delete The Pensions Act 2014 (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order 2016
This Order makes consequential amendments to numerous pension regulations following the abolition of contracting-out for salary-related pension schemes under the Pensions Act 2014. It updates definitional references (including substituting 'scheme that was a salary-related contracted-out scheme' for outdated terminology), provides transitional savings provisions preserving old rules for transfers and transactions that occurred before the 'second abolition date', and modifies regulations governing transfers of accrued rights, guaranteed minimum pensions, scheme winding up, employer debt, and pension protection fund entry. The amendments span multiple regulatory frameworks and take effect across staggered dates from April 2016 to April 2021.
This Order perpetuates the bureaucratic architecture of contracting-out in afterlife rather than liberating pension schemes from it. While the Pensions Act 2014 nominally abolished contracting-out, this Order retains the complex framework through savings provisions, definitional linkages, and transitional rules that continue to impose compliance costs on pension trustees, employers, and administrators. The phrase 'scheme that was a salary-related contracted-out scheme' binds current operations to historical status determinations, requiring ongoing record-keeping, HMRC reconciliation services, and legal compliance for schemes merely because they once participated. Genuine deregulation would have severed these connections entirely rather than grafting them into new regulatory text. Britons are worse off because these amendments create permanent administrative burden tied to a policy that has been abolished, without providing a clean break that would enable innovation and simplification in occupational pension provision.