Social Security Act 1986

1Minimum contributions to personal pension schemes

(1)Subject to the following provisions of this Part of this Act, the Secretary of State shall pay, except in such circumstances as may be prescribed, minimum contributions in respect of an employed earner for any period during which the earner—

(a)is over the age of 16 but has not attained pensionable age;

(b)is not a married woman or widow who has made an election which is still operative that her liability in respect of primary Class 1 contributions shall be a liability to contribute at a reduced rate; and

(c)is a member of an appropriate personal pension scheme which is for the time being the earner's chosen scheme.

(2)Regulations may make provision as to the manner in which, and time at which or period within which, minimum contributions are to be paid.

(3)Subject to subsection (4) below, the Secretary of State shall pay minimum contributions in respect of an earner to the trustees or managers of the earner's chosen scheme.

(4)In such circumstances as may be prescribed the Secretary of State shall pay minimum contributions to a prescribed person.

(5)Where any of the conditions mentioned in subsections above ceases to be satisfied in the case of an earner in respect of whom the Secretary of State is required to pay minimum contributions, the duty of the Secretary of State to pay them shall cease as from a date determined in accordance with regulations.

(6)If the Secretary of State pays an amount by way of minimum contributions which he is not required to pay, he may recover it from the person to whom he paid it or from any person in respect of whom he paid it.

(7)If he pays in respect of an earner an amount by way of minimum contributions which he is required to pay, but does not pay it to the trustees or managers of the earner's chosen scheme, he may recover it from the person to whom he paid it or from the earner.

(8)A personal pension scheme is an appropriate scheme if there is in force a certificate (in this Act referred to as an " appropriate scheme certificate ") issued by the Occupational Pensions Board in accordance with section 2 below that it is such a scheme.

(9)Where an earner and the trustees or managers of an appropriate personal pension scheme have jointly given notice to the Secretary of State, in such manner and form and with such supporting evidence as may be prescribed—

(a)that the earner is, or intends to become, a member of the scheme and wishes minimum contributions in respect of him to be paid to the scheme;

(b)that the trustees or managers have agreed to accept him as a member of the scheme and to receive minimum contributions in respect of him,

that scheme is the earner's chosen scheme as from a date determined in accordance with regulations and specified in the notice, unless at that date some other appropriate scheme is the earner's chosen scheme.

(10)Either an earner or the trustees or managers of a scheme may cancel a notice under subsection (9) above by giving notice to that effect to the Secretary of State at such time and in such manner and form as may be prescribed.

(11)Where a notice under subsection (10) above is given, the scheme ceases to be the earner's chosen scheme as from a date determined in accordance with regulations and specified in the notice.