UK Statutory Instrument SI 1996/1172 United Kingdom

Occupational Pension Schemes (Contracting-out) Regulations 1996

Read it on legislation.gov.uk (opens in a new tab)
Status
In Force
Penalty ceiling
Regulated

Does it bind you?

Business-side roles with duties under this instrument.

Any Person14 Employer9 Trustee1

Plus 5 duties on the regulator, Crown ministers and public bodies — folded into the section list below.

Other Acts binding the same actors

If a role above is yours, these are the other instruments that most often bind it.

Any Person — also bound by 2340 other Acts
Employer — also bound by 682 other Acts
TULRCA 1992 72 duties
Trustee — also bound by 104 other Acts
Charities Act 2011 27 duties

What it requires

Regulations creating concrete business duties or carrying penalties, grouped as the instrument is structured. Titles link to the source text — blue means you’re leaving for legislation.gov.uk.

Part 1

PRELIMINARY

0 of 1 section shown
1 other section in this Part — procedural and definitional
s.001 Citation, commencement and interpretation.
Part 2

CERTIFICATION OF EMPLOYMENTS

7 of 15 sections shown
s.002 Making of elections for the issue of contracting-out certificates Regulated
  • Follow procedure to elect for a contracting-out certificateEmployer
s.003 Notices by employers of intended election. Regulated
  • Give notice before electing to contract your pension scheme out of the state systemEmployer
s.004 Consultation with trade unions. Regulated
  • Consult recognised trade unions about contracting-out pension changesEmployer
s.006 Information to be included in an election. Regulated
  • Include all required particulars and written confirmations in contracting-out electionEmployer
s.008 Issue of contracting-out certificates. Regulated
Other duties (1) — Crown / regulator
  • Secretary of State must issue contracting-out certificates to employersCrown / Minister / Government department
s.010 Special provision with regard to elections for the issue, variation or surrender of certificates where (before the second abolition date) the employment remains contracted-out. Regulated
  • Notify employees and other parties when using special election procedureEmployer
s.015 Further information and change of circumstances. Regulated
  • Provide scheme information and notify changes to the Secretary of StateEmployer
8 other sections in this Part — procedural and definitional
s.005 Time for making an election.
s.007 Amendment of an election.
s.009 Making of elections by employers for the variation or surrender of contracting-out certificates.
s.011 Special circumstances in which the Secretary of State may determine earners to have been in contracted-out employment
s.012 Special provision for holding companies and subsidiaries
s.013 Special provision for public service pension schemes.
s.014 Special provision for holders of pensionable judicial office.
s.016 Requirement to confirm relevant requirements are satisfied.
Part 3

SALARY-RELATED CONTRACTED-OUT SCHEMES

3 of 14 sections shown
s.022 Each part of scheme to comply with section 12A of the 1993 Act. Regulated
Other duties (1) — Crown / regulator
  • Secretary of State must verify contracted-out scheme complies with section 12A for each employment categoryCrown / Minister / Government department
s.023 Requirements for meeting the statutory standard. Regulated
  • Ensure actuary follows strict rules when certifying broad equivalenceAny Person
s.028 Service in a salary-related contracted-out scheme that does not qualify for further benefits Regulated
  • Treat employee service as contracted-out even if scheme benefit limit reachedEmployer
11 other sections in this Part — procedural and definitional
s.017 Further contracting-out conditions for salary-related contracted-out schemes
s.018 Requirement as to resources of the scheme.
s.019 Lump sum benefits and salary-related contracted-out schemes.
s.020 Payment of a lump sum instead of a pension payable under a relevant scheme
s.020 Suspension of section 9(2B) rights
s.021 Payable age in salary-related contracted-out schemes.
s.024 Circumstances when actuary other than actuary appointed under section 47 of the 1995 Act may certify broad equivalence.
s.025 Requirements for a reference scheme.
s.026 Reference scheme: circumstances in which widows', widowers' or surviving civil partners' pensions need not be payable
s.027 Modification applying to public service pension schemes.
s.029 Schemes which cannot be certified under section 9(2B) of the 1993 Act.
Part 4

MONEY PURCHASE CONTRACTED-OUT SCHEMES

2 of 11 sections shown
s.035 Manner of payment of the age-related payment. Regulated
Other duties (1) — Crown / regulator
  • Secretary of State must make age-related payments by automated credit transfer or approved methodCrown / Minister / Government department
s.038 Adjustment of the amount of the age-related payment. Regulated
Other duties (1) — Crown / regulator
  • Secretary of State must round age-related payments to nearest pennyCrown / Minister / Government department
9 other sections in this Part — procedural and definitional
s.030 Further contracting-out requirements for money purchase contracted-out schemes
s.031 Deduction of minimum payments from earnings.
s.032 Minimum payments to be made by employers to trustees.
s.033 Calculation of minimum payments.
s.034 Manner of calculation or estimation of earnings.
s.036 Verification of age.
s.037 Circumstances in which the age-related payments are not to be paid.
s.039 Circumstances in which schemes may change mode of contracting-out.
s.040 Schemes which may not be contracted-out under section 9(3) of the 1993 Act.
Part 5

FURTHER REQUIREMENTS (ALL SCHEMES) AND OVERSEAS SCHEMES

1 of 8 sections shown
s.045 Approval of arrangements for schemes ceasing to be contracted-out. Regulated
  • Meet conditions for Secretary of State approval when ceasing contracting-outTrustee
7 other sections in this Part — procedural and definitional
s.041 Provision of information as to resources.
s.042 Alteration of rules of contracted-out schemes.
s.043 Termination of periods of contracted-out employment.
s.044 Notifications to the Secretary of State.
s.046 Supervision of schemes that have ceased to contract out before the second abolition date.
s.047 Circumstances in which the Secretary of State may vary or cancel a contracting-out certificate.
s.048 Special provision for overseas schemes.
Part 6

RESTORATION OF STATE SCHEME RIGHTS

0 of 7 sections shown
7 other sections in this Part — procedural and definitional
s.049 Insolvent schemes.
s.050 Member to be informed of the option to restore state scheme rights.
s.050 Persons to be regarded as members
s.051 Contributions equivalent premiums
s.052 Payment of a contributions equivalent premium.
s.053 Payment in lieu of benefit and delay in refund for the purposes of employer’s right of recovery.
s.054 Refund of a contributions equivalent premium.
Part 7

GUARANTEED MINIMUM PENSIONS

1 of 17 sections shown
s.069 Conversion of guaranteed minimum pensions into other benefits: survivors’ benefits Regulated
  • Provide survivor benefits after converting guaranteed minimum pensionsEmployer
16 other sections in this Part — procedural and definitional
s.055 Scheme rules about guaranteed minimum pensions
s.056 Special provision for revaluation of guaranteed minimum pensions secured by insurance policies or annuity contracts.
s.057 Circumstances for the purposes of section 17(6) of the 1993 Act in which widower’s, widow’s or surviving civil partner's guaranteed minimum pension is to be payable.
s.058 Period for the purposes of section 17(6) of the 1993 Act for which widower’s, widow’s or surviving civil partner's guaranteed minimum pension is to be payable.
s.059 Statutory references to persons entitled to guaranteed minimum pensions application to widowers, widows of female earners and surviving civil partners
s.060 Payment of a guaranteed minimum pension as a lump sum
s.061 Suspension and forfeiture of guaranteed minimum pensions.
s.062 Fixed rate revaluation of guaranteed minimum pensions for early leavers.
s.063 Provision of information about guaranteed minimum pensions.
s.064 Meaning of expression “connected employer".
s.065 Modification of section 16 of the 1993 Act.
s.066 Circumstances in which the modifications to the 1993 Act set out in regulation 65 apply.
s.067 Modification of section 51(1) of the 1993 Act in relation to revaluation and schemes which have ceased to be contracted-out.
s.068 Additional modifications relating to transfers and increases of earnings factors by 12 per cent..
s.069 Miscellaneous provisions affecting section 51 of the 1993 Act.
s.069 Conversion of guaranteed minimum pensions into other benefits: actuarial equivalence
Part 8

TRANSITIONAL ARRANGEMENTS AND SAVINGS

1 of 10 sections shown
s.076 Prevention of recovery by employers of Class 1 contributions where certificate cancelled under section 36(3) of the 1993 Act. Regulated
  • Employers must not recover shortfall NI contributions after certificate cancelledEmployer
9 other sections in this Part — procedural and definitional
s.070 Transitional arrangements for certification of schemes.
s.071 Elections for replacement certificates by salary-related schemes during transitional period.
s.072 Transitional requirements as to sufficiency of resources of salary-related schemes.
s.073 Transitional arrangements and savings for salary-related schemes which have begun winding up before the principal appointed day.
s.074 Transitional arrangements in relation to the powers of the Secretary of State to approve arrangements for schemes ceasing to contract out before the principal appointed day.
s.075 Transitional modifications to sections 35 and 36 of the 1993 Act.
s.076 Transitional arrangements for schemes contracted-out under section 9(2) of the 1993 Act to become contracted-out under section 9(3) of that Act
s.076 Former requirements for consent for alterations of rules
s.077 Savings in respect of State Scheme Premiums.
Part 9

REVOCATIONS

0 of 1 section shown
1 other section in this Part — procedural and definitional
s.078 Revocations.
Schedules

Schedules

14 of 17 shown
s.sch003 The actuary must complete a reference scheme test certificate. Regulated
  • Your scheme's actuary must complete a reference scheme test certificateAny Person
s.sch003 The actuary must use any information about the earner’s remuneration... Regulated
Other duties (1) — Crown / regulator
  • Actuary must use latest relevant salary data for reference scheme testStatutory regulator
s.sch003 (1) This paragraph applies where, on the effective date, the... Regulated
  • Actuary must use estimated membership data for new pension scheme comparisonsAny Person
s.sch003 (1) The pensions provided under the scheme for the purposes... Regulated
  • Actuary must use specified assumptions for pension accrual calculationAny Person
s.sch003 (1) For the purposes of carrying out the comparison under... Regulated
  • Actuary must use funding assumptions from statement of funding principlesAny Person
s.sch003 (1) For the purposes of carrying out the comparison under... Regulated
  • Actuary must compare survivor pensions with reference scheme before certifyingAny Person
s.sch003 (1) Subject to sub-paragraph (2), this paragraph applies in each... Regulated
  • Scheme actuary must notify if changes prevent a reference scheme test certificateAny Person
s.sch003 The reference scheme test certificate must— (a) certify whether in... Regulated
  • Actuary must certify whether pension scheme meets the statutory standardAny Person
s.sch003 The actuary must— (a) send the completed reference scheme test... Regulated
  • Actuary must send reference scheme test certificate to HMRC and employerAny Person
s.sch003 Where the actuary is sending the first reference scheme test... Regulated
  • Actuary must inform employer and trustees about contracting-out guidance and certificate dutiesAny Person
s.sch003 (1) Where the employer asks the actuary to advise whether... Regulated
  • Actuary must inform trustees when employer asks for statutory standard adviceAny Person
s.sch003 Where the scheme calculates pensions by different methods for different... Regulated
  • Actuary must assess and certify pension methods as equivalent to reference schemeAny Person
s.sch003 The actuary must not complete a reference scheme test certificate... Regulated
  • Actuary must not certify pension scheme if average value is too lowAny Person
s.sch003 Where an employer asks for a separate reference scheme test... Regulated
  • Actuary must provide separate reference scheme test certificate for your employees when requestedAny Person
3 other schedules
s.sch003 Where— (a) the actuary is satisfied that the information about...
s.sch003 In this Schedule— “accrual rate” means the rate at which,...
s.sch003 Where— (a) an employer has two or more schemes, and...

Duty extraction and severity labels are Guvnor’s analysis of the instrument, not the instrument itself. Always verify against the linked source text.