The Personal and Occupational Pension Schemes (Incentive Payments) Regulations 1987

Employments in relation to which payments under section 3(1)(b) of the Act are not to be made E+W+S

2.—(1) This regulation applies where—

(a) an earner is employed by a person (called in this regulation “the primary employer”) in employment (called in this regulation “the primary employment”) which is not contracted-out employment; and

(b) the primary employment would be contracted-out employment in relation to the earner by reference to a scheme (called in this regulation “the primary scheme”) but for the fact that the earner voluntarily left it.

(2) Where—

(a) the primary scheme is not a centralised scheme; and

(b) there has been a period of at least 2 years, ending after [F1 5th April 1988], throughout which the earner was employed, whether or not by the primary employer, in employment which was contracted-out by reference to a scheme by reference to which employment by the primary employer was contracted-out,

the primary employer shall notify the Secretary of State of the facts described in sub-paragraphs (a) and (b) of paragraph (1) and sub-paragraph (b) of this paragraph.

(3) Where—

(a) the primary scheme is a centralised scheme; and

(b) there has been a period ending after [F2 5th April 1988]—

(i) of at least 2 years, throughout which the earner was employed in one employment, or

(ii) during which the earner was employed in a series of employments with intervals of not more than 6 months between consecutive employments in the series, the total duration of the employments, not including the intervals, being at least 2 years,

and

(c) the one employment referred to in sub-paragraph (b)(i) or each employment in the series referred to in sub-paragraph (b)(ii) is contracted-out by reference to the primary scheme,

the trustees, or, if there are no trustees, the managers of the primary scheme shall notify the Secretary of State of the facts described in sub-paragraphs (a) and (b) of paragraph (1) and sub-paragraphs (a) to (c) of this paragraph.

(4) A notification required to be given under paragraph (2) or (3) shall be given within 6 months after the date on which the employment mentioned in paragraph (1)(a) ceased to be contracted-out employment or, if the Secretary of State is satisfied that the notification could not reasonably have been given within that period, such longer period as he may approve in a particular case or class of case.

(5) A notification required to be given under paragraph (2) or (3) shall be given in writing in such form as the Secretary of State may direct and shall contain such information as the Secretary of State may reasonably require for the purposes of this regulation.

(6) For the purposes of section 3(2) of the Act (no payment under section 3(1)(b) in relation to earnings paid with respect to prescribed employment) the prescribed employment is any employment to which paragraph [F3 (7), (8) or (12)] applies.

(7) This paragraph applies to the primary employment, where a notification has been given in accordance with paragraph (2) or (3) and the Secretary of State knows of no reason to suppose that the information given to him in the notification is incorrect.

(8) This paragraph applies to any employment (called in this regulation “the secondary employment”) which—

(a) is employment of an earner about whom a notification has been given in accordance with paragraph (2) or (3), where the Secretary of State knows of no reason to suppose that the information given to him in the notification is incorrect;

(b) is not contracted-out employment in relation to him; and

(c) is not the primary employment,

except where the Secretary of State is satisfied that the circumstances specified in any one of sub-paragraphs (a), (b) and (c) of paragraph (9) obtain.

(9) The circumstances referred to in paragraph (8) are—

(a) that the earner is employed in the secondary employment by a person other than the primary employer;

(b) that there has been an interval of at least 7 days between the termination of the primary employment and the commencement of the secondary employment; and

(c) that the secondary employment—

(i) is not employment to which the primary scheme applies, and

(ii) commenced before, or while, the earner was employed in employment to which paragraph (10) applies.

(10) This paragraph applies to—

(a) the primary employment;

(b) any employment of the earner by the primary employer which commences immediately after the primary employment terminates; and

(c) any 2 or more employments of the earner by the primary employer of which the first commences immediately after the primary employment terminates and every subsequent one commences immediately after the previous one terminates.

(11) Where a notice under section 1(9) of the Act specifies, as the date from which the personal pension scheme in question is to be the chosen scheme of the earner in question, a date earlier than that on which the Secretary of State receives the notice—

(a) in a case where the Secretary of State receives the notice in the tax year 1988—89 and the date specified by the notice as mentioned above is 6th April 1987, that part (if any) which the Secretary of State is required to pay under section 3(1)(b) of the Act of the minimum contributions which fall due in respect of earnings paid to the earner during the tax years 1987—88 and 1988—89 shall be paid not earlier than October 1989; and

(b) in any other case, that part (if any) which the Secretary of State is required to pay under section 3(1)(b) of the Act of the minimum contributions which fall due in respect of earnings paid to the earner during the tax year in which the Secretary of State receives the notice shall be paid not earlier than October in the tax year following that in which the Secretary of State receives the notice,

unless the Secretary of State has reason to suppose that no notification under paragraph (2) or (3), containing correct information, can or will be served on him in relation to that earner.

[F4 (12) This paragraph applies to any employment which is employment of an earner about whom no notification has been given in accordance with paragraph (2) or (3) where—

(a) the Secretary of State has reason to suppose that notification ought to have been given; and

(b) the earner has not satisfied the Secretary of State that either notification was not required or, if notification had been given, neither paragraph (7) nor (8) would apply.]

Textual Amendments

F1 Words in reg. 2(2)(b) substituted (15.12.1987) by S.I. 1987/1933, reg. 4, 1

F2 Words in reg. 2(3)(b) substituted (15.12.1987) by S.I. 1987/1933, reg. 4, 1

F3 Words in reg. 2(6) substituted (1.10.1989) by S.I. 1989/1641, reg. 4(2), (2)1

F4 Reg. 2(12) added (1.10.1989) by S.I. 1989/1641, reg. 4, (3)1