Hogan Lovells

Key Dates

Consultation and draft regulations issued on 10 April 2017. Consultation ended on 23 April 2017.

Consultation response issued on 27 April 2017.

The Contracting-out (Transfer and Transfer Payment) (Amendment) Regulations 2017/600 in force on 3 July 2017.


Summary

The DWP has issued final regulations to allow the transfer of pensions in payment which include guaranteed minimum pensions (GMPs) and / or section 9(2B) rights to schemes which have never been contracted-out, in limited circumstances. The regulations were finalised following a short consultation.

The draft regulations were issued to amend existing legislation which provided that pensions in payment which include GMPs / section 9(2B) rights could only be transferred to a scheme which has formerly been contracted-out. In contrast, transfers of deferred members' contracted-out rights can be made with consent to a scheme which has never been contracted-out.

As amended, the Contracting-out (Transfer and Transfer Payment) Regulations 1996/1462 will allow transfers of GMPs / section 9(2B) rights to a scheme which has never been contracted out when all of the following conditions are met:

Transfers of contracting-out rights without consent

The DWP has confirmed that it will consider the issue of bulk transfers of contracted-out rights without consent to schemes which have never been contracted-out later in 2017.



Date Accessed: 03/12/2021