Made | 4th May 2007 | ||
Laid before Parliament | 11th May 2007 | ||
Coming into force | 1st June 2007 |
(3) References in these Regulations to—
Transferable rights
2.
—(1) In these Regulations, "transferable rights" means, subject to paragraph (2), any rights to relevant benefits, which, at the guarantee date, have accrued to, or in respect of, a person by virtue of—
(2) Paragraph (1) does not include—
(b) the cash equivalent of the value of the appropriate national health service allocation under section 162 of the Social Security Administration Act 1992[10].
(3) In determining a person's rights to relevant benefits for the purposes of this regulation, regulation 6(1) of the Social Security (Widow's Benefit and Retirement Pensions) Regulations 1979[11] (benefit at reduced rates for those who do not satisfy contribution conditions in full) shall have effect as if the words from "provided" to the end of the paragraph were omitted.
Transfer application
3.
—(1) Except where paragraph (2) applies, a person who wishes to transfer his transferable rights to the Communities' scheme must make an application to the Secretary of State.
(2) The transferor shall be treated as having made an application under paragraph (1) where the Secretary of State receives a copy of the transferor's application to become a member of the Communities' scheme.
(3) An application under paragraph (1) shall be in such form as the Secretary of State may from time to time approve.
Statement of entitlement
4.
—(1) The Secretary of State shall, subject to paragraph (4), provide the transferor with a statement of entitlement before the end of the period of 14 days beginning with the guarantee date.
(2) A statement of entitlement shall remain valid for a period of seven months beginning with the day on which it is issued by the Secretary of State.
(3) Where the transferor is not satisfied as to the accuracy of any of the information contained in the statement of entitlement, he shall notify the Secretary of State accordingly within one month of receiving it.
(4) The Secretary of State need not provide a statement of entitlement to a transferor if he has provided a statement of entitlement to that transferor in the previous twelve months.
Calculation of the cash equivalent of transferable rights
5.
—(1) The cash equivalent of the transferor's transferable rights is to be calculated and verified in such manner as may be approved by, or on behalf of, the Government Actuary.
(2) Where, at the guarantee date, the transferor is in receipt of one or more relevant benefits, the cash equivalent of any amounts paid in respect of that benefit or those benefits shall be deducted from the total cash equivalent of his transferable rights.
Notice of intention to complete transfer
6.
A transfer of a transferor's transferable rights to the Communities' scheme may only take place where the Secretary of State has been notified in writing, before the expiry of the period referred to in regulation 4(2), that the transferor wishes the transfer to take place.
Action to be taken by the Secretary of State
7.
—(1) Paragraphs (2) and (3) apply where the Secretary of State receives a notice under regulation 6.
(2) Where the Secretary of State is satisfied that the cash equivalent of the transferor's transferable rights is correct, he must transfer into the Communities' scheme—
before the end of the period of ten months beginning with the guarantee date.
(3) Where the Secretary of State is not satisfied as to the accuracy of the cash equivalent of the transferor's transferable rights, he shall notify the transferor accordingly and issue a revised statement of entitlement.
(4) Where—
he shall notify the transferor that his application is invalid and that a new application must be made and a new statement of entitlement obtained in accordance with the provisions of these Regulations.
Effect of making a cash equivalent transfer payment
8.
—(1) This regulation applies where the cash equivalent of the transferor's transferable rights has been transferred into the Communities' scheme.
(2) Section 22(4) of the 1992 Act[12] (earnings factors) shall be read as if it included the following—
(3) Nothing in the 1992 Act or in regulations made under it shall operate—
(4) Where the transferor returns to work in the United Kingdom, he shall not be entitled to credits under—
(5) Where, at the date on which the cash equivalent of his transferable rights was transferred, a transferor's former spouse or civil partner is treating the contributions of the transferor as if they were his own contributions in accordance with section 48 of the 1992 Act (use of former spouse's contributions), that transfer shall not have the effect of causing the former spouse's or civil partner's Category A pension to be re-calculated.
Incorrect amount transferred
9.
—(1) Paragraph (2) applies where—
(2) The Secretary of State shall transfer into the Communities' scheme an amount equal to the difference between—
Interest
10.
—(1) Interest shall accrue on the cash equivalent of the transferor's transferable rights in respect of the period beginning on the guarantee date and ending on the day on which an amount in respect of that cash equivalent is transferred by virtue of regulation 7(2).
(2) Interest shall accrue under paragraph (1) at an annual rate to be determined by the Secretary of State on the advice of the Government Actuary.
Time limits
11.
The periods specified in regulations 4, 6 and 7 may be extended by the Secretary of State if he considers it reasonable to do so in any particular case.
Financial provision
12.
Payments of cash equivalents of transferable rights made by the Secretary of State by virtue of these Regulations shall be paid out of monies provided by Parliament.
Signed by authority of the Secretary of State for Work and Pensions.
Bill McKenzie
Parliamentary Under-Secretary of State, Department for Work and Pensions
4th May 2007
[4] Council Regulation (EEC, Euratom, ECSC) No.259/68 of 29th February 1968 (OJ No.L 56, 4.3.1968 p.1-Special Edition 1968, 1 December 1972). The Communities' scheme is contained in Title V, Chapter 3, Articles 77-84 and Annex VIII.back
[5] 1965 c.51. Section 36 of that Act was repealed by the Social Security Act 1973 (c.38) with effect from 6th April 1975 but continues in force by virtue of regulations made under Schedule 3 to the Social Security (Consequential Provisions) Act 1975 (c.18) or under Schedule 3 to the Social Security (Consequential Provisions) Act 1992 (c.6).back
[8] Section 48 is amended by the Civil Partnership Act 2004 (c.33), Schedule 24, paragraph 24(1) and (2)(a).back
[9] Section 82 is amended by the Social Security (Incapacity for Work) Act 1994 (c.18) ("the 1994 Act"), Schedule 1, paragraph 19, the Jobseekers Act 1995 (c.18), Schedule 2, paragraph 24 and Schedule 3, the Civil Partnership Act 2004, Schedule 24, paragraph 35 and the Child Benefit Act 2005 (c.6), Schedule 1, paragraph 5. Section 83 is amended by the 1994 Act, Schedule 1, paragraph 20. Section 84 is amended by the Jobseekers Act 1995, Schedule 2, paragraph 25. Section 85 is amended by the 1994 Act, Schedule 1, paragraph 22 and the Civil Partnership Act 2004, Schedule 24, paragraph 37(1) to (3) and the Child Benefit Act 2005, Schedule 1, paragraphs 1, 6(1) and (3). Section 86 is repealed by the 1994 Act, Schedule 1, paragraph 23 and Schedule 2. Section 86A is inserted by the 1994 Act, section 2(5).back
[10] Section 162 is amended by the Social Security (Contributions) Act 1994 (c.1), section 2(1) and (2), the Social Security Administration (Fraud) Act 1997 (c.47), Schedule 2, the Social Security Act 1998 (c.14), Schedule 7, paragraph 99(4), the Social Security (Transfer of Functions, etc.) Act 1999 (c.2), Schedule 1, paragraph 28(2) and (3), Schedule 3, paragraph 52(2) to (11) and Schedule 5, paragraph 12, the Welfare Reform and Pensions Act 1999 (c.30), Schedule 9, paragraph 9(2) and (3), the Child Support, Pensions and Social Security Act 2000 (c.19), section 74(7), the National Insurance Contributions Act 2002 (c.19), section 4, Schedule 1, paragraph 19 and Schedule 2, the Income Tax (Earnings and Pensions) Act 2003 (c.1), Schedule 6, paragraph 189 and the National Insurance Contributions and Statutory Payments Act 2004 (c.3), Schedule 1, paragraph 3(3).back
[11] S.I.1979/642; the relevant amending instruments are S.I.1990/2642 and 2000/1483.back
[12] Section 22(4) is amended by the Social Security Act 1998 (c.14), Schedule 7, paragraph 61.back
[13] Paragraph 5 of Schedule 3 is amended by the Pensions Act 1995 (c.26), section 129.back
[14] S.I.1975/556; the relevant amending instruments are S.I.1988/1545 and 2000/1483.back
[15] S.R.1975 No.113; the relevant amending regulations are S.R.1988 No.326 and 2001 No.108.back