The Local Government Pension Scheme (Administration) Regulations 2008

Contracting-out requirements affecting transfers out

80.—(1) There must be deducted from the transfer payment to be made in respect of any person—

(a) the amount of any contributions equivalent premium payable pursuant to section 55 of the 1993 Act; or

(b) an amount sufficient to meet the liability in respect of his contracted-out rights.

(2) But the amount mentioned in paragraph (1) may not be deducted where the transfer payment is made to a registered pension scheme which is contracted-out.

(3) Where the amount mentioned in paragraph (1)(a) is deducted, the appropriate administering authority must use that amount to pay the premium.

(4) Where the amount mentioned in paragraph (1)(b) is deducted, the appropriate administering authority may use the amount in preserving the liability mentioned in that paragraph in the appropriate fund, unless the member wishes a transfer payment in respect of it to be paid to the trustees or managers of a non-contracted out registered pension scheme.

(5) Contracted-out rights, in relation to a member, are—

(a) his and his surviving spouse’s or civil partner’s or nominated cohabiting partner’s rights to guaranteed minimum pensions, and

(b) his section 9(2B) rights (as defined in regulation 1(2) of the Occupational Pension Schemes (Contracting-out) Regulations 1996(1)).

(1)

S.I.1996/1172. The definition of “section 9(2B) rights” was substituted by S.I.1997/786 and amended by S.I.1999/3198.