C1C2C3C4C5Part IIIF11Schemes that were contracted-out etc and Effects on Members’ State Scheme Rights F12...

Annotations:
Amendments (Textual)
F11

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

F12

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)

Modifications etc. (not altering text)
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

Chapter IF13Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc

Annotations:
Amendments (Textual)
F13

Pt. 3 Ch. 1 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 4

Preliminary

I18 Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”.

F141

In relation to any period before the second abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to the earner during that period if—

a

the earner was under pensionable age;

b

the earner's service in the employment was service which qualified the earner for a pension provided by a salary related contracted-out scheme; and

c

there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.

F61A

In addition, in relation to any period before F10the first abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to him during that period if—

a

he was under pensionable age;

b

his employer made minimum payments in respect of his employment to a money purchase contracted-out scheme, and

c

there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.

F151B

In the following provisions of this Act “earner”, in relation to a scheme, means a person who was an earner in contracted-out employment by reference to the scheme.

2

In this Act—

  • “guaranteed minimum pension” means any pension which is provided F16, by a scheme that was a salary related contracted-out scheme, in accordance with the requirements of sections 13 and 17 to the extent to which its weekly rate is equal to the earner’s or, as the case may be, the earner’s F3widow's, widower’s F8, surviving same sex spouse's or surviving civil partner's guaranteed minimum as determined for the purposes of those sections respectively; and

  • “minimum payment”, in relation to an earner’s employment in any tax week, means the rebate percentage of so much of the earnings paid to or for the benefit of the earner in that week as exceeds the current lower earnings limit but not F4the applicable limit (or the prescribed equivalents if he is paid otherwise than weekly);

F2and for the purposes of this subsection “rebate percentage” means the appropriate flat rate percentage F7for the tax year in which the week falls as specified in an order made under section 42B (as it had effect before F10the first abolition date).

F52A

In subsection (2) “the applicable limit” means—

a

in relation to a tax year before 2009-10, the upper earnings limit;

b

in relation to 2009-10 or any subsequent tax year, the upper accrual point.

F93

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F174

A contracting-out certificate that was in force in respect of an employed earner's employment is to be taken as conclusive that the employment was, at that time, contracted-out employment.

F15

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