Schemes with an overseas elementE+W+S

25.—(1) This regulation applies to schemes with an overseas clement, that is to say, schemes established, or relating to employment, or with parties domiciled, resident or carrying on business, in any part of the world outside the United Kingdom, or otherwise not confined in their operation to the United Kingdom.

(2) [F1Sections 69 to 80 of the Act are] modified in relation to a scheme with an overseas element, so that the preservation requirements apply to the scheme only if the scheme is established in the United Kingdom or has an appointed representative in the United Kingdom.

(3) In the case of a scheme with any overseas element to which the preservation requirements apply, [F2section 71(1) of the Act] is modified so that the scheme is required to provide short service benefit only for those members whose pensionable service terminates while they are in employment in the United Kingdom.

(4) For the purposes of this regulation—

(a)a scheme has an appointed representative in the United Kingdom if there is a person resident in the United Kingdom who is appointed for tax purposes in relation to the scheme or who performs one or more functions thatF3... would normally be performed by a trustee or manager of the scheme;

(b)a member’s employment outside the United Kingdom is to be treated as employment in the United Kingdom if the most recent payment of earnings in respect of that employment gave rise to liability for primary Class I contributions, or would have done so had the level of earnings not been below the lower earnings limit; and

(c)“Class 1 contributions” means the same as in section 1(2) of the M1Social Security Act 1975 (outline of contributory system) and “lower earnings limit” means the same as in section 4(1) of that Act (Class 1 contributions-incidence).

Textual Amendments

F3Words in reg. 25(4)(a) omitted (6.4.97) by virtue of S.I. 1996/2131, reg. 2(15)

Marginal Citations