Protected Rights (Transfer Payment) Regulations 1987

JurisdictionUK Non-devolved
CitationSI 1987/1118

1987 No. 1118

PENSIONS

The Protected Rights (Transfer Payment) 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 sections 2, 17(1)(b) and 84(1) of, and paragraph 9(1)(b) of Schedule 1 to, the Social Security Act 19861, 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:

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Protected Rights (Transfer Payment) Regulations 1987 and shall come into force —

(a)

(a) for all purposes in relation to personal pension schemes on 27th July 1987; and

(b)

(b) for all other purposes on 6th April 1988.

(2) In these Regulations, unless the context otherwise requires —

“the Act” means the Social Security Act 1986;

“the Pensions Act” means the Social Security Pensions Act 19752;

“the Abatement of Benefit Regulations” means the Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations 19873;

“appropriate personal pension scheme” shall be construed in accordance with Part I of the Act;

“the Board” means the Occupational Pensions Board;

“money purchase contracted-out scheme” and “occupational pension scheme” have the meaning given to those expressions by section 66(1) of the Pensions Act;

“overseas scheme” means an occupational pension scheme which is neither one contracted-out by virtue of section 32 of the Pensions Act nor one which the Board is under a duty to supervise in accordance with section 49 of that Act, and which is administered wholly or primarily outside the United Kingdom;

“paying scheme” means a scheme which is, or was formerly —

(a) an appropriate personal pension scheme; or

(b) a money purchase contracted-out scheme,

and which gives effect to the protected rights of a member of it by making a transfer payment in respect of those rights;

“personal pension scheme” has the same meaning as in section 84(1) of the Act;

“protected rights” has the meaning given to that expression by Schedule 1 to the Act, or where the rights are under a money purchase contracted-out scheme, or a section 49 money purchase scheme, that Schedule as modified by section 32(2B) of the Pensions Act4;

“salary related contracted-out scheme” means an occupational pension scheme which is contracted-out by virtue of section 32(2) of the Pensions Act;

“scheme” means occupational pension scheme or personal pension scheme;

“section 49 money purchase scheme” means a scheme, which was formerly a money purchase contracted-out scheme, and which the Board are under a duty to supervise in accordance with section 49 of the Pensions Act5;

“section 49 salary related scheme” means a scheme, which was formerly a salary related contracted-out scheme, and which the Board are under a duty to supervise in accordance with section 49 of the Pensions Act;

“receiving scheme” means a scheme to which a transfer payment is, or is to be, made;

and other expressions have the same meaning as in the Act.

(3) In these Regulations, unless the context otherwise requires, any reference —

(a)

(a) to a numbered regulation or Schedule is to the regulation in, or as the case may be, Schedule to, 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.

S-2 Transfer payments giving effect to protected rights

Transfer payments giving effect to protected rights

2.—(1) Subject to regulation 3 (requirements to be satisfied by certain specified receiving schemes), a paying scheme may give effect to the protected rights of a member by the making of a transfer payment —

(a)

(a) to an appropriate personal pension scheme; or

(b)

(b) to an occupational pension scheme,

in the circumstances and subject to the conditions mentioned in paragraphs (2) to (7), and in these Regulations a “transfer payment” means a transfer payment such as is described in this paragraph.

(2) A transfer payment may be made to an appropriate personal pension scheme in the circumstances described in paragraph 1 of Schedule 1, and on the condition specified in paragraph 1 of Schedule 2.

(3) A transfer payment may be made to a money purchase contracted-out scheme in the circumstances described in paragraphs 1 and 2 of Schedule 1, and on the condition specified in paragraph 1 of Schedule 2.

(4) A transfer payment may be made to a section 49 money purchase scheme in the circumstances described in paragraphs 1 and 3 of Schedule 1, and on the conditions specified in paragraphs 1 and 2 of Schedule 2.

(5) A transfer payment may be made to a salary related contracted-out scheme in the circumstances described in paragraphs 1, 2 and 5 of Schedule 1, and on the condition specified in paragraph 1 of Schedule 2.

(6) A transfer payment may be made to a section 49 salary related scheme in the circumstances described in paragraphs 1, 3 and 5 of Schedule 1, and on the conditions specified in paragraphs 1 and 2 of Schedule 2.

(7) A transfer payment may be made to an overseas scheme in the circumstances described in paragraphs 1 and 4 of Schedule 1, and on the conditions specified in paragraphs 1 and 2 of Schedule 2.

(8) References in Schedules 1 to 3 to “the member”...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT