Part IIISchemes that were contracted-out etc and Effects on Members’ State Scheme Rights ...

Chapter ISchemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc

Guaranteed minimum pensions

F124AConversion of guaranteed minimum pension into other benefits: introduction

F2(1)

In this section and sections 24B to 24H—

(a)

F3the rules specified in sections 13(1)(a) and (b) and 17(1) are referred to as the “guaranteed minimum pension rules”,

(b)

F4“GMP conversion” means amendment of the scheme in relation to an earner so that it no longer contains the guaranteed minimum pension rules,

F4“GMP conversion” means—

(i)

the amendment of a scheme in relation to an earner who was alive immediately before the conversion date so that it no longer contains the rules specified in sections 13(1)(a) and (b) and 17(1), or

(ii)

the amendment of a scheme in relation to a person who, immediately before the conversion date, was the widow, widower or surviving civil partner of an earner so that it no longer contains the rules specified in section 17(1),

F5(ba)

“P” means—

(i)

in relation to a GMP conversion within paragraph (b)(i), the earner mentioned in that provision;

(ii)

in relation to a GMP conversion within paragraph (b)(ii), the survivor mentioned in that provision,

(c)

F6a “GMP-converted scheme” is a scheme which has been subject to GMP conversion,

(d)

“the conversion date” means the date on which that amendment takes effect,

(e)

“the pre-conversion benefits” means the benefits provided under the scheme F7in relation to P immediately before the conversion date F8(disregarding money purchase benefits),

(f)

“the post-conversion benefits” means the benefits which are provided under the converted scheme F9in relation to P F10(disregarding money purchase benefits),

(g)

“the converted scheme” means the scheme as it has effect immediately after conversion, and

(h)

“the trustees” in relation to a scheme means the trustees, managers or other persons responsible under the scheme for effecting amendments of it.

F11(2)

The Secretary of State must give such guidance (if any) as he or she thinks appropriate about GMP conversion.