The Pension Sharing (Safeguarded Rights) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for the treatment of safeguarded rights by pension arrangements once a pension has been shared.

Regulation 1 provides for citation, commencement and interpretation of the Regulations.

Regulation 2 defines contracted-out rights.

Regulation 3 describes the requirements to be satisfied by schemes holding safeguarded rights.

Regulation 4 provides for the identification of safeguarded rights.

Regulation 5 sets out how safeguarded rights in money purchase schemes are to be valued.

Regulation 6 describes the ways of giving effect to safeguarded rights in money purchase schemes.

Regulation 7 describes the requirements which pensions and annuities provided by money purchase schemes must meet in order for them to be used to give effect to safeguarded rights.

Regulation 8 sets out the conditions which an insurance company must satisfy if it is to provide an annuity in order to give effect to safeguarded rights.

Regulation 9 describes the ways of giving effect to safeguarded rights in salary related schemes.

Regulation 10 sets out the payable age in respect of safeguarded rights in salary related contracted-out schemes.

Regulation 11 sets out how payments made in respect of safeguarded rights should be invested and used.

Regulation 12 specifies the circumstances in which payments in respect of safeguarded rights may be suspended or forfeited.

An assessment of the cost to business of the provisions of the Welfare Reform and Pensions Act 1999, including these Regulations, is detailed in the Regulatory Impact Assessment for that Act. A copy of this Assessment has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Pensions on Divorce, 3rd Floor, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.