The Occupational Pension Schemes (Contracting-out) Amendment Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations enable certain salary-related contracted-out schemes, which do not meet the requirements of section 9(2B) of the Pension Schemes Act 1993, to remain contracted-out from the day appointed for the coming into force of those requirements (“the principal appointed day”).

Regulation 1 provides for citation and commencement.

Regulation 2 amends the Occupational Pension Schemes (Contracting-out) Regulations 1996 by inserting a new regulation 76A. This applies where, immediately before the principal appointed day, a scheme satisfies the requirements of subsection (2) of section 9 of the Pension Schemes Act 1993 and, on or immediately after that day, satisfies the requirements of subsection (3) of that section. It provides—

• for such circumstances to be a prescribed exception to section 12(3) of that Act (which prohibits a scheme from changing the basis on which it is contracted-out);

• for the modification of sections 50, 52 and 53 (formerly certified schemes) in relation to the guaranteed minimum pensions provided by the scheme;

• for the continuation of a contracting-out certificate issued before the principal appointed day.

The Secretary of State is not required, by virtue of section 185(1) and (6) of the Pension Schemes Act 1993, to consult any persons before making these Regulations.

An assessment of the compliance costs for employers of the measures arising from the Pensions Act 1995, including these Regulations, has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Private Pensions Directorate, 11th floor, Adelphi, 1-11 John Adam Street, London WC2N 6HT.