Citation and commencement

1. These Regulations may be cited as the Occupational Pension Schemes (Contracting-out) (Amendment) Regulations 2009 and shall come into force on 6th April 2009.

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996

2. —(1)The Occupational Pension Schemes (Contracting-out) Regulations 1996( 4 ) are amended in accordance with this regulation.

(2) After regulation 69 (miscellaneous provisions affecting section 51 of the 1993 Act), insert—

“ Conversion of guaranteed minimum pensions into other benefits: actuarial equivalence

69A. —(1) For the purposes of Condition 1 of section 24B of the 1993 Act (the conversion conditions), actuarial equivalence is to be determined in accordance with this regulation.

(2) The trustees are responsible for determining actuarial equivalence.

(3) In determining actuarial equivalence, the trustees must—

(a) obtain advice from the actuary about what assumptions are appropriate at the conversion date,

(b) consider that advice,

(c) decide what assumptions are appropriate at the conversion date and, if the trustees later think it is necessary, change that decision, and

(d) arrange for the actuary to calculate the actuarial values of the post-conversion benefits and the pre-conversion benefits in accordance with paragraph (4).

(4) In calculating the actuarial values mentioned in paragraph (3)(d), the actuary must—

(a) use the assumptions chosen by the trustees under paragraph (3)(c), and

(b) ignore the value of any—

(i) benefits that have been commuted,

(ii) amounts that have been paid in respect of any benefits,

(iii) amounts in respect of any benefits that, before the conversion date, became due to be paid, and

(iv) discretionary benefits that might be awarded in the future.

(5) When the actuarial values mentioned in paragraph (3)(d) have been calculated, the actuary must send the trustees a certificate if the post-conversion benefits are actuarially at least equivalent to the pre-conversion benefits.

(6) The certificate must—

(a) state that—

(i) the calculations have been completed, and

(ii) the post-conversion benefits are actuarially at least equivalent to the pre-conversion benefits, and

(b) be sent to the trustees no later than three months after the calculations have been completed.

Conversion of guaranteed minimum pensions into other benefits: survivors’ benefits

69B. —(1) For the purposes of Condition 4 of section 24B of the 1993 Act, the circumstances in which, and periods during which, the converted scheme must provide survivors’ benefits are prescribed in this regulation.

(2) The circumstances are that—

(a) an earner’s pre-conversion benefits include a guaranteed minimum pension, and

(b) the scheme before conversion provided that—

(i) if such an earner dies leaving a widow, widower or surviving civil partner (whether before or after attaining pensionable age), the widow, widower or surviving civil partner will be entitled to a guaranteed minimum pension, and

(ii) such a widower or surviving civil partner’s guaranteed minimum pension will be payable in the circumstances set out in regulation 57(a) to (c) ( 5 ) .

(3) The periods are—

(a) for widows, widowers and surviving civil partners, any period mentioned in section 17(4A)(a) and (b) of the 1993 Act (minimum pensions for widows and widowers) ( 6 ) ,

(b) for widows, widowers and surviving civil partners whose entitlement by virtue of the earner’s contributions to a widowed parent’s allowance or bereavement allowance has come to an end at a time after the widow, widower or surviving civil partner attained the age of 45, so much of the period beginning with the time when that entitlement came to an end as neither—

(i) comprises a period during which the widow, widower or surviving civil partner and—

(aa) a person of the opposite sex are living together as husband and wife, or

(bb) a person of the same sex are living together as if they were civil partners, nor

(ii) falls after the time of any—

(aa) marriage, or

(bb) formation of a civil partnership,

by the widow, widower or surviving civil partner which takes place after the earner’s death,

(c) for widows, any period for which a widowed mother’s allowance or widow’s pension is payable to the widow by virtue of the earner’s contributions, and

(d) for widowers and surviving civil partners, any period which is, by virtue of regulation 58 ( 7 ) , a prescribed period for the purposes of section 17(6) of the 1993 Act ( 8 ) .

(4) Paragraph (3)(b)(i)(bb) and (ii)(bb) does not apply where the earner died before 5th December 2005. ” .