Change 1 Article Choose an article Title and introductory text 1 Categories of pension schemes. 2 Registration of occupational and personal pension schemes. 3 Issue of contracting-out ... certificates. 3A Meaning of the first abolition date” and the second abolition date” 3B Meaning of “contracted-out scheme” and “appropriate scheme” etc. 4 Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”. 5 Requirements for certification of schemes: general. 6 Protected rights and money purchase benefits. 7 Elections as to employments covered by contracting-out certificates. 8 Determination of basis on which scheme is contracted-out. 8A The statutory standard. 8B Reference scheme. 8C Transfer, commutation, etc. 8D Entitlement to benefit. 8E Former salary related contracted-out schemes to comply with GMP requirements 9 Minimum pensions for earners. 10 Earner’s guaranteed minimum. 11 Increase of guaranteed minimum where commencement of guaranteed minimum pension postponed. 11A Reduction of guaranteed minimum in consequence of pension debit. 12 Revaluation of earnings factors for purposes of s. 10: early leavers, etc. 13 Minimum pensions for widows and widowers. 14 Treatment of insignificant amounts. 15 Discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts. 16 Transfer of accrued rights. 17 Commutation, surrender and forfeiture. 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Securing of benefits. 20 20A Conversion of guaranteed minimum pension into other benefits: introduction 20B The conversion conditions 20C Actuarial equivalence 20D Survivors' benefits 20E Procedural requirements 20F Transfer out 20G Powers to amend schemes 20H Enforcement of GMP conversion conditions 21 Power for Board to impose conditions as to investments and resources. 22 Persons who may establish scheme. 23 Identification and valuation of protected rights. 24 Ways of giving effect to protected rights. 24A Requirements for interim arrangements. 24B Information about interim arrangements. 25 The pension and annuity requirements. 26 Securing of liability for protected rights. 27 Investment and resources of schemes. 28 Suspension or forfeiture. 28A Discharge of protected rights on winding up: insurance policies. 29 Tax requirements to prevail over requirements of section 27. 29A Appropriate schemes: “Blowing the whistle”. 30 Cancellation, variation, surrender and refusal of certificates. 31 Surrender and cancellation of contracting-out certificates: issue of further certificates. 32 Surrender and cancellation of contracting-out certificates: cancellation of further certificates. 33 Alteration of rules of contracted-out schemes. 33A Transfer of liabilities etc.: schemes contracted-out on or after 6 April 1997 34 Alteration of rules of appropriate schemes. 34A Regulations about relevant gender change cases 35 General power to make regulations. 36 Scope of Chapter II. 37 Reduced rates of Class 1 contributions. 38 Alteration of rates of contributions under s. 37. 38A Reduced rates of Class 1 contributions and rebates. 38B Determination and alteration of rates of contributions, and rebates, applicable under section 38A. 39 Payment of minimum contributions to personal pension schemes. 40 Earner’s chosen scheme. 41 Amount of minimum contributions. 41A Alteration of rates of minimum contributions under section 41. 41B Money purchase and personal pension schemes: verification of ages 42 Effect of entitlement to guaranteed minimum pensions on payment of social security benefits. 43 Further provisions concerning entitlement to guaranteed minimum pensions for the purposes of s. 42. 44 Reduced benefits where minimum payments or minimum contributions paid. 44A Additional pension and other benefits. 45 Women, married women and widows. 46 Powers of Board to approve arrangements for scheme ceasing to be certified. 47 Calculation of guaranteed minimum pensions preserved under approved arrangements. 48 Supervision of former salary related contracted-out schemes 49 Supervision: former contracted-out schemes. 50 Supervision: former appropriate personal pension schemes. 51 Payment of state scheme premiums on termination of certified status. 52 Provisions supplementary to s. 51. 53 Elections to pay contributions equivalent premiums. 54 Amount of premiums payable under s. 51. 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Effect of payment of premiums on rights. 57 Deduction of contributions equivalent premium from refund of scheme contributions. 58 No recovery of state scheme premiums from earners, etc. 59 Further provisions concerning calculations relating to premiums. 60 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Non-payment of state scheme premiums. 64 Unpaid premiums: supplementary. 64A Safeguarded rights. 64B Requirements relating to safeguarded rights. 64C Reserve powers in relation to non-complying schemes. 64D Power to control transfer or discharge of liability. 65 Scope of Chapter I: the preservation requirements. 66 Interpretation (Part IV). 67 Basic principle as to short service benefit. 68 No discrimination between short service and long service beneficiaries. 69 Form of short service benefit and its alternatives. 70 Computation of short service benefit. 71 Credits. 72 Pension increases. 73 74 75 76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Discharge of liability where short service or alternative benefits secured by insurance policies or annuity contracts. 78 Supplementary regulations. 79 Scope of Chapter II. 80 Basis of revaluation. 81 Revaluation not to apply to substituted benefit. 82 Supplementary provisions. 83 General protection principle. 84 The relevant sum. 85 The appropriate addition. 86 The later earnings addition. 87 Special provision where employment continues after it ceases to be contracted-out by reference to scheme. 88 Supplementary provisions. 89 Scope of Chapter 1 89A Right to statement of entitlement: benefits other than money purchase 90 Right to cash equivalent 91 Ways of taking right to cash equivalent. 92 Further provisions concerning exercise of option under s. 91. 93 Calculation of cash equivalents. 93A Designation of funded public service defined benefits schemes 93B Reduction of cash equivalents in case of section 93A designated schemes 94 Loss of right to cash equivalent 95 Trustees’ duties after exercise of option. 95A Trustees' further duties: collective money purchase benefits 96 Withdrawal of applications. 96A Prohibition on excluding future accruals etc 96B Meaning of “scheme rules”: occupational pension schemes 96C Meaning of “normal pension age” in this Chapter 96D Interpretation of Chapter 97 Supplementary provisions. 97AA Scope of Chapter 5 97AB Right to cash transfer sum and contribution refund 97AC Notification of right to cash transfer sum or contribution refund 97AD Exercise of right under section 97AB 97AE Permitted ways of using cash transfer sum 97AF Calculation of cash transfer sum and contribution refund 97AG Duties of trustees or managers following exercise of right 97AH Powers of trustees or managers where right not exercised 97AI Rights under section 97AB: further provisions 97A Scope of Chapter I. 97B Interpretation. 97C Basic principle as to pension credit benefit. 97D Form of pension credit benefit and its alternatives. 97E Discharge of liability where pension credit or alternative benefits secured by insurance policies or annuity contracts. 97F Power to give transfer notice. 97G Restrictions on power to give transfer notice 97H Benefits other than money purchase: statements of entitlement. 97I Calculation of cash equivalents. 97J Time for compliance with transfer notice. 97K Withdrawal of transfer notice. 97L Variation of the amount required to be used. 97M Effect of transfer on trustees’ duties. 97N Matters to be disregarded in calculations. 97NA Prohibition on excluding transfers of some rights without others etc 97O Service of notices. 97P Interpretation of Chapter II. 97Q Power to modify Chapter II in relation to hybrid schemes. 98 99 100 101 102 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 105 Annual increase of guaranteed minimum pensions. 106 Requirement as to resources for annual increase of guaranteed minimum pensions. 107 Voluntary contributions. 107A Monitoring of employers’ payments to personal pension schemes. 107B Obtaining information for purposes of section 107A and corresponding legislation in Great Britain. 108 109 Disclosure of information about schemes to members, etc. 109A Disclosure of information about transfers etc. 109B Occupational pension schemes: requirements to refer members to guidance etc 110 111 Powers as respects failure to comply with information requirements. 112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Regulations as to form and content of advertisements. 114 115 116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 118 119 Interpretation of Chapter II. 120 Duty of Department to pay unpaid contributions to schemes. 121 Certification of amounts payable under s. 120 by insolvency officers. 122 Complaint to industrial tribunal. 123 Transfer to Department of rights and remedies. 124 Priority in bankruptcy, etc. 125 Overriding requirements. 126 Extra-statutory benefits. 127 Relationship of preservation requirements and scheme rules. 128 Duty to bring schemes into conformity with indirectly-applying requirements. 129 130 131 132 133 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 135 136 137 138 Powers of the Board to wind up schemes. 139 Winding up of public service schemes. 140 Deficiencies in the assets of a scheme on winding up. 141 The Pensions Ombudsman. 142 Functions of the Pensions Ombudsman. 143 Death, insolvency or disability of authorised complainant. 144 Staying court proceedings where a complaint is made or a dispute is referred. 145 Procedure on an investigation. 146 Investigations: further provisions. 147 Determinations of the Pensions Ombudsman. 147A Interest on late payment of benefit. 148 Power to apply county court rules. 149 Power to modify certain provisions of this Act. 150 Application of enactments as respects personal pension schemes. 151 Requirement to give information to the Department, Secretary of State or Inland Revenue for the purposes of certain provisions. 152 Information for purposes of contracting-out 153 Power of Department to obtain information in connection with applications under s. 120. 154 Disclosure of information between government departments, etc. 154A Other disclosures by the Department. 155 Inalienability of guaranteed minimum pension .... 155A No forfeiture on bankruptcy of rights under personal pension schemes. 156 Terms of contracts of service or schemes restricting choice to be void. 157 Provisions excluding Chapter II of Part VII to be void. 158 Removal of restrictions on friendly societies’ pension business. 159 Exemption of certain schemes from rule against perpetuities. 160 Crown employment. 161 Application of certain provisions to cases with foreign element. 162 Reciprocity with other countries. 163 Application of general provisions relating to administration of social security. 164 Breach of regulations. 164A Offence in connection with the Registrar. 165 Decisions and appeals. 166 Questions arising in proceedings. 166A Reports by Inland Revenue. 167 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 169 Grants to advisory bodies etc. 170 Levies towards certain expenditure. 171 Fees for official services to schemes. 172 General financial arrangements. 173 Managers of schemes. 174 Linked qualifying service. 175 Normal pension age. 175A Insurer and long-term insurance business 176 General interpretation. 176A Interpretation of references to money purchase contracted-out schemes or appropriate schemes after abolition date 176B Money purchase benefits: supplementary 177 Orders and regulations (general provisions). 178 Sub-delegation. 179 180 Consultations about other regulations. 181 Assembly, etc. control of regulations and orders. 182 Repeals. 183 Transitional provisions and savings. 184 Prospective and c183.onsequential amendments. 185 Transitory modifications. 186 Short title, commencement and extent. SCHEDULE 1 Certification Regulations SCHEDULE 2 Methods of Revaluing Accrued Pension Benefits SCHEDULE 3 Priority in Bankruptcy, etc SCHEDULE 4 Repeals SCHEDULE 5 Transitional Provisions and Savings SCHEDULE 6 Re-enactment or Amendment of Certain Provisions Not in Force SCHEDULE 7 Consequential Amendments SCHEDULE 8 Transitory Modifications
What to do with it
As published
11A Reduction of guaranteed minimum in consequence of pension debit.
(1) Where—
(a) an earner has a guaranteed minimum in relation to the pension provided by a scheme, and
(b) his right to the pension becomes subject to a pension debit,
his guaranteed minimum in relation to the scheme is, subject to subsection (2), reduced by the appropriate percentage.
(2) Where the earner is in pensionable service under the scheme on the day on which the order or provision on which the pension debit depends takes effect, his guaranteed minimum in relation to the scheme is reduced by an amount equal to the appropriate percentage of the corresponding qualifying benefit.
(3) For the purposes of subsection (2), the corresponding qualifying benefit is the guaranteed minimum taken for the purpose of calculating the cash equivalent by reference to which the amount of the pension debit is determined.
(4) For the purposes of this section, the appropriate percentage is—
(a) if the order or provision on which the pension debit depends specifies the percentage value to be transferred, that percentage;
(b) if the order or provision on which the pension debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of paragraph (1) of Article 26 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (lesser of specified amount and cash equivalent of transferor’s benefits) represents of the amount mentioned in paragraph (3)(b) of that Article (cash equivalent of transferor’s benefits).
Your wording
Your change, as a redline
11A Reduction of guaranteed minimum in consequence of pension debit.
(1) Where—
(a) an earner has a guaranteed minimum in relation to the pension provided by a scheme, and
(b) his right to the pension becomes subject to a pension debit,
his guaranteed minimum in relation to the scheme is, subject to subsection (2), reduced by the appropriate percentage.
(2) Where the earner is in pensionable service under the scheme on the day on which the order or provision on which the pension debit depends takes effect, his guaranteed minimum in relation to the scheme is reduced by an amount equal to the appropriate percentage of the corresponding qualifying benefit.
(3) For the purposes of subsection (2), the corresponding qualifying benefit is the guaranteed minimum taken for the purpose of calculating the cash equivalent by reference to which the amount of the pension debit is determined.
(4) For the purposes of this section, the appropriate percentage is—
(a) if the order or provision on which the pension debit depends specifies the percentage value to be transferred, that percentage;
(b) if the order or provision on which the pension debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of paragraph (1) of Article 26 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (lesser of specified amount and cash equivalent of transferor’s benefits) represents of the amount mentioned in paragraph (3)(b) of that Article (cash equivalent of transferor’s benefits).
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.