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The Local Government Pension Scheme Regulations (Northern Ireland) 2014

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Contracting-out requirements affecting transfers out

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109.—(1) There shall be deducted from the transfer value payment to be made in respect of any person to a contracted-in defined benefit registered pension scheme—

(a)the amount of any contributions equivalent premium payable pursuant to section 51 (payment of state scheme premiums on terminations of certified status) of the 1993 Act; or

(b)an amount sufficient to meet the liability in respect of the person’s contracted-out rights.

(2) Where the amount mentioned in paragraph (1)(a) is deducted, the Committee shall use that amount to pay the premium.

(3) Where the amount mentioned in paragraph (1)(b) is deducted, the Committee may use the amount in preserving the liability mentioned in that paragraph in the pension fund unless the member wishes a transfer value payment in respect of it to be paid to the trustees or managers of a contracted-out defined benefit or contracted-in defined contribution registered pension scheme.

(4) Contracted-out rights, in relation to a member, are—

(a)the member’s, and the member’s surviving spouse’s, civil partner’s or nominated co-habiting partner’s rights to guaranteed minimum pensions; and

(b)the member’s section 5(2B) rights as defined in regulation 1(2) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996.

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Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Rule and provides information about its policy objective and policy implications. They aim to make the Statutory Rule accessible to readers who are not legally qualified and accompany any Northern Ireland Statutory Rule or Draft Northern Ireland Statutory Rule laid before the UK Parliament during the suspension of the Northern Ireland Assembly.

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