| Column (1) | Column (2) |
|---|---|
| Pension Schemes Act M1 | section 7 |
| section 8(3) | |
| section 9 | |
| section 11(5) | |
| section 12(3) | |
| section 12A(4), (5) and (6) | |
| section 12B(2) and (4) | |
| section 12C(1) and (3) | |
| section 12D | |
| section 16(3) and (4) | |
| section 17(6) | |
| section 21(1) and (2) | |
| section 25(2) | |
| section 34 | |
| section 35(6) | |
| section 36(6) | |
| section 37 | |
| section 42A | |
| section 45B | |
| section 50(1B) and (4) | |
| section 51 (2) and (4) | |
| section 53(3) | |
| section 55(2) | |
| section 56(2) | |
| section 57(1) and (2) | |
| section 61(7) and (11) | |
| section 113(1) | |
| section 155 | |
| section 156 | |
| section 178 | |
| section 179 | |
| section 181(1) | |
| section 182(2) and (3) | |
| section 183(1) | |
| Schedule 2, Part I | |
| Pensions Act 1995 M2 | section 174(3) and (4) |
| section 180(4) |
Marginal Citations
Regulation 78
| Column 1 | Column 2 | Column 3 |
|---|---|---|
| Statutory Instrument Number | Statutory Instrument | Provision Revoked |
| S.I. 1982/1033 | The Contracting-out (Recovery of Class 1 Contributions) Regulations 1982 | Regulation 2 |
| S.I. 1984/380 | The Occupational Pension Schemes (Contracting-out) Regulations 1984 | The whole of the Regulations |
| S.I. 1985/1323 | The Contracting-out (Transfer) Regulations 1985 | Regulation 4(3) and (4) |
| S.I. 1985/1928 | The Contracting-out (Transfer Premiums) Regulations 1985 | The whole of the Regulations |
| S.I. 1985/1930 | The Occupational Pension Schemes (Revaluation) Regulations 1985 | Regulation 9 |
| S.I. 1986/317 | The Occupational Pension Schemes (Contracting-out) Amendment Regulations 1986 | Regulation 2 |
| S.I. 1986/1716 | The Contracting-out (Requisite Benefits-Consequential Provisions) Regulations 1986 | Regulation 3 |
| S.I. 1987/1100 | The Contracting-out (Widowers’ Guaranteed Minimum Pensions) Regulations 1987 | The whole of the Regulations |
| S.I. 1987/1101 | The Money Purchase Contracted-out Schemes Regulations 1987 | The whole of the Regulations |
| S.I. 1987/1103 | The Occupational Pension Schemes (Contracted-out Protected Rights Premiums) Regulations 1987 | Regulations 3, 4, 5, 6 and 7 |
| S.I. 1987/1104 | The Occupational Pension Schemes (Contracting-out) Amendment Regulations 1987 | The whole of the Regulations |
| S.I. 1987/1106 | The Occupational Pension Schemes (Qualifying Service Consequential and Other Provisions) Regulations 1987 | Regulation 2 |
| S.I. 1987/1114 | The Personal and Occupational Pension Schemes (Consequential Provisions) Regulations 1987 | Regulation 4 |
| S.I. 1987/1117 | The Personal and Occupational Pension Schemes (Protected Rights) Regulations 1987 | Regulation 14 |
| S.I. 1988/474 | The Personal and Occupational Pension Schemes (Tax Approval and Miscellaneous Provisions) Regulations 1988 | Regulation 4 |
| S.I. 1988/475 | The Contracting-out (Miscellaneous Amendments) Regulations 1988 | Regulation 2 |
| S.I. 1989/500 | The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1989 | Regulation 2 |
| S.I. 1990/1141 | The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1990 | Regulation 6 |
| S.I. 1990/1142 | The Personal and Occupational Pension Schemes (Miscellaneous Amendments) (No.2) Regulations 1990 | Regulation 2 |
| S.I. 1991/2273 | The Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1991 | Regulation 2 |
| S.I. 1992/1531 | The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 1992 | Regulation 2 |
| S.I. 1993/519 | The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 1993 | Regulation 2 |
| S.I. 1994/1062 | The Occupational and Personal Pension Schemes (Consequential Amendments) Regulations 1994 | Schedule 2, paragraphs 4 and 10 and regulation 2 as far as it relates to those paragraphs |
| S.I. 1995/35 | The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 1995 | Regulations 2 and 4 |
| S.I. 1996/776 | The Personal and Occupational Pension Schemes (Miscellanous Amendments) Regulations 1996 | Regulation 2 |
Regulation 23(i)
Textual Amendments
1. The actuary must complete a reference scheme test certificate.E+W+S
2. The reference scheme test certificate must—E+W+S
(a)certify whether in the actuary’s opinion, the scheme satisfies the statutory standard in relation to the provision of pensions for—
(i)earners, and
(ii)the widows, widowers or surviving civil partners of earners, and
(b)specify the date of the information used by the actuary for the purposes of completing the certificate (referred to in this Schedule as the “effective date”).
3. The actuary must—E+W+S
(a)send the completed reference scheme test certificate to Her Majesty’s Revenue and Customs and send a signed copy of that certificate to the employer, or
(b)send the completed reference scheme test certificate to the employer and inform the employer that that certificate should be sent to Her Majesty’s Revenue and Customs.
4. Where the actuary is sending the first reference scheme test certificate for a scheme, the actuary must also inform—E+W+S
(a)the [F2trustees or managers of the scheme] and the employer that Her Majesty’s Revenue and Customs provide guidance on contracting-out, including guidance on what changes need to be notified to Her Majesty’s Revenue and Customs,
(b)the employer that it should provide a copy of the completed certificate to the [F2trustees or managers of the scheme], and
(c)the employer that it should keep a record of any subsidiary or associated employers.
Textual Amendments
F2Words in Sch. 3 para. 4(a)(b) substituted (6.4.2012) by The Occupational Pension Schemes (Contracting-out and Modification of Schemes) (Amendment) Regulations 2012 (S.I. 2012/542), regs. 1(2), 2(3)
5.—(1) Where the employer asks the actuary to advise whether the statutory standard is satisfied, the actuary must inform the trustees or managers of the scheme that the employer has asked for that advice.E+W+S
(2) Sub-paragraph (1) does not apply if the actuary has previously informed the trustees or managers of the scheme that the actuary provides advice to the employer.
6. Where the scheme calculates pensions by different methods for different members, the actuary—E+W+S
(a)must decide whether the pensions provided under each method are broadly equivalent to, or better than, the pensions which would be provided under a reference scheme, and
(b)must not complete a reference scheme test certificate for any members whose pensions are calculated by a method which does not provide pensions that are broadly equivalent to, or better than, the pensions which would be provided under a reference scheme.
7. The actuary must not complete a reference scheme test certificate if the average value of pension provided under the scheme is less than the average value of pension which would be provided under a reference scheme.E+W+S
8. Where an employer asks for a separate reference scheme test certificate which only includes its employees, the actuary must—E+W+S
(a)provide that employer with a separate reference scheme test certificate, and
(b)consider only the employees of that employer for that certificate.
9. Where—E+W+S
(a)an employer has two or more schemes, and
(b)none of those schemes can be contracted-out by itself under section 9(1) of the 1993 Act (requirements for certification of schemes: general),
the actuary may take into account the pensions provided under all those schemes.
10. The actuary must use any information about the earner’s remuneration which—E+W+S
(a)the actuary considers is relevant for the reference scheme test certificate,
(b)is the latest available information, and
(c)subject to paragraph 11, refers to the period of one year.
11. Where—E+W+S
(a)the actuary is satisfied that the information about the earner’s remuneration which refers to a period of one year is significantly abnormal, and
(b)the employer writes to the actuary stating that it is also so satisfied,
the actuary may use such information for the purposes of paragraph 10(c) which refers to the period of three years ending on the effective date.
12.—(1) This paragraph applies where, on the effective date, the scheme has not been established but is in the process of being established.E+W+S
(2) For the purposes of carrying out the comparison under regulation 23, the actuary must use estimated membership information.
(3) In this paragraph, “estimated membership information” means any information about the earners who the actuary expects to join the scheme when it is established which—
(a)the actuary considers is necessary for the purposes of the comparison under regulation 23, and
(b)may include information on the age, gender and earnings of those earners.
13.—(1) The pensions provided under the scheme for the purposes of carrying out the comparison under regulation 23 are the pensions referred to in sub-paragraph (2).E+W+S
(2) The pensions are those which the actuary expects will accrue in the three years after the effective date.
(3) For the purposes of sub-paragraph (2), the actuary must—
(a)assume that the earner leaves pensionable service—
(i)at the end of the three-year period mentioned in sub-paragraph (2), or
(ii)if the earner attains normal pension age before the end of that three-year period, on the date on which the earner attains normal pension age,
(b)assume that pensions are payable from the date on which the earner attains normal pension age,
(c)where the earner has accrued their maximum pension under the scheme during any part of the three-year period mentioned in sub-paragraph (2), assume that that maximum pension accrues at the same rate for each year of the pensionable service which the earner is likely to complete up to a maximum of 40 years, and
(d)take into account the person whom the actuary expects will be entitled to receive the pensions referred to in sub-paragraph (2).
14.—(1) For the purposes of carrying out the comparison under regulation 23, the actuary must use—E+W+S
(a)where a statement of funding principles has been prepared or revised for the scheme under section 223 of the 2004 Act (statement of funding principles), the actuarial assumptions in the most recent such statement, and
(b)any other actuarial assumptions which the actuary considers necessary.
(2) The actuarial assumptions referred to in sub-paragraph (1) must be used for valuing—
(a)the pensions provided under the scheme, and
(b)the pensions which would be provided under a reference scheme.
15.—(1) For the purposes of carrying out the comparison under regulation 23, the pensions provided under the scheme for widows, widowers and surviving civil partners are subject to the following requirements of this paragraph.E+W+S
(2) The actuary must carry out a separate comparison for pensions the actuary expects to accrue during the three-year period referred to in paragraph 13(2) in respect of—
(a)death in service (see sub-paragraphs (3), (9) and (10) of this paragraph),
(b)death in deferment (see sub-paragraph (4)), and
(c)death in retirement (see sub-paragraphs (5) and (11)).
(3) A death in service pension must be valued as if the earner died—
(a)three years after the effective date, or
(b)if the earner attains normal pension age before that date, on the day before the date on which the earner attains normal pension age.
(4) A death in deferment pension must be valued as if the earner died more than three years after the effective date.
(5) A death in retirement pension must be valued as if the earner died after the date on which the earner attains normal pension age.
(6) The actuary may not complete the reference scheme test certificate unless each of the pensions referred to in sub-paragraph (2) are broadly equivalent to, or better than, those which would be provided under a reference scheme.
(7) Sub-paragraph (8) applies where—
(a)a pension which is in payment for a widow, widower or surviving civil partner has been reduced under the scheme because they were at least 10 years younger than the earner, or
(b)a pension which may become payable in the future for a widow, widower or surviving civil partner would be reduced under the scheme if they were at least 10 years younger than the earner.
(8) Where this sub-paragraph applies, the actuary—
(a)must estimate, where sub-paragraph (7)(b) applies, the number and amount of future pension reductions which the actuary thinks are likely to occur, and
(b)may ignore any part of the reductions referred to in sub-paragraph (7) which are or are likely to be—
(i)made in respect of each complete year during which the age difference referred to in sub-paragraph (7) was at least 10, and
(ii)2.5% or less for each such year.
(9) Sub-paragraph (10) applies where any death in service pensions—
(a)have an accrual rate of less than 1/160ths of any qualifying earnings within the meaning of section 12B(5) of the 1993 Act (reference scheme) and are calculated by reference to—
(i)the number of years of pensionable service which the earner has completed in the scheme, and
(ii)any amount which is additional to the number of years of pensionable service referred to in sub-paragraph (i), or
(b)are not calculated by reference to the number of years of pensionable service.
(10) Where this sub-paragraph applies, the actuary must compare under sub-paragraph (2)(a) the death in service pension with a reference scheme—
(a)based on the earner’s pensionable service up to the date which applies under sub-paragraph (3), and
(b)excluding any of the earner’s pensionable service which took place before—
(i)the date on which a contracting-out certificate was first issued to the scheme, or
(ii)in the case of female earners or surviving civil partners, 6th April 1988 where that date is later than the date referred to in sub-paragraph (i).
(11) Where a death in retirement pension can be reduced under the scheme if the earner takes part of their pension as a lump sum on retirement, the actuary must reduce the death in retirement pension by an amount broadly consistent with the average such reductions made by the scheme in relation to other earners.
16.—(1) Subject to sub-paragraph (2), this paragraph applies in each of the following circumstances—E+W+S
(a)where the actuary has been informed of any changes to—
(i)the scheme rules, or
(ii)the membership of the scheme (including changes to the remuneration of scheme members),
which the actuary thinks might affect the scheme’s ability to satisfy the statutory standard;
(b)where, after estimated membership information has been used in accordance with paragraph 12, actual information becomes available about the members who have joined the scheme;
(c)unless paragraph (a) or (b) applies, three years after the effective date;
(d)three years after the date on which this paragraph (that is, paragraph 16 of this Schedule) last applied.
(2) This paragraph does not apply where the scheme is no longer required to satisfy the statutory standard.
(3) The actuary must consider whether there have been any changes which would prevent a reference scheme test certificate from being issued.
(4) If—
(a)there have been any changes referred to in sub-paragraph (3), and
(b)no further changes have been made which the actuary considers would enable a reference scheme test certificate to be issued,
the actuary must inform in writing the trustees or managers of the scheme, Her Majesty’s Revenue and Customs and the employer.
17. In this Schedule—E+W+S
“accrual rate” means the rate at which, under the scheme rules, rights to the pension accrue over time by reference to periods of service in any description of employment to which the scheme applies;
“death in deferment pension” means a pension payable in respect of an earner who dies—
otherwise than in pensionable service under the scheme, and
before their own entitlements to pensions under the scheme have commenced;
“death in retirement pension” means a pension payable in respect of an earner who dies after their own entitlements to pensions under the scheme have commenced;
“death in service pension” means a pension payable in respect of an earner who dies in pensionable service under the scheme;
“earner” means an earner in employed earner’s employment;
“effective date” has the meaning given in paragraph 2(b);
“normal pension age” means the earliest age at which an earner may be entitled to payment of an unreduced pension;
“unreduced pension” means a pension which—
has not been actuarially reduced as a result of early payment of the pension, and
does not include any discretionary benefits.]