The Occupational Pension Schemes (Contracting-out and Modification of Schemes) (Amendment) Regulations 2012 – public consultation

This consultation sought views on proposed changes to contracting-out regulation:

• to increase the amount of the compound interest used in the fixed rate revaluation of Guaranteed Minimum Pension for early leavers from 6 April 2012 to 4.75 per cent
• to introduce a regulation to allow trustees of formerly contracted-out defined contribution occupational pension schemes to change their scheme rules to take into account the abolition of ‘protected rights’ after 6 April 2012.

The consultation also advised of a technical drafting correction to the Occupational Pension Schemes (Contracting-out) Amendment Regulations 2011 (SI 2011/ 1294), which comes into force on 1 October 2011. The correction provides clarification for actuaries certifying that contracted-out salary-related occupational pension schemes meet the contracting out conditions.