Considerations where scheme ceased to be a COSR scheme before 6 April 2016 [Archived]
Considerations where scheme ceased to be a COSR scheme before 6 April 2016 [Archived]

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Considerations where scheme ceased to be a COSR scheme before 6 April 2016 [Archived]
  • When did a scheme cease to be contracted-out?
  • Reasons why a COSR scheme could cease to be contracted-out
  • Next steps following cessation of contracting-out
  • Notification obligations
  • Data reconciliation
  • Securing COSR rights
  • Obtaining HMRC approval
  • Preservation within the scheme
  • Conditions for HMRC approval
  • More...

THIS PRACTICE NOTE APPLIES IN RELATION TO SCHEMES THAT WERE CONTRACTED-OUT SALARY-RELATED SCHEMES BEFORE 6 APRIL 2016

Contracting-out on a salary-related basis (also known as DB contracting-out) was abolished on 6 April 2016. All contracted-out members therefore ceased to be in contracted-out employment on and from that date. For more information, see Practice Note: Abolition of DB contracting-out—an introduction. For more information generally on contracting out, see Practice Note: What does ‘contracting-out’ mean for pension lawyers?

This Practice Note describes the considerations that were applicable when a contracted-out salary-related (COSR) scheme ceased to be contracted-out before 6 April 2016.

Note that different considerations applied when a member ceases to be in contracted-out employment (before 6 April 2016) at a time when the scheme continued to be a COSR scheme. For more information on the considerations that were applicable in such circumstances, see Practice Note: Considerations where member ceased to be in DB contracted-out employment before 6 April 2016 [Archived].

When did a scheme cease to be contracted-out?

A COSR scheme could not be contracted-out without a contracting-out certificate. So it ceased to be contracted-out when the only or last contracting-out certificate in relation to that scheme had been surrendered or cancelled.

A COSR scheme continued to be contracted-out if:

  1. an employer participating in a multi-employer scheme surrendered its contracting-out certificate but there was another employer with a contracting-out

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