Part XI General and Miscellaneous Provisions

Avoidance of certain transactions and provisions

156 Terms of contracts of service or schemes restricting choice to be void.

1

Subject to such exceptions as may be prescribed—

a

any term of a contract of service (whenever made) or any rule of a personal or occupational pension scheme to the effect that an employed earner must be a member—

i

of a personal or occupational pension scheme,

ii

of a particular personal occupational pension scheme, or

iii

of one or other of a number of particular personal or occupational pension schemes,

shall be void; and

b

any such term or rule to the effect that contributions shall be paid by or in respect of an employed earner—

i

to a particular personal or occupational pension scheme of which the earner is not a member, or

ii

to one or other of a number of personal or occupational pension schemes of none of which he is a member,

shall be unenforceable for so long as he is not a member of the scheme or any of the schemes.

2

Subsection (1) shall not be construed so as to have the effect that an employer is required, when he would not otherwise be—

a

to make contributions to a personal or occupational pension scheme; or

b

to increase an employed earner’s pay in lieu of making contributions to a personal or occupational pension scheme.