14 Circumstances in which minimum contributions are not to be paid to schemes
1 Minimum contributions shall not be paid in respect of an earner for any part of the tax year in which he attains pensionable age unless they were payable, or would have been payable had his earnings not been taken to be nil under regulation 17, in respect of him for the previous tax year.
2 After a scheme has ceased to be appropriate, minimum contributions shall not, except as provided by paragraph (11), be paid to the trustees or managers of that scheme for any period during which that scheme was appropriate by virtue of an appropriate scheme certificate which had effect from a date earlier than that on which it ceased to be appropriate.
3 After effect has been given to protected rights of an earner under a scheme, minimum contributions shall not, except as provided by paragraph (11), be paid to the trustees or managers of that scheme for any period during which that scheme was the earner’s chosen scheme by virtue of a notice given under section 1(9) of the Act which had effect from a date earlier than that on which effect was given to those protected rights.
4 Where—
(a) but for the provisions of paragraph (2), or paragraphs (2) and (3), minimum contributions would have fallen to be paid, to the trustees or managers of a scheme (“the first scheme”) which has ceased to be appropriate, for—
(i) any tax year before it ceased to be appropriate, or
(ii) any part of a tax year before it ceased to be appropriate;
(b) no minimum contributions have been paid, except under this paragraph, in respect of that earner for the whole or any part of the period which begins on the first day of —
(i) the tax year mentioned in sub-paragraph (a)(i), or
(ii) the tax year mentioned in sub-paragraph (a)(ii),
and ends on the day before that on which the first scheme ceased to be appropriate; and
(c) with effect from the date on which the first scheme ceased to be appropriate, another scheme (“the second scheme”) which is an appropriate scheme has become the chosen scheme of the earner in respect of whom the minimum contributions mentioned in sub-paragraph (a) would have fallen to be paid,
the minimum contributions which would have fallen to be paid to the trustees or managers of the first scheme, except any of them that have been paid in accordance with paragraph (5), shall be paid to the trustees or managers of the second scheme.
5 Where, but for the provisions of paragraph (3), or paragraphs (2) and (3), minimum contributions would have fallen to be paid to the trustees or managers of a scheme for any period before the end of the tax year in which effect was given to the protected rights in question, those minimum contributions shall, subject to paragraph (6), be paid, in the circumstances described in paragraphs (7), (10) and (13), to the persons described in paragraphs (8), (9), (11), (12) and (14) (and in no other circumstances and to no other persons).
6 In the case of a scheme which has ceased to be appropriate—
(a) no payment shall be required under paragraph (5) if effect was given to the protected rights in question later than the end of the tax year immediately following the tax year which included the day with effect from which the scheme ceased to be appropriate; and
(b) no payment shall be required under paragraph (5) of any minimum contributions that—
(i) would have fallen to be paid for a period after the end of the tax year immediately preceding the tax year which included the day with effect from which the scheme ceased to be appropriate, or
(ii) are required under paragraph (4) to be paid to the trustees or managers of another scheme.
7 Paragraphs (8) and (9) apply where effect has been given to the earner’s protected rights by the making of a transfer payment to another personal pension scheme or to an occupational pension scheme.
8 Where the personal pension scheme is an appropriate scheme or the occupational pension scheme is a money purchase contracted-out scheme the minimum contributions shall be paid to the trustees or managers of that scheme.
9 Where the circumstances described in paragraph (8) do not exist and the minimum contributions are payable for, or for part of, the tax year in which the earner attained pensionable age or died before attaining that age, the minimum contributions shall be paid to the earner or his widow or her widower, or if the earner died unmarried, they may at the Secretary of State’s discretion be paid to any person.
10 Paragraphs (11) and (12) apply where effect has been given to the earner’s protected rights by the purchase of an annuity or by the provision by the scheme of a pension.
11 Where—
(a) the amount of the minimum contributions in question is at least 10 times as great as the lower earnings limit (within the meaning of section 1 of the Social Security Pensions Act 1975) for the tax year in which the Secretary of State first becomes aware that the minimum contributions are payable, or would be payable but for paragraph (2) or (3); and
1975 c. 60.
(b) the Secretary of State is satisfied that the minimum contributions will be applied fairly to increase the amount of the annuity or pension,
the minimum contributions shall be paid (in the case of an annuity) to the insurance company from which the annuity has been purchased or (in the case of a pension) to the trustees or managers of the scheme.
12 Where the circumstances described in paragraph (11) do not exist and the minimum contributions are payable for, or for part of, the tax year in which the earner attained pensionable age or died before attaining that age, the minimum contributions shall be paid to the earner or his widow or her widower, or if the earner died unmarried, they may at the Secretary of State’s discretion be paid to any person.
13 Paragraph (14) applies where effect has been given to the earner’s protected rights by the award of a lump sum.
14 Where the minimum contributions are payable for, or for part of, the tax year in which the earner attained pensionable age or died before attaining that age, the minimum contributions shall be paid to the earner or his widow or her widower, or if the earner died unmarried, they may at the Secretary of State’s discretion be paid to any person.