The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

Circumstances in which the age-related payments are not to be paid

37.—(1) An age-related payment shall not be paid in respect of an earner for the tax year or part of the tax year in which that earner—

(a) reaches pensionable age, or

(b) dies and in which he would have reached pensionable age.

(2) Where effect has been given to protected rights under section 24 of the Act(1) (ways of giving effect to protected rights) age-related payments shall not, except as provided for by paragraphs (3) to (6), be paid in respect of an earner for any tax year or part of a tax year before effect had been given to that earner’s protected rights.

(3) Where effect has been given to the earner’s protected rights by the purchase of an annuity or by the provision by the scheme of a pension and the amount of the age-related payment in question is at least 10 times as great as the weekly lower earnings limit for the tax year in which the Department first becomes aware that the age-related payment is payable or would have been payable but for paragraph (2), the age-related payments shall be paid (in the case of an annuity) to the insurance company from which the annuity had been purchased, or (in the case of a pension) to the trustees or managers of the scheme.

(4) Where effect has been given to the earner’s protected rights but the circumstances described in paragraph (3) do not exist the age-related payments shall be payable to the earner or the earner’s widow or widower, or if the earner died unmarried, they may at the Department’s discretion be paid to any person.

(5) Where effect has been given to the earner’s protected rights by the provision of a lump sum, the age-related payment shall be payable to the earner or the earner’s widow or widower or, if the earner died unmarried, that payment may at the Department’s discretion be paid to any person.

(6) Where effect has been given to the earner’s protected rights by virtue of a transfer payment to another money purchase contracted-out scheme or a salary related scheme and either the whole or part of a contributions equivalent premium has not been paid or no election to pay the whole or part of the contributions equivalent premium has been received by the Department, or to an appropriate personal pension scheme or an overseas scheme, the age-related payments shall be payable up to the date on which the transfer payment was made to the trustees or managers of that other scheme.

(7) Where effect has been given to the earner’s protected rights by means of an appropriate policy of insurance by virtue of section 28A of the Act(2) (discharge of protected rights on winding up: insurance policies), the age-related payment in respect of the tax year or part of the tax year before the tax year in which either the earner reaches pensionable age, or dies and in which he would reach pensionable age, shall be payable to the insurance company with which that policy of insurance is or was taken out or entered into.

(1)

Section 24(1) was amended by Articles 139 and 143(2) of the Pensions (Northern Ireland) Order 1995

(2)

Section 28A was inserted by Article 143(1) of the Pensions (Northern Ireland) Order 1995