Statutory Instrument 1987 No. 1116

The Personal and Occupational Pension Schemes (Modification of Enactments) Regulations 1987

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© Crown Copyright 1987

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1987 No. 1116

PENSIONS

The Personal and Occupational Pension Schemes (Modification of Enactments) Regulations 1987

The Secretary of State for Social Services, in exercise of the powers conferred upon him by sections 17(1) and 84(1) of the Social Security Act 1986^[1], and of all other powers enabling him in that behalf, by this instrument, which is made before the end of a period of 12 months from the commencement of the enactments under which it is made, makes the following Regulations:—

Citation, commencement and interpretation
    1.—(1)  These Regulations may be cited as the Personal and Occupational Pension Schemes (Modification of Enactments) Regulations 1987 and shall come into force on 27th July 1987, except regulation 5 and Schedule 6, which shall come into force on 6th April 1988.

    (2)  In these Regulations, "personal pension scheme" has the same meaning as in the Social Security Act 1986.

Provisions of the Social Security Act 1973 relating to occupational pensionschemes to apply, subject to modifications, to personal pension schemes
    2.    Subsections (1), (1A), (3) (except paragraphs (a), (b), (d), (dd) and (e)), (4), (5) (except paragraph (c)) and (6) to (10) of section 64 of the Social Security Act 1973^[2] (modification and winding-up of schemes by order of the Occupational Pensions Board) shall have effect in relation to personal pension schemes subject to the modifications described in Schedule 1.

Provisions of the Social Security Pensions Act 1975 relating to occupational pension schemes to apply, subject to modifications, to personal pension schemes
    3.—(1)  Section 32(2) of the Social Security Pensions Act 1975^[3] (an occupational pension scheme can be contracted-out if specified requirements are satisfied) shall have effect in relation to personal pension schemes as if it provided that, subject to the provisions of section 2 of the Social Security Act 1986 and regulations made thereunder, a personal pension scheme can be an appropriate scheme (for the purposes of the Social Security Act 1986) only if the rules of the scheme applying to protected rights are framed so as to comply with the requirements of any regulations prescribing the form and content of rules of appropriate schemes and with such other requirements as to form and content (not inconsistent with regulations) as may be imposed by the Occupational Pensions Board as a condition of being an appropriate scheme, either generally or in relation to a particular scheme.

    (2)  Subsections (1), (2), (2A) and (5) of section 49 of the Social Security Pensions Act 1975^[4] (supervision by the Occupational Pensions Board of occupational pension schemes which have ceased to be contracted-out) shall have effect in relation to personal pension schemes subject to the modifications described in Schedule 2.

    (3)  Section 50 of the Social Security Pensions Act 1975^[5] (alteration of rules of contracted-out schemes) shall have effect in relation to personal pension schemes subject to the modifications specified in paragraphs (4) to (6) of this regulation.

    (4)  Subsection (1) shall be so modified as to provide that, where an appropriate scheme certificate has been issued, no alteration of the rules of the relevant appropriate scheme shall be made so as to affect any of the matters dealt with in Schedule 1 to the Social Security Act 1986, or so as to cause the scheme to cease to take one, and thereafter to take another, of the forms specified in paragraphs (a) to (c) of regulation 2 of the Personal Pension Schemes (Appropriate Schemes) Regulations 1987^[6], unless it is an alteration to which subsection (1) does not apply or the following conditions are satisfied, namely—
 (a) the Board have given their consent to the alteration; and
 (b) (except in so far as the Board in their discretion dispense with satisfaction of this condition) notice of intention to apply for that consent was given in accordance with the requirements specified in paragraph (7) of this regulation,
and that, subject to subsection (2), an alteration to which subsection (1) applies but which does not satisfy those conditions shall be void.

    (5)  Subsection (1A) shall have effect as if paragraph (a) were omitted.

    (6)  Subsection (3) shall be so modified as to provide that section 50 shall continue in force in relation to a scheme after it has ceased to be appropriate so long as any person has protected rights under the scheme.

    (7)  The requirements referred to in paragraph (4)(b) are—
 (a) that the notice shall be given in writing to—
 (i) any member of the scheme who has protected rights under it, and
 (ii) any earner who, jointly with the trustees or managers of the scheme, has given in relation to the scheme a notice under section 1(9) of the Social Security Act 1986 which has not been cancelled,
by sending it to his last known address;
 (b) that it shall specify the name of the scheme;
 (c) that it shall specify the date on which it is desired that the alteration should have effect, being a date which is at least 3 months later than the date on which the notice is given; and
 (d) that it shall specify the purport of the intended alteration and give an explanation of the effect on the persons to whom the notice is given.

    (8)  Sections 56A and 56L of the Social Security Pensions Act 1975^[7] shall have effect in relation to personal pension schemes subject to the modifications specified in Schedule 3.

    (9)  Section 57 of the Social Security Pensions Act 1975 (disclosure of information by the Occupational Pensions Board), except in its application to Northern Ireland, shall have effect in relation to personal pension schemes as if the reference in it to an occupational pension scheme were a reference to a personal pension scheme.

    (10)  Schedule 1A to the Social Security Pensions Act 1975^[8] shall have effect in relation to personal pension schemes subject to the modifications specified in Schedule 4.

    (11)  Paragraph 6 of Schedule 2 to the Social Security Pensions Act 1975 shall have effect in relation to personal pension schemes subject to the modifications specified in Schedule 5.

Modification of provisions of the Social Security Act 1973 in consequence of Part I of the Social Security Act 1986
    4.—(1)  In consequence of Part I of the Social Security Act 1986, the provisions of the Social Security Act 1973^[9] specified in paragraphs (2) and (3) of this regulation shall have effect subject to the modifications specified in those paragraphs.

    (2)  Section 64(3)(c) shall have effect as if, after "another scheme", there were inserted "(whether another occupational pension scheme or a personal pension scheme)".

    (3)  Paragraph 6 of Schedule 16 shall have effect as if there were added, after paragraph (1)(b)—
"or
(c) a transfer payment in respect of his rights under a personal pension scheme has been made to the scheme," .

Modification of provisions of the Social Security Pensions Act 1975 in consequence of Part I of the Social Security Act 1986
    5.—(1)  In consequence of Part I of the Social Security Act 1986 the provisions of the Social Security Pensions Act 1975^[10] specified in paragraphs (2) to (4) of this regulation shall have effect subject to the modifications mentioned in those paragraphs.

    (2)  Section 49(1) shall have effect as if, after "person" in paragraph (b)(ii) and at the end of the subsection, there were inserted "(not being a person in respect of whom a premium is not payable by virtue of regulation 18(2A) of the Occupational Pension Schemes (Contracting-out) Regulations 1984)"^[11].

    (3)  Schedule 1A shall have effect subject to the modifications described in Schedule 6.

    (4)  Schedule 2 to the Social Security Pensions Act 1975 shall have effect as if, in paragraph 6(4)(a), after "rights to receive such pensions", there were inserted "or, in the case of a contracted-out protected rights premium, for the purpose of extinguishing protected rights and reducing any guaranteed minimum pension to which a person is treated as entitled,".

Signed by authority of the Secretary of State for Social Services.

Nicholas Scot

Minister of State, Department of Health and Social Security

25th June 1987

[1] 1986 c. 50. See definitions of "prescribed" and "regulations" in section 84(1). back

[2] 1973 c. 38. Section 64 is amended by the Social Security Pensions Act 1975 (c. 60), sections 56(5) and 65(1) and Schedule 4, paragraph 25, and by the Social Security Act 1986, sections 12(11) and 86(1) and Schedule 10, paragraph 3. back

[3] 1975 c. 60. Section 32(2) is amended by the Social Security Act 1986, sections 6 and 86(1), Schedule 2, paragraph 5 and Schedule 10, paragraph 16. back

[4] Section 49 is amended by the Social Security Act 1986, sections 6 and 86, Schedule 2, paragraph 9, Schedule 10, paragraph 24, and Schedule 11. back

[5] Section 50 is amended by the Social Security Act 1986 (c. 50), sections 6 and 86, Schedule 2, paragraph 10, and Schedule 10, paragraph 25. back

[6] S.I. 1987/1109. back

[7] Sections 56A and 56L were inserted by the Social Security Act 1985 (c. 53), section 3 and Schedule 2. back

[8] 1975 c. 60. Schedule 1A was inserted by the Social Security Act 1985 (c. 53), section 2 and Schedule 1. back

[9] 1973 c. 38. back

[10] Sub-paragraph (4) was inserted into paragraph 6 of Schedule 2 by the Social Security Act 1980 (c. 30), section 3(12). back

[11] Paragraph (2A) was inserted into regulation 18 by the Occupational Pension Schemes (Contracted-out Protected Rights Premiums) Regulations 1987 (S.I. 1987/1103), reg. 4(3). back

Explanatory Note