The State Scheme Premiums (Actuarial Tables) Regulations 1992

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the State Scheme Premiums (Actuarial Tables) Regulations 1992, and shall come into force on 6th April 1993.

(2) In these Regulations, unless the context otherwise requires—

“the 1975 Act” means the Social Security Pensions Act 1975;

“the 1977 Act” means the Social Security (Miscellaneous Provisions) Act 1977(1);

“the 1986 Act” means the Social Security Act 1986;

“the Contracting-out Regulations” means the Occupational Pension Schemes (Contracting-out) Regulations 1984(2);

“accrued rights factor” means—

(a)

in the case of an accrued rights premium, the weekly amount (calculated in accordance with the provisions of section 44(6) of the 1975 Act(3) as modified, in a case to which section 22(13) of the 1977 Act(4) applies, by regulation 47 of the Contracting-out Regulations) of the guaranteed minimum pension to which the earner inquestion had accrued rights under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(b)

in the case of a pensioner’s rights premium, the weekly amount (calculated as mentioned in sub-paragraph (a) above) of the guaranteed minimum pension of the person in question under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(c)

in the case of a transfer premium, the weekly amount (calculated without regard to the provisions of section 44(6) of the 1975 Act) of the guaranteed minimum pension to which the earner in question had accrued rights under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(d)

in the case of a limited revaluation premium, the weekly amount (calculated, in a case where the scheme has ceased to be contracted-out, in accordance with the provisions of section 45(3) of the 1975 Act(5)) of the guaranteed minimum pension to which the earner in question had accrued rights under the scheme in question when the event giving rise to the liability for the premium occurred, multiplied by 52;

(e)

in the case of a contracted-out protected rights premium or a personal pension protected rights premium, an amount arrived at by multiplying by 52 the weekly amount of the guaranteed minimum pension to which the person in respect of whom the premium falls to be paid is treated as entitled under any one or more of section 29(2) of the 1975 Act(6), section 29(2A) of the 1975 Act(7) and section 4 of the 1986 Act and which derives from the minimum contributions, minimum payments or transfer payments from which the rights whose cash equivalent is included in the premium derive, or, in a case where none of those provisions of the 1975 Act and the 1986 Act yet falls to be applied to him, that part of that guaranteed minimum pension which has so far accrued;

“average market level indicator” has the meaning given in regulation 10 of these Regulations;

“the Board” means the Occupational Pensions Board;

“event giving rise to the liability for the premium” means—

(a)

in the case of a transfer premium, the election to pay it;

(b)

in the case of a limited revaluation premium, the termination of the service in contracted-out employment of the person in respect of whom the premium falls to be paid;

(c)

in the case of an accrued rights premium or a pensioner’s rights premium, one of the following events, namely—

(i)

the ceasing of the scheme to be contracted-out, or

(ii)

the Board’s withdrawal of their approval, given under section 44(1) of the 1975 Act(8), of arrangements made or to be made in relation to the scheme for the preservation or transfer of the accrued rights to guaranteed minimum pensions of, or the liability for the payment of guaranteed minimum pensions to, the person in respect of whom the premium falls to be paid,

if it occurs in such circumstances that immediately thereafter the scheme is not contracted-out, and that person’s entitlement or accrued rights to guaranteed minimum pensions under the scheme are not subject to approved arrangements under section 44(1) of the 1975 Act; and

(d)

in the case of a contracted-out protected rights premium or a personal pension protected rights premium, one of the following events, namely—

(i)

the ceasing of the scheme to be a contracted-out scheme or an appropriate scheme (as the case may be); or

(ii)

the Board’s withdrawal of their approval, given under section 44ZA(1) of the 1975 Act(9) or section 5(1) of the 1986 Act (as the case may be), of arrangements made or to be made in relation to the scheme for the preservation or transfer of the protected rights of the person in respect of whom the premium falls to be paid,

if it occurs in such circumstances that immediately thereafter the scheme is not a contracted-out scheme (if an occupational pension scheme) or an appropriate scheme (if it is a personal pension scheme), and that person’s protected rights under the scheme are not subject to approved arrangements under section 44ZA(1) of the 1975 Act or section 5(1) of the 1986 Act (as the case may be);

“gross dividend yield” means the gross dividend yield applicable to the All-Share Index compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries;

“15-year gross redemption yield” means the gross redemption yield compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries, applicable to 15-year British Government Stocks with high coupons;

“20-year gross redemption yield” means the gross redemption yield compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries, applicable to 20-year British Government Stocks with high coupons;

“15-year index number” means, in relation to any yield falling within one of the range of yields specified in the “Yield per cent” column in Schedule 6, the number shown opposite that range in the “Index number” column in that Schedule;

“20-year index number” means, in relation to any yield falling within one of the range of yields specified in the “Yield per cent” column in Schedule 7, the number shown opposite that range in the “Index number” column in that Schedule;

“market level indicator” has the meaning given in regulation 10 of these regulations;

“monthly market level indicator” has the meaning given in regulation 10 of these Regulations;

“scheme” means occupational pension scheme or personal pension scheme, as the case may be;

and other expressions have the same meaning as in the 1975 Act, or, if they have no meaning in that Act, the same meaning as in the 1986 Act.

(1)

1977 c. 5.

(2)

S.I. 1984/380 as amended by the Social Security Act 1986 (c. 50) section 18(1), the Social Security Act 1989 (c. 24) Schedule 6, paragraph 21 and by the Official Secrets Act 1989 (c. 6) Schedule 1, paragraph 1(j) and by the following amendment instruments S.I.1985/1323, 1928, 1930, 1986/317, 1716, 1987/1100, 1103, 1104, 1106,1114, 1117, 1988/475, 1989/500, 1990/1142.

(3)

Section 44(6) was substituted by the Social Security Act 1980 (c. 30), section 3(8) and paragraph (a) of that subsection was substituted by the Social Security Act 1985 (c. 53), Schedule 3, paragraph 4.

(4)

Section 22(13) was amended by the Social Security Act 1980, Schedule 4, paragraph 12.

(5)

Section 45(3) was amended by the Social Security Act 1980 (c. 30), section 3(9), the Social Security Act 1985 (c. 53), Schedule 3, paragraphs 5 and 7, the Social Security Act 1986 (c. 50), Schedule 8, paragraph 10 and the Social Security Act 1989 (c. 24), Schedule 6, paragraphs 12(a) and (b) and Schedule 9.

(6)

Section 29(2) was amended by the Social Security Act 1986, Schedule 10, paragraph 14(b) and the Social Security Act 1989, Schedule 1, paragraph 11 and was modified in relation to protected rights by the Social Security Act 1986 sections 4 and 5(9)(b) and by regulations 2 and 3 of S.I. 1987/1113 and by regulation 4(3) of S.I.1987/1118.

(7)

Subsection (2A) was inserted into section 29 by the Social Security Act 1986 (c. 50), Schedule 2, paragraph 3.

(8)

Section 44(1) was amended by the Social Security Act 1986, Schedule 2, paragraph 6(1)(f) and Schedule 10, paragraph 23(1).

(9)

Section 44ZA was inserted by the Social Security Act 1986, Schedule 2, paragraph 7.