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(1) These Regulations may be cited as the Occupational Pension Schemes (Indexation) Regulations 1996 and shall come into force on 6th April 1997.
(2) In these Regulations—
 “the Act” means the Pensions Act 1995;
 “appointed day” means the day appointed for the coming into force of section 51 of the Act for purposes other than authorising the making of these Regulations;
 “indexation requirement” means the requirement under section 51(2) and (3) of the Act for certain occupational pension schemes to provide annual increases in the rate of pensions;
 “pension scheme” means an occupational pension scheme, a personal pension scheme or a retirement benefits scheme approved under section 591 of the Income and Corporation Taxes Act 1988; and
 “transfer credits” has the meaning given in section 124(1) of the Act.
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(1) Subject to paragraph (2) of this regulation, where a person’s accrued rights to a pension payable under an occupational pension scheme to which section 51 of the Act applies, or any part of them, derive from the allowance by the scheme of a transfer credit in respect of rights which were subject to the indexation requirement, or to the requirements of section 162 of the Act, in any pension scheme of which that person has previously been a member, subsections (2) and (3) of section 51 of the Act shall apply to such part of that pension as is attributable to those rights as if they were attributable to pensionable service or to payments in respect of employment on or after the appointed day.
(2) Paragraph (1) of this regulation shall not apply in any case where a person’s accrued rights to a pension payable by an occupational pension scheme referred to in that paragraph, or any part of them, derive from rights which have, at any time prior to the allowance by such a scheme of a transfer credit in respect of them, been held in a personal pension scheme and which were not subject to the requirements of section 162 of the Act in that scheme.
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Where a person’s accrued rights to a pension payable under an occupational pension scheme to which section 51 of the Act applies, or any part of them, derive from the acceptance by the scheme of a payment from a policy of insurance or annuity contract in respect of rights which were subject to the indexation requirement, or to the requirements of section 162 of the Act, in any pension scheme of which that person has previously been a member, subsections (2) and (3) of section 51 of the Act shall apply to such part of that pension as is attributable to those rights as if they were attributable to pensionable service or to payments in respect of employment on or after the appointed day.
Signed by authority of the Secretary of State for Social Security.
Oliver Heald
Parliamentary Under-Secretary of State,
Department of Social Security
26th June 1996