The Protected Rights (Transfer Payment) (Amendment) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Protected Rights (Transfer Payment) Regulations 1996 (S.I. 1996/1461) (“the principal Regulations”).

Regulation 1(2) of the principal Regulations is amended to insert a new definition (regulation 2). Regulation 2 of the principal Regulations is amended to include among the schemes that may give effect to a member’s protected rights by making a transfer payment to an appropriate personal pension scheme or an occupational pension scheme, the money purchase part of a mixed benefit contracted-out scheme and a scheme which has ceased to be the money purchase part of a mixed benefit contracted-out scheme (regulation 3). Regulation 3 of the principal Regulations is also amended so that it no longer applies to transfer payments to money purchase contracted-out schemes. The effect of regulation 3 as amended is that it applies to transfer payments to appropriate personal pension schemes only (regulation 4).

New regulations 3B and 3C are inserted into the principal Regulations in order to provide for transfer payments to be made to a money purchase contracted-out scheme or the money purchase part of a mixed benefit contracted-out scheme. New regulation 3B provides for transfers with a member’s consent. New regulation 3C provides for transfers without a member’s consent (regulation 5).

A full regulatory impact assessment of the effect that these Regulations will have on the costs of business has been prepared and a copy placed in the libraries of both Houses of Parliament. Copies may be obtained from the Department for Work and Pensions, Better Regulation Unit, 4th Floor, Adelphi, 1-11 John Adam Street, London WC2N 6HT.