Getting out of contracting-out - consultation deadline 16 November

26 October 2015

As you might imagine, and as we approach the end of Contracting-out, amending all relevant legislation presents Government with a fair logistical challenge. The latest public consultation is asking for views on the “2016 order” aka The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments) Order 2016, which, amongst other items and for the most part, contains ‘minor and technical changes to other secondary legislation’ to take account of the end of contracting-out.

The 2016 Order is separated into six parts. Part 1 provides details of citation and the dates the various parts of the regulations come into force. Parts 2 to 6 detail:

  • Part 2 - Amendments coming into force immediately before 6 April 2016
  • Part 3 - Amendments coming into force on 6 April 2016
  • Part 4 - Amendments coming into force on 6 April 2017
  • Part 5 - Revocations coming into force on 6 April 2019
  • Part 6 – Amendments coming into force on 6 April 2021

Full details of the changes being made are available within the consultation paper along with the draft order.

Two questions are being asked within the consultation:

Consultation Question 1

Do you agree that:

a) the amendments in the 2016 Order are necessary as a consequence of contracting-out ending on 5 April 2016?

b) they protect members’ accrued rights?

c) they ensure schemes are able, post abolition, to carry out their administrative functions?

Consultation Question 2

In addition to the amendments to the legislation set out in this consultation, is there any further legislation that you consider should be revoked, amended or saved as a consequence of the ending of contracting-out?

The closing date for making a response is 16 November. Responses should be made to [email protected].

If you have any comments or feedback that you wish to feed directly to CIPP Policy & Research team please contact [email protected] directing your email FAO Samantha Mann, Senior Policy & Research Officer.