The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005

• Citation: S.I. 2005/891
• Sections: 3

Section 1 Citation, commencement, interpretation and application

(1) These Regulations may be cited as the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005.

(2) These Regulations come into force on 21st April 2005.

(3) Regulations 2 and 3 apply if the effective date is on or after 21st April 2005.

(4) In paragraph (3) “the effective date” means—

(a) in the case of regulation 2, the date on which the Commissioners of Inland Revenue determine for the purposes of paragraph 5(3A) to (3E) of Schedule 2 (resources of scheme insufficient on winding up) to the Pension Schemes Act 1993 the extent to which the resources of a scheme are insufficient to meet the liability for the cash equivalent of the member’s rights under the scheme; and

(b) in the case of regulation 3, the date on which the Commissioners of Inland Revenue determine for the purposes of paragraph 5(3A) to (3E) of Schedule 1 (resources of scheme insufficient on winding up) to the Pension Schemes (Northern Ireland) Act 1993 the extent to which the resources of a scheme are insufficient to meet the liability for the cash equivalent of the member’s rights under the scheme.

(5) This regulation, in so far as it relates to regulation 2, and regulation 2 apply to England, Wales and Scotland.

(6) This regulation, in so far as it relates to regulation 3, and regulation 3 apply to Northern Ireland.

Section 2 Amendments of the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations 1998

(1) The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations 1998 (“the 1998 Regulations ”) are amended as follows.

(2) In regulation 3(2)(b) (method of calculation where no election to pay a contributions equivalent premium may be made) after “representing–” insert—

(ia) as regards any relevant employment after 5th April 2002, the weekly amount as specified in paragraph (3);

(3) In regulation 3(2)(b)(i) after “1997” insert “and before 6th April 2002”.

(4) After regulation 3(2) add––

(3) The weekly amount specified in this paragraph is—

(a) the weekly amount of additional pension to which the member would be entitled in respect of the relevant employment after 5th April 2002 (whether by virtue of his own contributions or, in the case of a surviving spouse member, by virtue of the earner’s contributions) if the scheme had not been a contracted-out scheme, less the weekly amount of any such pension to which he is so entitled despite the scheme being such a scheme; or

(b) the weekly amount of additional pension to which the member would have become so entitled on attaining pensionable age if the scheme had not been such a scheme, less the weekly amount of any such pension to which he will be so entitled despite the scheme being such a scheme.

(5) In regulation 4(b) (market level indicator) for “3.5 per cent.” substitute “3 per cent.”.

(6) For the tables in Schedule 1 substitute the tables set out in Schedule 1 to these Regulations.

(7) For the table in Schedule 2 substitute the table set out in Schedule 2 to these Regulations.

Section 3 Amendments of the Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations (Northern Ireland) 1998

(1) The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations (Northern Ireland) 1998 (“the 1998 Regulations”) are amended as follows.

(2) In regulation 3(2)(b) (method of calculation where no election to pay a contributions equivalent premium may be made) after “representing–” insert—

(ia) as regards any relevant employment after 5th April 2002, the weekly amount as specified in paragraph (3);

(3) In regulation 3(2)(b)(i) after “1997” insert “and before 6th April 2002”.

(4) After regulation 3(2) add ––

(3) The weekly amount specified in this paragraph is—

(a) the weekly amount of additional pension to which the member would be entitled in respect of the relevant employment after 5th April 2002 (whether by virtue of his own contributions or, in the case of a surviving spouse member, by virtue of the earner’s contributions) if the scheme had not been a contracted-out scheme, less the weekly amount of any such pension to which he is so entitled despite the scheme being such a scheme; or

(b) the weekly amount of additional pension to which the member would have become so entitled on attaining pensionable age if the scheme had not been such a scheme, less the weekly amount of any such pension to which he will be so entitled despite the scheme being such a scheme.

(5) In regulation 4(b) (market level indicator) for “3.5 per cent.” substitute “3 per cent.”.

(6) For the tables in Schedule 1 substitute the tables set out in Schedule 1 to these Regulations.

(7) For the table in Schedule 2 substitute the table set out in Schedule 2 to these Regulations.