UK Act of Parliament
1993
United Kingdom
Pension Schemes Act 1993
At a glance
Enforced by
What's here
2 compliance obligations
Who this Act binds
Plus 1 non-business duty on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part I — Preliminary
Browse 1 other section in this Part — procedural / definitional / commencement
Part II — Administration
Browse 5 other sections in this Part — procedural / definitional / commencement
Part III — Schemes that were contracted-out etc and Effects on Members’ State Scheme Rights ...
Browse 92 other sections in this Part — procedural / definitional / commencement
Issue of contracting-out certificates.
Meaning of “the first abolition date” and “the second abolition date”
Meaning of “contracted-out scheme” and “appropriate scheme” etc.
Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”.
Requirements for certification of schemes: general.
Protected rights and money purchase benefits.
Elections as to employments covered by contracting-out certificates.
Determination of basis on which scheme is contracted-out.
The statutory standard
Reference scheme
Transfer, commutation, etc
Entitlement to benefit
Former salary related contracted-out schemes to comply with GMP requirements
Minimum pensions for earners.
Earner’s guaranteed minimum.
Increase of guaranteed minimum where commencement of guaranteed minimum pension postponed.
Reduction of guaranteed minimum in consequence of pension debit.
Revaluation of earnings factors for purposes of s. 14: early leavers etc.
Minimum pensions for widows and widowers.
Treatment of insignificant amounts.
Discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts.
Transfer of accrued rights.
Commutation, surrender and forfeiture.
Financing of benefits.
Securing of benefits.
Sufficiency of resources.
Conversion of guaranteed minimum pension into other benefits: introduction
The conversion conditions
Actuarial equivalence
Survivors' benefits
Procedural requirements
Transfer out
Powers to amend schemes
Enforcement of GMP conversion conditions
Power for Board to impose conditions as to investments and resources.
Requirements for schemes with members with protected rights
Persons who may establish scheme.
Identification and valuation of protected rights.
Requirements in relation to giving effect to protected rights
Ways of giving effect to protected rights.
Requirements for interim arrangements
Information about interim arrangements
The pension and annuity requirements.
Securing of liability for protected rights.
Investment and resources of schemes.
Suspension or forfeiture.
Discharge of protected rights on winding up: insurance policies
Tax requirements to prevail over requirements of section 31.
Appropriate schemes: “Blowing the whistle”
Cancellation, variation, surrender and refusal of certificates.
Surrender and cancellation of contracting-out certificates: issue of further certificates.
Surrender and cancellation of contracting-out certificates: cancellation of further certificates.
Alteration of rules of contracted-out schemes.
Transfer of liabilities etc: schemes contracted-out on or after 6 April 1997
Alteration of rules of appropriate schemes.
Regulations about relevant gender change cases
General power to make regulations.
Scope of Chapter II.
Reduced rates of Class 1 contributions
Review and alteration of rates of contributions applicable under s. 41.
Reduced rates of Class 1 contributions, and rebates
Determination and alteration of rates of contributions, and rebates, applicable under section 42A
Payment of minimum contributions to personal pension schemes.
Earner’s chosen scheme.
Amount of minimum contributions.
Determination and alteration of rates of minimum contributions under section 45
Money purchase and personal pension schemes: verification of ages
Effect of entitlement to guaranteed minimum pensions on payment of social security benefits.
Retirement in tax year after 5th April 2020
Further provisions concerning entitlement to guaranteed minimum pensions for the purposes of s. 46.
Reduced benefits where minimum payments or minimum contributions paid.
Additional pension and other benefits
Women, married women and widows.
Powers of Inland Revenue to approve arrangements for scheme ceasing to be certified.
Calculation of guaranteed minimum pensions preserved under approved arrangements.
Supervision of former salary related contracted-out schemes
Supervision: former contracted-out schemes.
Supervision: former appropriate personal pension schemes.
Payment of state scheme premiums on termination of certified status.
Provisions supplementary to s. 55.
Elections to pay contributions equivalent premiums.
Amount of premiums payable under s. 55.
Alternative basis for revaluation of earnings factors for calculation of certain premiums.
Effect of payment of premiums on rights.
Deduction of contributions equivalent premium from refund of scheme contributions.
No recovery of state scheme premiums from earners etc.
Further provisions concerning calculations relating to premiums.
Actuarial tables for purposes of calculations relating to premiums.
Inclusion of former and future earners for some purposes of this Chapter.
Power to apply certain provisions to widowers.
Non-payment of contributions equivalent premiums.
Unpaid premiums: supplementary.
Part IIIA — Safeguarded rights
Browse 4 other sections in this Part — procedural / definitional / commencement
Safeguarded rights.
Requirements relating to safeguarded rights.
Reserve powers in relation to non-complying schemes.
Power to control transfer or discharge of liability.
Part IV — Protection for early leavers
Browse 24 other sections in this Part — procedural / definitional / commencement
Scope of Chapter I: the preservation requirements.
Interpretation.
Basic principle as to short service benefit.
No discrimination between short service and long service beneficiaries.
Form of short service benefit and its alternatives.
Computation of short service benefit.
Credits.
Pension increases.
Assignment, surrender and commutation of benefit.
Forfeiture, etc.
Charges, liens and set-offs.
Power to modify ss. 77 to 79 as respects alternative benefits.
Discharge of liability where short service or alternative benefits secured by insurance policies or annuity contracts.
Supplementary regulations.
Scope of Chapter II.
Basis of revaluation.
Revaluation not to apply to substituted benefit.
Supplementary provisions.
General protection principle.
The relevant sum.
The appropriate addition.
The later earnings addition.
Special provision where employment continues after it ceases to be contracted-out by reference to scheme.
Supplementary provisions.
Part IVA — Requirements relating to pension credit benefit
Scope of Chapter I.
Amended 1 timeInterpretation.
Amended 1 timeBasic principle as to pension credit benefit.
Amended 1 timeForm of pension credit benefit and its alternatives.
Amended 1 timeDischarge of liability where pension credit or alternative benefits secured by insurance policies or annuity contracts.
Amended 1 timePower to give transfer notice.
Amended 1 timeRestrictions on power to give transfer notice.
Amended 1 timeBenefits other than money purchase: statements of entitlement.
Amended 1 timeCalculation of cash equivalents.
Amended 1 timeTime for compliance with transfer notice.
Amended 1 timeWithdrawal of transfer notice.
Amended 1 timeVariation of the amount required to be used.
Amended 1 timeEffect of transfer on trustees’ duties.
Amended 1 timeMatters to be disregarded in calculations.
Amended 1 timeProhibition on excluding transfers of some rights without others etc
Amended 1 timeService of notices.
Amended 1 timeInterpretation of Chapter II.
Amended 1 timePower to modify Chapter II in relation to hybrid schemes.
Amended 1 timePart V — Annual Increases of Pensions in Payment
Annual increase of guaranteed minimum pensions.
Amended 9 timesRequirement as to resources for annual increase of guaranteed minimum pensions.
Amended 3 timesBrowse 7 other sections in this Part — procedural / definitional / commencement
Scope of Chapter I: annual increase of certain occupational pensions.
Annual increase of later service component.
Annual increase of earlier service component where scheme is in surplus.
Proportional increase where first period is less than 12 months.
Restriction on increase where member is under 55.
Application of Chapter I to pensions not attributable to pensionable service.
No payments to employers from non-complying schemes.
Part VI — Further Requirements for Protection of Scheme Members
Voluntary contributions.
Amended 1 timeMonitoring of employers’ payments to personal pension schemes.
Amended 1 timeObtaining information for purposes of section 111A and corresponding Northern Ireland legislation.
Amended 1 timeRestrictions on investment of scheme’s resources in employer-related assets.
Amended 1 timeDisclosure of information about schemes to members etc.
Amended 16 timesDisclosure of information about transfers etc
Amended 16 timesOccupational pension schemes: requirements to refer members to guidance etc
Amended 16 timesAdditional documents for members etc. and Registrar.
Amended 1 timePowers as respects failure to comply with information requirements.
Amended 2 timesRegulations as to auditors.
Amended 1 timeEqual access requirements.
Amended 2 timesBrowse 1 other section in this Part — procedural / definitional / commencement
Part VII — Insolvency of employers
Interpretation of Chapter II.
Amended 19 timesDuty of Secretary of State to pay unpaid contributions to schemes.
Amended 9 timesComplaint to industrial tribunal.
Amended 1 timeTransfer to Secretary of State of rights and remedies.
Amended 4 timesPriority in bankruptcy etc.
Amended 1 timeBrowse 5 other sections in this Part — procedural / definitional / commencement
Requirement for independent trustee where employer becomes insolvent etc.
Members’ powers to apply to court to enforce duty under s. 119.
Further provisions as to appointment and powers of independent trustees.
Duty of insolvency practitioner or official receiver to give information to scheme trustees.
Certification of amounts payable under s. 124 by insolvency officers.
Part VIII — Relationship between requirements and scheme rules
Overriding requirements.
Amended 13 timesExtra-statutory benefits.
Amended 2 timesRelationship of preservation requirements and scheme rules.
Amended 1 timeDuty to bring schemes into conformity with indirectly-applying requirements.
Amended 3 timesAdvice of the Board as to conformity of schemes with requirements.
Amended 2 timesDetermination of questions whether schemes conform with requirements.
Amended 4 timesBrowse 1 other section in this Part — procedural / definitional / commencement
Part IX — Modification and winding up of schemes
Applications to the Board to modify schemes (other than public service schemes).
Amended 2 timesOther functions of the Board as respects modification of schemes.
Amended 2 timesEffect of orders under ss. 136 and 139.
Amended 2 timesPowers of the Board to wind up schemes.
Amended 1 timeWinding up of public service schemes.
Amended 1 timeDeficiencies in the assets of a scheme on winding up.
Amended 2 timesBrowse 3 other sections in this Part — procedural / definitional / commencement
Part X — Investigations: the Pensions Ombudsman
The Pensions Ombudsman.
Amended 4 timesDeputy Pensions Ombudsmen
Amended 4 timesFunctions of the Pensions Ombudsman.
Amended 22 timesDeath, insolvency or disability of authorised complainant.
Amended 4 timesStaying court proceedings where a complaint is made or a dispute is referred.
Amended 6 timesProcedure on an investigation.
Amended 35 timesInvestigations: further provisions.
Amended 2 timesDeterminations of the Pensions Ombudsman.
Amended 17 timesInterest on late payment of benefit
Amended 17 timesPower to make special county court rules.
Amended 2 timesPart XI — General and miscellaneous provisions
Power to modify certain provisions of this Act.
Amended 11 timesApplication of enactments as respects personal pension schemes.
Amended 1 timeRequirement to give information to the Secretary of State or the Board for the purposes of certain provisions.
Amended 6 timesInformation for purposes of contracting-out.
Amended 7 timesDisclosure of information between government departments etc.
Amended 20 timesOther disclosures by the Secretary of State.
Amended 20 timesInalienability of guaranteed minimum pension ....
Amended 22 timesNo forfeiture on bankruptcy of rights under personal pension schemes.
Amended 22 timesProvisions excluding Chapter II of Part VII to be void.
Amended 1 timeExemption of certain schemes from rule against perpetuities.
Amended 7 timesCrown employment.
Amended 11 timesApplication of certain provisions to cases with foreign element.
Amended 11 timesReciprocity with other countries.
Amended 3 timesApplication of general provisions relating to administration of social security.
Amended 7 timesBreach of regulations.
Amended 3 timesOffence in connection with the Registrar
Amended 3 timesDecisions and appeals
Amended 23 timesQuestions arising in proceedings.
Amended 9 timesReports by Inland Revenue.
Amended 9 timesReview of the Board’s determinations.
Amended 2 timesReferences and appeals from the Board.
Amended 1 timeGrants to advisory bodies etc
Amended 2 timesLevies towards certain expenditure
Amended 14 timesFees for official services to schemes.
Amended 1 timeGeneral financial arrangements.
Amended 20 timesBrowse 4 other sections in this Part — procedural / definitional / commencement
Part XII — Supplementary Provisions
Trustees and managers of schemes.
Amended 14 timesLinked qualifying service.
Amended 9 timesGeneral interpretation.
Amended 62 timesInterpretation of references to money purchase contracted-out schemes or appropriate schemes after abolition date
Amended 62 timesMoney purchase benefits: supplementary
Amended 62 timesOrders and regulations (general provisions).
Amended 3 timesSub-delegation.
Amended 10 timesConsultations about other regulations.
Amended 19 timesParliamentary control of orders and regulations.
Amended 11 timesNorthern Ireland Constitution Act 1973: “reserved matters”.
Amended 1 timeRepeals.
Amended 3 timesTransitional provisions and savings.
Amended 1 timeProspective and consequential amendments.
Amended 1 timeExtent.
Amended 5 timesBrowse 5 other sections in this Part — procedural / definitional / commencement
Normal pension age.
Insurer and long-term insurance business
Consultation with Social Security Advisory Committee about regulations under s. 36(6).
Transitory modifications.
Short title and commencement.
Schedules
(1) This Schedule applies to any sum owed on account...
- Pay NI contributions equivalent premium in priority when insolvent
The requirement of the Social Security Pensions Act 1975 that...
Other duties (1) — Crown / regulator
- Contract-out requirement for occupational pension schemes repealed Crown / Minister / Government department
Browse 120 other Schedules — structural / supplementary
The following provisions of this Schedule shall have effect as...
(1) The Secretary of State may make regulations generally as...
Subject to regulations made by the Secretary of State under...
The quorum of the Board and the arrangements relating to...
The validity of the proceedings of the Board shall not...
(1) Where the Board give a decision on any matter...
(1) The Secretary of State may make available to the...
Regulations made by the Secretary of State may authorise the...
The fixing of the common seal of the Board shall...
A document purporting to be duly executed under the seal...
Subject to the following provisions, a person shall hold and...
A person may at any time resign office as chairman,...
(1) If a member of the Board becomes or ceases...
(1) If the Secretary of State is satisfied that a...
The expenses of the Board, to such an amount as...
There may be paid as part of the expenses of...
The Secretary of State may with the consent of the...
Where— (a) a person ceases to be a member of...
(1) In relation to employments which are or at any...
(1) Subject to sub-paragraph (2), regulations may enable the Inland...
Provision may be made by regulations for requiring an employer...
(1) Regulations may modify the provisions of Part III (other...
(1) Regulations may make provision for requiring persons to furnish...
(1) Regulations may modify Chapters I and III of Part...
(1) This paragraph applies to the following classes of employments,...
Regulations may make provision— (a) for any incidental matters connected...
(1) Subject to the following provisions, paragraph 5 applies in...
(1) The final salary method is to add to the...
(1) For the purposes of paragraph 1 the Secretary of...
(1) This paragraph applies to the pension or other benefit...
(1) The average salary method is to revalue the member’s...
The cash balance method of revaluing a benefit is to...
The flat rate method is to revalue the benefits which...
(1) Subject to sub-paragraphs (2) and (3), the money purchase...
This Schedule applies to any sum owed on account of...
(1) This Schedule applies to any sum owed on account...
(1) In this Schedule— (a) in its application in England...
In this Schedule “the repealed enactments” means the enactments repealed...
(1) Where in the tax year 1989-90 the trustees or...
(1) Subject to sub-paragraph (2), if immediately before paragraph 7...
If immediately before 13th July 1990— (a) there was in...
Without prejudice to section 16 of the Interpretation Act 1978—...
(1) Where an earner’s earnings paid in any period before...
Without prejudice to paragraph 3, in any case where—
(1) If before 21st July 1989 an earner ceased to...
(1) Regulations may provide that any provision of this Act...
The repeal by this Act of section 26 of the...
The repeal of subsection (2) of section 17A of the...
(1) The substitution of this Act for the repealed enactments...
Without prejudice to any express provision in this Act, where...
The repeals made by this Act do not affect the...
The repeal by this Act of section 7 of the...
Where— (a) this Act repeals an enactment relating to the...
(1) The repeal or revocation by this Act of an...
The repeal or revocation by this Act of an enactment...
Any document made, served or issued after this Act comes...
An occupational pension scheme which— (a) at any time before...
Any document the contents of which are in terms corresponding...
In section 6(1A)(a) of the Equal Pay Act 1970 for...
In Schedule 5 to the Social Security Act 1989—
The following provisions of this Act shall cease to have...
In paragraph 10 of Schedule 1 to the Parliamentary Commissioner...
In section 653(3) of the Rent Act 1977 for the...
(1) In section 11(4)(b) of the Employment Protection (Consolidation) Act...
In sections 55(2)(b)(ii) and 58(2)(ii) of the Justices of the...
In section 33A(9) of the Judicial Pensions Act 1981—
In Schedule 1A to that Act— (a) in paragraph 1...
In the definition of “relevant enactment” in section 4(5) of...
In Schedule 2 to the Companies Act 1985—
In paragraph 4 of Schedule 3 to the Bankruptcy (Scotland)...
In section 386(3) of and paragraph 8 of Schedule 6...
In section 7 of the Coal Industry Act 1987 for...
In paragraph 3 of Schedule 4 to the Administration of...
(1) In section 464(5)(b) of the Income and Corporation Taxes...
In paragraph 4 of Schedule 1 to the Official Secrets...
In paragraph 11(2)(b) of Schedule 7 to the Finance Act...
In paragraph 5(1) of Schedule 14 and in paragraph 5(1)...
In section 3(1)(c)(ii) of the Social Security Administration Act 1992...
At the end of section 70(3) of that Act there...
In section 110(8) of that Act for paragraphs (d) and...
In section 148(7) of that Act for the words “section...
In section 150 of that Act— (a) in subsection (1)(e),...
In section 151 of that Act— (a) in subsection (4),...
In section 6(1A)(a) of the Equal Pay Act 1970—
In section 155(7) of that Act, for the words “the...
In section 191 of that Act— (a) the following definitions...
In section 1(3) of the Social Security Contributions and Benefits...
In section 8(1) of that Act for the words “section...
In section 9(4) of that Act for the words “section...
In section 20(3) of that Act for the words from...
In section 23(2) of that Act after the words “the...
In section 34(5) of that Act for the words “section...
In section 44(8) of that Act for the words “section...
In section 47(3) of that Act for the words “section...
In section 24(2) of and paragraph 3 of Schedule 2...
In section 50(2) of that Act for the words “section...
In section 174 of that Act, in the definition of...
In Schedule 5 to that Act— (a) in paragraph 2(6)...
In paragraph 3 of Schedule 7 to that Act—
In the Tribunals and Inquiries Act 1992—
In section 2(4)(b) of the Social Security Act 1993—
(1) In section 10(8) of the Judicial Pensions and Retirement...
In section 17(1) of the Pensions (Increase) Act 1971, in...
In section 1(9) of the Superannuation Act 1972, in the...
In sections 9(6) and 10(6) of that Act, in the...
In section 13(15), in the definition of “judicial pension scheme”,...
(1) In section 59 of the Social Security Pensions Act...
(1) If— (a) no date has been appointed as the...
In section 163, subsection (9) shall be omitted.
(1) Sections 102 to 107 shall have effect only for...
(1) In section 13(2)(a), the words from “and does” onwards...
In section 111, subsection (3) shall be omitted.
In section 162(4)(c)(i), for the words “section 65A” there shall...
(1) In section 146, subsection (3) shall be omitted.
Schedule n9 para.1
The following abbreviations are used in the Table:— Acts of...
The abbreviation “Law Com Rec No.” followed by a number...
The entry “drafting” indicates a provision of a mechanical or...
The Table does not show the effect of transfer of...
The Table does not show the effect of the saving...
Other sections — not classified into a Part
These sections exist in the Act but the contents-of-Parts walker did not place them under a Part. Likely amendments or sections inserted out of the original Part structure.
Withdrawal of applications.
Amended 4 timesProhibition on excluding future accruals etc
Amended 4 timesMeaning of “scheme rules”: occupational pension schemes
Amended 4 timesMeaning of “normal pension age” in this Chapter
Amended 4 timesInterpretation of Chapter
Amended 4 timesSupplementary provisions.
Amended 1 timeScope of Chapter 5
Amended 1 timeRight to cash transfer sum and contribution refund
Amended 1 timeNotification of right to cash transfer sum or contribution refund
Amended 1 timeExercise of right under section 101AB
Amended 1 timePermitted ways of using cash transfer sum
Amended 1 timeCalculation of cash transfer sum and contribution refund
Amended 1 timeDuties of trustees or managers following exercise of right
Amended 1 timePowers of trustees or managers where right not exercised
Amended 1 timeRights under section 101AB: further provisions
Amended 1 timeBrowse 12 other unclassified sections
Scope of Chapter 1.
Right to statement of entitlement: benefits other than money purchase
Right to cash equivalent.
Ways of taking right to cash equivalent.
Further provisions concerning exercise of option under s. 95.
Calculation of cash equivalents.
Designation of funded public service defined benefits schemes
Designation of funded public service defined benefits schemes: Scotland
Reduction of cash equivalents in case of designated schemes
Loss of right to cash equivalent
Trustees’ duties after exercise of option.
Trustees' further duties: collective money purchase benefits
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- Potential remediation for past alterations to salary-related contracted-out pension schemes (opens in a new tab) from TPR Detailed Guidance
- When schemes are subject to the requirements (opens in a new tab) from TPR Detailed Guidance
- Material detriment, employer insolvency and employer resources (opens in a new tab) from TPR Detailed Guidance
- DB to DC transfers and conversions (opens in a new tab) from TPR Detailed Guidance
- Prosecution policy (opens in a new tab) from TPR Detailed Guidance
- Vedius Pension Trust: Determination notice (opens in a new tab) from TPR Detailed Guidance
- Pakistan International Airlines Retirement and Death Benefits Scheme: Determination notice (opens in a new tab) from TPR Detailed Guidance
- London Quantum Retirement Benefit Scheme: Final notice (opens in a new tab) from TPR Detailed Guidance
- Janda Trust: Determination notice (opens in a new tab) from TPR Detailed Guidance
- Donington MC Pension Scheme, Dominator 2012 Pension Scheme and Commando 2012 Pension Scheme - Determination notice (opens in a new tab) from TPR Detailed Guidance
- ... and 4 more
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
The Pensions Regulator
Regulates workplace pensions, defined benefit schemes, and master trusts. All employers must auto-enrol eligible workers into a workplace pension. Enforces employer duties …
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Browse legislation
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Regulators
Learn more about the bodies that enforce this legislation.