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View the related practice notes about Section 9(2B) rights

Legal regime applicable to Section 9(2B) rights and GMPs from 6 April 2016

THIS PRACTICE NOTE APPLIES TO SCHEMES THAT WERE CONTRACTED-OUT SALARY-RELATED (COSR) SCHEMES BEFORE 6 APRIL 2016.On 6 April 2016, contracting-out on a salary-related basis (also known as DB contracting-out) ceased to exist. Schemes that were contracted-out salary-related (COSR) schemes immediately before 6 April 2016 automatically ceased to be contracted-out with effect from that date.This Practice Note covers the statutory requirements applicable on and from 6 April 2016 to schemes that were COSR schemes before that date.For more information on the abolition of DB contracting-out, see Practice Note: Abolition of DB contracting-out—an introduction.For more information generally on the meaning of contracting-out, see Practice Note: Contracting-out of the additional state pension—what does it mean?Legal framework for former COSR schemesThe various contracting-out requirements applicable to former COSR schemes are mainly set out in:•Part III of the Pension Schemes Act 1993 (PSA 1993)•the Occupational Pension Schemes (Schemes that were Contracted-out) (No 2) Regulations 2015, SI 2015/1677 (the New Contracting-out Regs). These regulations effectively replace the Occupational Pension Schemes (Contracting out) Regulations, SI 1996/1172 (the...

Buying out Section 9(2B) rights and GMPs from 6 April 2016

This Practice Note focuses on the considerations applicable on and from 6 April 2016 (the date on which contracting-out on a salary-related basis—also known as DB contracting-out—was abolished) when 'buying out' the following contracted-out salary-related (COSR) rights:•guaranteed minimum pensions (GMPs)—these are the benefits accrued by members of COSR schemes as a consequence of contracting out between 6 April 1978 and 5 April 1997•Section 9(2B) rights (also known as post-1997 COSR rights)—these are the benefits accrued by members of COSR schemes as a consequence of contracting out between 6 April 1997 and 5 April 2016The legislative requirements applicable differ depending on whether the COSR rights in question are GMPs or Section 9(2B) rights. For information on the considerations applicable before 6 April 2016 for the buy-out of COSR rights, see Practice Note: Buying out Section 9(2B) rights and GMPs before 6 April 2016 [Archived].For information on buy-out issues generally, see Practice Note: De-risking—pension buy-outs and buy-ins.For information on the abolition of DB contracting-out on 6 April 2016, see Practice Note: Abolition...

View the related precedents about Section 9(2B) rights

Bulk Transfer Agreement

Bulk Transfer Agreement This Deed of Merger is made on the [insert day] day of [insert date]. Parties 1 [TRUSTEE OF TRANSFERRING SCHEME] (Company No. [ ]) whose registered office is at [address] (the ‘Transferring Trustee’); 2 [PRINCIPAL EMPLOYER OF TRANSFERRING SCHEME] (Company No. [ ]) whose registered office is at [address] (‘Transferring Scheme Employer’); 3 [TRUSTEE OF RECEIVING SCHEME] (Company No. [ ]) whose registered office is at [address] (the ‘Receiving Trustee’); and 4 [PRINCIPAL EMPLOYER OF RECEIVING SCHEME] (Company No. [ ]) whose registered office is at [address] (‘Receiving Scheme Employer’). BACKGROUND (A) The Transferring Trustee is the trustee of the [Name of Transferring Scheme] (the ‘Transferring Scheme’). (B) The Receiving Trustee is the trustee of the [Name of Receiving Scheme] (the ‘Receiving Scheme’). (C) The Receiving Scheme Employer is the Principal Employer of the Receiving Scheme and the Transferring Scheme Employer is the Principal Employer of the Transferring Scheme. (D) Both the Receiving Scheme and the Transferring Scheme are registered...

View the related q&as about Section 9(2B) rights

The wife of a deceased member has requested information regarding the deceased member's pension from the trustees of a pension scheme in order to support a medical negligence claim, but the wife is neither a current or prospective beneficiary under the scheme. In these circumstances: (i) if the scheme trustees do not disclose the information and the wife complained to the Pensions Ombudsman, would the complaint fall within the remit of the Ombudsman, and (ii) if the complaint does fall within the Pensions Ombudsman’s remit and the complaint is successful, what award could the Ombudsman make?

The wife of a deceased member has requested information regarding the deceased member's pension from the trustees of a pension scheme in order to support a medical negligence claim, but the wife is neither a current or prospective beneficiary under the scheme. In these circumstances: (i) if the scheme trustees do not disclose the information and the wife complained to the Pensions Ombudsman, would the complaint fall within the remit of the Ombudsman, and (ii) if the complaint does fall within the Pensions Ombudsman’s remit and the complaint is successful, what award could the Ombudsman make? It is stated that the wife of the deceased member is neither a current or prospective beneficiary under the pension scheme. However, it is not specified if the occupational pension scheme was contracted-out of the State Earnings Related Pension Scheme (SERPS) or was a contracted-in scheme. For example, since 1978, all occupational pension schemes (and personal pension schemes) which contracted-out of SERPS had to provide for a survivor’s pension for a...

View the related News about Section 9(2B) rights

PLSA urges DWP to clarify implications of Virgin v NTL pensions case

Law360: The government must clarify the scope of the requirements on defined benefit pension schemes following the Court of Appeal ruling in Virgin Media Ltd v NTL Pension Trustees, the Pensions and Lifetime Savings Association (PLSA) has warned, after its members registered a surge in queries from scheme members.

Actuarial confirmation required for alterations to contracted-out past and future service pension rights (Virgin Media v NTL Pension Trustees II)

Pensions analysis: In a landmark ruling, dismissing the appeal brought by Virgin Media Ltd (Virgin) against the first instance decision of Mrs Justice Bacon, the Court of Appeal held that the term ‘section 9(2B) rights’ in regulation 42(2) of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (the Contracting-out Regulations), as in force from 6 April 1997 to 5 April 2013, included pension rights earned by both past and future service. The judgment potentially has very significant implications for occupational pension schemes that were contracted out of the Additional State Pension on the salary-related basis under section 9(2B) of the Pension Schemes Act 1993 (PSA 1993) : absent actuarial confirmation as required by PSA 1993, s 37, it now appears certain historical alterations to members’ future (as well as past) service rights under such schemes will be void. Important practical issues concerning the nature and scope of the required actuarial confirmation, however, remain unresolved. Written by Henry Day, barrister at Radcliffe Chambers.