
1 

(1) These regulations may be cited as the
National Insurance (Non-participation—Transitional Provisions) Regulations
1974 and shall come into operation in the case of 
regulation 9(3) on 6th January 1975, and in
the case of the remainder of the regulations on 6th April 1975.
(2) In these regulations, unless the context
otherwise requires—
 “the Act”
means the 
National Insurance Act 1965;
 “the 1973 Act”
means the Social Security
Act 1973;
 “the settlement period”
 has the meaning given by 
regulation 2 below;
 “the shorter settlement period”
 means the settlement period as shortened
in accordance with regulation 2(2)
below, whether or not extended in accordance with 
regulation 2(4);
 “the Assurance Regulations”
 means the 
National Insurance (Non-participation—Assurance of Equivalent Pension
Benefits) Regulations 1960, as amended;
 “the Miscellaneous Provisions
Regulations” means the National Insurance (Graduated Contributions
and Non-participating Employments— Miscellaneous Provisions) Regulations
1960,
as amended;
and other expressions have the same meaning as in the Act.
(3) Any reference in these regulations to
any provision made by or contained in any enactment or instrument shall, except
in so far as the context otherwise requires, be construed as a reference to
that provision as amended or extended by any enactment or instrument and as
including a reference to any provision which may re-enact or replace it.
(4) The rules for the construction of Acts
of Parliament contained in the 
Interpretation Act 1889 shall apply for the
purposes of the interpretation of these regulations as they apply for the
purposes of the interpretation of an Act of Parliament.
2 

(1) “The
settlement period” means a period
beginning on 6th April 1975 and ending on 5th April 1980 unless the period
is shortened under paragraph (2)
or extended under paragraph (4)
below.
(2) Subject to 
paragraph (3) below, in a case where any of
the following events occurs, namely—
(a) the service with the employer is terminated
(whether through the death of the insured person or the employer, the transfer
of the employer's business or otherwise);
(b) the pension scheme is wound up or the
insured person ceases to be a member of it; or
(c) the employer becomes insolvent,the settlement period shall end 26 weeks after the event or on
5th April 1980, whichever is earlier.
(3) In a case to which 
paragraph (2) above applies, where, before
the settlement period (including any extension thereof which is granted under 
paragraph (4) below) would, but for this paragraph,
have ended, the following conditions are satisfied, namely—
(a) the insured person has continued or resumed
his service with the employer or entered service with the employer's successor
or (where the employer is an insolvent company) its receiver or manager appointed
by order of the court in accordance with the provisions of the 
Companies Act 1948; and
(b) the employer or his successor, receiver
or manager, as the case may be, has assumed or resumed responsibility for
the provision of the equivalent pension benefits accrued to the insured person
up to 5th April 1975; and
(c) the insured person is a member of a pension
scheme which was a recognised superannuation scheme for the purposes of 
Part III of the Act on 5th April 1975 and which
has under its own rules accepted his service in non-participating employment
as qualifying him for the equivalent pension benefits accrued to him up to
that date,the settlement period shall end on 5th April 1980 unless it again
falls to be shortened under paragraph (2)
above or is extended, or again extended, under 
paragraph (4) below.
(4) The settlement period may for good cause
be extended by the Secretary of State, on application being made to him, beyond
the date on which it would have ended under 
paragraph (1), (2)
or (3) (as the case may
be) above, for such further period or periods as he may direct, so however
that no such extension shall prolong the settlement period by more than 52
weeks unless the Secretary of State is satisfied that the extension is required—

(a) for the purpose both of enabling an employee
to become entitled to short service benefit under 
paragraph 6(1) of Schedule 16 to the 1973 Act,
and of assuring him of equivalent pension benefits; or
(b) for the purpose of remedying an error
or omission made in seeking to comply with the provisions of the Assurance
Regulations or these regulations and without failure to exercise due care
and diligence,in which case the extension shall end not later than 5th April
1983.
(5) For the purposes of 
paragraph (2)(a) above, service with the employer
is to be treated as terminated—
(a) when the employee's contract of service
has expired or been terminated, or, in the absence of a contract of service,
when the service itself has ended; or
(b) when the employee reaches the age of
70 if a man, or 65 if a woman,whichever is the earlier.
3 
For the purposes of facilitating the winding up of the system of
insurance under the Act and the disposal of matters connected with that system,
and of temporarily retaining for transitional purposes the effect of certain
provisions of the Act which are repealed by 
section 100(2)(b) of and Schedule 28
 to the 1973 Act and of certain regulations
made, or having effect as if made, by virtue of those repealed provisions,
there shall continue in force the provisions of the Act specified in the first
column of Schedules 1 and 2
below, those specified in Schedule 1
without modifications, and those specified in 
Schedule 2 with the modifications specified
in the following provisions of these regulations; and the regulations specified
in Schedule 3
below shall be modified as mentioned in the following provisions of these
regulations.
4 

(1) Section
58 of the Act shall be so modified as to include
provision that, subject to the provisions of 
paragraphs 15 and 16 of Schedule 11 to the
Act and of this regulation, where an insured person's period of service in
a non-participating employment comes to an end by reason of the repeal of 
section 56(1) of the Act or by reason of the
provisions of regulation 2(2)
of the Assurance Regulations as modified by 
regulation 9(2)(a) (in the cases referred to in 
regulation 9(8)(a)) or 9(2)(b)
below, a payment in lieu of contributions (of the amount set out in 
section 58) shall, except where the insured
person dies before 6th July 1975, be due from his employer to the National
Insurance Fund at the end of the settlement period unless at any time during
that period the insured person has become, and has remained, assured of equivalent
pension benefits.
(2) In a case to which 
paragraph (1) above applies, and in which a
payment in lieu of contributions is made and subsequently, within the settlement
period, the insured person becomes assured of equivalent pension benefits,
the payment may be refunded to the employer, on application by him in writing
to the Secretary of State.
(3) For the purposes of this regulation,
where an insured person dies without being assured of equivalent pension benefits,
he shall be deemed to have been so assured immediately before his death and
to have remained so assured until the end of the settlement period if it is
shown to the satisfaction of the Secretary of State that his employer intended
so to assure him within the settlement period; and for the purposes of this
paragraph the Secretary of State may require the employer to furnish a certificate
on a form approved by the Secretary of State.
5 

(1) Section
59(4) of the Act shall be so modified as to
apply only to cases where a person's service in non-participating employment
came to an end and he entered another non-participating employment before
6th April 1975.
(2) Section
59(7) of the Act shall be so modified, in its
application to cases where service in a non-participating employment has come
to an end in the circumstances mentioned in 
regulation 4 above, as to provide that in such
cases a payment in lieu of contributions shall be due in accordance with the
provisions of section 58
as modified by the said regulation 4.

6 

(1) This regulation applies to circumstances
where at any time after the coming to an end of an insured person's service
in a non-participating employment in the circumstances mentioned in 
regulation 4(1) above—
(a) he (or, by virtue of a connection with
him, any other person)—is entitled to a refund of any payments made
under the recognised superannuation scheme by or in respect of him towards
the provision of benefits under the scheme; and
(b) either he has been assured of equivalent
pension benefits, or a payment in lieu of contributions has been or falls
to be made in respect of him.
(2) Section
60(1) of the Act shall be so modified as to
include provision that in the circumstances specified in 
paragraph (1) above, the person who has made
or is liable to make the payment in lieu of contributions mentioned in 
paragraph (1)(b) above, or who would be so
liable had the insured person not been assured of equivalent pension benefits,
shall, subject to the provisions of that section as modified by the provisions
of this regulation, be entitled—
(a) having made that payment, or any part
of it, to recover one half of the sum paid by him from the person liable for
the refund mentioned in paragraph (1)(a)
above; or, as the case may be,
(b) to recover one half of the value of the
payment in lieu which he would have had to make, if the insured person had
not been assured of those benefits, from the person liable for that refund,
provided that the amount recoverable shall not exceed
the amount of the refund, or so much of it as has not been made.
(3) Section
60(2) of the Act shall be so modified as to
provide additionally that where the period for which equivalent pension benefits
have been assured does not coincide with the period in respect of which the
refund is to be made, then (subject to subsection
(3) as modified by 
paragraph (4) of this regulation) the amount
recoverable under section 60
shall be determined by reference to so much of the refund and of the payment
which would have had to be made had the insured person not been assured of
equivalent pension benefits as are referable to the length of time which is
common to both periods.
(4) Section
60(3) of the Act shall be so modified as to
apply additionally to cases where, had the insured person not been assured
of equivalent pension benefits, a payment in lieu of contributions would have
fallen to be made, and under section 59(4)
of the Act the insured person's service in a previous employment would have
been treated in fixing that payment as service in the employment in respect
of which the refund is made.
(5) Section
60(4) of the Act shall be so modified as to
apply additionally to cases where paragraph (2)(b)
 above applies and the person who would have
been liable to make a payment in lieu of contributions had the insured person
not become assured of equivalent pension benefits is himself the person liable
for the refund.
(6) Section
60(6) of the Act shall be so modified as to
apply additionally to cases in which, had the insured person not been assured
of equivalent pension benefits, a payment in lieu of contributions would have
fallen to be made in respect of him and under 
section 59(4) of the Act his service in 2 employments
would have been treated as service in one in fixing that payment.
(7) Section
60(7) shall be so modified—
(a) as to apply additionally to the recovery
of the value of any part of the payment in lieu of contributions which would
have had to be made if the insured person had not become assured of equivalent
pension benefits; and
(b) as to provide that a person shall not
be entitled to recover any part of a payment in lieu of contributions except
in a case to which regulation 7
below applies, or, in any other case, except in accordance with 
section 60 of the Act (as modified by this
regulation).
7 
Where, in respect of service in non-participating employment which
came to an end in the circumstances mentioned in 
regulation 4(1) above, a payment in lieu of
contributions has been made after 5th April 1975, and the person liable for
that payment has not exercised any right of recovery in respect of it under 
section 60 of the Act as modified by 
regulation 6 above, and the insured person
subsequently becomes entitled to pension benefits (which equal or exceed equivalent
pension benefits) in respect of the same service as that which was taken into
account in fixing the payment, and in respect of the same period or any part
thereof, the person liable for the payments shall be entitled to make arrangements,
with the person liable to provide the pension benefits, for the reduction
of those benefits by an amount equal to the amount of equivalent pension benefits
for that period or, as the case may be, that part of that period.
8 
Section 61
of the Act shall be so modified as to apply additionally to payments in lieu
of contributions payable before or by the effect of the receiving order or
death, the award of sequestration, the winding-up order or resolution, or
the appointment of the receiver or taking of possession, as the case may be,
whether or not on the termination of a person's employment.
9 

(1) The provisions of the Assurance Regulations
specified in the following paragraphs of this regulation shall be modified
as mentioned in those paragraphs.
(2) Paragraph
(2) of regulation 2 shall be so modified as
to provide that, for the purposes of that paragraph—
(a) an employment which immediately before
6th April 1975 was, by reason of regulation 2(2)
, not treated as having come to an end, shall
be treated as having come to an end on the termination of the last period
of contribution liability in relation to the employment or, in a case to which 
regulation 18(5) (as modified by paragraph
(18) below) or (5A)
of the Assurance Regulations applies, such later date as may be directed under
the said regulation 18(5)
or (5A); and
(b) any other employment which immediately
before 6th April 1975 had not come to an end shall be treated as having come
to an end on 5th April 1975.
(3) Regulation
2(3) shall be so modified as to have effect
as if the expression “period of contribution
liability”, where it occurs in 
sub-paragraph (a) , included,
in relation to any person's employment, any continuous period of one or more
contribution weeks for which the employer of that person would have been liable
to pay weekly employer's contributions in respect of that employment but for
the provisions of regulation
99(4) of the Social Security (Contributions)
Regulations 1973 as amended.
(4) Regulation
2(4) shall be so modified as to apply only
to cases where the period of 13 weeks referred to in 
regulation 2(2) ended before 5th April 1975,
so however that the period may not be extended beyond that date.
(5) 
Regulation 2(5), (6) and (7) shall be so modified—

(a) that in no case can a period of service
in non-participating employment be treated as having come to an end later
than 5th April 1975; and
(b) as to have effect as if the expression “period of contribution liability” included, in relation to any person's employment, any such continuous
period as is mentioned in paragraph (3)
above.
(6) Regulation
3 shall be so modified—
(a) as to provide that notice may be given
not later than the end of the settlement period in cases to which 
paragraph (8) below applies;
(b) as to apply only in cases where a payment
in lieu is made within the settlement period or the insured person is deemed
to be assured of equivalent pension benefits by virtue of the delivery to
him of a certificate of assurance (within the meaning of 
regulation 7 of the Assurance Regulations but
excluding a notice of entitlement within the meaning of paragraphs (12) and (13) below);
and
(c) that the expression 
“contribution year”, where it occurs in proviso
(a), is to be taken to mean , in the case of a contribution year beginning in 1974, a period
beginning with the first complete contribution week in the month of March,
June, September or December (according as the National Insurance number of
the person concerned ends with the suffix A, B, C or D respectively) and ending
on 5th April 1975.
(7) Regulation
4 shall be so modified as to require the employer
to give notice in writing to the Secretary of State within the settlement
period in cases to which paragraph (8)
below applies.
(8) Regulation
6 shall be so modified as to have effect as
if for the word “assurance” there were substituted
the word “settlement” in the following cases, namely—

(a) cases to which 
paragraph (2)(a) above applies and either—

(i) the period of 13 weeks mentioned in 
regulation 2(2) of the Assurance Regulations
had been extended under regulation 18(1)
of those regulations, or
(ii) the insured person's service with his
employer had not been terminated; and
(b) cases to which 
paragraph (2)(b) above applies.
(9) For the purposes of 
paragraph (8)(a)(ii) above, service with an
employer is to be treated as terminated when the employee's contract of service
has expired or been terminated, or, in the absence of a contract of service,
when the service itself has ended.
(10) In cases to which 
paragraph (8) above does not apply, 
regulation 6 shall be so modified that—

(a) where the insured person dies during
the assurance period, he shall be deemed to have been assured of equivalent
pension benefits at the end of his period of service in non-participating
employment if it is shown to the satisfaction of the Secretary of State that
his employer intended so to assure him within the assurance period; and for
the purposes of this sub-paragraph the Secretary of State may require the
employer to furnish a certificate on a form approved by the Secretary of State;
and
(b) where the insured person, before the
end of the assurance period—
(i) resumes service with the same employer
in an employment which was non-participating, and
(ii) is a member of a pension scheme which
was a recognised superannuation scheme for the purposes of the Act on 5th
April 1975 and which has under its own rules accepted his service in non-participating
employment as qualifying him for the equivalent pension benefits accrued to
him up to that date,the payment in lieu of contributions shall not become due until
the end of the settlement period, and not then if during that period the insured
person becomes, and remains, assured of equivalent pension benefits.
(11) 
Regulations 7 and 8 shall be subject to the
following modifications, namely—
(a) references to having, or being assured
of, equivalent pension benefits at the end of a person's service in a non-participating
employment shall be deemed to include references to having, or being assured
of, such benefits at any time during the settlement period;
(b) references to a certificate of assurance
(except the reference in regulation 8(1)),
or to a certificate of assurance containing the particulars specified in 
Schedule 1 to the Assurance Regulations, shall
be deemed to include references to a notice of entitlement containing the
particulars specified in Schedule 1
to those regulations as modified by paragraph
(12) below;
(c) the reference in 
regulation 7(1)(a) to the appropriate recognised
superannuation scheme shall be deemed to include reference to any scheme which—

(i) was a recognised superannuation scheme
for the purposes of Part III
of the Act on 5th April 1975,
(ii) applies at any time during the settlement
period to the employment of the person in question, being employment in which
he was serving on that date, and
(iii) has accepted responsibility for the
provision of the equivalent pension benefits which have accrued to that person
up to that date;
(d) a scheme to which 
proviso (ii) to regulation 7(1)(b)
 applies shall not be deemed to satisfy the
condition set out in paragraph (1)(b)
if at the end of the period of service the scheme would have ceased to satisfy
the requirements for being a recognised superannuation scheme had the repeals
effected by section 100(2)(b)
of and Schedule 28 to the
1973 Act not taken place; and
(e) the reference in 
regulation 7(2) to the assurance period shall
be deemed to include a reference to the settlement period.
(12) Schedule
1 shall be so modified as to apply to either
a certificate of assurance or a notice of entitlement, so however that in
the application of the Schedule to a notice of entitlement 
paragraph 1 and the references in paragraphs 2 and 3 to retirement
benefits or part of them and the date from which they are payable shall not
apply, and the reference in paragraph 4
to a certificate shall be deemed to be a reference to a notice.
(13) Regulation
9 shall be subject to the following modifications:—

(a) the references to a recognised superannuation
scheme shall include references to a scheme which would have continued to
be a recognised superannuation scheme but for the repeals mentioned in 
paragraph (11)(d) above; and
(b) the reference to the assurance period
shall include reference to the settlement period.
(14) 
Regulations 10, 11 and 11A shall be so modified
as to apply only to cases where service in one non-participating employment
ended and another non-participating employment was entered before 6th April
1975.
(15) 
Regulations 16 and 17 shall be so modified
as to apply to cases where a right of recovery exists under 
section 60 of the Act as modified by 
regulation 6 above.
(16) Regulation
17(3) shall be so modified as to include provision
that where an insured person's service in a non-participating employment comes
to an end in the circumstances mentioned in 
regulation 4(1) above, the period of delay
shall end with—
(a) in a case in which entitlement to the
refund mentioned in regulation 6(1)(a)
above arises during the settlement period, the expiration of 4 weeks after
the end of the shorter settlement period, or, if earlier, the expiration of
4 weeks after the first occasion (if any) on which, after the entitlement
to the refund arises, a payment in lieu of contributions is made or equivalent
pension benefits are assured;
(b) in a case in which entitlement to the
refund arises after the end of the settlement period, the expiration of 8
weeks after it arises.
(17) For the purposes of 
paragraph (16) above, entitlement to a refund
shall be deemed to have arisen when, and not before, any of the events mentioned
in regulation 2(2)(a) and (b)
above has occurred, and, if in accordance with the terms of the pension scheme
a refund of contributions is conditional upon the making of an application
for it, such application has been made.
(18) Paragraphs
(1) and (5) of regulation 18
shall be so modified—
(a) that no extension granted under 
paragraph (1) shall prolong the period extended
to a date later than 5th April 1975; and
(b) as to have effect as if the expression “period of contribution liability”,
where it first occurs in regulation 18(5) , included, in relation to any person's employment, any such continuous
period as is mentioned in paragraph (3)
above.
(19) Paragraph
(2) of regulation 18 shall be so modified that
in a case where, after 5th April 1975 but before the end of the assurance
period, the insured person becomes a member of a pension scheme which on 5th
April 1975 was a recognised superannuation scheme for the purposes of 
Part III of the Act, an extension granted under
that paragraph may prolong the assurance period to the length of the settlement
period.
(20) Regulation
19 shall be so modified as to have effect as
if the references to penalties were references to a penalty not exceeding
£50, or, where the offence consists of continuing any failure to give
notice after conviction thereof, £10 for each day on which it is so
continued.
(21) Regulation
20 shall be so modified as to have effect—

(a) only for the purpose of determining the
amount of equivalent pension benefits and payments in lieu of contributions
applicable to periods of service in non-participating employment before 6th
April 1975, and, in the case of 
paragraphs (5) and (6), for the purpose of
granting extensions under regulation 18(1)
as modified by paragraph (18)
above; and
(b) as if the expression 
“period of contribution liability” included, in relation to any person's employment, any such continuous
period as is mentioned in paragraph (3)
above.
10 
Regulation 2
of the Miscellaneous Provisions Regulations shall be so modified as to apply
only to payments made after 5th April 1975 where, and in so far as, they are
made on account of remuneration for employment before 6th April 1975, and
as if in paragraph (3)(a)
there were inserted, after the words “treated as employers”
), the words “or of the provisions of 
regulation 99(4) of the Social Security
(Contributions) Regulations 1973 as amended (which provides for contributions to be excused
in certain cases of remuneration received after 5th April 1975 in respect
of employment before 6th April 1975)”.
Barbara Castle
Secretary of State for Social Services
6th December 1974
SCHEDULE 1
Regulation 3



Provisions of the Act Description

Section 8(2) 
Penalties for failure to make certain payments.
Section 57 Equivalent pension benefits, etc.
Section
59(1) to (3), (5)
and (6) Provisions as to payments in lieu of contributions.
Section
60(5) 
Regulations requiring refunds to be delayed.
Section 62 Special provisions for certain statutory superannuation
schemes.

Section 63 
Additional powers to make regulations for purposes of 
Part III of the Act.
Section 85(3) Expenses of government departments.
Section
93(2) and (3) Offences and penalties.
Section 95(1)
and (3) to (12) Recovery of contributions on prosecutions under
the Act.

Section 98 
Crown servants.

Section 110 
Modification of certain schemes.

Schedule 5 
Statutory superannuation schemes for which special provision is made.
Schedule
11

paragraph 14 
Modification of provisions about non-participating employments in respect
of service before certain dates.

paragraphs 15 and 16 Modification of provisions about payments in lieu
of contributions in respect of service before certain dates.
SCHEDULE 2
Regulation 3



Provisions of the Act Description

Section 58 
Payments in lieu of contributions.

Section 59(4) 
Treatment of 2 employments as one.

Section 59(7) 
Time when payment in lieu of contributions becomes due.
Section
60(1) to (4), (6)
and (7) Employer's rights against insured person in respect of payment
in lieu of contributions.

Section 61 
Recovery of payments in lieu of contributions in event of bankruptcy, etc.

SCHEDULE 3
Regulation 3


Column 1 Column
2 Column 3

Powers and Applying Provisions Regulations Description
Sections 59(3) to (5) and 
(7), 60(3) and 
(5), 63 and 
117(1) of the Act The National
Insurance (Non-participation—Assurance of Equivalent Pension Benefits)
Regulations 1960, as amended
 Regulation 2(2) to (7) End of period of service and disregard of interruptions.

 Regulation 3 Employment not treated as continuing during interruption.

 Regulation 4 Notice of end of employment.
 
Regulation 6 
Time of payment in lieu of contributions.
 
Regulation 7 
Conditions for assurance of equivalent pension benefits.
 
Regulation 8 
Information to be furnished by employer and responsible paying authority.

 Regulation 9 Period for exercise of options, etc.
 
Regulation 10 
Conditions for treating 2 employments as a single continuous employment.
 
Regulation 11 
Certificate to be furnished in certain cases of 2 employments.
 
Regulation 11A 
Exemption from duty to give notice of end of employment or certificate under 
regulation 11.
 
Regulation 16 
Employer's right of recovery in respect of payments in lieu of contributions.

 Regulation 17 Delay in refund for purposes of employer's right
of recovery.
 Regulation 18(1), 
(2) and (5) Extension of temporary interruptions and of assurance
periods.
 Regulation 19 Offences.
 
Regulation 20 
Interruptions in non-participating employment due to absence from Great Britain.

 Schedule 1 Particulars to be given in a certificate of assurance.


Sections 56(3) (as amended by 
Schedule 1, paragraph 6 to the National
Insurance Act 1966) and 
117(1) of the Act The National
Insurance (Graduated Contributions and Non-participating Employments—Miscellaneous
Provisions) Regulations 1960, as amended
 
Regulation 2 
Computation of remuneration for graduated contributions purposes.