Explanatory Note
(This note is not part of the Regulations)
These Regulations prescribe certain requirements which must be met where an occupational pension scheme is modified using a power conferred on any person by a scheme and where the subsisting rights provisions apply. The subsisting rights provisions are contained in Articles 67 to 67I of the Pensions (Northern Ireland) Order 1995 (“the 1995 Order”) and require that modifications to which they apply must either comply with the consent requirements or the actuarial equivalence requirements, as well as, the trustee approval and reporting requirements. These Regulations also enable trustees, in prescribed circumstances, to modify a trust scheme by way of a resolution.
Regulation 2 exempts categories of schemes from the subsisting rights provisions.
Regulation 3 exempts from the subsisting rights provisions modifications made in a prescribed manner. In particular paragraphs (f) and (g) exempt certain modifications which may be made as a result of provisions of the Finance Act 2004 which relate to unauthorised member payments or which relate to certain charges. Paragraph (h) exempts modifications which have the same effect as any or all the modifications in regulations 3 to 8 of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006 (“the 2006 Regulations”). Paragraph (i) exempts modifications which deal with providing benefits to surviving civil partners so that they may be treated in the same way as widows or widowers.
Regulation 4 prescribes the qualifications or experience required for a person providing an actuarial equivalence statement, where a modification of a scheme must comply with the actuarial equivalence requirements.
Regulation 5 prescribes requirements for calculating the actuarial value of an affected member’s subsisting rights, where the actuarial equivalence requirements apply to a modification of a scheme.
Regulation 6 prescribes that the trustees of a trust scheme may by resolution modify the scheme for the purposes of achieving the same effect as all of the modifications in regulations 3 to 8 of the 2006 Regulations. Such a resolution must be passed before 6th April 2011 and it may only have effect on or after 6th April 2006.
Regulation 7 prescribes that the trustees of a trust scheme may by resolution modify the scheme for the purposes of providing benefits to surviving civil partners so that they may be treated in the same way as widows or widowers. Such modifications must not be made without the consent of the employer where the modification confers rights in excess of what is required to comply with the Civil Partnership Act 2004. In the case of a multi-employer scheme such consent must be given by all of the employers, however, a person may be nominated to give such consent or an employer may waive his consent.
Regulation 8 exempts certain schemes from the provisions which allow trustees of trust schemes to modify the scheme by resolution.
Regulation 9 revokes the Occupational Pension Schemes (Modification of Schemes) Regulations (Northern Ireland) 1996 and makes consequential revocations.
The Pensions (2005 Order) (Commencement No. 6) Order (Northern Ireland) 2005 (S.R. 2005 No. 411 (C. 32)) provides for the coming into operation of Article 239 of the Pensions (Northern Ireland) Order 2005, which substituted Articles 67(1)(b) and (3)(b), 67C(7)(a)(ii) and 67D(4) and (5) of the 1995 Order, some of the enabling provisions under which these Regulations are made, for the purposes only of authorising the making of regulations, on 1st November 2005 and for all other purposes on 6th April 2006.
As these Regulations make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement to consult under Article 117(1) of the 1995 Order does not apply by virtue of paragraph (2)(e) of that Article.