PART 2Amendments coming into force immediately before, or on, 6th April 2012
Amendments to the Pension Schemes Act 19935
1
The Pension Schemes Act 19936 is amended as follows.
2
In section 20(3) (transfer of accrued rights), for “sections 26 to 33” substitute “sections 31 and 33”.
3
In section 31(2) (investment and resources of schemes), for “The scheme” substitute “A scheme which was an appropriate scheme or a money purchase contracted-out scheme immediately before the abolition date”.
4
In section 33 (tax requirements to prevail over certification requirements)7—
a
in the sidenote, for “certification requirements” substitute “requirements of section 31”, and
b
for “sections 26 to 32” substitute “section 31”.
5
In section 37 (alteration of rules of contracted-out schemes)8—
a
in subsection (1), after “rules of a” insert “salary related”, and
b
in subsection (3), after “section to a” insert “salary related”.
6
Omit section 38 (alteration of rules of appropriate schemes).
7
In section 39 (general power to make regulations), omit “, and Part II of that Schedule as respects personal pension schemes”.
8
In section 42A (reduced rates of Class 1 contributions, and rebates)9—
a
in subsection (3), at the beginning insert “Subject to subsection (5A),”, and
b
after subsection (5) insert—
5A
Where—
a
a payment under subsection (3) is due in respect of an earner, and
b
apart from this subsection, the payment would under regulations under subsection (3) be made to the earner,
HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment.
9
In section 43 (payment of minimum contributions to personal pension schemes), after subsection (6) insert—
6A
Where—
a
a payment under subsection (1) is due in respect of an earner, and
b
apart from this subsection, the payment would under regulations under subsection (3) be made to the earner,
HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment.
10
In section 50 (powers of Inland Revenue to approve arrangements for scheme ceasing to be certified)10—
a
in subsection (1)11—
i
omit “or a personal pension scheme”,
ii
for the words from “contracted-out” to “appropriate” substitute “salary related contracted-out”, and
iii
for paragraphs (a) and (b) substitute—
a
of earners’ accrued rights to guaranteed minimum pensions under the scheme or accrued rights to pensions under the scheme attributable to their service on or after the principal appointed day; and
b
of the liability for the payment of such pensions in respect of persons who have then become entitled to receive them.
b
in subsection (2), for the words from “contracted-out” to “appropriate” substitute “salary related contracted-out”,
c
in subsection (4)—
i
omit “(other than a money purchase scheme)”,
ii
for “26 to 33” substitute “31 and 33”, and
iii
for “43 to 45” substitute “43 and 45”, and
d
in subsection (6), for “which is not a money purchase contracted-out scheme”, substitute “to which subsection (1) applies”.
11
In section 52 (supervision of schemes which have ceased to be certified)—
a
in subsection (1)—
i
after “supervision of” insert “salary related”, and
ii
omit the words from “and section 54 shall apply” to the end,
b
in subsection (2), after “as respects any” insert “salary related”, and
c
omit subsections (2A)(b)12 and (3).
12
In section 53(3) (supervision: former contracted-out schemes)13, omit “or (b)”.
13
Omit section 54 (supervision: former appropriate personal pension schemes).
14
In section 96 (further provisions concerning exercise of option under section 95)—
a
in subsection (2)14—
i
in paragraph (a) omit “or his protected rights”, and
ii
in paragraph (b) omit “or protected”, and
b
in subsection (3)15—
i
in paragraph (a), omit “or the member’s protected rights; and”, and
ii
omit paragraph (b).
15
In section 99(1) (trustees’ duties after exercise of option), omit “or give effect to such protected rights”.
16
In section 156(1) (information for purposes of contracting-out)16, for “or appropriate scheme”, substitute “or a personal pension scheme which was an appropriate scheme before the abolition date”.
17
In section 159 (inalienability of guaranteed minimum pension and protected rights payments)—
a
in subsection (1)(a), after “scheme or” insert “entitled”,
b
in subsection (4), for the words from “protected rights”, in the first place they occur, to “protected rights”, in the second place they occur, substitute “payments giving effect to protected rights under a personal pension scheme”, and
c
in subsection (4A)(b)17, omit “such rights or to”.
18
In section 164 (Crown employment), for subsection (2) substitute—
2
A person who is employed by or under the Crown shall be treated as an employed earner for the purposes of—
a
sections 31 and 33, so far as they relate to personal pension schemes;
b
sections 43 and 45;
c
section 48, so far as it relates to minimum contributions;
d
sections 117, 154 and 155;
e
section 159, so far as it relates to protected rights payments; and
f
sections 160 and 166.
19
In section 170 (decisions and appeals), as substituted by paragraph 131 of Schedule 7 to the Social Security Act 199818, in subsection (3), omit “or 54”.
20
In section 170 (determination of questions by Secretary of State), as remaining in force for purposes other than those specified in article 2(1)(b) of the Social Security Act 1998 (Commencement No. 8, and Savings and Consequential and Transitional Provisions) Order 199919, in subsection (7)(a)20, omit “or appropriate scheme certificates”.
21
In section 177 (general financial arrangements), in subsection (3)(b), for sub-paragraph (ii) substitute—
ii
sections 31, 33, 117, 154 and 155;
iii
section 159, so far as it relates to protected rights payments; and
iv
sections 160 and 166.
22
In section 181 (general interpretation)—
a
in subsection (1), in the definition of “protected rights”, at the end add “, as it had effect immediately prior to the abolition date”, and
b
in subsection (4)21, omit “27, 28, 29,” and “32,”.
23
In section 183(3) (sub-delegation)22 omit “27(3),”.
24
In Schedule 2 (certification regulations), omit Part 2 (personal pension schemes).