Covers temporary and permanent works executed in the performance of contracts, and materials for incorporation therein, plus own and hired plant, and tools and equipment while on sites or in transit. Cover is arranged for house extensions through to multi-storey office blocks. Premiums are based on annual turnover with a maximum value of any one contract. Various extensions are available (e.g. continuing hire charges following plant damage). Key exclusions relate to existing structures and defective design. Cover may have to accord with standard term contracts (e.g. Joint Contract Tribunal).

An approved defined pension scheme whose members remain in the state second pension. Employers must contribute to the approved scheme. Employee contributions are subject to both the contributions limit of 15 per cent of earnings in any tax year and the earnings cap. The maximum allowable pension is two-thirds of final pensionable salary. The maximum lump sum at retirement is 2.25 times the pension income or, if greater, 3/80ths for each year of service times final remuneration capped at 1.5 times final remuneration. CIMPS is covered by Opra.

A defined benefit scheme whose members do not contribute to the state second pension. Employer contributions must be sufficient for protected rights purposes, i.e. no lower than the contracted out rebate. This will ensure that on retirement all members get at least the pension they would have received if they had not been contracted out. Otherwise the actual pension depends on the performance of the pension fund’s underlying assets and is subject to IR limits as per contracted in money purchase schemes.

A premium paid to the state by a contracted out pension scheme in line with protected rights to secure SERPS benefits for a scheme member if the scheme ceased to be contracted out before 6 April 1997.

The amount of the national insurance contributions paid back into a pension scheme in respect of contracted out employees. The rebate is a flat rate for final salary schemes and appropriate personal pension schemes. For contracted out money purchase schemes it is age-related.

A contracted out defined benefit scheme based on salary-related benefits. The member’s pension benefits must be equivalent to, or better than, those specified under the reference scheme test. This means it must provide an inflation-linked pension from age 65 to a maximum of 5 per up cent p.a. where the starting pension is worked out by taking a minimum of 1/80th of the average salary over the three years prior to retirement for each year of service in the scheme, up to a maximum of 40 years. Members’ contributions are subject to normal IR limits on benefits and contributions.