The Occupational and Personal Pension Schemes (Contracting-out) (Miscellaneous Amendments) Regulations 2002

Amendment of the Protected Rights (Transfer Payment) Regulations 1996

3.—(1) The Protected Rights (Transfer Payment) Regulations 1996(1) shall be amended in accordance with the following paragraphs of this regulation.

(2) After regulation 4 (transfer payments to salary-related contracted-out schemes)(2) there shall be inserted the following regulation:—

“Transfer payments to section 53 schemes

4A.— (1) A transfer payment may be made to a section 53 scheme in the circumstances specified in paragraph (2) and subject to the conditions specified in paragraph (3).

(2) The circumstances referred to in paragraph (1) are that—

(a) the member consents in writing to the making of the transfer payment; and

(b) either—

(i) the member has entered employment with an employer who is or was a contributor to the section 53 scheme, or

(ii) the member was previously a member of the receiving scheme.

(3) The conditions referred to in paragraph (1) are that—

(a) the transfer payment (whether or not it forms part of a larger payment giving effect to both protected and other rights) is of an amount at least equal to the value of the protected rights to which effect is being given; and

(b) the transfer payment is approved by the Inland Revenue, whether or not subject to conditions.

(4) In this regulation “section 53 scheme” means “an occupational pension scheme which was formerly a contracted-out scheme and which the Inland Revenue are under a duty to supervise in accordance with section 53 of the 1993 Act”.”

(3) In regulation 5 (transfer payments to overseas schemes)—

(a) after the words “overseas scheme” there shall be inserted the words “or an overseas arrangement”;

(b) in paragraph (b) for the words from “and has entered” to the end of the paragraph there shall be substituted the words “and, where the transfer payment is to be made to an overseas scheme, has entered employment to which that scheme applies;”;

(c) in paragraph (d) after the words “the scheme” there shall be inserted the words “or arrangement”; and

(d) in paragraphs (d) and (e) after the words “receiving scheme” there shall be inserted the words “or arrangement”.

(1)

S.I. 1996/1461, to which there are no amendments relevant to these Regulations.

(2)

Regulation 4 was amended by regulation 3 of, and paragraph 6(3) of Schedule 1 to, S.I. 1997/786.