Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987
| Jurisdiction | UK Non-devolved |
| Citation | SI 1987/1111 |
| Year | 1987 |
1987 No. 1111
PENSIONS
The Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987
Made 25th June 1987
Laid before Parliament 6th July 1987
Coming into force 4th January 1988
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 52 of and paragraph 6 of Schedule 2 to the Social Security Pensions Act 19752and sections 5(4), (7), (8), (10) and (14) 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 Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987 and shall come into force on 4th January 1988.
(2) In these Regulations, unless the context otherwise requires—
“the Act” means the Social Security Act 1986;
“administrators”, in relation to a personal pension scheme, means the trustees or, if there are no trustees, the managers (except any trustee or manager who is resident outside the United Kingdom, or which, being a company, does not have its registered office in the United Kingdom), and any person who is resident in the United Kingdom, or which, being a company, has its registered office in the United Kingdom, who or which is authorised to act on behalf of the trustees, or, if there are no trustees, on behalf of the managers;
“appropriate scheme” shall be construed in accordance with Part I of the Act;
“the Board” means the Occupational Pensions Board;
“child benefit” has the same meaning as in the Child Benefit Act 19754;
“pensionable age” means, in the case of a man, 65, and in the case of a woman, 60;
“premium” means personal pension protected rights premium;
“scheme” means personal pension scheme;
“trustees”, in relation to a scheme which is not set up or established under a trust, means the managers of the scheme;
and other expressions have the same meaning as in the Act.
(3) In these Regulations, except in so far as 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; and
(c)
(c) in a paragraph to a lettered sub-paragraph is to the sub-paragraph of that paragraph bearing that letter.
Manner of calculation and verification of cash equivalents mentioned in section 5(8) and (10)(a)(i) of the Act
2.—(1) Except in a case to which paragraph (3) applies, the cash equivalent mentioned in section 5(8) of the Act of protected rights (being those rights under a scheme, which has ceased to be an appropriate scheme, whose cash equivalent is to be the amount of a personal pension protected rights premium) shall be calculated and verified—
(a)
(a) in such manner as may be approved in particular cases by the trustees of the scheme, and
(b)
(b) by adopting methods consistent with the requirements of Schedule 1 to the Act.
(2) Except in a case to which paragraph (3) applies, the cash equivalent mentioned in section 5(10)(a)(i) of a person’s rights (being those rights under a scheme, which has ceased to be an appropriate scheme, whose cash equivalent is to be used to supplement a personal pension protected rights premium) shall be calculated and verified in such manner as may be approved in particular cases by the trustees of the scheme.
(3) In a case where the rights under a scheme mentioned in paragraph (1) or (2) fall, either wholly or in part, to be valued in a manner which involves making estimates of the value of benefits, the cash equivalent of those rights shall be calculated and verified—
(a)
(a) in such manner as may be approved in particular cases by—
(i) a Fellow of the Institute of Actuaries, or
(ii) a Fellow of the Faculty of Actuaries, or
(iii) a person with other actuarial qualifications who is approved by the Secretary of State, at the request of the trustees of the scheme in question, as being a proper person to act for the purposes of these regulations in connection with that scheme,
and in this regulation “actuary” means any person such as is referred to in head (i), (ii) or (iii) of this sub-paragraph; and
(b)
(b) by adopting methods and making assumptions which—
(i) if not determined by the trustees of the scheme in question, are notified to them by an actuary, and
(ii) are certified by an actuary to the trustees of the scheme as being consistent with “Retirement Benefit Schemes—Transfer Values (GN11)” published by the Institute of Actuaries and the Faculty of Actuaries and current at the date of the calculation, and, in the case of protected rights, as being consistent with the requirements of Schedule 1 to the Act.
Circumstances in which a premium is not payable
3.—(1) A premium shall not be payable—
(a)
(a) in a case where the protected rights in question are in respect of an earner who has died and either—
(i) the earner is not survived by a qualifying widow or widower, or
(ii) the earner is survived by a qualifying widower and the earner or the widower or both were under pensionable age when the earner died;
or
(b)
(b) in a case where the person in respect of whom it otherwise would be payable is not treated, under section 4 of the Act or under section 29(2) or (2A) of the Social Security Pensions Act 1975, as entitled to any guaranteed minimum pension which derives from the minimum contributions, minimum payments, or transfer payment or payments from which the protected rights in question derive, or is treated as entitled to such a guaranteed minimum pension at a nil rate.
(2) In paragraph (1)(a), “qualifying widow or widower” means a widow or widower of the earner who at the date of the earner’s death either—
(a)
(a) is aged 45 or over; or
(b)
(b) is entitled to child benefit in respect of a child under 18 who is, or residing with a child under 16 who is—
(i) a son or daughter of the widow or widower and the earner, or
(ii) a child in respect of whom the earner immediately before his death, was, or would have been if the child had not been absent from Great Britain, entitled to child benefit, or
(iii) if the widow or widower and the earner were residing together immediately before the earner’s death, a child in respect of whom the widow or widower then was, or would have been if the child had not been absent from Great Britain, entitled to child benefit.
Liability for payment of a premium
4.—(1) For the purposes of section 5(7) of the...
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