The Transfer of Employment (Pension Protection) Regulations 2005
| Year | 2005 |
2005 No. 649
PENSIONS
The Transfer of Employment (Pension Protection) Regulations 2005
Made 10th March 2005
Laid before Parliament 16th March 2005
Coming into force 6th April 2005
The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 258(2)(c)(ii) and (7), 315(2) and 318(1) of the Pensions Act 20041and all other powers enabling him in that behalf, by this instrument, which contains regulations made before the end of the period of six months beginning with the coming into force of the provisions by virtue of which they are made2, hereby makes the following Regulations:
Citation, commencement, application and interpretation
1.—(1) These Regulations may be cited as the Transfer of Employment (Pension Protection) Regulations 2005 and shall come into force on 6th April 2005.
(2) These Regulations apply in the case of a person (“the employee”) in relation to whom section 257 of the Act (conditions for pension protection) applies, that is to say a person who, in the circumstances described in subsection (1) of that section, ceases to be employed by the transferor of an undertaking or part of an undertaking and becomes employed by the transferee.
(3) In these Regulations “the Act” means the Pensions Act 2004.
Requirements concerning a transferee’s pension scheme
2.—(1) In a case where these Regulations apply, and the transferee is the employer in relation to a pension scheme which is not a money purchase scheme, that scheme complies with section 258(2)(c)(ii) of the Act (alternative standard for a scheme which is not a money purchase scheme) if it provides either—
(a)
(a) for members to be entitled to benefits the value of which equals or exceeds 6 per cent. of pensionable pay for each year of employment together with the total amount of any contributions made by them, and, where members are required to make contributions to the scheme, for them to contribute at a rate which does not exceed 6 per cent. of their pensionable pay; or
(b)
(b) for the transferee to make relevant contributions to the scheme on behalf of each employee of his who is an active member of it.
(2) In this regulation—
“pensionable pay” means that part of the remuneration payable to a member of a scheme by reference to which the amount of contributions and benefits are determined under the rules of the scheme.
Requirements concerning a transferee’s pension contributions
3.—(1) In a case where these Regulations apply, the transferee’s pension contributions are relevant contributions for the purposes of...
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