PART 6PRIVATE PENSIONS

Transfer of pension benefits

I132Automatic transfer of pension benefits etc.

Schedule17—

a

requires the Department to make regulations under which, in certain circumstances, the cash equivalent of a person's accrued rights to benefits under a pension scheme must be transferred to another scheme of which the person is an active member;

b

permits the Department to make regulations requiring accounts relating to a person's accrued rights to benefits under a pension scheme to be merged in certain circumstances.

F133Power to prohibit offer of incentives to transfer pension rights

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34Expiry of power in section 33

If no regulations have been made under section33 by the end of the period of 7 years beginning with the day on which it comes into operation, that section is repealed at the end of that period.

I235Short service benefit for scheme member with money purchase benefits

1

Section 67 of the Pension Schemes Act (basic principle as to short service benefit) is amended as follows.

2

In subsection (1)(a), after “service,” insert—

aa

he has at least 30 days' qualifying service and, if he were entitled to benefit because of this paragraph, all of it would necessarily be money purchase benefit,

3

After subsection (9) insert—

10

Subsections (7) to (9) apply, with the substitution for references to 2 years of references to 30 days, for determining whether a person has at least 30 days' qualifying service for the purposes of subsection (1).

11

Subsection (1)(aa) does not apply in relation to a person's membership of a scheme if any period of relevant service began before the day on which section35 of the Pensions Act (Northern Ireland) 2015 came into operation (whether or not it also ended before that date).

“Relevant service” means service that counts towards the 30 days' qualifying service for the purposes of subsection (1).

4

In section 97AA of the Pension Schemes Act (early leavers: cash transfer sums and contribution refunds), in subsection (4)(b), after “(a)” insert “ , (aa) ”.