Explanatory Notes

Pensions Act 2007

2007 CHAPTER 22

26 July 2007

Commentary on Sections

Schedule 4: Abolition of contracting-out for defined contribution pension schemes

Part 1

Amendment to Pensions Act 2004

319.Paragraph 41 omits section 257(7) of the PA2004. This subsection means that the pensions protection provided by virtue of transfer of undertakings protection of employment is not provided to employees in a contracted-out money purchase occupational pension schemes where the scheme only makes contributions based on the contracted-out rebate (minimum payments). The need for such an exemption will cease to exist after the abolition date.