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, 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 employees in the electricity industry following privatisation 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 employees who were active members of the ESPS on 31 March 1990. This category also includes