Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations 1987
| Jurisdiction | UK Non-devolved |
| Citation | SI 1987/1113 |
1987 No. 1113
PENSIONS
The Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations 1987
Made 25th June 1987
Laid before Parliament 6th July 1987
The Secretary of State for Social Services, in exercise of the powers conferred upon him by section 168(1) of, and Schedule 20 to, the Social Security Act 19751, section 29(2A) and (2C) of the Social Security Pensions Act 19752and sections 4 and 84(1) of the Social Security Act 19863, 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 (Abatement of Benefit) Regulations 1987, and regulations 2 and 3 and this regulation shall come into force on 4th January 1988, and regulations 4 and 5 on 6th April 1988.
(2) In these Regulations —
“minimum contributions” has the same meaning as in the Social Security Act 1986;
“the Pensions Act” means the Social Security Pensions Act 1975;
“rebate percentage” has the same meaning as in section 3(1) of the Social Security Act 1986;
“relevant year” has the same meaning as in section 35 of the Pensions Act;
“the Transfer Payment Regulations” means the Protected Rights (Transfer Payment) Regulations 19874(d);
and other expressions have the same meaning as in the Pensions Act.
(3) In these Regulations, unless the context otherwise requires, any reference —
(a)
(a) to a numbered regulation is to the regulation in these Regulations bearing that number;
(b)
(b) in a regulation to a numbered paragraph is to the paragraph of that regulation bearing that number.
Guaranteed minimum pension to which earner is treated as entitled after minimum contributions have been paid
2.—(1) Where, in relation to any tax week, except a tax week such as is mentioned in paragraph (3), minimum contributions have been paid in respect of an earner, sections 16(2B), 28(7A) and 59(1A) of the Social Security Act 19755and section 29 of the Pensions Act shall have effect in relation to him, as from the date on which he reaches pensionable age, as if he were entitled to a guaranteed minimum pension, arising from that tax week —
(a)
(a) at the rate described in paragraph (2) if that tax week fell within a tax year which was a relevant year in relation to that earner; and
(b)
(b) at a nil rate if it did not.
(2) The rate referred to in paragraph (1)(a) is the same rate as that of the guaranteed minimum pension to which he would have been entitled if —
(a)
(a) he had been employed in that tax week in employment which was contracted-out employment by virtue of section 32(2)(a) and (b) of the Pensions Act;
(b)
(b) his earnings factor for the relevant year which included that tax week, so far as derived from earnings (being earnings such as are mentioned in section 35(1) of the Pensions Act upon which primary Class 1 contributions have been paid or treated as paid) from that employment in that tax week, had been equal to the amount of which the minimum contributions referred to in paragraph (1) (less any part of them paid under section 3(1)(b) of the Social Security Act 1986) are the rebate percentage; and
(c)
(c) the occupational pension scheme by reference to which that employment was contracted-out had made no provision under section 35(7) of the Pensions Act.
(3) In circumstances where, in relation to any tax week —
(a)
(a) minimum contributions have been paid in respect of an earner; and
(b)
(b) in respect of the protected rights which derived from them a transfer payment has been made in accordance with regulations 2(5) or (6) and 3(b) of the Transfer Payment Regulations,
sections 16(2B), 28(7A) and 59(1A) of the Social Security Act 1975 and section 29 of the Pensions Act shall have effect in relation to him, as from the date on which he reaches pensionable age, as if he were entitled to a guaranteed minimum pension arising from that tax week at a nil rate.
Guaranteed minimum pension to which earner’s widow or widower is treated as entitled after minimum contributions have been paid
3.—(1) Where, in relation to any tax week, except a tax week such as is mentioned in paragraph (3), minimum contributions have been paid in respect of an earner, sections 16(2B), 28(7A) and 59(1A) of the Social Security Act 1975 and section 29 of the Pensions Act shall, in the circumstances specified in paragraph (2), have effect in relation to the earner’s widow or widower —
(a)
(a) if the earner died after reaching pensionable age, as if the widow or widower were entitled to a guaranteed minimum pension at a rate equal to one-half of the rate described in regulation 2(2); and
(b)
(b) if the earner died before reaching pensionable age, as if the widow or widower were entitled to a...
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