The Social Security(Northern Ireland) Order 1989

Article 26.

SCHEDULE 6 OCCUPATIONAL AND PERSONAL PENSIONS

The Pensions Order

1.  In Article 37 (earner’s guaranteed minimum), after paragraph (2) insert the following paragraph—

“(2A) Where the amount of a person’s earnings for any period is relevant for any purpose of paragraph (1) or (2) and the Department is satisfied that records of those earnings have not been maintained or retained or are otherwise unobtainable, the Department may for that purpose—

(a) compute, in such manner as it thinks fit, an amount which shall be regarded as the amount of those earnings; or

(b) take their amount to be such sum as it may specify in the particular case.”.

2.—(1) In Article 43A (protection of earners' pensions), in paragraph (1C) (which defines “the relevant aggregate”), after sub-paragraph (c) add

“and

(d) in the case of an earner whose later earnings level is higher than his termination earnings level, the later earnings addition.”

(2) After paragraph (2) insert the following paragraphs—

“(2A) In this Article “the later earnings addition” means an amount equal to the difference between the relevant sum and what that sum would have been had the benefits in question been calculated by reference to the earner’s later earnings level.

(2B) In this Article—

“later earnings level” means the level of earnings by reference to which the benefits which constitute the relevant sum would have been calculated had the termination of employment date fallen on the cessation date;

“termination earnings level” means the level of earnings by reference to which those benefits would have been calculated had the cessation date fallen on the termination of employment date; and

“the cessation date” means the earlier of—

(a)

the date on which the earner ceased to be employed in relevant employment; and

(b)

the relevant date, within the meaning of paragraph (1).”.

(3) In paragraph (11) (definitions) for “short service benefit is” substitute ““relevant employment” and “short service benefit” are”.

3.—(1) In Article 43B (protection of widows' pensions), in paragraph (1A) (which defines “the relevant aggregate”), after sub-paragraph (c) add

“and

(d) in a case where the earner’s later earnings level was higher than his termination earnings level, the later earnings addition.”

(2) After paragraph (3) insert the following paragraphs—

“(3A) In this Article “the later earnings addition” means an amount equal to the difference between the relevant sum and what that sum would have been had the pension in question been calculated by reference to the earner’s later earnings level.

(3B) In this Article—

“later earnings level” means the level of earnings by reference to which the pension which constitutes the relevant sum would have been calculated had the termination of employment date fallen on the cessation date;

“termination earnings level” means the level of earnings by reference to which that pension would have been calculated had the cessation date fallen on the termination of employment date; and

“the cessation date” means the earlier of—

(a)

the date on which the earner ceased to be employed in relevant employment; and

(b)

the date which, in relation to the earner, was the relevant date within the meaning of Article 43A(1).”.

(3) After paragraph (5) add the following paragraph—

“(6) In this Article “relevant employment” shall be construed in accordance with Schedule 3.”.

4.—(1) In Article 43C (which, among other things, provides for Articles 43A and 43B to override provisions of pension schemes), in paragraph (3) (exceptions)—

(a) in sub-paragraph (a)(ii) omit “or 41”; and

(b) after sub-paragraph (c) add

“and

(d) any provision of a scheme to the extent that it deals with commutation of the whole or part of a pension..”

(2) Sub-paragraph (1) shall be deemed to have come into operation on 1st December 1986 (the date on which the repeal of Article 41(2) and (3) of the Pensions Order took effect).

5.—(1) In Article 45 (which relates to the premium on termination of contracted-out employment), after paragraph (1A) insert the following paragraphs—

“(1B) Where the amount of a person’s earnings for any period (whether before or after the making of this Order) is relevant for any purpose of paragraph (1) or (1A) and the Department is satisfied that records of those earnings have not been maintained or retained or are otherwise unobtainable, the Department may for that purpose—

(a) compute, in such manner as it thinks fit, an amount which shall be regarded as the amount of those earnings; or

(b) take their amount to be such sum as it may specify in the particular case.

(1C) Where—

(a) the Department subsequently ascertains the amount of those earnings; and

(b) it appears to the Department that the amount of the premium would have been different if it had not made the calculation on the basis described in paragraph (1A),

the Department shall refund to the prescribed person the amount by which it would have been less or, as the case may be, the prescribed person shall pay to the Department the amount by which it would have been more.”.

(2) At the beginning of paragraph (2A) (meaning of “linked qualifying service”) insert “Subject to paragraphs (2B) and (2C)” and after that paragraph insert the following paragraphs—

“(2B) Only so much of the earlier period as is a period of service in respect of which there accrued under the first scheme any of the rights transferred to the second scheme shall be linked qualifying service in relation to the later period of service.

(2C) As respects any case where the rules of a scheme provide—

(a) that an earner is not entitled to become a member unless he satisfies specified conditions; but

(b) that, if he becomes a member, rights are to accrue to him in respect of periods of service before he satisfied any such conditions,

regulations may provide for any such periods to be treated, in such cases and to such extent as may be prescribed, as linked qualifying service with later periods of service.”.

(3) In Article 2(2) (interpretation), in the definition of “linked qualifying service” for “Article 45(2A)” substitute “Article 45(2A) to (2C)”.

6.—(1) In Article 46 (premium on termination of contracted-out scheme), for paragraph (5A) (earnings deemed to equal upper earnings limit where their amount is not readily ascertainable) substitute the following paragraph—

“(5A) Where, in calculating the costs referred to in paragraph (5), the Department cannot readily ascertain the amount of any earnings in a tax week, the Department may for the purpose of calculating those costs—

(a) compute, in such manner as it thinks fit, an amount which shall be regarded as the amount of those earnings; or

(b) take their amount to be such sum as it may specify in the particular case,

and it may certify the costs accordingly.”.

(2) In paragraph (5B) (refund where true amount of earnings ascertained)—

(a) in sub-paragraph (b) for “less” substitute “different”; and

(b) at the end of that paragraph add “or, as the case may be, the prescribed person shall pay to the Department the amount by which it would have been more.”.

7.  In Article 46A(1) (circumstances in which transfer premiums may be paid), for sub-paragraph (c) substitute the following sub-paragraph—

“(c) the scheme to which his accrued rights are transferred is neither a contracted-out scheme nor one which was formerly contracted-out and in respect of which the Occupational Pensions Board have duties under Article 50 at the time of the transfer; and”.

8.  In Article 47(3) (election as to method of computation where guaranteed minimum pension excluded from full revaluation)—

(a) the words “unless the person liable for the premium elects in the prescribed manner that this paragraph shall not apply” shall cease to have effect; and

(b) after sub-paragraph (b) add—

“but this paragraph shall not apply in any case where its application would result in the amount of the premium being greater than it would have been apart from this paragraph.”.

9.  In Article 53C(1) (discharge of scheme’s liability to provide benefits, etc.) sub-paragraph (b) shall have effect, and be deemed always to have had effect, with the words following head (i) set out as follows—

“(ii) short service benefit, or an alternative to short service benefit,

for or in respect of that person being appropriately secured; and”.

10.  Article 54 (which provides for regulations freeing earners from liability to join pension schemes of certain kinds and which is superseded by Article 17 of the 1986 Order) shall cease to have effect.

11.  In Article 60 (modification of occupational pension schemes by order of the Occupational Pensions Board), after paragraph (10) add the following paragraph—

“(10A) Regulations may provide that in prescribed circumstances paragraph (7) shall not apply or shall apply with prescribed modifications.”.

12.  In Schedule 3 (preservation of benefit under occupational schemes)—

(a) in paragraph 2, for “his wife or widow” substitute “the member’s wife or husband, widow or widower”;

(b) in paragraph 15(2) and (3)(a), for “member’s widow or a dependant of his” substitute “widow or widower or a dependant of the member”;

(c) in paragraphs 15(4) and 16(3)(b), for “widow” substitute “widow or widower”; and

(d) in paragraph 17(1), for “his widow or a dependant” substitute “a member’s widow or widower or dependant”.

The Social Security (Miscellaneous Provisions) (Northern Ireland) Order 1977 (NI 11)

13.  In Article 17 (election as to method of computation where guaranteed minimum pension preserved under approved arrangements), in paragraph (1)—

(a) the words “unless the prescribed person otherwise elects in the prescribed manner” shall cease to have effect; and

(b) after sub-paragraph (b) add—

“but this paragraph shall not apply in any case where the application of those provisions would result in the amount of the guaranteed minimum being greater than it would have been apart from this paragraph”.

The 1986 Order

14.  In Article 11(4) (which specifies provisions of the Pensions Order relating to guaranteed minimum pensions which are to be construed as if “widow” included “widower”)—

(a) in sub-paragraph (f), after “Article 43B(1)(c)” insert “and (i)”; and

(b) after sub-paragraph (h) insert—

“(i) paragraphs 8(b) and 13(6) of Schedule 1A,”.

15.  After Article 18 insert the following Article—

“Reciprocity with other countries

18A.— (1) Section 134 of the principal Act (orders providing for reciprocity) shall apply as if any reference to that Act included a reference to this Part.

(2) An order made by virtue of paragraph (1) may, in particular, provide for the Department to make payments for any period beginning on or after 6th April 1987 and may make provision with respect to any matters relating to payments so made.”.

16.—(1) In Schedule 1 (appropriate personal pension schemes), in sub-paragraphs (4) and (5) of paragraph 7 (calculation and verification of value of protected rights such as are mentioned in sub-paragraph (2) of that paragraph) omit “such as are mentioned in sub-paragraph (2)”.

(2) In head (a) of sub-paragraph (4) of that paragraph, after “shall” insert “in the case of any such protected rights as are mentioned in sub-paragraph (2)”.

17.—(1) For paragraph 8 of that Schedule substitute the following paragraph—

“8.   The rules shall provide for effect to be given to the protected rights of a member—

(a) in any case where sub-paragraph (2) of paragraph 9 so requires, by the purchase of such an annuity as is mentioned in that sub-paragraph; and

(b) in any other case, in such of the ways permitted by that paragraph as the rules may specify,

and they shall not provide for any part of a member’s protected rights to be discharged otherwise than in accordance with that paragraph.”.

(2) In sub-paragraph (2) of paragraph 9 of that Schedule (cases in which protected rights may be given effect by purchase of annuity)—

(a) at the beginning insert “Subject to sub-paragraphs (4) and (6),”; and

(b) for “effect may be given to protected rights” substitute “then, except to the extent that effect is given to protected rights in accordance with sub-paragraph (3), effect shall be given to those rights”.

(3) After sub-paragraph (7) of that paragraph (half rate pension or annuity for earner’s widow or widower, etc.) insert the following sub-paragraph—

“(7A) As respects the period of 5 years beginning with the commencement of the pension or annuity referred to in sub-paragraph (7), that sub-paragraph shall have effect in relation to that pension or annuity as if the words “at least” were inserted immediately before the words “one-half” in head (b)(i).”.

The Occupational Pension Schemes (Contracting-out) Regulations(Northern Ireland) 1985 (S.R. 1985 No. 259)

18.—(1) In regulation 21 (additional requirement alternative to limited revaluation premium), in paragraphs (3A) and (7A) (which were inserted by regulation 2 of the Contracting-out (Miscellaneous Amendments) Regulations (Northern Ireland) 1988(1) and which provide for the rate of increase to be 7½ per cent. in certain cases) for “and in relation to another scheme,” substitute “(and whether in relation to the same or another scheme)”.

(2) The amendment by sub-paragraph (1) of a provision contained in regulations shall not be taken to have prejudiced any power to make further regulations revoking or amending that provision.

(3) This paragraph shall be deemed to have come into operation on 6th April 1988.

(1)

S.R. 1988 No. 108