PART IVCERTIFICATION OF PENSION SCHEMES AND EFFECTS ON MEMBERS' STATE SCHEME RIGHTS AND DUTIES
Introductory
The “principal appointed day” for Part IV132
An order under Article 1 appointing a day for the coming into operation of any provisions of this Part, being 6th April in any year, may designate that day as the principal appointed day for the purposes of this Part.
New certification requirements applying as from the principal appointed day
New requirements for contracted-out schemes133
F111
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F52
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F113
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F104
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F115
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reduction in State scheme contributions, payment of rebates and reduction in State scheme benefits
State scheme contributions and rebates134
1
In section 36 of the Pension Schemes Act (scope of Chapter II of Part III), in paragraph (b), after “members of” insert “money purchase contracted-out schemes and members of”
.
Para.(2) rep. by 1998 NI 10
F63
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
In Schedule 3 to that Act (priority in bankruptcy, etc), in paragraph 2(3)—
a
in paragraph (a), for “4.8 per cent.” substitute “the percentage for non-contributing earners”
,
b
in paragraph (b), for “3 per cent.” substitute “the percentage for contributing earners”
.
6
In paragraph 2(5) of that Schedule—
F8a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
after that definition insert—
“the percentage for contributing earners”
- a
in relation to a salary related contracted-out scheme, 3 per cent, and
- b
in relation to a money purchase contracted-out scheme, the percentage which is the appropriate flat-rate percentage for secondary Class 1 contributions,
“the percentage for non-contributing earners” means—
- a
in relation to a salary related contracted-out scheme, 4.8 per cent, and
- b
in relation to a money purchase contracted-out scheme, a percentage equal to the sum of the appropriate flat-rate percentages for primary and secondary Class 1 contributions;
Minimum contributions towards appropriate personal pension schemes135
1
Section 41 of the Pension Schemes Act (minimum contribution to personal pension schemes) is amended as setout in paragraphs (2) to (4).
2
For subsection (1) substitute—
1
In relation to any tax week falling within a period for which the Department is required to pay minimum contributions in respect of an earner, the amount of those contributions shall be an amount equal to the appropriate age-related percentage of so much of the earnings paid in that week (other than earnings in respect of contracted-out employment) as exceeds the current lower earnings limit but not the current upper earnings limit for that week (or the prescribed equivalents if he is paid otherwise than weekly).
3
Subsection (2) is omitted.
4
In subsection (3)(e), the words following “prescribed period” are omitted.
F25
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Money purchase and personal pension schemes: verification of ages.F1136
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reduction in benefits for members of certified schemes137
1
After section 44 of the Pension Schemes Act insert—
Effect of reduced contributions and rebates on social security benefits
Additional pension and other benefits.44A
1
In relation to any tax week there—
a
the amount of a Class 1 contribution in respect of the earnings paid to or for the benefit of an earner in that week is reduced under section 37 or 38A, or
b
an amount is paid under section 41(1) in respect of the earnings paid to or for the benefit of an earner,
section 44(6) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (earnings factors for additional pension) shall have effect, except in prescribed circumstances, as if no primary Class 1 contributions had been paid or treated as paid upon those earnings for that week and section 45A of that Act did not apply (where it would, apart from this subsection, apply).
2
Where the whole or part of a contributions equivalent premium has been paid or treated as paid in respect of the earner, the Department may make a determination reducing or eliminating the application of subsection (1).
3
Subsection (1) is subject to regulations under paragraph 5(3A) to (3E) of Schedule 1.
4
Regulations may, so far as is required for the purpose of providing entitlement to additional pension (such as is mentioned in section 44(3)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992) but to the extent only that amount of additional pension is attributable to provision made by regulations under section 45(5) of that Act, disapply subsection (1).
5
In relation to earners where, by virtue of subsection (1), section 44(6) of Social Security Contributions and Benefits (Northern Ireland) Act 1992 has effect, in any tax year, as mentioned in that subsection in relation to some but not all of their earnings, regulations may modify the application of section 44(5) of that Act.
2
In section 44 of the Pension Schemes Act (effect of membership of money purchase contracted-out scheme or appropriate scheme on payment of social security benefits), in subsection (2), paragraph (b) is omitted and, in paragraph (c), “if the earner dies before reaching pensionable age” is omitted.
3
Section 44 of that Act shall cease to have effect in relation to minimum payments made, or minimum contributions paid, on or after the principal appointed day.
Protected rights
Interim arrangements for giving effect to protected rightsF7139
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Requirements for interim arrangementsF7140
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interim arrangements: supplementaryF7141
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extension of interim arrangements to occupational pension schemesF7142
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discharge of protected rights on winding up: insurance policiesF7143
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous
Monitoring personal pension schemes144
After section 29 of the Pension Schemes Act insert—
Appropriate schemes: “Blowing the whistle”.29A
1
If any person acting as an auditor or actuary of an appropriate scheme has reasonable cause to believe that—
a
any requirement which, in the case of the scheme, is required by section 5(5)(a) to be satisfied is not satisfied, and
b
the failure to satisfy the requirement is likely to be of material significance in the exercise by the Department of any of its functions relating to appropriate schemes,
that person must immediately give a written report of the matter to the Department.
2
No duty to which a person acting as auditor or actuary of an appropriate scheme is subject shall be regarded as contravened merely because of any information or opinion contained in a written report under this section.
Earner employed in more than one employmentF3145
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hybrid occupational pension schemesF9146
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Art. 147—Amendments