Occupational Pension Schemes (Contracting-out) Regulations 1996

Citation, commencement and interpretation.

1.—(1) These Regulations may be cited as the Occupational Pension Schemes (Contracting-out) Regulations 1996 and shall come into force on 6th April 1997.

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

“the 1993 Act” means the Pension Schemes Act 1993(1);

“the 1995 Act” means the Pensions Act 1995;

“the actuary” means the actuary appointed for the scheme in pursuance of section 47(1) of the 1995 Act or the actuary otherwise authorised by virtue of these Regulations to provide certification in accordance with section 12A(6) of the 1993 Act(2);

“the Administration Act” means the Social Security Administration Act 1992(3);

“administrator”, in relation to an occupational pension scheme, means the person resident in the United Kingdom having responsibility for the management of the scheme or, in the case of an overseas scheme, means the person resident in the United Kingdom appointed in accordance with section 590(2)(c) of the Taxes Act;

“age-related payment” means a payment made by the Secretary of State in accordance with section 42A(3) of the 1993 Act(4);

“the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992(5);

“earnings period” has the same meaning as in the Social Security (Contributions) Regulations 1979(6);

“emoluments” means so much of a person’s remuneration or profit derived from employed earner’s employment as constitutes earnings for the purposes of the Contributions and Benefits Act;

“employer” includes a person who, by virtue of paragraphs (4) or (5) or regulations 12 to 14, is treated as an employer for the purposes of these Regulations;

“income tax month” means a period beginning on the 6th day of any calendar month and ending on the 5th day of the following calendar month;

“independent trade union” means an independent trade union recognised to any extent for the purpose of collective bargaining;

“insured scheme” means a scheme in which the benefits are secured by one or more policies of insurance or annuity contracts and which is managed by an insurance company which issued the policy or contract;

“minimum funding requirement” shall be construed in accordance with section 56 of the 1995 Act;

“the Occupational Pensions Board” means the Occupational Pensions Board established under section 66 of the Social Security Act 1973(7) and dissolved under section 150 of the 1995 Act;

“overseas scheme” means an occupational pension scheme which is—

(a)

established under irrevocable trust or by such other means as the Secretary of State may approve, and

(b)

administered wholly or primarily, outside the United Kingdom;

“principal appointed day” has the same meaning as in section 7(2B) of the 1993 Act(8);

“scheme” means an occupational pension scheme;

“section 9(2B) rights” are rights (other than rights attributable to voluntary contributions within the meaning of section 111 of the 1993 Act) which are attributable to an earner’s service on or after the principal appointed day in employment which is contracted-out in accordance with section 9(2B) of the 1993 Act(9);

“the Taxes Act” means the Income and Corporation Taxes Act 1988(10);

“trustees”, in relation to a scheme which is not set up or established under a trust, means the managers or administrators of the scheme.

(3) In these Regulations, unless the context otherwise requires, a reference—

(a) to a numbered Part is to the Part of these Regulations bearing that number;

(b) to a numbered regulation or Schedule is to the regulation in, or Schedule to, these Regulations bearing that number;

(c) in a regulation or Schedule to a numbered paragraph is to the paragraph in that regulation or Schedule bearing that number;

(d) in a paragraph to a lettered or numbered sub-paragraph is to the sub-paragraph in that paragraph bearing that letter or number.

(4) For the purposes of these Regulations, any person, government department or public authority who, under Part I of the Contributions and Benefits Act or regulations made thereunder, is, or is to be treated as, the secondary Class 1 contributor shall be treated as the employer of the earner in respect of whom the Class 1 contributions are payable.

(5) For the purposes of these Regulations and without prejudice to paragraph (4), there shall be treated as the employer of a self-employed earner to whom a scheme applies any person (other than that self-employed earner), government department or public authority who makes or is liable to make payments towards the resources of the scheme in respect of that self-employed earner (either under actual or contingent legal obligation or in the exercise of power conferred, or duty imposed, on a Minister of the Crown, government department or any other person, being a power or duty which extends to the disbursement or allocation of public money).

(6) For the purposes of these Regulations, a person is to be regarded as a member of a scheme during a period when his service in relevant employment is such that at the time when it is given it either—

(a) qualifies him for benefits (in the form of pension or otherwise, payable on the termination of his service or on his retirement or his death) under the scheme which in the opinion of the Secretary of State are referable to that period, or

(b) is certain so to qualify him subsequently if it continues for a sufficiently long time and the rules of the scheme and the terms of his contract of service remain unaltered during that time.

(7) Any document required or authorised under the provisions of these Regulations to be sent to any person shall be deemed to have been sent if it was sent by registered post or by recorded delivery service to that person’s usual or last known address or (in the case only of a document required or authorised to be sent to an employer) to the address of the principal place at which any employment to which the document relates is last known to have been carried on.

(1)

1993 c. 48.

(2)

Section 12A(6) was inserted by section 136(5) of the Pensions Act 1995.

(3)

1992 c. 5.

(4)

Section 42A was inserted by section 137(5) of the Pensions Act 1995.

(5)

1992 c. 4.

(6)

S.I. 1979/591; relevant amending instruments are S.I. 1983/10 and 1987/413.

(7)

1973 c. 38.

(8)

Section 7(2B) was inserted by section 136(1) of the Pensions Act 1995.

(9)

Section 9(2B) was inserted by section 136(3) of the Pensions Act 1995.

(10)

1988 c. 1.