The Pension Protection Fund (Pension Sharing) Regulations (Northern Ireland) 2006

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision for the Board of the Pension Protection Fund (“the Board”) to discharge liability in respect of a pension sharing order or provision which has been made prior to the date the trustees or managers of a scheme receive a transfer notice under Article 144 of the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”) or section 160 of the Pensions Act 2004, but which has either not come into effect by that date or in relation to which the liabilities of the trustees or managers have not been discharged by that date.

Regulation 2 modifies Articles 24, 27 and 43 of, and Schedule 5 to, the Welfare Reform and Pensions (Northern Ireland) Order 1999 (“the 1999 Order”) to allow the Board to give effect to an order or provision which remains unimplemented.

Regulation 3 modifies Schedule 6 to the 2005 Order to provide that where a person’s shareable rights under a pension arrangement are subject to a pension debit, any compensation shall be subject to reduction in accordance with the provisions of Article 28 of the 1999 Order.

The Pensions (2005 Order) (Commencement No. 7) Order (Northern Ireland) 2005 (S.R. 2005 No. 543 (C. 37)) provides for the coming into operation of Article 199, one of the enabling provisions under which these Regulations are made, on 1st January 2006.

As these Regulations are made before the end of the period of six months beginning with the coming into operation of the provisions of the 2005 Order by virtue of which they are made, the requirement to consult under Article 289(1) of the 2005 Order does not apply by virtue of paragraph (2)(c) of that Article.