(This note is not part of the Regulations)
These Regulations are all made under section 38(1) of the Social Security Pensions Act 1975 (“the 1975 Act”) inserted by the Social Security Act 1986 (“the 1986 Act”), before the end of a period of 12 months from the commencement of the relevant provision as inserted. Consequently, by virtue of section 61(5) of the 1986 Act, the provisions of section 61(2) and (3) of the 1975 Act (as amended by section 86(1) of, and paragraph 94 of Schedule 10 to, the 1986 Act), which require reference to the Occupational Pensions Board (“the Board”) of, and a report by the Board on, proposals to make regulations for certain purposes of both Acts, do not apply to them.
They amend the Contracting-out (Transfer) Regulations 1985 (“the principal Regulations”).
Regulations 3, 5 and 11 amend regulations 2 and 3 of, and Schedule 3 to, the principal Regulations so as to provide that salary related occupational pension schemes which retain responsibility for accrued rights to guaranteed minimum pensions after ceasing to be contracted-out, and consequently remain under the supervision on the Board, may make to, or receive from, other salary related occupational pension schemes a transfer of accrued rights to guaranteed minimum pensions or the liability for payment of them. Regulations 7 and 8 make minor and consequential amendments to the principal Regulations for the same purposes.
Regulation 4 inserts regulation 2A into the principal Regulations so as to make provision for the circumstances in which, and the condition subject to which, a transfer of an earner’s rights to guaranteed minimum pensions may be made from a policy of insurance or annuity contract to a salary related occupational pension scheme. (Consequential modifications to Part III of the 1975 Act are made by the insertion into the principal Regulations of regulation 3A and Schedule 3A by regulations 6 and 12 respectively).
Regulation 4 also inserts regulation 2B, and regulations 9 and 10 respectively insert Schedules 1A and 2A, into the principal Regulations so as to make provision for the circumstances in which, and the conditions subject to which, a transfer payment may be made in respect of an earner’s rights to guaranteed minimum pensions by a salary related occupational pension scheme, or from a policy of insurance or annuity contract, to a money purchase occupational pension scheme or an appropriate personal pension scheme.
The remaining amendments made by these Regulations are minor or consequential.