Occupational Pension Schemes (Contracting-out) Regulations 1996

Modification of section 51(1) of the 1993 Act in relation to revaluation and schemes which have ceased to be contracted-out.

67.  Subject to the provisions of regulation 68, in relation to a scheme which has ceased to be contracted-out and, immediately before it so ceased, contained provision authorised by section 16(2) and (3) of the 1993 Act, section 51(1) to (3) of that Act(1) shall be modified so as to provide that, in the case of an earner whose service in contracted-out employment by reference to the scheme is terminated before he attains pensionable age—

(a) if it is so terminated before the period of 5 years ending with the tax year in which the scheme ceases to be contracted-out, the provision for taking his earnings factor for any relevant year to be that factor as increased by 12 per cent. for some or all of those tax years shall not apply; and

(b) if it is so terminated within the period of 5 years, the provision for taking his earnings factor for any relevant year to be that factor as increased by 12 per cent. for some or all of those tax years shall apply, but his weekly equivalent shall not be increased pursuant to any provision required by section 16(2) and (3) of the 1993 Act for the years for which that factor is taken to be that factor as increased by 12 per cent.

(1)

Section 51 was amended by paragraph 46 of Schedule 5 to the Pensions Act 1995.