Certification of Pension Schemes and Effects on Members’ State Scheme Rights and Duties

Modifications etc. (not altering text)

C2Pt. III: power to modify conferred (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 149(1), 180(1); S.I. 1996/778, art. 2(6); S.I. 1997/664, art. 2(3), Sch. Pt. 2

Chapter IE+W+S Certification

Alteration of scheme rules after certificationE+W+S

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

[F1(1)Subject to subsection (2), where a contracting-out certificate has been issued, no alteration of the rules of the relevant scheme shall be made so as to affect any of the matters dealt with in this Part (other than sections 18, 19 and 43 to 45, and sections 26 to 33 so far as they apply to personal pension schemes) or Chapter III of Part IV or Chapter II of Part V without the consent of the Board.

(2)Subsection (1) does not apply—

(a)to an alteration consequential on a provision of the M1Health and Social Security Act 1984, the M2Social Security Act 1985 or the M3Social Security Act 1986 (or any provision of this Act derived from any such provision); or

(b)to an alteration of a prescribed description.

(3)Subject to subsection (4), any alteration to which subsection (1) applies shall be void if it is made without the consent of the Board.

(4)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.

(5)This section shall continue in force in relation to a scheme after it has ceased to be contracted-out so long as—

(a)any person is entitled to receive, or has accrued rights to, a guaranteed minimum pension under the scheme, or

(b)any person has protected rights under it or is entitled to any benefit giving effect to protected rights under it.

(6)The reference in subsection (5) to a person entitled to receive a guaranteed minimum pension includes a reference to a person so entitled by virtue of being the widower of an earner only in such cases as may be prescribed.]

[F1(1)Except in prescribed circumstances, the rules of a contracted-out scheme cannot be altered unless the alteration is of a prescribed description.

(2)Regulations made by virtue of subsection (1) may operate so as to validate with retrospective effect any alteration of the rules which would otherwise be void under this section.

(3)References in this section to a contracted-out scheme include a scheme which has ceased to be contracted-out so long as any person is entitled to receive, or has accrued rights to, any benefits under the scheme attributable to a period when the scheme was contracted-out.

(4)The reference in subsection (3) to a person entitled to receive benefits under a scheme includes a person so entitled by virtue of being the widower of an earner only in such cases as may be prescribed.]

Textual Amendments

F1S. 37 substituted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 39; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II

Modifications etc. (not altering text)

Commencement Information

I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Marginal Citations

38 Alteration of rules of appropriate schemes.E+W+S

(1)Where an appropriate scheme certificate has been issued, no alteration of the rules of the relevant scheme shall be made so as—

(a)to affect any of the matters dealt with in sections 26 to 33; or

(b)to cause the scheme to take a different permitted form from that previously taken,

F2...

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)Subsection (1) does not apply to an alteration of a prescribed description.

(3)Subject to subsection (4), any alteration to which subsection (1) applies shall be voidF3....

(4)[F4Regulations made by virtue of subsection (2) may] operate so as to validate with retrospective effect any alteration of the rules which would otherwise be void under this section.

(5)This section shall continue in force in relation to a scheme after it has ceased to be an appropriate scheme so long as any person has protected rights under the scheme.

(6)The reference in subsection (1)(b) to a permitted form is to one of the following forms, namely—

(a)an arrangement for the issue of insurance policies or annuity contracts;

(b)a unit trust scheme of a kind mentioned in Part I of Schedule 1 to the M4Personal Pension Schemes (Appropriate Schemes) Regulations 1988 which [F5is an authorised unit trust scheme];

(c)an arrangement for the investment of contributions in an interest-bearing account (including shares in or deposits with a building society (within the meaning of the M5Building Societies Act 1986));

[F6(d)an open-ended investment company within the meaning of the Open-Ended Investment Companies Regulations 2001.]

[F7(6A)“Authorised unit trust scheme” has the meaning given in Part 17 of the Financial Services and Markets Act 2000 and includes any scheme which is, as a result of an order made under section 426 of that Act making transitional provisions, treated as falling within that meaning.]

F8(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .