Occupational Pension Schemes (Contracting-out) Regulations 1996

PART IV E+W+S MONEY PURCHASE CONTRACTED-OUT SCHEMES

Further contracting-out requirements for money purchase contracted-out schemes E+W+S

30.  F1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Reg. 30 omitted (6.4.2012) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245) , regs. 1(2) , 4(8)

Deduction of minimum payments from earnings. E+W+S

F2 31.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Reg. 31 omitted (E.W.S.) (6.4.2015) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 18

Minimum payments to be made by employers to trustees. E+W+S

F3 32.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Reg. 32 omitted (E.W.S.) (6.4.2015) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 18

Calculation of minimum payments. E+W+S

F4 33.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Reg. 33 omitted (E.W.S.) (6.4.2015) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 18

Manner of calculation or estimation of earnings. E+W+S

34.  Where the Secretary of State cannot readily ascertain the amount of earnings in any tax week or is satisfied that records of earnings in any tax week have not been maintained or retained or are otherwise unobtainable, he may—

(a) compute, in such manner as he thinks fit, an amount which shall be regarded as the amount of earnings; or

(b) take their amount to be such as he may specify in the particular case.

Manner of payment of the age-related payment. E+W+S

35.  The Secretary of State shall make the age-related payment—

(a) by automated credit transfer into a bank or building society account relating to the relevant scheme and which accepts payments made by automated credit transfer; or

(b) in such other manner as the Secretary of State may in his discretion approve.

Verification of age. E+W+S

36.—(1)  For the purposes of determining the appropriate age-related percentage in respect of an earner for the purposes of section 42A of the 1993 Act M1 , the Secretary of State may require that earner to send documentary evidence of his date of birth.

(2)  For the purposes of section 45B of the 1993 Act M2 (information held as to the age to be disclosed by the Secretary of State to trustees or managers of a money purchase scheme and such other persons as may be prescribed) the prescribed person shall be the person who is responsible for administering the scheme.

Marginal Citations

M1 Section 42A was inserted by section 137(5) of the Pensions Act 1995.

M2 Section 45B was inserted by section 139 of the Pensions Act 1995.

Circumstances in which the age-related payments are not to be paid. E+W+S

37.—(1) An age-related payment shall not be paid in respect of an earner for the tax year or part of the tax year in which that earner—

(a) reaches pensionable age; or

(b) dies and in which he would have reached pensionable age.

[F5 (1A) Subject to paragraph (2), where the earner is no longer a member of the scheme which before the abolition date was a money purchase contracted-out scheme, an age-related payment shall be paid—

(a) to the trustees or managers of the scheme, if the earner has become a member of another scheme, and the scheme is able to transfer the payment to that other scheme,

(b) to the trustees or managers of another scheme of which the earner is a member, if known to HMRC , or

(c) in all other circumstances, to the earner.]

(2)  Where effect has been given to protected rights under section 28 of the 1993 Act M3 (ways of giving effect to protected rights) [F6 as it had effect prior to the abolition date,] age-related payments shall not, except as provided for by paragraphs (3) to (6), be paid in respect of an earner for any tax year or part of a tax year before effect had been given to that earner’s protected rights.

(3) Where effect has been given to the earner’s protected rights by the purchase of an annuity or by the provision by the scheme of a pension and the amount of the age-related payment in question is at least 10 times as great as the weekly lower earnings limit for the tax year in which the Secretary of State first becomes aware that the age-related payment is payable or would have been payable but for paragraph (2), the age-related payments shall be paid (in the case of an annuity) to the insurance company from which the annuity had been purchased, or (in the case of a pension) to the trustees or managers of the scheme.

(4) Where effect has been given to the earner’s protected rights but the circumstances described in paragraph (3) do not exist the age-related payments shall be payable to the earner or the earner’s [F7 widow, widower or surviving civil partner], or if the earner [F8 was not married or a civil partner at the time of his or her death], they may at the Secretary of State’s discretion be paid to any person.

(5) Where effect has been given to the earner’s protected rights by the provision of a lump sum, the age-related payment shall be payable to the earner or the earner’s [F7 widow, widower or surviving civil partner] or, if the earner [F8 was not married or a civil partner at the time of his or her death], they may at the Secretary of State’s discretion be paid to any person.

(6) Where effect has been given to the earner’s protected rights by virtue of a transfer payment to another money purchase contracted-out scheme or a salary-related scheme and either the whole or part of a contributions equivalent premium has not been paid or no election to pay the whole or part of the contributions equivalent premium has been received by the Secretary of State, or to an appropriate personal pension scheme or an overseas scheme, the age-related payments shall be payable up to the date on which the transfer payment was made to the trustees or managers of that other scheme.

(7)  Where effect has been given to the earner’s protected rights by means of an appropriate policy of insurance by virtue of section 32A of the 1993 Act M4 (discharge of protected rights on winding up: insurance policies) [F9 as it had effect prior to the abolition date], the age-related payments in respect of the tax year or part of the tax year before the tax year in which either the earner reaches pensionable age, or dies and in which he would have reached pensionable age, shall be payable to the insurance company with which that policy of insurance is or was taken out or entered into.

Textual Amendments

F5 Reg. 37(1A) inserted (6.4.2012) by The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246) , arts. 1(2)(a) , 8(6)(a)

F6 Words in reg. 37(2) inserted (6.4.2012) by The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246) , arts. 1(2)(a) , 8(6)(b)

F7 Words in reg. 37(4)(5) substituted (5.12.2005) by Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050) , art. 1(3) , Sch. 2 para. 12(a)

F8 Words in reg. 37(4)(5) substituted (5.12.2005) by Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050) , art. 1(3) , Sch. 2 para. 12(b)

F9 Words in reg. 37(7) inserted (6.4.2012) by The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246) , arts. 1(2)(a) , 8(6)(c)

Marginal Citations

M3 Section 28 was amended by sections 142 and 146(2) of the Pensions Act 1995.

M4 Section 32A was inserted by section 146(1) of the Pensions Act 1995.

Adjustment of the amount of the age-related payment. E+W+S

38.  Where the amount of the age-related payment payable in respect of an earner would otherwise not be a whole number of pence, it shall be adjusted to the nearest whole number of pence, and any amount of half a penny or less shall be disregarded.

Circumstances in which schemes may change mode of contracting-out. E+W+S

F10 39 .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F10 Reg. 39 omitted (6.4.2012) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245) , regs. 1(2) , 4(11)

Schemes which may not be contracted-out under section 9(3) of the 1993 Act. E+W+S

F11 40 .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F11 Reg. 40 omitted (6.4.2012) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245) , regs. 1(2) , 4(11)