The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations 1998

Statutory Instruments

1998 No. 1397

PENSIONS

The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations 1998

Made

4th June 1998

Laid before Parliament

11th June 1998

Coming into force

6th July 1998

The Secretary of State for Social Security, in exercise of the powers conferred by section 181(1) and (4) of, and paragraph 5(3C)(c) of Schedule 2 to, the Pension Schemes Act 1993F1 , and of all other powers enabling her in that behalf, having consulted such persons as she considers appropriateF2 , hereby makes the following Regulations:

F1 1993 c.48; paragraph 5(3C) of Schedule 2 was inserted by section 141(2) of the Pensions Act 1995 (c.26); section 181(1) is cited for the meaning it gives to “prescribe" and “regulations".

F2 See section 185(1) of the Pension Schemes Act 1993, as amended by paragraph 46 of Schedule 3 and paragraph 80 of Schedule 5 to the Pensions Act 1995.

Citation, commencement and interpretation U.K.

1.—(1) These Regulations may be cited as the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations 1998 and shall come into force on 6th July 1998.

(2) In these Regulations—

“the 1993 Act" means the Pension Schemes Act 1993;

“additional pension" means the additional pension in a Category A retirement pension or in any other benefit under Part II of the Social Security Contributions and Benefits Act 1992 F3 which is payable by virtue of section 44(3)(b) of that Act;

“earner" means—

(a) in the case of a surviving spouse member, the deceased spouse from whose employment that member’s rights under the scheme are derived; and

[F4 (aa) in the case of a surviving civil partner member, the deceased civil partner from whose employment that member’s rights under the scheme are derived;] and

(b) in any other case, the member;

“effective date" means the date on which the Secretary of State determines, for the purposes of paragraph 5(3A) to (3E) of Schedule 2 to the 1993 Act F5 , the extent to which the resources of the scheme are insufficient to meet the liability for the cash equivalent of the member’s rights under the scheme;

“pensionable age" has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995;

“relevant employment" means any employment of the earner to which any of his section 9(2B) rights, [F6 or rights to a guaranteed minimum pension] under the scheme are directly or indirectly attributable;

“relevant tax year" means the tax year in which the effective date falls;

“section 9(2B) rights" has the same meaning as in [F7 regulation 2(1) of the Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015] F8 ;

“the scheme" means an occupational pension scheme referred to in regulation 2 below;

[F9 “surviving civil partner member” means a person who has a right to the payment of a surviving civil partner’s pension under the scheme;]

“surviving spouse member" means a person who has a right to the payment of a widow’s or widower’s pension under the scheme.

F3 1992 c.4 .

F4 Words in reg. 1(2) inserted (5.12.2005) by Occupational and Personal Pension Schemes (Civil Partnership) (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3164), regs. 1(1), 5(a)(i)

F5 Sub-paragraphs (3A) to (3E) were inserted in paragraph 5 of Schedule 2 by section 141(2) of the Pensions Act 1995.

F6 Words in reg. 1(2) substituted (6.4.2012) by The Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (S.I. 2011/1246), arts. 1(2)(a), 18

F7 Words in reg. 1(2) substituted (6.4.2016) by The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016 (S.I. 2016/200), arts. 1(2), 13(2)

F8 S.I. 1996/1172 ; a relevant amending instrument is S.I. 1997/786.

F9 Words in reg. 1(2) inserted (5.12.2005) by Occupational and Personal Pension Schemes (Civil Partnership) (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3164) , regs. 1(1), 5(a)(ii)

Determination of the amount required for restoring State scheme rights U.K.

2.  For the purposes of paragraph 5(3A) to (3E) of Schedule 2 to the 1993 Act the amount required for restoring State scheme rights in relation to a member of a [F10 scheme which was a contracted-out occupational pension scheme and which started to wind up before the second abolition date] shall be—

(a) in a case where the prescribed person may elect under section 55(2) of that Act F11 to pay a contributions equivalent premium, the amount of that premium calculated in accordance with section 58(4) of that Act; and

(b) in any other case, the amount calculated in accordance with regulation 3.

F10 Words in reg. 2 substituted (6.4.2016) by The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016 (S.I. 2016/200), arts. 1(2), 13(3)

F11 Section 55(2) was substituted by section 141(1) of the Pensions Act 1995.

Method of calculation where no election to pay a contributions equivalent premium may be made U.K.

3.—(1) In a case to which regulation 2(b) applies, the amount required for restoring a member’s State scheme rights shall be—

(a) in the case of a man (other than a surviving spouse member [F12 or surviving civil partner member]) who has not attained pensionable age on the effective date—

• X × Factor A × 52 × market level indicator

• plus

• (y₁ × Factor B1 + y₂ × Factor B2) × 52 × market level indicator

• plus

• (z₁ × Factor C1 + z₂ × Factor C2) × 52 × market level indicator;

(b) in the case of a woman (other than a surviving spouse member [F12 or surviving civil partner member]) who has not attained pensionable age on the effective date—

• X × Factor D × 52 × market level indicator

• plus

• (y₁ × Factor E1 + y₂ × Factor E2) × 52 × market level indicator

• plus

• (z₁ × Factor F1 + z₂ × Factor F2) × 52 × market level indicator;

(c) in the case of a man (other than a surviving spouse member [F12 or surviving civil partner member]) who has attained pensionable age on the effective date—

• X × Factor G × 52 × market level indicator

• plus

• (y₁ + y₂) × Factor H × 52 × market level indicator

• plus

• (z₁ + z₂) × Factor I × 52 × market level indicator;

(d) in the case of a woman (other than a surviving spouse member [F12 or surviving civil partner member]) who has attained pensionable age on the effective date—

• X × Factor J × 52 × market level indicator

• plus

• (y₁ + y₂) × Factor K × 52 × market level indicator

• plus

• (z₁ + z₂) × Factor L × 52 × market level indicator;

(e) in the case of a man who is a surviving spouse member [F12 or surviving civil partner member]—

• X × Factor M × 52 × market level indicator

• plus

• (z₁ + z₂) × Factor N × 52 × market level indicator;

(f) in the case of a woman who is a surviving spouse member—

• X × Factor O × 52 × market level indicator

• plus

• (y₁ + y₂) × Factor P × 52 × market level indicator

• plus

• (z₁ + z₂) × Factor Q × 52 × market level indicator;

[F13 (g) in the case of a woman who is a surviving civil partner member—

plus]

(2) For the purposes of paragraph (1)—

[F14 (a) the amount of each factor shall be—

(i) for Factors A to F2, the amount derived from the relevant Table in Schedule 1, being the amount shown for the factor in the column below the relevant tax year, in relation to the tax year in which the member was born, as specified in the first column of that Table;

(ii) for Factors G to Q, the amount shown in the column below the relevant factor, in whichever of Tables 11 and 12 in Schedule 1 is applicable, in relation to the age attained by the member in the relevant tax year as specified in the first column of that Table.]

(b) “the relevant weekly amount" is the weekly amount, determined by the Secretary of State, representing—

[F15 (ia) as regards any relevant employment after 5th April 2002, the weekly amount as specified in paragraph (3);]

(i) as regards any relevant employment after 5th April 1997 [F16 and before 6th April 2002], the weekly amount of additional pension to which the member would be entitled, or would have become entitled at pensionable age, in respect of that employment, if the scheme had not been a contracted-out scheme (whether by virtue of his own contributions or, in the case of a surviving spouse member, by virtue of the earner’s contributions); and

(ii) as regards any relevant employment before 6th April 1997, the member’s guaranteed minimum pension or any guaranteed minimum pension to which the member is, or would on attaining pensionable age be, treated as entitled by virtue of section 48 of the 1993 Act F17 (reduced benefits where minimum payments or minimum contributions paid) in respect of that employment,

and, for the purposes of determining those weekly amounts, except where such provision made by the scheme as is mentioned in section 16(2) of the 1993 Act (revaluation of earnings factors: early leavers) applies, the earner’s earnings factors shall be taken to have been increased by reference to the last order under section 148 of the Social Security Administration Act 1992 F18 to come into force before the end of the tax year preceding the relevant tax year;

(c) full revaluation applies where, for the purposes of determining the relevant weekly amount, the earner’s earnings factors are taken to have been increased in accordance with sub-paragraph (b);

(d) limited revaluation applies where the relevant weekly amount has been determined in accordance with any provision made by the scheme under subsection (3) of section 16 of the 1993 Act F19 (as in force immediately before 6th April 1997) not conforming with the additional requirements referred to in that subsection;

(e) fixed revaluation applies where the relevant weekly amount has been determined in accordance with such provision as is mentioned in that subsection as in force immediately after 5th April 1997; and

(f) the market level indicator is the amount calculated in accordance with regulation 4 below.

[F20 (3) The weekly amount specified in this paragraph is—

(a) the weekly amount of additional pension to which the member would be entitled in respect of the relevant employment after 5th April 2002 (whether by virtue of his own contributions or, in the case of a surviving spouse member [F12 or surviving civil partner member], by virtue of the earner’s contributions) if the scheme had not been a contracted-out scheme, less the weekly amount of any such pension to which he is so entitled despite [F21 the scheme having been such a scheme]; or

(b) the weekly amount of additional pension to which the member would have become so entitled on attaining pensionable age if the scheme had not been such a scheme, less the weekly amount of any such pension to which he will be so entitled despite [F22 the scheme having been such a scheme].]

F12 Words in reg. 3 inserted (5.12.2005) by Occupational and Personal Pension Schemes (Civil Partnership) (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3164), regs. 1(1), 5(b)(i)

F13 Reg. 3(1)(g) added (5.12.2005) by Occupational and Personal Pension Schemes (Civil Partnership) (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3164), regs. 1(1), 5(b)(ii)

F14 Reg. 3(2)(a) substituted (with application in accordance with reg. 1(2) of the commencing S.I.) by The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2010 (S.I. 2010/506), regs. 1(1), 2(2)

F15 Reg. 3(2)(b)(ia) inserted (with application in accordance with reg. 1(3) of the commencing S.I.) by Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005 (S.I. 2005/891), regs. 1(2), 2(2)

F16 Words in reg. 3(2)(b)(i) inserted (with application in accordance with reg. 1(3) of the commencing S.I.) by Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005 (S.I. 2005/891), regs. 1(2), 2(3)

F17 Section 48 was amended by paragraph 58 of Schedule 1 to the Social Security (Incapacity for Work) Act 1994 and section 140(2) and (3) of the Pensions Act 1995.

F18 1992 c.5. Section 148 was amended by paragraph 27 of Schedule 8 to the Pension Schemes Act 1993.

F19 Section 16(3) was amended by paragraph 28 of Schedule 5 to the Pensions Act 1995 but is saved for transitional purposes by Article 3 of the Pensions Act 1995 (Commencement No. 10) Order 1997 (S.I. 1997/664) (c.23).

F20 Reg. 3(3) added (with application in accordance with reg. 1(3) of the commencing S.I.) by Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005 (S.I. 2005/891), regs. 1(2), 2(4)

F21 Words in reg. 3(3)(a) substituted (6.4.2016) by The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016 (S.I. 2016/200), arts. 1(2), 13(4)

F22 Words in reg. 3(3)(b) substituted (6.4.2016) by The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016 (S.I. 2016/200), arts. 1(2), 13(4)

Market Level Indicator U.K.

4.  For the purposes of regulation 3 the market level indicator is—

(a)

in the case of a member who has attained pensionable age or who attains that age in the relevant tax year or who is a surviving spouse member [F23 or surviving civil partner member], the index number shown in the second column of the Table in Schedule 2 opposite the range of yields shown in the first column of that Table in which falls the gross redemption yield compiled, on the effective date, by the Financial Times and the [F24 Institute and Faculty of Actuaries] and Institute of Actuaries, [F25 applicable;

(i)

where the effective date fell before 1st June 1999, to 15-year British Government Stocks with medium coupons, and

(ii)

where the effective date falls on or after that date, to 15-year British Government Stocks;]

(b)

in the case of a member (other than a surviving spouse member [F23 or surviving civil partner member]) who attains an age in the relevant tax year which is 10 or more years below pensionable age, [F26 3 per cent.]. divided by x per cent. [F27 where—

(i)

the effective date fell before 6th April 1999, x per cent. is the net dividend yield, and the effective date fell before 6th April 1999, x per cent. is the net dividend yield, and

(ii)

if the effective date falls on or after that date, x per cent. is the actual dividend yield,

applicable on the effective date to the All Share Index compiled by the Financial Times and the [F24 Institute and Faculty of Actuaries] and Institute of Actuaries;]

(c)

in the case of a member (other than a surviving spouse member [F23 or surviving civil partner member]) who attains an age in the relevant tax year which is less than 10 years below pensionable age, an average of the numbers derived from paragraphs (a) and (b) respectively, weighted according to the number of whole years remaining before the member attains that age, so that, for example

where—

(i)

where the age attained in the relevant tax year is 5 years less than pensionable age, the market level indicator is the sum of one half of the number derived from paragraph (a) and one half of the number derived from paragraph (b); and

(ii)

where the age attained in that tax year is one year less than pensionable age, the market level indicator is the sum of nine tenths of the number derived from paragraph (a) and one tenth of the number derived from paragraph (b).

F23 Words in reg. 4 inserted (5.12.2005) by Occupational and Personal Pension Schemes (Civil Partnership) (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/3164) , regs. 1(1) , 5(c)

F24 Words in reg. 4 substituted (6.4.2012) by The Pensions (Institute and Faculty of Actuaries and Consultation by Employers – Amendment) Regulations 2012 (S.I. 2012/692), regs. 1(2), 8

F25 Words in reg. 4(a) substituted (10.12.1999) by The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 1999 (S.I. 1999/3069) , regs. 1(1) , 2(1)(a)

F26 Words in reg. 4(b) substituted (with application in accordance with reg. 1(3) of the commencing S.I.) by Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005 (S.I. 2005/891) , regs. 1(2) , 2(5)

F27 Words in reg. 4(b) substituted (10.12.1999) by The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 1999 (S.I. 1999/3069) , regs. 1(1) , 2(1)(b)

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996 U.K.

5.  After regulation 50 of the Occupational Pension Schemes (Contracting-out) Regulations 1996 F28 there shall be inserted—

“ Persons to be regarded as members

50A.   For the purposes of paragraph 5(3A) to (3E) of Schedule 2 to the 1993 Act and regulations 49 and 50 the persons to be regarded as members of an occupational pension scheme shall include a person who has the right to payment of a widow’s or widower’s pension under the scheme.”

F28 S.I. 1996/1172.

Signed by authority of the Secretary of State for Social Security.

John Y. Denham

Parliamentary Under-Secretary of State,

Department of Social Security

Regulations 2(2) and 3(2)

SCHEDULE 1 U.K.

[F29 TABLE 1

TABLES TO BE SUBSTITUTED IN SCHEDULE 1 TO THE 1998 REGULATIONS

Tax year of birth	Tax year of effective year	Factor B1
	2010/11	2010/12
1946/47	18.15	-
1947/48	17.56	18.15
1948/49	17.20	17.56
1949/50	16.82	17.20
1950/51	16.44	16.82
1951/52	16.04	16.44
1952/53	15.64	16.04
1953/54	15.24	15.64
1954/55	14.82	15.24
1955/56	14.40	14.82
1956/57	13.97	14.40
1957/58	13.53	13.97
1958/59	13.10	13.53
1959/60	12.34	12.77
1960/61	11.60	12.02
1961/62	11.25	11.60
1962/63	10.90	11.25
1963/64	10.61	10.90
1964/65	10.33	10.61
1965/66	10.04	10.33
1966/67	9.76	10.04
1967/68	9.49	9.76
1968/69	8.99	9.26
1969/70	8.52	8.77
1970/71	8.26	8.52
1971/72	8.01	8.26
1972/73	7.76	8.01
1973/74	7.51	7.76
1974/75	7.26	7.51
1975/76	7.02	7.26
1976/77	6.86	7.02
1977/78	6.53	6.68
1978/79	6.21	6.36
1979/80	6.07	6.21
1980/81	5.93	6.07
1981/82	5.79	5.93
1982/83	5.66	5.79
1983/84	5.54	5.66
1984/85	5.41	5.54
1985/86	5.29	5.41
1986/87	5.18	5.29
1987/88	5.06	5.18
1988/89	4.95	5.06
1989/90	4.84	4.95
1990/91	4.74	4.84
1991/92	4.63	4.74
1992/93	4.53	4.63
1993/94	4.43	4.53
1994/95	4.34	4.43
1995/96	-	4.34

TABLE 2

FACTOR B1: MEN – EMPLOYMENT BEFORE 6 APRIL 1988 IN A CASE WHERE LIMITED REVALUATION APPLIES

Tax year of birth	Tax year of effective year	Factor B1
	2010/11	2010/12
1946/47	12.97	-
1947/48	12.75	12.97
1948/49	12.53	12.75
1949/50	12.29	12.53
1950/51	12.05	12.29
1951/52	11.80	12.05
1952/53	11.54	11.80
1953/54	11.27	11.54
1954/55	11.00	11.27
1955/56	10.72	11.00
1956/57	10.43	10.72
1957/58	10.14	10.43
1958/59	9.84	10.14
1959/60	9.34	9.64
1960/61	8.85	9.14
1961/62	8.60	8.85
1962/63	8.36	8.60
1963/64	8.12	8.36
1964/65	7.88	8.12
1965/66	7.65	7.88
1966/67	7.42	7.65
1967/68	7.19	7.42
1968/69	6.80	7.02
1969/70	6.43	6.64
1970/71	6.22	6.43
1971/72	6.02	6.22

TABLE 3

FACTOR B2: MEN – EMPLOYMENT BEFORE 6 APRIL 1988 IN A CASE WHERE FULL OR FIXED REVALUATION APPLIES

Tax year of birth	Tax year of effective year	Factor B1
	2010/11	2010/12
1946/47	12.97	-
1947/48	12.78	12.97
1948/49	12.59	12.78
1949/50	12.38	12.59
1950/51	12.17	12.29
1951/52	11.94	12.17
1952/53	11.71	11.94
1953/54	11.47	11.71
1954/55	11.21	11.47
1955/56	10.95	11.21
1956/57	10.68	10.95
1957/58	10.41	10.68
1958/59	10.13	10.41
1959/60	9.65	9.93
1960/61	9.17	9.45
1961/62	8.94	9.17
1962/63	8.71	8.94
1963/64	8.48	8.71
1964/65	8.25	8.48
1965/66	8.02	8.25
1966/67	7.80	8.02
1967/68	7.58	7.80
1968/69	7.20	7.41
1969/70	6.83	7.04
1970/71	6.62	6.83
1971/72	6.42	6.62

TABLE 4

FACTOR C1: MEN – EMPLOYMENT AFTER 5 APRIL 1988 AND BEFORE 6 APRIL 1997 IN A CASE WHERE LIMITED REVALUATION APPLIES

Tax year of birth	Tax year of effective year	Factor B1
	2010/11	2010/12
1946/47	17.37	-
1947/48	16.98	17.37
1948/49	16.59	16.98
1949/50	16.19	16.59
1950/51	15.78	16.19
1951/52	15.37	15.78
1952/53	14.95	15.37
1953/54	14.52	14.95
1954/55	14.09	14.52
1955/56	13.66	14.09
1956/57	13.22	13.66
1957/58	12.78	13.22
1958/59	12.34	12.78
1959/60	11.59	12.02
1960/61	10.86	11.28
1961/62	10.51	10.86
1962/63	10.16	10.51
1963/64	9.87	10.16
1964/65	9.58	9.87
1965/66	9.29	9.58
1966/67	9.01	9.29
1967/68	8.74	9.01
1968/69	8.25	8.52
1969/70	7.79	8.04
1970/71	7.54	7.79
1971/72	7.29	7.54
1972/73	7.04	7.29
1973/74	6.80	7.04
1974/75	6.56	6.80
1975/76	6.33	6.56
1976/77	6.16	6.33
1977/78	5.85	6.00
1978/79	5.55	5.69
1979/80	5.41	5.55
1979/80	5.27	5.41

TABLE 5

MEN AND WOMEN (EXCLUDING SURVIVING SPOUSE MEMBERS) WHO HAVE ATTAINED PENSIONABLE AGE

Tax year of birth	Tax year of effective year	Factor B1
	2010/11	2010/12
1946/47	17.37	-
1947/48	16.98	17.37
1948/49	16.59	16.98
1949/50	16.19	16.59
1950/51	15.78	16.19
1951/52	15.37	15.78
1952/53	14.95	15.37
1953/54	14.52	14.95
1954/55	14.09	14.52
1955/56	13.66	14.09
1956/57	13.22	13.66
1957/58	12.78	13.22
1958/59	12.34	12.78
1959/60	11.59	12.02
1960/61	10.86	11.28
1961/62	10.51	10.86
1962/63	10.16	10.51
1963/64	9.87	10.16
1964/65	9.58	9.87
1965/66	9.29	9.58
1966/67	9.01	9.29
1967/68	8.74	9.01
1968/69	8.25	8.52
1969/70	7.79	8.04
1970/71	7.54	7.79
1971/72	7.29	7.54
1972/73	7.04	7.29
1973/74	6.80	7.04
1974/75	6.56	6.80
1975/76	6.33	6.56
1976/77	6.16	6.33
1977/78	5.85	6.00
1978/79	5.55	5.69
1979/80	5.41	5.55
1979/80	5.27	5.41

TABLE 6

FACTOR D: WOMEN – EMPLOYMENT AFTER 5 APRIL 1997

Tax Year of Birth	Tax year of effective date
	2010/11 - 2011/12
1950/51	22.05	-
1951/52	19.66	19.99
1952/53	18.36	18.70
1953/54	17.10	17.45
1954/55	15.88	16.23
1955/56	14.76	15.18
1956/57	14.34	14.76
1957/58	13.91	14.34
1958/59	13.48	13.91
1959/60	12.71	13.14
1960/61	11.96	12.38
1961/62	11.60	11.96
1962/63	11.25	11.60
1963/64	10.97	11.25
1964/65	10.69	10.97
1965/66	10.41	10.69
1966/67	10.13	10.41
1967/68	9.85	10.13
1968/69	9.35	9.62
1969/70	8.86	9.12
1970/71	8.60	8.86
1971/72	8.35	8.60
1972/73	8.09	8.35
1973/74	7.84	8.09
1974/75	7.59	7.84
1975/76	7.35	7.59
1976/77	7.19	7.35
1977/78	6.85	7.00
1978/79	6.52	6.67
1979/80	6.38	6.52
1980/81	6.23	6.38
1981/82	6.09	6.23
1982/83	5.96	6.09
1983/84	5.83	5.96
1984/85	5.70	5.83
1985/86	5.57	5.70
1986/87	5.45	5.57
1987/88	5.33	5.45
1988/89	5.21	5.33
1989/90	5.10	5.21
1990/91	4.99	5.10
1991/92	4.88	4.99
1992/93	4.77	4.88
1993/94	4.66	4.77
1994/95	4.56	4.66
1995/96	-	4.56

TABLE 7

FACTOR E1: WOMEN – EMPLOYMENT BEFORE 6 APRIL 1988 IN A CASE WHERE LIMITED REVALUATION APPLIES

Tax Year of Birth	Tax year of effective date
	2010/11 - 2011/12
1950/51	14.66	-
1951/52	13.46	13.74
1952/53	12.72	13.00
1953/54	11.98	12.27
1954/55	11.24	11.53
1955/56	10.48	10.75
1956/57	10.21	10.48
1957/58	9.93	10.21
1958/59	9.65	9.93
1959/60	9.15	9.43
1960/61	8.66	8.94
1961/62	8.43	8.66
1962/63	8.20	8.43
1963/64	7.97	8.20
1964/65	7.75	7.97
1965/66	7.53	7.75
1966/67	7.31	7.53
1967/68	7.10	7.31
1968/69	6.72	6.93
1969/70	6.35	6.55
1970/71	6.15	6.35
1971/72	5.96	6.15

TABLE 8

FACTOR E2: WOMEN – EMPLOYMENT BEFORE 6 APRIL 1988 IN A CASE WHERE FULL OR FIXED REVALUATION APPLIES

Tax Year of Birth	Tax year of effective date
	2010/11 - 2011/12
1950/51	14.66	-
1951/52	13.50	13.74
1952/53	12.81	13.07
1953/54	12.12	12.39
1954/55	11.43	11.70
1955/56	10.72	10.96
1956/57	10.46	10.72
1957/58	10.20	10.46
1958/59	9.93	10.20
1959/60	9.46	9.72
1960/61	8.98	9.25
1961/62	8.77	8.98
1962/63	8.55	8.77
1963/64	8.33	8.55
1964/65	8.12	8.33
1965/66	7.91	8.12
1966/67	7.70	7.91
1967/68	7.49	7.70
1968/69	7.11	7.32
1969/70	6.75	6.95
1970/71	6.55	6.75
1971/72	6.36	6.55

TABLE 9

FACTOR F1: WOMEN – EMPLOYMENT AFTER 5 APRIL 1988 AND BEFORE 6 APRIL 1997 IN A CASE WHERE LIMITED REVALUATION APPLIES

Tax Year of Birth	Tax year of effective date
	2010/11 - 2011/12
1950/51	21.11	-
1951/52	18.96	19.32
1952/53	17.63	18.00
1953/54	16.36	16.73
1954/55	15.13	15.50
1955/56	14.01	14.44
1956/57	13.58	14.01
1957/58	13.14	13.58
1958/59	12.70	13.14
1959/60	11.94	12.37
1960/61	11.20	11.62
1961/62	10.84	11.20
1962/63	10.49	10.84
1963/64	10.20	10.49
1964/65	9.91	10.20
1965/66	9.63	9.91
1966/67	9.35	9.63
1967/68	9.07	9.35
1968/69	8.58	8.85
1969/70	8.10	8.36
1970/71	7.85	8.10
1971/72	7.59	7.85
1972/73	7.35	7.59
1973/74	7.10	7.35
1974/75	6.86	7.10
1975/76	6.62	6.86
1976/77	6.46	6.62
1977/78	6.13	6.29
1978/79	5.82	5.97
1979/80	5.68	5.82
1980/81	5.54	5.68

TABLE 10

FACTOR F2: WOMEN – EMPLOYMENT AFTER 5 APRIL 1988 AND BEFORE 6 APRIL 1997 IN A CASE WHERE FULL OR FIXED REVALUATION APPLIES

Tax Year of Birth	Tax year of effective date
	2010/11 - 2011/12
1950/51	21.11	-
1951/52	19.01	19.32
1952/53	17.76	18.09
1953/54	16.56	16.89
1954/55	15.39	15.73
1955/56	14.32	14.72
1956/57	13.91	14.32
1957/58	13.50	13.91
1958/59	13.07	13.50
1959/60	12.34	12.75
1960/61	11.61	12.02
1961/62	11.27	11.61
1962/63	10.93	11.27
1963/64	10.65	10.93
1964/65	10.38	10.65
1965/66	10.11	10.38
1966/67	9.83	10.11
1967/68	9.57	9.83
1968/69	9.08	9.34
1969/70	8.61	8.86
1970/71	8.36	8.61
1971/72	8.11	8.36
1972/73	7.86	8.11
1973/74	7.62	7.86
1974/75	7.38	7.62
1975/76	7.14	7.38
1976/77	6.98	7.14
1977/78	6.65	6.80
1978/79	6.34	6.48
1979/80	6.19	6.34
1980/81	6.05	6.19

[F30 Table 11]

MEN (EXCLUDING SURVIVING SPOUSE MEMBERS[F31 SURVIVING CIVIL PARTNER MEMBERS]) WHO ARE UNDER PENSIONABLE AGE

Age attained in relevant tax year	Factor A	Factor B1	Factor B2	Factor C1	Factor C2
16	4.98	3.49	3.92	4.32	4.85
17	5.08	3.57	4.00	4.42	4.95
18	5.18	3.65	4.08	4.52	5.05
19	5.29	3.73	4.17	4.62	5.15
20	5.40	3.82	4.25	4.73	5.26
21	5.51	3.91	4.34	4.83	5.37
22	5.62	4.00	4.43	4.94	5.48
23	5.73	4.09	4.52	5.06	5.59
24	5.85	4.18	4.61	5.17	5.70
25	5.97	4.28	4.70	5.29	5.82
26	6.09	4.37	4.80	5.41	5.93
27	6.21	4.47	4.90	5.53	6.06
28	6.34	4.58	4.99	5.66	6.18
29	6.47	4.68	5.10	5.79	6.30
30	6.60	4.79	5.20	5.93	6.44
31	6.74	4.90	5.31	6.06	6.57
32	6.88	5.02	5.42	6.20	6.71
33	7.03	5.13	5.53	6.35	6.85
34	7.18	5.25	5.65	6.50	6.99
35	7.33	5.38	5.77	6.66	7.14
36	7.49	5.51	5.89	6.82	7.30
37	7.64	5.64	6.02	6.98	7.45
38	7.81	5.77	6.15	7.14	7.61
39	7.97	5.90	6.27	7.31	7.77
40	8.14	6.04	6.40	7.48	7.93
41	8.31	6.19	6.54	7.66	8.10
42	8.49	6.34	6.68	7.85	8.28
43	8.68	6.49	6.83	8.04	8.46
44	8.87	6.65	6.98	8.24	8.64
45	9.07	6.81	7.13	8.44	8.83
46	9.27	6.98	7.29	8.65	9.03
47	9.47	7.14	7.44	8.86	9.23
48	9.67	7.31	7.60	9.06	9.42
49	9.88	7.49	7.76	9.28	9.62
50	10.09	7.67	7.93	9.50	9.83
51	10.31	7.85	8.10	9.73	10.04
52	10.53	8.04	8.28	9.97	10.26
53	10.87	8.31	8.53	10.31	10.59
54	11.23	8.59	8.80	10.67	10.93
55	11.60	8.88	9.08	11.05	11.30
56	11.98	9.18	9.36	11.44	11.67
57	12.39	9.50	9.67	11.86	12.06
58	12.79	9.82	9.96	12.27	12.45
59	13.41	10.16	10.29	12.71	12.87
60	14.07	10.52	10.62	13.18	13.31
61	14.75	10.89	10.97	13.66	13.76
62	15.47	11.29	11.34	14.17	14.24
63	16.24	11.71	11.74	14.72	14.76
64	17.05	12.16	12.16	15.31	15.31

[F32 Table 12]

MEN (EXCLUDING SURVIVING SPOUSE MEMBERS [F33 SURVIVING CIVIL PARTNER MEMBERS]) WHO ARE UNDER PENSIONABLE AGE

Age attained in relevant tax year	Factor D	Factor E1	Factor E2	Factor F1	Factor F2
16	5.36	3.58	4.03	4.65	5.22
17	5.47	3.66	4.11	4.75	5.33
18	5.58	3.74	4.19	4.86	5.43
19	5.69	3.83	4.27	4.97	5.54
20	5.81	3.91	4.36	5.08	5.65
21	5.92	4.00	4.44	5.19	5.77
22	6.04	4.09	4.53	5.31	5.88
23	6.16	4.18	4.62	5.43	6.00
24	6.28	4.27	4.71	5.55	6.12
25	6.41	4.37	4.81	5.68	6.24
26	6.54	4.47	4.90	5.80	6.37
27	6.67	4.57	5.00	5.93	6.49
28	6.80	4.67	5.10	6.07	6.62
29	6.94	4.77	5.20	6.20	6.76
30	7.08	4.88	5.30	6.35	6.89
31	7.22	4.99	5.41	6.49	7.03
32	7.37	5.10	5.51	6.64	7.18
33	7.52	5.21	5.62	6.79	7.32
34	7.67	5.33	5.73	6.95	7.47
35	7.83	5.44	5.85	7.11	7.63
36	7.99	5.57	5.96	7.27	7.78
37	8.15	5.69	6.08	7.43	7.94
38	8.32	5.82	6.20	7.60	8.10
39	8.48	5.95	6.32	7.78	8.26
40	8.65	6.08	6.45	7.95	8.43
41	8.83	6.22	6.58	8.14	8.60
42	9.01	6.36	6.71	8.32	8.78
43	9.20	6.50	6.84	8.51	8.96
44	9.39	6.64	6.98	8.71	9.14
45	9.58	6.79	7.12	8.91	9.33
46	9.77	6.95	7.26	9.11	9.52
47	9.97	7.10	7.41	9.32	9.71
48	10.17	7.27	7.56	9.53	9.91
49	10.38	7.43	7.71	9.75	10.11
50	10.60	7.60	7.87	9.98	10.32
51	10.81	7.78	8.03	10.21	10.53
52	11.03	7.96	8.20	10.44	10.75
53	11.38	8.22	8.44	10.79	11.08
54	11.74	8.49	8.70	11.16	11.43
55	12.11	8.77	8.97	11.53	11.79
56	12.49	9.06	9.24	11.93	12.16
57	12.89	9.37	9.53	12.34	12.55
58	13.30	9.69	9.84	12.75	12.94
59	13.80	10.03	10.15	13.20	13.36
60	14.33	10.38	10.48	13.66	13.79
61	14.87	10.75	10.83	14.15	14.25
62	15.44	11.15	11.20	14.65	14.73
63	16.03	11.56	11.59	15.19	15.23
64	16.65	12.01	12.01	15.76	15.76

F29 Sch. 1 substituted for Sch. 1 Tables 1-4 (with application in accordance with reg. 1(2) of the commencing S.I.) by The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2010 (S.I. 2010/506), regs. 1(1), 2(3), Schs.

F30 Sch. 1: Sch. 1 Table 5 renumbered as Sch. 1 Table 11 (with application in accordance with reg. 1(2) of the commencing S.I.) by The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2010 (S.I. 2010/506), regs. 1(1), 2(4)

F31 Words in sch. 1 inserted (5.12.05) by S.I. 2005/3164, reg. 1, 5(d)

F32 Sch. 1: Sch. 1 Table 6 renumbered as Sch. 1 Table 12 (with application in accordance with reg. 1(2) of the commencing S.I.) by The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2010 (S.I. 2010/506), regs. 1(1), 2(4)

F33 Words in sch. 1 inserted (5.12.05) by S.I. 2005/3164, reg. 1, 5(e)(i)

Regulation 4

SCHEDULE 2 U.K.

TABLE FOR DERIVING THE INDEX NUMBER FROM 15 YEAR GROSS REDEMPTION YIELD

Yield per cent			Index number
[F34 3.96% 4.03% 4.10% 4.17% 4.24% 4.31% 4.39% 4.46% 4.54% 4.61% 4.68% 4.76% 4.84% 4.92% 5.00% 5.07% 5.15% 5.23% 5.31% 5.40% 5.48% 5.57% 5.65% 5.74% 5.83% 5.92% 6.01% 6.09% 6.18% 6.27% 6.37% 6.46% 6.56% 6.65% 6.74% 6.85% 6.95% 7.05% 7.15% 7.25% 7.36% 7.46% 7.57% 7.68% 7.79% 7.91% 8.02% 8.13% 8.25% 8.37% 8.49% 8.61% 8.74% 8.87% 8.99% 9.12% 9.25% 9.39% 9.52% 9.66% 9.80% 9.95% 10.10% 10.24% 10.40%	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –	4.02% 4.09% 4.16% 4.23% 4.30% 4.38% 4.45% 4.53% 4.60% 4.67% 4.75% 4.83% 4.91% 4.99% 5.06% 5.14% 5.22% 5.30% 5.39% 5.47% 5.56% 5.64% 5.73% 5.82% 5.91% 6.00% 6.08% 6.17% 6.26% 6.36% 6.45% 6.55% 6.64% 6.73% 6.84% 6.94% 7.04% 7.14% 7.24% 7.35% 7.45% 7.56% 7.67% 7.78% 7.90% 8.01% 8.12% 8.24% 8.36% 8.48% 8.60% 8.73% 8.86% 8.98% 9.11% 9.24% 9.38% 9.51% 9.65% 9.79% 9.94% 10.09% 10.23% 10.39% 10.54%	1.44 1.43 1.42 1.41 1.40 1.39 1.38 1.37 1.36 1.35 1.34 1.33 1.32 1.31] 1.30 1.29 1.28 1.27 1.26 1.25 1.24 1.23 1.22 1.21 1.20 1.19 1.18 1.17 1.16 1.15 1.14 1.13 1.12 1.11 1.10 1.09 1.08 1.07 1.06 1.05 1.04 1.03 1.02 1.01 1.00 0.99 0.98 0.97 0.96 0.95 0.94 0.93 0.92 0.91 0.90 0.89 0.88 0.87 0.86 0.85 0.84 0.83 0.82 0.81 0.80

F34 Sch. 2 entries inserted (10.12.1999) by The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 1999 (S.I. 1999/3069), regs. 1(1), 2(2)

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made under provisions of the Pensions Act 1995 which relate to the restoration of members’ State scheme rights in cases where an occupational pension scheme winds up insolvent.

Regulation 1 provides for citation, commencement and interpretation.

Regulations 2 to 4 provide for the determination by the Secretary of State of the amount required for restoring a member’s State scheme rights. Regulation 2 provides for this to be the amount of a contributions equivalent premium where such a premium is payable. Regulations 3 and 4 provide the method of calculation in other cases. This requires the application of actuarial tables to weekly amounts representing the state benefits which the member would have foregone by reason of being contracted-out and adjustment of the amount obtained to reflect prevailing market conditions.

Regulation 5 amends the Occupational Pension Schemes (Contracting-out) Regulations 1996 by providing for persons with a right to a widow’s or widower’s pension under an occupational pension scheme to be regarded as members for the purpose of the provisions relating to restoration of State scheme rights.

Schedule 1 sets out the actuarial factors to be applied for the purposes of regulation 3.

Schedule 2 sets out a table for deriving an index number for the purposes of the market value adjustment in regulation 4.

An assessment of the compliance cost to business of the measures arising from the Pensions Act 1995, including these Regulations, has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.]