The Occupational Pension Schemes (Contracting-out) (Payment and Recovery of Remaining Balances)Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made in exercise of powers inserted in sections 41 and 42A of the Pension Schemes Act 1993, and in sections 37 and 38A of the Pension Schemes (Northern Ireland) Act 1993, by Schedules 9 and 10 respectively to the Welfare Reform and Pensions Act 1999. As the Regulations are accordingly consequential upon enactments contained in that Act, and as they are made no later than six months after the coming into force of those enactments, the Regulations are not subject to the requirement for consultation under section 185 of the Pension Schemes Act 1993.

The Regulations make provision for the manner in which amounts are to be paid to a secondary contributor by the Inland Revenue in circumstances where the total amount of contributions due from that contributor under Part I of the Social Security Contributions and Benefits Act 1992 or Part I of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 is insufficient to enable him to reduce the contributions due in respect of particular primary contributors by the full amounts required under the sections mentioned above. Provision is also made for amounts to be adjusted so as to avoid the payment of trivial or fractional amounts.

The Regulations also provide for the manner in which the Inland Revenue may recover any amounts which they have paid to secondary contributors but which they were not required to pay.