S. 12 wholly in operation at 6.4.2009; s. 12 not in operation at Royal Assent see s. 21(1)(a); s. 12 in operation for certain purposes at 3.3.2009 and in operation at 6.4.2009 for all other purposes by S.R. 2009/75, art. 2

Words in s. 12(8)(c) inserted (28.4.2022 for specified purposes) by Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33), ss. 2(10)(a), 3(4)(b)

Words in s. 12(8)(d) inserted (28.4.2022 for specified purposes) by Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33), ss. 2(10)(b), 3(4)(b)

Words in s. 12(10) inserted (28.4.2022 for specified purposes) by Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33), ss. 2(10)(c), 3(4)(b)

Words in s. 12(11) omitted (28.4.2022 for specified purposes) by virtue of Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33), ss. 2(10)(d), 3(4)(b)

http://www.legislation.gov.uk/nia/2008/1/section/12Pensions Act (Northern Ireland) 2008An Act to make provision about pensions and other benefits payable to persons in connection with bereavement or by reference to pensionable age; to make provision about the functions of the Personal Accounts Delivery Authority; and for connected purposes.texttext/xmlenStatute Law Database2024-05-15Expert Participation2022-04-28PART 2OCCUPATIONAL AND PERSONAL PENSION SCHEMESContracting-out
12Conversion of guaranteed minimum pensions1

After section 9(1) of the Pension Schemes Act (contracted-out scheme: requirement for guaranteed minimum pension) insert—

1A

But a scheme may be amended so as to omit provision of the kind specified in subsection (1)(a) and (b) if the conditions specified in section 20B are satisfied.

.

2

After section 13(1) of that Act (minimum pension for survivors) insert—

1A

But a scheme may be amended so as to omit provision of the kind specified in subsection (1) if the conditions specified in section 20B are satisfied.

.

3

Before section 21 of that Act (before the italic cross-heading) insert—

20AConversion of guaranteed minimum pension into other benefits: introduction

In this section and sections 20B to 20H—

a

the rules specified in sections 9(1)(a) and (b) and 13(1) are referred to as the “guaranteed minimum pension rules”,

b

GMP conversion” means amendment of the scheme in relation to an earner so that it no longer contains the guaranteed minimum pension rules,

c

a “GMP-converted scheme” is a scheme which has been subject to GMP conversion,

d

the conversion date” means the date on which that amendment takes effect,

e

the pre-conversion benefits” means the benefits provided under the scheme immediately before the conversion date (disregarding money purchase benefits),

f

the post-conversion benefits” means the benefits which are provided under the converted scheme (disregarding money purchase benefits),

g

the converted scheme” means the scheme as it has effect immediately after conversion, and

h

the trustees” in relation to a scheme means the trustees, managers or other persons responsible under the scheme for effecting amendments of it.

20BThe conversion conditions1

This section specifies the conditions referred to in sections 9(1A) and 13(1A) (for exemption from the requirement to guarantee a minimum pension).

2

Condition 1 is that the post-conversion benefits must be actuarially at least equivalent to the pre-conversion benefits.

3

Condition 2 is that if the earner was entitled immediately before the conversion date to the payment of a pension under the scheme, the converted scheme does not provide for a reduction of, or have the effect of reducing, the amount of that pension immediately after conversion.

4

Condition 3 is that the post-conversion benefits must not include money purchase benefits, apart from any money purchase benefits provided under the scheme immediately before the conversion date.

5

Condition 4 is that the converted scheme provides survivors' benefits in accordance with section 20D in such circumstances, and during such periods, as are prescribed by regulations.

6

Condition 5 is that the procedural requirements of section 20E have been complied with.

7

In applying these conditions to a scheme in respect of an earner—

a

it is immaterial whether or not on the conversion date the scheme was also converted in respect of other earners, and

b

it is immaterial (except for Condition 2) whether or not on the conversion date the earner was entitled to the payment of a pension under the scheme.

20CActuarial equivalence

Regulations may make provision for determining actuarial equivalence for the purpose of Condition 1 of section 20B.

20DSurvivors' benefits1

This section specifies the benefits mentioned in Condition 4 of section 20B.

2

The first benefit is that if the earner dies (whether before or after attaining normal pension age) leaving a widow, she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period—

a

beginning with 6th April 1978, and

b

ending with 5th April 1997.

3

The second benefit is that if the earner dies (whether before or after attaining normal pension age) leaving a widower or surviving civil partner, he or she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period—

a

beginning with 6th April 1988, and

b

ending with 5th April 1997.

20EProcedural requirements1

This section specifies the procedural requirements that must be complied with in order to satisfy Condition 5 of section 20B.

2

The employer in relation to the scheme must consent to the GMP conversion in advance.

3

The trustees must take all reasonable steps to—

a

consult the earner in advance, and

b

notify all members, and survivors, affected by the GMP conversion before, or as soon as is reasonably practicable after, the conversion date.

4

The Commissioners for Her Majesty's Revenue and Customs must be notified on or before the conversion date—

a

that the GMP conversion will occur or has occurred, and

b

that it affects the earner.

20FTransfer out1

Regulations may prescribe—

a

restrictions on the transfer of the earner's accrued rights under a GMP-converted scheme;

b

conditions which must be complied with on the transfer of the earner's accrued rights under a GMP-converted scheme.

2

Section 16(2) and (5) shall apply to regulations under this section.

3

Where a member of a non-GMP-converted scheme makes an application under section 91(1), the trustees may with his consent adjust any guaranteed cash equivalent so as to reflect rights that would have accrued if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B.

20GPowers to amend schemes1

The trustees of an occupational pension scheme may by resolution modify it so as to effect GMP conversion (whether in relation to present earners, pensioners or survivors) in accordance with the conditions of section 20B.

2

The subsisting rights provisions within the meaning of Article 67 of the Pensions (Northern Ireland) Order 1995 shall not apply to a power conferred by an occupational pension scheme to modify the scheme in so far as the power enables GMP conversion in accordance with the conditions of section 20B.

3

Where a scheme is amended to effect GMP conversion the trustees may include other amendments which they think are necessary or desirable as a consequence of, or to facilitate, the GMP conversion.

4

Where an occupational pension scheme is being wound up, the trustees may, before the winding up is completed, adjust rights under the scheme so as to reflect what would have happened if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B.

5

In the application of section 20E by virtue of subsection (1) above, a reference to the earner includes a reference to a pensioner or survivor whose pension is subjected to GMP conversion.

20HEnforcement of GMP conversion conditions1

If the Regulatory Authority thinks that the conditions of section 20B have not been satisfied in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G, the Regulatory Authority may make an order declaring the amendment, modification or adjustment void—

a

in respect of a specified person or class of person,

b

to a specified extent, and

c

as from a specified time.

2

Where the Regulatory Authority makes an order under subsection (1) it may—

a

require the trustees of the scheme concerned to take specified steps;

b

declare that specified action of the trustees shall not be treated as a contravention of the scheme if it would not have been a contravention if the order under subsection (1) had not been made.

3

An order may be made under subsection (1) before or after the amendment, modification or adjustment takes effect.

4

If the Regulatory Authority thinks that the process of effecting a GMP conversion of a scheme has been commenced and that a relevant condition of section 20B is not being complied with, or may not be complied with, the Regulatory Authority may by order—

a

prohibit the taking of further steps in the GMP conversion (whether generally or in relation to specified steps), and

b

require the trustees of the scheme to take specified steps before resuming the process of GMP conversion.

5

Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) shall apply to a trustee who has failed to take all reasonable steps to secure compliance with the conditions of section 20B in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G.

.

4

In section 5(2A) of that Act (requirements for certification) for “sections 9 to 19” substitute “ sections 9 to 20E ”.

5

At the end of section 43 of that Act (deductions from social security payments) add—

9

For the purposes of section 42, a person shall be treated as entitled to a guaranteed minimum pension to which, in the opinion of the Commissioners for Her Majesty's Revenue and Customs, he would have been entitled but for the amendment of a scheme so that it no longer contains the guaranteed minimum pension rules.

10

Where the earner's accrued rights have been transferred after the amendment of the scheme, in making the calculation under subsection (9) the Commissioners shall assume the application of section 12(1) after the transfer.

11

In making the calculation under subsection (9) the Commissioners shall ignore any effect of the scheme being wound up.

.

6

In Article 92(5) of the Pensions (Northern Ireland) Order 2005 (NI 1) (Pensions Regulator: special procedure) after sub-paragraph (t) insert—

ta

a power under section 20H of the Pension Schemes Act;

.

7

At the end of Part 1 of Schedule 2 to that Order (reserved regulatory functions: Pension Schemes Act) add—

3A

A power under section 20H (compliance with conditions of conversion of guaranteed minimum pension).

.

8

Subsection (9) applies where—

a

a person has been in receipt of a guaranteed minimum pension and a Category A or Category B retirement pension,

b

the guaranteed minimum pension has been increased in accordance with section 11(1) of the Pension Schemes Act or the Category A or Category B retirement pension has been increased in accordance with paragraph 5 of Schedule 5 to the Contributions and Benefits Act (increase of pension where commencement of guaranteed minimum pension postponed),

c

the pension scheme under which the guaranteed minimum pension is paid is subject to GMP conversion in relation to the person , and

d

an order under section 132 of the Administration Act would have applied to the person in respect of the increase mentioned in paragraph (b) but for the scheme having been subject to GMP conversion in relation to the person .

9

The person's Category A or Category B retirement pension shall be increased by the amount by which it would have increased as a result of the order.

10

If paragraph 5 of Schedule 5 to the Contributions and Benefits Act (increase of pension for survivor of “S”) would apply to a person but for the fact that the scheme of which S was a member was subject to GMP conversion in relation to S before S's death, the paragraph shall apply to the person (with any necessary modifications) despite that fact.

11

In subsections (8)(c) and (d) and (10) “GMP conversion” has the meaning given by section 20A of the Pension Schemes Act ....

12

In section 181 of the Pension Schemes Act (Assembly, etc. control of regulations and orders) in subsection (2) after “the Department under section” insert “ 20B(5) ”.

This XML file does not appear to have any style information associated with it. The document tree is shown below.
<akomaNtoso xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xsi:schemaLocation="http://docs.oasis-open.org/legaldocml/ns/akn/3.0 http://docs.oasis-open.org/legaldocml/akn-core/v1.0/cos01/part2-specs/schemas/akomantoso30.xsd">
<portion includedIn="http://www.legislation.gov.uk/id/nia/2008/1">
<meta>
<identification source="#source">
<FRBRWork>
<FRBRthis value="http://www.legislation.gov.uk/id/nia/2008/1"/>
<FRBRuri value="http://www.legislation.gov.uk/id/nia/2008/1"/>
<FRBRdate date="2008-02-11" name="enacted"/>
<FRBRauthor href="http://www.legislation.gov.uk/id/legislature/NorthernIrelandAssembly"/>
<FRBRcountry value="GB-NIR"/>
<FRBRnumber value="1"/>
<FRBRname value="2008 c. 1 (N.I.)"/>
<FRBRprescriptive value="true"/>
</FRBRWork>
<FRBRExpression>
<FRBRthis value="http://www.legislation.gov.uk/nia/2008/1/section/12"/>
<FRBRuri value="http://www.legislation.gov.uk/nia/2008/1"/>
<FRBRdate date="2022-04-28" name="validFrom"/>
<FRBRauthor href="#source"/>
<FRBRlanguage language="eng"/>
</FRBRExpression>
<FRBRManifestation>
<FRBRthis value="http://www.legislation.gov.uk/nia/2008/1/section/12/data.akn"/>
<FRBRuri value="http://www.legislation.gov.uk/nia/2008/1/data.akn"/>
<FRBRdate date="2024-11-12Z" name="transform"/>
<FRBRauthor href="http://www.legislation.gov.uk"/>
<FRBRformat value="application/akn+xml"/>
</FRBRManifestation>
</identification>
<lifecycle source="#source">
<eventRef date="2008-02-11" type="generation" eId="enacted-date" source="#source"/>
<eventRef date="2009-03-03" type="amendment" source="#source"/>
<eventRef date="2022-04-28" type="amendment" source="#source"/>
<eventRef date="2022-04-28" eId="effective-date-1" source="#source"/>
</lifecycle>
<analysis source="#source">
<passiveModifications>
<textualMod type="insertion" eId="mod-key-3375d6a5e32c1e54df2a6ca4918b5875-1658824895997">
<source href="#key-3375d6a5e32c1e54df2a6ca4918b5875"/>
<destination href="#section-12-8-c"/>
</textualMod>
<textualMod type="insertion" eId="mod-key-bef03f15a0a7a4deffdd8b4ff1b691e4-1658824996180">
<source href="#key-bef03f15a0a7a4deffdd8b4ff1b691e4"/>
<destination href="#section-12-8-d"/>
</textualMod>
<textualMod type="insertion" eId="mod-key-388cd9c8e223a3c08b7956f38a66d61c-1658825037019">
<source href="#key-388cd9c8e223a3c08b7956f38a66d61c"/>
<destination href="#section-12-10"/>
</textualMod>
</passiveModifications>
<restrictions source="#source">
<restriction refersTo="#ni" type="jurisdiction"/>
</restrictions>
</analysis>
<temporalData source="#source">
<temporalGroup eId="period1">
<timeInterval start="#effective-date-1" refersTo="#period-concept1"/>
</temporalGroup>
</temporalData>
<references source="#source">
<TLCOrganization eId="source" href="http://www.legislation.gov.uk/id/publisher/StatuteLawDatabase" showAs="Statute Law Database"/>
<TLCLocation eId="ni" href="/ontology/jurisdictions/uk.NorthernIreland" showAs="Northern Ireland"/>
<TLCTerm eId="term-guaranteed-minimum-pension-rules" href="/ontology/term/uk.guaranteed-minimum-pension-rules" showAs="guaranteed minimum pension rules"/>
<TLCTerm eId="term-gmp-conversion" href="/ontology/term/uk.gmp-conversion" showAs="GMP conversion"/>
<TLCTerm eId="term-the-conversion-date" href="/ontology/term/uk.the-conversion-date" showAs="the conversion date"/>
<TLCTerm eId="term-the-pre-conversion-benefits" href="/ontology/term/uk.the-pre-conversion-benefits" showAs="the pre-conversion benefits"/>
<TLCTerm eId="term-the-post-conversion-benefits" href="/ontology/term/uk.the-post-conversion-benefits" showAs="the post-conversion benefits"/>
<TLCTerm eId="term-the-converted-scheme" href="/ontology/term/uk.the-converted-scheme" showAs="the converted scheme"/>
<TLCTerm eId="term-the-trustees" href="/ontology/term/uk.the-trustees" showAs="the trustees"/>
<TLCConcept eId="period-concept1" href="/ontology/time/2022.04.28" showAs="since 2022-04-28"/>
</references>
<notes source="#source">
<note class="commentary I" eId="c21470371">
<p>
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/12">S. 12</ref>
wholly in operation at 6.4.2009;
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/12">s. 12</ref>
not in operation at Royal Assent see
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/21/1/a">s. 21(1)(a)</ref>
;
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/12">s. 12</ref>
in operation for certain purposes at 3.3.2009 and in operation at 6.4.2009 for all other purposes by
<ref href="http://www.legislation.gov.uk/id/nisr/2009/75">S.R. 2009/75</ref>
,
<ref href="http://www.legislation.gov.uk/id/nisr/2009/75/article/2">art. 2</ref>
</p>
</note>
<note class="commentary F" eId="key-3375d6a5e32c1e54df2a6ca4918b5875">
<p>
Words in
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/12/8/c">s. 12(8)(c)</ref>
inserted (28.4.2022 for specified purposes) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33">Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/2/10/a">ss. 2(10)(a)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/3/4/b">3(4)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-bef03f15a0a7a4deffdd8b4ff1b691e4">
<p>
Words in
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/12/8/d">s. 12(8)(d)</ref>
inserted (28.4.2022 for specified purposes) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33">Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/2/10/b">ss. 2(10)(b)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/3/4/b">3(4)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-388cd9c8e223a3c08b7956f38a66d61c">
<p>
Words in
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/12/10">s. 12(10)</ref>
inserted (28.4.2022 for specified purposes) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33">Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/2/10/c">ss. 2(10)(c)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/3/4/b">3(4)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-39c44ad9bb284e6e8384cc2c3d39598c">
<p>
Words in
<ref href="http://www.legislation.gov.uk/id/nia/2008/1/section/12/11">s. 12(11)</ref>
omitted (28.4.2022 for specified purposes) by virtue of
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33">Pension Schemes (Conversion of Guaranteed Minimum Pensions) Act 2022 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/2/10/d">ss. 2(10)(d)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2022/33/section/3/4/b">3(4)(b)</ref>
</p>
</note>
</notes>
<proprietary xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:ukm="http://www.legislation.gov.uk/namespaces/metadata" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dct="http://purl.org/dc/terms/" xmlns:atom="http://www.w3.org/2005/Atom" source="#source">
<ukl:RestrictStartDate value="2022-04-28"/>
<dc:identifier>http://www.legislation.gov.uk/nia/2008/1/section/12</dc:identifier>
<dc:title>Pensions Act (Northern Ireland) 2008</dc:title>
<dc:description>An Act to make provision about pensions and other benefits payable to persons in connection with bereavement or by reference to pensionable age; to make provision about the functions of the Personal Accounts Delivery Authority; and for connected purposes.</dc:description>
<dc:type>text</dc:type>
<dc:format>text/xml</dc:format>
<dc:language>en</dc:language>
<dc:publisher>Statute Law Database</dc:publisher>
<dc:modified>2024-05-15</dc:modified>
<dc:contributor>Expert Participation</dc:contributor>
<dct:valid>2022-04-28</dct:valid>
<atom:link rel="self" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.xml" type="application/xml"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/resources" href="http://www.legislation.gov.uk/nia/2008/1/resources" title="More Resources"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/notes" href="http://www.legislation.gov.uk/id/nia/2008/1/section/12/notes" title="Explanatory Notes"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/notes/toc" href="http://www.legislation.gov.uk/nia/2008/1/notes/contents" title="Explanatory Notes Table of Contents"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/act" href="http://www.legislation.gov.uk/nia/2008/1" title="whole act"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/introduction" href="http://www.legislation.gov.uk/nia/2008/1/introduction" title="introduction"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/body" href="http://www.legislation.gov.uk/nia/2008/1/body" title="body"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/schedules" href="http://www.legislation.gov.uk/nia/2008/1/schedules" title="schedules"/>
<atom:link rel="alternate" type="application/rdf+xml" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.rdf" title="RDF/XML"/>
<atom:link rel="alternate" type="application/akn+xml" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.akn" title="AKN"/>
<atom:link rel="alternate" type="application/xhtml+xml" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.xht" title="HTML snippet"/>
<atom:link rel="alternate" type="text/html" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.htm" title="Website (XHTML) Default View"/>
<atom:link rel="alternate" type="text/csv" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.csv" title="CSV"/>
<atom:link rel="alternate" type="application/pdf" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.pdf" title="PDF"/>
<atom:link rel="alternate" type="application/akn+xhtml" href="http://www.legislation.gov.uk/nia/2008/1/section/12/data.html" title="HTML5 snippet"/>
<atom:link rel="http://purl.org/dc/terms/tableOfContents" hreflang="en" href="http://www.legislation.gov.uk/nia/2008/1/contents" title="Table of Contents"/>
<atom:link rel="http://purl.org/dc/terms/replaces" href="http://www.legislation.gov.uk/nia/2008/1/section/12/2009-03-03" title="2009-03-03"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/nia/2008/1/section/12/enacted" title="enacted"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/nia/2008/1/section/12/2009-03-03" title="2009-03-03"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/nia/2008/1/section/12/2022-04-28" title="2022-04-28"/>
<atom:link rel="up" href="http://www.legislation.gov.uk/nia/2008/1" title="Entire legislation"/>
<atom:link rel="prev" href="http://www.legislation.gov.uk/nia/2008/1/section/11" title="Provision; Section 11"/>
<atom:link rel="prevInForce" href="http://www.legislation.gov.uk/nia/2008/1/section/11" title="Provision; Section 11"/>
<atom:link rel="next" href="http://www.legislation.gov.uk/nia/2008/1/section/13" title="Provision; Section 13"/>
<atom:link rel="nextInForce" href="http://www.legislation.gov.uk/nia/2008/1/section/13" title="Provision; Section 13"/>
<ukm:PrimaryMetadata>
<ukm:DocumentClassification>
<ukm:DocumentCategory Value="primary"/>
<ukm:DocumentMainType Value="NorthernIrelandAct"/>
<ukm:DocumentStatus Value="revised"/>
</ukm:DocumentClassification>
<ukm:Year Value="2008"/>
<ukm:Number Value="1"/>
<ukm:EnactmentDate Date="2008-02-11"/>
<ukm:ISBN Value="9780105950455"/>
</ukm:PrimaryMetadata>
<ukm:Notes>
<ukm:Note IdURI="http://www.legislation.gov.uk/id/nia/2008/1/section/12/notes" DocumentURI="http://www.legislation.gov.uk/nia/2008/1/section/12/notes"/>
<ukm:Alternatives>
<ukm:Alternative URI="http://www.legislation.gov.uk/nia/2008/1/pdfs/niaen_20080001_en.pdf" Date="2012-05-31" Title="Explanatory Note" Size="223439"/>
</ukm:Alternatives>
</ukm:Notes>
<ukm:Statistics>
<ukm:TotalParagraphs Value="234"/>
<ukm:BodyParagraphs Value="36"/>
<ukm:ScheduleParagraphs Value="198"/>
<ukm:AttachmentParagraphs Value="0"/>
<ukm:TotalImages Value="0"/>
</ukm:Statistics>
</proprietary>
</meta>
<portionBody period="#period1">
<part eId="part-2" period="#period1">
<num>
<strong>PART 2</strong>
</num>
<heading>OCCUPATIONAL AND PERSONAL PENSION SCHEMES</heading>
<hcontainer name="crossheading" eId="part-2-crossheading-contractingout" period="#period1">
<heading>
<em>Contracting-out</em>
</heading>
<section eId="section-12" period="#period1">
<num>
<noteRef href="#c21470371" marker="I1" class="commentary I"/>
12
</num>
<heading>Conversion of guaranteed minimum pensions</heading>
<subsection eId="section-12-1">
<num>1</num>
<content>
<p>After section 9(1) of the Pension Schemes Act (contracted-out scheme: requirement for guaranteed minimum pension) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<subsection eId="d4e97">
<num>1A</num>
<content>
<p>But a scheme may be amended so as to omit provision of the kind specified in subsection (1)(a) and (b) if the conditions specified in section 20B are satisfied.</p>
</content>
</subsection>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-12-2">
<num>2</num>
<content>
<p>After section 13(1) of that Act (minimum pension for survivors) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<subsection eId="d4e112">
<num>1A</num>
<content>
<p>But a scheme may be amended so as to omit provision of the kind specified in subsection (1) if the conditions specified in section 20B are satisfied.</p>
</content>
</subsection>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-12-3">
<num>3</num>
<content>
<p>Before section 21 of that Act (before the italic cross-heading) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown unknown default" startQuote="" endQuote="">
<section eId="d4e130">
<num>20A</num>
<heading>Conversion of guaranteed minimum pension into other benefits: introduction</heading>
<intro>
<p>In this section and sections 20B to 20H—</p>
</intro>
<paragraph eId="d4e136">
<num>a</num>
<content>
<p>
the rules specified in sections 9(1)(a) and (b) and 13(1) are referred to as the “
<term refersTo="#term-guaranteed-minimum-pension-rules">guaranteed minimum pension rules</term>
”,
</p>
</content>
</paragraph>
<paragraph eId="d4e145">
<num>b</num>
<content>
<p>
<term refersTo="#term-gmp-conversion">GMP conversion</term>
” means amendment of the scheme in relation to an earner so that it no longer contains the guaranteed minimum pension rules,
</p>
</content>
</paragraph>
<paragraph eId="d4e154">
<num>c</num>
<content>
<p>a “GMP-converted scheme” is a scheme which has been subject to GMP conversion,</p>
</content>
</paragraph>
<paragraph eId="d4e160">
<num>d</num>
<content>
<p>
<term refersTo="#term-the-conversion-date">the conversion date</term>
” means the date on which that amendment takes effect,
</p>
</content>
</paragraph>
<paragraph eId="d4e169">
<num>e</num>
<content>
<p>
<term refersTo="#term-the-pre-conversion-benefits">the pre-conversion benefits</term>
” means the benefits provided under the scheme immediately before the conversion date (disregarding money purchase benefits),
</p>
</content>
</paragraph>
<paragraph eId="d4e178">
<num>f</num>
<content>
<p>
<term refersTo="#term-the-post-conversion-benefits">the post-conversion benefits</term>
” means the benefits which are provided under the converted scheme (disregarding money purchase benefits),
</p>
</content>
</paragraph>
<paragraph eId="d4e187">
<num>g</num>
<content>
<p>
<term refersTo="#term-the-converted-scheme">the converted scheme</term>
” means the scheme as it has effect immediately after conversion, and
</p>
</content>
</paragraph>
<paragraph eId="d4e196">
<num>h</num>
<content>
<p>
<term refersTo="#term-the-trustees">the trustees</term>
” in relation to a scheme means the trustees, managers or other persons responsible under the scheme for effecting amendments of it.
</p>
</content>
</paragraph>
</section>
<section eId="d4e208">
<num>20B</num>
<heading>The conversion conditions</heading>
<subsection eId="d4e212">
<num>1</num>
<content>
<p>This section specifies the conditions referred to in sections 9(1A) and 13(1A) (for exemption from the requirement to guarantee a minimum pension).</p>
</content>
</subsection>
<subsection eId="d4e218">
<num>2</num>
<content>
<p>Condition 1 is that the post-conversion benefits must be actuarially at least equivalent to the pre-conversion benefits.</p>
</content>
</subsection>
<subsection eId="d4e224">
<num>3</num>
<content>
<p>Condition 2 is that if the earner was entitled immediately before the conversion date to the payment of a pension under the scheme, the converted scheme does not provide for a reduction of, or have the effect of reducing, the amount of that pension immediately after conversion.</p>
</content>
</subsection>
<subsection eId="d4e230">
<num>4</num>
<content>
<p>Condition 3 is that the post-conversion benefits must not include money purchase benefits, apart from any money purchase benefits provided under the scheme immediately before the conversion date.</p>
</content>
</subsection>
<subsection eId="d4e236">
<num>5</num>
<content>
<p>Condition 4 is that the converted scheme provides survivors' benefits in accordance with section 20D in such circumstances, and during such periods, as are prescribed by regulations.</p>
</content>
</subsection>
<subsection eId="d4e242">
<num>6</num>
<content>
<p>Condition 5 is that the procedural requirements of section 20E have been complied with.</p>
</content>
</subsection>
<subsection eId="d4e248">
<num>7</num>
<intro>
<p>In applying these conditions to a scheme in respect of an earner—</p>
</intro>
<paragraph eId="d4e254">
<num>a</num>
<content>
<p>it is immaterial whether or not on the conversion date the scheme was also converted in respect of other earners, and</p>
</content>
</paragraph>
<paragraph eId="d4e260">
<num>b</num>
<content>
<p>it is immaterial (except for Condition 2) whether or not on the conversion date the earner was entitled to the payment of a pension under the scheme.</p>
</content>
</paragraph>
</subsection>
</section>
<section eId="d4e269">
<num>20C</num>
<heading>Actuarial equivalence</heading>
<content>
<p>Regulations may make provision for determining actuarial equivalence for the purpose of Condition 1 of section 20B.</p>
</content>
</section>
<section eId="d4e278">
<num>20D</num>
<heading>Survivors' benefits</heading>
<subsection eId="d4e282">
<num>1</num>
<content>
<p>This section specifies the benefits mentioned in Condition 4 of section 20B.</p>
</content>
</subsection>
<subsection eId="d4e288">
<num>2</num>
<intro>
<p>The first benefit is that if the earner dies (whether before or after attaining normal pension age) leaving a widow, she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period—</p>
</intro>
<paragraph eId="d4e294">
<num>a</num>
<content>
<p>beginning with 6th April 1978, and</p>
</content>
</paragraph>
<paragraph eId="d4e300">
<num>b</num>
<content>
<p>ending with 5th April 1997.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e306">
<num>3</num>
<intro>
<p>The second benefit is that if the earner dies (whether before or after attaining normal pension age) leaving a widower or surviving civil partner, he or she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period—</p>
</intro>
<paragraph eId="d4e312">
<num>a</num>
<content>
<p>beginning with 6th April 1988, and</p>
</content>
</paragraph>
<paragraph eId="d4e318">
<num>b</num>
<content>
<p>ending with 5th April 1997.</p>
</content>
</paragraph>
</subsection>
</section>
<section eId="d4e327">
<num>20E</num>
<heading>Procedural requirements</heading>
<subsection eId="d4e331">
<num>1</num>
<content>
<p>This section specifies the procedural requirements that must be complied with in order to satisfy Condition 5 of section 20B.</p>
</content>
</subsection>
<subsection eId="d4e337">
<num>2</num>
<content>
<p>The employer in relation to the scheme must consent to the GMP conversion in advance.</p>
</content>
</subsection>
<subsection eId="d4e343">
<num>3</num>
<intro>
<p>The trustees must take all reasonable steps to—</p>
</intro>
<paragraph eId="d4e349">
<num>a</num>
<content>
<p>consult the earner in advance, and</p>
</content>
</paragraph>
<paragraph eId="d4e355">
<num>b</num>
<content>
<p>notify all members, and survivors, affected by the GMP conversion before, or as soon as is reasonably practicable after, the conversion date.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e361">
<num>4</num>
<intro>
<p>The Commissioners for Her Majesty's Revenue and Customs must be notified on or before the conversion date—</p>
</intro>
<paragraph eId="d4e367">
<num>a</num>
<content>
<p>that the GMP conversion will occur or has occurred, and</p>
</content>
</paragraph>
<paragraph eId="d4e373">
<num>b</num>
<content>
<p>that it affects the earner.</p>
</content>
</paragraph>
</subsection>
</section>
<section eId="d4e382">
<num>20F</num>
<heading>Transfer out</heading>
<subsection eId="d4e386">
<num>1</num>
<intro>
<p>Regulations may prescribe—</p>
</intro>
<paragraph eId="d4e392">
<num>a</num>
<content>
<p>restrictions on the transfer of the earner's accrued rights under a GMP-converted scheme;</p>
</content>
</paragraph>
<paragraph eId="d4e398">
<num>b</num>
<content>
<p>conditions which must be complied with on the transfer of the earner's accrued rights under a GMP-converted scheme.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e404">
<num>2</num>
<content>
<p>Section 16(2) and (5) shall apply to regulations under this section.</p>
</content>
</subsection>
<subsection eId="d4e410">
<num>3</num>
<content>
<p>Where a member of a non-GMP-converted scheme makes an application under section 91(1), the trustees may with his consent adjust any guaranteed cash equivalent so as to reflect rights that would have accrued if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B.</p>
</content>
</subsection>
</section>
<section eId="d4e419">
<num>20G</num>
<heading>Powers to amend schemes</heading>
<subsection eId="d4e423">
<num>1</num>
<content>
<p>The trustees of an occupational pension scheme may by resolution modify it so as to effect GMP conversion (whether in relation to present earners, pensioners or survivors) in accordance with the conditions of section 20B.</p>
</content>
</subsection>
<subsection eId="d4e429">
<num>2</num>
<content>
<p>The subsisting rights provisions within the meaning of Article 67 of the Pensions (Northern Ireland) Order 1995 shall not apply to a power conferred by an occupational pension scheme to modify the scheme in so far as the power enables GMP conversion in accordance with the conditions of section 20B.</p>
</content>
</subsection>
<subsection eId="d4e435">
<num>3</num>
<content>
<p>Where a scheme is amended to effect GMP conversion the trustees may include other amendments which they think are necessary or desirable as a consequence of, or to facilitate, the GMP conversion.</p>
</content>
</subsection>
<subsection eId="d4e441">
<num>4</num>
<content>
<p>Where an occupational pension scheme is being wound up, the trustees may, before the winding up is completed, adjust rights under the scheme so as to reflect what would have happened if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B.</p>
</content>
</subsection>
<subsection eId="d4e447">
<num>5</num>
<content>
<p>In the application of section 20E by virtue of subsection (1) above, a reference to the earner includes a reference to a pensioner or survivor whose pension is subjected to GMP conversion.</p>
</content>
</subsection>
</section>
<section eId="d4e456">
<num>20H</num>
<heading>Enforcement of GMP conversion conditions</heading>
<subsection eId="d4e460">
<num>1</num>
<intro>
<p>If the Regulatory Authority thinks that the conditions of section 20B have not been satisfied in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G, the Regulatory Authority may make an order declaring the amendment, modification or adjustment void—</p>
</intro>
<paragraph eId="d4e466">
<num>a</num>
<content>
<p>in respect of a specified person or class of person,</p>
</content>
</paragraph>
<paragraph eId="d4e472">
<num>b</num>
<content>
<p>to a specified extent, and</p>
</content>
</paragraph>
<paragraph eId="d4e478">
<num>c</num>
<content>
<p>as from a specified time.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e484">
<num>2</num>
<intro>
<p>Where the Regulatory Authority makes an order under subsection (1) it may—</p>
</intro>
<paragraph eId="d4e490">
<num>a</num>
<content>
<p>require the trustees of the scheme concerned to take specified steps;</p>
</content>
</paragraph>
<paragraph eId="d4e496">
<num>b</num>
<content>
<p>declare that specified action of the trustees shall not be treated as a contravention of the scheme if it would not have been a contravention if the order under subsection (1) had not been made.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e502">
<num>3</num>
<content>
<p>An order may be made under subsection (1) before or after the amendment, modification or adjustment takes effect.</p>
</content>
</subsection>
<subsection eId="d4e508">
<num>4</num>
<intro>
<p>If the Regulatory Authority thinks that the process of effecting a GMP conversion of a scheme has been commenced and that a relevant condition of section 20B is not being complied with, or may not be complied with, the Regulatory Authority may by order—</p>
</intro>
<paragraph eId="d4e514">
<num>a</num>
<content>
<p>prohibit the taking of further steps in the GMP conversion (whether generally or in relation to specified steps), and</p>
</content>
</paragraph>
<paragraph eId="d4e520">
<num>b</num>
<content>
<p>require the trustees of the scheme to take specified steps before resuming the process of GMP conversion.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e526">
<num>5</num>
<content>
<p>Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) shall apply to a trustee who has failed to take all reasonable steps to secure compliance with the conditions of section 20B in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G.</p>
</content>
</subsection>
</section>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-12-4">
<num>4</num>
<content>
<p>
In section 5(2A) of that Act (requirements for certification) for “sections 9 to 19” substitute
<mod>
<quotedText>“ sections 9 to 20E ”</quotedText>
</mod>
.
</p>
</content>
</subsection>
<subsection eId="section-12-5">
<num>5</num>
<content>
<p>At the end of section 43 of that Act (deductions from social security payments) add—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<subsection eId="d4e550">
<num>9</num>
<content>
<p>For the purposes of section 42, a person shall be treated as entitled to a guaranteed minimum pension to which, in the opinion of the Commissioners for Her Majesty's Revenue and Customs, he would have been entitled but for the amendment of a scheme so that it no longer contains the guaranteed minimum pension rules.</p>
</content>
</subsection>
<subsection eId="d4e556">
<num>10</num>
<content>
<p>Where the earner's accrued rights have been transferred after the amendment of the scheme, in making the calculation under subsection (9) the Commissioners shall assume the application of section 12(1) after the transfer.</p>
</content>
</subsection>
<subsection eId="d4e562">
<num>11</num>
<content>
<p>In making the calculation under subsection (9) the Commissioners shall ignore any effect of the scheme being wound up.</p>
</content>
</subsection>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-12-6">
<num>6</num>
<content>
<p>
In Article 92(5) of the Pensions (Northern Ireland) Order 2005 (
<abbr class="Acronym" title="Northern Ireland">NI</abbr>
1) (Pensions Regulator: special procedure) after sub-paragraph (t) insert—
</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="secondary order main default" startQuote="" endQuote="">
<subparagraph eId="d4e580">
<num>ta</num>
<content>
<p>a power under section 20H of the Pension Schemes Act;</p>
</content>
</subparagraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-12-7">
<num>7</num>
<content>
<p>At the end of Part 1 of Schedule 2 to that Order (reserved regulatory functions: Pension Schemes Act) add—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="unknown unknown schedule default" startQuote="" endQuote="">
<paragraph eId="d4e597">
<num>3A</num>
<heading/>
<content>
<p>A power under section 20H (compliance with conditions of conversion of guaranteed minimum pension).</p>
</content>
</paragraph>
</quotedStructure>
</mod>
<inline name="AppendText">.</inline>
</p>
</content>
</subsection>
<subsection eId="section-12-8">
<num>8</num>
<intro>
<p>Subsection (9) applies where—</p>
</intro>
<paragraph eId="section-12-8-a">
<num>a</num>
<content>
<p>a person has been in receipt of a guaranteed minimum pension and a Category A or Category B retirement pension,</p>
</content>
</paragraph>
<paragraph eId="section-12-8-b">
<num>b</num>
<content>
<p>the guaranteed minimum pension has been increased in accordance with section 11(1) of the Pension Schemes Act or the Category A or Category B retirement pension has been increased in accordance with paragraph 5 of Schedule 5 to the Contributions and Benefits Act (increase of pension where commencement of guaranteed minimum pension postponed),</p>
</content>
</paragraph>
<paragraph eId="section-12-8-c">
<num>c</num>
<content>
<p>
the pension scheme under which the guaranteed minimum pension is paid is subject to GMP conversion
<ins class="key-3375d6a5e32c1e54df2a6ca4918b5875-1658824895997 first last">
<noteRef href="#key-3375d6a5e32c1e54df2a6ca4918b5875" marker="F1" class="commentary attribute F"/>
in relation to the person
</ins>
, and
</p>
</content>
</paragraph>
<paragraph eId="section-12-8-d">
<num>d</num>
<content>
<p>
an order under section 132 of the Administration Act would have applied to the person in respect of the increase mentioned in paragraph (b) but for the scheme having been subject to GMP conversion
<ins class="key-bef03f15a0a7a4deffdd8b4ff1b691e4-1658824996180 first last">
<noteRef href="#key-bef03f15a0a7a4deffdd8b4ff1b691e4" marker="F2" class="commentary attribute F"/>
in relation to the person
</ins>
.
</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-12-9">
<num>9</num>
<content>
<p>The person's Category A or Category B retirement pension shall be increased by the amount by which it would have increased as a result of the order.</p>
</content>
</subsection>
<subsection eId="section-12-10">
<num>10</num>
<content>
<p>
If paragraph 5 of Schedule 5 to the Contributions and Benefits Act (increase of pension for survivor of “S”) would apply to a person but for the fact that the scheme of which S was a member was subject to GMP conversion
<ins class="key-388cd9c8e223a3c08b7956f38a66d61c-1658825037019 first last">
<noteRef href="#key-388cd9c8e223a3c08b7956f38a66d61c" marker="F3" class="commentary attribute F"/>
in relation to S
</ins>
before S's death, the paragraph shall apply to the person (with any necessary modifications) despite that fact.
</p>
</content>
</subsection>
<subsection eId="section-12-11">
<num>11</num>
<content>
<p>
In subsections (8)(c) and (d) and (10) “
<term refersTo="#term-gmp-conversion">GMP conversion</term>
” has the meaning given by section 20A of the Pension Schemes Act
<noteRef href="#key-39c44ad9bb284e6e8384cc2c3d39598c" marker="F4" class="commentary F"/>
....
</p>
</content>
</subsection>
<subsection eId="section-12-12">
<num>12</num>
<content>
<p>
In section 181 of the Pension Schemes Act (Assembly,
<abbr title="et cetera" xml:lang="la">etc.</abbr>
control of regulations and orders) in subsection (2) after “the Department under section” insert
<mod>
<quotedText>“ 20B(5) ”</quotedText>
</mod>
.
</p>
</content>
</subsection>
</section>
</hcontainer>
</part>
</portionBody>
</portion>
</akomaNtoso>