The Pensions on Divorce etc. (Pension Sharing) (Scotland) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision with respect to pension-sharing in Scotland, under the Welfare Reform and Pensions Act 1999, where parties divorce or their marriage is declared to be null. Regulations 2 and 3 relate to the sharing of rights under pension arrangements. Regulations 4 and 5 relate to the sharing of state scheme rights.

Section 29 of the 1999 Act provides for the creation of a right of one party to a marriage in the other party’s shareable rights under a pension arrangement and for the creation of a corresponding liability of that other party. Section 28 of the 1999 Act provides that the provisions of section 29 apply when a pension-sharing arrangement is activated. Section 28 specifies various forms of pension-sharing. In particular, it specifies a provision for pension-sharing which corresponds to the provision which may be made in a pension sharing order under the Family Law (Scotland) Act 1985 and which is in such form as the Secretary of State may prescribe. Regulation 2 prescribes the form of that provision.

Section 28 also provides that the provision corresponding to the pension-sharing order under the 1985 Act is to be contained in a qualifying agreement between the parties to a marriage and that a qualifying agreement is one which has been entered into in such circumstances as the Secretary of State may prescribe. Regulation 3 prescribes those circumstances.

Section 49 of the 1999 Act provides for the creation of a right of one party to a marriage in the other party’s shareable state scheme rights and for the creation of the corresponding liability of that other party (“benefit sharing”).

Section 48 of the 1999 Act provides that the provisions of section 49 apply when benefit sharing is activated. Section 48 specifies various forms of benefit sharing. In particular, it specifies a provision for benefit sharing which corresponds to the provision which may be made in a pension sharing order under the Family Law (Scotland) Act 1985 and which is in such form as the Secretary of State may prescribe. Regulation 4 prescribes the form of that provision.

Section 48 also provides that the provision corresponding to the pension sharing order under the 1985 Act is to be contained in a qualifying agreement between the parties to the marriage and that a qualifying agreement is one which has been entered into in such circumstances as the Secretary of State may prescribe. Regulation 5 prescribes those circumstances.

An assessment of the cost to business of the provisions of the Welfare Reform and Pensions Act 1999, including these Regulations, is detailed in the Regulatory Impact Assessment for that Act. A copy of this Assessment has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Pensions on Divorce, 3rd Floor, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.