The Employment Equality (Age) (Amendment No.2) Regulations 2006

Interpretation of Schedule 2

4.—(1) In paragraph 1(3) of Schedule 2 (definition of occupational pension scheme), for “paragraphs 12, 13 and 30” substitute “paragraphs 3A, 7(b), 9, 15A, 17 to 21, 23, 24, 25, 25A and 30”.

(2) In paragraph 1(5) of Schedule 2 (interpretation)—

(a) in the definition of “death benefit” for “pension scheme” substitute “scheme”;

(b) in the definition of “dependant” after “means” insert “a widow, widower or surviving civil partner or a”;

(c) for the definition of “early retirement pivot age” substitute—

““early retirement pivot age” means, in relation to age related benefit provided under a scheme, an age specified in the scheme rules (or otherwise determined) as the earliest age at which entitlement arises—

(a)

without consent (whether of an employer, the trustees or managers of the scheme or otherwise), and

(b)

without an actuarial reduction,

but disregarding any special provision as to early payment on grounds of ill health or otherwise;;”;

(d) in the definition of “late retirement pivot age” after “scheme rules” insert “(or otherwise determined)”;

(e) in the appropriate alphabetical places insert—

““additional state retirement pension” means the additional pension in the Category A retirement pension within the meaning of sections 44 and 45 of the Social Security Contributions and Benefits Act 1992(1);

“basic state retirement pension” means the basic pension in the Category A retirement pension within the meaning of section 44 of the Social Security Contributions and Benefits Act 1992 (2);

“block transfer” means a transfer in a single transaction or a series of transactions from a scheme of all the sums and assets held for the purposes of, or representing, or derived from—

(i)

all accrued rights under a scheme,

(ii)

contracted-out rights, or

(iii)

rights which are not contracted-out rights,

relating to a period of continuous pensionable service (or pensionable service which is treated as continuous) or one or more of a number of separate periods of such pensionable service which relate to a member and at least one other member;

“contracted-out rights” are such rights, under or derived from an occupational pension scheme or an appropriate personal pension scheme as fall within the following categories—

(a)

entitlement to payment of, or accrued rights to, guaranteed minimum pensions;

(b)

protected rights; or

(c)

section 9(2B) rights,

but not safeguarded rights (within the meaning of section 68A of the Pension Schemes Act 1993(3));

“guaranteed minimum pension” has the meaning given in section 8(2) of the Pension Schemes Act 1993(4);

“lower earnings limit” means the amount specified for the tax year in question in regulations made under section 5(1)(a)(i) of the Social Security Contributions and Benefits Act 1992 (earnings limits and thresholds for Class 1 contributions)(5);

“protected rights” has the meaning given in section 10 of the Pension Schemes Act 1993(6);

“redundancy” means being dismissed by reason of redundancy for the purposes of the Employment Rights Act 1996(7);

“relevant transfer” has the meaning given in—

(a)

regulation 2(1) of the Transfer of Undertakings (Protection of Employment) Regulations 1981 (a relevant transfer)(8), or as the case may be,

(b)

regulation 2(1) of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (a relevant transfer)(9);

“section 9(2B) rights” are—

(a)

rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions) under a scheme contracted-out by virtue of section 9(2B) of the Pension Schemes Act 1993(10), so far as attributable to an earner’s service in contracted-out employment on or after 6th April 1997; and

(b)

where a transfer payment has been made to such a scheme, any rights arising under the scheme as a consequence of that payment which are derived directly or indirectly from—

(i)

such rights as are referred to in sub-paragraph (a) under another scheme contracted-out by virtue of section 9(2B) of that Act; or

(ii)

protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of employment on or after 6th April 1997;

“upper earnings limit” means the amount specified for the tax year in question in regulations made under section 5(1)(a)(iii) of the Social Security Contributions and Benefits Act 1992 (earnings limits and thresholds for Class 1 contributions)(11).”;

(f) omit the definitions of “employer contribution”, “member contribution” and “pensionable age”.

(3) Omit sub-paragraph (6) of paragraph 1 of Schedule 2.

(4) In sub-paragraph (8) of paragraph 1 of Schedule 2, after “this Schedule” add “and “occupational pension scheme” shall mean an occupational pension scheme within the meaning of either section 1(1) of the Pension Schemes Act 1993(12) or section 150(5) of the Finance Act 2004(13)”.

(1)

1992 c. 4. Section 44 was amended by paragraph 3 of Schedule 4 to the Social Security (Consequential Provisions) Act 1992 (c.6), paragraph 38 of Schedule 8 to the Pension Schemes Act 1993 (c.48), section 128(1) and (2) of the Pensions Act 1995 (c. 26), section 68 of the Social Security Act 1998 (c.14), section 30(2), section 35(5) to (7) of the Child Support, Pensions and Social Security Act 2000 (c.19), paragraph 10 of Schedule 1 to the National Insurance Contributions Act 2002 (c.19) and S.I. 2006/645. Section 45 was amended by section 31(1) and (2), and 35(8) of the Child Support, Pensions and Social Security Act 2000 (c.19).

(2)

Section 44 was amended by paragraph 3 of Schedule 4 to the Social Security (Consequential Provisions) Act 1992 (c.6), paragraph 38 of Schedule 8 to the Pension Schemes Act 1993 (c.48), section 128(1) and (2) of the Pensions Act 1995 (c. 26), section 68 of the Social Security Act 1998 (c.14), section 30(2), section 35(5) to (7) of the Child Support, Pensions and Social Security Act 2000 (c.19), paragraph 10 of Schedule 1 to the National Insurance Contributions Act 2002 (c.19) and S.I. 2006/645.

(3)

1993 c.48. Section 68A was inserted by section 36 of the Welfare Reform and Pensions Act 1999 (c. 30).

(4)

1993 c. 8.

(5)

1992 c.4. Section 5 was substituted by paragraph 1 of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c.30).

(6)

Section 10 was amended by Schedule 5 to the Pensions Act 1995 (c.26), section 32(2) of the Welfare Reform and Pensions Act 1999 (c.30) and paragraph 22(1) of Schedule 11 to the Proceeds of Crime Act 2002 (c.29).

(7)

1996 c. 18.

(8)

S.I. 1981/1794. These Regulations were revoked by regulation 20(1) of S.I. 2006/246 as from 6 April 2006, except in relation to a transfer that took place before that date.

(9)

S.I. 2006/246.

(10)

Section 9(2B) was amended by paragraph 35 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c.2).

(11)

c.4. Section 5 was substituted by paragraph 1 of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c.30).

(12)

1993 c.48. Section 1 was amended by section 239 of the Pensions Act 2004 (c.35).

(13)

2004 c. 12.