SI 2001/3649

Words in Sch. 5 para. 6(2)(a) omitted (31.12.2020) by virtue of The Occupational and Personal Pension Schemes (Amendment etc.) (Northern Ireland) (EU Exit) Regulations 2019 (S.I. 2019/193), regs. 1, 4(2); 2020 c. 1, Sch. 5 para. 1(1)

Words in Sch. 5 para. 7(1) substituted (6.4.2006) by Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), art. 16(5)(a)

Word in Sch. 5 para. 7(1)(a) substituted (6.4.2006) by Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), art. 16(5)(b)

Sch. 5 para. 7(2) repealed (6.4.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(1), Sch. 10 Pt. 2; S.R. 2009/22, art. 2(2)(d)

Sch. 5 para. 7(6) repealed (6.4.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(1), Sch. 10 Pt. 2; S.R. 2009/22, art. 2(2)(d)

2005 NI 1

2005 NI 1

Sch. 5 modified (1.8.2006) by Pension Protection Fund (Pension Sharing) Regulations (Northern Ireland) 2006 (S.R. 2006/282), reg. 2(2)(d)

http://www.legislation.gov.uk/nisi/1999/3147/schedule/5The Welfare Reform and Pensions (Northern Ireland) Order 1999texttext/xmlenStatute Law Database2021-08-26Expert Participation2020-12-31SCHEDULESSCHEDULE 5

Article 32.

PENSION CREDITS: MODE OF DISCHARGEFunded pension schemes1(1)

This paragraph applies to a pension credit which derives from—

(a)

a funded occupational pension scheme, or

(b)

a personal pension scheme.

(2)

The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit—

(a)

with his consent, or

(b)

in accordance with regulations made by the Department.

(3)

The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a)

the qualifying arrangement is not disqualified as a destination for the credit,

(b)

the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c)

payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.

(4)

For the purposes of sub-paragraph (2), no account is to be taken of the consent of the person entitled to the pension credit unless—

(a)

it is given after receipt of notice in writing of an offer to discharge liability in respect of the credit by making a payment under sub-paragraph (3), or

(b)

it is not withdrawn within 7 days of receipt of such notice.

Unfunded public service pension schemes2.(1)

This paragraph applies to a pension credit which derives from an occupational pension scheme which is—

(a)

not funded, and

(b)

a public service pension scheme.

(2)

The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.

(3)

If such a scheme as is mentioned in sub-paragraph (1) is closed to new members, the appropriate authority in relation to that scheme may by regulations specify another public service pension scheme as an alternative to it for the purposes of this paragraph.

(4)

Where the trustees or managers of a scheme in relation to which an alternative is specified under sub-paragraph (3) are subject to liability in respect of a pension credit, they may—

(a)

discharge their liability in respect of the credit by securing that appropriate rights are conferred on the person entitled to the credit by the trustees or managers of the alternative scheme, and

(b)

for the purpose of so discharging their liability, require the trustees or managers of the alternative scheme to take such steps as may be required.

(5)

In sub-paragraph (3), “the appropriate authority”, in relation to a public service pension scheme, means such Minister of the Crown or government department as may be designated by the Treasury or the Department of Finance and Personnel as having responsibility for the scheme.

Other unfunded occupational pension schemes3.(1)

This paragraph applies to a pension credit which derives from an occupational pension scheme which is—

(a)

not funded, and

(b)

not a public service pension scheme.

(2)

The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.

(3)

The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a)

the qualifying arrangement is not disqualified as a destination for the credit,

(b)

the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c)

payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.

Other pension arrangements4.(1)

This paragraph applies to a pension credit which derives from—

(a)

a retirement annuity contract,

(b)

an annuity or insurance policy purchased or transferred for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, or

(c)

an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit.

(2)

The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a)

the qualifying arrangement is not disqualified as a destination for the credit,

(b)

the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c)

payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.

(3)

The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by entering into an annuity contract with the person entitled to the credit if the contract is not disqualified as a destination for the credit.

(4)

The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may, in such circumstances as the Department may prescribe by regulations, discharge his liability in respect of the credit by assuming an obligation to provide an annuity for the person entitled to the credit.

(5)

In sub-paragraph (1)(c), “pension credit” includes a credit under section 29(1)(b) of the Welfare Reform Act.

Appropriate rights5.

For the purposes of this Schedule, rights conferred on the person entitled to a pension credit are appropriate if—

(a)

they are conferred with effect from, and including, the day on which the order, or provision, under which the credit arises takes effect, and

(b)

their value, when calculated in accordance with regulations made by the Department, equals the amount of the credit.

Qualifying arrangements6.(1)

The following are qualifying arrangements for the purposes of this Schedule—

(a)

an occupational pension scheme,

(b)

a personal pension scheme,

(c)

an appropriate annuity contract,

(d)

an appropriate policy of insurance, and

(e)

an overseas arrangement within the meaning of the Contracting-out (Transfer and Transfer Payment) Regulations (Northern S.R. 1996/618. Ireland) 1996.

(2)

An annuity contract or policy of insurance is appropriate for the purposes of sub-paragraph (1) if, at the time it is entered into or taken out, the insurer with which it is entered into or taken out—

(a)

is carrying on. . . long-term insurance business in the United Kingdom ..., and

(b)

satisfies such requirements as the Department may prescribe by regulations.

(3)

"Insurer" and "long-term insurance business" have the meaning given in section 175A of the Pension Schemes Act.

Disqualification as destination for pension credit7.(1)

If a pension credit derives from a pension arrangement which is a registered pension scheme under section 153 of the Finance Act 2004, an arrangement is disqualified as a destination for the credit unless—

(a)

it is also registered for those purposes, or

(b)

it satisfies such requirements as the Department may prescribe by regulations.

(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Department, equals the credit.

(4)

An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Department may prescribe by regulations.

(5)

The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of the Inland Revenue.

(6)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustments to amount of pension credit8.(1)

If—

(a)

a pension credit derives from an occupational pension scheme,

(b)

the scheme is one to which Part IV of the Pensions (Northern Ireland) Order 2005 (scheme funding) applies,

(c)

the scheme is underfunded on the valuation day, and

(d)

such circumstances as the Department may prescribe by regulations apply,

paragraph 1(3) shall have effect in relation to the credit as if the reference to the amount of the credit were to such lesser amount as may be determined in accordance with regulations made by the Department.

(2)

Whether a scheme is underfunded for the purposes of sub-paragraph (1)(c) shall be determined in accordance with regulations made by the Department.

(3)

For the purposes of that provision, the valuation day is the day by reference to which the cash equivalent on which the amount of the pension credit depends falls to be calculated.

9.

If—

(a)

a person's shareable rights under a pension arrangement have become subject to a pension debit, and

(b)

the person responsible for the arrangement makes a payment which is referable to those rights without knowing of the pension debit,

this Schedule shall have effect as if the amount of the corresponding pension credit were such lesser amount as may be determined in accordance with regulations made by the Department.

10.

The Department may by regulations make provision for paragraph 1(3), 3(3) or 4(2) to have effect, where payment is made after the end of the implementation period for the pension credit, as if the reference to the amount of the credit were to such larger amount as may be determined in accordance with the regulations.

General11.

Liability in respect of a pension credit shall be treated as discharged if the effect of paragraph 8(1) or 9 is to reduce it to zero.

12.

Liability in respect of a pension credit may not be discharged otherwise than in accordance with this Schedule.

13.

Regulations under paragraph 5(b) or 7(3) may provide for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the regulations.

13A.

The provisions of this Schedule are subject to—

(a)

Article 73A(3) and (6) of the Pensions Order (prohibition on new members during winding up of scheme: exception for discharge of pension credit derived from the scheme), and

(b)

Article 117(2) and (8) of the Pensions (Northern Ireland) Order 2005 (prohibition on new members during an assessment period in relation to a scheme: exception for discharge of pension credit derived from the scheme).

14.

In this Schedule—

“funded”, in relation to an occupational pension scheme, means that the scheme meets its liabilities out of a fund accumulated for the purpose during the life of the scheme;

“public service pension scheme” has the same meaning as in the Pension Schemes Act.

This XML file does not appear to have any style information associated with it. The document tree is shown below.
<akomaNtoso xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" 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">
<act name="nisi">
<meta>
<identification source="#">
<FRBRWork>
<FRBRthis value="http://www.legislation.gov.uk/id/nisi/1999/3147"/>
<FRBRuri value="http://www.legislation.gov.uk/id/nisi/1999/3147"/>
<FRBRdate date="1999-11-24" name="made"/>
<FRBRauthor href="http://www.legislation.gov.uk/id/government/uk"/>
<FRBRcountry value="GB-NIR"/>
<FRBRsubtype value="order"/>
<FRBRnumber value="3147"/>
<FRBRnumber value="NI. 11"/>
<FRBRname value="S.I. 1999/3147 (N.I. 11)"/>
<FRBRprescriptive value="true"/>
</FRBRWork>
<FRBRExpression>
<FRBRthis value="http://www.legislation.gov.uk/nisi/1999/3147/2020-12-31"/>
<FRBRuri value="http://www.legislation.gov.uk/nisi/1999/3147/2020-12-31"/>
<FRBRdate date="2020-12-31" name="validFrom"/>
<FRBRauthor href="#"/>
<FRBRlanguage language="eng"/>
</FRBRExpression>
<FRBRManifestation>
<FRBRthis value="http://www.legislation.gov.uk/nisi/1999/3147/2020-12-31/data.akn"/>
<FRBRuri value="http://www.legislation.gov.uk/nisi/1999/3147/2020-12-31/data.akn"/>
<FRBRdate date="2024-11-28Z" name="transform"/>
<FRBRauthor href="http://www.legislation.gov.uk"/>
<FRBRformat value="application/akn+xml"/>
</FRBRManifestation>
</identification>
<lifecycle source="#">
<eventRef refersTo="#made" date="1999-11-24" eId="date-made" source="#"/>
<eventRef date="2006-01-01" eId="date-2006-01-01" source="#"/>
<eventRef date="2009-04-06" eId="date-2009-04-06" source="#"/>
<eventRef date="2020-12-31" eId="date-2020-12-31" source="#"/>
</lifecycle>
<analysis source="#">
<restrictions source="#">
<restriction refersTo="#extent-ni" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-6" refersTo="#extent-ni" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-7" refersTo="#extent-ni" type="jurisdiction"/>
<restriction refersTo="#period-from-2020-12-31" type="jurisdiction"/>
<restriction href="#schedules" refersTo="#period-from-2020-12-31" type="jurisdiction"/>
<restriction href="#schedule-5" refersTo="#period-from-2020-12-31" type="jurisdiction"/>
<restriction href="#schedule-5-part" refersTo="#period-from-2020-12-31" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-funded-pension-schemes" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-1" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-unfunded-public-service-pension-schemes" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-2" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-other-unfunded-occupational-pension-schemes" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-3" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-other-pension-arrangements" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-4" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-appropriate-rights" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-5" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-qualifying-arrangements" refersTo="#period-from-2020-12-31" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-6" refersTo="#period-from-2020-12-31" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-disqualification-as-destination-for-pension-credit" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-7" refersTo="#period-from-2009-04-06" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-adjustments-to-amount-of-pension-credit" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-8" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-9" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-10" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-part-crossheading-general" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-11" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-12" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-13" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-13A" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
<restriction href="#schedule-5-paragraph-14" refersTo="#period-from-2006-01-01" type="jurisdiction"/>
</restrictions>
<otherAnalysis source="">
<uk:commentary href="#schedule-5" refersTo="#c19644431"/>
<uk:commentary href="#schedule-5-paragraph-6" refersTo="#c17091101"/>
<uk:commentary href="#schedule-5-paragraph-6" refersTo="#key-e1782db4467a68ab3b0a9c4109f27e00"/>
<uk:commentary href="#schedule-5-paragraph-7" refersTo="#c19648541"/>
<uk:commentary href="#schedule-5-paragraph-7" refersTo="#c19651311"/>
<uk:commentary href="#schedule-5-paragraph-7" refersTo="#c21164201"/>
<uk:commentary href="#schedule-5-paragraph-7" refersTo="#c21164211"/>
<uk:commentary href="#schedule-5-paragraph-8" refersTo="#c17091151"/>
<uk:commentary href="#schedule-5-paragraph-13A" refersTo="#c17091171"/>
</otherAnalysis>
</analysis>
<temporalData source="#">
<temporalGroup eId="period-from-2006-01-01">
<timeInterval start="#date-2006-01-01" refersTo="#"/>
</temporalGroup>
<temporalGroup eId="period-from-2009-04-06">
<timeInterval start="#date-2009-04-06" refersTo="#"/>
</temporalGroup>
<temporalGroup eId="period-from-2020-12-31">
<timeInterval start="#date-2020-12-31" refersTo="#"/>
</temporalGroup>
</temporalData>
<references source="#">
<TLCEvent eId="made" href="" showAs="Made"/>
<TLCLocation eId="extent-ni" href="" showAs="N.I."/>
</references>
<notes source="#">
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c17091101" marker="F1">
<p>SI 2001/3649</p>
</note>
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="key-e1782db4467a68ab3b0a9c4109f27e00" marker="F2">
<p>
Words in
<ref eId="caeygj8w4-00006" class="subref" href="http://www.legislation.gov.uk/id/nisi/1999/3147/schedule/5/paragraph/6/2/a">Sch. 5 para. 6(2)(a)</ref>
omitted (31.12.2020) by virtue of
<ref eId="caeygj8w4-00007" href="http://www.legislation.gov.uk/id/uksi/2019/193">The Occupational and Personal Pension Schemes (Amendment etc.) (Northern Ireland) (EU Exit) Regulations 2019 (S.I. 2019/193)</ref>
,
<ref eId="caeygj8w4-00008" class="subref" href="http://www.legislation.gov.uk/id/uksi/2019/193/regulation/1">regs. 1</ref>
,
<ref eId="caeygj8w4-00009" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2019/193/regulation/4/2">4(2)</ref>
;
<ref eId="caeygj8w4-00010" href="http://www.legislation.gov.uk/id/ukpga/2020/1">2020 c. 1</ref>
,
<ref eId="caeygj8w4-00011" class="subref" href="http://www.legislation.gov.uk/id/ukpga/2020/1/schedule/5/paragraph/1/1">Sch. 5 para. 1(1)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c19648541" marker="F3">
<p>
Words in
<ref eId="c00421" class="subref" href="http://www.legislation.gov.uk/id/nisi/1999/3147/schedule/5/paragraph/7/1">Sch. 5 para. 7(1)</ref>
substituted (6.4.2006) by
<ref eId="c00422" href="http://www.legislation.gov.uk/id/uksi/2006/745">Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745)</ref>
,
<ref eId="c00423" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2006/745/article/16/5/a">art. 16(5)(a)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c19651311" marker="F4">
<p>
Word in
<ref eId="c00424" class="subref" href="http://www.legislation.gov.uk/id/nisi/1999/3147/schedule/5/paragraph/7/1/a">Sch. 5 para. 7(1)(a)</ref>
substituted (6.4.2006) by
<ref eId="c00425" href="http://www.legislation.gov.uk/id/uksi/2006/745">Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745)</ref>
,
<ref eId="c00426" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2006/745/article/16/5/b">art. 16(5)(b)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c21164201" marker="F5">
<p>
<ref eId="c00427" class="subref" href="http://www.legislation.gov.uk/id/nisi/1999/3147/schedule/5/paragraph/7/2">Sch. 5 para. 7(2)</ref>
repealed (6.4.2009) by
<ref eId="c00428" href="http://www.legislation.gov.uk/id/nia/2008/13">Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13)</ref>
,
<ref eId="c00429" class="subref" href="http://www.legislation.gov.uk/id/nia/2008/13/section/116">ss. 116</ref>
,
<ref eId="c00430" class="subref" href="http://www.legislation.gov.uk/id/nia/2008/13/section/118/1">118(1)</ref>
,
<ref eId="c00431" class="subref operative" href="http://www.legislation.gov.uk/id/nia/2008/13/schedule/10/part/2">Sch. 10 Pt. 2</ref>
;
<ref eId="c00432" href="http://www.legislation.gov.uk/id/nisr/2009/22">S.R. 2009/22</ref>
,
<ref eId="c00433" class="subref operative" href="http://www.legislation.gov.uk/id/nisr/2009/22/article/2/2/d">art. 2(2)(d)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c21164211" marker="F6">
<p>
<ref eId="c00434" class="subref" href="http://www.legislation.gov.uk/id/nisi/1999/3147/schedule/5/paragraph/7/6">Sch. 5 para. 7(6)</ref>
repealed (6.4.2009) by
<ref eId="c00435" href="http://www.legislation.gov.uk/id/nia/2008/13">Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13)</ref>
,
<ref eId="c00436" class="subref" href="http://www.legislation.gov.uk/id/nia/2008/13/section/116">ss. 116</ref>
,
<ref eId="c00437" class="subref" href="http://www.legislation.gov.uk/id/nia/2008/13/section/118/1">118(1)</ref>
,
<ref eId="c00438" class="subref operative" href="http://www.legislation.gov.uk/id/nia/2008/13/schedule/10/part/2">Sch. 10 Pt. 2</ref>
;
<ref eId="c00439" href="http://www.legislation.gov.uk/id/nisr/2009/22">S.R. 2009/22</ref>
,
<ref eId="c00440" class="subref operative" href="http://www.legislation.gov.uk/id/nisr/2009/22/article/2/2/d">art. 2(2)(d)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c17091151" marker="F7">
<p>
<ref eId="c00441" href="http://www.legislation.gov.uk/2005/ni1">2005 NI 1</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c17091171" marker="F8">
<p>
<ref eId="c00442" href="http://www.legislation.gov.uk/2005/ni1">2005 NI 1</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="C" class="commentary C" eId="c19644431" marker="C1">
<p>
<ref eId="c00443" class="subref" href="http://www.legislation.gov.uk/id/nisi/1999/3147/schedule/5">Sch. 5</ref>
modified (1.8.2006) by
<ref eId="c00444" href="http://www.legislation.gov.uk/id/nisr/2006/282">Pension Protection Fund (Pension Sharing) Regulations (Northern Ireland) 2006 (S.R. 2006/282)</ref>
,
<ref eId="c00445" class="subref operative" href="http://www.legislation.gov.uk/id/nisr/2006/282/regulation/2/2/d">reg. 2(2)(d)</ref>
</p>
</note>
</notes>
<proprietary 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/" source="#">
<dc:identifier>http://www.legislation.gov.uk/nisi/1999/3147/schedule/5</dc:identifier>
<dc:title>The Welfare Reform and Pensions (Northern Ireland) Order 1999</dc:title>
<dc:type>text</dc:type>
<dc:format>text/xml</dc:format>
<dc:language>en</dc:language>
<dc:publisher>Statute Law Database</dc:publisher>
<dc:subject scheme="SIheading"/>
<dc:modified>2021-08-26</dc:modified>
<dc:contributor>Expert Participation</dc:contributor>
<dct:valid>2020-12-31</dct:valid>
<ukm:SecondaryMetadata>
<ukm:DocumentClassification>
<ukm:DocumentCategory Value="secondary"/>
<ukm:DocumentMainType Value="NorthernIrelandOrderInCouncil"/>
<ukm:DocumentStatus Value="revised"/>
<ukm:DocumentMinorType Value="order"/>
</ukm:DocumentClassification>
<ukm:Year Value="1999"/>
<ukm:Number Value="3147"/>
<ukm:AlternativeNumber Category="NI" Value="11"/>
<ukm:Made Date="1999-11-24"/>
</ukm:SecondaryMetadata>
<ukm:Alternatives>
<ukm:Alternative Date="2008-11-13" URI="http://www.legislation.gov.uk/nisi/1999/3147/pdfs/uksi_19993147_en.pdf" Title="Print Version"/>
</ukm:Alternatives>
<ukm:Statistics>
<ukm:TotalParagraphs Value="131"/>
<ukm:BodyParagraphs Value="106"/>
<ukm:ScheduleParagraphs Value="25"/>
<ukm:AttachmentParagraphs Value="0"/>
<ukm:TotalImages Value="0"/>
</ukm:Statistics>
</proprietary>
</meta>
<body>
<hcontainer name="schedules" eId="schedules">
<heading>SCHEDULES</heading>
<hcontainer name="schedule" eId="schedule-5" uk:target="true">
<num>
SCHEDULE 5
<authorialNote class="referenceNote">
<p>Article 32.</p>
</authorialNote>
</num>
<heading>PENSION CREDITS: MODE OF DISCHARGE</heading>
<part eId="schedule-5-part">
<heading/>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-funded-pension-schemes">
<heading>
<i>Funded pension schemes</i>
</heading>
<paragraph eId="schedule-5-paragraph-1" class="schProv1">
<num>1</num>
<subparagraph eId="schedule-5-paragraph-1-1">
<num>(1)</num>
<intro>
<p>This paragraph applies to a pension credit which derives from—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-1-1-a">
<num>(a)</num>
<content>
<p>a funded occupational pension scheme, or</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-1-1-b">
<num>(b)</num>
<content>
<p>a personal pension scheme.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-1-2">
<num>(2)</num>
<intro>
<p>The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-1-2-a">
<num>(a)</num>
<content>
<p>with his consent, or</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-1-2-b">
<num>(b)</num>
<content>
<p>in accordance with regulations made by the Department.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-1-3">
<num>(3)</num>
<intro>
<p>The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-1-3-a">
<num>(a)</num>
<content>
<p>the qualifying arrangement is not disqualified as a destination for the credit,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-1-3-b">
<num>(b)</num>
<content>
<p>the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-1-3-c">
<num>(c)</num>
<content>
<p>payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-1-4">
<num>(4)</num>
<intro>
<p>For the purposes of sub-paragraph (2), no account is to be taken of the consent of the person entitled to the pension credit unless—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-1-4-a">
<num>(a)</num>
<content>
<p>it is given after receipt of notice in writing of an offer to discharge liability in respect of the credit by making a payment under sub-paragraph (3), or</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-1-4-b">
<num>(b)</num>
<content>
<p>it is not withdrawn within 7 days of receipt of such notice.</p>
</content>
</level>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-unfunded-public-service-pension-schemes">
<heading>
<i>Unfunded public service pension schemes</i>
</heading>
<paragraph eId="schedule-5-paragraph-2" class="schProv1">
<num>2.</num>
<subparagraph eId="schedule-5-paragraph-2-1">
<num>(1)</num>
<intro>
<p>This paragraph applies to a pension credit which derives from an occupational pension scheme which is—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-2-1-a">
<num>(a)</num>
<content>
<p>not funded, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-2-1-b">
<num>(b)</num>
<content>
<p>a public service pension scheme.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-2-2">
<num>(2)</num>
<content>
<p>The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-2-3">
<num>(3)</num>
<content>
<p>If such a scheme as is mentioned in sub-paragraph (1) is closed to new members, the appropriate authority in relation to that scheme may by regulations specify another public service pension scheme as an alternative to it for the purposes of this paragraph.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-2-4">
<num>(4)</num>
<intro>
<p>Where the trustees or managers of a scheme in relation to which an alternative is specified under sub-paragraph (3) are subject to liability in respect of a pension credit, they may—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-2-4-a">
<num>(a)</num>
<content>
<p>discharge their liability in respect of the credit by securing that appropriate rights are conferred on the person entitled to the credit by the trustees or managers of the alternative scheme, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-2-4-b">
<num>(b)</num>
<content>
<p>for the purpose of so discharging their liability, require the trustees or managers of the alternative scheme to take such steps as may be required.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-2-5">
<num>(5)</num>
<content>
<p>In sub-paragraph (3), “the appropriate authority”, in relation to a public service pension scheme, means such Minister of the Crown or government department as may be designated by the Treasury or the Department of Finance and Personnel as having responsibility for the scheme.</p>
</content>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-other-unfunded-occupational-pension-schemes">
<heading>
<i>Other unfunded occupational pension schemes</i>
</heading>
<paragraph eId="schedule-5-paragraph-3" class="schProv1">
<num>3.</num>
<subparagraph eId="schedule-5-paragraph-3-1">
<num>(1)</num>
<intro>
<p>This paragraph applies to a pension credit which derives from an occupational pension scheme which is—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-3-1-a">
<num>(a)</num>
<content>
<p>not funded, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-3-1-b">
<num>(b)</num>
<content>
<p>not a public service pension scheme.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-3-2">
<num>(2)</num>
<content>
<p>The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-3-3">
<num>(3)</num>
<intro>
<p>The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-3-3-a">
<num>(a)</num>
<content>
<p>the qualifying arrangement is not disqualified as a destination for the credit,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-3-3-b">
<num>(b)</num>
<content>
<p>the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-3-3-c">
<num>(c)</num>
<content>
<p>payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.</p>
</content>
</level>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-other-pension-arrangements">
<heading>
<i>Other pension arrangements</i>
</heading>
<paragraph eId="schedule-5-paragraph-4" class="schProv1">
<num>4.</num>
<subparagraph eId="schedule-5-paragraph-4-1">
<num>(1)</num>
<intro>
<p>This paragraph applies to a pension credit which derives from—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-4-1-a">
<num>(a)</num>
<content>
<p>a retirement annuity contract,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-4-1-b">
<num>(b)</num>
<content>
<p>an annuity or insurance policy purchased or transferred for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, or</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-4-1-c">
<num>(c)</num>
<content>
<p>an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-4-2">
<num>(2)</num>
<intro>
<p>The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-4-2-a">
<num>(a)</num>
<content>
<p>the qualifying arrangement is not disqualified as a destination for the credit,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-4-2-b">
<num>(b)</num>
<content>
<p>the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-4-2-c">
<num>(c)</num>
<content>
<p>payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-4-3">
<num>(3)</num>
<content>
<p>The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by entering into an annuity contract with the person entitled to the credit if the contract is not disqualified as a destination for the credit.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-4-4">
<num>(4)</num>
<content>
<p>The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may, in such circumstances as the Department may prescribe by regulations, discharge his liability in respect of the credit by assuming an obligation to provide an annuity for the person entitled to the credit.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-4-5">
<num>(5)</num>
<content>
<p>In sub-paragraph (1)(c), “pension credit” includes a credit under section 29(1)(b) of the Welfare Reform Act.</p>
</content>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-appropriate-rights">
<heading>
<i>Appropriate rights</i>
</heading>
<paragraph eId="schedule-5-paragraph-5" class="schProv1">
<num>5.</num>
<intro>
<p>For the purposes of this Schedule, rights conferred on the person entitled to a pension credit are appropriate if—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-5-a">
<num>(a)</num>
<content>
<p>they are conferred with effect from, and including, the day on which the order, or provision, under which the credit arises takes effect, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-5-b">
<num>(b)</num>
<content>
<p>their value, when calculated in accordance with regulations made by the Department, equals the amount of the credit.</p>
</content>
</level>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-qualifying-arrangements">
<heading>
<i>Qualifying arrangements</i>
</heading>
<paragraph eId="schedule-5-paragraph-6" class="schProv1">
<num>6.</num>
<subparagraph eId="schedule-5-paragraph-6-1">
<num>(1)</num>
<intro>
<p>The following are qualifying arrangements for the purposes of this Schedule—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-6-1-a">
<num>(a)</num>
<content>
<p>an occupational pension scheme,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-6-1-b">
<num>(b)</num>
<content>
<p>a personal pension scheme,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-6-1-c">
<num>(c)</num>
<content>
<p>an appropriate annuity contract,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-6-1-d">
<num>(d)</num>
<content>
<p>an appropriate policy of insurance, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-6-1-e">
<num>(e)</num>
<content>
<p>an overseas arrangement within the meaning of the Contracting-out (Transfer and Transfer Payment) Regulations (Northern S.R. 1996/618. Ireland) 1996.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-6-2">
<num>(2)</num>
<intro>
<p>
An annuity contract or policy of insurance is appropriate for the purposes of sub-paragraph (1) if, at the time it is entered into or taken out, the
<ins class="first last" ukl:ChangeId="d29p9706" ukl:CommentaryRef="c17091101">
<noteRef uk:name="commentary" href="#c17091101" class="commentary"/>
insurer
</ins>
with which it is entered into or taken out—
</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-6-2-a">
<num>(a)</num>
<content>
<p>
is carrying on
<noteRef href="#c17091101" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>
. . . long-term insurance business in the United Kingdom
<noteRef href="#key-e1782db4467a68ab3b0a9c4109f27e00" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>
..., and
</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-6-2-b">
<num>(b)</num>
<content>
<p>satisfies such requirements as the Department may prescribe by regulations.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-6-3">
<num>
<ins class="first" ukl:ChangeId="d29p9728" ukl:CommentaryRef="c17091101">
<noteRef uk:name="commentary" href="#c17091101" class="commentary"/>
(3)
</ins>
</num>
<content>
<p>
<ins class="last" ukl:ChangeId="d29p9728" ukl:CommentaryRef="c17091101">"Insurer" and "long-term insurance business" have the meaning given in section 175A of the Pension Schemes Act.</ins>
</p>
</content>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-disqualification-as-destination-for-pension-credit">
<heading>
<i>Disqualification as destination for pension credit</i>
</heading>
<paragraph eId="schedule-5-paragraph-7" class="schProv1">
<num>7.</num>
<subparagraph eId="schedule-5-paragraph-7-1">
<num>(1)</num>
<intro>
<p>
If a pension credit derives from a pension arrangement which is
<ins class="substitution first last" ukl:ChangeId="d29p9752" ukl:CommentaryRef="c19648541">
<noteRef uk:name="commentary" href="#c19648541" class="commentary"/>
a registered pension scheme under section 153 of the Finance Act 2004,
</ins>
an arrangement is disqualified as a destination for the credit unless—
</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-7-1-a">
<num>(a)</num>
<content>
<p>
it is also
<ins class="substitution first last" ukl:ChangeId="d29p9762" ukl:CommentaryRef="c19651311">
<noteRef uk:name="commentary" href="#c19651311" class="commentary"/>
registered
</ins>
for those purposes, or
</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-7-1-b">
<num>(b)</num>
<content>
<p>it satisfies such requirements as the Department may prescribe by regulations.</p>
</content>
</level>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-7-2">
<num>(2)</num>
<content>
<p>
<noteRef href="#c21164201" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-7-3">
<num>(3)</num>
<content>
<p>An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Department, equals the credit.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-7-4">
<num>(4)</num>
<content>
<p>An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Department may prescribe by regulations.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-7-5">
<num>(5)</num>
<content>
<p>The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of the Inland Revenue.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-7-6">
<num>(6)</num>
<content>
<p>
<noteRef href="#c21164211" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
</p>
</content>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-adjustments-to-amount-of-pension-credit">
<heading>
<i>Adjustments to amount of pension credit</i>
</heading>
<paragraph eId="schedule-5-paragraph-8" class="schProv1">
<num>8.</num>
<subparagraph eId="schedule-5-paragraph-8-1">
<num>(1)</num>
<intro>
<p>If—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-8-1-a">
<num>(a)</num>
<content>
<p>a pension credit derives from an occupational pension scheme,</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-8-1-b">
<num>(b)</num>
<content>
<p>
the scheme is one to which
<ins class="first last" ukl:ChangeId="d29p9832" ukl:CommentaryRef="c17091151">
<noteRef uk:name="commentary" href="#c17091151" class="commentary"/>
Part IV of the Pensions (Northern Ireland) Order 2005 (scheme funding)
</ins>
applies,
</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-8-1-c">
<num>(c)</num>
<content>
<p>the scheme is underfunded on the valuation day, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-8-1-d">
<num>(d)</num>
<content>
<p>such circumstances as the Department may prescribe by regulations apply,</p>
</content>
</level>
<wrapUp>
<p>paragraph 1(3) shall have effect in relation to the credit as if the reference to the amount of the credit were to such lesser amount as may be determined in accordance with regulations made by the Department.</p>
</wrapUp>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-8-2">
<num>(2)</num>
<content>
<p>Whether a scheme is underfunded for the purposes of sub-paragraph (1)(c) shall be determined in accordance with regulations made by the Department.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-5-paragraph-8-3">
<num>(3)</num>
<content>
<p>For the purposes of that provision, the valuation day is the day by reference to which the cash equivalent on which the amount of the pension credit depends falls to be calculated.</p>
</content>
</subparagraph>
</paragraph>
<paragraph eId="schedule-5-paragraph-9" class="schProv1">
<num>9.</num>
<intro>
<p>If—</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-9-a">
<num>(a)</num>
<content>
<p>a person's shareable rights under a pension arrangement have become subject to a pension debit, and</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-9-b">
<num>(b)</num>
<content>
<p>the person responsible for the arrangement makes a payment which is referable to those rights without knowing of the pension debit,</p>
</content>
</level>
<wrapUp>
<p>this Schedule shall have effect as if the amount of the corresponding pension credit were such lesser amount as may be determined in accordance with regulations made by the Department.</p>
</wrapUp>
</paragraph>
<paragraph eId="schedule-5-paragraph-10" class="schProv1">
<num>10.</num>
<content>
<p>The Department may by regulations make provision for paragraph 1(3), 3(3) or 4(2) to have effect, where payment is made after the end of the implementation period for the pension credit, as if the reference to the amount of the credit were to such larger amount as may be determined in accordance with the regulations.</p>
</content>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-part-crossheading-general">
<heading>
<i>General</i>
</heading>
<paragraph eId="schedule-5-paragraph-11" class="schProv1">
<num>11.</num>
<content>
<p>Liability in respect of a pension credit shall be treated as discharged if the effect of paragraph 8(1) or 9 is to reduce it to zero.</p>
</content>
</paragraph>
<paragraph eId="schedule-5-paragraph-12" class="schProv1">
<num>12.</num>
<content>
<p>Liability in respect of a pension credit may not be discharged otherwise than in accordance with this Schedule.</p>
</content>
</paragraph>
<paragraph eId="schedule-5-paragraph-13" class="schProv1">
<num>13.</num>
<content>
<p>Regulations under paragraph 5(b) or 7(3) may provide for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the regulations.</p>
</content>
</paragraph>
<paragraph eId="schedule-5-paragraph-13A" class="schProv1">
<num>
<ins class="first" ukl:ChangeId="d29p9919" ukl:CommentaryRef="c17091171">
<noteRef uk:name="commentary" href="#c17091171" class="commentary"/>
13A.
</ins>
</num>
<intro>
<p>
<ins ukl:ChangeId="d29p9919" ukl:CommentaryRef="c17091171">The provisions of this Schedule are subject to—</ins>
</p>
</intro>
<level class="para1" eId="schedule-5-paragraph-13A-a">
<num>
<ins ukl:ChangeId="d29p9919" ukl:CommentaryRef="c17091171">(a)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p9919" ukl:CommentaryRef="c17091171">Article 73A(3) and (6) of the Pensions Order (prohibition on new members during winding up of scheme: exception for discharge of pension credit derived from the scheme), and</ins>
</p>
</content>
</level>
<level class="para1" eId="schedule-5-paragraph-13A-b">
<num>
<ins ukl:ChangeId="d29p9919" ukl:CommentaryRef="c17091171">(b)</ins>
</num>
<content>
<p>
<ins class="last" ukl:ChangeId="d29p9919" ukl:CommentaryRef="c17091171">Article 117(2) and (8) of the Pensions (Northern Ireland) Order 2005 (prohibition on new members during an assessment period in relation to a scheme: exception for discharge of pension credit derived from the scheme).</ins>
</p>
</content>
</level>
</paragraph>
<paragraph eId="schedule-5-paragraph-14" class="schProv1">
<num>14.</num>
<content>
<p>In this Schedule—</p>
<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none">
<item>
<p>“funded”, in relation to an occupational pension scheme, means that the scheme meets its liabilities out of a fund accumulated for the purpose during the life of the scheme;</p>
</item>
<item>
<p>“public service pension scheme” has the same meaning as in the Pension Schemes Act.</p>
</item>
</blockList>
</content>
</paragraph>
</hcontainer>
</part>
</hcontainer>
</hcontainer>
</body>
</act>
</akomaNtoso>