The Occupational Pension Schemes (Mixed Benefit Contracted-out Schemes) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations enable certain schemes which provide both salary-related and money purchase benefits to be contracted-out under Part III of the Pension Schemes Act 1993 after 6th April 1997.

Regulation 1 provides for citation, commencement and interpretation. In particular it provides for a scheme to which section 149 of the Pensions Act 1995 applies, being a scheme which provides both such pensions as would satisfy section 9(2) of the Pension Schemes Act 1993 and such pensions as would satisfy section 9(3) of that Act (“a relevant scheme”), to be treated as if those pensions were provided by separate parts of the scheme.

Regulation 2 provides for a relevant scheme to be treated, for the purposes of Part III of the Pension Schemes Act 1993, as if the separate parts of the scheme were separate schemes. It also modifies some provisions in Part III of that Act and provides for the separate parts of a relevant scheme to be treated as though they were separate schemes for the purposes of any regulations made under that Part.

Regulation 3 modifies the Occupational Pension Schemes (Contracting-out) Regulations 1996 in relation to the separate parts of a relevant scheme.

Regulation 4 modifies the Contracting-out (Transfer and Transfer Payment) Regulations 1996 and the Protected Rights (Transfer Payment) Regulations 1996 by providing for further requirements in a case where a transfer payment is between the separate parts of a relevant scheme.

Regulation 5 is a transitional provision relating to the variation or issue of a contracting-out certificate in respect of a relevant scheme which has previously been contracted-out under section 9(3) of the Pensions Schemes Act 1993.

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.