Part IIIE+W+S [F1Schemes that were contracted-out etc] and Effects on Members’ State Scheme Rights F2...

Textual Amendments

F1Words in Pt. 3 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(a)

F2Words 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)

C2Pt. 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 IE+W+S [F3Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc]

Textual Amendments

PreliminaryE+W+S

8 Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”.E+W+S

[F4(1)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.]

[F5(1A)In addition, in relation to any period before [F6the 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.]

[F7(1B)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 [F8, 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 [F9widow's, widower’s [F10, 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 [F11the applicable limit] (or the prescribed equivalents if he is paid otherwise than weekly);

[F12and for the purposes of this subsection “rebate percentage” means the appropriate flat rate percentage [F13for the tax year in which the week falls as specified in an order made under section 42B (as it had effect before [F6the first abolition date])]].

[F14(2A)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.]

F15(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F16(4)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.]

F17(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5S. 8(1A) inserted (26.9.2007 for specified purposes, 6.4.2012 in so far as not already in force, that being "the abolition date" for the purposes of s. 15(1) of the amending Act) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 3(3) (with Sch. 4 Pt. 3); S.I. 2011/1267, art. 2(a)

F6Words in Act substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 2

F8Words in s. 8(2) substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 7(4)

F12Words in s. 8(2) substituted (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 23(a); S.I. 1997/664, art. 2(3), Sch. Pt. 2

F13Words in s. 8(2) substituted (26.9.2007 for specified purposes, 6.4.2012 in so far as not already in force, that being "the abolition date" for the purposes of s. 15(1) of the amending Act) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 3(4) (with Sch. 4 Pt. 3); S.I. 2011/1267, art. 2(a)

Commencement Information

I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2