Pension Schemes Act 1993

8 Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”. E+W+S

(1) The employment of an earner in employed earner’s employment is “contracted-out employment” in relation to him during any period in which[F1 —

(a) he is under pensionable age;

(aa) his service in the employment is for the time being service which qualifies him for a pension provided by an occupational pension scheme contracted out by virtue of satisfying section 9(2) (in this Act referred to as “a salary related contracted-out scheme”);]

(b) there is in force a contracting-out certificate issued by the [F2 Inland Revenue] in accordance with this Chapter stating that the employment is contracted-out employment by reference to the scheme.

[F3 (1A) In addition, in relation to any period before the abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to him during that period if—

(a) he was under pensionable age;

(b) his employer made minimum payments in respect of his employment to a money purchase contracted-out scheme, and

(c) there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.]

(2) In this Act—

• “guaranteed minimum pension” means any pension which is provided by an occupational pension scheme in accordance with the requirements of sections 13 and 17 to the extent to which its weekly rate is equal to the earner’s or, as the case may be, the earner’s [F4 widow's, widower’s [F5 , surviving same sex spouse's] or surviving civil partner's] guaranteed minimum as determined for the purposes of those sections respectively; and

• “minimum payment”, in relation to an earner’s employment in any tax week, means the rebate percentage of so much of the earnings paid to or for the benefit of the earner in that week as exceeds the current lower earnings limit but not [F6 the applicable limit] (or the prescribed equivalents if he is paid otherwise than weekly);

[F7 and for the purposes of this subsection “rebate percentage” means the appropriate flat rate percentage [F8 for the tax year in which the week falls as specified in an order made under section 42B (as it had effect before the abolition date)]].

[F9 (2A) In subsection (2) “the applicable limit” means—

(a) in relation to a tax year before 2009-10, the upper earnings limit;

(b) in relation to 2009-10 or any subsequent tax year, the upper accrual point.]

F10 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Any contracting-out certificate for the time being in force in respect of an employed earner’s employment shall be conclusive that the employment is contracted-out employment.

F11 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 8(1) substituted (26.9.2007 for specified purposes, 6.4.2012 in so far as not already in force, that being "the abolition date" for the purposes of s. 15(1) of the amending Act) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 3(2) (with Sch. 4 Pt. 3); S.I. 2011/1267, art. 2(a)

F2 Words in s. 8(1)(b) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 34(a); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F3 S. 8(1A) inserted (26.9.2007 for specified purposes, 6.4.2012 in so far as not already in force, that being "the abolition date" for the purposes of s. 15(1) of the amending Act) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 3(3) (with Sch. 4 Pt. 3); S.I. 2011/1267, art. 2(a)

F4 Words in s. 8(2) substituted (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(3), Sch. 1 para. 1

F5 Words in s. 8(2) inserted (E.W.) (13.3.2014) by Marriage (Same Sex Couples) Act 2013 (c. 30), s. 21(3), Sch. 4 para. 19; S.I. 2014/93, art. 3(j)(v); same words inserted (S.) (16.12.2014) by The Marriage and Civil Partnership (Scotland) Act 2014 and Civil Partnership Act 2004 (Consequential Provisions and Modifications) Order 2014 (S.I. 2014/3229), art. 1(2), Sch. 5 para. 11(2)

F6 Words in s. 8(2) substituted (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 1 para. 8(2)

F7 Words in s. 8(2) substituted (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 23(a); S.I. 1997/664, art. 2(3), Sch. Pt. 2

F8 Words in s. 8(2) substituted (26.9.2007 for specified purposes, 6.4.2012 in so far as not already in force, that being "the abolition date" for the purposes of s. 15(1) of the amending Act) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 3(4) (with Sch. 4 Pt. 3); S.I. 2011/1267, art. 2(a)

F9 S. 8(2A) inserted (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 1 para. 8(3)

F10 S. 8(3) repealed (6.4.2015) by Pensions Act 2007 (c. 22), ss. 27(7), 30(2)(b), Sch. 4 para. 47, Sch. 7 Pt. 7; S.I. 2011/1267, art. 3(a)(iv)(b) (as amended (20.3.2012) by S.I. 2012/911, art. 2(d))

F11 S. 8(5) repealed (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 23(b), Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. 2

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2