The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

Election to pay contributions equivalent premium

51.—(1) For the purposes of section 51(2) of the Act(1) (which provides for the prescribed person to elect to pay a contributions equivalent premium on termination of certified status) the prescribed person is the trustees of the scheme.

(2) The obligation under section 53(2) of the Act (not to discriminate between different earners when making or abstaining from making elections to pay contributions equivalent premiums) shall not apply to—

(a) cases where an earner’s rights are transferred in accordance with regulations under section 16 (transfer of accrued rights) or under section 8C (transfer, commutation, etc.) of the Act;

(b) married women and widows who, by virtue of regulations made under section 19(4) and (5) of the Contributions and Benefits Act, have elected to pay contributions under that Act at a reduced rate;

(c) cases where, on the death of an earner, there arises an entitlement to a widow’s or widower’s pension which comprises amounts of pension which have accrued by reference to the earner’s service in employment which was not contracted-out employment and to his service in employment which was contracted-out;

(d) cases where the earner has completed less than 2 years' qualifying service for the purposes of Chapter I of Part IV of the Act (preservation) but where, nevertheless, he is entitled under the rules of the scheme to elect, and he has elected, that his accrued rights shall be preserved, and

(e) cases where an earner’s accrued rights to guaranteed minimum pensions are appropriately secured within the meaning of section 15 of the Act (discharge of liability for guaranteed minimum pensions) or where any liability to provide pensions to that earner has been discharged in accordance with regulations under section 8C of the Act,

but in respect of any of the classes of case mentioned in this paragraph an employer shall not discriminate between different earners falling within the same class of case.

(3) An election under section 51(2) of the Act shall be notified to the Department in writing in such form as it may reasonably require for the purpose of identifying the earner to whom the election relates. Such notification shall be given—

(a) where the circumstances specified in section 51(2A)(d) of the Act(2) apply (the scheme is wound up), within 2 years of the cessation of the scheme, or

(b) where the circumstances specified in section 51(2A)(a) to (c) or (e) of the Act apply, within the period beginning one month before, and ending 6 months after, the date on which the person ceases to serve in employment which is contracted-out employment by reference to the scheme.

(4) The Department may, in any particular case or class of case, extend the periods mentioned in paragraph (3) for the making of an election to pay a contributions equivalent premium if it appears to the Department that the circumstances are such that an election could not reasonably be made within the specified period.

(1)

Section 51(2) was substituted by Article 138(1) of the Pensions (Northern Ireland) Order 1995

(2)

Section 51(2A) was substituted by Article 138(1) of the Pensions (Northern Ireland) Order 1995