The Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996
The Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (“the Regulations”) consolidate the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1987 with amendments and in addition make minor and drafting amendments. The Regulations also make provisions which are consequential upon Part III of the Pensions Act 1995 (c.26) and are made before the end of the period of six months beginning with the coming into force of that Part and as a consequence there is no requirement to consult. As regards the other regulations, the Occupational Pensions Board has agreed that proposals to make regulations need not be referred to it.The Regulations prescribe the manner of calculation and verification of protected rights (regulation 2); the rights which a scheme may designate as protected rights, in addition to those so designated by the Pension Schemes Act 1993 (c.48) (regulation 3); the conditions which are to apply to pensions and annuities which give effect to protected rights (regulation 4); the circumstances in which and periods for which a pension or annuity is to be paid to a widow or widower after a scheme member’s death (regulation 5); the conditions which are to apply to payments under an interim arrangement (regulation 6); the requirements which interim arrangements must satisfy (regulation 7); the circumstances in which a lump sum benefit may be provided (regulation 8); the circumstances in which protected rights may be surrendered or forfeited (regulation 9); the manner in which and the period within which an insurance company may be chosen by an annuitant (regulation 10); the conditions that an insurance company must satisfy if it is to provide an annuity which is to give effect to protected rights (regulation 11); and the provision that is to be made if a scheme member dies before effect is given to his protected rights (regulations 12 and 13). Regulation 14 requires that a scheme’s provision for giving effect to the protected rights of a member who has died must be such that the person entitled to any payment giving effect to those rights must be able to enforce that entitlement; and regulation 15 requires that a scheme should not, in offering pensions which are to give effect to protected rights, discriminate on grounds of sex or marital status except as permitted by the regulation.Regulation 16 provides that, when effect has been given to protected rights under a personal pension scheme, certain information must be given to the Secretary of State; and regulation 17 defines the meaning of tax-exemption and tax-approval.Revocations are made by regulation 18 and the Schedule.An assessment of the compliance cost of the measures arising from the Pensions Act 1995, including regulations, has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, 11th Floor, Adelphi, 1–11 John Adam Street, London WC2N 6HT.