The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) (No. 2) Regulations 2011

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made under section 15 of the Pensions Act 2007 (c.22), which abolishes contracting-out of the state additional pension for pension schemes on a defined contribution basis. It provides that contracting-out certificates in relation to money purchase contracted-out schemes and appropriate schemes (as defined by section 181(1) of the Pension Schemes Act 1993 (c.48)) cease to have effect from the abolition date.

These Regulations make consequential amendments to primary legislation as a consequence of the abolition of contracting-out for defined contribution pension schemes.

References to, and provisions which relate to, schemes which are contracted-out on a defined contribution basis are either omitted or, where appropriate, replaced with references to schemes which were contracted-out on that basis.

This legislation reduces the costs of administrative burdens on the private sector and civil society organisations. An assessment of the impact has been made; a copy is available in the libraries of both Houses of Parliament, and is annexed to the Explanatory Memorandum which is available alongside the instrument on www.legislation.gov.uk.