The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations (Northern Ireland) 2010

Certain schemes providing average salary benefits excluded from being qualifying schemes N.I.

36.—(1) A pension scheme which provides for average salary benefits to be provided to or in respect of a jobholder is not a qualifying scheme if, subject to [F1 paragraphs (2A) and (3)], the scheme has any of the features specified in paragraph (2).

(2) The specified features are that, in relation to any jobholder who has accrued rights to benefits under the scheme (“accrued benefits”)—

(a) there is no provision for revaluation of such benefits;

(b) such benefits are to be revalued at less than the minimum rate, or

[F2 (c) a discretionary power may be exercised in the revaluation of such benefits,]

at any time when the jobholder’s pensionable service is continuing.

[F3 (2A) Paragraph (1) does not apply to a scheme with the feature specified in paragraph (2)(b) if—

(a) the funding of the scheme is based on the assumption that accrued benefits would be revalued at or above the minimum rate, and

(b) such funding is provided for in the scheme’s statement of funding principles under Article 202 of the Pensions (Northern Ireland) Order 2005 or, if the scheme is not required to have such a statement, in an equivalent statement of the scheme’s funding plan.]

(3) Paragraph (1) does not apply to a scheme with the feature specified in paragraph (2)(c) if—

(a) the funding of the scheme takes account of the exercise of the discretionary power and does so on the assumption that accrued benefits would be revalued at or above the minimum rate, and

(b) such funding is provided for in the scheme’s statement of funding principles under Article 202 of the Pensions (Northern Ireland) Order 2005(1) or, if the scheme is not required to have such a statement, in an equivalent statement of the scheme’s funding plan.

[F4 (4) For the purposes of this regulation, the minimum rate on a revaluation of accrued benefits is either—

(a) where a scheme is a scheme established under section 1 of the 2014 Act (schemes for persons in public service) or is a new public body pension scheme as defined in section 31(4) of the 2014 Act, an annual increase or decrease by the relevant percentage for the year by reference to which the revaluation is made, or

(b) in any other case, an annual increase by whichever is the lesser or the least of—

(i) the percentage increase in the retail prices index for the year by reference to which the revaluation is made;

(ii) the percentage increase in the general level of prices for the year by reference to which the revaluation is made, and

(iii) 2.5%.

(5) In this regulation—

“the 2014 Act” means the Public Service Pensions Act (Northern Ireland) 2014;

“general level of prices” means the general level of prices determined in accordance with regulation 36(5) of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 (certain schemes providing average salary benefits excluded from being qualifying schemes);

“relevant percentage” means—

(a)

where the scheme requires revaluation of accrued benefits by reference to a change in prices, the percentage change in prices specified in an order under section 9(2) of the 2014 Act (revaluation), or

(b)

where the scheme requires revaluation of accrued benefits by reference to a change in earnings, the percentage change in earnings specified in an order under section 9(2) of the 2014 Act;

“retail prices index” means—

(a)

the general index of retail prices (for all items) published by the Statistics Board, or

(b)

where that index is not published for a month, any substituted index or figures published by the Board.]

Textual Amendments

F1 Words in reg. 36(1) substituted (1.4.2014) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations (Northern Ireland) 2014 (S.R. 2014/89), regs. 1, 2(3)(a)

F2 Reg. 36(2)(c) substituted (1.11.2012) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment No. 3) Regulations (Northern Ireland) 2012 (S.R. 2012/390), regs. 1, 2(a)

F3 Reg. 36(2A) inserted (1.4.2014) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations (Northern Ireland) 2014 (S.R. 2014/89), regs. 1, 2(3)(b)

F4 Reg. 36(4)(5) substituted (1.4.2014) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations (Northern Ireland) 2014 (S.R. 2014/89), regs. 1, 2(3)(c)

Commencement Information

I1 Reg. 36 in operation at 1.7.2012, see reg. 1(1)

(1)

S.I. 2005/255 (N.I. 1)