The Occupational Pension Schemes (Transitional Provisions) (Amendment) Regulations 1993

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Occupational Pension Schemes (Transitional Provi—sions) Regulations 1988 (S.I. 1988/1436) (“the principal Regulations”). The principal Regulations provide, amongst other matters, for the disapplication and modification of provisions contained in Schedule 23 to the Income and Corporation Taxes Act 1988 (“the Schedule”) (occupational pension schemes approved before 23rd July 1987) in the circumstances prescribed in those Regulations.

These Regulations amend the principal Regulations, prescribe further circumstances in which certain provisions contained in the Schedule are applied with prescribed modifications, and provide that the Regulations shall take effect as from 17th March 1987.

Regulation 1 provides for citation, commencement and effect and regulation 2 contains definitions.

Regulation 3 inserts additional definitions into regulation 2(1) of the principal Regulations.

Regulation 4 amends regulation 3 of the principal Regulations, extending the circumstances prescribed in that regulation so that they also apply to periods which began before 17th March 1987 but ended on or after that date. Regulation 5 makes consequential amendments to regulation 4 of the principal Regulations.

Regulation 6 inserts a new regulation 4A into the principal Regulations. The new regulation modifies paragraphs 2 and 9 of the Schedule in circumstances where an employee takes early retirement as the result of physical incapacity. The modifications permit such an employee to be retired on the pension that could have been paid if service had continued up to the normal retirement date, and (where the scheme rules so allow) on a pension which takes account of rises in the cost of living or the general level of earnings obtaining in Great Britain.

Regulation 7 inserts further new regulations (regulations 5A to 5D) into the principal Regulations, all of which modify paragraph 2 of the Schedule. Regulations 5A and 5B provide (where the scheme rules so allow) for a pension to take account of rises in the cost of living or the general level of earnings in circumstances other than those prescribed in regulation 4A. Regulation 5A applies to an employee who retires with an immediate pension, and regulation 5B aplies to an employee who leaves pensionable service with an entitlement to a pension from a future date. Regulation 5C applies to an employee who continues in service after his normal retirement date, and provides for the pension to take account of the extra service and (where the scheme rules so allow) of rises in the cost of living or the general level of earnings. Regulation 5D applies where a pension attributable to a transfer payment is provided for an employee in respect of service with a former employer who is a relevant employer (as defined in the principal Regulations), and provides for service with that former employer to be included in pensionable service.

Regulation 8 makes a minor amendment to regulation 6(2) of the principal Regulations.

Authority for the retrospective effect of these Regulations is given by sub—paragraph (2A) of paragraph 1 of the Schedule.