Detrimental modification definition

View the related practice notes about Detrimental modification

Statutory restrictions on amendments—the section 67 regime

THIS PRACTICE NOTE APPLIES IN RELATION TO OCCUPATIONAL PENSION SCHEMESThe regime under sections 67–67I of the Pensions Act 1995 (PA 1995) (sometime referred to as the 'subsisting rights provisions' or the 'section 67 regime') imposes statutory restrictions on the types of amendments/modifications that can be made to occupational pension schemes. In general, the aim of s 67 is to prevent detrimental modifications being made to members' accrued (ie past service) benefits without their consent.With effect from 6 April 2006 (A-day), section 262 of the Pensions Act 2004 changed the wording contained in the original s 67 (the 'old s 67'). While the post-A-day s 67 regime applies to 'regulated modifications' (for more on which, see below), the old s 67 applied to modifications which 'would or might affect any entitlement, accrued right [...] of any member acquired before' the effective date of the modification.The old s 67 regime applied to amendments made from 6 April 1997 to 5 April 2006. Before 6 April 1997, there was no s 67 regime...

DB contracting-out before 6 April 2016 [Archived]

DB contracting-out before 6 April 2016 [Archived] THIS PRACTICE NOTE APPLIES IN RELATION TO SCHEMES THAT WERE CONTRACTED-OUT SALARY-RELATED (COSR) SCHEMES BEFORE 6 APRIL 2016 Contracting-out on a salary-related basis (also known as defined benefit (DB) contracting-out) was abolished on 6 April 2016. Schemes that were contracted-out salary-related (COSR) schemes immediately before that date therefore ceased to be so on that date. However any contracted-out benefits accrued on a salary-related basis during periods of contracted-out employment continue to exist. This Practice Note covers the statutory requirements that were applicable to COSR schemes before 6 April 2016. For information on the DB contracting-out requirements applicable to former COSR schemes on and from 6 April 2016, see Practice Note: Legal regime applicable to Section 9(2B) rights and GMPs from 6 April 2016. Legislative framework before 6 April 2016 Pre-abolition, the various contracting-out requirements in respect of COSR schemes were set out, among other things, in: • Pt III of the Pension Schemes Act 1993 (PSA 1993), and •...