The National Insurance (Non-participation—Assurance of Equivalent Pension Benefits) Regulation 1960

• (3) References in this regulation to the appropriate recognised superannuation scheme shall, in cases where the recognised superannuation scheme by virtue of which the certificate under Part II of the Act of 1959 relating to a person's employment was in force was not the same throughout the period of his service, include, as respects any part of that period, a reference to the scheme by virtue of which the certificate was in force during that part; and, in such cases, instead of a single certificate of assurance relating to the entire period, there may be delivered two or more certificates of assurance relating to parts of the period given by the responsible paying authorities of the schemes concerned, so, however, that the periods to which such certificates relate must between them comprise the entire period of service.

• (4) In the application of proviso (ii) to paragraph (1)(b) of this regulation to a case to which the last preceding paragraph applies, the reference to the end of the period of service shall be construed in relation to all the certificates as a reference to the end of the entire period of service.

8

• (1) For the purpose of determining any question whether, at the end of a person's period of service in a non-participating employment, an insured person is assured of equivalent pension benefits in respect of it, his employer in that employment shall furnish to the Minister a copy of any certificate of assurance delivered by him to the insured person in respect of the period of service, and such other certificates, documents, information and evidence as the Minister may reasonably require.

• (2) Any responsible paying authority by whom a certificate of assurance has been issued in accordance with the requirements of the foregoing regulation shall inform the Minister of any change in their name or description or principal pace of business, as soon as may be practicable after the change.

9

For the purpose of regulation 7 of these regulations, the following option if exercised, or any of the following things if done, in accordance with the rules of the appropriate recognised superannuation scheme, after the end of a person's service in a non-participating employment, in relation to his retirement benefits in respect of that service, shall, if exercised or done not later than the end of the assurance period ..., be treated as having effect from the end of that service, that is to say—

• (a) any option exercised by the employer or that person;

• (b) any other thing done under or in respect of any trust, contract of assurance, insurance policy or annuity contract relating to the equivalent pension benefits;

• (c) the payment of any arrears of contributions by anyone liable or entitled to pay them;

• (d) the admission or re-admission of that person to membership of the said scheme or other qualification for benefit thereunder where his membership had ceased or the said scheme had become the appropriate recognised superannuation scheme in relation to him before the end of the period of his service.

10

• (1) For the purpose of paragraph (b) of subsection (4) of section 9 of the Act of 1959 (which paragraph provides for prescribing the period within which a person, on the coming to an end of service in one non-participating employment, must enter another non-participating employment, if the two employments are to be treated as a single continuous employment as provided by that subsection) the prescribed period shall be until the end of the assurance period relating to the previous employment.

• (2) The provisions of the said subsection (4) (which provides that, for the purpose of any liability to make a payment in lieu of contributions, two employments are in certain cases to be treated as a single continuous employment) shall not apply, save in a case where both employments are under the same employer, unless the certificate described in regulation 11 is given and delivered in accordance with that regulation.

• (3) Paragraph (c) of the said subsection (4) (which requires that service in the previous employment is service qualifying a person for equivalent pension benefits under the recognised superannuation scheme relating to his new employment) shall not apply in any case where—

• (a) the previous employment and the new employment are both employments of any class to which section 12 of the Act of 1959 (which relates to certain statutory superannuation schemes) applies, and are in different such classes; and

• (b) the appropriate Minister has in each case by regulations under subsection (1) of the said section 12 directed that elections with a view to the issue, variation, cancellation or surrender of certificates under Part II of the Act of 1959 shall be made and revoked by him instead of by the employer; and

• (c) certificates under the said Part II relating to those employments have been issued to the appropriate Ministers and remain in force, and the recognised superannuation schemes by virtue of which those certificates were issued were established by or under the enactments specified in the Second Schedule to the Act of 1959 in the entries relating respectively to the previous employment and the new employment; and

• (d) such provision is made by those schemes (including provision by the scheme relating to the new employment for taking into account in any manner the service in the previous employment) that, were they to be treated as together constituting a single recognised superannuation scheme relating to both employments, the provisions of the said paragraph (c) would be satisfied.

• (4) Where two or more employments are treated as a single continuous employment by virtue of the foregoing paragraph, the reference in paragraph (1) of regulation 7 to the appropriate recognised superannuation scheme shall include a reference to a recognised superannuation scheme relating to a previous employment making such provision as falls to be taken into account under sub-paragraph (d) of the foregoing paragraph, and the provisions of regulation 7 and the Schedule shall apply subject to the necessary modifications.

11

• (1) Where in any case the provisions of paragraphs (a), (b), (c) and (d) of subsection (4) of section 9 of the Act of 1959 are satisfied or, if the provisions of paragraph (c) of the said subsection do not apply by virtue of paragraph (3) of regulation 10 of these regulations, the provisions of paragraphs (a), (b) and (d) of the said subsection (4) are satisfied, the certificate described in the following provisions of this regulation shall, save in a case where both employments are under the same employer and the same recognised superannuation scheme relates to both or where the Minister has given a direction to the contrary under regulation 11A,, be given and delivered in accordance with those provisions.

• (2) Subject to the provisions of the next following regulations, the certificate referred to in the foregoing paragraph shall be given by the responsible paying authority of the recognised superannuation scheme relating to the new employment and shall contain the following particulars—

• (a) the period of service in the previous employment (including any earlier employment treated as continuous therewith under subsection (4) of section 9 of the Act of 1959);

• (b) the equivalent pension benefits for which the service in the previous employment qualifies the person employed under the recognised superannuation scheme relating to the new employment (or if paragraph (3) of regulation 10 applies, under the recognised superannuation schemes relating to both employments) and the manner in which it so qualifies him, and, where the qualification is contingent on the like assumptions in relation to his new employment as are to be made under subsections (2) and (3) of section 8 of the Act of 1959, what those assumptions are; and

• (c) if that scheme is a non-statutory scheme, the manner in which the provisions of paragraph (b) of subsection (4) of section 8 of the Act of 1959 (which contains conditions under which a scheme or arrangement, other than one established by Act of Parliament or of the Parliament of Northern Ireland or other instrument having the force of law, is a recognised superannuation scheme) are satisfied in relation to those benefits.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) A certificate as provided in paragraph (1) of this regulation shall be given by the responsible paying authority to the employer in the previous employment not later than the end of the assurance period relating to the previous employment, and that employer shall deliver it to the Minister and a copy thereof to the insured person not later than the end of that period.

12

• (1) Notwithstanding that at the end of a person's service in a non-participating employment he is not assured of equivalent pension benefits in respect of it, no payment in lieu of contributions shall be payable in respect of it if at all times during his period of service in that employment he was serving also in some other non-participating employment under the same employer, being an employment in which he continues to serve after the end of that period or in respect of which he is or was at the end of his service in it assured of equivalent pension benefits.

• (2) Where on the coming to an end of a person's service in a non-participating employment a payment in lieu of contributions becomes payable in respect of it, but during part of his period of service in that employment he was serving also in some other such non-participating employment as aforesaid under the same employer, then that part of the period shall not be taken into account in fixing the amount of the payment or the graduated contributions attributable to it.

• (3) Where under paragraph (2) of this regulation part only of a person's period of service in an employment is to be taken into account in fixing the amount of any payment in lieu of contributions in respect of that service, then that part only of the service shall be taken into account for the purpose of paragraph (c) of subsection (4) of section 9 of the Act of 1959.

• (4) Where on the coming to an end of a person's service in a non-participating employment he continues to serve in another non-participating employment under the same employer, subsection (4) of section 9 of the Act of 1959 shall apply as it applies where a person enters a new employment on the coming of an end of his previous employment (the reference in sub-paragraph (c) of that subsection to the new employment being construed for this purpose as referring to the continuing employment).

13

• (1) Where during any period a person serves at the same time in two non-participating employments under different employers, and after the coming to an end of his service in one of the employments a payment in lieu of contributions becomes payable on the coming to an end of his service in the other, then (subject to paragraph (3) of this regulation) subsection (3) of section 7 of the act of 1959 shall apply as respects that payment as if in relation to contribution weeks beginning in that period the reference in paragraphs (a) and (b) to contributions payable by the insured person were omitted (and the graduated contributions he is to be treated under that subsection as having paid shall be reduced accordingly).

• (2) Where paragraph (1) of this regulation has effect to reduce a payment in lieu of contributions, then for the purpose of any right of recovery or retainer under section 10 of the Act of 1959 in respect of that payment the period referred to in the said paragraph (1) shall be deemed not to have been taken into account in fixing the amount of the payment.

• (3) A payment in lieu of contributions in respect of service in any employment shall not be reduced under this regulation by reference to any period of service in another employment, if paragraph (1) of regulation 12 applies to prevent the making of a payment in lieu of contributions in respect of the service in the other employment, or if paragraph (2) of that regulation applies to prevent that period being taken into account in fixing the amount of such payment.

14

• (1) Where (by reason of a person's serving at the same time in two non-participating employments under different employers) subsection (4) of section 9 of the Act of 1959 may apply so as to treat a previous employment under one of the employers as a single continuous employment with each of those two employments, then the said subsection (4) shall apply so as to treat the previous employment as a single continuous employment only with that one of the said two employments which is under the employer in that previous employment or, if the employers so agree and give the Minister notice of their agreement, only with the other of those two employments.

• (2) For the purpose of paragraph (1) of this regulation, where on the coming to an end of a person's service in any employment he enters another employment within the period prescribed for the purpose of the said subsection (4) in paragraph (1) of regulation 10, he shall be treated as having served in the new employment from the coming to an end of the previous employment.

15

Where a person's service in two non-participating employments comes to an end simultaneously, and in respect of his service in one or both he is not assured of equivalent pension benefits, then regulations 12 and 13 of these regulations shall apply as if his service in one had come to an end immediately before that in the other, and—

• (a) if he is assured of equivalent pension benefits in respect of his service in one, that service shall be treated as coming to an end the earlier; and

• (b) if not, the service to be so treated shall be that which the employer or employers concerned may select or which, in default of such a selection, the Minister may in his discretion think fit.

16

For the purpose of subsection (3) of section 10 of the Act of 1959 (which subsection provides for increasing by such amount as may be prescribed the amount which may be recovered under that section by an employer, on making a payment in lieu of contributions, from a refund of certain payments made under a recognised superannuation scheme, in certain cases where under subsection (4) of section 9 of the Act of 1959 the insured person's service in any previous employment is treated in fixing the payment in lieu of contributions as service in the employment in respect of which the refund is made) a sum equal to one half of the amount of the payment in lieu of contributions that would have fallen to be made on the coming to an end of the insured person's service in that previous employment if that service had not been so treated under the said subsection (4).

17

• (1) Where on the coming to an end of an insured person's service in a non-participating employment he (or, by virtue of a connection with him, any other person) is or may be entitled to a refund of any payments made under a recognised superannuation scheme by or in respect of him towards the provision of benefits under the scheme, the following provisions of this regulation shall apply for the purpose of enabling any right of recovery conferred by section 10 of the Act of 1959 (which relates to an employer's rights against an insured person in respect of a payment in lieu of contributions) to be exercised.

• (2) Where in such a case a payment in lieu of contributions falls to be made in respect of the insured person under the Act of 1959 or would so fall to be made if the insured person were not assured of equivalent pension benefits in respect of his period of service, the person liable for the refund shall not, after he has been given such notice for the purpose of this regulation as is hereinafter described (hereafter in this regulation called a ““notice of delay””), make the refund in whole or in part until the expiration of the period of delay specified in paragraph (3) of this regulation:

• (3) The period of delay referred to in paragraph (2) of this regulation shall be the period beginning with the giving of the notice of delay and ending with—

• (a) the expiration of four weeks after the making of the payment in lieu of contributions or any part of it; or

• (b) the expiration of four weeks after the end of the assurance period; or

• (c) such date as the Minister may direct having regard to any evidence that the insured person is assured of equivalent pension benefits in respect of his period of service;

whichever shall first occur.

• (4) A notice of delay shall be a notice in writing given by the person who is or would be liable for the payment in lieu of contributions (hereafter in this regulation called ““the employer””), relating either to a particular case or to a class or classes of cases and containing the following particulars:—

• (a) the name of the insured person or such particulars as will sufficiently identify the class or classes of cases concerned;

• (b) such particulars as will sufficiently identify the refund or refunds concerned; and

• (c) a memorandum in a form approved by the Minister giving brief particulars of the effect of paragraphs (2) and (3) of this regulation.

• (5) Every employer who has given a notice of delay shall from time to time inform any person to whom he has given that notice of the ending of the period of delay in relation to any refund affected by the notice.

18

• (1) Subject to the following provisions of this regulation, the Minister on application being made to him, may, for the purpose of paragraphs (2) and (3) of regulation 2, in any particular case or class of cases extend the period of thirteen contribution weeks referred to in those paragraphs for such further period or periods as he shall from time to time direct, so, however, that no such extension—

• (a) shall unless the Minister in exceptional circumstances so allows prolong the said period to more than one hundred and thirty weeks in all; or

• (b) shall be granted save in the following cases, that is to say,

• (i) the insured person's incapacity for work, where the Minister is satisfied that but for the incapacity the employment would continue or have continued; or

• (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (iii) any other case in which the Minister, having regard to whether the insured person retains membership of the recognised superannuation scheme relating to the employment or other qualification for benefit thereunder and to any other relevant circumstances, is satisfied that the interruption can be regarded as temporary.

• (2) Subject as aforesaid, the Minister, on application being made to him, may, for the purpose of all or any of the provisions of these regulations which require or authorise or make other provision with respect to the making of a payment in lieu of contributions, the giving of any notice or the doing of any other thing within (or not later than the end of) an assurance period, in any particular case or class of cases extend the assurance period for such further period or periods as he shall from time to time direct, so, however, that no such extension shall prolong the assurance period to more than sixty-five weeks in all unless the Minister is satisfied that the extension is required for the purpose only of remedying an error or omission made in seeking to comply with the provisions of these regulations and without failure to exercise due care and diligence .

• (3) In so extending any period the Minister may impose a condition that the employer or the insured person shall furnish the Minister with such information and give him notice of such events as he may reasonably require for the purpose of any provision of these regulations, and every such person shall observe or perform any such condition accordingly.

• (4) An extension of any period under this regulation shall cease if the Minister by written notice to the employer so directs or if the insured person dies....

• (5) Where at the end of any extension allowed in accordance with the provisions of paragraph (1) of this regulation no further such extension is allowed, but a new period of contribution liability has not begun in relation to the employment and the insured person is still living, the employment shall be treated, for the purpose of the provisions of Part II of the Act of 1959 relating to the making of a payment in lieu of contributions at the end of a person's period of service in a non-participating employment, as having come to an end upon the termination of the period of contribution liability or upon such later date, not being later than the end of the extension, as the Minister shall direct; and where the date on which the employment is so treated as having come to an end is a later date than the termination of that period of contribution liability, the provisions of regulation 3 shall apply to any contribution weeks in the intervening period as though they were weeks during which the employment would, apart from that regulation, fall to be treated for that purpose as having continued under paragraph (3) of regulation 2:

• (5A) If the employer so requests, the provisions of the last preceding paragraph shall apply at the end of the period of 13 weeks referred to in regulation 2(2) and (3) where no extension is allowed in accordance with the provisions of paragraph (1) of this regulation, as they apply at the end of such an extension.

• (6) In relation to an employment of any class to which section 12 of the Act of 1959 (which relates to certain statutory superannuation schemes) applies, or to an employment where the appropriate recognised superannuation scheme is established by or under the Superannuation Acts or by or under those Acts as applied by any enactment or other instrument having the force of law or by any instrument to which paragraph (3) of regulation 3 of the Benefits and Schemes Regulations applies, the foregoing provisions of this regulation shall be without prejudice to any special arrangements made by the Minister with the consent of the Treasury providing for the time and manner of any payment in lieu of contributions in such a case or otherwise concerning its making.

19

If any person fails without reasonable cause to give notice in accordance with the requirements of regulation 4 or to observe or perform any condition imposed on him in accordance with the requirements of paragraph (3) of regulation 18, he shall for such offence be liable on summary conviction to a penalty not exceeding £10, or where the offence consists of continuing any such failure after conviction thereof, £10 together with a further £10 for each day on which it is so continued.

Exemption from duty to give notice of end of employment or certificate under regulation 11

11A

Where, apart from this regulation, a certificate is required to be given and delivered under regulation 11, the Minister may, where either–

• (a) the recognised superannuation scheme relating to the new employment is a statutory scheme; or

• (aa) the recognised superannuation scheme relating to the previous employment is a statutory scheme and the provisions of section 9(4)(c) of the Act of 1959 are satisfied by virtue of either-

• (i) rules made under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948 (pensions of persons transferring to different employment); or

• (ii) regulation 78 of the National Health Service (Superannuation) Regulations 1961 or regulation 76 of the National Health Service (Superannuation) (Scotland) Regulations 1961 (rights on transfer to other employment); or

• (b) both employments are under the same employer, but the same recognised superannuation scheme does not relate to both; or

• (c) the same recognised superannuation scheme relates to both employments, but the previous employment and the new employment are under different employers;

by a direction in writing in such cases as he may direct and subject to such conditions as he may impose exempt the employer in the previous employment from his duty to give a notice of the end of that employment under regulation 4 or (whether so exempting that employer or not) dispense with or modify the requirements of regulation 11 concerning the giving and delivery of a certificate thereunder.

Payments in lieu of contributions in cases of double employment under different employers

Application of section 9(4) of the Act of 1959 in cases of double employment

Payment in lieu of contributions where two employments end simultaneously

Calculation of equivalent pension benefits

6A

• (1) For the purposes of the provisions of Part II of the Act of 1959 relating to the making of a payment in lieu of contributions at the end of a person's period of service in a non-participating employment, the formula in section 8(1)(d) of that Act (which defines equivalent pension benefits for the purpose of that Part) shall be converted to the formula contained in the following provisions of this regulation.

• (2) Subject to the following provisions of this regulation, in respect of any period of service of a number of weeks shown in the second column of Schedule 2 of these regulations, the pension or the said part of it (referred to in section 8(1)(d)), apart from any period before insured pensionable age, must be of an amount not less than, in the case of a man, the amount shown in the first column of the appropriate Part of that Schedule, and, in the case of a woman, the amount shown in the third column of the appropriate Part of that Schedule, in each case opposite to that number of weeks in the second column.

• (3) Where a period of service does not amount to an exact number of weeks, it shall be treated for the purpose only of applying the formula in the preceding paragraph, as amounting to that number of weeks which is equal to the number of contribution weeks beginning in the period.

• (4) Where a period of service does not fall wholly within the period to which any one Part of Schedule 2 is appropriate, each Part shall be applied separately to any portion of the period of service to which it is appropriate and the resulting equivalent pension benefits shall be added together; and for this purpose a week of service which includes the last date to which a Part is appropriate but does not end on that date shall be treated as if it fell wholly after that date.

SCHEDULE 2 — MINIMUM ANNUAL RATES OF PENSION REQUIRED TO CONSTITUTE EQUIVALENT PENSION BENEFITS

Part I — (Applying to service on or after the 3rd April 1961 and not later than the 5th January 1964)

Part II — (Applying to service on or after the 6th January 1964)

Interruptions in non-participating employment due to absence from Great Britain

20

• (1) The foregoing provisions of these regulations shall, in relation to persons who are or have been outside Great Britain while insured under the Act, have effect subject to the following provisions of this regulation.

• (2) Where an insured person’s employment ceases to be a non-participating employment by reason of his being employed outside Great Britain and, apart from this paragraph, the period of his service in that employment would fall, by virtue of paragraph (7)(a) of regulation 2 of these regulations, to be treated, for the purpose of the provisions of Part II of the Act of 1959 relating to the making of a payment in lieu of contributions, as having then come to an end–

• (a) the said paragraph (7)(a) shall not apply; and

• (b) if immediately before that cessation a period of contribution liability was current in relation to the employment, the provisions of paragraphs (1) to (6) of regulation 2 of these regulations shall, whether or not that period terminated at the end of the contribution week in which the employment last was a non-participating employment, apply as if such a termination had occurred at the end of that week.

• (3) A contribution week beginning after an insured person’s employment ceases to be a non-participating employment by reason of his being employed outside Great Britain shall not be included in reckoning a period of contribution liability in that employment for the purpose of these regulations, unless not later than the beginning of that week the employment has again become a nonparticipating employment.

• (4) Where an insured person’s employment ceases to be a non-participating employment by reason of his being employed outside Great Britain and thereafter again becomes a non-participating employment, then, notwithstanding the provisions of section 9(2) of the Act of 1959 (which provides that, for the purpose of certain provisions of Part II of that Act, if an employment becomes or ceases to be a non-participating employment in the course of a person’s service in it, his service before and after the time when it does so shall be treated as service in different employments), the insured person’s service before the employment ceased to be, and after it again becomes, a non-participating employment shall not be treated as service in different employments.

• (5) Subject to the following provisions of this regulation, the power conferred on the Minister by regulation 18(1) of these regulations to extend the period of thirteen contribution weeks referred to in regulation 2(2) and (3) of these regulations (which period, including any extension thereof, is hereafter in this regulation referred to as a “period of interruption”) may, in the case of an insured person who is absent from Great Britain in the employment or in any other employment under the same employer, be exercised without regard to the conditions of sub-paragraphs (a) and (b) of regulation 18(1).

• (6) Subject as aforesaid, any extension allowed by virtue of paragraph (5) of this regulation shall cease if the insured person returns to Great Britain, but in that event the Minister may, notwithstanding the provisions of the said subparagraphs (a) and (b), allow such further extension or extensions under regulation 18(1) as he may think fit: Provided that no extension shall be allowed by virtue of this paragraph for more than 130 weeks after the insured person’s return to Great Britain.

• (7) For the purposes of this regulation, an insured person who is in Great Britain on holiday with pay from an employment outside Great Britain shall be treated as absent from Great Britain in that employment, and, if he remains in Great Britain after the end of his period of holiday with pay, he shall be treated as then returning to Great Britain.

• (8) The Minister, in deciding whether to allow any extension by virtue of paragraph (5) or paragraph (6) of this regulation, shall have regard to whether the insured person retains membership of the recognised superannuation scheme relating to the employment or other qualification for benefit thereunder, and to any other relevant circumstances.

• (9) Nothing in the proviso to regulation 3 of these regulations shall require the exclusion from a notice of any contribution weeks in a period of interruption, being contribution weeks in or preceding an extension allowed by virtue of paragraph (5) of this regulation: Provided that this paragraph shall not apply if a new period of contribution liability began in relation to the employment at the end of the period of interruption and the insured person was absent from Great Britain in the employment in the first week of that period of contribution liability.

Calculation of graduated contributions for the purposes of payments in lieu of contributions

21

For the purposes of section 58 of the National Insurance Act 1965, as amended (payments in lieu of contributions) the graduated contributions (payable by the insured person and his employer) referred to in paragraph (a) of that section shall, in respect of any contribution week beginning after 5th October 1966, be taken in each case as 7s. 8d.