|
| |
| |
| | | | | | | | Period within which birthday falls |
| | | | | | | | | | | | 6th July 1977 to 5th August |
| | | | | | | | | 5 | | | | | | | | | | | | | | | 6th September 1977 to 5th |
| | | | | | | | | | | | | | | 10 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15 | | | | | | | | | | | | | | | 6th February 1978 to 5th March |
| | | | | | | | | | | | 6th March 1978 to 5th April |
| | | 20 | | | | | | |
|
| |
(10) | A person born after 5th April 1978 attains pensionable age when |
| |
the person attains the age of 68.” |
| |
| |
| |
Abolition of contracting-out for defined contribution pension schemes |
| 25 |
| |
Amendments having effect as from abolition date |
| |
Pension Schemes Act 1993 (c. 48) |
| |
1 | The Pension Schemes Act 1993 has effect subject to the following |
| |
| 30 |
2 (1) | Section 7 (issue of contracting-out and appropriate scheme certificates) is |
| |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | Regulations shall provide for HMRC to issue certificates stating that |
| |
the employment of an earner in employed earner’s employment is |
| 35 |
| |
| |
|
| |
| |
contracted-out employment by reference to an occupational pension |
| |
| |
(1A) | In this Act such a certificate is referred to as “a contracting-out |
| |
| |
(3) | Omit subsections (4) to (6) (provisions relating to appropriate scheme |
| 5 |
certificates in respect of personal pension schemes). |
| |
(4) | In subsection (7) (no certificate to have effect from a date earlier than its |
| |
issue) omit “or appropriate scheme certificate”. |
| |
(5) | After that subsection insert— |
| |
“(8) | References in this Act to a contracting-out certificate, a contracted- |
| 10 |
out scheme and to contracting-out in a context relating to a money |
| |
purchase contracted-out scheme are to be construed in accordance |
| |
| |
(6) | In the sidenote, omit “and appropriate scheme”. |
| |
3 (1) | Section 8 (definitions of certain terms) is amended as follows. |
| 15 |
(2) | In subsection (1) (definition of “contracted-out employment”) for the words |
| |
from “he is under pensionable age” to the end of paragraph (a) substitute “— |
| |
(a) | he is under pensionable age; |
| |
(aa) | his service in the employment is for the time being service |
| |
which qualifies him for a pension provided by an |
| 20 |
occupational pension scheme contracted out by virtue of |
| |
satisfying section 9(2) (in this Act referred to as “a salary |
| |
related contracted-out scheme”);”. |
| |
(3) | After subsection (1) insert— |
| |
“(1A) | In addition, in relation to any period before the abolition date, the |
| 25 |
employment of an earner in employed earner’s employment was |
| |
“contracted-out employment” in relation to him during that period |
| |
| |
(a) | he was under pensionable age; |
| |
(b) | his employer made minimum payments in respect of his |
| 30 |
employment to a money purchase contracted-out scheme, |
| |
| |
(c) | there was in force a contracting-out certificate issued in |
| |
accordance with this Chapter (as it then had effect) stating |
| |
that the employment was contracted-out employment by |
| 35 |
reference to the scheme.” |
| |
(4) | In subsection (2) for “for the purposes of section 42A” substitute “for the tax |
| |
year in which the week falls as specified in an order made under section 42B |
| |
(as it had effect before the abolition date)”. |
| |
4 (1) | Section 9 (general requirements for certification of schemes) is amended as |
| 40 |
| |
(2) | In subsection (1) (requirements for occupational pension schemes) omit “or |
| |
| |
(3) | Omit subsections (3) and (5) (requirements for money purchase |
| |
occupational schemes and personal pension schemes). |
| 45 |
| |
| |
|
| |
| |
(4) | In subsection (6) (meaning of “relevant requirements”)— |
| |
(a) | in paragraph (a) omit “or, as the case may be, appropriate”; |
| |
(b) | in paragraph (b) omit “or, as the case may be, of being an appropriate |
| |
| |
5 | In section 10 (protected rights and money purchase benefits) in subsection |
| 5 |
(3) (protected rights under rules of personal pension schemes) in paragraph |
| |
(a), for “of minimum contributions” substitute “under section 45(1)”. |
| |
6 | Omit section 12 (determination of basis on which scheme is contracted-out). |
| |
7 | For the heading before section 26, substitute “Requirements for schemes with |
| |
members with protected rights”. |
| 10 |
8 | Before section 26 (persons who may establish scheme) insert— |
| |
“25A | Requirements for schemes with members with protected rights |
| |
(1) | This section applies to— |
| |
(a) | an occupational pension scheme which ceased to be a money |
| |
purchase contracted-out scheme by virtue of section 15(1) of |
| 15 |
the Pensions Act 2007, or |
| |
(b) | a personal pension scheme which ceased to be an appropriate |
| |
scheme by virtue of section 15(1) of that Act. |
| |
(2) | For so long as there are persons who have protected rights under a |
| |
scheme to which this section applies, or who are entitled to any |
| 20 |
benefit giving effect to such rights under it, the scheme must satisfy |
| |
the requirements mentioned in subsection (3). |
| |
(3) | Those requirements are— |
| |
(a) | the requirements imposed by or by virtue of sections 26 to 32; |
| |
| 25 |
(b) | such other requirements as may be prescribed. |
| |
(4) | Regulations made under subsection (3)(b) may contain provision |
| |
framed by reference to whether or not a scheme is a registered |
| |
pension scheme under section 153 of the Finance Act 2004.” |
| |
9 (1) | Section 33 (tax requirements to prevail over certification requirements) is |
| 30 |
| |
(2) | For “26” substitute “25A”. |
| |
(3) | In the sidenote, for “certification requirements” substitute “requirements of |
| |
| |
10 (1) | Section 33A (appropriate schemes: “blowing the whistle”) is amended as |
| 35 |
| |
(2) | In subsection (1) (obligation to report failure to satisfy requirements)— |
| |
(a) | for “an appropriate scheme” substitute “a personal pension scheme |
| |
to which section 25A applies”; |
| |
(b) | for paragraph (a) substitute— |
| 40 |
“(a) | any requirement which, in the case of the scheme, is |
| |
required by section 25A to be satisfied is not |
| |
| |
| |
| |
|
| |
| |
(c) | in paragraph (b) for “appropriate schemes” substitute “personal |
| |
pension schemes to which section 25A applies”. |
| |
(3) | In the sidenote, for “appropriate schemes” substitute “personal pension |
| |
| |
11 (1) | Section 34 (cancellation, variation, surrender and refusal of certificates) is |
| 5 |
| |
(2) | For subsection (1) (regulations to provide for cancellation etc. of contracting- |
| |
out or appropriate scheme certificates) substitute— |
| |
“(1) | Regulations shall provide for the cancellation, variation or surrender |
| |
of a contracting-out certificate, or the issue of a new certificate— |
| 10 |
(a) | on any change of circumstances affecting the treatment of an |
| |
employment as contracted-out employment; or |
| |
(b) | where the certificate was issued on or after the principal |
| |
appointed day, if any employer of persons in the description |
| |
of employment to which the scheme in question relates, or |
| 15 |
the actuary of the scheme, fails to provide HMRC, at |
| |
prescribed intervals, with such documents as may be |
| |
prescribed for the purpose of verifying that the conditions of |
| |
section 9(2B) are satisfied.” |
| |
(3) | In subsection (3) (continued contracting-out of scheme dependent on |
| 20 |
conditions for contracting-out remaining satisfied)— |
| |
(a) | for paragraphs (a) and (b) substitute “by or by virtue of any provision |
| |
of this Part the contracting-out of a scheme in relation to an |
| |
employment depends on the satisfaction of a particular condition”; |
| |
(b) | omit “or, as the case may be, the scheme’s continuing to be an |
| 25 |
| |
(c) | omit “or appropriate scheme”. |
| |
(4) | Omit subsection (5) (circumstances in which HMRC can withhold etc. |
| |
appropriate scheme certificate). |
| |
(5) | In subsection (8) (cancellation etc. of certificates not to have effect from a |
| 30 |
time earlier than when cancellation etc. made) omit “or appropriate scheme |
| |
| |
(6) | After subsection (8) insert— |
| |
“(9) | A reference in this section to a contracting-out certificate does not |
| |
include a reference to a contracting-out certificate issued in respect of |
| 35 |
a money purchase contracted-out scheme.” |
| |
12 (1) | Section 38 (alteration of rules of appropriate schemes) is amended as |
| |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | No alteration of the rules of a personal pension scheme which was an |
| 40 |
appropriate scheme shall be made so as— |
| |
(a) | to affect any of the matters dealt with in sections 26 to 33; or |
| |
(b) | to cause the scheme to take a different permitted form from |
| |
| |
| |
| |
|
| |
| |
(3) | For subsection (5) substitute— |
| |
“(5) | This section has effect in relation to a personal pension scheme for so |
| |
long as there are persons who have protected rights under the |
| |
scheme or who are entitled to any benefit giving effect to such rights |
| |
| 5 |
(4) | In the sidenote, for “appropriate schemes” substitute “personal pension |
| |
| |
13 | In section 42A (reduced rates of Class 1 contributions, and rebates) at the end |
| |
| |
“(8) | For the purposes of this section “the appropriate age-related |
| 10 |
percentage” and “the appropriate flat-rate percentage”, in relation to |
| |
a tax year beginning before the abolition date, are the percentages |
| |
specified as such for that tax year in an order made under section 42B |
| |
(as it had effect prior to that date).” |
| |
14 | Omit section 42B (determination and alteration of rates of contributions, and |
| 15 |
rebates, applicable under section 42A). |
| |
15 | In section 43 (payment of minimum contributions to personal pension |
| |
schemes) at the end insert— |
| |
“(7) | In this section “the earner’s chosen scheme” means the scheme which |
| |
was immediately before the abolition date the earner’s chosen |
| 20 |
scheme in accordance with section 44 (as it had effect prior to that |
| |
| |
16 | Omit section 44 (earner’s chosen scheme). |
| |
17 | In section 45 (amount of minimum contributions) at the end insert— |
| |
“(4) | For the purposes of this section “the appropriate age-related |
| 25 |
percentage”, in relation to a tax year beginning before the abolition |
| |
date, is the percentage (or percentages) specified as such for that tax |
| |
year in an order made under section 45A (as it had effect prior to that |
| |
| |
18 | Omit section 45A (determination and alteration of rates of minimum |
| 30 |
contributions under section 45). |
| |
19 (1) | Section 48A (additional pension and other benefits) is amended as follows. |
| |
(2) | In subsection (1) (effect of reductions and payments for contracted-out |
| |
schemes on earnings factors) in paragraph (a) for “or 42A” substitute “or, in |
| |
the case of a week falling before the abolition date, under section 42A (as it |
| 35 |
| |
(3) | In paragraph (b) of that subsection, for “an amount is paid under section |
| |
45(1)” substitute “in the case of a week falling before the abolition date, an |
| |
amount is paid under section 45(1) (as it then had effect)”. |
| |
20 (1) | Section 50 (powers of HMRC to approve arrangements for scheme ceasing |
| 40 |
to be certified) is amended as follows. |
| |
(2) | In subsection (1) (HMRC may approve arrangements for preservation etc. of |
| |
rights and liabilities under a scheme which ceases to be contracted-out)— |
| |
| |
| |
|
