Pensions Citation and commencement 1 These Regulations may be cited as the Contracting-out (Transfer and Transfer Payment) (Amendment) Regulations 2018, and come into force on 6th April 2018. Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations 1996 2 1 The Contracting-out (Transfer and Transfer Payment) Regulations 1996 are amended as follows. 2 In regulation 1(2) (interpretation)— a in the definition of “connected employer transfer” and “connected employer transfer payment”— i for the words “from a scheme that was a salary-related contracted-out scheme to a scheme that was a salary-related contracted-out scheme” in both places in which they occur, substitute “from one salary-related scheme to another”; and ii in paragraph (b)(ii), for “each of the employers is one” substitute “the employers are members”; b in the appropriate place, insert— “salary-related scheme” means a scheme which— is not a scheme under which all the benefits that may be provided are money purchase benefits, and does not fall within a class prescribed in regulations made by the Secretary of State under section 100D of the 1993 Act; . 3 In regulation 7 (general)— a in paragraph (1)— i omit “a scheme that was” in both places where it occurs, and ii omit “contracted-out” in both places where it occurs; b in paragraph (2A)— i for “an occupational pension scheme that was a salary-related contracted-out scheme” substitute “a salary-related scheme”, and ii for “that occupational pension scheme” substitute “that scheme”. 4 For regulation 9 (connected employer transfer payments) substitute— Connected employer transfer payments 9 A connected employer transfer payment may be made subject to the condition set out in regulation 12(3) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (requirement for an actuarial certificate), irrespective of whether that condition would otherwise apply to the member concerned, and either— a for a transfer to a scheme that was a salary-related contracted-out scheme, the condition set out in regulation 8(c); or b for a transfer to a scheme that has never been a contracted-out scheme, the condition that the benefits (including benefits for the earner’s widow, widower or surviving civil partner) to be credited in the receiving scheme in respect of that part of the transfer payment which relates to the earner’s accrued section 9(2B) rights, or pensions in payment deriving from section 9(2B) rights, must be such as would have complied with section 12A(1) of the 1993 Act (the statutory standard) as it had effect immediately before 6th April 2016. . 5 In regulation 11A(1) (transfers in respect of section 9(2B) rights), for “an occupational pension scheme that was a salary-related contracted-out scheme” substitute “a salary-related scheme”. 6 In regulation 12 (modification of Part III of the 1993 Act)— a omit “a scheme that was” and “contracted-out”; b in paragraph (b)— i after “(meaning of “guaranteed minimum pension”)” insert “24A(1)(a) (conversion of guaranteed minimum pension into other benefits: introduction)”; ii for “paragraphs 1, 4 and 5” substitute “paragraphs 1, 1A, 4 and 5”; c in paragraph (c)— i for “sections 8(2) and 159” substitute “sections 8(2), 24A(1)(a) and 159”; ii for “paragraphs 1 and 5” substitute “paragraphs 1, 1A and 5”. 7 In Schedule 1 (further conditions for transfers of guaranteed minimum pensions)— a in the heading to Part 1, omit “a Scheme that was” and “Contracted-out”; b in paragraph 1— i at the end of sub-paragraph (a) omit “and”; ii in sub-paragraph (b), for “sections 13 and 17 of the 1993 Act” substitute “section 13 or (as the case may be) 17 of the 1993 Act; and”; iii after sub-paragraph (b) insert— c comply with sections 13 to 24E of the 1993 Act in respect of accrued rights. ; c for paragraph 6 substitute— 6 1 The date of commencement of the pension the liability for which is transferred— a if the pension is payable to the person who has become entitled to it, must be the date from which liability for payment is assumed by the receiving scheme; and b if the pension is payable to the widow, widower or surviving civil partner of that person, must be the same as it would have been under the provisions of the transferring scheme. 2 The receiving scheme must contain the same provision (if any) for suspension and forfeiture of that pension as for guaranteed minimum pensions provided by the receiving scheme in accordance with section 13 or (as the case may be) 17 of the 1993 Act. 3 The receiving scheme must provide for the payment of guaranteed minimum pensions to or in respect of a person who has become entitled to them at a rate that is no lower than the rate at which they would have been paid by the transferring scheme, taking into account any increases to the rate which are required by virtue of section 109 of the 1993 Act. . 8 In Schedule 2 (modifications of Part III of the 1993 Act)— a in paragraph 1, for the definition of “guaranteed minimum pension” substitute— “guaranteed minimum pension” means any pension which is provided— by a scheme that was a salary-related contracted-out scheme in accordance with the requirements of sections 13 and 17; or by a salary-related scheme in compliance with the condition set out in paragraph 1 or 6 of Schedule 1 to the Contracting-out (Transfer and Transfer Payment) Regulations 1996 (or, as the case may be, in paragraph 1 or 5 of Schedule 2 to the Contracting-out (Transfer) Regulations 1985 ), to the extent to which its weekly rate is equal to the earner’s or, as the case may be, the earner’s widow’s, widower’s or surviving same sex spouse’s or surviving civil partner’s guaranteed minimum, as determined for the purposes of those sections or, as the case may be, conditions;; ; b after paragraph 1, insert— 1A Section 24A(1)(a) shall have effect as if after “17(1)” there were inserted “and in paragraphs 1 and 6 of Schedule 1 to the Contracting-out (Transfer and Transfer Payment) Regulations 1996. . Amendment of the Occupational Pension Schemes (Schemes that were Contracted-out) ( No. 2) Regulations 2015 3 1 The Occupational Pension Schemes (Schemes that were Contracted-out) (No. 2) Regulations 2015 are amended as follows. 2 In regulation 2(1) (interpretation), in the definition of “section 9(2B) rights”— a for paragraph (a) substitute— a rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions)— i under a scheme that was a salary-related contracted-out scheme, or ii under a salary-related scheme, as defined in regulation 1(2) of the Contracting-out (Transfer and Transfer Payment) Regulations 1996, that has never been a contracted-out scheme, following a transfer in accordance with regulation 9 of those Regulations, so far as attributable to an earner’s service in contracted-out employment on or after 6th April 1997; and ; b in paragraph (b)(i), for “another scheme that was a salary-related contracted-out scheme” substitute “another salary-related scheme”. Signed by authority of the Secretary of State for Work and Pensions Guy Opperman Parliamentary Under Secretary of State Department for Work and Pensions 22nd February 2018