Citation, commencement and interpretation

1. —(1) These Regulations may be cited as the Equality Act 2010 (Sex Equality Rule) (Exceptions) Regulations 2010 and shall come into force on 1st October 2010.

(2) In these Regulations—

“the Act” means the Equality Act 2010 ;

“the additional pension of a Category A retirement pension” has the same meaning as in Part II of the Contributions and Benefits Act;

“Category A retirement pension” has the same meaning as in Part II of the Contributions and Benefits Act;

“the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992 ( 2 );

“normal pension age” has the meaning given in section 180 of the Pensions Schemes Act 1993 ( 3 );

“pensionable age” shall be construed in accordance with section 122(1) of the Contributions and Benefits Act( 4 );

“pensionable service” includes any service in respect of which transfer credits have been allowed by the scheme;

“personal pension scheme” has the meaning given in section 1(1) of the Pension Schemes Act 1993 ( 5 );

“salary-related contracted-out scheme” means an occupational pension scheme which is contracted-out by virtue of satisfying section 9(2) of the Pension Schemes Act 1993 ( 6 ) and includes a scheme which was formerly a salary-related contracted-out scheme which is subject to supervision in accordance with section 53 of that Act ( 7 );

“scheme” means an occupational pension scheme;

“transfer credits” has the meaning given in section 124(1) of the Pensions Act 1995 ( 8 ).

Exceptions to the sex equality rule: bridging pensions

2. The following circumstances are prescribed for the purposes of paragraph 4 of Part 2 of Schedule 7 to the Act (State retirement pensions)—

(a) the man is in receipt of a pension from the scheme and has not attained pensionable age but would have attained pensionable age if he were a woman; and

(b) an additional amount of pension is paid to the man which does not exceed the amount of Category A retirement pension that would be payable to a woman with earnings the same as the man’s earnings in respect of his period of pensionable service under the scheme (assuming that the requirements for entitlement to Category A retirement pension were satisfied and a claim made).

Exceptions to the sex equality rule: effect of indexation

3. —(1) The following circumstances are prescribed for the purposes of paragraph 4 of Part 2 of Schedule 7 to the Act (state retirement pensions)—

(a) the scheme is a salary-related contracted-out scheme under which the annual rate of a pension payable to or in respect of a member is increased by more than it would have been increased had the recipient been of the other sex; and

(b) the amount by which the pension increase exceeds any increase that would have applied had the member been of the other sex, does not exceed the relevant amount.

(2) In this regulation, the relevant amount means the amount by which X exceeds Y where—

• X is the amount by which the additional pension of a Category A retirement pension attributable to the member’s earnings factors during the member’s period of pensionable service under the scheme would have been increased following an order made under section 150(9) of the Social Security Administration Act 1992( 9 ) if the member had been of the other sex; and

• Y is the amount (if any) by which the member’s entitlement to the additional pension of a Category A retirement pension attributable to the member’s earnings factors during the member’s period of pensionable service under the scheme is increased following an order made under section 150(9) of that Act.

Exceptions to the sex equality rule: use of actuarial factors which differ for men and women

4. —(1) The factors prescribed for the purposes of paragraph 5(1) of Part 2 of Schedule 7 to the Act (actuarial factors) are actuarial factors which differ for men and women in respect of the differences in the average life expectancy of men and women and which are determined with a view to providing equal periodical pension benefits for men and women.

(2) The following benefits are prescribed for the purposes of paragraph 5(2) of Part 2 of Schedule 7 to the Act—

(a) a lump sum payment which consists of a commuted periodical pension or part of such a pension;

(b) a periodical pension granted in exchange for a lump sum payment;

(c) money purchase benefits within the meaning of section 181(1) of the Pension Schemes Act 1993( 10 );

(d) transfer credits and any rights allowed to a member by reference to a transfer from a personal pension scheme;

(e) a transfer payment including a cash equivalent within the meaning of section 94 of the Pension Schemes Act 1993( 11 );

(f) a periodical pension payable in respect of a member who opts to take such benefits before normal pension age or in respect of a member who defers taking such benefits until after normal pension age;

(g) benefits payable to another person in exchange for part of a member’s benefits and the part of the member’s benefits given up for that purpose.