The Occupational and Stakeholder Pension Schemes (Miscellaneous Amendments) Regulations 2013

JurisdictionUK Non-devolved
CitationSI 2013/459

2013 No. 459

Pensions

The Occupational and Stakeholder Pension Schemes (Miscellaneous Amendments) Regulations 2013

Made 28th February 2013

Laid before Parliament 5th March 2013

Coming into force 6th April 2013

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 12C(1), 20(1) and (2), 37(1) and (2), 73(2)(b) and (4)(b), 93(1)(a), 181(1), 182(2) and (3), 183(1) and 185 of the Pension Schemes Act 19931, sections 68(2)(e), 120(1), 124(1) and 174(2) of the Pensions Act 19952and sections 1(1)(b) and (5), 2(2), 3(1) and (5), 8(1), 40(1) and 83(4), (6)(a) and (11) of the Welfare Reform and Pensions Act 19993.

Secretary of State has consulted with such persons as he considers appropriate in accordance with section 185(1) of the Pension Schemes Act 19934, section 120(1) of the Pensions Act 1995 and section 83(11) of the Welfare Reform and Pensions Act 1999.

S-1 Citation and commencement

Citation and commencement

1. These Regulations may be cited as the Occupational and Stakeholder Pension Schemes (Miscellaneous Amendments) Regulations 2013 and shall come into force on 6th April 2013.

S-2 Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

2.—(1) The Occupational Pension Schemes (Preservation of Benefit) Regulations 19915are amended as follows.

(2) In regulation 1(3) (interpretation)6, after the definition of “the 1995 Act” insert—

““European pensions institution” has the meaning given in section 293(8) of the Pensions Act 2004;”.

(3) After regulation 11A (further alternative to short service benefit – transfer to an overseas arrangement)8, insert—

S-11B

Further alternative to short service benefit – transfer to a European pensions institution without consent

11B.—(1) For the purposes of section 73(2)(b) and (4)(b) of the Act (prescribed alternatives to short service benefit), a scheme may, instead of providing short service benefit, provide for the transfer of the member’s accrued rights to a European pensions institution without the member’s consent where the conditions in paragraphs (2) and (3) of regulation 12 are satisfied.

(2) For the purposes of paragraph (1) of this regulation, references in paragraphs (2), (3) and (4A) of regulation 12 to “receiving scheme” are to be read as “receiving European pensions institution”.

(3) Where it is proposed that a member’s accrued rights are to be transferred in accordance with this regulation, information about the proposed transfer and details of the value of the rights to be transferred (including rights in respect of death in service benefits and survivors’ benefits) shall be furnished to the member not less than one month before the date on which the proposed transfer is due to take place.”.

(4) In regulation 12(2) (transfer of member’s accrued rights without consent), in sub-paragraphs (a) and (b), for “apply to” substitute “relate to persons who are or have been in”.

S-3 Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996

3. In regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (alteration of rules of contracted-out schemes)10

(a) in paragraph (1), after “paragraph (2)” insert “, (2ZA)”;

(b) in paragraph (2), for “section 9(2B) rights under the scheme” substitute “rights which are to accrue under the scheme in so far as such rights are attributable to an earner’s service in contracted-out employment on or after the date on which the alteration to the rules takes effect (other than rights attributable to the payment of voluntary contributions)”; and

(c) after paragraph (2) insert—

S-2ZA

“2ZA The rules of a contracted-out salary-related scheme cannot be altered in relation to any section 9(2B) rights under the scheme unless—

(a) following the alteration, the scheme provides benefits for the member and for that member’s widow, widower or surviving civil partner, in respect of the period of pensionable service to which the alteration relates and in which the member’s employment was contracted-out under section 9(2B) of the 1993 Act (requirements for certification of schemes: general) which are at least equal to the benefits that would be provided by a reference scheme (within the meaning of section 12B(2) of the 1993 Act (reference scheme)),

(b) the alteration is one to which section 67 of the 1995 Act (the subsisting rights provisions) does not apply,

(c) the alteration is one which is not a protected modification or a detrimental modification within the meaning given in section 67A of the 1995 Act (the subsisting rights provisions: interpretation), or

(d) if the alteration is a detrimental modification within the meaning of section 67A of the 1995 Act, the actuarial equivalence requirements provided for in sections 67C and 67D of that Act (the actuarial equivalence requirements and further provisions) are met in relation to the proposed modification of those rights.

S-2ZB

2ZB (a) This paragraph applies in the case of alterations falling within paragraph (2ZA)(c) or (d), but not falling within (2ZA)(a) or (b).

(b) Subject to sub-paragraph (c), the altered scheme must provide for a pension to be paid to the member’s widow, widower or surviving civil partner in respect of the period in which the member’s employment was contracted-out under section 9(2B) of the 1993 Act (“relevant survivor’s post-1997 pension”) which is at least as generous, either as regards the amount of the pension or as regards the circumstances in which it will be paid, as it would have been before the alteration.

(c) In relation to a member who is an active member of the scheme immediately before the alteration takes effect, the requirement in sub-paragraph (b) shall be deemed to be satisfied if the relevant survivor’s post-1997 pension which the scheme would provide in respect of the member if the member left pensionable service immediately after the alteration is at least as generous as the relevant survivor’s post-1997 pension which the scheme would have provided in respect of the member had the member left service immediately before the alteration.

(d) In sub-pararaph (c), “active member” means a person who is in pensionable service under the scheme.”.

S-4 Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations 1996

Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations 1996

4.—(1) The Contracting-out (Transfer and Transfer Payment) Regulations 199612are amended as follows.

(2) In regulation 1(2) (interpretation), for the definition of ““connected employer transfer” and “connected employer transfer payment”” substitute—

““connected employer transfer” and “connected employer transfer payment” mean respectively a transfer of guaranteed minimum pensions from a salary-related contracted-out scheme to a salary-related contracted-out scheme and a transfer payment in respect of section 9(2B) rights from a salary-related contracted-out scheme to a salary-related contracted-out scheme where either—

(a) the transferring scheme and the receiving scheme relate to persons who are or have been in employment with the same employer; or

(b) the transferring scheme and receiving scheme relate to persons who are or have been in employment with different employers, and the earner or person concerned is one of a group of persons in respect of whom transfers or transfer payments are being made from the transferring scheme to the receiving scheme and either—

(i) the transfer or transfer payment is a consequence of a financial transaction between the employers, or

(ii) each of the employers is one of a group of companies consisting of a holding company and one or more subsidiaries within the meaning of section 1159(1) of the Companies Act 2006 (meaning of “subsidiary” etc),

and, in this definition, “salary-related contracted-out scheme” includes a scheme which was formerly a salary-related contracted-out scheme;13.”.

(3) In regulations 4 (connected employers transfers of guaranteed minimum pensions), 7(2)(b) (transfers of liability in respect of section 9(2B) rights: general) and 9 (connected employer transfer payments) omit “to a salary-related contracted-out scheme”.

S-5 Amendment of the Occupational Pension Schemes (Winding Up) Regulations 1996

Amendment of the Occupational Pension Schemes (Winding Up) Regulations 1996

5. In regulation 6(4) of the Occupational Pension Schemes (Winding Up) Regulations 1996 (arrangement for discharge of liabilities under section 74)14, after “regulation” insert “11B or”.

S-6 Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 1996

Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 1996

6. In regulation 2(b) (pre-1986 leavers) of the Occupational Pension Schemes (Transfer Values) Regulations 199615for “the rate of inflation as measured by the retail price index” substitute “a rate that, in the opinion of the Secretary of State, maintains the value of pensions or other benefits by reference to the rise in the general level of prices in Great Britain”.

S-7 Amendment of the Pension Sharing (Pension Credit Benefit) Regulations 2000

Amendment of the Pension Sharing (Pension Credit Benefit) Regulations 2000

7. For regulation 32 (increase of relevant pension) of the Pension Sharing (Pension Credit Benefit) Regulations 200016substitute—

S-32

Increase of relevant pension

32.—(1) Subject to regulations 33 and 34, a relevant pension shall be increased each year by either the appropriate percentage, or, where the rules of an occupational pension scheme require the relevant pension to be increased at intervals of not more than 12 months, the relevant percentage.

(2) A relevant pension shall not be...

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