Source: http://www.legislation.gov.uk/ukpga/2014/19/schedule/13/enacted
Timestamp: 2019-01-18 09:02:55
Document Index: 160797002

Matched Legal Cases: ['art 1', 'art 3', 'art 3', 'art 3', 'art 3', 'art 3']

SCHEDULE 13Abolition of contracting-out for salary related schemes
Part 1Pension Schemes Act 1993: amendments
1The Pension Schemes Act 1993 is amended as follows.
2For “the abolition date” (in each place) substitute “the first abolition date”.
3In the heading for Part 3 of the Act—
(a)for “Certification of pension schemes” substitute “Schemes that were contracted-out etc”;
4For the heading to Chapter 1 of Part 3 substitute “Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc”.
9Sections 9 and 11 (requirements for certification of schemes: general) are repealed.
11Sections 12A to 12D (requirements for certification applying to employment from 6 April 1997) are repealed.
12For the italic heading above section 13 substitute “Guaranteed minimum pensions”.
14In section 13 (minimum pensions for earners), in subsection (2)—
““Relevant year” has the meaning given by section 14(8).”
16In section 16 (revaluation of earnings factors for the purposes of section 14: early leavers etc), for subsection (2) substitute—
“(2)The scheme may provide that in a case where—
the earnings factors for that person shall be determined for the purposes of section 14(2) by reference to the last such order to come into force before the end of the tax year in which the earner ceases to be in pensionable service under the scheme (“the last service tax year”).”
17(1)Section 17 (minimum pensions for widows, widowers and surviving civil partners) is amended as follows.
(2)In subsection (4A), after paragraph (a) insert—
“(9A)For the purposes of subsection (4A)(aa) and (ab) a person attains state pension age when he or she attains pensionable age within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995.”
19In section 23 (securing of benefits), in subsection (2), omit paragraph (d).
21In section 25 (power for HMRC to impose conditions as to investments and resources), in subsection (2), after “A” insert “scheme that was a”.
24In section 37 (alteration of rules of contracted-out schemes) for subsections (1) to (3) substitute—
“(1)Except in prescribed cases, the rules of a scheme that was a salary related contracted-out scheme cannot be altered unless the alteration is of a prescribed description.
(3)Subsection (1) does not apply to a scheme if no person is entitled to receive, or has accrued rights to, any benefits under the scheme attributable to a period when the scheme was contracted-out.”
26For the heading to Chapter 2 of Part 3 substitute “Reduction in social security benefits for members of schemes that were contracted-out”.
29Section 41 (reduced rates of Class 1 contributions) is repealed.
30(1)Section 42 (review and alteration of reduced rates of Class 1 contributions) is repealed.
(2)There is no duty, before the repeal of section 42 comes into force, to lay before Parliament any reports under that section.
31In section 48A (additional pension and other benefits), in subsection (1), for the words from the beginning to the end of paragraph (b) substitute “In relation to—
(a)any tax week falling before the first abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 42A of this Act (as it then had effect),
(b)any tax week falling before the second abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 41 of this Act (as it then had effect), or
(c)any tax week falling before the first abolition date where an amount was paid under section 45(1) of this Act (as it then had effect) in respect of the earnings paid to or for the benefit of an earner,”.
33Section 50 (powers of HMRC to approve arrangements for scheme ceasing to be certified) is repealed.
34In section 51 (calculation of guaranteed minimum pensions under approved arrangements), in subsection (1)(b), for “ceases” substitute “ceased”.
36In section 53 (supervision: former contracted-out schemes), omit subsection (3).
38In section 87 (general protection principle), in subsection (1)(a), for sub-paragraph (i) substitute—
39In section 96 (further provisions concerning exercise of option to take cash equivalent in a particular way), in subsection (2), in paragraph (a)(i) omit “which is not a contracted-out scheme”.
40In section 109 (annual increase of guaranteed minimum pensions), in subsection (3A)(b), omit “for the purposes of Part 3 of the Pensions Act 1995”.
41In section 171 (questions arising in proceedings), in subsection (1), omit paragraph (b) and the “or” before it.
43(1)Section 181(1) (general interpretation) is amended as follows.
(2)In the appropriate places insert—
““the first abolition date” has the meaning given by section 7A;”
““the second abolition date” has the meaning given by section 7A;”
““the principal appointed day” means 6 April 1997 (which is the day designated as the principal appointed day for the purposes of Part 3 of the Pensions Act 1995);”
““salary related contracted-out scheme” is to be construed in accordance with section 7B;”
(3)Omit the definition of “abolition date”.
(4)In the definition of “appropriate scheme” and “appropriate scheme certificate”, for “section 181A” substitute “section 7B”.
(5)In the definition of “contracting-out certificate”, for “section 7 and section 181A” substitute “section 7B”.
(6)In the definition of “contributions equivalent premium”, for “has the meaning given in” substitute “means a premium that was paid under”.
(7)In the definition of “earner” and “earnings”, after “in accordance with” insert “section 8(1B) of this Act and”.
(8)In the definition of “money purchase contracted-out scheme”, for “section 181A” substitute “section 7B”.
45In section 185 (consultation about other regulations), omit subsection (9).
46(1)Schedule 2 (certification regulations) is amended as follows.
(2)Omit paragraphs 1 to 4.
(3)In paragraph 5(3A), for “a contracted-out occupational pension scheme which is being wound up,” substitute “a scheme which was a contracted-out occupational pension scheme and which was being wound up before the second abolition date”.
(4)Omit paragraphs 6 to 8.