PART 2Collective money purchase benefits: Northern Ireland

Valuation and benefit adjustment

I1I269Calculation of benefits

1

A collective money purchase scheme must have rules about how the rate or amount of benefits provided under the scheme is to be determined.

2

The rules must include—

a

rules for determining the available assets of the scheme and their value,

b

rules for determining the required amount, and

c

rules about how the rate or amount of benefits provided under the scheme is to be adjusted from time to time, including rules about when adjustments are to take effect.

3

In this section “the available assets of the scheme” and “the required amount” have the meaning given in section 53(2).

4

The Department may by regulations make provision about the matters mentioned in subsections (1) and (2), including provision about the methods and assumptions to be used.

5

Regulations under subsection (4) making provision about the determination of the required amount may, among other things, make provision about—

a

how past or proposed adjustments to the rate or amount of benefits provided under the scheme are to be treated;

b

assumptions to be made about future adjustments to the rate or amount of such benefits.

6

Regulations under subsection (4) may, among other things—

a

provide for alternative methods and assumptions;

b

require or enable the trustees to decide which methods and assumptions are to be used;

c

specify matters that the trustees must take into account, or principles they must follow, in making such decisions.

7

Regulations under subsection (4)—

a

may make provision applying in relation to rights under the scheme that have already accrued;

b

override the rules of the scheme to the extent that the rules conflict with the regulations.

8

Regulations under subsection (4) are subject to confirmatory procedure.