Pension Schemes Act 1993

Changes to legislation:

Pension Schemes Act 1993, Chapter III is up to date with all changes known to be in force on or before 15 May 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

s. 46(1A) (1B) inserted by 2008 c. 30 s. 103(2) (This amendment not applied to legislation.gov.uk. S. 103(2)(4)(5) repealed (1.10.2014) without ever being in force by 2014 c. 19, Sch. 12 para. 96(a); S.I. 2014/2377, art. 2(1)(a)(ii)(3)(c))
s. 46(1A) words substituted by 2011 c. 19 Sch. 3 para. 10
s. 71(1A) inserted by 2015 c. 8 s. 39(2)(b)
s. 82A inserted by 2015 c. 8 Sch. 1 para. 2
s. 83(1A)-(1AC) substituted for s. 83(1A) by 2015 c. 8 Sch. 1 para. 3
s. 84-84F substituted for s. 84 by 2015 c. 8 Sch. 1 para. 4
s. 85A inserted by 2015 c. 8 Sch. 1 para. 5
s. 86A 86B inserted by 2015 c. 8 Sch. 1 para. 6
s. 94(2A)(a)(viii) inserted by 2014 c. 19 Sch. 17 para. 20(2)(a)
s. 94(2A)(b)(vi) inserted by 2014 c. 19 Sch. 17 para. 20(2)(b)
s. 101AI(8)(a)(viii) inserted by 2014 c. 19 Sch. 17 para. 20(3)(a)
s. 101AI(8)(b)(vi) inserted by 2014 c. 19 Sch. 17 para. 20(3)(b)
s. 113(4)(4A) substituted for s. 113(4) by 2015 c. 8 s. 38(5)
s. 145(1A)-(1C) inserted by 2004 c. 35 Sch. 12 para. 23
s. 146(6A) inserted by 2004 c. 35 Sch. 12 para. 24(b)
s. 175A inserted by 2008 c. 30 Sch. 10 para. 1
s. 185(2)(ca) inserted by 2018 c. 10 s. 19(5)
s. 186(3)(ba) inserted by 2015 c. 8 Sch. 1 para. 7
s. 186(3)(za) inserted by 2008 c. 30 s. 103(5) (This amendment not applied to legislation.gov.uk. S. 103(2)(4)(5) repealed (1.10.2014) without ever being in force by 2014 c. 19, Sch. 12 para. 96(a); S.I. 2014/2377, art. 2(1)(a)(ii)(3)(c))
Sch. 3 para. A1 and cross-heading inserted by 2015 c. 8 Sch. 1 para. 8

Chapter IIIE+W+S Termination of contracted-out or appropriate scheme status: state scheme premiums

Approval of arrangements for schemes ceasing to be certifiedE+W+S

F150 Powers of Inland Revenue to approve arrangements for scheme ceasing to be certified.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1S. 50 repealed (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 33 (with a temp. saving in The Pensions Act 2014 (Savings) Order 2015 (S.I. 2015/1502), arts. 1(2)(3), 2(3A) (as inserted by S.I. 2015/2058, art. 3(3)(d)))

51 Calculation of guaranteed minimum pensions preserved under approved arrangements.E+W+S

(1)This section applies where—

(a)an earner’s guaranteed minimum pension rights or accrued rights to guaranteed minimum pensions under a scheme [F2satisfy prescribed conditions], and

(b)one or more of the five tax years ending with the tax year in which the scheme [F3ceased] to be contracted-out is a relevant year in relation to the earner.

(2)Where this section applies then, except in such circumstances as may be prescribed, section 16(1) shall have effect, subject to the following provisions, that is to say—

(a)any earnings factor shall be taken to be that factor as increased by the last order under section 21 of the M1Social Security Pensions Act 1975 or section 148 of the M2Social Security Administration Act 1992 to come into force before those five tax years; and

(b)any relevant earnings factors derived from contributions or earnings in respect of any year (“the relevant contributions year”) shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which—

(i)constitutes or begins before the relevant contributions year, or

(ii)begins after the final relevant year in relation to the earner.

(3)Subsection (2) shall not apply in any case where its application would result in the amount of the guaranteed minimum being greater than it would have been apart from that subsection.

(4)Regulations may provide that subsections (1) to (3) shall have effect with prescribed modifications in relation to a scheme which, immediately before it ceased to be contracted-out, contained provisions authorised by section 16(2).

(5)In this section “relevant year” and “final relevant year” have the same meanings as in section 16.

Textual Amendments

F2Words in s. 51(1)(a) substituted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 46; S.I. 1996/778, art. 2(5)(a), Sch. Pt. V; S.I. 1997/664, art. 2(3), Sch. Pt. II

F3Word in s. 51(1)(b) substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 34

Modifications etc. (not altering text)

C1S. 51(1)-(3) modified (6.4.1997) by Occupational Pension Schemes (Contracting-out) Regulations 1996 (S.I. 1996/1172), regs. 1(1), 67

C2S. 51(1)-(3) excluded (6.4.1997) by Occupational Pension Schemes (Contracting-out) Regulations 1996 (S.I. 1996/1172), regs. 1(1), 69

Commencement Information

I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Marginal Citations

M11975 c. 60.

M21992 c. 5.

Supervision of formerly certified schemesE+W+S

[F452Supervision of former salary related contracted-out schemesE+W+S

Section 53 shall apply for the purpose of making provision for securing the continued supervision of any scheme that was a salary related contracted-out scheme, other than a public service pension scheme, if any person is entitled to receive or has accrued rights to—

(a)a guaranteed minimum pension under the scheme, or

(b)a pension under the scheme attributable to service on or after the principal appointed day but before the scheme ceased to be contracted-out.]

Textual Amendments

F4S. 52 substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 35

53 Supervision: former contracted-out schemes.E+W+S

[F5(1)The [F6Inland Revenue] may direct the trustees or managers of the scheme, or the employer, to take or refrain from taking such steps as the [F6Inland Revenue] may specify in writing; and such a direction shall be final and binding on the person directed and any person claiming under him.

(1A)An appeal on a point of law shall lie to the High Court or, in Scotland, the Court of Session from a direction under subsection (1) at the instance of the trustees or managers or the employer, or any person claiming under them.

(1B)A direction under subsection (1) shall be enforceable—

(a)in England and Wales, in [F7the county court] as if it were an order of that court, and

(b)in Scotland, by the sheriff, as if it were an order of the sheriff and whether or not the sheriff could himself have given such an order]

[F8(1C)But where a direction under subsection (1) conflicts with a freezing order made by the Regulatory Authority under section 23 of the Pensions Act 2004 in relation to the scheme then, during the period for which the freezing order has effect, the direction to the extent that it conflicts with the freezing order—

(a)is not binding as described in subsection (1), and

(b)is not enforceable as described in subsection (1B).]

F9(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5S. 53(1)-(1B) substituted for s. 53(1) (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 48(a); S.I. 1997/664, art. 2(3), Sch. Pt. II

F6Words in s. 53 substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 52; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F7Words in s. 53(1B)(a) substituted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 52; S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11)

F8S. 53(1C) inserted (6.4.2006) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 10; S.I. 2006/560, art. 2(3), Sch. Pt. 3

F9S. 53(2) repealed (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 48(b), Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. II