Pension Schemes Act 1993 (c. 48)

Part III E+W+S F1 [F2 Schemes that were contracted-out etc] and Effects on Members’ State Scheme Rights ...

Textual Amendments

F1 Words in Pt. 3 heading omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(b)

F2 Words in Pt. 3 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(a)

Modifications etc. (not altering text)

C1 Pt. III power to modify conferred by Social Security Administration Act 1992 (c. 5), s. 148 (as read with Pensions Act 1995 (c. 26), ss. 128(3)(4), 180(2) (with s. 128(5)(6)); Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 33(2)-(4), 86(1)(b)(2))

C2 Pt. III: power to modify conferred (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 149(1), 180(1); S.I. 1996/778, art. 2(6); S.I. 1997/664, art. 2(3), Sch. Pt. 2

C3 Pt. III applied (with modifications) (6.4.1997) by The Occupational Pension Schemes (Mixed Benefit Contracted-out Schemes) Regulations 1996 (S.I. 1996/1977), regs. 1(1), 2(4)(a)-(f)

C4 Pt. III: power to transfer functions conferred (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), ss. 23, 28(3); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

C5 Pt. 3 modified (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 7(2); S.I. 2014/1683, art. 2

Chapter III E+W+S Termination of contracted-out or appropriate scheme status: state scheme premiums

Approval of arrangements for schemes ceasing to be certified E+W+S

F3 50 Powers of Inland Revenue to approve arrangements for scheme ceasing to be certified. E+W+S

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Textual Amendments

F3 S. 50 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 33 (with a temp. saving in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(3A) (as inserted by S.I. 2015/2058, art. 3(3)(d)))

51 Calculation of guaranteed minimum pensions preserved under approved arrangements. E+W+S

(1) This section applies where—

(a) an earner’s guaranteed minimum pension rights or accrued rights to guaranteed minimum pensions under a scheme [F4 satisfy prescribed conditions], and

(b) one or more of the five tax years ending with the tax year in which the scheme [F5 ceased] to be contracted-out is a relevant year in relation to the earner.

(2) Where this section applies then, except in such circumstances as may be prescribed, section 16(1) shall have effect, subject to the following provisions, that is to say—

(a) any earnings factor shall be taken to be that factor as increased by the last order under section 21 of the M1 Social Security Pensions Act 1975 or section 148 of the M2 Social Security Administration Act 1992 to come into force before those five tax years; and

(b) any relevant earnings factors derived from contributions or earnings in respect of any year (“the relevant contributions year”) shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which—

(i) constitutes or begins before the relevant contributions year, or

(ii) begins after the final relevant year in relation to the earner.

(3) Subsection (2) shall not apply in any case where its application would result in the amount of the guaranteed minimum being greater than it would have been apart from that subsection.

(4) Regulations may provide that subsections (1) to (3) shall have effect with prescribed modifications in relation to a scheme which, immediately before it ceased to be contracted-out, contained provisions authorised by section 16(2).

(5) In this section “relevant year” and “final relevant year” have the same meanings as in section 16.

Textual Amendments

F4 Words in s. 51(1)(a) substituted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 46; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II

F5 Word in s. 51(1)(b) substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 34

Modifications etc. (not altering text)

C6 S. 51(1)-(3) modified (6.4.1997) by Occupational Pension Schemes (Contracting-out) Regulations 1996 (S.I. 1996/1172), regs. 1(1), 67

C7 S. 51(1)-(3) excluded (6.4.1997) by Occupational Pension Schemes (Contracting-out) Regulations 1996 (S.I. 1996/1172), regs. 1(1), 69

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Marginal Citations

M1 1975 c. 60.

M2 1992 c. 5.

Supervision of formerly certified schemes E+W+S

[F6 52 Supervision of former salary related contracted-out schemes E+W+S

Section 53 shall apply for the purpose of making provision for securing the continued supervision of any scheme that was a salary related contracted-out scheme, other than a public service pension scheme, if any person is entitled to receive or has accrued rights to—

(a) a guaranteed minimum pension under the scheme, or

(b) a pension under the scheme attributable to service on or after the principal appointed day but before the scheme ceased to be contracted-out.]

Textual Amendments

F6 S. 52 substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 35

53 Supervision: former contracted-out schemes. E+W+S

[F7 (1) The [F8 Inland Revenue] may direct the trustees or managers of the scheme, or the employer, to take or refrain from taking such steps as the [F8 Inland Revenue] may specify in writing; and such a direction shall be final and binding on the person directed and any person claiming under him.

(1A) An appeal on a point of law shall lie to the High Court or, in Scotland, the Court of Session from a direction under subsection (1) at the instance of the trustees or managers or the employer, or any person claiming under them.

(1B) A direction under subsection (1) shall be enforceable—

(a) in England and Wales, in [F9 the county court] as if it were an order of that court, and

(b) in Scotland, by the sheriff, as if it were an order of the sheriff and whether or not the sheriff could himself have given such an order]

[F10 (1C) But where a direction under subsection (1) conflicts with a freezing order made by the Regulatory Authority under section 23 of the Pensions Act 2004 in relation to the scheme then, during the period for which the freezing order has effect, the direction to the extent that it conflicts with the freezing order—

(a) is not binding as described in subsection (1), and

(b) is not enforceable as described in subsection (1B).]

F11 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 S. 53(1)-(1B) substituted for s. 53(1) (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 48(a); S.I. 1997/664, art. 2(3), Sch. Pt. II

F8 Words in s. 53 substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 52; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F9 Words in s. 53(1B)(a) substituted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 52; S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11)

F10 S. 53(1C) inserted (6.4.2006) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 10; S.I. 2006/560, art. 2(3), Sch. Pt. 3

F11 S. 53(2) repealed (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 48(b), Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. II

F12 S. 53(3) omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 36 (with a temp. saving in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(1)(2)(h))

F13 S. 53(4)(5) repealed (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 48(d), Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. II

Modifications etc. (not altering text)

C8 S. 53 modified (6.4.2009) by The Occupational Pension Schemes (Contracting-out) Regulations 1996 (S.I. 1996/1172), reg. 76A(3) (as substituted by S.I. 2009/598, arts. 1, 3(7))

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

F14 54 Supervision: former appropriate personal pension schemes. E+W+S

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Textual Amendments

F14 S. 54 omitted (6.4.2012) by virtue of The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) (No.2) Order 2011 (S.I. 2011/1730), arts. 1(2)(b), 5(13)

State scheme premiums E+W+S

F15 55 Payment of state scheme premiums on termination of certified status. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F15 56 Provisions supplementary to s. 55. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F15 57 Elections to pay contributions equivalent premiums. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F15 58 Amount of premiums payable under s. 55. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F16 F15 59 Alternative basis for revaluation of earnings factors for calculation of certain premiums. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F16 S. 59 repealed (6.4.1997) (with savings for existing state scheme premiums) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 53, Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. II (with art. 4(2)(3))

F15 60 Effect of payment of premiums on rights. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F15 61 Deduction of contributions equivalent premium from refund of scheme contributions. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F15 62 No recovery of state scheme premiums from earners etc. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F15 63 Further provisions concerning calculations relating to premiums. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F17 F15 64 Actuarial tables for purposes of calculations relating to premiums. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F17 S. 64 repealed (6.4.1997) (with savings for existing state scheme premiums) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 58, Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. II (with art. 4(2)(3))

F18 F15 65 Inclusion of former and future earners for some purposes of this Chapter. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F18 S. 65 repealed (6.4.1997) (with savings for existing state scheme premiums) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 59, Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. II (with art. 4(2)(3))

F19 F15 66 Power to apply certain provisions to widowers. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F19 S. 66 repealed (6.4.1997) (with savings for existing state scheme premiums) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 60, Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. II (with art. 4(2)(3))

F15 67 Non-payment of contributions equivalent premiums. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))

F15 68 Unpaid premiums: supplementary. E+W+S

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Textual Amendments

F15 Ss. 55-68 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 37 (with savings in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(4)-(5F))