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

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations

5.—(1) The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996(1) shall be amended in accordance with sub-paragraphs (2) to (15).

(2) In regulation 1(2) for the definition of “section 5(2B) rights” there shall be substituted the following definition—

• ““section 5(2B) rights” are—

  (a)

  rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions) under a scheme contracted-out by virtue of section 5(2B) of the Act(2), so far as attributable to an earner’s service in contracted-out employment on or after the principal appointed day, and

  (b)

  where a transfer payment has been made to such a scheme, any rights arising under the scheme as a consequence of that payment which are derived directly or indirectly from—

  (i)

  such rights as are referred to in paragraph (a) under another scheme contracted-out by virtue of section 5(2B) of the Act, or

  (ii)

  protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of contracted-out employment on or after the principal appointed day;”.

(3) In regulation 2 for paragraph (2) there shall be substituted the following paragraph—

“(2) In making or abstaining from making an election as to the inclusion of an employment in a contracting-out certificate, an employer may discriminate between different earners (otherwise than on the ground of the nature of their employment) in any case where such discrimination would be lawful apart from section 7(3) of the Act.”.

(4) In regulation 3 for paragraphs (4) and (5) there shall be substituted the following paragraphs—

“(4) Unless paragraph (5) applies, a notice under this regulation must specify a date of expiry which is not earlier than the date 3 months after the date on which the notice is given.

(5) Where—

(a) there is no independent trade union recognised in relation to the earners concerned, or

(b) before the notice has been given every such trade union has consented in writing to the notice specifying an earlier date than that which is required under paragraph (4),

the notice may specify an earlier date (but not earlier than the date one month after that on which the notice is given).”.

(5) Regulation 6(2)(f)(i) shall be omitted.

(6) In regulation 7 at the end there shall be added “or the date from which it is intended that the certificate is to have effect”.

(7) In regulation 9(8) at the end there shall be added “or the date from which it is intended that the variation or surrender is to have effect”.

(8) In regulation 42 for paragraphs (1) and (2) there shall be substituted the following paragraphs—

“(1) For the purposes of section 33(1) of the Act(3) (prohibition on alteration of rules of contracted-out schemes unless the alteration is of a prescribed description), the alterations which are prescribed are any alterations which are not prohibited by paragraph (2), (2A) or (2B).

(2) The rules of a salary related contracted-out scheme cannot be altered in relation to any section 5(2B) rights under the scheme unless—

(a) the trustees of the scheme have informed the actuary in writing of the proposed alteration;

(b) the actuary has considered the proposed alteration and has confirmed to the trustees in writing that he is satisfied that the scheme would continue to satisfy the statutory standard in accordance with section 8A of the Act if the alteration were made, and

(c) the alteration does not otherwise prevent the scheme from satisfying the conditions of section 5(2B) of the Act.

(2A) The rules of a scheme contracted-out under section 5(3) of the Act (a money purchase contracted-out scheme) cannot be altered in relation to protected rights if the alteration would—

(a) affect any of the matters dealt with in Part III of the Act or any regulations made under that Part which relate to protected rights in a manner which would or might adversely affect any entitlement or accrued rights of any member of the scheme acquired before the alteration takes effect, or

(b) otherwise prevent the scheme from satisfying the conditions of that section.

(2B) The rules of a contracted-out scheme cannot be altered in relation to any guaranteed minimum pensions under the scheme if the alteration would—

(a) affect any of the matters dealt with in Part III of the Act or any regulations made under that Part which relate to guaranteed minimum pensions in a manner which would or might adversely affect any entitlement or accrued rights of any member of the scheme acquired before the alteration takes effect;

(b) affect any of the matters dealt with in sections 83 to 88 (protection of increases in guaranteed minimum pensions) and 105 and 106 of the Act(4) (annual increases of guaranteed minimum pensions) or in any regulations made under those provisions which relate to guaranteed minimum pensions, or

(c) otherwise prevent the scheme from satisfying—

(i) in the case of a salary related contracted-out scheme, section 5(2) of the Act, or

(ii) in the case of a scheme contracted-out under section 5(3) of the Act, that section.”.

(9) In regulation 48—

(a) in paragraph (5) for sub-paragraph (c) there shall be substituted the following sub-paragraphs—

“(c) except in cases to which regulation 73 applies, for the purposes of section 5(2B)(c)(i) of the Act, the requirement as to the amount of the resources of the scheme is that, if the scheme were to be wound up at any time, those resources would be sufficient to meet in full the liabilities mentioned in paragraphs (a) to (e) of Article 73(3) of the Order, calculating, determining and valuing those liabilities and resources in a manner approved by the Department,

(ca) the scheme must provide that, if it is wound up, the assets of the scheme must be applied first towards satisfying the amounts of liabilities mentioned in those sub-paragraphs and, if they are insufficient to satisfy those amounts in full, then—

(i) they must be applied first towards satisfying the amounts of the liabilities mentioned in earlier sub-paragraphs before those mentioned in later sub-paragraphs, and

(ii) where the amounts of the liabilities mentioned in one of those sub-paragraphs cannot be satisfied in full, those amounts must be satisfied in the same proportions, and”;

(b) after paragraph (5) there shall be inserted the following paragraph—

“(5A) For the purposes of paragraph (5)(c) and (ca), the reference to Article 73(3) of the Order is to that Article as modified by paragraphs (3) to (5) of regulation 3 of the Occupational Pension Schemes (Winding Up) Regulations (Northern Ireland) 1996(5) (whether or not the transitional period mentioned in paragraph (2) of that regulation has expired).”.

(10) In regulation 52 after paragraph (1) there shall be inserted the following paragraph—

“(1A) On an application made to it for that purpose, the Department may, in any particular case or class of case, extend the period within which a premium must be paid under paragraph (1)—

(a) if it is satisfied that the circumstances are such that payment of the premium could not reasonably be required to be made within that period, by a period not exceeding 6 months, and

(b) if it is satisfied that to require earlier payment would be prejudicial to the interests of the earner in respect of whom the premium is payable or of the generality of the members of the scheme, by such further period as it considers reasonable.”.

(11) In regulation 55 for the words from “an earner’s employment” to “earner’s guaranteed minimum)” there shall be substituted “the employment of any earner who has a guaranteed minimum under section 10 of the Act in relation to a pension provided by the scheme it must include a rule to the effect that”.

(12) In regulation 60—

(a) in paragraph (3) for “paragraph (1)(c)” there shall be substituted “paragraph (1)(b)”; and

(b) in paragraph (4) for “paragraph (1)(b)” and “paragraph (1)(c)” there shall be substituted respectively “paragraph (1)(a)” and “paragraph (1)(b)”.

(13) In regulation 72—

(a) for paragraph (2) there shall be substituted the following paragraph—

“(2) The liabilities referred to in paragraph (1) are the liabilities mentioned in sub-paragraphs (a) to (e) of Article 73(3) of the Order (as modified by paragraphs (3) to (5) of regulation 3 of the Occupational Pension Scheme (Winding Up) Regulations (Northern Ireland) 1996).”;

(b) in paragraph (3) the words “Subject to paragraphs (4) and (5),” shall be omitted; and

(c) paragraphs (4) and (5) shall be omitted.

(14) In regulation 77—

(a) in paragraph (3) at the end there shall be added “immediately before the principal appointed day”; and

(b) for paragraph (4) there shall be substituted the following paragraphs—

“(4) Where a contracting-out certificate for a scheme to which this regulation applies (“the second certificate”) is issued after the principal appointed day but not later than 31st January 1998 (or such later date as the Department may in its discretion permit in any particular case), then the contracting-out certificate in force immediately before the principal appointed day (“the first certificate”) shall be deemed to continue in effect during the period beginning with the principal appointed day and ending with the time when the second certificate is issued or 31st January 1998 if it is earlier.

(5) Paragraph (4) does not apply if the first certificate was cancelled or surrendered before the end of that period.

(6) Paragraph (4) is without prejudice to the powers in regulations 8(2)(d) and 47(2) (retrospective effect of issue and cancellation of certificates).”.

(15) After regulation 77 there shall be inserted the following regulation—

“Former requirements for consent for alterations of rules

77A.   Where any provision of a scheme provides that any alteration of the rules of the scheme, to which section 33(1) of the Act applied immediately before the principal appointed day, requires, or is void if made without, the consent of the Occupational Pensions Board, to the extent that it so provides it shall cease to have effect.”.

(1)

S.R. 1996 No. 493

(2)

Section 5(2B) was substituted by Article 133(3) of the Pensions (Northern Ireland) Order 1995

(3)

Section 33 was substituted by paragraph 32 of Schedule 3 to the Pensions (Northern Ireland) Order 1995

(4)

Section 105 was amended by Article 55 of the Pensions (Northern Ireland) Order 1995 and section 106 is amended by Article 53(4) of that Order

(5)

S.R. 1996 No. 621