The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1996

Statutory Rules of Northern Ireland

1996 No. 95

PENSIONS

The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1996

Made

14th March 1996

Coming into operation

6th April 1996

The Department of Health and Social Services for Northern Ireland, in exercise of the powers conferred on it by sections 24(1A), (4) and (5), 24A(3) and (5), 25(4), 40, 44(2), 109 and 151 of the Pension Schemes (Northern Ireland) Act 1993(1) and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1996 and shall come into operation on 6th April 1996.

(2) The Interpretation Act (Northern Ireland) 1954(2) shall apply to these Regulations as it applies to a Measure of the Assembly.

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations

2.  In regulation 40 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1985(3) (notifications to the Department) after sub-paragraph (d) of paragraph (4A)(4) there shall be added the following sub-paragraph—

“(e) where effect has been given by means of an appropriate policy of insurance under section 28A(1)(a) or (b)(5) (discharge of protected rights on winding up: insurance policies), to identify the member in respect of whom, and the insurance company with which, that policy was taken out or entered into.”.

Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations

3.—(1) The Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987(6) shall be amended in accordance with paragraphs (2) to (4).

(2) In regulation 1(2) (interpretation) after the definition of “member” there shall be inserted the following definition—

• ““pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995;”.

(3) In regulation 5(4)(a) (information to be made available to individuals) for “pensionable age” there shall be substituted “the agreed age at which he is entitled to receive benefits under the scheme or pensionable age, whichever is the earlier”.

(4) In paragraph 7 of Schedule 1 after “annuities,” there shall be inserted “discharged by the making of payments under an interim arrangement”.

Amendment of the Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations

4.—(1) The Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations (Northern Ireland) 1987(7) shall be amended in accordance with paragraphs (2) and (3).

(2) In regulation 3(1)(8) (guaranteed minimum pension to which earner’s widow or widower is treated as entitled after minimum contributions have been paid) for “reaching pensionable age” in each place where it occurs there shall be substituted “effect is given to his protected rights under section 24(1A), (2)(a), (3) or (4)(9),”.

(3) In regulation 5(1)(10) (guaranteed minimum pension to which earner’s widow or widower is treated as entitled after minimum payments have been made) for “reaching pensionable age” in each place where it occurs there shall be substituted “effect is given to protected rights (including rights treated as protected rights as a consequence of regulation 6(1)(c)(i) of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 1996(11) under section 24(2)(a), (3) or (4) or as a consequence of regulations made under Article 142 of the Pensions (Northern Ireland) Order 1995 (extension of interim arrangements for giving effect to protected rights)”.

Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations

5.—(1) The Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1987(12) shall be amended in accordance with paragraphs (2) to (8).

(2) In regulation 1(2) (interpretation)(13) after the definition of “pensionable age” there shall be inserted the following definition—

““the Protected Rights Regulations” means the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1987(14);”.

(3) After regulation 5 (circumstances in which and periods for which pension or annuity is to be paid to widow or widower after being paid to member) there shall be inserted—

“Conditions applying to payments under an interim arrangement

5A.   For the purposes of section 24(1A) (in the case of a personal pension scheme effect may be given to protected rights by the making of payments under an interim arrangement which among other things satisfy such conditions as may be prescribed) the prescribed conditions are that—

(a) payments are to be made to the member throughout the interim period at monthly intervals unless, subject to section 24A(1) (payments to be made at intervals not exceeding twelve months), the member elects for those payments to be made less frequently than by monthly payments;

(b) the interim arrangement provides for the member to be able to elect to terminate the interim arrangement at any time during the interim period; and

(c) the interim arrangement provides for, in the event of the death of an unmarried member or, where section 24A(2) would apply, the death of the widow or widower, the balance of the value of the protected rights to be paid to any person in accordance with directions given by that member, widow or widower in writing, or where no such directions are given, to his or her estate.

Requirements for interim arrangements

5B.— (1) For the purposes of section 24A(3)(b) (aggregate amount of payments made to a person under an interim arrangement in each successive period of twelve months must not be less than the prescribed percentage of the annual amount of the annuity which would have been purchasable by him on the relevant reference date) the prescribed percentage is 35 per cent.

(2) For the purposes of section 24A(5)(a) (the annual amount of the annuity which would have been purchasable by a person on any date shall be calculated in the prescribed manner) the prescribed manner is—

(a) in the case of payments to be made to a member in respect of protected rights which derive from minimum contributions and other amounts payable to the scheme in respect of any tax year up to and including the tax year 1996-1997, by reference to the current published table prepared by the Government Actuary in accordance with regulation 5B(3)(a) of the Protected Rights Regulations(15);

(b) in the case of payments to be made to a widow or widower of a member in respect of protected rights which derive from minimum contributions and other amounts payable to the scheme in respect of any tax year up to and including the tax year 1996-1997, by reference to the current published table prepared by the Government Actuary in accordance with regulation 5B(3)(b) of the Protected Rights Regulations;

(c) in the case of payments to be made—

(i) to a married member, or

(ii) on the first day of a succeeding period of 3 years beginning with and including the starting date to a member who marries during the interim period,

in respect of protected rights which derive from minimum contributions and other amounts payable to the scheme in respect of a tax year after the tax year 1996-1997, by reference to the current published table prepared by the Government Actuary in accordance with regulation 5B(3)(c) of the Protected Rights Regulations;

(d) in the case of payments to be made—

(i) to an unmarried member,

(ii) to a widow or widower of a member,

(iii) on the first day of a succeeding period of 3 years beginning with the starting date to a member who becomes a widow or widower and remains so during the interim period, or

(iv) on the first day of a succeeding period of 3 years beginning with the starting date to a member whose marriage is dissolved and remains unmarried during the interim period,

in respect of protected rights which derive from minimum contributions and other amounts payable to the scheme in respect of a tax year after the tax year 1996-1997, by reference to the current published table prepared by the Government Actuary in accordance with regulation 5B(3)(d) of the Protected Rights Regulations.”.

(4) In regulation 6(1) and (2)(16) (giving effect to protected rights in money purchase contracted-out scheme by providing lump sum) the words “as it applies to a money purchase contracted-out scheme” shall be omitted.

(5) In regulation 8(17) (choice of insurance company by annuitant) —

(a) in paragraph (a) for “pensionable age”, in the first place where it occurs, there shall be substituted—

“, in the case of a money purchase contracted-out scheme, the normal pension age if that age is not less than 60 years or, in the case of a personal pension scheme, the agreed age at which he is entitled to receive benefits under the scheme or pensionable age, whichever is the earlier”;

(b) in paragraph (a) for “pensionable age”, in the second place where it occurs, there shall be substituted “that age”; and

(c) in paragraph (b) for “pensionable age” there shall be substituted—

“, in the case of a money purchase contracted-out scheme, the normal pension age if that age is not less than 60 years or, in the case of a personal pension scheme, the agreed age at which he is entitled to receive benefits under the scheme or pensionable age, whichever is the earlier,”.

(6) In regulation 10(2) and (3)(18) (death of scheme member before effect given to his protected rights) at the beginning there shall be inserted “Subject to regulation 10A”.

(7) After regulation 10 there shall be inserted the following regulation—

“Death of a scheme member before effect is given to protected rights: interim arrangements for widows and widowers

10A.— (1) Where the member has died without effect being given to his protected rights and that member is survived by—

(a) a qualifying widow or widower; or

(b) a non-qualifying widow or widower who, in accordance with the member’s written directions is nominated to receive the value of that member’s protected rights,

effect shall be given to those rights if the widow or widower so elects by the making of payments, as soon as practicable, under an interim arrangement such as is described in paragraph (2).

(2) The interim arrangement referred to in paragraph (1) is one which—

(a) complies with—

(i) the requirements of subsections (3) and (5) of section 24A and regulations made under those subsections, and

(ii) the conditions referred to in regulation 5A as if the widow or widower were the member;

(b) at the end of the interim period, enables effect to be given to the deceased’s protected rights in such ways as are permitted by the provisions of section 24 as the rules of the scheme may specify.

(3) In this regulation “qualifying widow or widower” has the same meaning as in regulation 10.”.

(8) In regulation 13(1) (personal pension schemes — notifications to the Department)—

(a) in sub-paragraph (b) after “annuity”, in both places where it occurs, there shall be inserted “, payment under an interim arrangement”;

(b) after sub-paragraph (d) there shall be added—

“(e) where effect has been given to them by means of a payment under an interim arrangement, to identify the appropriate personal pension scheme which has entered into the interim arrangement and the starting date.”.

Amendment of the Personal Pension Schemes (Appropriate Schemes) Regulations

6.  In regulation 12 of the Personal Pension Schemes (Appropriate Schemes) Regulations (Northern Ireland) 1988(19) (notice to the Department by an earner and the trustees or managers) for paragraphs (2) and (2A)(20) there shall be substituted the following paragraphs—

“(2) Subject to paragraph (3), the date specified in a notice under section 40(1) as the date from which the scheme is to be the earner’s chosen scheme shall, subject to paragraph (2A), be 6th April in that or the next tax year.

(2A) Where notice is given by 17th May in a tax year it may specify 6th April in the preceding tax year.”.

Revocation

7.  Regulation 4 of the Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1989(21) is hereby revoked.

Sealed with the Official Seal of the Department of Health and Social Services for Northern Ireland on

L.S.

W. G. Purdy

Assistant Secretary

14th March 1996.

Explanatory Note

(This note is not part of the Regulations.)

These Regulations contain regulations which are consequential upon Articles 137(2), 139 to 141 and 143 of the Pensions (Northern Ireland) Order 1995 (“the Order”). Articles 137(2), 139 to 141 and 143 of the Order came into operation for the purpose of authorising the making of regulations on 14th March 1996, and for all other purposes on 6th April 1996 by virtue of the Pensions (1995 Order) (Commencement No. 2) Order (Northern Ireland) 1996 (S.R. 1996 No. 91 (C. 4)).

Regulation 2 amends the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1985 so as to require trustees of a scheme who are discharging a member’s protected rights on winding up of the scheme through insurance policies to notify the Department of the identity of the member and the insurance company concerned.

Regulation 3 makes miscellaneous amendments to the Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987 as a consequence of provisions providing for equal treatment and the introduction of the interim arrangements.

Regulation 4 amends the Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations (Northern Ireland) 1987 to provide that where minimum contributions or minimum payments have been made in respect of an earner who dies, the treatment of his or her widow or widower as being entitled to a guaranteed minimum pension and the rate of such pension depends on whether effect has been given to protected rights at the date of death.

Regulation 5 amends the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1987. Paragraphs (3), (6), (7) and (8) make amendments to provide for cases where effect may be given to protected rights, under a personal pension scheme, by the making of payments under an interim arrangement if prescribed conditions are satisfied. Paragraph (4) amends regulation 6 to enable effect to be given to protected rights by the provision of a lump sum benefit in the case of a personal pension scheme. Paragraphs (2) and (5) make consequential amendments.

Regulation 6 amends the Personal Pension Schemes (Appropriate Schemes) Regulations (Northern Ireland) 1988 with regard to the giving of notices of an earner’s chosen scheme to the Department under section 40 of the Pension Schemes (Northern Ireland) Act 1993.

Regulation 7 makes a consequential revocation.

(1)

1993 c. 49; section 24(1A) was inserted by Article 139(3) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)); section 24(4) was amended by Article 139(5) of, and paragraph 27(b) of Schedule 3 to, that Order; section 24(5) was amended by Article 139(6) of that Order; section 24A was inserted by Article 140 of that Order; section 25(4) was amended by Article 141(4) of that Order; section 44(2) was amended by paragraph 56 of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 (S.I. 1994/1898 (N.I. 12)) and Article 137(2) of the Pensions (Northern Ireland) Order 1995, and section 151 was amended by paragraph 55 of Schedule 3 to that Order

(2)

1954 c. 33 (N.I.)

(3)

S.R. 1985 No. 259; relevant amending regulations are S.R. 1987 No. 295, S.R. 1988 No. 108 and S.R. 1994 No. 300

(4)

Paragraph (4A) was inserted by S.R. 1987 No. 295 and amended by S.R. 1988 No. 108

(5)

Section 28A was inserted by Article 143(1) of the Pensions (Northern Ireland) Order 1995

(6)

S.R. 1987 No. 288; relevant amending regulations are S.R. 1988 No. 107, S.R. 1992 No. 304 and S.R. 1994 No. 300

(7)

S.R. 1987 No. 291, amended by S.R. 1994 No. 300

(8)

Regulation 3(1) was amended by S.R. 1994 No. 300

(9)

Section 24(3) was amended by Article 139(4) of the Pensions (Northern Ireland) Order 1995

(10)

Regulation 5(1) was amended by S.R. 1994 No. 300

(11)

S.R. 1996 No. 94

(12)

S.R. 1987 No. 295; relevant amending regulations are S.R. 1990 No. 203, S.R. 1992 No. 304 and S.R. 1994 No. 300

(13)

Regulation 1(2) was amended by S.R. 1994 No. 300

(14)

S.I. 1987/1117; relevant amending regulations are S.I. 1994/1062 and S.I. 1996/776

(15)

Regulation 5B was inserted by S.I. 1996/776

(16)

Regulation 6(1) and (2) was amended by S.R. 1992 No. 304 and S.R. 1994 No. 300

(17)

Regulation 8 was amended by S.R. 1994 No. 300

(18)

Regulation 10(2) and (3) was amended by S.R. 1994 No. 300; regulation 10(2) was also amended by S.R. 1990 No. 203

(19)

S.R. 1988 No. 34; relevant amending regulations are S.R. 1989 No. 105 and S.R. 1994 No. 300

(20)

Paragraph (2) was amended by, and paragraph (2A) was inserted by, S.R. 1989 No. 105

(21)

S.R. 1989 No. 105, to which there are amendements not relevant to these regulations