Pension Schemes (Northern Ireland) Act 1993

Changes to legislation:

Pension Schemes (Northern Ireland) Act 1993, Section 80 is up to date with all changes known to be in force on or before 15 July 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

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Changes and effects yet to be applied to Section 80:

specified provision(s) amendment to savings in S.R. 2016/106 for effects of 2015 c. 5 (N.I.), Sch. 13 by S.R. 2016/162 art. 5
specified provision(s) savings for effects of 2015 c. 5 (N.I.), Sch. 13 by S.R. 2016/106 art. 2

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Act power to modify conferred by S.I. 2005/255 (N.I.) art. 281(3)(a)(i)

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

s. 21A inserted by 2008 c. 1 (N.I.) Sch. 4 para. 9 (This amendment not applied to legislation.gov.uk. Sch. 4 para. 9 together with the inserted s. 21A were repealed (6.4.2012) by 2008 c. 13 (N.I.), ss. 85(2)(b), 118(1), Sch. 10 Pt. 3 (with s. 73); S.R. 2012/119, art. 2(a)(c))
s. 21A repealed by 2008 c. 13 (N.I.) s. 85(2)(b) Sch. 10 Pt. 3 (This amendment not applied to legislation.gov.uk. This amendment not applied to legislation.gov.uk. Sch. 4 para. 9 together with the inserted s. 21A were repealed (6.4.2012) by 2008 c. 13 (N.I.), ss. 85(2)(b), 118(1), Sch. 10 Pt. 3 (with s. 73); S.R. 2012/119, art. 2(a)(c))
s. 23A inserted by 2008 c. 1 (N.I.) Sch. 4 para. 10 (This amendment not applied to legislation.gov.uk. Sch. 4 para. 10 together with the inserted s. 23A were repealed (6.4.2012) by 2008 c. 13 (N.I.), ss. 85(2)(b), 118(1), Sch. 10 Pt. 3 (with s. 73); S.R. 2012/119, art. 2(a)(c))
s. 23A repealed by 2008 c. 13 (N.I.) s. 85(2)(b) Sch. 10 Pt. 3 (This amendment not applied to legislation.gov.uk. Sch. 4 para. 10 together with the inserted s. 23A were repealed (6.4.2012) by 2008 c. 13 (N.I.), ss. 85(2)(b), 118(1), Sch. 10 Pt. 3 (with s. 73); S.R. 2012/119, art. 2(a)(c))
s. 42(1A) (1B) inserted by 2008 c. 13 (N.I.) s. 82(2)
s. 42(1A) words substituted by 2012 c. 3 (N.I.) Sch. 3 para. 7
s. 42A inserted by 2008 c. 13 (N.I.) s. 82(3)
s. 42A repealed by 2015 c. 5 (N.I.) Sch. 12 para. 79
s. 42A heading words substituted by 2012 c. 3 (N.I.) Sch. 3 para. 8(b)
s. 42A(1)(c) words substituted by 2012 c. 3 (N.I.) Sch. 3 para. 8(a)
s. 67(1A) inserted by 2016 c. 1 (N.I.) s. 39(2)(b)
s. 78A inserted by 2016 c. 1 (N.I.) Sch. 1 para. 2
s. 79(1A)-(1AC) substituted for s. 79(1A) by 2016 c. 1 (N.I.) Sch. 1 para. 3
s. 80-80F substituted for s. 80 by 2016 c. 1 (N.I.) Sch. 1 para. 4
s. 81A inserted by 2016 c. 1 (N.I.) Sch. 1 para. 5
s. 82A 82B inserted by 2016 c. 1 (N.I.) Sch. 1 para. 6
s. 90(2A)(a)(viii) inserted by 2015 c. 5 (N.I.) Sch. 17 para. 19(2)(a) (This amendment not applied to legislation.gov.uk. S. 90 already substituted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87))
s. 90(2A)(a)(ix) inserted by 2015 c. 5 (N.I.) Sch. 18 para. 9(2)(a) (This amendment not applied to legislation.gov.uk. S. 90 already substituted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87))
s. 90(2A)(b)(vi) inserted by 2015 c. 5 (N.I.) Sch. 17 para. 19(2)(b) (This amendment not applied to legislation.gov.uk. S. 90 already substituted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87))
s. 90(2A)(b)(vii) inserted by 2015 c. 5 (N.I.) Sch. 18 para. 9(2)(b) (This amendment not applied to legislation.gov.uk. S. 90 already substituted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87))
s. 97AI(7)(a)(x) inserted by 2015 c. 5 (N.I.) Sch. 17 para. 19(4)(a)
s. 97AI(7)(b)(viii) inserted by 2015 c. 5 (N.I.) Sch. 17 para. 19(4)(b)
s. 109(4)(4A) substituted for s. 109(4) by 2016 c. 1 (N.I.) s. 38(5)
s. 141(4)(5) added by S.I. 2005/255 (N.I.) art. 251
s. 142(6A) inserted by S.I. 2005/255 (N.I.) Sch. 10 para. 19(b)
s. 170A inserted by 2008 c. 13 (N.I.) Sch. 9 para. 1
s. 172(2)(b)(ii)-(ix) substituted for s. 172(2)(b)(ii) by 2008 c. 1 (N.I.) Sch. 4 para. 33 (This amendment not applied to legislation.gov.uk. Sch. 4 para. 33 repealed immediately before the "abolition date" (see 2008 c. 1 (N.I.), s. 13) by S.R. 2012/124, art. 7(2))
Sch. 2 para. A1 inserted by 2016 c. 1 (N.I.) Sch. 1 para. 8
Sch. 2 para. 3A omitted by 2016 c. 1 (N.I.) Sch. 1 para. 9

80 Basis of revaluation.N.I.

(1)[F1Subject to subsections (2) to (3B),] in the case of such benefits as are mentioned in section 79(1)(a), any pension or other retirement benefit payable under the scheme in question to the member and any pension or other benefit payable under it to any other person in respect of him, is to be revalued by the final salary method.

(2)If—

(a)any such benefit is an average salary benefit or flat rate benefit; and

(b)it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue the benefit by the average salary method or, as the case may be, the flat rate method,

then the benefit shall be revalued using that method.

(3)If any benefit such as is mentioned in paragraph (a) of section 79(1) is a money purchase benefit [F2other than a collective money purchase benefit], and in the case of such benefit as is mentioned in paragraph (b) of that section, the benefit shall be revalued using the money purchase method.

[F3(3A)If—

(a)any such benefit as is mentioned in section 79(1)(a) is a cash balance benefit in respect of which the available sum is not calculated by reference to final salary;

(b)the benefit is attributable to periods of pensionable service falling on or after the day on which section 27 of the Pensions Act (Northern Ireland) 2012 (definition of money purchase benefits) comes into operation; and

(c)it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue the benefit by the cash balance method,

then the benefit shall be revalued using that method.

[F4(3AA)If any such benefit as is mentioned in section 79(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.]

(3B)Where a cash balance benefit in respect of which the available sum is not calculated by reference to final salary—

(a)is attributable to periods of pensionable service falling partly before and partly on or after the day on which section 27 of the Pensions Act (Northern Ireland) 2012 comes into operation; and

(b)it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue so much of the benefit as is attributable to the member’s pensionable service falling on or after that day by the cash balance method,

then so much of the benefit as is attributable to the member’s pensionable service falling on or after that day shall be revalued using that method.]

(4)In this section—

“average salary benefit” means benefit the rate or amount of which is calculated by reference to the average salary of a member over the period of service on which the benefit is based;
[F5“cash balance benefit” has the meaning given by regulation 2 of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014;
“final salary”, in relation to a member to or in respect of whom benefits under a pension scheme are payable, means the member’s pensionable earnings, or highest, average or representative pensionable earnings, in a specified period ending at, or defined by reference to, the time when the member’s pensionable service in relation to that scheme ends;]
“flat rate benefit” means any benefit the rate or amount of which is calculated by reference solely to the member’s length of service;
“average salary method”, [F6“cash balance method”,] “final salary method”, “flat rate method” and “money purchase method” have the meanings given in Schedule 2.
[F7“pensionable earnings”, in relation to a member of a pension scheme, means earnings by reference to which benefits under the scheme are calculated.]

(5)The fact that a scheme provides for the amount of the pension or other benefit for a member or for any other person in respect of him to be increased during the pre-pension period—

(a)by the percentages specified during that period under section 132 of the M1Social Security Administration (Northern Ireland) Act 1992; F8. . . [F9or

(b)under any arrangement which maintains the value of the pension or other benefit by reference to the rise in [F10the general level of prices] during that period,]

F8(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

does not in itself result in conflict with this section, if the increase falls to be determined by reference to an amount from which the guaranteed minimum for a member or a member’s [F11widow, widower [F12, surviving same sex spouse] or surviving civil partner] has not been deducted.

F13(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Words in s. 80(1) substituted (24.7.2014) by The Pensions (2012 Act) (Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/213), regs. 1, 2(2)(a)

F2Words in s. 80(3) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 6 para. 2(2); S.R. 2022/197, art. 3(a)

F3S. 80(3A)-(3B) inserted (24.7.2014) by The Pensions (2012 Act) (Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/213), regs. 1, 2(2)(b)

F4S. 80(3AA) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 6 para. 2(3); S.R. 2022/197, art. 3(a)

F5Words in s. 80(4) inserted (24.7.2014) by The Pensions (2012 Act) (Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/213), regs. 1, 2(2)(c)(i)

F6Words in s. 80(4) inserted (24.7.2014) by The Pensions (2012 Act) (Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/213), regs. 1, 2(2)(c)(ii)

F7Words in s. 80(4) added (24.7.2014) by The Pensions (2012 Act) (Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/213), regs. 1, 2(2)(c)(iii)

F8S. 80(5)(b) and the word “or” immediately preceding repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 52, Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F9S. 80(5)(b) and word inserted (17.2.2005) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(3), 258(2) (with art. 285(5))

F10Words in s. 80(5)(b) substituted (7.6.2012) by Pensions Act (Northern Ireland) 2012 (c. 3), ss. 20(2), 34(3); S.R. 2012/233, art. 2(2)(e)