Contracting-out requirements affecting transfers out
92.—(1) There must be deducted from the transfer payment to be made in respect of any person to a contracted-in defined benefit registered pension scheme—
(a)the amount of any contributions equivalent premium payable pursuant to section 55 of the Pension Schemes Act 1993(1); or
(b)an amount sufficient to meet the liability in respect of the person’s contracted-out rights.
(2) Where the amount mentioned in paragraph (1)(a) is deducted, the appropriate administering authority must use that amount to pay the premium.
(3) 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 sub-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 contracted-out defined benefit or contracted-in defined contribution registered pension scheme.
(4) Contracted-out rights, in relation to a member, are—
(a)the member’s, and any surviving spouse, civil partner or cohabiting partner’s rights to guaranteed minimum pensions; and
(b)the member’s section 9(2B) rights as defined in regulation 1(2) of the Occupational Pension Schemes (Contracting-out) Regulations 1996(2).
Section 55 was repealed by the Pensions Act 2014 (c.19), schedule 13(1), paragraph 37 subject to savings by S.I. 2015/1502.
S.I. 1996/1172; the definition of section 9(2B) rights in regulation 1(2) was amended by S.I. 1997/786, S.I. 1999/3198 and S.I. 2011/1246 which was also amended by S.I. 1996/1462, S.I. 2015/1677 and S.I. 2016/200.