The Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

Regulation 28

SCHEDULE 1 RELATED AMENDMENTS OF OTHER REGULATIONS

Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations 1985

1.  Regulation 5 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1985(1) (further condition on which liability may be discharged) is replaced with the following—

“Conditions referred to in section 52C(5)(c)(ii)

5.— (1) The conditions referred to in section 52C(5)(c)(ii) (further conditions on which liability may be discharged) are that the requirements of one or more of paragraphs (2) to (5) are satisfied.

(2) The requirements of this paragraph are satisfied if—

(a) the earner is dead and benefit is payable to a person other than his widow, and

(b) the arrangement for securing the benefit by means of the policy or contract was made at the written request of the person entitled to it, or with the consent of that person given in writing in the form set out in the Schedule to these Regulations.

(3) The requirements of this paragraph are satisfied if the benefit is provided as an alternative to short service benefit by virtue of a provision that conforms with the requirements of regulation 9(4) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (bought out benefits without consent).

(4) The requirements of this paragraph are satisfied if—

(a) the scheme is being wound up, and

(b) the member will be able to assign or surrender the policy of insurance or annuity contract on the conditions set out in regulation 2.

(5) The requirements of this paragraph are satisfied if all the conditions set out in sub-paragraphs (a) to (c) are satisfied, namely—

(a) the earner died with less than “5 years' qualifying service”, as defined in paragraph 7 of Schedule 16 to the Social Security Act 1973 immediately before section 10 of the Social Security Act 1986 came into force;

(b) the benefit concerned includes a guaranteed minimum pension that is payable to the earner’s widow or widower; and

(c) the trustees or managers of the scheme give the widow or widower at least 30 days' written notice of their intention to take out the insurance policy or enter into the annuity contract. The notice must be sent to the widow or widower at her or his last known address or delivered to the widow or widower personally.”.

Amendments of the Occupational Pension Schemes (Transfer Values) Regulations 1985

2.—(1) The Occupational Pension Schemes (Transfer Values) Regulations 1985(2) are amended as described in sub-paragraphs (2) to (4).

(2) In regulation 4 (increases and reductions of cash equivalents), paragraph (5B) is replaced with the following—

“(5B) Where a member’s benefits have been “appropriately secured” by a transaction to which section 52C applies (extinguishment of liability of scheme for pensions secured by insurance policies or annuity contracts), the cash equivalent in respect of that member shall be reduced to nil.

(5C) For the purposes of paragraph (5B) of this regulation, “appropriately secured” means the same as in section 52C except that a policy of insurance or annuity contract which is taken out or entered into with an “authorised friendly society” (as defined for the purposes of regulation 6 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991—means of assuring short service benefit), but which otherwise satisfies the conditions for being “appropriate” for the purposes of section 52C, is to be treated as if it were appropriate for the purposes of that section.”.

(3) Regulation 6 is replaced with the following—

“Member’s accrued rights transferred without consent

6.— (1) This regulation applies where—

(a) a member of a scheme has acquired a right to a cash equivalent but has not exercised the option conferred by paragraph 13(2); and

(b) the member’s accrued rights are transferred to another scheme without the member’s consent.

(2) Where this regulation applies, Schedule 1A shall have effect as if the member’s right to the cash equivalent of the transferred benefits existed in relation to the receiving scheme instead of the transferring scheme.”.

(4) Regulation 7 is replaced with the following—

“Schemes with an overseas element

7.— (1) This regulation applies to schemes with any overseas element, as described in paragraph 21 of Schedule 16 to the Social Security Act 1973(3) (requirements as to preservation of benefit under occupational pension schemes).

(2) Where this regulation applies Schedule 1A is modified so that Part II (transfer values) applies to schemes with any overseas element only to the extent that the preservation requirements apply to the scheme.”.

Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations 1986

3.  Regulation 1(2) of the Occupational Pension Schemes (Disclosure of Information) Regulations 1986(4) (interpretation) is amended by replacing the words “regulation 2(4) and (5) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1984” in the definition of “employer” with the words “regulation 2 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991”.

Amendment of the Occupational Pension Schemes (Auditors) Regulations 1987

4.  Regulation 1(2) of the Occupational Pension Schemes (Auditors) Regulations 1987(5) (interpretation) is amended by replacing the words “regulation 2(4) and (5) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1984” in the definition of “employer” with the words “regulation 2 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991”.

Amendments of the Occupational Pension Schemes (Qualifying Service-Consequential and Other Provisions) Regulations 1987

5.—(1) Regulation 6 of the Occupational Pension Schemes (Qualifying Service Consequential and Other Provisions) Regulations 1987(6) (purpose for which the Occupational Pensions Board may modify occupational pension schemes) is amended as described in sub-paragraphs (2) and (3).

(2) Paragraph (a) is replaced with the following—

“(a) to provide the alternative to short service benefit described in regulation 9 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (bought out benefits) without the member’s consent in the circumstances described in paragraph (5)(b) of that regulation; and”.

(3) In paragraph (b), the words “the conditions specified in regulation 5(c)” are replaced with the words “the requirements of regulation 5(5)”.

Regulation 29

SCHEDULE 2 REVOCATIONS

Column 1	Column 2
Regulations	Extent of revocation
The Occupational Pension Schemes (Preservation of Benefit) Regulations 1984 (S.I. 1984/614)	The whole of the Regulations.
The Contracting-out (Transfer) Regulations 1985 (S.I. 1985/1323)	Regulation 4(6).
The Occupational Pension Schemes (Preservation of Benefit) Amendment Regulations 1985 (S.I. 1985/1926)	The whole of the Regulations.
The Contracting-out (Requisite Benefits-Consequential Provisions) Regulations 1986 (S.I. 1986/1716)	Regulation 4.
The Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1986 (S.I. 1986/2171)	Regulation 2.
The Occupational Pension Schemes (Qualifying Service-Consequential and Other Provisions) Regulations 1987 (S.I. 1987/1106)	Regulation 3.
The Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1988 (S.I. 1988/476)	Regulation 2.
The Personal and Occupational Pension Schemes (Miscellaneous Amendments) (No. 2) Regulations 1989 (S.I. 1989/1641)	Regulation 2.
The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1990 (S.I. 1990/1141)	Regulation 3.
The Personal and Occupational Pension Schemes (Miscellaneous Amendments) (No. 2) Regulations 1990 (S.I. 1990/1142)	Regulation 3.

(1)

S.I. 1985/1929; the relevant amending instruments are S.I. 1987/1106, 1987/1114, 1988/474 and 476.

(2)

S.I. 1985/1931; the relevant amending instrument is S.I. 1988/476.

(3)

1973 c. 38.

(4)

S.I. 1986/1046.

(5)

S.I. 1987/1102.

(6)

S.I. 1987/1106.