These Regulations make amendments to secondary legislation relating to: (i) the abolition of contracting- out of the additional State Pension for salary related pension schemes; and (ii) the calculation of a lump sum payment to an individual who deferred receipt of their Graduated Retirement Benefit.

These Regulations also make amendments to secondary legislation to provide a new fixed rate of revaluation of guaranteed minimum pensions for those leaving pensionable service after 5th April 2017.

Regulation 2 makes amendments to the Contracting-out (Transfer and Transfer Payment) Regulations 1996 (S.I. 1996/1462) to state that those regulations apply to salary related pension schemes that ceased to contract out on the second abolition date.

Regulation 3 makes amendments to the Social Security (Graduated Retirement Benefit) Regulations 2005 (S.I. 2005/454) in order to provide for the calculation of entitlement, under the old State Pension, to a Graduated Retirement Benefit. It inserts a cross-reference to regulation 22C of the Social Security (Claims and Payments) Regulations 1987 (S.I. 1987/1968). The cross-reference sets the day on which a period starts for the purposes of calculating the amount of a lump sum of Graduated Retirement Benefit.

Regulation 4 makes the following amendments to the Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015 (S.I. 2015/1677). It enables HMRC to extend the deadline for late notification and payment of a contributions equivalent premium where a scheme has reconciled its records through HMRC’s scheme reconciliation service. Further, it provides that a guaranteed minimum pension can also be paid to an earner’s survivor where such a person is entitled to bereavement support payment and defines the period for which the guaranteed minimum pension can be paid in this situation. It also provides a new fixed rate of revaluation of guaranteed minimum pensions for those leaving pensionable service after 5 April 2017.

An impact assessment of the effect that this instrument, except for regulation 3, will have on the costs of business and the voluntary sector is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk and copies can be obtained from the Department for Work and Pensions, First Floor, Caxton House, Tothill Street, London, SW1H 9NA. An impact assessment of the effect that regulation 3 of this instrument will have has not been made because regulation 3 has no impact on the costs of business and the voluntary sector.