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37.—(1) Paragraph (2) applies for the purposes of [F1section 23(1)(c)] (test scheme).
(2) The following must be satisfied in relation to a test scheme—
(a)the requirements of section 80(1) of the 1993 Act (basis of revaluation), and
(b)the requirements of Article 51 of the 1995 Order(1) (annual increase in rate of pension) [F2in relation to a scheme which provides for a member to be entitled to a pension commencing at the appropriate age and continuing for life].
(3) For the purposes of paragraph (2)(a), section 80(1) of the 1993 Act shall have effect as if “Subject to subsections (2) and (3),” were omitted.
Textual Amendments
F1Words in reg. 37(1) substituted (1.7.2012) by The Automatic Enrolment (Miscellaneous Amendments) Regulations (Northern Ireland) 2012 (S.R. 2012/232), regs. 1(1)(c), 2(16)(a)
F2Words in reg. 37(2)(b) added (1.7.2012) by The Automatic Enrolment (Miscellaneous Amendments) Regulations (Northern Ireland) 2012 (S.R. 2012/232), regs. 1(1)(c), 2(16)(b)
Commencement Information
38.—(1) In paragraph 2 “relevant determination” means a determination under section 22 as to whether a scheme satisfies the test scheme standard in relation to a jobholder.
(2) For the purposes of making any relevant determination on or after the date specified in an entry in Column 1 of the Table, the higher “appropriate age” prescribed for the purposes of section 23(3) is the age specified in Column 2 of the same entry.
Table | |
Date | Pension age in test scheme |
[F36th April 2020] | 66 years |
6th April 2034 | 67 years |
6th April 2044 | 68 years |
Textual Amendments
F3Words in reg. 38(2) substituted (1.7.2012) by The Automatic Enrolment (Miscellaneous Amendments) Regulations (Northern Ireland) 2012 (S.R. 2012/232), regs. 1(1)(c), 2(17)
Commencement Information
39.—(1) This regulation applies for the purposes of section 22(4) (test scheme standard).
(2) No person other than—
(a)the scheme actuary, or
(b)the employer of the relevant members of the scheme,
may certify that a scheme satisfies the test scheme standard.
(3) An employer may certify a scheme under paragraph (2)(b) only in cases that do not require any calculation, comparison or assessment of a description usually carried out by actuaries.
(4) In determining whether a scheme satisfies the test scheme standard, a scheme actuary or employer—
(a)must have regard to the benefits to be provided under the scheme for persons who, at the date by reference to which the determination is made (which may precede the date on which it is made), are relevant members of the scheme, and
(b)must not have regard to—
(i)pension credit benefits;
(ii)death benefits;
(iii)discretionary benefits (apart from those arising from discretionary pre-retirement revaluation made in the case of schemes providing for average salary benefits);
(iv)survivors’ benefits;
(v)F4... money purchase benefits;
(vi)benefits in respect of any person who is not a jobholder for the purposes of the Act;
(vii)benefits in respect of any jobholder whose annual rate of benefit accrual under the scheme has been reduced below the rate specified in section 23(4)(a) (test scheme), where the reduction is made as a result of a request made by the jobholder in question in accordance with scheme rules, or
(viii)benefits in respect of any jobholder who has given notice under section 8 (jobholder’s right to opt out).
(5) A scheme actuary or employer may not certify that a scheme satisfies the test scheme standard if the benefits to be provided for more than 10% of relevant members are not at least as valuable as the benefits which would be provided for them under a test scheme.
(6) In determining whether—
(a)any of paragraphs (3) to (5) apply in relation to a scheme, or
(b)a scheme otherwise satisfies the test scheme standard,
a scheme actuary or employer must follow any guidance issued by the Department under section 22(5) which is for the time being in force.
(7) “Scheme actuary” has the meaning given in section 22(7) except—
(a)where the scheme is a defined benefits or hybrid scheme within section 18(b) (occupational pension schemes);
(b)where the scheme is a defined benefits or hybrid scheme within section 18(c) and there is an actuary appointed to the scheme who satisfies the requirements of regulations made under Article 47(5) of the 1995 Order(2) (professional advisers), or
(c)in any other circumstances where, by virtue of regulations made under Article 47 of the 1995 Order, the scheme is not required to appoint a scheme actuary.
(8) In any case falling within paragraph (7)(b), “scheme actuary” means the actuary referred to in that paragraph who is appointed to the scheme.
(9) “Relevant members” has the meaning given in section 22(2).
Textual Amendments
F4Words in reg. 39(4)(b)(v) omitted (1.7.2012) by virtue of The Automatic Enrolment (Miscellaneous Amendments) Regulations (Northern Ireland) 2012 (S.R. 2012/232), regs. 1(1)(c), 2(18)
Commencement Information
39A.—(1) The requirement relating to a sum of money which a scheme referred to in section 23(2)((test scheme) must satisfy if it is to be a test scheme is specified in—
(a)paragraph (4) in the case of a scheme described in paragraph (2), or
(b)paragraph (5) in the case of any other scheme to which section 23(2)(b) applies.
(2) A scheme referred to in paragraph (1)(a) is a scheme under which the sum of money to be made available for the provision of benefits is determined by reference to final pensionable pay.
(3) For the purposes of paragraph (2), “final pensionable pay” has the same meaning as in the rules of the scheme in question.
(4) Where this paragraph applies, the requirement in question is that the sum of money to be made available for the provision of benefits to a member must—
(a)accrue at an annual rate of at least 16% of average qualifying earnings in the last 3 tax years preceding the end of pensionable service, and
(b)be multiplied by the number of years of pensionable service up to a maximum of 40 years.
(5) Where this paragraph applies, the requirement in question is the requirement specified in paragraph (6) or (7).
(6) The requirement is that the sum of money must accrue at an annual rate of at least 16% of average qualifying earnings multiplied by the number of years of pensionable service up to a maximum of 40 years.
(7) The requirement is that the sum of money must—
(a)accrue at an annual rate of at least 8% of average qualifying earnings, and
(b)until the date on which the member attains the appropriate age, be increased as a minimum by 3.5% per annum, in addition to any increase that is required by virtue of regulation 37(2)(a).
(8) Where the employer makes a choice under paragraph (5) as to the requirement to be satisfied for the purposes of this regulation, that requirement must be satisfied in relation to all persons who are relevant members as defined by section 22(2) (test scheme standard).]
Textual Amendments
Article 51 was amended by paragraph 40 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)), section 47(1) of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4 (N.I.)), Article 255 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) and Article 11 of S.I. 2006/745
See S.R. 1997 No. 94
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