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

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(1) shall be amended in accordance with paragraphs (2) to (8).

(2) In regulation 1(2) (interpretation)(2) 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(3);”.

(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(4);

(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)(5) (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(6) (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)(7) (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.”.

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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