Pension Schemes (Northern Ireland) Act 1993

80 Basis of revaluation. N.I.

(1) [F1 Subject 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 [F2 other 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 M1 Social Security Administration (Northern Ireland) Act 1992; F8 . . . [F9 or

(b) under any arrangement which maintains the value of the pension or other benefit by reference to the rise in [F10 the 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 [F11 widow, widower [F12 , surviving same sex spouse] or surviving civil partner] has not been deducted.

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

Textual Amendments

F1 Words 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)

F2 Words 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)

F3 S. 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)

F4 S. 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)

F5 Words 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)

F6 Words 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)

F7 Words 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)

F8 S. 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)

F9 S. 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))

F10 Words 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)

F11 Words in s. 80(5) substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order (Northern Ireland) 2005 (S.R. 2005/434), art. 1(3), Sch. para. 13

F12 Words in s. 80 inserted (13.1.2020) by The Marriage (Same-sex Couples) and Civil Partnership (Opposite-sex Couples) (Northern Ireland) Regulations 2019 (S.I. 2019/1514), regs. 1(2), 68(8) (with regs. 6-9)

F13 S. 80(6) omitted (7.6.2012) by virtue of Pensions Act (Northern Ireland) 2012 (c. 3), ss. 20(3), 34(3); S.R. 2012/233, art. 2(2)(e)

Modifications etc. (not altering text)

C1 S. 80 applied (24.7.2014) by The Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 24(4)

C2 S. 80(1) modified (1.7.2012) by The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations (Northern Ireland) 2010 (S.R. 2010/122), regs. 1(1), 37(3); as amended (1.7.2012) by S.R. 2012/237, regs. 1(1)(b), 2(2)

Marginal Citations

M1 1992 c. 8.