The State Pension Regulations (Northern Ireland) 2015

Explanatory Note

(This note is not part of the Regulations)

The Pensions Act (Northern Ireland) 2015 (“the Act”), creates a new state pension for people reaching pensionable age on or after 6th April 2016 (see Part 1 of the Act). It replaces the existing state pension. These Regulations set out some of the detailed rules relating to the new state pension.

Part 2 contains provisions about prisoners. For these purposes, prisoners are people who are imprisoned, detained in legal custody or unlawfully at large. They can be a prisoner in Northern Ireland or outside Northern Ireland. These prisoners may not be entitled to be paid any state pension under the 2015 Act.

Regulation 2 lists the prisoners who are not entitled to be paid a state pension. It provides that some prisoners outside Northern Ireland can be paid their state pension if they would not have been imprisoned in Northern Ireland.

Regulation 3 provides that prisoners on remand are not to be paid a state pension if they later receive certain types of sentence.

Part 3 contains provisions about deferral: where a person defers their new state pension and where a person inherits state pension after their deceased spouse or civil partner had deferred their old state pension. A person may defer by choosing not to claim their state pension when they are first entitled to it or by suspending receipt of their state pension after they first claim it. If they defer, they may receive more state pension when they later choose to claim it. Part 3 sets out a number of rules relating to how such deferrals work.

Regulation 4 sets out the period within which a person can choose a lump sum or periodical payment in respect of their deceased spouse or civil partner's deferred old state pension. It also allows a person to make a late choice (section 8 of the Act sets out what happens if the person does not make a choice with the period).

Regulation 5 provides the manner in which such a choice must be made.

Regulation 6 allows the person to alter their choice in certain circumstances.

Regulation 7 sets out the manner in which a person can suspend their new state pension after it has been claimed.

Regulation 8 specifies the date from which any suspension of state pension begins.

Regulation 9 allows a person to cancel the suspension of their state pension by making a claim for it.

Regulation 10 sets the specified percentage to be used to determine the amount of extra state pension to which a person who has deferred their state pension may be entitled.

Regulation 11 lists the days which are not included when calculating the length of time a person has deferred their state pension.

Regulation 12 provides that some parts of weeks are to be treated as full weeks for the purposes of determining the period of deferral.

Part 4 and regulation 13 specify that the minimum number of qualifying years for the purposes of entitlement to state pension at the reduced and transitional rates is ten. State pension is payable at either a full, reduced or transitional rate. The reduced rate of state pension is payable where a person has reached pensionable age and has at least the specified minimum number of qualifying years. The transitional rate of state pension is payable where a person has reached pensionable age and has at least the specified minimum number of qualifying years, at least one of which is a “pre-commencement qualifying year” as defined in section 4(4) of the Act.

Part 5 contains provisions about pension sharing on divorce or dissolution of a civil partnership. Regulation 14 amends the Sharing of State Scheme Rights (Provision of Information and Valuation) Regulations (Northern Ireland) 2000. Those Regulations set out the information the Department for Social Development must supply to a person or the court in relation to the sharing of rights to a state pension on divorce or dissolution of a civil partnership etc. The amendments are made in consequence of changes made by sections 13 to 15 of, and Schedules 8 to 11 to, the Act. Those provisions of the Act allow for the continuation of state pension sharing on divorce for people who reach state pension age on or after 6th April 2016 and are entitled to the new state pension at the transitional rate. The amendments distinguish rights to an old state pension which are shareable from rights to a new state pension which are shareable.

Sections 2(3), 4(2), 8(3), (7) and (8), 16(1) and (6), 17(4) and (5), 18(1), and 19 of, and paragraph 4 of Schedule 8 and paragraph 4 of Schedule 10 to, the Act, some of the enabling provisions under which these Regulations are made, were brought into operation on 16th July 2015 for the purpose only of authorising the making of regulations by virtue of the Pensions (2015 Act) (Commencement No. 1) Order (Northern Ireland) 2015 (S.R. 2015 No. 307 (C. 25)).

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 they are, accordingly, by virtue of section 149(3) of, and paragraph 10 of Schedule 5 to, the Social Security Administration (Northern Ireland) Act 1992 (c. 8), not subject to the requirement of section 149(2) of that Act for prior reference to the Social Security Advisory Committee; and in so far as they are made in exercise of the powers under Part 5 of the Welfare Reform and Pensions (Northern Ireland) Order 1999, the requirement for consultation does not apply by virtue of Article 73(9) of that Order.