The Pension Sharing (Consequential and Miscellaneous Amendments) Regulations (Northern Ireland) 2000

Amendment of the Pension Sharing (Valuation) Regulations

10.—(1) The Pension Sharing (Valuation) Regulations (Northern Ireland) 2000(1) shall be amended in accordance with paragraphs (2) to (5).

(2) In regulation 1(2) (interpretation), after the definition of “transfer credits”, there shall be inserted—

• ““transfer day” has the meaning given by Article 26(8) of the 1999 Order;”.

(3) In regulation 4 (occupational pension schemes: manner of calculation and verification of cash equivalents)—

(a) after paragraph (2) there shall be inserted—

“(2A) Where the person with pension rights is a deferred member of an occupational pension scheme on the transfer day, the value of the benefits which he has accrued under that scheme shall be taken to be—

(a) in the case of an occupational pension scheme other than a salary related scheme, the cash equivalent to which he acquired a right under section 90(1)(a)(2) (right to cash equivalent) on the termination of his pensionable service, calculated on the assumption that he has made an application under section 91(1)(3) (ways of taking right to cash equivalent), or

(b) in the case of a salary related occupational pension scheme, the guaranteed cash equivalent to which he would have acquired a right under section 90(1)(aa)(4) if he had made an application under section 91(1).

(2B) Where the person with pension rights is an active member of an occupational pension scheme on the transfer day, the valuation of the benefits which he has accrued under that scheme shall be calculated and verified—

(a) on the assumption that the member had made a request for an estimate of the cash equivalent that would be available to him were his pensionable service to terminate on the transfer day, and

(b) in accordance with regulation 11 of, and Schedule 1 to, the Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996(5) (disclosure).”, and

(b) in paragraph (5) at the end there shall be inserted—

• “, and by adopting methods consistent with the requirements of Chapter IV of Part IV of the Pension Schemes Act (protection for early leavers— transfer values)”.

(4) In regulation 5 (occupational pension schemes: further provisions as to the calculation of cash equivalents and increases and reductions of cash equivalents) for paragraph (5) there shall be substituted—

“(5) The reduction referred to in paragraph (3) shall not apply to a case where liability in respect of a pension credit is to be discharged in accordance with—

(a) paragraph 1(2) of Schedule 5 to the 1999 Order (pension credits: mode of discharge — funded pension schemes), or

(b) paragraph 1(3) of that Schedule, in a case where regulation 7(2) of the Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000(6) applies.”.

(5) In regulation 6 (other relevant arrangements: manner of calculation and verification of cash equivalents)—

(a) after paragraph (1) there shall be inserted—

“(1A) Where the person with pension rights is a member of a personal pension scheme, or those rights are contained in a retirement annuity contract, the value of the benefits which he has accrued under that scheme or contract on the transfer day shall be taken to be the cash equivalent to which he would have acquired a right under section 90(1)(b), if he had made an application under section 91(1) on the date on which the request for the valuation was received.

(1B) In relation to a personal pension scheme which is comprised in a retirement annuity contract made before 4th January 1988, paragraph (2) shall apply as if such a scheme were not excluded from the scope of Chapter IV of Part IV of the Pension Schemes Act by section 89(1)(b) (scope of Chapter IV).”, and

(b) in paragraph (3) at the end there shall be added—

• “, and by adopting methods consistent with the requirements of Chapter IV of Part IV of the Pension Schemes Act”.

(1)

S.R. 2000 No. 144

(2)

Section 90(1)(a) was amended by Article 150(1) of the Pensions (Northern Ireland) Order 1995

(3)

Section 91(1) was amended by paragraph 5 of Schedule 4 to the Pensions (Northern Ireland) Order 1995

(4)

Section 90(1)(aa) was inserted by Article 150(2) of the Pensions (Northern Ireland) Order 1995

(5)

S.R. 1996 No. 619

(6)

S.R. 2000 No. 145