The Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

Breaks in pensionable serviceE+W+S

21.—(1) In the case of a member whose pensionable service has been broken, the preservation requirements are modified as described in this regulation. For this purpose, a member’s pensionable service is broken if, after it terminates, the member returns to pensionable service under the same scheme.

(2) If paragraph (3) applies to the break and the member’s pensionable service is again terminated before normal pension age, the period of pensionable service previously terminated, and any linked qualifying service in relation to that period, must count towards the 2 years’ qualifying service whether or not it counts towards qualification for long service benefit. [F1section 71(9) of the Act] is modified accordingly.

(3) This paragraph applies to the break in pensionable service if one or more of the following conditions is satisfied—

(a)the break does not exceed one month;

(b)the break corresponds to the member’s absence from work wholly or partly because of pregnancy or confinement, the member returns to work after the break in exercise of a right under section 45(1) of the M1Employment Protection (Consolidation) Act 1978 (right to return to work) and the member returns to pensionable service no later than one month after returning to work;

(c)the break corresponds to the member’s absence from work in furtherance of a “trade dispute”, as defined in section 19(2)(b) of the M2 Social Security Act 1975 (loss of employment due to stoppage of work).

(4) If paragraph (5) applies to the break and the member’s pensionable service is again terminated before normal pension age, the scheme must provide for the member to be entitled to short service benefit in respect of pensionable service after the break whether or not the conditions described in [F2section 71(1) of the Act] are satisfied. [F2Section 71(1) of the Act] is modified accordingly.

(5) This paragraph applies to the break in pensionable service if the member became entitled to short service benefit when his pensionable service previously terminated. This paragraph does not apply, however, if all the member’s accrued rights in respect of the period before the break have been—

(a)transferred to another scheme as described in [F3section 73(2) of the Act];

(b)“appropriately secured” by a transaction to which [F4section 19 of the Act] applies (extinguishment of liability of scheme for pensions secured by insurance policies or annuity contracts) F5...; or

(c)extinguished by payment of a state scheme premium under [F6Chapter III of Part III of the Act] or by payment of a lump sum.

(6) A scheme may provide that, when the member returns to pensionable service under the scheme, the member’s pensionable service before and after the break be treated as continuous so that the whole period qualifies the member for long service benefit under the scheme. The scheme will not then be required to provide short service benefit in respect of the period before the break.

(7) For the purposes of this regulation, “appropriately secured” means the same as in [F7section 19 of the Act] except that a policy of insurance or annuity contract which is taken out or entered into with an “authorised friendly society” (as defined for the purposes of regulation 6), but which otherwise satisfies the conditions for being “appropriate” for the purposes of [F7section 19], is to be treated as if it were appropriate for the purposes of that section.