Contracting out of additional state pension on a defined-contribution basis abolished
Implementation date: 6 April 2012
The Pensions Act 2007 and the Pensions Act 2008 abolish contracting out of the additional state pension on a defined-contribution basis for occupational pension schemes and for personal and stakeholder pension schemes, and the rules governing contracted-out rights in schemes. Secondary legislation, which implements the abolition and makes consequential amendments and transitional provisions, can be viewed on the UK legislation website:
- Pensions Act 2007 (Commencement No.4) Order 2011 (SI 2011/1267) The commencement order brings into force s.15(1) of the Pensions Act 2007, which abolishes contracting out of the additional state pension for defined-contribution pension schemes.
- Pensions Act 2008 (Commencement No.10) Order 2011 (SI 2011/1266) The commencement order brings into force s.106 of the Pensions Act 2008, which abolishes the special provisions that apply to the protected rights of members of pension schemes on the contracting-out abolition date.
- Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) Order 2011 (SI 2011/1246)
- Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) (No.2) Order 2011 (SI 2011/1730) The Order makes consequential amendments to legislation pursuant to the implementation of s.106 of the Pensions Act 2008, which abolishes the protected rights of members of pension schemes that contract out of the additional state pension on a defined-contributions basis.
- Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) (No.2) (Amendment) Order 2012 The Order amends the Pensions Act 2008 (Abolition of Protected Rights) (Consequential Amendments) (No.2) Order 2011, by removing the protection afforded to protected rights payments in bankruptcy proceedings and the prohibition on assigning protected rights payments.
- Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (SI 2011/1245)
- Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) (No.2) Regulations 2011 (SI 2011/1724) The Regulations make consequential amendments to legislation pursuant to s.15 of the Pensions Act 2007, which abolishes contracting out of the additional state pension for defined-contribution pension schemes.
- Occupational Pension Schemes (Contracting-out and Modification of Schemes) (Amendment) Regulations 2012 (SI 2012/542) The Regulations increase the percentage to be used for the revaluation of an early leaver's guaranteed minimum pension, and permit trustees of formerly contracted-out defined-contribution occupational pension schemes to change their scheme rules.
