The Electricity Supply Pension Scheme—Protected Persons
Produced in partnership with Gary Delderfield of Eversheds Sutherland
The Electricity Supply Pension Scheme—Protected Persons

The following Pensions practice note produced in partnership with Gary Delderfield of Eversheds Sutherland provides comprehensive and up to date legal information covering:

  • The Electricity Supply Pension Scheme—Protected Persons
  • Statutory Framework
  • Protected Persons
  • Rights of Protected Persons
  • Future pension rights
  • Accrued rights
  • The obligations of a new employer on a business sale
  • Transfer of accrued rights
  • Waiver of protected status
  • Persons owing a duty
  • More...

Statutory Framework

The obligations relating to the treatment of 'Protected Persons' are set out in the Electricity (Protected Persons) (England and Wales) Pension Regulations 1990, SI 1990/346 (the 'Regulations’), which were made under the Electricity Act 1989 (EA 1989), Sch 14.

There are parallel regulations governing the position in Scotland.

The purpose of the Regulations is to ensure that the pension arrangements in the Electricity Supply Pension Scheme (‘ESPS’) continue to be available to members following privatisation of the electricity industry in 1990.

The obligations in the Regulations are overriding and apply despite any contrary contractual arrangements contained, for example, in a business sale agreement. It remains possible for individuals to agree other arrangements through their contract of employment, for example.

For further information on the ESPS, see Practice Note: The Electricity Supply Pension Scheme.

Protected Persons

Protected Persons fall into two categories:

  1. Protected Employees—these, broadly speaking, are current employees who were active members of the ESPS on 31 March 1990. This category also includes employees who first participated in the ESPS after 31 March 1990 in circumstances where they joined within three months of reaching the minimum age for entry to the ESPS.

  2. Protected Beneficiaries—these include pensioner members of the ESPS on 31 March 1990 and former Protected Employees and their dependants who are drawing pension benefits.

Rights of Protected Persons

Future pension rights

A Protected Employee is entitled to continue to accrue

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