Further update to NISPI Newsletter March 2006

On 3 April 2006 we advised that the proposed change to contracting-out legislation to allow GMP rights to be commuted on the grounds of serious ill health (i.e. where a medical practitioner has provided evidence that the member is expected to live for less than a year) would be introduced through the Occupational Pension Schemes (Contracting-out)(Amendment) Regulations 2006. The necessary Statutory Instrument will shortly be laid before Parliament and we anticipate that the amendment will come into effect in mid June. Schemes may wish to process any applications arising in the meantime so that they are in a position to pay a lump sum to a seriously ill member as soon as the amendment is in force. Schemes will wish to note that, as previously announced, the liability to pay a surviving spouse's or civil partner's GMP cannot be commuted under this provision.