Pension Schemes Act 1993 (c. 48)

[F1 Part IIIA U.K. Safeguarded rights

Textual Amendments

F1 Pt. 3A inserted (11.11.1999 for specified purposes, 1.12.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), ss. 36, 89(5)(a); S.I. 2000/1047, art. 2(2)(d), Sch. Pt. 4

68A Safeguarded rights. U.K.

(1) Subject to subsection (2), the safeguarded rights of a member of an occupational pension scheme or a personal pension scheme are such of his rights to future benefits under the scheme as are attributable (directly or indirectly) to a pension credit in respect of which the reference rights are, or include, contracted-out rights or safeguarded rights.

(2) If the rules of an occupational pension scheme or a personal pension scheme so provide, a member’s safeguarded rights are such of his rights falling within subsection (1) as—

(a) in the case of rights directly attributable to a pension credit, represent the safeguarded percentage of the rights acquired by virtue of the credit, and

(b) in the case of rights directly attributable to a transfer payment, represent the safeguarded percentage of the rights acquired by virtue of the payment.

(3) For the purposes of subsection (2)(a), the safeguarded percentage is the percentage of the rights by reference to which the amount of the credit is determined which are contracted-out rights or safeguarded rights.

(4) For the purposes of subsection (2)(b), the safeguarded percentage is the percentage of the rights in respect of which the transfer payment is made which are contracted-out rights or safeguarded rights.

(5) In this section—

• “contracted-out rights” means such rights under, or derived from—

  (a)

  an occupational pension scheme contracted-out by virtue of section 9(2) or (3), or

  (b)

  an appropriate personal pension scheme,

  as may be prescribed;

• “reference rights”, in relation to a pension credit, means the rights by reference to which the amount of the credit is determined.]

Modifications etc. (not altering text)

C1 S. 68A(2)(a) applied (1.5.2001) by The National Health Service Pension Scheme Regulations 1995 (S.I. 1995/300), Sch. 2A para. 2 (as inserted by S.I. 2001/1428, reg. 1, Sch. 1 para. 3)

C2 S. 68A(2)(a) applied (with effect in accordance with reg. 1(2) of the amending S.S.I.) by The National Health Service Superannuation Scheme (Scotland) Regulations 1995 (S.I. 1995/365), Sch. 1A para. 5 (as inserted by S.S.I. 2001/465, reg. 1(2), Sch. 1 para. 4)

C3 S. 68A(2)(a) applied (6.4.2005) by The Armed Forces Pension Scheme Order 2005 (S.I. 2005/438), art. 1, Sch. 1 rule D.13(2)