The Pension Sharing (Safeguarded Rights) Regulations (Northern Ireland) 2000

The pension and annuity requirements — money purchase schemes

7.—(1) For the purposes of regulation 6(4) (ways of giving effect to safeguarded rights—money purchase schemes) the pension requirements are those specified in paragraph (2), and the annuity requirements are those specified in paragraphs (3) and (5).

(2) A pension complies with the pension requirements if in the case of a money purchase contracted-out scheme or an appropriate scheme it commences on a date not earlier than the member’s 60th birthday, and not later than his 65th birthday, or on such later date as has been agreed by him, and continues until the date of his death.

(3) An annuity complies with the annuity requirements if—

(a) it commences on a date not earlier than the member’s 60th birthday, and not later than his 65th birthday, or on such later date as has been agreed by him, and continues until the date of his death, and

(b) it is provided by an insurance company which—

(i) satisfies the conditions specified in regulation 8 (insurance companies that may provide safeguarded rights by way of annuities), and

(ii) subject to paragraphs (5) and (6), has been chosen by the member.

(4) Where the member has elected under regulation 6(2) to receive payments under an interim arrangement—

(a) in the case of a money purchase contracted-out scheme, a pension or annuity, or

(b) in the case of an appropriate scheme, an annuity,

must commence on the termination date and must continue until the date of the member’s death.

(5) A member is only to be taken to have chosen an insurance company if he gives notice of his choice to the trustees or managers of the scheme—

(a) within a period of 5 months (or such longer period as the rules of the scheme may allow) beginning on the date which is 6 months earlier than that on which he will attain the age, referred to in the following provisions of this sub-paragraph, as the case may be, where the trustees or managers of the scheme know of no reason to suppose that the pension or annuity will not commence on the date on which the member will attain—

(i) in the case of a money purchase contracted-out scheme the normal benefit age if that age is not less than 60 years, or

(ii) in the case of an appropriate scheme, the agreed age at which he is entitled to receive benefits under the scheme if that age is not less than 60 years, and

(b) in any other case—

(i) if the date of the agreement in respect of when the pension or annuity is to commence (“the date of agreement”) is more than one month before the agreed date for commencement of payment (“the agreed date”), within a period beginning on the date of agreement and ending one month before the agreed date, and

(ii) on the date of agreement if that date is not more than one month before the agreed date,

or such longer period as the rules of the scheme may allow.

(6) If a member fails to give notice of his choice of insurance company in accordance with paragraph (5), the trustees or managers of the scheme may choose the insurance company instead.

(7) In this regulation “the termination date” has the same meaning as in regulation 6(10).