Modifications etc. (not altering text)
C1Pt. 3: power to modify conferred (1.6.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 146(1); S.R. 1996/91, art. 2(f); S.R. 1997/192, art. 2
Pt. 3: power to transfer functions conferred (1.4.1999) by 1999 c. 2, s. 23(1)(2)(6); S.I. 1999/527, art. 2(b), Sch. 2
Textual Amendments
F1Ss. 8A-8D and cross-heading inserted (6.4.1996 for certain purposes otherwise 6.4.1997 ) by S.I. 1995/3213 (N.I. 22), art. 133(5); S.R. 1996/91, arts. 2(d)(h), Sch. Pt. IV
(1)This section applies for the purposes of section 8A.
(2)A reference scheme is an occupational pension scheme which—
(a)complies with each of subsections (3) and (4), and
(b)complies with any prescribed requirements.
(3)In relation to earners employed in employed earner’s employment, a reference scheme is one which provides—
(a)for them to be entitled to a pension under the scheme commencing at a normal pension age of 65 and continuing for life, and
(b)for the annual rate of the pension at that age to be—
(i)1/80th of average qualifying earning in the last three tax years preceding the end of service,
multiplied by
(ii)the number of years service, not exceeding such number as would produce an annual rate equal to half the earnings on which it is calculated.
(4)In relation to widows or widowers, a reference scheme is one which provides—
(a)for the widows or widowers of earners employed in employed earner’s employment (whether the earners die before or after attaining the age of 65) to be entitled, except in prescribed circumstances, to pensions under the scheme; and
[F3(b)for entitlements to those pensions to commence on the day following the death of the earners, and
(c)except in prescribed circumstances, for the annual rate of those pensions to be—
(i)if the earners die on or after their normal pension age, 50 per cent. of the annual rate which a reference scheme was required to provide to the deceased earners immediately before their death, or
(ii)if the earners die before their normal pension age, 50 per cent. of the annual rate of pension which a reference scheme would have been required to provide to the deceased earners if the date of their death had been their normal pension age, and
(d)if those pensions are payable in respect of earners who die—
(i)otherwise than in pensionable service under the scheme, and
(ii)before their own entitlements to pensions under the scheme have commenced,
for those pensions to be revalued in accordance with section 80 as though they were such benefits as are mentioned in section 79(1)(a).]
(5)For the purposes of this section, an earner’s qualifying earnings in any tax year are 90 per cent. of the amount by which the earner’s earnings—
(a)exceed the qualifying earnings factor for that year; and
(b)do not exceed the upper earnings limit for that year multiplied by fifty-three.
(6)Regulations may modify subsections (2) to (5).
(7)In this section—
“normal pension age”, in relation to a scheme, means the age specified in the scheme as the earliest age at which pension becomes payable under the scheme (apart from any special provision as to early retirement on grounds of ill-health or otherwise),
“qualifying earnings factor”, in relation to a tax year, has the meaning given by section 121(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, and
“upper earnings limit”, in relation to a tax year, means the amount specified for that year by regulations made by virtue of section 5(3) of that Act as the upper earnings limit for Class 1 contributions.]
Textual Amendments
F2Ss. 8A-8D inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 133(5); S.R. 1996/91, arts. 2(d)(h), Sch. Pt. IV
F3S. 8B(4)(b)-(d) substituted (6.4.1997) for s. 8B(4)(b) by S.R. 1997/162, reg. 2