The Contracting-out (Transfer and Transfer Payment) Regulations 1996

PART IV MODIFICATION OF PART III OF THE 1993 ACT

Modifications of Part III of the 1993 Act on transfers of and transfer payments in respect of guaranteed minimum pensions from occupational pension schemes

12.  Where a transfer to a salary-related contracted-out scheme, or a transfer payment to an overseas scheme, has taken place from an occupational pension scheme in accordance with regulations 3, 4 or 6 (or with regulation 2 of the Contracting-out (Transfer) Regulations 1985(1)), the 1993 Act shall have effect subject to the following modifications—

(a) where the transfer was of the accrued rights to guaranteed minimum pensions of an earner who was in employment which was contracted-out by reference to the receiving scheme, the modification of section 14(1)(2) (earner’s guaranteed minimum) specified in paragraph 3 of Schedule 2;

(b) in the case of any other transfer of the accrued rights of an earner to guaranteed minimum pensions, the modifications of sections 8(2)(3) (meaning of “guaranteed minimum pension”), 20(6) (transfer of accrued rights: meaning of “accrued rights”) and 159(4) (inalienability of guaranteed minimum pension and protected rights payments) specified in paragraphs 1, 4 and 5 of Schedule 2;

(c) in the case of any transfer of the liability for payment of guaranteed minimum pensions to or in respect of a person who had become entitled to them, the modifications of sections 8(2) and 159 specified in paragraphs 1 and 5 of Schedule 2;

(d) in the case of any transfer payment to an overseas scheme in respect of the accrued rights of an earner to guaranteed minimum pensions, the modification of section 46(5) (effect of entitlement to guaranteed minimum pensions on payment of social security benefits) specified in paragraph 2 of Schedule 2.

Modifications of Part III of the 1993 Act on transfers from policies of insurance or annuity contracts

13.  Where a transfer to a salary-related contracted-out scheme, or a transfer payment to an overseas scheme, in respect of an earner’s accrued rights to guaranteed minimum pensions has taken place from an appropriate policy in accordance with regulation 3 or 6 (or with regulation 2A of the Contracting-out (Transfer) Regulations 1985), the 1993 Act shall have effect subject to the following modifications—

(a) where the earner was in employment which was contracted-out by reference to the receiving scheme, the modification of section 14(1) specified in paragraph 7 of Schedule 2;

(b) where the earner was in employment which was not contracted-out by reference to the receiving scheme, the modifications of sections 8(2), 20(6) and 159 specified in paragraphs 6, 8 and 9 of Schedule 2;

(c) in the case of any transfer payment to an overseas scheme, the modification of section 46 specified in paragraph 2 of Schedule 2.

(1)

S.I. 1985/1323, amended by S.I. 1986/317, S.I. 1986/1716, S.I. 1987/1099, S.I. 1987/1114, S.I. 1988/475 and S.I. 1994/1062.

(2)

Section 14 was amended by paragraph 27 of Schedule 5 to the Pensions Act 1995.

(3)

Section 8 was amended by section 136(2) of and paragraph 23 of Schedule 5 to the Pensions Act 1995.

(4)

Section 159 was amended by paragraph 41 of Schedule 3 to the Pensions Act 1995.

(5)

Section 46 was amended by paragraph 44 of Schedule 5 to the Pensions Act 1995.