The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1997

Explanatory Note

(This note is not part of the Regulations.)

These Regulations are consequential on the Pensions (Northern Ireland) Order 1995 (“the Order”).

Regulation 1 relates to citation, commencement and interpretation.

Regulation 2 modifies the application of the Order to ensure that the provisions of Part II of the Order apply to money purchase schemes that also provide salary related death benefits.

Regulation 3 introduces the Schedule which makes miscellaneous amendments.

Regulation 4 makes revocations and transitional provision for state scheme premiums for personal pensions to be paid after 5th April 1997 in respect of periods ending before or with that date.

In addition to minor and drafting amendments, the Schedule makes miscellaneous amendments to—

• remove the additional requirements for contracted-out schemes in respect of employer-related investments for the period from April 1997 to April 2002;

• clarify the position of contracted-out rights which have been the subject of 2 or more transfers;

• harmonise the definitions of “section 5(2B) rights”;

• allow employers to withdraw an opt-out arrangement at any time to enable member-nominated trustees to be appointed;

• impose a requirement on schemes to disclose that a notional rate of return is being applied to protected rights within a contracted-out money purchase scheme or the contracted-out money purchase part of a contracted-out mixed benefit scheme;

• remove the requirement on employers to make payments in respect of the deficit below 90 per cent. revealed at a minimum funding valuation where the actuary is of the opinion that the funding level has recovered to 90 per cent. or higher by the time he certifies the schedule of contributions;

• modify the disclosure requirements for employer-related investments; and

• extend the special treatment of multi-employer schemes so that it covers schemes which, whilst generally run in sections which do not permit cross-subsidy, have a common arrangement for the payment of death benefits.

• As these Regulations make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Social Security in relation to Great Britain, the requirement for consultation under Article 117(1) of the Order does not apply by virtue of paragraph (2)(e) of that Article.