Occupational Pension Schemes (Contracting-out) Regulations 1996

Further contracting-out requirements for money purchase contracted-out schemes

30.—(1) For the purpose of section 9(3) of the 1993 Act (occupational pension schemes may be contracted-out if the requirements imposed by virtue of sections 26 to 32 of the 1993 Act and other prescribed requirements are satisfied) the prescribed requirements are—

(a) restrictions imposed under section 40 of the 1995 Act (restriction on employer-related investments) apply to the scheme and the scheme complies with those restrictions;

(b) in a case where the rules of the scheme provide for a member to make payments in addition (“additional payments”) to the minimum payments that are made to that scheme, the rules also provide that those payments shall, subject to paragraph (2), be invested so as to provide money purchase benefits;

(c) the rules of the scheme require—

(i) in the case of an insured scheme, the insurance company to be notified of any alteration in the membership of the scheme and the amount of earnings of any member,

(ii) minimum payments to be invested on behalf of the member within one month of the end of the income tax month to which they relate and age-related payments to be invested on behalf of the member within one month of the date of payment by the Secretary of State.

(2) The requirement referred to in paragraph (1)(b) shall not apply in a case where the rules of the scheme provide that the additional payments made shall entitle the member to benefits which are not money purchase benefits and such benefits are paid in addition to the benefits derived from minimum payments.