C1Part 1Pension scheme membership for jobholders
Chapter 1Employers' duties
Transitional
I129Transitional periods for money purchase and personal pension schemes
1
During the first transitional period F17...—
a
sections 20(1)(b) and 26(4)(b) have effect as if for “3%” there were substituted “
1%
”
;
b
sections 20(1)(c) and 26(5)(b) have effect as if for “8%” there were substituted “
2%
”
.
2
The first transitional period is a prescribed period of at least one year, beginning with the coming into force of section 20.
3
During the second transitional period F18...—
a
sections 20(1)(b) and 26(4)(b) have effect as if for “3%” there were substituted “
2%
”
;
b
sections 20(1)(c) and 26(5)(b) have effect as if for “8%” there were substituted “
5%
”
.
4
The second transitional period is a prescribed period of at least one year, beginning with the end of the first transitional period.
I230Transitional period for defined benefits and hybrid schemes
1
Subsection (3) applies if, in relation to a person who on the employer's first enrolment date is a jobholder to whom section 3 applies, the conditions in subsection (2) are satisfied, and continue to be satisfied during the transitional period for defined benefits and hybrid schemes.
2
The conditions are that—
a
the jobholder has been employed by the employer for a continuous period beginning before the employer's first enrolment date,
b
at a time in that period before the employer's first enrolment date, the jobholder became entitled to become an active member of a defined benefits scheme or F11a defined benefits member of a hybrid scheme ,
c
the jobholder is, and has always since that time been, entitled to become an active member of a defined benefits scheme or F12a defined benefits member of a hybrid scheme , and
d
the scheme to which that entitlement relates is a qualifying scheme, and any scheme to which it has related on or after the employer's first enrolment date has been a qualifying scheme.
3
F1If by the end of the prescribed period the employer has given the jobholder notice that the employer intends to defer automatic enrolment until the end of the transitional period for defined benefits and hybrid schemes, section 3 has effect in relation to the jobholder with the substitution for subsection (2) of the following subsection—
2
The employer must make prescribed arrangements by which the jobholder becomes
F13a
an active member, with effect from the end of the transitional period for defined benefits and hybrid schemes, of an automatic enrolment scheme which is a defined benefits scheme,F14 or
b
a defined benefits member, with effect from the end of that period, of an automatic enrolment scheme which is a hybrid scheme.F19A reference in this subsection to a scheme does not include a scheme to which section 30(11)(a) or (b) applies.
4
If F2a notice is given under subsection (3) and at any later time in the transitional period for defined benefits and hybrid schemes the condition in subsection (2)(c) or (d) of this section ceases to be satisfied, subsection (5) applies instead of subsection (3) (and the day after the last day on which that condition is satisfied is referred to as “the closure date”).
C25
Where this subsection applies, section 3 has effect in relation to the jobholder with the substitution for subsection (2) of the following subsection—
2
The employer must make prescribed arrangements by which the jobholder either—
a
becomes an active member, with effect from the closure date, of an automatic enrolment scheme which is a defined benefits scheme F21other than a scheme to which section 30(11)(a) applies,
F15aa
becomes a defined benefits member, with effect from the closure date, of an automatic enrolment scheme which is a hybrid scheme, F22other than a scheme to which section 30(11)(b) applies
b
becomes an active member, with effect from the automatic enrolment date, of an automatic enrolment scheme which is a money purchase scheme F3or personal pension scheme.
F16c
becomes a money purchase member, with effect from the automatic enrolment date, of an automatic enrolment scheme which is a hybrid scheme,
F23d
becomes an active member, with effect from the automatic enrolment date, of an automatic enrolment scheme which is a defined benefits scheme to which section 30(11)(a) applies, or
e
becomes a defined benefits member , with effect from the automatic enrolment date, of an automatic enrolment scheme which is a hybrid scheme to which section 30(11)(b) applies.
C26
If the jobholder becomes a member of a scheme under arrangements made under subsection (2)(b) of that section (as substituted by subsection (5))—
a
the employer's contributions are payable with effect from the automatic enrolment date;
b
any requirement of the scheme F4. . . for contributions to be payable by the jobholder does not apply in respect of the period of the jobholder's membership before the closure date;
c
regulations made for the purposes of section 3(2)(b) must secure that the jobholder may pay, within a period prescribed by the regulations, any contributions which would have been payable by the jobholder but for paragraph (b) of this subsection.
C27
Where subsection (3) or (5) of this section F5 applies—
a
section 3(3) and (4) apply as if references to the automatic enrolment date were references to the F6day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder;
F7b
section 4 applies as if—
i
the reference in subsection (1) to the employer's staging date were a reference to the employer's first enrolment date;
ii
in that subsection, for “the workers's automatic enrolment date is the deferral date” there were substituted the day with effect from which arrangements fall to be made by virtue of section 30 in respect of the jobholder is changed to the deferral date;
iii
in subsections (4) to (6), references to the starting day were references to the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.
F10c
section 5(2) does not apply in relation to an automatic re-enrolment date that falls before the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.
F87A
The Secretary of State may by regulations make provision about the form and content of a notice under subsection (3).
8
The transitional period for defined benefits and hybrid schemes is a prescribed period beginning with the day on which section 3 comes into force.
9
In this section, the “employer's first enrolment date” means the first day on which section 3 applies in the case of the employer (where that day falls within the transitional period for defined benefits and hybrid schemes).
F910
For the purposes of this section—
a
a person is a “money purchase member” of a hybrid scheme if—
i
the person is an active member of the scheme, and
ii
all the benefits accruing in respect of his or her membership are money purchase benefits, and
b
a person is a “defined benefits member” of a hybrid scheme if the person is an active member of the scheme other than a money purchase member.
F2011
In subsection (2) references to a scheme do not include—
a
a defined benefits scheme that satisfies the quality requirement in relation to the jobholder by reason only of section 23A(1)(a), or
b
a hybrid scheme if—
i
the appropriate paragraph of section 24(1) for any provisions of the scheme is paragraph (b) (those provisions are referred to below as “the defined benefits section”),
ii
the defined benefits section satisfies section 23A(1)(a) as applied by section 24(1)(b), and
iii
the defined benefits section does not satisfy any of the other requirements mentioned in section 24(1)(b).
Pt. 1 applied (with modifications) (temp. 1.7.2012 to 30.6.2020) by The Automatic Enrolment (Offshore Employment) Order 2012 (S.I. 2012/1388), art. 2 (with saving in art. 5)