The Pension Schemes Act 2021 (Commencement No. 7 and Transitional Provisions) Order (Northern Ireland) 2024

EXPLANATORY NOTE

(This note is not part of the Order)

This Order brings into operation section 129(a) of, and Part 1 of Schedule 11 to, the Pension Schemes Act 2021 (“the 2021 Act”), in so far as they are not already in operation, on 6th April 2024. It also contains transitional provisions.

Part 1 of Schedule 11 to the 2021 Act (funding of defined benefit schemes)—

• inserts Articles 200A (funding and investment strategy) and 200B (statement of strategy) into the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”). Article 200A requires defined benefit pension scheme trustees or managers to have a funding and investment strategy for ensuring that pensions and other scheme benefits can be provided over the long term. The strategy must specify the funding level and the investments that trustees or managers intend the scheme to have at a relevant date or dates. Article 200B requires trustees or managers to prepare a statement of strategy that sets out their funding and investment strategy. Trustees or managers must include their assessment of how successfully the strategy is being implemented and the key risks faced by the scheme along with any mitigations. The statement of strategy must be signed by the chair of the trustee board and where a scheme does not have a chair, they must appoint one;

• amends Articles 201 (the statutory funding objective), 203 (actuarial valuations and reports), 205 (recovery plan), 208 (matters requiring agreement of employer) and 210 (powers of the Pensions Regulator) of the 2005 Order. The amendment to Article 201 inserts paragraph (2A) which requires the scheme’s technical provisions to be calculated in a way that is consistent with the scheme’s funding and investment strategy, as set out in the scheme’s statement of strategy. The amendment to Article 203 inserts paragraph (7A) requiring trustees or managers to send a copy of the actuarial valuation to the Pensions Regulator, together with such other information as may be prescribed. The amendment to Article 205 inserts paragraph (3A) which provides regulation making powers to prescribe the matters that should be considered or the principles to be followed in determining whether a recovery plan is appropriate having regard to the nature and circumstances of the scheme. The amendment to Article 208 adds the funding and investment strategy to the matters requiring the agreement of the employer. The amendments to Article 210 extend the Pension Regulator’s powers to oversee the new funding and investment strategy;

• makes minor and consequential amendments to Articles 55 (registrable information), 75 (offences of providing false or misleading information) and 288 (Assembly etc. control of orders and regulations) of the 2005 Order.

Article 3 of this Order is a transitional provision in relation to the commencement of paragraph 3 of Schedule 11 to the 2021 Act. It provides that Article 201 of the 2005 Order remains in effect in relation to a particular pension scheme, without the inserted paragraph (2A), until that scheme is required to have a funding and investment strategy.

Article 4 of this Order is a transitional provision in relation to the commencement of paragraph 4 of Schedule 11 to the 2021 Act. It provides that Article 203 of the 2005 Order remains in effect in relation to a particular pension scheme, without the inserted paragraph (7A), until that scheme obtains an actuarial valuation with an effective date on or after 22nd September 2024.