Modification of references to “transfer” in the Pension Schemes Act2.

(1)

In their application to cases where an order is made under Article 15(6) (pension liberation: Court’s power to order restitution) or 17(2)(b) (pension liberation: repatriation orders), the provisions referred to in this regulation and regulation 3 shall have effect with the modifications there specified.

(2)

The references to “a transfer payment” in F1section 67 (basic principle as to short service benefit) and any regulations made under that section, shall be modified so as to have effect as if those references included a reference to –

(a)

property or money transferred by virtue of an order made by the High Court under Article 15(4) and applied in accordance with directions contained in an order made by virtue of Article 15(6); or

(b)

money paid by virtue of an order made by the Regulator under Article 17(2)(a) and applied in accordance with directions contained in an order made by virtue of Article 17(2)(b).

(3)

Paragraph (5) shall cease to have effect from the coming into operation of paragraph 26 of Schedule 10 to the Order (minor and consequential amendments).

(4)

Paragraph (6) shall have effect from the coming into operation of paragraph 26 of Schedule 10 to the Order.

(5)

In relation to the references to “transfer credits” in sections 525, 696 and 71 (provisions supplementary to section 51; form of short service benefit and its alternatives; credits), and any regulations made under any of those sections, the definition of “transfer credits” in section 176(1) (general interpretation) shall be modified so as to apply as if at the end there were added –

“or by reference to a transfer or payment made by virtue of an order under Article 15(4) or 17(2)(a) of the Pensions (Northern Ireland) Order 2005 which the trustees or managers have been directed to apply, pro rata, as if it were a transfer of his accrued rights from another scheme”.

(6)

In relation to the references to “transfer credits” in sections 52, 69 and 71, and any regulations made under any of those sections, the definition of “transfer credits” in section 176(1) shall be modified so as to apply as if at the end there were added –“or

(c)

a transfer or payment made by virtue of an order under Article 15(4) or 17(2)(a) of the Pensions (Northern Ireland) Order 2005 which the trustees or managers have been directed to apply, pro rata, as if it were a transfer of his accrued rights from another scheme;”.

(7)

The references in section 174(1)(a)(i) and (b) and (3) (linked qualifying service), and any regulations made under that section, to a transfer of rights accrued under one scheme to a second scheme shall be modified so as to have effect as if they included a transfer or payment made by virtue of an order under Article 15(4) or 17(2)(a) which the trustees or managers of the second scheme have been directed to apply, pro rata, as if it were a transfer of accrued rights from the first scheme.

(8)

From the coming into operation of paragraph 25 of Schedule 10 to the Order, the modification of section 174, and any regulations made under that section, made in paragraph (7) shall also apply to references in subsection (1)(a)(i) and (iii) and (b) of that section, and in any such regulations, to a transfer payment made in respect of accrued rights to the second scheme or to the trustees or managers of that scheme, and to a cash equivalent or cash transfer sum paid in respect of the member to the trustees or managers of the second scheme.