Pensions Act 2014: new state pension, contracting-out employer override and short-service benefit: commencement details

Many of the provisions regarding the new state pension in Part 1 of the PA 2014 were brought into effect on 5 February 2015 for regulation-making purposes. To this end, the State Pension Regulations 2015 (SI 2015/173) were made on 9 February 2015, although they will not come into force until 6 April 2016. Among other things, these regulations set the minimum number of qualifying years required to receive the new state pension. The DWP consulted on a draft version in December 2014 but no substantive changes have been made following consultation (see Legal update, New state pension: draft regulations set qualifying years threshold).

The provisions in section 24 of (and Schedule 9 to) the PA 2014 regarding the overriding power allowing employers to amend scheme rules to reflect the loss of National Insurance rebates following abolition of DB contracting-out will come into force on 23 February 2015. Finalised regulations due to be made under these provisions are expected imminently (see Legal update, Abolition of DB contracting-out: statutory override to be finalised before general election).

The amendments to section 71 of the Pension Schemes Act 1993 contained in section 36 of the PA 2014 introducing a common 30-day vesting period for short-service benefit in occupational and personal DC schemes will come into force on 1 October 2015.