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Pension Schemes (Northern Ireland) Act 1993

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Changes over time for: Pension Schemes (Northern Ireland) Act 1993 (without Schedules)

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Version Superseded: 06/04/2016

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Point in time view as at 10/08/2021.

Changes to legislation:

Pension Schemes (Northern Ireland) Act 1993 is up to date with all changes known to be in force on or before 22 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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Part IN.I. Preliminary

1 Categories of pension schemes.N.I.

F1[(1)]In this Act—

[F2“occupational pension scheme” means a pension scheme—

(a)that—

(i)for the purpose of providing benefits to, or in respect of, people with service in employments of a description, or

(ii)for that purpose and also for the purpose of providing benefits to, or in respect of, other people,

is established by, or by persons who include, a person to whom subsection (2) applies when the scheme is established or (as the case may be) to whom that subsection would have applied when the scheme was established had that subsection then been in force, F3...

F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

a pension scheme that is prescribed or is of a prescribed description;

“personal pension scheme” means a pension scheme that—

(a)is not an occupational pension scheme, and

(b)is established by a person within F4... section 154(1) of the Finance Act 2004;]

“public service pension scheme” means an occupational pension scheme established by or under an enactment or the Royal prerogative or a Royal charter, being a scheme—

(a)all the particulars of which are set out in, or in a legislative instrument made under, an enactment, Royal warrant or charter, or

(b)which cannot come into force, or be amended, without the scheme or amendment being approved by a Minister of the Crown or government department,

and includes any occupational pension scheme established, with the concurrence of the Department of Finance and Personnel, by or with the approval of another government department and any occupational pension scheme prescribed by regulations made by the Department and the Department of Finance and Personnel jointly as being a scheme which ought in their opinion to be treated as a public service pension scheme for the purposes of this Act.

[F5(2)This subsection applies—

(a)where people in employments of the description concerned are employed by someone, to a person who employs such people,

(b)to a person in an employment of that description, and

(c)to a person representing interests of a description framed so as to include—

(i)interests of persons who employ people in employments of the description mentioned in paragraph (a), or

(ii)interests of people in employments of that description.

(3)For the purposes of subsection (2), if a person is in an employment of the description concerned by reason of holding an office (including an elective office) and is entitled to remuneration for holding it, the person responsible for paying the remuneration shall be taken to employ the office-holder.

(4)In the definition in subsection (1) of “occupational pension scheme”, the reference to a description includes a description framed by reference to an employment being of any of two or more kinds.

(5)In subsection (1) “pension scheme” (except in the phrases “occupational pension scheme”, “personal pension scheme” and “public service pension scheme”) means a scheme or other arrangements, comprised in one or more instruments or agreements, having or capable of having effect so as to provide benefits to or in respect of people—

(a)on retirement,

(b)on having reached a particular age, or

(c)on termination of service in an employment.]

Textual Amendments

F1S. 1 renumbered as s. 1(1) (1.7.2005 for specified purposes, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 216(2) (with art. 285(5)); S.R. 2005/321, art. 2(7)(a)(b)(i)(ii)

F2Words in s. 1(1) substituted (1.7.2005 for specified purposes, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 216(3) (with art. 285(5)); S.R. 2005/321, art. 2(7)(a)(b)(i)(ii)

F4Words in s. 1(1) repealed (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 20 paras. 23(2), 24(1), Sch. 27 Pt. 3(2)

F5S. 1(2)-(5) inserted (1.7.2005 for specified purposes, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), arts. 1(2), 216(4) (with art. 285(5)); S.R. 2005/321, art. 2(7)(a)(b)(i)(ii)

Part IIN.I. Administration

Registration of schemesN.I.

F62 Registration of occupational and personal pension schemes.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Part IIIN.I.F7 [F8Schemes that were contracted-out etc.] and Effects on Members’ State Scheme Rights ...

Textual Amendments

F7Words in Pt. 3 heading omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 3(b)

Modifications etc. (not altering text)

C1Pt. 3: power to modify conferred (1.6.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 146(1); S.R. 1996/91, art. 2(f); S.R. 1997/192, art. 2

Pt. 3: power to transfer functions conferred (1.4.1999) by 1999 c. 2, s. 23(1)(2)(6); S.I. 1999/527, art. 2(b), Sch. 2

Chapter IN.I. [F9Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc.]

Textual Amendments

F9Pt. 3 Ch. 1 heading substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 4

PreliminaryN.I.

3 Issue of contracting-out F10... certificates.N.I.

[F11[F12(1)Regulations shall provide for HMRC to issue certificates stating that the employment of an earner in employed earner's employment is contracted-out employment by reference to an occupational pension scheme.]

[F12(1A)In this Act such a certificate is referred to as “a contracting-out certificate”.]

(2)The regulations shall provide for contracting-out certificates to be issued to employers and to specify—

(a)the employments which are to be treated, either generally or in relation to any specified description of earners, as contracted-out employments; and

(b)the occupational pension schemes by reference to which those employments are to be so treated.

[F13(2A)The regulations may provide, in the case of contracting-out certificates issued before the principal appointed day, for their cancellation by virtue of the regulations—

(a)at the end of a prescribed period beginning with (and including) that day, or

(b)if prescribed conditions are not satisfied at any time in that period.

but for them to continue to have effect until so cancelled; and the regulations may provide that a certificate having effect on and after that day by virtue of this subsection is to have effect, in relation to any earner’s service on or after that day, as if issued on or after that day.

(2B)In this Act “the principal appointed day” means the day designated by an order under Article 1 of the Pensions (Northern Ireland) Order 1995 as the principal appointed day for the purposes of Part IV of that Order.]

(3)An occupational pension scheme is a contracted-out scheme in relation to an earner’s employment if it is for the time being specified in a contracting-out certificate in relation to that employment; and references in this Act to the contracting-out of a scheme are references to its inclusion in such a certificate.

F14(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)Except in prescribed circumstances, no contracting-out certificate F15... shall have effect from a date earlier than that on which the certificate is issued.

[F16(8)References in this Act to a contracting-out certificate, a contracted-out scheme and to contracting-out in a context relating to a money purchase contracted-out scheme are to be construed in accordance with section 176A.]]

Textual Amendments

F11S. 3 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 5 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

F13S. 3(2A)(2B) inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 133(1); S.R. 1996/91, art. 2(d)(h), Sch. Pt. IV

[F173AMeaning of the first abolition date” and the second abolition date”N.I.

In this Act—

  • “the first abolition date” means 6 April 2012 (the date appointed for the commencement of section 13(1) of the Pensions Act (Northern Ireland) 2008 (abolition of contracting-out for defined contribution pension schemes));

  • “the second abolition date” means 6 April 2016 (the date on which section 53(3) of the Pensions Act (Northern Ireland) 2015 provides for the commencement of section 24(1) of that Act (abolition of contracting-out for salary related schemes)).

Textual Amendments

3BMeaning of “contracted-out scheme” and “appropriate scheme” etc.N.I.

(1)This section applies for the interpretation of this Act.

(2)An occupational pension scheme was “contracted-out” at a time if, at that time, there was in force a certificate under section 3 (as it then had effect) stating that the employment of an earner in employed earner's employment was contracted-out employment by reference to the scheme.

(3)“Contracting-out certificate” means a certificate of the kind mentioned in subsection (2).

(4)An occupational pension scheme was a “salary related contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 5(2) (as it then had effect).

(5)An occupational pension scheme was a “money purchase contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 5(3) (as it then had effect).

(6)A personal pension scheme was an “appropriate scheme” at a time if, at that time, there was in force a certificate issued under section 3(1)(b) (as it then had effect) stating that the scheme was an appropriate scheme.

(7)“Appropriate scheme certificate” means a certificate of the kind mentioned in subsection (6).

(8)An appropriate scheme certificate that was in force in relation to a scheme is to be taken as conclusive that the scheme was, at that time, an appropriate scheme.]

Textual Amendments

4 Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”.N.I.

[F18(1)In relation to any period before the second abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to the earner during that period if—

(a)the earner was under pensionable age;

(b)the earner's service in the employment was service which qualified the earner for a pension provided by a salary related contracted-out scheme; and

(c)there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.]

[F19(1A)In addition, in relation to any period before [F20the first abolition date], the employment of an earner in employed earner's employment was “contracted-out employment” in relation to him during that period if—

(a)he was under pensionable age;

(b)his employer made minimum payments in respect of his employment to a money purchase contracted-out scheme, and

(c)there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.]

[F21(1B)In the following provisions of this Act “earner”, in relation to a scheme, means a person who was an earner in contracted-out employment by reference to the scheme.]

(2)In this Act—

  • “guaranteed minimum pension” means any pension which is provided [F22, by a scheme that was a salary related contracted-out scheme,] in accordance with the requirements of sections 9 and 13 to the extent to which its weekly rate is equal to the earner’s or, as the case may be, the earner’s [F23widow's, widower’s [F24, surviving same sex spouse’s] or surviving civil partner's] guaranteed minimum as determined for the purposes of those sections respectively; and

  • “minimum payment”, in relation to an earner’s employment in any tax week, means the rebate percentage of so much of the earnings paid to or for the benefit of the earner in that week as exceeds the current lower earnings limit but not [F25the applicable limit] (or the prescribed equivalents if he is paid otherwise than weekly);

[F26and for the purposes of this subsection “rebate percentage” means the appropriate flatrate percentage [F27for the tax year in which the week falls as specified in an order made under section 38B (as it had effect before [F28the first abolition date])]].

[F29(2A)In subsection (2) “the applicable limit” means—

(a)in relation to a tax year before 2009–10, the upper earnings limit;

(b)in relation to 2009–10 or any subsequent tax year, the upper accrual point.]

F30(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F31(4)A contracting-out certificate that was in force in respect of an employed earner's employment is to be taken as conclusive that the employment was, at that time, contracted-out employment.]

[F32(5)Regulations shall provide for the determination by the [F33Department] of any question whether an employment is to be treated as contracted-out employment or as to the persons in relation to whom, or the period for which, an employment is to be so treated.]

Textual Amendments

F20Words in s. 4(1A) substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 2

F28Words in s. 4(2) substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 2

F33Words in s. 4 substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 paras. 13, 14(a) Table; S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C3S. 4(2) modified (6.4.1997) by S.R. 1996/509, reg. 6(2)

[F34General requirements for certification]N.I.

Textual Amendments

F34S. 5 cross-heading repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 8 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

5 Requirements for certification of schemes: general.N.I.

[F35(1)Subject to subsection (4), an occupational pension scheme can be contracted-out in relation to an earner’s employment only if it satisfies subsection (2) F36....

[F37(2)An occupational pension scheme satisfies this subsection only if—

(a)in relation to any earner’s service before the principal appointed day, it satisfies the conditions of subsection (2A); and

(b)in relation to any earner’s service on or after that day, it satisfies the conditions of subsection (2B).

(2A)The conditions of this subsection are that—

(a)the scheme complies in all respects with [F38sections 9 to 20E] or, in such cases or classes of case as may be prescribed, with those sections as modified by regulations; and

(b)the rules of the scheme applying to guaranteed minimum pensions are framed so as to comply with the relevant requirements.

(2B)The conditions of this subsection are that the [F39Inland Revenue][F40are satisfied] that—

(a)the scheme complies with section 8A;

(b)restrictions imposed under Article 40 of the Pensions (Northern Ireland) Order 1995 (restriction on employer-related investments) apply to the scheme and the scheme complies with those restrictions;

(c)the scheme satisfies such other requirements as may be prescribed (which—

(i)must include requirements as to the amount of the resources of the scheme, and

(ii)may include a requirement that, if the only members of the scheme were those falling within any prescribed class or description, the scheme would comply with section 8A), and

(d)the scheme does not fall within a prescribed class or description;

and [F40are satisfied] that the rules of the scheme are framed so as to comply with the relevant requirements.

(2C)Regulations may modify subsection (2B)(a) and (b) in their application to occupational pension schemes falling within a prescribed class or description.]

F41(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Where there are two or more occupational pension schemes in force in relation to an earner’s employment, none of which can by itself be a contracted-out scheme, the [F42Inland Revenue may, if they think] fit, treat them for contracting-out purposes as a single scheme.

F43(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5A)Regulations about pension schemes made under this Chapter may contain provisions framed by reference to whether or not a scheme [F44is a registered pension scheme under section 153 of the Finance Act 2004].

(6)In this section “relevant requirements” means—

(a)the requirements of any regulations prescribing the form and content of rules of contracted-out F45... schemes; and

(b)such other requirements as to form and content (not inconsistent with regulations) as may be imposed by the [F46Department] as a condition of contracting-out F47... either generally or in relation to a particular scheme.]

Textual Amendments

F35S. 5 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 9 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

F37S. 5(2)-(2C) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) for s. 5(2) by S.I. 1995/3213 (N.I. 22) art. 133(3); S.R. 1996/91, art. 2(d)(h), Sch. Pt. IV

F38Words in s. 5(2A) substituted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(4), 21(1); S.R. 2009/75, art. 2(a)(b)

F39Word in s. 5(2B) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 38(2)(a); S.R. 1999/149, art. 2(c), Sch. 2

F40Words in s. 5(2B) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 38(2)(b); S.R. 1999/149, art. 2(c), Sch. 2

F42Words in s. 5(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 38(4); S.R. 1999/149, art. 2(c), Sch. 2

F44Words in s. 5(5A) substituted for s. 5(5A)(a)(b) (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 8(2)

F46Words in s. 5(6)(b) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 paras. 13, 14 Table; S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C4S. 5 excluded (1.6.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22) art. 146(1); S.R. 1996/91, art. 2(f); S.R. 1997/192, art. 2

F486 Protected rights and money purchase benefits.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

7 Elections as to employments covered by contracting-out certificates.N.I.

[F49(1)Subject to the provisions of this Part, an employment otherwise satisfying the conditions for inclusion in a contracting-out certificate shall be so included if and so long as the employer so elects and not otherwise.

(2)Subject to subsections (3) and (4), an election may be so made, and an employment so included, either generally or in relation only to a particular description of earners.

(3)Except in such cases as may be prescribed, an employer shall not, in making or abstaining from making any election under this section, discriminate between different earners on any grounds other than the nature of their employment.

(4)If the [F50Inland Revenue consider] that an employer is contravening subsection (3) in relation to any scheme, [F51they may]—

(a)refuse to give effect to any election made by him in relation to that scheme; or

(b)cancel any contracting-out certificate held by him in respect of it.

(5)Regulations may make provision—

(a)for regulating the manner in which an employer is to make an election with a view to the issue, variation or surrender of a contracting-out certificate;

(b)for requiring an employer to give a notice of his intentions in respect of making or abstaining from making any such election in relation to any existing or proposed scheme—

(i)to employees in any employment to which the scheme applies or to which it is proposed that it should apply;

(ii)to any independent trade union recognised to any extent for the purpose of collective bargaining in relation to those employees;

(iii)to the trustees and managers of the scheme; and

(iv)to such other persons as may be prescribed;

(c)for requiring an employer, in connection with any such notice, to furnish such information as may be prescribed and to undertake such consultations as may be prescribed with any such trade union as is mentioned in paragraph (b)(ii);

(d)for empowering the [F52Inland Revenue] to refuse to give effect to an election made by an employer unless [F53they are] satisfied that he has complied with the requirements of the regulations;

(e)for referring to an industrial tribunal any question—

(i)whether an organisation is such a trade union as is mentioned in paragraph (b)(ii), or

(ii)whether the requirements of the regulations as to consultation have been complied with.]

Textual Amendments

F49S. 7 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 9 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

F50Words in s. 7(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 40(2)(a); S.R. 1999/149, art. 2(c), Sch. 2

F51Words in s. 7(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 40(2)(b); S.R. 1999/149, art. 2(c), Sch. 2

F52Words in s. 7(5)(d) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 40(3); S.R. 1999/149, art. 2(c), Sch. 2

F53Words in s. 7(5)(d) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 40(3); S.R. 1999/149, art. 2(c), Sch. 2

F548 Determination of basis on which scheme is contracted-out.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F55 Requirements for certification of occupational pension schemes applying from the principal appointed day]N.I.

Textual Amendments

F55S. 8A cross-heading repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 10 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2) and with further savings in art. 2(3))

[F568A The statutory standard.N.I.

[F57(1)Subject to the provisions of this Part, the scheme must, in relation to the provision of pensions for earners in employed earner’s employment, and for their [F58widows, widowers or surviving civil partners], satisfy the statutory standard.

(2)Subject to regulations made by virtue of section 5(2B)(c)(ii), in applying this section regard must only be had to—

(a)earners in employed earner’s employment, or

(b)their [F59widows, widowers or surviving civil partners],

collectively, and the pensions to be provided for persons falling within paragraph (a) or (b) must be considered as a whole.

(3)For the purposes of this section, a scheme satisfies the statutory standard if the pensions to be provided for such persons are broadly equivalent to, or better than, the pensions which would be provided for such persons under a reference scheme.

(4)Regulations may provided for the manner of, and criteria for, determining whether the pensions to be provided for such persons under a scheme are broadly equivalent to, or better than, the pensions which would be provided for such persons under a reference scheme.

(5)Regulations made by virtue of subsection (4) may provide for the determination to be made in accordance with guidance prepared by a prescribed body F60....

(6)The pensions to be provided for such persons under a scheme are to be treated as broadly equivalent to or better than the pensions which would be provided for such persons under a reference scheme if and only if an actuary (who, except in prescribed circumstances, must be the actuary appointed for the scheme in pursuance of Article 47 of the Pensions (Northern Ireland) Order 1995) so certifies.]]

Textual Amendments

F56Ss. 8A-8D inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 133(5); S.R. 1996/91, arts. 2(d)(h), Sch. Pt. IV

F57Ss. 8A-8D repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 11 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2) and with further savings in art. 2(3))

[F618B Reference scheme.N.I.

[F57(1)This section applies for the purposes of section 8A.

(2)A reference scheme is an occupational pension scheme which—

(a)complies with each of subsections (3) and (4), and

(b)complies with any prescribed requirements.

(3)In relation to earners employed in employed earner’s employment, a reference scheme is one which provides—

(a)for them to be entitled to a pension under the scheme commencing at a normal pension age of 65 and continuing for life, and

(b)for the annual rate of the pension at that age to be—

(i)1/80th of average qualifying earning in the last three tax years preceding the end of service,

multiplied by

(ii)the number of years service, not exceeding such number as would produce an annual rate equal to half the earnings on which it is calculated.

(4)In relation to [F62widows, widowers or surviving civil partners], a reference scheme is one which provides—

(a)for the [F62widows, widowers or surviving civil partners] of earners employed in employed earner’s employment (whether the earners die before or after attaining the age of 65) to be entitled, except in prescribed circumstances, to pensions under the scheme; and

[F63(b)for entitlements to those pensions to commence on the day following the death of the earners, and

(c)except in prescribed circumstances, for the annual rate of those pensions to be—

(i)if the earners die on or after their normal pension age, 50 per cent. of the annual rate which a reference scheme was required to provide to the deceased earners immediately before their death, or

(ii)if the earners die before their normal pension age, 50 per cent. of the annual rate of pension which a reference scheme would have been required to provide to the deceased earners if the date of their death had been their normal pension age, and

(d)if those pensions are payable in respect of earners who die—

(i)otherwise than in pensionable service under the scheme, and

(ii)before their own entitlements to pensions under the scheme have commenced,

for those pensions to be revalued in accordance with section 80 as though they were such benefits as are mentioned in section 79(1)(a).]

(5)For the purposes of this section, an earner’s qualifying earnings in any tax year are 90 per cent. of the amount by which the earner’s earnings—

(a)exceed the qualifying earnings factor for that year; and

(b)do not exceed [F64the applicable limit].

(6)Regulations may modify subsections (2) to (5).

(7)In this section—

  • [F65“the applicable limit” means—

    (a)

    in relation to a tax year before [F662009–10], the upper earnings limit for the year multiplied by 53;

    (b)

    in relation to [F662009–10] or any subsequent tax year, the upper accrual point [F67multiplied by 53];]

  • “normal pension age”, in relation to a scheme, means the age specified in the scheme as the earliest age at which pension becomes payable under the scheme (apart from any special provision as to early retirement on grounds of ill-health or otherwise),

  • “qualifying earnings factor”, in relation to a tax year, has the meaning given by section 121(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, and

  • “upper earnings limit”, in relation to a tax year, means the amount specified for that year by regulations made by virtue of section 5(3) of that Act as the upper earnings limit for Class 1 contributions.]]

Textual Amendments

F57Ss. 8A-8D repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 11 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2) and with further savings in art. 2(3))

F61Ss. 8A-8D inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 133(5); S.R. 1996/91, arts. 2(d)(h), Sch. Pt. IV

F63S. 8B(4)(b)-(d) substituted (6.4.1997) for s. 8B(4)(b) by S.R. 1997/162, reg. 2

F64Words in s. 8B(5)(b) substituted (11.2.2008) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 33(a)

F65Words in s. 8B(7) inserted (11.2.2008) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 33(b)

F66Words in s. 8B(7) substituted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 7 para. 9(a) (with s. 73)

[F688C Transfer, commutation, etc.N.I.

[F57(1)Regulations may prohibit or restrict—

(a)the transfer of any liability—

(i)for the payment of pensions under a relevant scheme, or

(ii)in respect of accrued rights to such pensions,

(b)the discharge of any liability to provide pensions under a relevant scheme, or

(c)the payment of a lump sum instead of a pension payable under a relevant scheme,

except in prescribed circumstances or on prescribed conditions.

(2)In this section, “relevant scheme” means a scheme contracted out by virtue of section 5(2B) and references to pensions and accrued rights under the scheme are to such pensions and rights so far as attributable to an earner’s service on or after the principal appointed day.

(3)Regulations under subsection (1) may provide that any provision of this Part shall have effect subject to such modifications as may be specified in the regulations.]]

Textual Amendments

F57Ss. 8A-8D repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 11 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2) and with further savings in art. 2(3))

F68Ss. 8A-8D inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 133(5); S.R. 1996/91, arts. 2(d)(h), Sch. Pt. IV

Modifications etc. (not altering text)

[F698D Entitlement to benefit.N.I.

[F57In the case of a scheme contracted out by virtue of section 5(2B), regulations may make provision as to the ages by reference to which benefits under the scheme are to be paid.]]

Textual Amendments

F57Ss. 8A-8D repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 11 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2) and with further savings in art. 2(3))

F69Ss. 8A-8D inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (NI 22), art. 133(5); S.R. 1996/91, arts. 2(d)(h), Sch. Pt. IV; S.R. 1997/192, at. 2(b)

[F70Guaranteed minimum pensions]N.I.

Textual Amendments

F70S. 9 cross-heading substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 12

[F718EFormer salary related contracted-out schemes to comply with GMP requirementsN.I.

(1)A scheme that was a salary related contracted-out scheme is to be treated as including whatever provision it needs to contain to comply with the GMP requirements.

(2)A scheme complies with the GMP requirements if, in relation to any earner's service before the principal appointed day, it complies in all respects with sections 9 to 20E.

(3)Where—

(a)a scheme is permitted by any of those sections to include provision subject to certain requirements, and

(b)the scheme includes the provision but not the requirements,

the scheme is to be treated by subsection (1) as including the requirements.

(4)This section overrides any provision of a scheme to the extent that the provision of the scheme conflicts with it.]

Textual Amendments

9 Minimum pensions for earners.N.I.

(1)Subject to the provisions of this Part, the scheme must—

(a)provide for the earner to be entitled to a pension under the scheme if he attains pensionable age; and

(b)contain a rule to the effect that the weekly rate of the pension will be not less than his guaranteed minimum (if any) under sections 10 to 12.

[F72(1A)But a scheme may be amended so as to omit provision of the kind specified in subsection (1)(a) and (b) if the conditions specified in section 20B are satisfied.]

(2)In the case of an earner who [F73was a married woman or widow who was liable] to pay primary Class 1 contributions at a reduced rate by virtue of section 19(4) of the M1Social Security Contributions and Benefits (Northern Ireland) Act 1992 [F74at a time during a relevant year when she was in contracted-out employment by reference to the scheme], subject to the provisions of this Part, the scheme must—

(a)provide for her to be entitled to a pension under the scheme if she attains pensionable age F75. . .

(b)satisfy such other conditions as may be prescribed.

[F76“Relevant year” has the meaning given by section 10(8).]

(3)Subject to subsection (4), the scheme must provide for the pension to commence on the date on which the earner attains pensionable age and to continue for his life.

(4)Subject to subsection (5), the scheme may provide for the commencement of the earner’s guaranteed minimum pension to be postponed for any period for which he continues in employment after attaining pensionable age.

(5)The scheme must provide for the earner’s consent to be required—

(a)for any such postponement by virtue of employment to which the scheme does not relate; and

(b)for any such postponement after the expiration of five years from the date on which he attains pensionable age.

(6)Equivalent pension benefits for the purposes of the former legislation are not to be regarded as constituting any part of the earner’s guaranteed minimum pension.

(7)The benefits referred to in subsection (6) are any to which the earner may be immediately or prospectively entitled in respect of a period of employment which—

(a)was for him non-participating employment under that legislation; and

(b)was not on its termination the subject of any payment in lieu of contributions;

but subsection (6) excludes only so much of those benefits as had to be provided in order that the employment should for that period be treated as non-participating.

(8)In this section “the former legislation” means Part III of the M2National Insurance Act (Northern Ireland) 1966 and the previous corresponding enactments.

Textual Amendments

F72S. 9(1A) inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(1), 21(1); S.R. 2009/75, art. 2(a)(b)

Marginal Citations

10 Earner’s guaranteed minimum.N.I.

[F77(1)An earner has a guaranteed minimum in relation to the pension provided by a scheme that was a salary related contracted-out scheme if in any tax week in a relevant year—

(a)earnings were paid to or for the earner's benefit in respect of employment which was contracted-out by reference to the scheme; and

(b)those earnings were in excess of the lower earnings limit for that tax week (or the prescribed equivalent if the earner was paid otherwise than weekly).]

(2)Subject to section 11(1), the guaranteed minimum shall be the weekly equivalent of an amount equal to the appropriate percentage of the total of the earner’s earnings factors for the relevant years, so far as derived from [F78excess earnings mentioned in subsection (1)(b)] upon which primary Class 1 contributions have been paid or treated as paid.

[F79(2A)Where any liability of a scheme in respect of an earner’s guaranteed minimum pension ceases by virtue of a civil recovery order, his guaranteed minimum in relation to the scheme is extinguished or reduced accordingly.]

F80(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Where the amount of a person’s earnings for any period is relevant for any purpose of subsection (1) or (2) and the [F81Inland Revenue are] satisfied that records of those earnings have not been maintained or retained or are otherwise unobtainable, [F82they] may for that purpose—

(a)compute, in such manner as [F82they][F83think] fit, an amount which shall be regarded as the amount of those earnings; or

(b)take their amount to be such sum as [F82they] may specify in the particular case.

(5)In subsection (2) the “appropriate percentage” means—

(a)in respect of the earner’s earnings factors for any tax year not later than the tax year 1987-88—

(i)if the earner was not more than 20 years under pensionable age on 6th April 1978, 1.25 per cent.;

(ii)in any other case 25/N per cent.;

(b)in respect of the earner’s earnings factors for the tax year 1988-89 and for subsequent tax years—

(i)if the earner was not more than 20 years under pensionable age on 6th April 1978, 1 per cent.;

(ii)in any other case 20/N per cent.;

where N is the number of years in the earner’s working life (assuming he will attain pensionable age) which fall after 5th April 1978.

(6)Regulations may prescribe rules as to the circumstances in which earnings factors are derived from earnings for the purposes of subsection (2).

(7)For the purposes of subsection (2) the weekly equivalent of the amount there mentioned shall be calculated by dividing that amount by 52.

(8)In this section “relevant year” means any tax year in the earner’s working life (not being earlier than the tax year 1978-79 [F84or later than tax year ending immediately before the principal appointed day]).

Textual Amendments

F79S. 10(2A) inserted (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 11 para. 23(3); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

F80S. 10(3) repealed (6.4.1997) by of S.I. 1995/3213 (N.I. 22) arts. 147, 168, Sch. 3 para. 20(a), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F81Words in s. 10(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 41(a); S.R. 1999/149, art. 2(c), Sch. 2

F82Words in s. 10(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 41(b); S.R. 1999/149, art. 2(c), Sch. 2

F83Words in s. 10(4)(a) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 41(c); S.R. 1999/149, art. 2(c), Sch. 2

F84Words in s. 10(8) inserted (6.4.1997) by S.I. 1995/3213 (N.I. 22) art. 147, Sch. 3 para. 20(b); S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C6S. 10 applied (1.11.1995) by S.R. 1995/389, arts. 4(1)(3)

C7S. 10(1) modified (6.4.1997) by S.R. 1996/509, reg. 6(4)

C8S. 10(2) modified (1.4.2006) by The Firefighters Pension Scheme Order (Northern Ireland) 2007 (S.R. 2007/144), Scheme, art. 79(2)(b)

11 Increase of guaranteed minimum where commencement of guaranteed minimum pension postponed.N.I.

(1)Where in accordance with section 9(4) the commencement of an earner’s guaranteed minimum pension is postponed for any period and there are at least seven complete weeks in that period, his guaranteed minimum in relation to the scheme shall, for each complete week in that period, be increased by one-seventh per cent.—

(a)of the amount of that minimum apart from this subsection; or

(b)if for that week (or a period which includes that week) a pension is paid to him under the scheme at a weekly rate less than that minimum, of the difference between that pension and that minimum.

(2)In subsection (1) “week” means any period of seven consecutive days.

(3)Where an earner’s guaranteed minimum pension is increased under subsection (1), the increase of that part of it which is attributable to earnings factors for the tax year 1987-88 and earlier tax years shall be calculated separately from the increase of the rest.

(4)Where one or more orders have come into operation under section 105 during the period for which the commencement of a guaranteed minimum pension is postponed, the amount of the guaranteed minimum pension for any week in that period shall be determined as if the order or orders had come into operation before the beginning of the period.

Modifications etc. (not altering text)

C11S. 11 applied (1.11.1995) by S.R. 1995/389, art. 4(1)(3)

C12S. 11 applied (with effect in accordance with reg. 1 of the amending S.R.) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 66(5) (with regs. 134, 258)

C13S. 11(1) sums amended (with effect in accordance with arts. 1(2)(3)(a), 7 of the amending S.R.) by The Social Security Benefits Up-rating Order (Northern Ireland) 2020 (S.R. 2020/40), arts. 1(1)(c), 5(2)

C14S. 11(1): sums amended (with effect in accordance with arts. 1(2)(3), 7 of the amending S.R.) by The Social Security Benefits Up-rating Order (Northern Ireland) 2021 (S.R. 2021/82), arts. 1(1)(c), 5(2)

[F8511A Reduction of guaranteed minimum in consequence of pension debit.N.I.

(1)Where—

(a)an earner has a guaranteed minimum in relation to the pension provided by a scheme, and

(b)his right to the pension becomes subject to a pension debit,

his guaranteed minimum in relation to the scheme is, subject to subsection (2), reduced by the appropriate percentage.

(2)Where the earner is in pensionable service under the scheme on the day on which the order or provision on which the pension debit depends takes effect, his guaranteed minimum in relation to the scheme is reduced by an amount equal to the appropriate percentage of the corresponding qualifying benefit.

(3)For the purposes of subsection (2), the corresponding qualifying benefit is the guaranteed minimum taken for the purpose of calculating the cash equivalent by reference to which the amount of the pension debit is determined.

(4)For the purposes of this section, the appropriate percentage is—

(a)if the order or provision on which the pension debit depends specifies the percentage value to be transferred, that percentage;

(b)if the order or provision on which the pension debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of paragraph (1) of Article 26 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (lesser of specified amount and cash equivalent of transferor’s benefits) represents of the amount mentioned in paragraph (3)(b) of that Article (cash equivalent of transferor’s benefits).]

Textual Amendments

F85S. 11A inserted (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 29(3); S.R. 2000/133, art. 2(3), Sch. Pt. IV

Modifications etc. (not altering text)

12 Revaluation of earnings factors for purposes of s. 10: early leavers, etc.N.I.

(1)Subject to subsection (2), for the purpose of section 10(2) the earner’s earnings factor for any relevant year (so far as derived as mentioned in that section) shall be taken to be that factor as increased by the same percentage as that prescribed for the increase of that factor by the last order under Article 23 of the M3Social Security Pensions (Northern Ireland) Order 1975 or section 130 of the M4Social Security Administration (Northern Ireland) Act 1992 to come into operation before the end of the final relevant year.

(2)[F86The scheme may provide that the earnings factors of an earner whose service in contracted-out employment by reference to the scheme is terminated before the final relevant year shall be determined for the purposes of section 10(2) by reference to the last such order to come into operation before the end of the tax year in which that service ends (“the last service tax year”).]

[F86The scheme may provide that in a case where—

(a)an earner was, before the second abolition date, in contracted-out employment by reference to a scheme, and

(b)the earner ceases to be in pensionable service under the scheme before the final relevant year,

the earnings factors for that person shall be determined for the purposes of section 10(2) by reference to the last such order to come into operation before the end of the tax year in which the earner ceases to be in pensionable service under the scheme (“the last service tax year”).]

(3)Where a scheme provides as mentioned in subsection (2) the scheme shall provide for the weekly equivalent mentioned in section 10(2) to be increased by at least [F87the prescribed percentage for each relevant year after the last service tax year; and the provisions included by virtue of this subsection may also conform with such additional requirements as may be prescribed]

(4)Except in such cases or classes of case as may be prescribed, the provision made by virtue of subsections (2) and (3) must be the same for all members of the scheme.

(5)In this section—

[F88“relevant year” means any tax year in the earner’s working life,]

[F89“final relevant year” means the last tax year in the earner’s working life.]

Textual Amendments

F86S. 12(2) substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 16 (with savings in S.R. 2016/106, arts. 1(1), 2(4))

F87Words in s. 12(3) substituted (6.4.1996 for certain purposes only otherwise 6.4.1997) by S.I. 1995/3213 (NI 22), art. 147, Sch. 3 para. 21(a); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F88S. 12(5): Definition of “relevant year” substituted (1.12.1999 for certain purposes and otherwise 25.4.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 3 (with transitional provisions in art. 75(1)); S.R. 2000/133, art. 2(3), Sch. Pt. II

F89Definition of “final relevant year” in s. 12(5) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 21(b); S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C21S. 12(1) modified (6.4.1997) by S.R. 1996/509, reg. 6(5)

C22S. 12(1)(5) applied (1.11.1995) by S.R. 1995/389, arts. 4(1)(3)

C23S. 12(1) applied (with modifications) by S.R. 1996/618, reg. 13B(3) (as inserted (6.4.2016) by The Occupational Pension Schemes (Schemes that were Contracted-out) Regulations (Northern Ireland) 2016 (S.R. 2016/107), regs. 1(a), 22(4))

C25S. 12(3) modified (28.3.1997) by S.R. 1997/192, art. 3 (with art. 9)

Marginal Citations

13 Minimum pensions for widows and widowers.N.I.

(1)Subject to the provisions of this Part, the scheme must provide that if the earner dies leaving a [F90widow, widower or surviving civil partner] (whether before or after attaining pensionable age), the [F90widow, widower or surviving civil partner] will be entitled to a guaranteed minimum pension under the scheme.

[F91(1A)But a scheme may be amended so as to omit provision of the kind specified in subsection (1) if the conditions specified in section 20B are satisfied.]

(2)The scheme must contain a rule to the effect that—

(a)if the earner is a man [F92, or a woman in a relevant gender change case,] who has a guaranteed minimum under section 10, the weekly rate of the widow’s pension will be not less than the widow’s guaranteed minimum;

(b)if the earner is a woman who has a guaranteed minimum under that section, the weekly rate of the widower’s pension will be not less than the widower’s guaranteed minimum.

[F93(ba)if the earner is a man, or a woman in a relevant gender change case, who has a guaranteed minimum under that section, the weekly rate of the surviving civil partner’s pension in the case of a surviving civil partner who is a woman will be not less than the widow’s guaranteed minimum;]

[F94(c)[F95subject to paragraph (ba),] if the earner is a person who has a guaranteed minimum under that section, the weekly rate of the surviving civil partner’s pension will not be less than the surviving civil partner’s guaranteed minimum.]

[F96(d)if the earner is a man who has a guaranteed minimum under that section, the weekly rate of the widower’s pension will not be less than the surviving same sex spouse’s guaranteed minimum;

(e)if the earner is a woman (other than in a relevant gender change case) who has a guaranteed minimum under that section, the weekly rate of the widow’s pension will not be less than the surviving same sex spouse’s guaranteed minimum.]

(3)The widow’s guaranteed minimum shall be half that of the earner.

(4)The widower’s [F97or surviving civil partner's] [F98or surviving same sex spouse’s] guaranteed minimum shall be one-half of that part of the earner’s guaranteed minimum which is attributable to earnings factors for the tax year 1988-89 and subsequent tax years.

[F99(4A)[F100Subject to subsection (4B)] The scheme must provide for the [F101widow's, widower’s or surviving civil partner's] pension to be payable to the [F102widow, widower or surviving civil partner]—

(a)for any period for which a Category B retirement pension is payable to the [F102widow, widower or surviving civil partner] by virtue of the earner’s contributions or would be so payable but for section 43(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (persons entitled to more than one retirement pension);

[F103(aa)for life, in a case where—

(i)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date, and

(ii)the earner died on or after the date on which the widow, widower or surviving civil partner attained state pension age;

(ab)for any period after the widow, widower or surviving civil partner has attained state pension age, in a case where—

(i)the earner died before the widow, widower or surviving civil partner attained state pension age,

(ii)the widow, widower or surviving civil partner did not marry or form a civil partnership after the death and before attaining state pension age, and

(iii)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date;]

(b)for any period for which widowed parent’s allowance or bereavement allowance is payable to the [F102widow, widower or surviving civil partner] by virtue of the earner’s contributions; and

(c)in the case of a [F102widow, widower or surviving civil partner] whose entitlement by virtue of the earner’s contributions to a widowed parent’s allowance or bereavement allowance has come to an end at a time after the [F102widow, widower or surviving civil partner] attained the age of 45, for so much of the period beginning with the time when the entitlement came to an end as neither—

[F104[F105(i)comprises a period during which—

(a)the widow, widower or surviving civil partner, and

(b)another person,

are living together as if spouses of each other, nor]

(ii)falls after the time of any—

(a)marriage, or

(b)formation of a civil partnership,

by the widow or widower or surviving civil partner which takes place after the earner’s death.]]

[F106(4B)Sub-paragraphs (i)(b) and (ii)(b) of subsection (4A)(c) do not apply where the earner dies before 5th December 2005.]

(5)[F107In the case of a woman who is the widow of a man,] the scheme [F108must also make provision] for the widow’s pension to be payable to her for any period for which a F109. . . widowed mother’s allowance or widow’s pension is payable to her by virtue of the earner’s contributions F109. . ..

(6)[F110In any other case,] the scheme [F111must also make provision] for the [F112widower’s [F113, widow’s] or surviving civil partner’s pension to be payable] in the prescribed circumstances and for the prescribed period.

(7)The trustees or managers of the scheme shall supply to the [F114Inland Revenue] any such information as [F115the Inland Revenue] may require relating to the payment of pensions under the scheme to [F116widows, widowers or surviving civil partners].

[F117(8)Where—

(a)a lump sum is paid to an earner under provisions included in a scheme by virtue of section 17(1), and

(b)those provisions are of a prescribed description,

the earner shall be treated for the purposes of this section as having any guaranteed minimum under section 10 that he would have had but for that payment.]

F118(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F119(10)For the purposes of subsection (4A)(aa) and (ab) a person attains state pension age when he or she attains pensionable age within the meaning given by the rules in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995.]

[F120(11)This section is subject to regulations under section 34A.

(12)In relation to an earner who is a woman, a reference in this section to a relevant gender change case is a reference to a case where—

(a)the earner is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage of the earner and her widow [F121, or the civil partnership between the earner and her surviving civil partner,] (that ends with the earner’s death) subsisted before the time when the certificate was issued.]

Textual Amendments

F91S. 13(1A) inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(2), 21(1); S.R. 2009/75, art. 2(a)(b)

F108Words in s. 13(5) substituted (1.1.2001) by 2000 c. 4 (N.I.), s. 52, Sch. 5 para. 1(2)(a) (with s. 66(6)); S.R. 2000/374, art. 2(S. 13(2)(3)(4) applied (1.11.1995) by S.R. 1995/389, art. 5(1)

c), Sch. Pt. II

F111Words in s. 13(6) substituted (1.1.2001) by 2000 c. 4 (N.I.), s. 52, Sch. 5 para. 1(3) (with s. 66(6)); S.R. 2000/374, art. 2(c), Sch. Pt. II

F114Words in s. 13(7) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 42; S.R. 1999/149, art. 2(c), Sch. 2

F115Words in s. 13(7) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 42; S.R. 1999/149, art. 2(c), Sch. 2

F117S. 13(8) added (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), arts. 1(2), 261(2) (with art. 285(5)); S.R. 2005/321, art. 2(15), Sch. Pt. 2

Modifications etc. (not altering text)

C27S. 13(3)(4) applied (with effect in accordance with reg. 1(2) of the amending Regulations) by The Police Pension (Northern Ireland) Regulations 2009 (S.R. 2009/79), regs. 1(2), 40(7) (with reg. 4)

14 Treatment of insignificant amounts.N.I.

(1)Where an amount is required to be calculated in accordance with the provisions of section 10(7), 11(1) or 13(2), (3) or (4) and, apart from this subsection, the amount so calculated is less than 0.5p, then, notwithstanding any other provision of this Act, that amount shall be taken to be zero, and other amounts so calculated shall be rounded to the nearest whole penny, taking 0.5p as nearest to the next whole penny above.

(2)Where a guaranteed minimum pension is attributable in part to earnings factors for the period before the tax year 1988-89 and in part to earnings factors for that tax year or for that tax year and subsequent tax years, the pension shall be calculated by—

(a)applying subsection (1) separately to the amount attributable to the period before the tax year 1988-89 and to the amount attributable to that and subsequent tax years, and

(b)aggregating the two amounts so calculated.

Modifications etc. (not altering text)

C28S. 14 applied (1.11.1995) by S.R. 1995/389, art. 4(1)

15 Discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts.N.I.

(1)A transaction to which this section applies discharges the trustees or managers of an occupational pension scheme from their liability to provide for or in respect of any person guaranteed minimum pensions—

(a)if it is carried out not earlier than the time when that person’s pensionable service terminates; and

(b)if and to the extent that it results in guaranteed minimum pensions for or in respect of that person being appropriately secured; and

(c)if and to the extent that the requirements set out in paragraph (a), (b) or (c) of subsection (5) are satisfied.

(2)This section applies to the following transactions—

(a)the taking out of a policy of insurance or a number of such policies;

(b)the entry into an annuity contract or a number of such contracts;

(c)the transfer of the benefit of such a policy or policies or such a contract or contracts.

(3)In this section “appropriately secured” means secured by an appropriate policy of insurance or an appropriate annuity contract, or by more than one such policy or contract.

(4)A policy of insurance or annuity contract is appropriate for the purposes of this section if—

(a)the [F122insurer] with which it is or was taken out or entered into—

(i)is, or was at the relevant time, carrying on F123. . . long-term insurance business in the United Kingdom F124...; and

(ii)satisfies, or at the relevant time satisfied, prescribed requirements; and

(b)it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed; and

(c)it contains or is endorsed with terms whose effect is that the amount secured by it may not be commuted except on conditions which satisfy such requirements as may be prescribed; and

(d)it satisfies such other requirements as may be prescribed.

(5)The requirements referred to in subsection (1) are—

(a)that the arrangement for securing the amount by means of the policy or contract was made—

(i)at the written request of the earner or, if the earner has died, of the earner’s [F125widow, widower or surviving civil partner]; or

(ii)with the consent of the earner or the [F125widow, widower or surviving civil partner] given in writing in a prescribed form;

(b)that—

(i)the case is one such as is mentioned in section 92(2); and

(ii)the policy or contract only secures guaranteed minimum pensions;

(c)that—

(i)the case is not one such as is mentioned in section 92(2); and

(ii)such conditions as may be prescribed are satisfied.

(6)In subsection (4)(a), “the relevant time” means the time when the policy of insurance was taken out or the annuity contract was entered into or, as the case may be, when the benefit of the policy or contract was transferred.

F126(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F122Words in s. 15(4)(a) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 129(2)(a)

F123Word in s. 15(4)(a)(i) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 129(2)(b)

F126S. 15(7) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 129(3)

Modifications etc. (not altering text)

16 Transfer of accrued rights.N.I.

(1)Regulations may prescribe circumstances in which and conditions subject to which—

(a)a transfer of or a transfer payment in respect of—

(i)an earner’s accrued rights to guaranteed minimum pensions under a [F127scheme that was a] contracted-out scheme;

(ii)an earner’s accrued rights to pensions under an occupational pension scheme F128... to the extent that those rights derive from his accrued rights to guaranteed minimum pensions under a [F129scheme that was a] contracted-out scheme; or

(iii)the liability for the payment of guaranteed minimum pensions to or in respect of any person who has become entitled to them,

may be made by an occupational pension scheme to another such scheme [F130, to a personal pension scheme or to an overseas arrangement];

(b)a transfer of or a transfer payment in respect of an earner’s accrued rights to guaranteed minimum pensions which are appropriately secured for the purposes of section 15 may be made to an occupational pension scheme [F131, a personal pension scheme or an overseas arrangement].

(2)Any such regulations may be made so as to apply to earners who are not in employment at the time of the transfer.

(3)Regulations under subsection (1) may provide that any provision of this Part (other than sections 14, 15 and 39 to 41, F132... so far as they apply to personal pension schemes) or of Chapter III of Part IV or Chapter II of Part V shall have effect, where there has been a transfer to which they apply, subject to such modifications as may be specified in the regulations.

(4)Regulations under subsection (1) shall have effect in relation to transfers whenever made unless they provide that they are only to have effect in relation to transfers which take place after they come into operation.

(5)The power conferred by subsection (1) is without prejudice to the generality of section 177(2) or section 17(5) of the M5Interpretation Act (Northern Ireland) 1954.

(6)In the provisions mentioned in subsection (3) “accrued rights”, in relation to an earner, means the rights conferring prospective entitlement under the scheme in question to the pensions to be provided for the earner and the earner’s [F133widow, widower or surviving civil partner] in accordance with sections 9 and 13, and references to an earner’s accrued rights to guaranteed minimum pensions shall be construed accordingly.

Textual Amendments

F127Words in s. 16(1)(a)(i) inserted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 18(a)

F128Words in s. 16(1)(a)(ii) omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 18(b)(i)

F130Words in s. 16(1)(a) substituted (1.1.2001) by 2000 c. 4 (N.I.), s. 52, Sch. 5 para. 2(1)(a) (with s. 66(6)); S.R. 2000/374, art. 2(c), Sch. Pt. II

F131Words in s. 16(1)(b) substituted (1.1.2001) by 2000 c. 4 (N.I.), s. 52, Sch. 5 para. 2(1)(b) (with s. 66(6)); S.R. 2000/374, art. 2(c), Sch. Pt. II

Modifications etc. (not altering text)

Marginal Citations

17 Commutation, surrender and forfeiture.N.I.

(1)[F134A scheme may, in such circumstances and subject to such restrictions and conditions as may be prescribed, provide for the payment of a lump sum instead of a pension required to be provided by the scheme in accordance with section 9 or 13.]

(2)Neither section 9 nor section 13 shall preclude a scheme from providing for the earner’s or the earner’s [F135widow's, widower’s or surviving civil partner's] guaranteed minimum pension to be suspended or forfeited in such circumstances as may be prescribed.

Textual Amendments

F134S. 17(1) substituted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), arts. 1(2), 261(1) (with art. 285(5)); S.R. 2005/321, art. 2(15), Sch. Pt. 2

F13618. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

19 Securing of benefits.N.I.

F137(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)Subject to subsection (3), the scheme must contain a rule by which any liabilities of the scheme in respect of—

(a)guaranteed minimum pensions and accrued rights to guaranteed minimum pensions;

(b)any such benefits as are excluded by section 9(6) from earners’ guaranteed minimum pensions;

(c)pensions and other benefits (whether or not within paragraph (a) or (b)) in respect of which entitlement to payment has already arisen; and

F138(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

are accorded priority on a winding up over other liabilities under the scheme in respect of benefits attributable to any period of service after the rule has taken effect.

(3)The rule may also accord priority, on a winding up occurring after an earner has attained normal pension age, to liabilities of the scheme in respect of pensions and other benefits to which—

(a)he will be entitled on ceasing to be in employment, or

(b)the earner’s [F139widow, widower or surviving civil partner] or any dependant of the earner’s will be entitled on the earner’s death.

(4)Subsections [F140(2) and (3)] do not apply to public service pension schemes.

F137(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Subsections (2) and (3) do not apply to schemes falling within any category or description prescribed as being exempt from the requirements of those subsections.

(7)If the scheme provides for the payment out of any sum representing the surrender value of a policy of insurance taken out for the purposes of the scheme, it must make provision so that there may be no payment out in relation to guaranteed minimum pensions except in such circumstances as may be prescribed.

Textual Amendments

F138S. 19(2)(d) omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 19

F140Words in s. 19(4) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 24(b); S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C31S. 19(2)(3) excluded (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 24; S.R. 1997/192, art. 2(b)

F14120

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F14220AConversion of guaranteed minimum pension into other benefits: introductionN.I.

[F143(1)]In this section and sections 20B to 20H—

(a)the rules specified in sections 9(1)(a) and (b) and 13(1) are referred to as the “guaranteed minimum pension rules”,

(b)“GMP conversion” means amendment of the scheme in relation to an earner so that it no longer contains the guaranteed minimum pension rules,

(c)a “GMP-converted scheme” is a scheme which has been subject to GMP conversion,

(d)“the conversion date” means the date on which that amendment takes effect,

(e)“the pre-conversion benefits” means the benefits provided under the scheme immediately before the conversion date (disregarding money purchase benefits),

(f)“the post-conversion benefits” means the benefits which are provided under the converted scheme (disregarding money purchase benefits),

(g)“the converted scheme” means the scheme as it has effect immediately after conversion, and

(h)“the trustees” in relation to a scheme means the trustees, managers or other persons responsible under the scheme for effecting amendments of it.

[F144(2)The Department must give such guidance (if any) as it thinks appropriate about GMP conversion.]

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

F143S. 20A(1): s. 20A renumbered as s. 20A(1) (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 20(a)

20BThe conversion conditionsN.I.

(1)This section specifies the conditions referred to in sections 9(1A) and 13(1A) (for exemption from the requirement to guarantee a minimum pension).

(2)Condition 1 is that the post-conversion benefits must be actuarially at least equivalent to the pre-conversion benefits.

(3)Condition 2 is that if the earner was entitled immediately before the conversion date to the payment of a pension under the scheme, the converted scheme does not provide for a reduction of, or have the effect of reducing, the amount of that pension immediately after conversion.

(4)Condition 3 is that the post-conversion benefits must not include money purchase benefits, apart from any money purchase benefits provided under the scheme immediately before the conversion date.

(5)Condition 4 is that the converted scheme provides survivors' benefits in accordance with section 20D in such circumstances, and during such periods, as are prescribed by regulations.

(6)Condition 5 is that the procedural requirements of section 20E have been complied with.

(7)In applying these conditions to a scheme in respect of an earner—

(a)it is immaterial whether or not on the conversion date the scheme was also converted in respect of other earners, and

(b)it is immaterial (except for Condition 2) whether or not on the conversion date the earner was entitled to the payment of a pension under the scheme.

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

20CActuarial equivalenceN.I.

Regulations may make provision for determining actuarial equivalence for the purpose of Condition 1 of section 20B.

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

20DSurvivors' benefitsN.I.

(1)This section specifies the benefits mentioned in Condition 4 of section 20B.

(2)The first benefit is that if the earner [F145is a man married to a woman or a woman married to a woman in a relevant gender change case, and the earner] dies (whether before or after attaining normal pension age) leaving a widow, she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period—

(a)beginning with 6th April 1978, and

(b)ending with 5th April 1997.

(3)The second benefit is that if the earner [F146is a married woman (other than in a relevant gender change case), a man married to a man, or [F147(subject to subsection (3A))] a civil partner, and the earner] dies (whether before or after attaining normal pension age) leaving a widower [F148, widow] or surviving civil partner, he or she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period—

(a)beginning with 6th April 1988, and

(b)ending with 5th April 1997.

[F149(3A)The third benefit is that if the earner is a man, or a woman in a relevant gender change case, who is a civil partner and the earner dies (whether before or after attaining normal pension age) leaving a surviving civil partner who is a woman, she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period—

(a)beginning with 6th April 1978, and

(b)ending with 5th April 1997.]

[F150(4)In relation to an earner who is a woman, a reference in this section to a relevant gender change case is a reference to a case where—

(a)the earner is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage of the earner and her widow [F151, or the civil partnership between the earner and her surviving civil partner,] (that ends with the earner’s death) subsisted before the time when the certificate was issued.

(5)This section is subject to regulations under section 34A.]

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

20EProcedural requirementsN.I.

(1)This section specifies the procedural requirements that must be complied with in order to satisfy Condition 5 of section 20B.

(2)The employer in relation to the scheme must consent to the GMP conversion in advance.

(3)The trustees must take all reasonable steps to—

(a)consult the earner in advance, and

(b)notify all members, and survivors, affected by the GMP conversion before, or as soon as is reasonably practicable after, the conversion date.

(4)The Commissioners for Her Majesty's Revenue and Customs must be notified on or before the conversion date—

(a)that the GMP conversion will occur or has occurred, and

(b)that it affects the earner.

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

20FTransfer outN.I.

(1)Regulations may prescribe—

(a)restrictions on the transfer of the earner's accrued rights under a GMP-converted scheme;

(b)conditions which must be complied with on the transfer of the earner's accrued rights under a GMP-converted scheme.

(2)Section 16(2) and (5) shall apply to regulations under this section.

(3)Where a member of a non-GMP-converted scheme makes an application under section 91(1), the trustees may with his consent adjust any F152... cash equivalent so as to reflect rights that would have accrued if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B.

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

F152Word in s. 20F(3) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 51 (with s. 87)

20GPowers to amend schemesN.I.

(1)The trustees of an occupational pension scheme may by resolution modify it so as to effect GMP conversion (whether in relation to present earners, pensioners or survivors) in accordance with the conditions of section 20B.

(2)The subsisting rights provisions within the meaning of Article 67 of the Pensions (Northern Ireland) Order 1995 shall not apply to a power conferred by an occupational pension scheme to modify the scheme in so far as the power enables GMP conversion in accordance with the conditions of section 20B.

(3)Where a scheme is amended to effect GMP conversion the trustees may include other amendments which they think are necessary or desirable as a consequence of, or to facilitate, the GMP conversion.

(4)Where an occupational pension scheme is being wound up, the trustees may, before the winding up is completed, adjust rights under the scheme so as to reflect what would have happened if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B.

(5)In the application of section 20E by virtue of subsection (1) above, a reference to the earner includes a reference to a pensioner or survivor whose pension is subjected to GMP conversion.

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

20HEnforcement of GMP conversion conditionsN.I.

(1)If the Regulatory Authority thinks that the conditions of section 20B have not been satisfied in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G, the Regulatory Authority may make an order declaring the amendment, modification or adjustment void—

(a)in respect of a specified person or class of person,

(b)to a specified extent, and

(c)as from a specified time.

(2)Where the Regulatory Authority makes an order under subsection (1) it may—

(a)require the trustees of the scheme concerned to take specified steps;

(b)declare that specified action of the trustees shall not be treated as a contravention of the scheme if it would not have been a contravention if the order under subsection (1) had not been made.

(3)An order may be made under subsection (1) before or after the amendment, modification or adjustment takes effect.

(4)If the Regulatory Authority thinks that the process of effecting a GMP conversion of a scheme has been commenced and that a relevant condition of section 20B is not being complied with, or may not be complied with, the Regulatory Authority may by order—

(a)prohibit the taking of further steps in the GMP conversion (whether generally or in relation to specified steps), and

(b)require the trustees of the scheme to take specified steps before resuming the process of GMP conversion.

(5)Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) shall apply to a trustee who has failed to take all reasonable steps to secure compliance with the conditions of section 20B in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G.]

Textual Amendments

F142Ss. 20A-20H inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(3), 21(1); S.R. 2009/75, art. 2(a)(b)

Discretionary requirementsN.I.

21 Power for Board to impose conditions as to investments and resources.N.I.

F153(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F154(2)A [F155scheme that was a] salary related contracted-out scheme must, in relation to any earner’s service before the principal appointed day, comply with any requirements prescribed for the purpose of securing that—

(a)the [F156Inland Revenue are] kept informed about any matters affecting the security of the minimum pensions guaranteed under the scheme, and

(b)the resources of the scheme are brought to and are maintained at a level satisfactory to the [F157Inland Revenue].]

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F154S. 21(2) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 26(b); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F156Words in s. 21(2)(a) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 43(a); S.R. 1999/149, art. 2(c), Sch. 2

F157Words in s. 21(2)(b) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 43(b); S.R. 1999/149, art. 2(c), Sch. 2

Requirements for certification of occupational and personal money purchase schemesN.I.

F15822 Persons who may establish scheme.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F15923 Identification and valuation of protected rights.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16024 Ways of giving effect to protected rights.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16024A Requirements for interim arrangements.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16024B Information about interim arrangements.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16025 The pension and annuity requirements.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16126 Securing of liability for protected rights.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16227 Investment and resources of schemes.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16328 Suspension or forfeiture.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16428A Discharge of protected rights on winding up: insurance policies.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16629 Tax requirements to prevail over [F165requirements of section 27].N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16729A Appropriate schemes: “Blowing the whistle”.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Cancellation, variation, surrender and refusal of certificatesN.I.

30 Cancellation, variation, surrender and refusal of certificates.N.I.

[F168[F169(1)Regulations shall provide for the cancellation, variation or surrender of a contracting-out certificate, or the issue of a new certificate—

(a)on any change of circumstances affecting the treatment of an employment as contracted-out employment; or

(b)where the certificate was issued on or after the principal appointed day, if any employer of persons in the description of employment to which the scheme in question relates, or the actuary of the scheme, fails to provide HMRC, at prescribed intervals, with such documents as may be prescribed for the purpose of verifying that the conditions of section 5(2B) are satisfied.]

(2)Regulations may enable the [F170Inland Revenue] to cancel or vary a contracting-out certificate where—

(a)[F171they have] reason to suppose that any employment to which it relates ought not to be treated as contracted-out employment in accordance with the certificate; and

(b)the employer does not show that it ought to be so treated.

(3)Where [F172by or by virtue of any provision of this Part the contracting-out of a scheme in relation to an employment depends on the satisfaction of a particular condition,] the continued contracting-out of the scheme F173... shall be dependent on continued satisfaction of the condition; and if the condition ceases to be satisfied, that shall be a ground (without prejudice to any other) for the cancellation or variation of the contracting-out F174... certificate.

(4)A contracting-out certificate in respect of any employment may be withheld or cancelled by the [F170Inland Revenue] if [F175they consider] that there are circumstances which make it inexpedient that the employment should be or, as the case may be, continue to be, contracted-out employment by reference to the scheme, notwithstanding that the relevant scheme is one that [F176they] would otherwise treat as proper to be contracted-out in relation to all earners in that employment.

F177(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F178(6)Without prejudice to their powers apart from this subsection, the [F170Inland Revenue] may withhold or cancel a contracting-out certificate in respect of a scheme if they consider that the rules of the scheme are such that persons over particular ages may be prevented from participating in the scheme.]

[F179(7)Without prejudice to the preceding provisions of this section, failure of a scheme to comply with any requirements prescribed by virtue of section 21(2) shall be a ground on which the [F170Inland Revenue] may, in respect of any employment to which the scheme relates, cancel a contracting-out certificate.]

(8)Except in prescribed circumstances, no cancellation, variation or surrender of a contracting-out certificate F180...shall have effect from a date earlier than that on which the cancellation, variation or surrender is made.

[F181(9)A reference in this section to a contracting-out certificate does not include a reference to a contracting-out certificate issued in respect of a money purchase contracted-out scheme.]]

Textual Amendments

F168Ss. 30-32 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 22 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

F170Words in s. 30(1)(a)(ii)(2)(4)-(7) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 48(2); S.R. 1999/149, art. 2(c), Sch. 2

F171Words in s. 30(2)(a) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 48(3); S.R. 1999/149, art. 2(c), Sch. 2

F175Words in s. 30(4)(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 48(4); S.R. 1999/149, art. 2(c), Sch. 2

F176Words in s. 30(4)(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 48(4); S.R. 1999/149, art. 2(c), Sch. 2

F179S. 30(7) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 30(c); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

31 Surrender and cancellation of contracting-out certificates: issue of further certificates.N.I.

[F168(1)This section applies in any case where—

(a)a contracting-out certificate (“the first certificate”) has been surrendered by an employer or cancelled by the Board; and

(b)at any time before the end of the period of 12 months beginning with the date of the surrender or cancellation, that or any connected employer makes an election under section 7 in respect of any employment which was specified by virtue of section 3(2)(a) in the first certificate, with a view to the issue of a further contracting-out certificate.

(2)This section applies whether or not the scheme specified in the first certificate in relation to the employment concerned is the same as the scheme which would be specified in the further certificate if it were issued.

(3)The Board shall not give effect to the election referred to in subsection (1) by issuing a further certificate unless they consider that, in all the circumstances of the case, it would be reasonable to do so.

(4)Regulations may make such supplemental provision in relation to cases falling within this section as the Department considers necessary or expedient.

(5)For the purposes of subsection (1)—

(a)an employment (“the second employment”) in respect of which an election of the kind referred to in subsection (1)(b) has been made; and

(b)an employment (“the first employment”) which was specified by virtue of section 3(2)(a) in the first certificate,

shall be treated as one employment if, in the opinion of the Board—

(i)they are substantially the same, however described; or

(ii)the first employment falls wholly or partly within the description of the second employment or the second employment falls wholly or partly within the description of the first employment.

(6)Regulations shall prescribe the cases in which employers are to be treated as connected for the purposes of this section.]

Textual Amendments

F168Ss. 30-32 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 22 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

32 Surrender and cancellation of contracting-out certificates: cancellation of further certificates.N.I.

[F168(1)This section applies in any case where—

(a)a contracting-out certificate (“the first certificate”) has been surrendered by an employer or cancelled by the Board;

(b)a further contracting-out certificate (“the further certificate”) has been issued, after the surrender or cancellation of the first certificate but before the end of the period of 12 months beginning with the date of the surrender or cancellation, in respect of any employment which was specified by virtue of section 3(2)(a) in the first certificate; and

(c)the Board have formed the opinion that had they been aware of all the circumstances of the case at the time when the further certificate was issued they would have been prevented by section 31(3) from issuing it.

(2)This section applies whether or not the scheme specified in the first certificate in relation to the employment concerned is the same as the scheme specified in the further certificate.

(3)The Board may, before the end of the period of 12 months beginning with the date on which the further certificate was issued, cancel that certificate.

(4)Where a contracting-out certificate is cancelled under subsection (3) the provisions of this Act and of any regulations and orders made under it shall have effect as if the certificate had never been issued.

(5)Regulations may make such supplemental provision in relation to cases falling within this section as the Department considers necessary or expedient.

(6)Without prejudice to subsection (5), regulations may make provision, in relation to any case in which the Board have cancelled a contracting-out certificate under subsection (3), preventing the recovery by the employer concerned (whether by deduction from emoluments or otherwise) of such arrears which he is required to pay to the Department in respect of an earner’s liability under section 6(3) of the M6Social Security Contributions and Benefits (Northern Ireland) Act 1992 as may be prescribed.

(7)For the purposes of subsection (1)—

(a)an employment (“the second employment”) in respect of which a further contracting-out certificate of the kind referred to in subsection (1)(b) has been issued; and

(b)an employment (“the first employment”) which was specified by virtue of section 3(2)(a) in the first certificate,

shall be treated as one employment if, in the opinion of the Board—

(i)they are substantially the same, however described; or

(ii)the first employment falls wholly or partly within the description of the second employment or the second employment falls wholly or partly within the description of the first employment.]

Textual Amendments

F168Ss. 30-32 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 22 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

Marginal Citations

Alteration of [F182rules by former salary related contracted-out schemes] N.I.

Textual Amendments

F182Words in s. 33 cross-heading substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 23

[F18333 Alteration of rules of contracted-out schemes.N.I.

(1)Except in prescribed cases, the rules of a scheme that was a salary related contracted-out scheme cannot be altered unless the alteration is of a prescribed description.

(2)Regulations made by virtue of subsection (1) may operate so as to validate with retrospective effect any alteration of the rules which would otherwise be void under this section.

(3)Subsection (1) does not apply to a scheme if no person is entitled to receive, or has accrued rights to, any benefits under the scheme attributable to a period when the scheme was contracted-out.]

[F184(4)The reference in subsection (3) to a person entitled to receive benefits under a scheme includes a person who is so entitled by virtue of a qualifying relationship only in such cases as may be prescribed.

(5)For that purpose a person is entitled to receive benefits by virtue of a qualifying relationship if the person is so entitled by virtue of being—

(a)the widower of a female earner;

(b)the widower of a male earner;

(c)the widow of a female earner, except where it is a relevant gender change case; or

(d)the survivor of a civil partnership with an earner [F185, except for a surviving civil partner who is a woman in the case of an earner to whom subsection (5A) applies].

[F186(5A)This subsection applies to an earner who is—

(a)a man, or

(b)a woman in a relevant gender change case.]

(6)[F187A reference in subsection (5)(c) or (d) or (5A)] to a relevant gender change case is a reference to a case where—

(a)the earner is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage of the earner and her widow [F188, or the civil partnership between the earner and her surviving civil partner,] (that ends with the earner’s death) subsisted before the time when the certificate was issued.

(7)This section is subject to regulations under section 34A.]

Textual Amendments

F183S. 33(1)-(3) substituted (14.9.2015 for specified purposes, 6.4.2016 in so far as not already in force) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 24; S.R. 2015/329, art. 2(1)(b)

[F18933ATransfer of liabilities etc.: schemes contracted-out on or after 6 April 1997N.I.

(1)Regulations may prohibit or restrict—

(a)the transfer of any liability—

(i)for the payment of pensions under a relevant scheme, or

(ii)in respect of accrued rights to such pensions,

(b)the discharge of any liability to provide pensions under a relevant scheme, or

(c)the payment of a lump sum instead of a pension payable under a relevant scheme,

except in prescribed circumstances or on prescribed conditions.

(2)In this section “relevant scheme” means a scheme that was a salary related contracted-out scheme by virtue of section 5(2B) and references to pensions and accrued rights under the scheme are to such pensions and rights so far as attributable to an earner's service on or after the principal appointed day (including, in a case where there has been a transfer payment, any pensions or rights deriving (directly or indirectly) from—

(a)an earner's service on or after the principal appointed day in employment that was contracted-out employment by reference to another scheme, or

(b)in a case where the transfer payment was made before the first abolition date, protected rights under another occupational pension scheme or under a personal pension scheme which derive from payments or contributions in respect of employment on or after the principal appointed day).

(3)Regulations under subsection (1) may provide that any provision of this Part shall have effect subject to such modifications as may be specified in the regulations.]

Textual Amendments

F189S. 33A inserted (14.9.2015 for specified purposes, 6.4.2016 in so far as not already in force) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 25; S.R. 2015/329, art. 2(1)(b)

F19034 Alteration of rules of appropriate schemes.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

General regulations as to administration of Part IIIN.I.

[F19134A.Regulations about relevant gender change casesN.I.

(1)The Department may, by regulations, make provision for—

(a)section 13,

(b)section 20D, or

(c)section 33,

to have its special effect in relevant gender change cases only if conditions prescribed in the regulations are met.

(2)Regulations under subsection (1) may, in particular, prescribe conditions that relate to the provision of information by—

(a)one or both of the members of married same sex couples [F192or civil partnerships where the civil partners are of the same sex], or

(b)the survivors of such couples [F193or civil partners].

(3)The Department may by regulations make further provision about cases where (because of regulations under subsection (1))—

(a)section 13,

(b)section 20D, or

(c)section 33,

does not have its special effect in relevant gender change cases.

(4)Regulations under subsection (3) may, in particular, provide for the section in question to have its ordinary effect in relevant gender change cases.

(5)Regulations under subsection (1) or (3) may, in particular, modify or disapply any enactment that concerns information relating to—

(a)the gender or sex of a person, or

(b)the change of gender or sex of a person,

including any enactment that concerns requests for, or disclosure of, such information.

(6)In this section, in relation to section 13, 20D or 33—

(a)“relevant gender change case” has the same meaning as in that section;

(b)“special effect” means the effect which the section has (if regulations under subsection (1) are ignored) in relation to relevant gender change cases, so far as that effect is different from the section’s ordinary effect;

(c)“ordinary effect” means the effect which the section has in relation to same sex married couples [F194, or civil partners who are of the same sex,] in cases that are not relevant gender change cases.]

Textual Amendments

35 General power to make regulations.N.I.

Schedule 1 shall have effect for enabling regulations to be made in relation to the operation and administration of this Part, and Part I of that Schedule has effect as respects occupational pension schemes, F195... .

Textual Amendments

Chapter IIN.I. [F196Reduction in social security benefits for members of schemes that were contracted-out]

Textual Amendments

PreliminaryN.I.

36 Scope of Chapter II.N.I.

This Chapter has effect for the purpose—

F197(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)of providing for contributions to be paid by the [F198Inland Revenue] in respect of earners who are members of [F199 money purchase contracted-out schemes and members of] appropriate personal pension schemes; and

(c)of making provision concerning the payment of certain social security benefits payable in respect of members and former members of [F200schemes that were contracted-out pension schemes].

Textual Amendments

F198Words in s. 36(b) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 49; S.R. 1999/149, art. 2(c), Sch. 2

F199Words in s. 36 inserted (14.3.1996 for certain purposes and 6.4.1996 for other purposes and otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(1); S.R. 1996/91, art. 2(a)(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

[F201[F202 Reduced rates of contributions for members of salary related contracted-out schemes]]N.I.

Textual Amendments

F201S. 37 cross-heading repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 28 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

F202S. 37(1)(1A), the sidenote and the preceding cross-heading substituted (14.3.1996 for certain purposes, 6.4.1996 for other specified purposes and otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(2); S.R. 1996/91, art. 2(a)(d), Sch. Pts. I IV; S.R. 1997/192, art. 2(b)

37[F203 Reduced rates of Class 1 contributions.]N.I.

[F204[F205(1)Subsections (1A) to [F206(1E)] apply where—

(a)the earnings paid to or for the benefit of an earner in any tax week are in respect of an employment which is contracted-out employment at the time of the payment; and

(b)the earner’s service in the employment is service which qualifies him for a pension provided by a salary related contracted-out scheme,

and in subsections (1A) and (1B) “the relevant part”, in relation to those earnings, means so much of those earnings as exceeds the current lower earnings limit but not [F207the upper accrual point] (or the prescribed equivalents if the earner is paid otherwise than weekly).

F208(1ZA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F209(1A)The amount of any primary Class 1 contribution [F210attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)] in respect of the earnings shall be reduced by an amount equal to [F2111.4 per cent] of the relevant part of the earnings (“Amount R1”).

(1B)The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to [F2123.4 per cent] of the relevant part of the earnings (“Amount R2”).

(1C)The aggregate of Amounts R1 and R2 shall be set off—

(a)first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (1A) and (1B); and

(b)then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of any primary or secondary Class 1 contribution in respect of earnings—

(i)paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and

(ii)in relation to which the secondary contributor is such a contributor;

and in this subsection any reference to a liability to pay an amount in respect of a primary Class 1 contribution is a reference to such a liability under paragraph 3 of Schedule 1 to the M7Social Security Contributions and Benefits (Northern Ireland) Act 1992.]

(1D)If—

(a)any balance remains, and

(b)the secondary contributor makes an application for the purpose to the Inland Revenue,

the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed by regulations made by the Secretary of State, pay to the secondary contributor an amount equal to the remaining balance.

But such regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts.

(1E) If the Inland Revenue pay any amount under subsection (1D) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed by such regulations.]

(2)Where—

(a)an earner has ceased to be employed in an employment; and

(b)earnings are paid to him or for his benefit within the period of 6 weeks, or such other period as may be prescribed [F213by regulations made by the Secretary of State], from the day on which he so ceased,

that employment shall be treated for the purposes of subsection (1) as contracted-out employment at the time when the earnings are paid if it was contracted-out employment in relation to the earner when he was last employed in it.

(3)This section shall not affect the amount of any primary Class 1 contribution which is payable at a reduced rate by virtue of regulations under section 19(4) of the M8Social Security Contributions and Benefits (Northern Ireland) Act 1992 (reduced rates for married women and widows).]

Textual Amendments

F203S. 37(1)(1A), the sidenote and the preceding cross-heading substituted (14.3.1996 for certain purposes and 6.4.1996 for other specified purposes and otherwise 6.4.1997) for S. 37(1) by S.I. 1995/3213 (N.I. 22), art. 134(2); S.R. 1996/91, art. 2(a)(d), Sch. Pts. I IV; S.R. 1997/192, art. 2(b)

F204S. 37 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 29 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

F205S. 37(1)-(1C) substituted for s. 37(1)(1A) (6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 95; S.R. 1999/72, art. 2(b), Sch.

F206Word in s. 37(1) substituted (22.12.1999 for certain purposes and otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 6(2); S.I. 1999/3420, art. 2

F207Words in s. 37(1) substituted (with effect in accordance with Sch. 7 para. 10(4) of the amending Act) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 7 para. 10(2) (with s. 73)

F208S. 37(1ZA) repealed (with effect in accordance with Sch. 7 para. 10(4), Sch. 10 Pt. 6 Note 1(a) of the amending Act) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 7 para. 10(3), Sch. 10 Pt. 6 (with s. 73)

F209S. 37(1A)-(1E) substituted for s. 37(1A)-(1C) (22.12.1999 for certain purposes and otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 6(3); S.I. 1999/3420, art. 2

F210Words inserted (8.7.2002 with effect for 2003-2004 and subsequent tax yeras) by National Insurance Contributions Act 2002 (c. 19), s. 6, Sch. 1 para. 41

F213Words in s. 37(2)(b) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 50; S.R. 1999/149, art. 2(c), Sch. 2

Marginal Citations

F21438 Alteration of rates of contributions under s. 37.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F215 Reduced rates of contributions, and rebates, for members of money purchase contracted-out schemes]N.I.

Textual Amendments

F215S. 38A and the cross-heading inserted (14.3.1996 for certain purposes and 6.4.1996 for other specified purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(4); S.R. 1996/91, art. 2(a)(d), Sch. Pts. I IV; S.R. 1997/192, art. 2(b)

38A[F216 Reduced rates of Class 1 contributions and rebates.]N.I.

[F217(1)Subsections (2) to [F218(2D) and (3)] apply where—

(a)the earnings paid to or for the benefit of an earner in any tax week are in respect of an employment which is contracted-out employment at the time of the payment; and

(b)the earner’s service in the employment is service which qualifies him for a pension provided by a money purchase contracted-out scheme,

and in subsections (2) and (2A) “the relevant part”, in relation to those earnings, means so much of those earnings as exceeds the current lower earnings limit but not [F219the upper accrual point] (or the prescribed equivalents if the earner is paid otherwise than weekly).

[F220(2)The amount of any primary Class 1 contribution [F221attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992] in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings (“Amount R1”).

(2A)The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings (“Amount R2”).

(2B)The aggregate of Amounts R1 and R2 shall be set off—

(a)first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (2) and (2A); and

(b)then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of a primary or secondary Class 1 contribution in respect of earnings—

(i)paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and

(ii)in relation to which the secondary contributor is such a contributor;

and in this subsection any reference to a liability to pay an amount in respect of a primary Class 1 contribution is a reference to such a liability under paragraph 3 of Schedule 1 to the M9Social Security Contributions and Benefits (Northern Ireland) Act 1992.]

(2C)If—

(a)any balance remains, and

(b)the secondary contributor makes an application for the purpose to the Inland Revenue, the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed by regulations made by the Secretary of State, pay to the secondary contributor an amount equal to the remaining balance.

But such regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts.

(2D)If the Inland Revenue pay any amount under subsection (2C) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed by such regulations.]

(3)[F222Subject to subsection (5A),] The [F223Inland Revenue] shall, except in prescribed circumstances or in respect of prescribed periods, pay in respect of that earner and that tax week to the [F224earner] or, in prescribed circumstances, to a prescribed person, the amount by which—

(a)the appropriate age-related percentage of that part of those earnings,

exceeds

(b)the appropriate flat-rate percentage of that part of those earnings.

(4)Regulations [F225made by the Secretary of State] may make provisions—

(a)as to the manner in which and time at which or period within which payments under subsection (3) are to be made,

(b)for the adjustment of the amount which would otherwise be payable under that subsection so as to avoid the payment of trivial or fractional amounts,

(c)for earnings to be calculated or estimated in such manner and on such basis as may be prescribed for the purpose of determining whether any, and if so what, payments under subsection (3) are to be made.

(5)If the [F223Inland Revenue][F226pay] an amount under subsection (3) which [F227they][F228are] not required to pay or [F228are] not required to pay to the person to whom, or in respect of whom, the [F223Inland Revenue][F226pay] it, the [F223Inland Revenue] may recover it from any person to whom, or in respect of whom, the [F223Inland Revenue] paid it.

[F229(5A)Where a payment under subsection (3) is due in respect of an earner, HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment.]

(6)Where—

(a)an earner has ceased to be employed in an employment, and

(b)earnings are paid to him or for his benefit within the period of six weeks, or such other period as may be prescribed, from the day on which he so ceased,. that employment shall be treated for the purposes of this section as contracted-out employment at the time when the earnings are paid if it was contracted-out employment in relation to the earner when he was last employed in it

(7)Subsection (3) of section 37 applies for the purposes of this section as it applies for the purposes of that.

[F230(8)In subsections (3), (4) and (6) “prescribed” means prescribed by regulations made by the Secretary of State.]

[F231(9)For the purposes of this section “the appropriate age-related percentage” and “the appropriate flat-rate percentage”, in relation to a tax year beginning before [F232the first abolition date], are the percentages specified as such for that tax year in an order made under section 38B (as it had effect prior to that date).]

Textual Amendments

F216S. 38A inserted (14.3.1996 for certain purposes and 6.4.1996 for other purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(4); S.R. 1996/91, art. 2(a)(d), Sch. Pts. I IV; S.R. 1997/192, art. 2(b)

F217S. 38A(1)-(2B) substituted (6.4.1999) for s. 38A(1) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 78(1), Sch. 6 para. 96; S.R. 1999/72, art. 2(b) Sch.

F218Words in s. 38A(1) substituted (22.12.1999 for certain purposes and otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 7(2); S.I. 1999/3420, art. 2

F219Words in s. 38A(1) substituted (with effect in accordance with Sch. 7 para. 11(2) of the amending Act) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 7 para. 11(1) (with s. 73)

F220S. 38A(2)-(2D) substituted for s. 38A(2)-(2B) (22.12.1999 for certain purposes and otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 7(3); S.I. 1999/3420, art. 2

F223Words in s. 38A(3)(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 52(2)(4)(a); S.R. 1999/149, art. 2(c), Sch. 2

F225Words in s. 38A(4) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 52(3); S.R. 1999/149, art. 2(c), Sch. 2

F226Words in s. 38A(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 52(4)(b); S.R. 1999/149, art. 2(c), Sch. 2

F227Word in s. 38A(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 52(4)(b); S.R. 1999/149, art. 2(c), Sch. 2

F228Words in s. 38A(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 52(4)(b); S.R. 1999/149, art. 2(c), Sch. 2

F230S. 38A(8) added (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 52(5); S.R. 1999/149, art. 2(c), Sch. 2

F232Words in s. 38A(9) substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 2

Marginal Citations

F23338B Determination and alteration of rates of contributions, and rebates, applicable under section 38A.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Minimum contributions: members of appropriate personal pension schemesN.I.

39 Payment of minimum contributions to personal pension schemes.N.I.

(1)Subject to the following provisions of this Part, the [F234Inland Revenue] shall, except in such circumstances [F235or in respect of such periods] as may be prescribed, pay minimum contributions in respect of an employed earner for any period during which the earner—

(a)is over the age of 16 but has not attained pensionable age;

(b)is not a married woman or widow who has made an election which is still operative that [F236so much of her liability in respect of primary Class 1 contributions as is attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992] shall be a liability to contribute at a reduced rate; and

(c)is a member of an appropriate personal pension scheme which is for the time being the earner’s chosen scheme.

(2)Subject to subsection (3), minimum contributions in respect of an earner shall be paid to the [F237earner] .

(3)In such circumstances as may be prescribed minimum contributions shall be paid to a prescribed person.

(4)Where the condition mentioned in subsection (1)(a) or (c) ceases to be satisfied in the case of an earner in respect of whom the [F234Inland Revenue][F238are] required to pay minimum contributions, the duty of the [F234Inland Revenue] to pay them shall cease as from a date determined in accordance with regulations [F239made by the Secretary of State].

(5)If the [F234Inland Revenue][F240pay] an amount by way of minimum contributions which [F241they are] not required to pay, the [F234Inland Revenue] may recover it—

(a)from the person to whom the [F234Inland Revenue] paid it, or

(b)from any person in respect of whom the [F234Inland Revenue] paid it.

(6)If the [F234Inland Revenue][F240pay] in respect of an earner an amount by way of minimum contributions which the [F234Inland Revenue][F242are] required to pay, but [F243do] not pay it to the trustees or managers of the earner’s chosen scheme, the may recover it from the person to whom the [F234Inland Revenue] paid it or from the earner.

[F244(6A)Where a payment under subsection (1) is due in respect of an earner, HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment.]

[F245(7)In this section “prescribed” means prescribed by regulations made by the Secretary of State.]

[F246(8)In this section “the earner's chosen scheme” means the scheme which was immediately before [F247the first abolition date] the earner's chosen scheme in accordance with section 40 (as it had effect prior to that date).]

Textual Amendments

F234Words in s. 39(1)(4)(5)(6) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(2); S.R. 1999/149, art. 2(c), Sch. 2

F235Words in s. 39(1) inserted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 34; S.R. 1997/192, art. 2(b)

F236Words in s. 39(1)(b) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c.19), s. 6, Sch. 1 para. 43

F238Word in s. 39(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(3)(a); S.R. 1999/149, art. 2(c), Sch. 2

F239Words in s. 39(4) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(3)(b); S.R. 1999/149, art. 2(c), Sch. 2

F240Words in s. 39(5)(6) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(4)(5); S.R. 1999/149, art. 2(c), Sch. 2

F241Words in s. 39(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(4); S.R. 1999/149, art. 2(c), Sch. 2

F242Word in s. 39(6) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(5); S.R. 1999/149, art. 2(c), Sch. 2

F243Word in s. 39(6) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(5); S.R. 1999/149, art. 2(c), Sch. 2

F245S. 39(7) added (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 54(6); S.R. 1999/149, art. 2(c), Sch. 2

F247Words in s. 39(8) substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 2

F24840 Earner’s chosen scheme.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

41 Amount of minimum contributions.N.I.

[F249(1)In relation to any tax week falling within a period for which the [F250Inland Revenue are] required to pay minimum contributions in respect of an earner, the amount of those contributions shall be an amount equal to the appropriate age-related percentage of so much of the earnings paid in that week (other than earnings in respect of contracted-out employment) as exceeds the current lower earnings limit but not [F251the upper accrual point] (or the prescribed equivalents if he is paid otherwise than weekly).]

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)Regulations [F252made by the Secretary of State] may make provision—

(a)for earnings to be calculated or estimated in such manner and on such basis as may be prescribed for the purpose of determining whether any, and if so what, minimum contributions are payable in respect of them;

(b)for the adjustment of the amount which would otherwise be payable by way of minimum contributions so as to avoid the payment of trivial or fractional amounts;

(c)for the intervals at which, for the purposes of minimum contributions, payments of earnings are to be treated as made;

F253(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)for this section to have effect in prescribed cases as if for any reference to a tax week there were substituted a reference to a F254. . .

(f)as to the manner in which and time at which or period within which minimum contributions are to be made.

[F255(4)In subsection (3) “prescribed” means prescribed by regulations made by the Secretary of State.]

[F256(5)For the purposes of this section “the appropriate age-related percentage”, in relation to a tax year beginning before [F257the first abolition date], is the percentage (or percentages) specified as such for that tax year in an order made under section 41A (as it had effect prior to that date).]

Textual Amendments

F249S. 41(1) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 135(2); S.R. 1997/192, art. 2(b)

F250Words in s. 41(1) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 56(2); S.R. 1999/149, art. 2(c), Sch. 2

F251Words in s. 41(1) substituted (with effect in accordance with Sch. 7 para. 12(2) of the amending Act) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 7 para. 12(1) (with s. 73)

F252Words in s. 41(3) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 56(3); S.R. 1999/149, art. 2(c), Sch. 2

F254Words in s. 41(3)(e) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 135(4), 168, Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F255S. 41(4) added (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 56(4); S.R. 1999/149, art. 2(c), Sch. 2

F257Words in s. 41(5) substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 2

F25841A Alteration of rates of minimum contributions under section 41.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F260[F25941B] Money purchase and personal pension schemes: verification of agesN.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F259S. 41B inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 136; S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

Effect of entitlement to guaranteed minimum pensions on payment of social security benefitsN.I.

42 Effect of entitlement to guaranteed minimum pensions on payment of social security benefits.N.I.

(1)Where for any period a person is entitled both—

(a)to a Category A or Category B retirement pension, a widowed mother’s allowance [F261, a widowed parent’s allowance], [F262or a widow’s pension] under the M10Social Security Contributions and Benefits (Northern Ireland) Act 1992; and

(b)to one or more guaranteed minimum pensions,

the weekly rate of the benefit mentioned in paragraph (a) shall for that period be reduced by an amount equal—

[F263(i)to that part of its additional pension which is attributable to earnings factors for any tax years ending before the principal appointed day,]

(ii)to the weekly rate of the pension mentioned in paragraph (b) (or, if there is more than one such pension, their aggregate weekly rates),

whichever is the less.

F264(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F265(3)Where for any period—

(a)a person is entitled to one or more guaranteed minimum pensions; and

(b)he is also entitled to long-term incapacity benefit under section 30A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992,

for that period an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions shall be deducted from any increase payable under regulations under section 30B(7) of that Act and he shall be entitled to such an increase only if there is a balance after the deduction and, if there is such a balance, at a weekly rate equal to it.]

(4)Where for any period—

(a)a person is entitled to one or more guaranteed minimum pensions;

(b)he is also entitled to a Category A retirement pension under section 44 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; and

(c)the weekly rate of his pension includes an additional pension such as is mentioned in section 44(3)(b) of that Act,

for that period section 47 of that Act shall have effect as if the following subsection were substituted for subsection (3)—

“(3)In subsection (2) above “the relevant amount” means an amount equal to the aggregate of—

(a)the additional pension; and

(b)the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions,

reduced by the amount of any reduction in the weekly rate of the Category A retirement pension made by virtue of section 42(1) of the Pension Schemes (Northern Ireland) Act 1993.”.

(5)Where for any period—

(a)a person is entitled to one or more guaranteed minimum pensions;

(b)he is also entitled to a Category A retirement pension under section 44 of the M11Social Security Contributions and Benefits (Northern Ireland) Act 1992; and

(c)the weekly rate of his Category A retirement pension does not include an additional pension such as is mentioned in subsection (3)(b) of that section,

for that period the relevant amount shall be deducted from the amount that would otherwise be the increase under section 47(1) of that Act and the pensioner shall be entitled to an increase under that section only if there is a balance remaining after that deduction and, if there is such a balance, of an amount equal to it.

(6)Where for any period—

(a)a person is entitled to one or more guaranteed minimum pensions;

(b)he is also entitled—

F266(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)to a Category A retirement pension under section 44 of that Act; or

(iii)to a Category B retirement pension under [F267section 48A [F268, 48B or 48BB]] of that Act; and

(c)the weekly rate of the pension includes an additional pension such as is mentioned in section 44(3)(b) of that Act,

for that period paragraph 3 of Schedule 7 to that Act shall have effect as if the following sub-paragraph were substituted for sub-paragraph (3)—

“(3)In this paragraph “the relevant amount” means an amount equal to the aggregate of—

(a)the additional pension; and

(b)the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions,

reduced by the amount of any reduction in the weekly rate of the pension made by virtue of section 42(1) of the Pension Schemes (Northern Ireland) Act 1993.”.

(7)Where for any period—

(a)a person is entitled to one or more guaranteed minimum pensions;

(b)he is also entitled to any of the pensions under the Social Security Contributions and Benefits (Northern Ireland) Act 1992 mentioned in subsection (6)(b); and

(c)the weekly rate of the pension does not include an additional pension such as is mentioned in section 44(3)(b) of that Act,

for that period the relevant amount shall be deducted from the amount that would otherwise be the increase under paragraph 3 of Schedule 7 to that Act and the beneficiary shall be entitled to an increase only if there is a balance after that deduction and, if there is such a balance, only to an amount equal to it.

(8)In this section “the relevant amount” means an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions—

F269(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)in the case of subsection (5), reduced by the amount of any reduction in the weekly rate of the Category A retirement pension made by virtue of subsection (1);

and references in this section to the weekly rate of a guaranteed minimum pension are references to that rate without any increase under section 11(1).

F270(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F271(10)In this section a reference to “additional pension” does not include any amount of additional pension attributable to units of additional pension.

(11)For units of additional pension, see section 14A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.]

Textual Amendments

F261Words in s. 42(1) inserted (24.4.2000 for certain purposes, otherwise 9.4.2001) by S.I. 1999/3147 (N.I. 11), arts. 1(2), 67, Sch. 8 Pt. I para. 17(2) (with transitional provisions in art. 75(5)); S.R. 2000/133, art. 2(3), Sch. Pt. I

F262Words in s. 42(1) substituted (13.4.1995) by S.I. 1994/1898 (NI 12), art. 13(1), Sch. 1 Pt. II para. 54(2); S.R. 1994/450, art. 2(d), Sch. Pt. IV

F264S. 42(2) repealed (13.4.1995) by S.I. 1994/1898 (NI 12), art. 13(1)(2), Sch. 1 Pt. II para. 54(3), Sch. 2; S.R. 1994/450, art. 2(d), Sch. Pt. IV

F265S. 42(3) substituted (13.4.1995) by S.I. 1994/1898 (NI 12), art. 13(1), Sch. 1 Pt. II para. 54(4); S.R. 1994/450, art. 2(d), Sch. Pt. IV

F266S. 42(6)(b)(i) repealed (13.4.1995) by S.I. 1994/1898 (NI 12), art. 13(1)(2), Sch. 1 Pt. II para. 54(5), Sch. 2; S.R. 1994/450, art. 2(d), Sch. Pt. IV

F267Words in s. 42(6)(b)(iii) substituted (16.12.1995) by S.I. 1995/3213 (NI 22), arts. 1(3)(a), 123, Sch. 2 Pt. III para. 19

F268Words in s. 42(6)(b)(iii) substituted (24.4.2000 for certain purposes, otherwise 9.4.2001) by S.I. 1999/3147 (N.I. 11), arts. 1(2), 67, Sch. 8 Pt. I para. 17(3) (with transitional provisions in art. 75(5)); S.R. 2000/133, art. 2(3), Sch. Pt. I

F269S. 42(8)(a) and the word “and” immediately following it repealed (13.4.1995) by S.I. 1994/1898 (NI 12), art. 13(1)(2), Sch. 1 Pt. II para. 54(6), Sch. 2; S.R. 1994/450, art. 2(d), Sch. Pt. IV

F270S. 42(9) repealed (13.4.1995) by S.I. 1994/1898 (NI 12), art. 13(1)(2), Sch. 1 Pt. II para. 54(7), Sch. 2; S.R. 1994/450, art. 2(d), Sch. Pt. IV

Marginal Citations

43 Further provisions concerning entitlement to guaranteed minimum pensions for the purposes of s. 42.N.I.

(1)The reference in section 42(1) to a person entitled to a guaranteed minimum pension shall be construed as including a reference to a person so entitled by virtue of being the widower [F272, surviving same sex spouse] [F273or surviving civil partner] of an earner [F274 in any case where he is entitled to a benefit other than a widowed parent's allowance ] F275... only if—

[F276(a)he is also entitled to a Category B retirement pension by virtue of the earner's contributions (or would be so entitled but for section 43(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992); or]

(b)he is also entitled to a Category A retirement pension by virtue of [F277 section 41(5) of that Act].

(2)For the purposes of section 42 a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled—

(a)if its commencement had not been postponed, as mentioned in section 9(4); or

(b)if there had not been made a transfer payment or transfer under regulations made by virtue of section 16 as a result of which—

(i)he is no longer entitled to guaranteed minimum pensions under the scheme by which the transfer payment or transfer was made, and

(ii)he has not become entitled to guaranteed minimum pensions under the scheme to which the transfer payment or transfer was made.

(3)Where—

(a)guaranteed minimum pensions provided for a member or the member’s [F278widow, widower or surviving civil partner] under a contracted-out scheme have been wholly or partly secured as mentioned in subsection (3) of section 15; and

(b)either—

(i)the transaction wholly or partly securing them was carried out before 1st January 1986 and discharged the trustees or managers of the scheme as mentioned in subsection (1) of that section; or

(ii)it was carried out on or after that date without any of the requirements specified in subsection (5)(a) to (c) of that section being satisfied in relation to it and the scheme has been wound up; and

(c)any company with which any relevant policy of insurance or annuity contract was taken out or entered into is unable to meet the liabilities under policies issued or securities given by it; and

(d)the combined proceeds of—

(i)any relevant policies and annuity contracts, and

(ii)any cash sums paid or alternative arrangements made under the [F279Financial Services Compensation Scheme],

are inadequate to provide the whole of the amount secured,

the member and the member’s [F278widow, widower or surviving civil partner] shall be treated for the purposes of section 42 as only entitled to such part (if any) of the member’s or, as the case may be, the member’s [F280widow's, widower’s or surviving civil partner's] guaranteed minimum pension as is provided by the proceeds mentioned in paragraph (d).

(4)A policy or annuity is relevant for the purposes of subsection (3) if taking it out or entering into it constituted the transaction to which section 15 applies.

(5)For the purposes of section 42 a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled—

(a)if a lump sum had not been paid instead of that pension under provisions included in a scheme by virtue of section 17(1); or

(b)if that pension had not been forfeited under provisions included in a scheme by virtue of section 17(2).

[F281(6)For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for [F282 section 10(2A) and] any reduction under section 11A.]

[F283(7)For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for any order under Article 315A of the Insolvency (Northern Ireland) Order 1989 (recovery of excessive pension contributions).]

[F284(8)For the purposes of section 42, a person shall be treated as entitled to a guaranteed minimum pension to which he would have been entitled but for the fact that the trustees or managers were discharged from their liability to provide that pension on the Board of the Pension Protection Fund assuming responsibility for the scheme.]

[F285(9)For the purposes of section 42, a person shall be treated as entitled to a guaranteed minimum pension to which, in the opinion of the Commissioners for Her Majesty's Revenue and Customs, he would have been entitled but for the amendment of a scheme so that it no longer contains the guaranteed minimum pension rules.

(10)Where the earner's accrued rights have been transferred after the amendment of the scheme, in making the calculation under subsection (9) the Commissioners shall assume the application of section 12(1) after the transfer.

(11)In making the calculation under subsection (9) the Commissioners shall ignore any effect of the scheme being wound up.]

Textual Amendments

F281S. 43(6) added (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 29(4); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F282Words in s. 43(6) inserted (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 11 para. 23(4); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

F283S. 43(7) added (1.12.1999 for certain purposes and 6.4.2002 otherwise) by S.I. 1999/3147 (N.I. 11), art. 17, Sch. 2 para. 5 (with transitional provisions in art. 75(1)); S.R. 2002/25, art. 2(b)

F285S. 43(9)-(11) added (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(5), 21(1); S.R. 2009/75, art. 2(a)(b)

Modifications etc. (not altering text)

C32S. 43(2) modified (6.4.1997) by S.R. 1996/509, reg. 6(3)

[F28644 Reduced benefits where minimum payments or minimum contributions paid.N.I.

(1)Subject to subsection (3), this subsection applies where for any period—

(a)minimum payments have been made in respect of an earner to an occupational pension scheme which is a money purchase contracted-out scheme in relation to the earner’s employment, or

(b)minimum contributions have been paid in respect of an earner under section 39.

(2)Where subsection (1) applies then, for the purposes of section 42—

(a)the earner shall be treated, as from the date on which he reaches pensionable age, as entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period in that employment;

F287(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in prescribed circumstances F288. . . any [F289widow, widower or surviving civil partner] of the earner shall be treated as entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period;

and where subsection (1)(b) applies, paragraphs (a) to (c) of this subsection apply also for the purposes of [F290section]47(2) of the M12Social Security Contributions and Benefits (Northern Ireland) Act 1992 and paragraph 3(2) of Schedule 7 to that Act, but with the omission from paragraph (a) of the words “in that employment”.

(3)Where the earner is a married woman or widow, subsection (1) shall not have effect by virtue of paragraph (a) of that subsection in relation to any period during which there is operative an election that her liability in respect of primary Class 1 contributions shall be a liability to contribute at a reduced rate.

(4)The power to prescribe a rate conferred by subsection (2)(a) includes power to prescribe a nil rate.]

Textual Amendments

F286S. 44 shall cease to have effect for specified purposes (6.4.1997) by S.I. 1995/3213 (N.I.22), art. 137(3)

F287S. 44(2)(b) repealed (14.3.1996 for certain purposes otherwise 6.4.1996) by S.I. 1995/3213 (N.I. 22), art. 137(2), 168, Sch. 5 Pt. III; S.R. 1996/91, arts. 2(b)(c), Sch. Pts. II III

F288Words in s. 44(2)(c) repealed (14.3.1996 for certain purposes otherwise 6.4.1996) by S.I. 1995/3213 (N.I. 22), art. 137(2), 168, Sch. 5 Pt. III; S.R. 1996/91, arts. 2(b)(c), Sch. Pts. II III

F290Words in s. 44(2) substituted (13.4.1995) by S.I. 1994/1898 (NI 12), art. 13(1), Sch. 1 Pt. II para. 56; S.R. 1994/450, art. 2(d), Sch. Pt. IV

Marginal Citations

[F291 Effect of reduced contributions and rebates on social security benefits]N.I.

Textual Amendments

F291S. 44A and cross-heading inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 137(1); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

44A[F292 Additional pension and other benefits.]N.I.

(1)[F293In relation to—

(a)any tax week falling before the first abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 38A of this Act (as it then had effect),

(b)any tax week falling before the second abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 37 of this Act (as it then had effect), or

(c)any tax week falling before the first abolition date where an amount was paid under section 41(1) of this Act (as it then had effect) in respect of the earnings paid to or for the benefit of an earner,]

section 44(6) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (earnings factors for additional pension) shall have effect, except in prescribed circumstances, as if no [F294such] primary Class 1 contributions had been paid or treated as paid upon those earnings for that week and section 45A of that Act did not apply (where it would, apart from this subsection, apply).

(2)Where the whole or part of a contributions equivalent premium has been paid or treated as paid in respect of the earner, the Department may make a determination reducing or eliminating the application of subsection (1).

(3)Subsection (1) is subject to regulations under paragraph 5(3A) to (3E) of Schedule 1.

(4)Regulations may, so far as is required for the purpose of providing entitlement to additional pension (such as is mentioned in section 44(3)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992) but to the extent only that amount of additional pension is attributable to provision made by regulations under section 45(5) of that Act, disapply subsection (1).

(5)In relation to earners where, by virtue of subsection (1), section 44(6) of Social Security Contributions and Benefits (Northern Ireland) Act 1992 has effect, in any tax year, as mentioned in that subsection in relation to some but not all of their earnings, regulations may modify the application of section 44(5) [F295or (5A)] of that Act.

Textual Amendments

F292S. 44A inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 137(1); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F293Words in s. 44A(1) substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 31

F295Words in s. 44A(5) inserted (20.11.2000) by 2000 c. 4 (N.I.), s. 34(1) (with s. 66(6))

Modifications etc. (not altering text)

F296[Women, married women and widows]N.I.

Textual Amendments

F29745 Women, married women and widows.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Chapter IIIN.I. Termination of Contracted-out or Appropriate Scheme Status: State Scheme Premiums

Approval of arrangements for schemes ceasing to be certifiedN.I.

46 Powers of Board to approve arrangements for scheme ceasing to be certified.N.I.

[F298(1)In the case of an occupational pension scheme F299... which is or has been certified as a [F300salary related contracted-out] scheme, the [F301Inland Revenue] may, for the event of, or in connection with, its ceasing to be such a scheme, approve any arrangements made or to be made in relation to the scheme, or for its purposes, for the preservation or transfer—

[F302(a)of earners’ accrued rights to guaranteed minimum pensions under the scheme or accrued rights to pensions under the scheme attributable to their service on or after the principal appointed day, and]

[F302(b)of the liability for the payment of such pensions in respect of persons who have then become entitled to receive them.]

[F303(1A)The power of the [F301Inland Revenue] to approve arrangements under this section—

(a)includes power to approve arrangements subject to conditions, and

(b)may be exercised either generally or in relation to a particular scheme.

F303(1B)Arrangements may not be approved under this section unless any prescribed conditions are met]

(2)If the scheme ceases to be a [F304salary related contracted-out] scheme (whether by being wound up or otherwise) and the [F301Inland Revenue] either—

(a)[F305have] withdrawn [F306their] approval of previously approved arrangements relating to it; or

(b)[F305have] declined to approve arrangements relating to it,

the [F301Inland Revenue] may issue a certificate to that effect.

(3)A certificate issued under subsection (2)(a) or (b) shall be cancelled by the [F301Inland Revenue] if [F307they subsequently approve] the arrangements.

(4)Regulations may provide that where the [F301Inland Revenue] [F308 have] approved arrangements under subsection (1) in respect of an occupational pension scheme F309... any provision of this Part (other than sections 14, 15, [F31027 and 29] and [F31139 and 41]) or Chapter III of Part IV or Chapter II of Part V shall have effect subject to such modifications as may be specified in the regulations.

(5)Any such regulations shall have effect in relation to arrangements whenever approved, unless they provide that they are only to have effect in relation to arrangements approved after they come into operation.

(6)It is hereby declared that an approval of arrangements relating to an occupational pension scheme [F312to which subsection (1) applies] may be withdrawn at any time, notwithstanding that the scheme has been wound up.

F313(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F298S. 46 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 33 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(5))

F301Words in s. 46(1)(1A)(2)-(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 60(2); S.R. 1999/149, art. 2(c), Sch. 2

F303S. 46(1A)(1B) inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 37(b); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192 art. 2(b)

F305Words in s. 46(2)(a)(b) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 60(3); S.R. 1999/149, art. 2(c), Sch. 2

F306Word in s. 46(2)(a) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 60(3); S.R. 1999/149, art. 2(c), Sch. 2

F307Words in s. 46(3) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 60(4); S.R. 1999/149, art. 2(c), Sch. 2

F308Word in s. 46(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 60(5); S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C34S. 46 modified (28.3.1997) by S.R. 1997/192, art. 4(1) (with art. 9)

C35S. 46 modified by S.R. 1996/493, reg. 77(3) (as substituted (6.4.2009) by The Pensions (2008 Acts) (Consequential Provisions) Order (Northern Ireland) 2009 (S.R. 2009/113), arts. 1, 3(7))

47 Calculation of guaranteed minimum pensions preserved under approved arrangements.N.I.

(1)This section applies where—

(a)an earner’s guaranteed minimum pension rights or accrued rights to guaranteed minimum pensions under a scheme [F314satisfy prescribed conditions], and

(b)one or more of the five tax years ending with the tax year in which the scheme [F315ceased] to be contracted-out is a relevant year in relation to the earner.

(2)Where this section applies then, except in such circumstances as may be prescribed, section 12(1) shall have effect, subject to the following provisions, that is to say—

(a)any earnings factor shall be taken to be that factor as increased by the last order under Article 23 of the M13Social Security Pensions (Northern Ireland) Order 1975 or section 130 of the M14Social Security Administration (Northern Ireland) Act 1992 to come into operation before those five tax years; and

(b)any relevant earnings factors derived from contributions or earnings in respect of any year (“the relevant contributions year”) shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which—

(i)constitutes or begins before the relevant contributions year, or

(ii)begins after the final relevant year in relation to the earner.

(3)Subsection (2) shall not apply in any case where its application would result in the amount of the guaranteed minimum being greater than it would have been apart from that subsection.

(4)Regulations may provide that subsections (1) to (3) shall have effect with prescribed modifications in relation to a scheme which, immediately before it ceased to be contracted-out, contained provisions authorised by section 12(2).

(5)In this section “relevant year” and “final relevant year” have the same meanings as in section 12.

Textual Amendments

F314Words in s. 47(1)(a) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 38; S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

Marginal Citations

Supervision of formerly certified schemesN.I.

[F31648Supervision of former salary related contracted-out schemesN.I.

Section 49 shall apply for the purpose of making provision for securing the continued supervision of any scheme that was a salary related contracted-out scheme, other than a public service pension scheme, if any person is entitled to receive or has accrued rights to—

(a)a guaranteed minimum pension under the scheme, or

(b)a pension under the scheme attributable to service on or after the principal appointed day but before the scheme ceased to be contracted-out.]

Textual Amendments

49 Supervision: former contracted-out schemes.N.I.

[F317(1)The [F318Inland Revenue] may direct the trustees or managers of the scheme, or the employer, to take or refrain from taking such steps as the [F318Inland Revenue] may specify in writing; and such a direction shall be final and binding on the person directed and any person claiming under him.

(1A)An appeal on a point of law shall lie to the High Court from a direction under subsection (1) at the instance of the trustees or managers or the employer, or any person claiming under them.

(1B)A direction under subsection (1) shall be enforceable as if it were an order of the county court.]

[F319(1C)But where a direction under subsection (1) conflicts with a freezing order made by the Regulatory Authority under Article 19 of the Pensions (Northern Ireland) Order 2005 in relation to the scheme then, during the period for which the freezing order has effect, the direction to the extent that it conflicts with the freezing order—

(a)is not binding as described in subsection (1), and

(b)is not enforceable as described in subsection (1B).]

F320(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F321(3)[F322If a certificate has been issued under subsection (2) of section 46 and has not been cancelled under subsection (3) of that section, any liabilities in respect of such entitlement or rights as are referred to in section 48(2A)(a) F323... must, except in prescribed circumstances, be discharged (subject to any directions under subsection (1)) in a prescribed manner and within a prescribed period or such longer period as the [F318Inland Revenue] may allow.]]

F320(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F320(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F317S. 49(1)(1A)(1B) substituted (6.4.1997) for s. 49A(1) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 40(a); S.R. 1997/192, art. 2(b)

F318Words in s. 49(1)(3) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 61; S.R. 1999/149, art. 2(c), Sch. 2

F321S. 49(3) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (NI 22), arts. 147, Sch. 3 para. 40(c); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F322S. 49(3) omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 36 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2))

Modifications etc. (not altering text)

C36S. 49 modified by S.R. 1996/493, reg. 77(3) (as substituted (6.4.2009) by The Pensions (2008 Acts) (Consequential Provisions) Order (Northern Ireland) 2009 (S.R. 2009/113), arts. 1, 3(7))

F32450 Supervision: former appropriate personal pension schemes.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

State scheme premiumsN.I.

51 Payment of state scheme premiums on termination of certified status.N.I.

F325[F326(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F327(2)Where—

(a)an earner is serving in employment which is contracted-out employment by reference to an occupational pension scheme F328...,

(b)paragraph (a) ceases to apply, by reason of any of the following circumstances, before the earner attains the scheme’s normal pension age or (if earlier) the end of the tax year preceding that in which the earner attains pensionable age, and

(c)the earner has served for less than two years in the employment,

the prescribed person [F329shall, if subsection (2B) applies, pay and otherwise] may elect to pay a premium under this subsection (referred to in this Act as a “contributions equivalent premium”).

[F330(2ZA)In this section “prescribed” means prescribed by regulations made by the Secretary of State.]

(2A)The circumstances referred to in subsection (2) are that—

(a)the earner’s service in the employment ceases otherwise than on the earner’s death,

(b)the earner ceases to be a member of the scheme otherwise than on the earner’s death,

(c)the earner’s service in the employment ceases on the earner’s death and the earner dies leaving a widow or widower,

(d)the scheme is wound up,

(e)the scheme ceases to be a contracted-out occupational pension scheme;

[F331. . .]]

[F332(2B)Except in prescribed circumstances, this subsection applies in any case where the earner has no accrued right to any benefit under the scheme.

(2C)Where a contributions equivalent premium is required to be paid in respect of an earner by virtue of subsection (2), the prescribed person must notify the Inland Revenue of that fact within the prescribed period and in the prescribed manner.]

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F325(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F325(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F325(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F327S. 51(2) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (NI 22), art. 138(1); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F329Words in s. 51(2) inserted (11.11.1999 for certain purposes and otherwise 6.4.2002) by 1999 c. 30, ss. 18, 89(5)(a), Sch. 2 para. 7(2)(a); S.I. 2001/4049, art. 2(3)

F330S. 51(2ZA) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 63; S.R. 1999/149, art. 2(c), Sch. 2

F331Words in s. 51(2A) omitted (11.11.1999 for certain purposes and otherwise 6.4.2002) by virtue of 1999 c. 30, ss. 18, 89(5)(a), Sch. 2 para. 7(2)(b) and repealed (6.4.2002) by 1999 c. 30, s. 88, Sch. 13 Pt. I; S.I. 2001/4049, art. 2(3)(b)(ii); S.I. 2001/4049, art. 2(3)

F332S. 51(2B)(2C) inserted (11.11.1999 for certain purposes and otherwise 6.4.2002) by 1999 c. 30, ss. 18, 89(5)(a), Sch. 2 para. 7(2)(c); S.I. 2001/4049, art. 2(3)

Modifications etc. (not altering text)

C37S. 51 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

C38S. 51(2B) excluded (6.4.2002) by S.R. 1996/493, reg. 51(1A)-(1C) (as substituted by S.I. 2002/681, reg. 7(2))

52 Provisions supplementary to s. 51.N.I.

F333[F326(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)A premium under section 51 shall be paid by the prescribed person to the [F334Inland Revenue] within the prescribed period F335. . ..

F333(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)[F336Where under the rules of the scheme, transfer credits have been allowed—

(a)in respect of the earner’s rights under another scheme, or

(b)in respect of the earner by reference to the payment of a cash transfer sum (within the meaning of [F337Chapter 2 of Part 4ZA] ) to the trustees or managers of the scheme by the trustees or managers of another occupational pension scheme,]

the reference in section 51(2) to employment which is contracted-out by reference to the scheme shall include references to employment in any period of linked qualifying service which was contracted-out employment by reference to the other scheme.

[F338(5)F339. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Subject to regulations under paragraph 1 of Schedule 1, service in any employment which ceases with the death of the employer shall be treated for the purposes of section 51(2A) as ceasing immediately before the death]

[F340(7)In this section “prescribed” means prescribed by regulations made by the Secretary of State.]

[F341(8)Where a premium under section 51 is payable by the Board of the Pension Protection Fund by virtue of a transfer under Article 145 of the Pensions (Northern Ireland) Order 2005 (effect of the Board assuming responsibility for an occupational pension scheme), then, subject to subsection (9), sections 51 to 64 apply with such modifications as may be prescribed in relation to that premium.

(9)A premium under section 51 in respect of an earner ceases to be payable if—

(a)the liability to pay the premium is transferred to the Board of the Pension Protection Fund by virtue of Article 145 of the Pensions (Northern Ireland) Order 2005, and

(b)prescribed requirements are met.]]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F333S. 52(1)(3) repealed (6.4.1997) by S.I. 1995/3213, (N.I. 22), arts. 147, 168, Sch. 3 para. 43(a), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F334Words in s. 52(2) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 64(2); S.R. 1999/149, art. 2(c), Sch. 2

F335Words in s. 52(2) repealed (6.4.1997) by S.I. 1995/3213, (N.I. 22), arts. 147, 168, Sch. 3 para. 43(a), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F337Words in s. 52(4)(b) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 52 (with s. 87)

F339S. 52(5) repealed (6.4.2002) by 2000 c. 19, s. 85, Sch. 9 Pt. III(11) (with s. 83(6)); S.I. 2002/437 {art. 3(3)}

F340S. 52(7) added (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 64(3); S.R. 1999/149, art. 2(c), Sch. 2

F341S. 52(8)(9) added (1.10.2006 for specified purposes, 1.1.2007 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255), art. 1(2), Sch. 10 para. 7(3); S.R. 2006/352, art. 2(2)(a)(b)

Modifications etc. (not altering text)

C41S. 52 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

53 Elections to pay contributions equivalent premiums.N.I.

[F326(1)An election under section 51(2) must be made within the prescribed period and in the prescribed manner.

(2)Except in such cases as may be prescribed, the prescribed person shall not, in making or abstaining from making elections under that section, discriminate between different earners on any grounds other than their respective lengths of relevant service.

(3)In subsection (2) “relevant service” means service in contracted-out employment by reference to the scheme, together with any service in contracted-out employment which in relation to service in that employment is linked qualifying service.

(4)If [F342the Inland Revenue consider] that the prescribed person is contravening subsection (2), [F343they] may cancel any contracting-out certificate held by the earner’s employer in respect of the scheme in question.

[F344(5)In this section “prescribed” means prescribed by regulations made by the Secretary of State.]]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F342Words in s. 53(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 65(2); S.R. 1999/149, art. 2(c), Sch. 2

F343Words in s. 53(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 65(2); S.R. 1999/149, art. 2(c), Sch. 2

F344S. 53(5) added (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 65(3); S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C43S. 53 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

[F32654 Amount of premiums payable under s. 51.N.I.

F345(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F345(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F345(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F346(4)Subject to subsection (4A), the amount of the contributions equivalent premium shall be equal to the sum of the following amounts—

(a)the amount of every reduction made under section 37 (as from time to time in force) in the amount of Class 1 contributions payable in respect of the earner’s employment in employment which was contracted-out by reference to the scheme; and

(b)the total amount by which the reductions falling within paragraph (a) would have been larger if the amount of the contributions falling to be reduced had in each case been at least equal to the amount of the reduction of those contributions provided for by section 37.

(4A)The amounts brought into account in accordance with subsection (4)(b) shall not include any amount which, by virtue of regulations made under section 37(1D) so as to avoid the payment of trivial or fractional amounts, is an amount that was not payable by the Inland Revenue to the secondary contributor.]

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F345(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)Section 52(4) applies for the purposes of subsection (4) as it applies for the purposes of section 51(2).]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F346S. 54(4)(4A) substituted (28.7.2000 with effect as mentioned in Sch. 5 Pt. I para. 6(4) of the amending Act) for s. 54(4) by 2000 c. 19, s. 56, Sch. 5 Pt. I para. 6(1) (with s. 83(6))

Modifications etc. (not altering text)

C46S. 54 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

F34755. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

56 Effect of payment of premiums on rights.N.I.

F348[F326(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F348(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F348(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Payment of a contributions equivalent premium in the circumstances mentioned in section [F34951(2A)(a) and (b), (d) and (e)] shall extinguish the earner’s accrued rights to guaranteed minimum pensions under the relevant scheme [F350or (in relation to service on or after the principal appointed day( rights to pensions under the scheme so far as attributable to the amount of the premium].

(5)Payment of a contributions equivalent premium in the circumstances mentioned in section [F35151(2A)(c)] shall extinguish any such accrued rights in respect of the earner’s [F352widow, widower or surviving civil partner] .

F353(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F353(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F353(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F353(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F353(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F351Words in s. 56(5) substituted (6.4.1997) by S.I. 1995/3213 (NI 22), art. 147, Sch. 3 para. 46(c); S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C47S. 56 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

57 Deduction of contributions equivalent premium from refund of scheme contributions.N.I.

[F326(1)This section applies where—

[F354(a)an earner’s service in contracted-out employment ceases or his employment ceases to be contracted-out employment, and]

(b)he (or, by virtue of a connection with him, any other person) is entitled to a refund of any payments made by or in respect of him towards the provision of benefits under the scheme by reference to which that employment was contracted-out; and

(c)a contributions equivalent premium falls to be paid by any person in respect of him.

(2)Where this section applies, then, subject to the following provisions of this section, the person by whom the premium falls to be paid shall be entitled on paying it to recover an amount equal to so much of the premium as is attributable to [F355any actual reductions of] primary Class 1 contributions (and on paying any part of it to recover a proportionate part of that amount) from the person liable for the refund.

(3)The amount recoverable under this section shall not exceed the amount of the refund or so much of it as has not been made.

(4)Where the period taken into account in arriving at the amount mentioned in subsection (2) does not coincide with that in respect of which the refund is to be made, the sum recoverable under this section shall be determined by reference to so much of that amount and of the refund as are referable to the same period.

(5)Where the refund—

(a)is made in respect of more than one period of service, and one or more of those periods is a period of previous linked qualifying service; and

(b)includes any amount paid under a contracted-out scheme in relation to that service on or in connection with a transfer of accrued rights to another scheme,

the amount which may be recovered under this section shall be increased by such amount as may be prescribed.

(6)Where the person liable for the premium is himself liable for the refund, he shall be entitled to retain out of the refund the amount which he could recover under this section from another person liable for the refund.

(7)The amount of the refund shall be reduced by the amount recovered or retained under this section; and provision shall be made by regulations for requiring the making of refunds to be delayed for the purpose of enabling any right of recovery or retainer conferred by this section to be exercised, notwithstanding anything in any enactment relating to the making of the refund.

(8)Where—

[F356(a)an earner’s service in contracted-out employment ceases or his employment ceases to be contracted-out employment,]

(b)he (or, by virtue of a connection with him, any other person) is entitled to a refund of any payments made by or in respect of him under the scheme by reference to which that employment was contracted-out in relation to any previous contracted-out employment of his, being payments towards the provision of benefits under that scheme;

(c)a contributions equivalent premium falls to be paid in respect of him; and

(d)the period taken into account in arriving at the amount mentioned in subsection (2) includes the period of the previous contracted-out employment,

then the person liable for that premium shall have the like right of recovery from that refund (so far as the premium is not recoverable or retainable out of a refund in respect of a later employment) as a person has under this section where the refund relates to service in the employment on the [F357cessation] of which the premium falls to be paid (and subsection (7) shall apply accordingly).

(9)This section shall apply in relation to such a refund as is referred to in subsection (1)(b) which becomes payable after the [F358cessation] of an earner’s service in contracted-out employment as it applies to such a refund becoming payable on the [F358cessation] of an earner’s service in such employment.

[F359(9A)Where under section 97AH the trustees or managers of an occupational pension scheme may pay a contribution refund to a member of the scheme, the member is to be treated for the purposes of this section as being entitled to the contribution refund.]

(10)Where the earner (or, by virtue of a connection with him, any other person) becomes entitled to any payment in lieu of benefit, this section shall apply in relation to the payment as if it were such a refund as is referred to in subsection (1)(b).

(11)For the purposes of subsection (10), a payment in lieu of benefit is any payment falling to be made to or for the benefit of, or in respect of, a person by virtue of his being or having been a member of an occupational pension scheme, being a payment which either—

(a)is made or to be made otherwise than out of the resources of the scheme; or

(b)is made or to be made out of those resources but by way of distribution on a winding up; or

(c)falls within such other description of payments as may be prescribed for the purposes of that subsection.

[F360(12)In this section “prescribed” means prescribed by regulations made by the Secretary of State.]]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F355Words in s. 57(2) inserted (28.7.2000 with effect as mentioned in Sch. 5 Pt. I para. 6(4) of the amending Act) by 2000 c. 19, s. 56, Sch. 5 Pt. I para. 6(2) (with s. 83(6))

F358Words in s. 57(9) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 47(c); S.R. 1997/192, art. 2(b)

F360S. 57(12) added (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 66; S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C49S. 57 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

58 No recovery of state scheme premiums from earners, etc.N.I.

[F326(1)Notwithstanding any contract to the contrary, a person shall not be entitled—

(a)to recover any part of a [F361contributions equivalent] premium from any earner in respect of whom it is payable; or

(b)except in accordance with section 57, to recover or retain any part of such a premium out of any money payable to or for the benefit of the earner or any other person.

F362(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F361Words in s. 58(1)(a) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 48(a); S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C53S. 58 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

59 Further provisions concerning calculations relating to premiums.N.I.

[F326(1)The following amounts shall be certified by the [F363Inland Revenue]—

F364(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F365(b)the sum of the amounts specified in section 54(4);]

(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the amount mentioned in section 57(2).

F366(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)If the [F363Inland Revenue]—

F367(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)[F368are satisfied] that records of earnings relevant for determining the amount mentioned in [F369section 54(4)] have not been maintained or retained or are otherwise unobtainable,

then the [F363Inland Revenue] may for that purpose—

(i)compute, in such manner as [F370they think] fit, an amount which shall be regarded as the amount of those earnings; or

(ii)take their amount to be such sum as [F371they may] specify in the particular case,

F372. . ..

F373(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)For the purposes of subsection (1) the [F363Inland Revenue] may make such adjustments as [F370they think] necessary for avoiding fractional amounts.]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F363Words in s. 59(1)(3)(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 67(2); S.R. 1999/149, art. 2(c), Sch. 2

F365S. 59(1)(b) substituted (28.7.2000 with effect as mentioned in Sch. 5 Pt. I para. 6(4) of the amending Act) by 2000 c. 19, s. 56, Sch. 5 Pt. I para. 6(3) (with s. 83(6))

F368Words in s. 59(3) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 67(3); S.R. 1999/149, art. 2(c), Sch. 2

F369Words in s. 59(3)(b) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 49(c)(ii); S.R. 1997/192, art. 2(b)

F370Words in s. 59(3)(5) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 67(3)(4); S.R. 1999/149, art. 2(c), Sch. 2

F371Words in s. 59(3) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 67(3); S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C54S. 59 modified (6.4.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

F37460

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F37561. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F37662. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

63 Non-payment of state scheme premiums.N.I.

[F326(1)If a person fails to pay any [F377contributions equivalent] premium which is payable by him at or within the time prescribed for the purpose, he shall be liable on summary conviction to a fine of not more than level 3 on the standard scale.

(2)Where—

(a)a person is convicted of the offence under subsection (1) of failing to pay a premium, and

(b)the premium remains unpaid at the date of the conviction,

he shall be liable to pay to the [F378Inland Revenue] a sum equal to the amount which he failed to pay.

(3)Subject to subsection (4), where a person is convicted of an offence mentioned in subsection (2), evidence may be given of any previous failure by him to pay [F377contributions equivalent] premiums within the time prescribed for the purpose; and in that subsection “the conviction” and “the offence” mean respectively the conviction referred to in this subsection and the offence of which the person is convicted.

(4)Such evidence may be given only if notice of intention to give it is served with the summons or warrant on which the person appeared before the court which convicted him.]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F377Words in s. 63 substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 51; S.R. 1997/192, art. 2(b)

F378Word in s. 63(2) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 68; S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C56S. 63 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

64 Unpaid premiums: supplementary.N.I.

[F326(1)Where a person charged with an offence to which section 63(2) applies is convicted of that offence in his absence under Article 24(2) of the M15Magistrates’ Courts (Northern Ireland) Order 1981, then if—

(a)it is proved to the satisfaction of the court, on oath or by affidavit or in the manner prescribed by magistrates’ courts rules, that notice under section 63(4) has been duly served specifying the other premiums in respect of which the complainant intends to give evidence; and

(b)the clerk of petty sessions has received a statement in writing purporting to be made by the accused or by a solicitor acting on his behalf to the effect that if the accused is convicted in his absence of the offence charged he desires to admit failing to pay the other premiums so specified or any of them,

section 63(3) and (4) shall have effect as if the evidence had been given and the failure so admitted had been proved, and the court shall proceed accordingly.

(2)Where—

(a)a person is convicted of an offence to which section 63(2) applies; and

(b)an order is made under the M16Probation Act (Northern Ireland) 1950 placing the offender on probation or discharging him absolutely or conditionally,

subsection (1) and section 63(2) to (4) shall apply as if it were a conviction for all purposes.

(3)Any sum which a person is liable to pay under subsection (1) or section 63(2) to (4) shall be recoverable from him as a penalty.

(4)[F379contributions equivalent] premiums recovered by the [F380Inland Revenue] under those provisions shall be treated for all purposes as premiums paid to the [F380Inland Revenue] in respect of the person in respect of whom they were originally payable.]

Textual Amendments

F326Ss. 51-64 repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 37 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(7A) and with further savings in art. 2(6)(7)(7B)-(7F) (as amended by S.R. 2016/162, arts. 1, 5))

F379Words in s. 64 substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 51; S.R. 1997/192, art. 2(b)

F380Words in s. 64(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 69; S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C57S. 64 modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

Marginal Citations

F381PART IIIAN.I....

Textual Amendments

F38164A Safeguarded rights.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F38164B Requirements relating to safeguarded rights.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F38164C Reserve powers in relation to non-complying schemes.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F38164D Power to control transfer or discharge of liability.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IVN.I. Protection for Early Leavers

Chapter IN.I. Preservation of Benefit Under Occupational Schemes

Modifications etc. (not altering text)

65 Scope of Chapter I: the preservation requirements.N.I.

(1)This Chapter has effect in relation to the preservation of benefit under occupational pension schemes to which it applies.

(2)In this Act “the preservation requirements” means the requirements specified in or under sections 67 to 78.

(3)This Chapter applies to any occupational pension scheme whose resources are derived in whole or in part from—

(a)payments made or to be made by one or more employers of earners to whom the scheme applies, being payments either—

(i)under an actual or contingent legal obligation; or

(ii)in the exercise of a power conferred, or the discharge of a duty imposed, on a Minister of the Crown, government department or any other person, being a power or duty which extends to the disbursement or allocation of public money; or

(b)such other payments by the earner or his employer, or both, as may be prescribed for different categories of scheme.

66 Interpretation (Part IV).N.I.

(1)In this Chapter—

  • “scheme” means an occupational pension scheme to which this Chapter applies;

  • “relevant employment”, in relation to a scheme, means any employment to which the scheme applies;

  • “long service benefit”, in relation to a scheme, means the benefits which will be payable under the scheme, in accordance with legal obligation, to or in respect of a member of the scheme on the assumption—

    (a)

    that he remains in relevant employment, and

    (b)

    that he continues to render service which qualifies him for benefits,

    until he attains normal pension age; and in this definition “benefits” means—

    (i)

    retirement benefit for the member himself at normal pension age, or

    (ii)

    benefit for the member’s [F382wife, husband, civil partner, widow, widower or surviving civil partner], or dependants, or others, on his attaining that age or his later death, or

    (iii)

    both such descriptions of benefit.

(2)In this Act “pensionable service”, in relation to a scheme and a member of it, means, subject to subsection (3), service in relevant employment which qualifies the member (on the assumption that it continues for the appropriate period) for long service benefit under the scheme.

(3)There shall be taken into account as pensionable service only actual service, that is to say—

(a)service notionally attributable for any purposes of the scheme is not to be regarded as pensionable service; and

(b)no account is to be taken of scheme rules by which a period of service can be treated for any purpose as being longer or shorter than it actually is.

Textual Amendments

67 Basic principle as to short service benefit.N.I.

(1)A scheme must make such provision that where a member’s pensionable service is terminated before normal pension age and—

(a)he has at least 2 years’ qualifying service,

[F383(aa)he has at least 30 days' qualifying service and, if he were entitled to benefit because of this paragraph, all of it would necessarily be money purchase benefit,] or

(b)a transfer payment in respect of his rights under a personal pension scheme has been made to the scheme,

he is entitled to benefit consisting of or comprising benefit of any description which would have been payable under the scheme as long service benefit, whether for himself or others, and calculated in accordance with this Chapter.

(2)The benefit to which a member is entitled under subsection (1) is referred to in this Act as “short service benefit”.

[F384(3)Subject to [F385subsections (4) and (5A)], short service benefit must be made payable as from an age which is no greater than—

(a)the age of 65, or

(b)if in the member's case normal pension age is greater than 65, normal pension age.]

(4)Short service benefit payable on or in respect of the member’s death after normal pension age must be made payable as from his death or within such time after it as long service benefit payable on or in respect of his death would be payable.

(5)In applying subsections (3) and (4), no regard is to be had to the operation of any scheme rule, taking effect at any time after termination of the member’s pensionable service, as to what is normal pension age under the scheme.

[F386(5A)Subsection (3) does not apply in relation to a scheme under section 1 of the Public Service Pensions Act (Northern Ireland) 2014.]

(6)A scheme must not provide for payment of short service benefit in the form of a lump sum at any time before normal pension age, except in such circumstances as may be prescribed.

(7)In subsection (1) “2 years’ qualifying service” means 2 years (whether a single period of that duration or two or more periods, continuous or discontinuous, totalling 2 years) in which the member was at all times employed either—

(a)in pensionable service under the scheme; or

(b)in service in employment which was contracted-out by reference to the scheme; or

(c)in linked qualifying service under another scheme.

(8)For the purposes of subsection (7), no regard shall be had to whether or not the service was of the same description in the whole of the 2 years.

(9)A period of service previously terminated is not to count towards the 2 years’ qualifying service unless it counts towards qualification for long service benefit, and need then count only to the same extent and in the same way.

[F387(10)Subsections (7) to (9) apply, with the substitution for references to 2 years of references to 30 days, for determining whether a person has at least 30 days' qualifying service for the purposes of subsection (1).

(11)Subsection (1)(aa) does not apply in relation to a person's membership of a scheme if any period of relevant service began before the day on which section35 of the Pensions Act (Northern Ireland) 2015 came into operation (whether or not it also ended before that date).

“Relevant service” means service that counts towards the 30 days' qualifying service for the purposes of subsection (1).]

Textual Amendments

Modifications etc. (not altering text)

68 No discrimination between short service and long service beneficiaries.N.I.

(1)A scheme must not contain any rule which results, or can result, in a member being treated less favourably for any purpose relating to short service benefit than he is, or is entitled to be, treated for the corresponding purpose relating to long service benefit.

(2)Subsection (1) does not apply to any rule in its application to members whose pensionable service terminated before the rule came into force, unless the rule—

(a)was made after the termination of a member’s pensionable service; and

(b)results, or is capable of resulting, in any treatment less favourable for him than that to which he would have been entitled but for the rule.

(3)Subsection (1) does not apply to a rule which merely confers discretion on the scheme’s trustees or managers, or others, so long as it is not a rule requiring the discretion to be exercised in any discriminatory manner against members in respect of their short service benefit.

[F388(4)This section is subject to subsections (3) and (6) of section 67 (age at which short service benefit is to be payable).]

Textual Amendments

69 Form of short service benefit and its alternatives.N.I.

(1)Subject to subsection (2) and section 77, a member’s short service benefit must be—

(a)payable directly out of the resources of the scheme; or

(b)assured to him by such means as may be prescribed.

(2)Subject to subsections (3) to (5), a scheme may, instead of providing short service benefit, provide—

(a)for the member’s accrued rights (including any transfer credits allowed under the scheme)—

(i)to be transferred to another occupational pension scheme with a view to acquiring transfer credits for the member under the other scheme, or

(ii)to be transferred to a personal pension scheme F389. . . with a view to acquiring rights for the member under the rules of the scheme F390. . .; or

(b)for such alternatives to short service benefit as may be prescribed.

(3)The option conferred by subsection (2)(a) is additional to any obligation imposed by [F391Chapter 1 of Part 4ZA] .

(4)The alternatives specified in subsection (2)(a) and (b) may only be by way of complete or partial substitute for short service benefit—

(a)if the member consents; or

(b)in such other cases as may be prescribed.

(5)An alternative prescribed under subsection (2)(b) may only include payment by way of return of contributions—

(a)if they relate to a period of service before 6th April 1975; or

(b)if there has been such a payment relating to a period of service before that date and the contributions relate to a period of service of less than 5 years after that date.

Textual Amendments

F389Words in s. 69(2)(a)(ii) ceased to have effect (1.12.1999 for certain purposes only) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 2(a) (with transitional provisions in art. 75(1)(2)) and repealed (25.4.2000) by S.I. 1999/3147 (N. I. 11) art. 17, Sch. 10 Pt. I; S.R. 2000/133, art. 2(3), Sch. Pt. II

F390Words in s. 69(2)(a)(ii) ceased to have effect (1.12.1999 for certain purposes only) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 2(a) (with transitional provisions in art. 75(1)) and repealed (25.4.2000) by S.I. 1999/3147 (N. I. 11) art. 17, Sch. 10 Pt. I; S.R. 2000/133, art. 2(3), Sch. Pt. II

F391Words in s. 69(3) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 53 (with s. 87)

Modifications etc. (not altering text)

70 Computation of short service benefit.N.I.

(1)Subject to the provisions of this section, a scheme must provide for short service benefit to be computed on the same basis as long service benefit.

(2)For that purpose, no account is to be taken of any rule making it (directly or indirectly) a condition of entitlement to benefit that pensionable service shall have been of any minimum duration.

(3)Subsection (1) does not apply to so much of any benefit as accrues at a higher rate, or otherwise more favourably, in the case—

(a)of members with a period of pensionable service of some specified minimum length, or

(b)of members remaining in pensionable service up to some specified minimum age.

(4)Subsection (1) does not apply to so much of any benefit as is of an amount or at a rate unrelated to length of pensionable service or to the number or amount of contributions paid by or for the member.

(5)Regulations may provide that subsection (1) shall not apply to any category of schemes or members, or description of benefit.

(6)So far as any short service benefit is not required to be computed in accordance with subsection (1), it must be computed on the basis of uniform accrual, so that at the time when pensionable service is terminated, it bears the same proportion to long service benefit as the period of that service bears to the period from the beginning of that service to the time when the member would attain normal pension age or such lower age as may be prescribed.

(7)Where long service benefit is related to a member’s earnings at, or in a specified period before, the time when he attains normal pension age, short service benefit must be related, in a corresponding manner, to his earnings at, or in the same period before, the time when his pensionable service is terminated.

(8)A scheme must comply with any regulations relating to the basis of computation of short service benefit, including regulations providing for the avoidance of fractional amounts and otherwise to facilitate computation.

71 Credits.N.I.

(1)In this section—

  • “supplementary credits”, in relation to a scheme and a member’s entitlement to its benefits, means any increase of benefit or additional benefit to which the member may become entitled—

    (a)

    in consequence of any provision made by or under the scheme after he becomes a member of it (to the extent that it applies to any previous pensionable service of his); or

    (b)

    by reference to previous service of his (whether or not pensionable service); or

    (c)

    in such other circumstances as may be prescribed,

    including under paragraph (b) any transfer credits;

  • “purchased credits” means supplementary credits for which, under the rules of the scheme, a member may or must make a payment in whole or in part (whether by means of additional contributions, or of deduction from benefit, or otherwise, and whether separately for each credit or by one or more payments for one or more credits);

  • “bonus credits” means supplementary credits other than purchased credits or transfer credits.

(2)Subject to subsections (3) to (7), if a scheme provides for long service benefit to include supplementary credits, it must—

(a)provide for such credits to be included in short service benefit, and

(b)provide for all credits to be so included.

(3)Where purchased credits have not been paid for in full at or before termination of pensionable service, the short service benefit must include the appropriate proportion of the credits.

(4)In subsection (3) “the appropriate proportion of the credits” means—

(a)if they were to be paid for by a fixed amount, the same proportion as the amount paid bears to the full amount payable; and

(b)otherwise, the same proportion as the period between the time when the first payment became due and the termination of the member’s pensionable service bears to the whole period over which payment was to be made.

(5)If the benefit includes bonus credits, or credits for which payment is to be made by deduction from that or another benefit, the credits to be included in the benefit and (where applicable) the amount of the deduction must be computed on the assumption—

(a)that the credits accrue in full only to a member remaining in pensionable service until normal pension age; and

(b)that the amount of any such credit, and also of any relevant deduction, accrues at a uniform rate from the time when the credit was awarded up to the time of his attaining that age.

(6)Where any such deduction is a percentage of benefit, the percentage must be the same for short service as for long service benefit.

(7)A scheme must comply with any regulations made with respect to the manner in which supplementary credits are to be included in short service benefit, including regulations providing for the avoidance of fractional amounts and otherwise to facilitate computation.

Modifications etc. (not altering text)

72 Pension increases.N.I.

(1)A scheme which by its rules provides for increases of long service benefit from time to time (whether by way of upwards revaluation or otherwise) must provide for corresponding increases of short service benefit in the case of members whose pensionable service terminates at any time after the coming into force of any such rule.

(2)Where the provision for increasing long service benefit involves the exercise of a discretion, a corresponding discretion must be conferred in relation to short service benefit.

(3)If an increase of long service benefit is to take effect at a specified time after termination of service, the corresponding increase of short service benefit must take effect at the same time after the time when short service benefit becomes payable.

(4)Where provision is made for increase of long service benefit otherwise than at a fixed rate, short service benefit may nevertheless be subject to increase at a fixed rate, if the rate is at least 3 per cent. a year compound.

F39273

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F39374

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Textual Amendments

F39475

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F39576. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

77 Discharge of liability where short service or alternative benefits secured by insurance policies or annuity contracts.N.I.

A transaction to which section 15 applies discharges the trustees or managers of an occupational pension scheme from their liability to provide for or in respect of any person short service benefit or any alternative to short service benefit—

(a)if it is carried out not earlier than the time when that person’s pensionable service terminates; and

(b)if and to the extent that it results in short service benefit or any alternative to short service benefit for or in respect of that person being appropriately secured (within the meaning of that section); and

(c)if and to the extent that the requirements set out in paragraph (a) or (c) of section 15(5) are satisfied.

78 Supplementary regulations.N.I.

(1)Regulations may provide that a scheme is not to be treated as conforming with the preservation requirements unless it contains express rules to the effect (but not necessarily in the words) of any specified provision contained in sections 67 to [F39672].

(2)Regulations may make provision as to the circumstances in which, for the purposes of sections 66 to [F39672]—

(a)a period of a person’s service in two or more different employments is to be treated as a period of service in one or more of those employments; or

(b)a person’s service in any employment is to be treated as terminated or not terminated.

Textual Amendments

Chapter IIN.I. Revaluation of Accrued Benefits (Excluding Guaranteed Minimum Pensions)

Modifications etc. (not altering text)

79 Scope of Chapter II.N.I.

(1)This Chapter applies for the purpose of revaluing—

(a)[F397relevant] benefits payable to or in respect of a member of an occupational pension scheme where—

(i)his pensionable service ends on or after 1st January 1986;

(ii)on the date on which his pensionable service ends (in this Chapter referred to as “the termination date”) he has accrued rights to benefit under the scheme;

(iii)the period beginning with the day after the termination date and ending with the date on which he attains normal pension age (in this Chapter referred to as “the pre-pension period”) is at least 365 days; and

(iv)in the case of benefit payable to any other person in respect of the member, the member dies after attaining normal pension age; and

(b)[F397relevant] benefits payable to or in respect of a member of a personal pension scheme—

(i)in respect of whom contributions to the scheme have ceased to be paid; and

(ii)who has accrued rights to benefit under the scheme.

[F398(1A)The following are relevant benefits for the purposes of subsection (1)—

(a)any benefits payable otherwise than by virtue of rights which are attributable (directly or indirectly) to a pension credit, and

(b)in the case of a salary related occupational pension scheme, any benefits payable by virtue of such rights, to the extent that the rights involve the member being credited by the scheme with notional pensionable service.]

[F399(1B)The reference in subsection (1)(a)(iii) to normal pension age is to be read, in relation to a person who is an active or deferred member of a scheme under section 1 or section 32(7) of the Public Service Pensions Act (Northern Ireland) 2014, as—

(a)the member's normal pension age within the meaning of that Act, or

(b)the member's deferred pension age within the meaning of that Act, if that is later.

In this subsection “active member” and “deferred member”, in relation to such a scheme, have the meanings given by Article 121(1) of the Pensions (Northern Ireland) Order 1995.]

(2)In calculating 365 days for the purpose of subsection (1)(a)(iii), any day which is 29th February shall be disregarded.

(3)In subsection (1)(b)—

(a)the reference to a personal pension scheme does not include a scheme which is comprised in an annuity contract made before 4th January 1988; and

(b)the reference to contributions includes any minimum contributions.

[F400(4)For the purposes of this section, an occupational pension scheme is salary related if—

(a)it is not a money purchase scheme, and

(b)it does not fall within a prescribed class.]

Textual Amendments

F397Words in s. 79(1)(a)(b) inserted (1.12.2000) by S.I. 1999/3147 (N.I. 11), art. 74, Sch. 9 para. 20(2); S.R. 2000/133, art. 2(3), Sch. Pt. IV

80 Basis of revaluation.N.I.

(1)[F401Subject to subsections (2) to (3B),] in the case of such benefits as are mentioned in section 79(1)(a), any pension or other retirement benefit payable under the scheme in question to the member and any pension or other benefit payable under it to any other person in respect of him, is to be revalued by the final salary method.

(2)If—

(a)any such benefit is an average salary benefit or flat rate benefit; and

(b)it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue the benefit by the average salary method or, as the case may be, the flat rate method,

then the benefit shall be revalued using that method.

(3)If any benefit such as is mentioned in paragraph (a) of section 79(1) is a money purchase benefit [F402other than a collective money purchase benefit], and in the case of such benefit as is mentioned in paragraph (b) of that section, the benefit shall be revalued using the money purchase method.

[F403(3A)If—

(a)any such benefit as is mentioned in section 79(1)(a) is a cash balance benefit in respect of which the available sum is not calculated by reference to final salary;

(b)the benefit is attributable to periods of pensionable service falling on or after the day on which section 27 of the Pensions Act (Northern Ireland) 2012 (definition of money purchase benefits) comes into operation; and

(c)it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue the benefit by the cash balance method,

then the benefit shall be revalued using that method.

[F404(3AA)If any such benefit as is mentioned in section 79(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.]

(3B)Where a cash balance benefit in respect of which the available sum is not calculated by reference to final salary—

(a)is attributable to periods of pensionable service falling partly before and partly on or after the day on which section 27 of the Pensions Act (Northern Ireland) 2012 comes into operation; and

(b)it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue so much of the benefit as is attributable to the member’s pensionable service falling on or after that day by the cash balance method,

then so much of the benefit as is attributable to the member’s pensionable service falling on or after that day shall be revalued using that method.]

(4)In this section—

  • “average salary benefit” means benefit the rate or amount of which is calculated by reference to the average salary of a member over the period of service on which the benefit is based;

  • [F405“cash balance benefit” has the meaning given by regulation 2 of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014;

  • “final salary”, in relation to a member to or in respect of whom benefits under a pension scheme are payable, means the member’s pensionable earnings, or highest, average or representative pensionable earnings, in a specified period ending at, or defined by reference to, the time when the member’s pensionable service in relation to that scheme ends;]

  • “flat rate benefit” means any benefit the rate or amount of which is calculated by reference solely to the member’s length of service;

  • “average salary method”, [F406“cash balance method”,] “final salary method”, “flat rate method” and “money purchase method” have the meanings given in Schedule 2.

  • [F407“pensionable earnings”, in relation to a member of a pension scheme, means earnings by reference to which benefits under the scheme are calculated.]

(5)The fact that a scheme provides for the amount of the pension or other benefit for a member or for any other person in respect of him to be increased during the pre-pension period—

(a)by the percentages specified during that period under section 132 of the M17Social Security Administration (Northern Ireland) Act 1992; F408. . . [F409or

(b)under any arrangement which maintains the value of the pension or other benefit by reference to the rise in [F410the general level of prices] during that period,]

F408(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

does not in itself result in conflict with this section, if the increase falls to be determined by reference to an amount from which the guaranteed minimum for a member or a member’s [F411widow, widower [F412, surviving same sex spouse] or surviving civil partner] has not been deducted.

F413(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F402Words in s. 80(3) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 6 para. 2(2)

F404S. 80(3AA) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 6 para. 2(3)

F408S. 80(5)(b) and the word “or” immediately preceding repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 52, Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

Marginal Citations

81 Revaluation not to apply to substituted benefit.N.I.

Nothing in this Chapter is to be construed as requiring the revaluation of any pension or other benefit provided by virtue of section 69(2)(b) [F414or 97D(2)(b)] by way of complete substitute for another pension or benefit.

Textual Amendments

82 Supplementary provisions.N.I.

(1)In making any calculation for the purposes of this Chapter in relation to any occupational pension scheme—

(a)any commutation, forfeiture or surrender of,

(b)any charge or lien on, and

(c)any set-off against,

the whole or part of a pension shall be disregarded.

(2)The same money may not be treated as providing both the increase in benefit required by this Chapter and the benefit required by Chapter III.

Chapter IIIN.I. Protection of Increases in Guaranteed Minimum Pensions (“Anti-franking”)

Modifications etc. (not altering text)

C75Pt. 4 Ch. 3 (ss. 83-88) modified (12.2.2001 for specified purposes) by 2000 c. 4 (N.I.), s. 52, Sch. 5 Pt. II paras. 12-15 (with s. 66(6)); S.R. 2000/374, art. 2(e) (art. 2(e)(ii) was omitted by virtue of S.R. 2001/141, art. 3

C77Pt. 4 Ch. 3 modified (1.4.2015) by The Teachers Pension Scheme (Consequential Provisions) Regulations (Northern Ireland) 2015 (S.R. 2015/170), regs. 1, 9(1) (which amending provision ceases to have effect (6.4.2016) by virtue of S.R. 2016/134, reg. 2)

C78Pt. 4 Ch. 3 modified (1.4.2015) by The Public Service (Civil Servants and Others) Pensions (Consequential Provisions) Regulations (Northern Ireland) 2015 (S.R. 2015/81), regs. 1(1), 9(1) (which amending provision ceases to have effect (6.4.2016) by virtue of S.R. 2016/34, reg. 1(3))

C79Pt. 4 Ch. 3 modified (1.4.2015) by The Police Pensions (Consequential Provisions) Regulations (Northern Ireland) 2015 (S.R. 2015/156), regs. 1(2), 9(1) (which amending provision ceases to have effect (6.4.2016) by virtue of S.R. 2016/24, reg. 1(2))

C80Pt. 4 Ch. 3 modified (1.4.2015) by The Health Service Workers (Consequential Provisions) Regulations (Northern Ireland) 2015 (S.R. 2015/167), regs. 1, 9(1) (which amending provision ceases to have effect (6.4.2016) by virtue of S.R. 2016/163, reg. 2)

C81Pt. 4 Ch. 3 modified (1.4.2015) by The Firefighters Pension Scheme (Consequential Provisions) Regulations (Northern Ireland) 2015 (S.R. 2015/166), regs. 1, 9(1) (which amending provision ceases to have effect (6.4.2016) by virtue of S.R. 2016/161, reg. 2)

83 General protection principle.N.I.

(1)This subsection applies where—

(a)there is an interval between—

(i)the date on which an earner ceases to be in employment which is contracted-out by reference to an occupational pension scheme [F415that satisfies the requirements of section 5(2)] (“the cessation date”); and

(ii)the date on which his guaranteed minimum pension under that scheme commences (“the commencement of payment date”);

(b)the relevant sum exceeds his guaranteed minimum on the day after the cessation date; and

(c)on the commencement of payment date or at any time after it his guaranteed minimum pension under the scheme exceeds the amount of his guaranteed minimum under it on the day after the cessation date.

(2)This subsection applies where—

(a)there is an interval between the earner’s cessation date and whichever of the following is the earlier—

(i)the date of his death; or

(ii)his commencement of payment date; and

(b)the relevant sum exceeds one half of the earner’s guaranteed minimum on the day after the cessation date; and

(c)at any time when a pension under the occupational pension scheme is required to be paid to the earner’s [F416widow, widower or surviving civil partner, the widow's, widower’s or surviving civil partner’s (as the case may be)] guaranteed minimum pension under the scheme exceeds one half of the earner’s guaranteed minimum on the day after the cessation date.

(3)Where subsection (1) or (2) applies, the weekly rate of the pension payable to the member at any time when that pension is required to be paid or, as the case may be, payable to the [F417widow, widower or surviving civil partner] at any such time as is mentioned in subsection (2)(c) shall be an amount not less—

(a)in a case where by virtue of section 69(2)(b) a pension is provided by way of complete substitute for short service benefit or, as the case may be, for [F418widow's, widower’s or surviving civil partner's] pension, than the weekly rate of that pension; and

(b)in any other case, than the relevant aggregate.

(4)In subsection (3) “the relevant aggregate” means the aggregate of the following—

(a)the relevant sum;

(b)the excess mentioned in subsection (1)(c) or, as the case may be, subsection (2)(c);

(c)any amount which is an appropriate addition at the time in question; and

(d)where the scheme provides that part of the earner’s or, as the case may be, the [F419widow's, widower’s or surviving civil partner's] pension shall accrue after the cessation date by reason of the earner’s employment after that date, the later earnings addition.

(5)To the extent that amounts attributable to transfer credits have accrued by reason of any transfer before 1st January 1985, they are to be disregarded for the purposes of subsections (1)(c), (2)(c) and (4)(b).

(6)Nothing in this section shall be construed as entitling an earner who has not reached normal pension age to any portion of a pension under a scheme to which he would not otherwise be entitled.

(7)This section does not apply to a pension to which a person is entitled in respect of employment if—

(a)the earner left the employment or left it for the last time before 1st January 1985; or

(b)the employment ceased, or ceased for the last time, to be contracted-out in relation to him before that date.

Textual Amendments

84 The relevant sum.N.I.

(1)For the purposes of this Chapter “the relevant sum” means—

(a)in a case where subsection (1) of section 83 applies—

(i)if the earner reaches normal pension age on or before the cessation date, an amount equal to the weekly rate of his pension on the day after the cessation date; and

(ii)if he reaches normal pension age after the cessation date, an amount equal to the weekly rate of any short service benefit which has accrued to him on the cessation date or, where no such benefit has then accrued, any other benefit to which this sub-paragraph applies and which has then accrued to him; and

(b)in a case where subsection (2) of that section applies, an amount equal to the weekly rate at which, on the prescribed assumptions, a pension would have begun to be paid to the [F420widow, widower or surviving civil partner] if that person had satisfied the conditions for entitlement to a pension which are specified in the scheme.

(2)Paragraph (a) of subsection (1) has effect subject to subsection (5) and to sections 83(5) and 87(1), and paragraph (b) of subsection (1) has effect subject to section 83(5).

(3)The benefit other than short service benefit to which subsection (1)(a)(ii) applies is benefit—

(a)which would have been provided as either the whole or part of the earner’s short service benefit; or

(b)of which the earner’s short service benefit would have formed part,

if section 67(1)(a) had effect with the substitution of a reference to the service which the earner had on the cessation date for the reference to 2 years’ qualifying service.

(4)Any such benefit is only to be included in the relevant sum to the extent that it does not exceed the amount which the scheme would have had to provide as short service benefit if section 67(1) had effect as mentioned in subsection (3).

(5)If the payment of any part of the earner’s pension is postponed beyond the cessation date, the relevant sum is an amount equal to what would have been the weekly rate of his pension on the day after the cessation date if there had been no such postponement.

Textual Amendments

85 The appropriate addition.N.I.

(1)For the purposes of this Chapter “appropriate addition” means—

(a)where a scheme provides that part of an earner’s or, as the case may be, a [F421widow's, widower’s or surviving civil partner's] pension shall accrue after the cessation date by reason of the earner’s employment after that date, an amount equal to the part which has so accrued; and

(b)where a scheme provides that an earner’s or, as the case may be, a [F421widow's, widower’s or surviving civil partner's] pension which has accrued before that date shall be enhanced after that date if payment of the earner’s pension is postponed, the amount by which the unguaranteed element of the pension has been enhanced by reason of the postponement.

(2)For the purposes of subsection (1)(b) the unguaranteed element of a pension is—

(a)in the case of an earner’s pension, the excess of the pension on the day after the cessation date over the earner’s guaranteed minimum on that day; and

(b)in the case of the [F422widow's, widower’s or surviving civil partner's] pension, the excess of that pension on that day over one half of the earner’s guaranteed minimum on that day.

Textual Amendments

86 The later earnings addition.N.I.

(1)For the purposes of this Chapter “the later earnings addition” means the amount (if any) by which the assumed later unguaranteed element exceeds the unguaranteed element.

(2)In subsection (1)—

(a)“the unguaranteed element” means the amount by which the relevant sum exceeds the earner’s guaranteed minimum on the day after his cessation date or, in the case of a [F423widow's, widower’s or surviving civil partner's] pension, one half of that minimum; and

(b)“the assumed later unguaranteed element” means the amount by which the relevant sum would exceed the earner’s guaranteed minimum (or, in the case of a [F423widow's, widower’s or surviving civil partner's] pension, one half of that minimum) on the assumptions mentioned in subsection (3).

(3)The assumptions mentioned in subsection (2) are—

(a)that the relevant sum were calculated on the basis that the weekly rate of the pension or benefit which determines that sum had been calculated by reference to the level of earnings by reference to which that rate would have been calculated if the earner’s cessation date had fallen on the earlier of—

(i)the earner’s commencement of payment date, or

(ii)the date on which the earner ceased to be in pensionable service under the scheme; and

(b)that the earner’s guaranteed minimum were such sum as bears the same proportion to the assumed later unguaranteed element as the guaranteed minimum mentioned in subsection (2)(a) bears to the unguaranteed element.

Textual Amendments

87 Special provision where employment continues after it ceases to be contracted-out by reference to scheme.N.I.

(1)If—

(a)an earner’s employment ceases to be contracted-out by reference to an occupational pension scheme but the scheme continues to apply to it; or

(b)an earner transfers from employment which is contracted-out by reference to an occupational pension scheme to employment to which the scheme applies but which is not contracted-out by reference to it,

the amount of any short service or other benefit which has accrued to the earner shall be computed for the purposes of section 84(1)(a)(ii) as it would be computed if he had ceased on the cessation date to be in employment to which the scheme applies.

(2)If—

(a)a benefit under a scheme is conditional on an earner attaining a particular age or having a particular length of service; and

(b)one of the events mentioned in subsection (1) occurs before he has fulfilled the condition; but

(c)he continues to be in employment to which the scheme applies until he has done so,

the earner shall be treated for the purposes of the previous provisions of this Chapter as if that benefit had accrued to him.

88 Supplementary provisions.N.I.

(1)In making any calculation for the purposes of this Chapter—

(a)any commutation, forfeiture or surrender of,

(b)any charge or lien on, and

(c)any set-off against,

the whole or part of a pension shall be disregarded.

(2)In calculating an earner’s guaranteed minimum for the purposes of this Chapter his earnings factor shall be taken to be that factor as increased, except as provided by subsection (3), by the last order under Article 23 of the M18Social Security Pensions (Northern Ireland) Order 1975 or section 130 of the M19Social Security Administration (Northern Ireland) Act 1992 to come into operation before the end of the tax year in which the cessation date falls.

(3)If an earner’s cessation date falls in the tax year in which he attains pensionable age, subsection (2) shall have effect in relation to him as if for the words from “tax year” onwards there were substituted the words “final relevant year”.

(4)In this section “final relevant year” has the same meaning as in section 12.

(5)Any reference in this Chapter to the weekly rate of a pension is to be construed, in relation to a pension payable otherwise than weekly, as a reference to the weekly sum which would be payable in respect of a pension of that amount payable weekly.

Marginal Citations

[F424PART 4ZAU.K.TRANSFERS AND CONTRIBUTION REFUNDS]

Textual Amendments

F424Pts. 4, 5 renumbered as Pt. 4ZA Chs. 1, 2 and Pt. 4ZA heading inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 50(1)(2)(a) (with s. 87)

[F425CHAPTER 1N.I.TRANSFER RIGHTS: GENERAL]

Textual Amendments

F425Pt. 4ZA Ch. 1 heading substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 50(1)(2)(b) (with s. 87)

Modifications etc. (not altering text)

C87Pt. 4 Ch. 4 applied (31.5.1994) by S.I. 1994/1432, art. 6(4)

C88Pt. 4 Ch. 4: power to modify conferred (25.2.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 20(7)(a) (with art. 285(5)); S.R. 2005/48, art. 2(4)(a)(b), Sch. Pt. 4

C97Pt. 4ZA Ch. 1: power to modify conferred (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 5 para. 1(6)(a); S.R. 2022/197, art. 3(a)

[F42689 Scope of Chapter 1N.I.

(1)This Chapter applies to a member of a pension scheme if all of the following conditions are met.

(2)Condition 1 is that the member has accrued rights to any category of benefits under the scheme rules.

(3)Condition 2 is that no crystallisation event has occurred in relation to the member's accrued rights to benefits in that category (see subsection (7)).

(4)Condition 3 is that—

(a)the member is no longer accruing rights to benefits in that category (see subsection (8)), and

(b)in the case of benefits that are not flexible benefits, the member stopped accruing those rights at least one year before normal pension age.

(5)But this Chapter does not apply to—

(a)a member of a salary related occupational pension scheme whose pensionable service terminated before 1 January 1986 and in respect of whom prescribed requirements are satisfied;

(b)a member of a personal pension scheme which is comprised in an annuity contract made before 4 January 1988.

(6)In this Chapter a reference to a “category” of benefits is to one of the following three categories—

(a)money purchase benefits;

(b)flexible benefits other than money purchase benefits;

(c)benefits that are not flexible benefits.

(7)For the purposes of Condition 2 a crystallisation event occurs in relation to a member's accrued rights to benefits in a category when—

(a)payment of a pension in respect of any of the benefits has begun,

(b)in the case of money purchase benefits [F427other than collective money purchase benefits], sums or assets held for the purpose of providing any of the benefits are designated as available for the payment of drawdown pension (as defined by paragraph 4 of Schedule 28 to the Finance Act 2004), or

(c)in the case of a personal pension scheme, sums or assets held for the purpose of providing any of the benefits are applied for purchasing an annuity or insurance policy.

(8)For the purposes of Condition 3 a member stops accruing rights to a category of benefits when there are no longer arrangements in place for the accrual of rights to benefits in that category for or in respect of the member.

(9)In this section a reference to accrued rights does not include pension credit rights.

(10)Regulations may—

(a)provide for this Chapter not to apply in relation to a person of a prescribed description;

(b)provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description;

(c)modify the application of this Chapter in relation to a member who has accrued rights to benefits of a prescribed description.

[F428(10A)Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated as a separate scheme for the purposes of this Chapter.]

(11)In the following provisions of this Chapter—

(a)a reference to a “member” of a pension scheme is a reference to a member to whom this Chapter applies, and

(b)a reference to a member's “transferrable rights” are to any rights in relation to a category of benefits by virtue of which this Chapter applies to the member.

Textual Amendments

F426Ss. 89, 89A, 90 substituted for ss. 89, 90 (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87)

F427Words in s. 89(7)(b) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), ss. 76(2)(a), 131(2)(a)(3)(a)

F428S. 89(10A) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), ss. 76(2)(b), 131(2)(a)(3)(a)

89ARight to statement of entitlement: benefits other than money purchaseN.I.

(1)The trustees or managers of a pension scheme must, on the application of any member, provide the member with a statement of entitlement in respect of the member's transferrable rights in relation to categories of benefits other than money purchase benefits.

(2)In the case of a member with transferrable rights in relation to two categories of benefits other than money purchase benefits, the application may relate to transferrable rights in relation to either or both of those categories.

(3)For the purposes of this Chapter a member's “statement of entitlement” is a written statement of the amount of the cash equivalent at the guarantee date of the transferrable rights to which the application under subsection (1) relates.

(4)In this Chapter “the guarantee date” means the date by reference to which the value of the cash equivalent is calculated, and must be—

(a)within the prescribed period beginning with the date of the application, and

(b)within the prescribed period ending with the date on which the statement of entitlement is provided to the member.

(5)Regulations may make provision in relation to applications under this section and may, in particular, restrict the making of successive applications.

(6)If the trustees or managers of a pension scheme fail to comply with subsection (1), Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

Textual Amendments

F426Ss. 89, 89A, 90 substituted for ss. 89, 90 (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87)

90 Right to cash equivalentN.I.

(1)A member of a pension scheme who has received a statement of entitlement under section 89A acquires a right to take the cash equivalent shown in that statement in accordance with this Chapter.

(2)A member of a pension scheme who has transferrable rights in relation to money purchase benefits acquires a right to take their cash equivalent in accordance with this Chapter.]

Textual Amendments

F426Ss. 89, 89A, 90 substituted for ss. 89, 90 (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87)

91 Ways of taking right to cash equivalent.N.I.

[F429(1)A member of a pension scheme who has acquired a right to take a cash equivalent in accordance with this Chapter may only take it by making an application in writing to the trustees or managers of the scheme requiring them to use the cash equivalent in one of the ways specified below.

(1A)In the case of a right acquired under section 90(1), the application must be made—

(a)within the period of 3 months beginning with the guarantee date shown in the relevant statement of entitlement, and

(b)if the cash equivalent relates to benefits that are not flexible benefits, by no later than the date that falls one year before the member attains normal pension age.]

(2)In the case of a member of an occupational pension scheme [F430 that is not an unfunded public service defined benefits scheme] , the ways referred to in subsection (1) are—

(a)for acquiring transfer credits allowed under the rules of another occupational pension scheme—

(i)the trustees or managers of which are able and willing to accept payment in respect of the member’s [F431transferrable rights] , and

(ii)which satisfies prescribed requirements;

(b)for acquiring rights allowed under the rules of a personal pension scheme—

(i)the trustees or managers of which are able and willing to accept payment in respect of the member’s [F432transferrable rights] , and

(ii)which satisfies prescribed requirements;

(c)for purchasing from one or more [F433insurer] such as are mentioned in section 15(4)(a), chosen by the member and willing to accept payment on account of the member from the trustees or managers, one or more annuities which satisfy prescribed requirements;

(d)for subscribing to other pension arrangements which satisfy prescribed requirements.

[F434(2A)In the case of a member of an occupational pension scheme that is an unfunded public service defined benefits scheme, the ways referred to in subsection (1) are—

(a)for acquiring transfer credits allowed under the rules of another occupational pension scheme if—

(i)the benefits that may be provided under the other scheme by virtue of the transfer credits are not flexible benefits,

(ii)the trustees or managers of the other scheme are able and willing to accept payment in respect of the member's transferrable rights, and

(iii)the other scheme satisfies requirements prescribed in regulations made by the Department or the Department of Finance and Personnel;

(b)for acquiring rights allowed under the rules of a personal pension scheme if—

(i)the benefits that may be provided under the personal pension scheme by virtue of the acquired rights are not flexible benefits,

(ii)the trustees or managers of the personal pension scheme are able and willing to accept payment in respect of the member's transferrable rights, and

(iii)the personal pension scheme satisfies requirements prescribed in regulations made by the Department or the Department of Finance and Personnel;

(c)for purchasing from one or more insurers such as are mentioned in section 15(4)(a), chosen by the member and willing to accept payment on account of the member from the trustees or managers, one or more annuities which satisfy requirements prescribed in regulations made by the Department or the Department of Finance and Personnel;

(d)for subscribing to other pension arrangements which satisfy requirements prescribed in regulations made by the Department or the Department of Finance and Personnel.

(2B)The Department of Finance and Personnel may by regulations provide for sub-paragraph (i) of subsection (2A)(a) or (b) not to apply in specified circumstances or in relation to specified schemes or schemes of a specified description.

(2C)In subsections (2) and (2A) “unfunded public service defined benefits scheme” means a public service pension scheme that—

(a)is a defined benefits scheme within the meaning given by section 34 of the Public Service Pensions Act (Northern Ireland) 2014, and

(b)meets some or all of its liabilities otherwise than out of a fund accumulated for the purpose during the life of the scheme.]

(3)In the case of a member of a personal pension scheme, the ways referred to in subsection (1) are—

(a)for acquiring transfer credits allowed under the rules of an occupational pension scheme—

(i)the trustees or managers of which are able and willing to accept payment in respect of the member’s [F435transferrable rights] , and

(ii)which satisfies prescribed requirements;

(b)for acquiring rights allowed under the rules of another personal pension scheme—

(i)the trustees or managers of which are able and willing to accept payment in respect of the member’s [F436transferrable rights] , and

(ii)which satisfies prescribed requirements;

(c)for subscribing to other pension arrangements which satisfy prescribed requirements.

F437(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)Except in such circumstances as may be prescribed—

(a)subsection (2) is to be construed as if paragraph (d) were omitted; and

(b)subsection (3) is to be construed as if paragraph (c) were omitted.

[F438(5A)Except in such circumstances as may be prescribed in regulations made by the Department or the Department of Finance and Personnel, subsection (2A) is to be construed as if paragraph (d) were omitted.]

(6)Without prejudice to the generality of subsections (2) [F439, (2A) ] and (3), the powers conferred by those subsections include power to provide that a scheme or pension arrangement or, in the case of subsection (2) [F440 or (2A)] , an annuity must satisfy requirements of the Inland Revenue.

[F441(6A)Regulations may extend the period specified in subsection (1A)(a) in prescribed circumstances.]

F442(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F442(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)An application to the trustees or managers of the scheme under subsection (1) is to be taken to have been made if it is delivered to them personally, or sent by post in a registered letter or by the recorded delivery service.

Textual Amendments

F429S. 91(1)(1A) substituted for s. 91(1) (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 55(2) (with s. 87)

F430Words in s. 91(2) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 71(2), 89(3)(b) (with s. 87)

F431Words in s. 91(2)(a)(i) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 55(3) (with s. 87)

F432Words in s. 91(2)(b)(i) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 55(3) (with s. 87)

F433Words in s. 91(2)(c) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 133

F434S. 91(2A)-(2C) inserted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), ss. 71(3), 89(1)(b)(3)(b) (with s. 87)

F435Words in s. 91(3)(a)(i) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 55(3) (with s. 87)

F436Words in s. 91(3)(b)(i) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 55(3) (with s. 87)

F438S. 91(5A) inserted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), ss. 71(4), 89(1)(b)(3)(b) (with s. 71(8)(9), 87)

F439Words in s. 91(6) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 71(5)(a), 89(3)(b) (with s. 71(8)(9), 87)

F440Words in s. 91(6) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 71(5)(b), 89(3)(b) (with s. 71(8)(9), 87)

F441S. 91(6A) inserted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 55(4) (with s. 87)

F442S. 91(7)(8) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 55(5) (with s. 87)

92 Further provisions concerning exercise of option under s. 91.N.I.

[F443(1)A member who has acquired a right to take a cash equivalent under section 90(1) or (2) may exercise the option conferred by section 91(1) in relation to different portions of that cash equivalent in different ways, but a member who exercises that option must do so—

(a)in relation to the whole of that cash equivalent, or

(b)if subsection (2) applies, in relation to the whole of the balance mentioned in subsection (3).]

(2)This subsection applies where—

(a)the trustees or managers—

(i)of an occupational pension scheme F444... , or

(ii)of a personal pension scheme F445..., F446...

F446(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

are able or willing to accept a transfer payment only in respect of a member’s rights other than his [F447transferrable rights] to guaranteed minimum pensions [F448his accrued rights so far as attributable to service in contracted-out employment on or after the principal appointed day] F449...; and

(b)the member has not required the trustees or managers of the scheme from which he is being transferred to use the portion of his cash equivalent which represents those [F447transferrable rights] in any of the ways specified in subsection (2) [F450, subsection (2A)] or, as the case may be, subsection (3) of section 91.

(3)Where subsection (2) applies this section and sections 90, 91 and 93 are to be construed as conferring on the member an option only in respect of the balance of the cash equivalent to which the member would otherwise be entitled, after deduction of an amount sufficient for the trustees or managers of the scheme from which he is being transferred to meet their liability—

(a)in the case of a transfer from an occupational pension scheme, in respect of the member’s and the member’s [F451widow's, widower’s or surviving civil partner’s (as the case may be)] [F452pensions, being guaranteed minimum pensions or pensions so far as attributable to service in contracted-out employment on or after the principal appointed day] F453... ; F454...

F455(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F456(4)Where a member of a pension scheme—

(a)is entitled to make an application under section 91(1) in relation to any category of benefits, and

(b)is also entitled to give a transfer notice under section 97F(1) to the trustees or managers of the scheme in relation to benefits in the same category (or would be entitled to do so but for section 97G(2)),

the member may not, if the scheme so provides, make an application under section 91(1) in relation to that category of benefits without also giving a transfer notice under section 97F(1) in relation to that category of benefits.]

Textual Amendments

F443S. 92(1) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 56(2) (with s. 87)

F444Words in s. 92(2)(a)(i) omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 39

F446S. 92(2)(a)(iii) and the preceding word “or” ceased to have effect (1.12.1999 for certain purposes only) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 2(2)(b) (with transitional provisions in art. 75(1)(2)) and repealed (25.4.2000) by S. I. 1999/3147, art. 17, Sch. 10 Pt. I; S.R. 2000/133, art. 2(3), Sch. Pt. II

F447Words in s. 92(2)(a)(b) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 56(3) (with s. 87)

F448Words in s. 92(2)(a) inserted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 53(a); S.R. 1997/192, art. 2(b)

F450Words in s. 92(2)(b) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 71(6), 89(3)(b) (with ss. 71(8)(9), 87)

F452Words in s. 92(3)(a) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 53(b); S.R. 1997/192, art. 2(b)

F456S. 92(4) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 56(4) (with s. 87)

93 Calculation of cash equivalents.N.I.

(1)Cash equivalents are to be calculated and verified [F457—

(a)]in the prescribed manner[F458, and

(b)where a designation has been made under section 93A, in accordance with regulations under section 93B.]

[F459(1A)Where a member applies under section 91 to take a cash equivalent that relates to money purchase benefits, the cash equivalent is to be calculated by reference to the date of the application.]

(2)Regulations may provide—

(a)that in calculating cash equivalents [F460that relate to money purchase benefits] account shall be taken—

(i)of any surrender, commutation or forfeiture of the whole or part of a member’s pension which occurs before the trustees or managers of the scheme of which he is a member do what is needed to comply with what he requires under section 91;

(ii)in a case where subsection (2) of section 92 applies, of the need to deduct an appropriate amount to provide for the liabilities mentioned in subsection (3) of that section;

[F461(aa)for a cash equivalent [F462that relates to any category of benefits] to be reduced so as to take account of the extent (if any) to which an entitlement has arisen under the scheme to the present payment of the whole or any part of—

(i)any pension; or

(ii)any benefit in lieu of pension; and]

(b)that in prescribed circumstances a cash equivalent shall be increased or reduced.

(3)Without prejudice to the generality of subsection (2), the circumstances that may be specified by virtue of paragraph (b) of that subsection include—

F463(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)failure by the trustees or managers of the scheme to do what is needed to carry out what a member of the scheme requires within 6 months of [F464the appropriate date]

(c)the state of the funding of the scheme.

[F465(3ZA)Where, in the case of an application from a member under section 91 that relates to money purchase benefits that are collective money purchase benefits, regulations under section 95(2)(c) provide for a period longer than 6 months, subsection (3)(b) is to be read as if the reference to 6 months were a reference to that longer period.]

[F466(3A)For the purposes of subsection (3), the “appropriate date”—

(a)in relation to a cash equivalent that relates to benefits other than money purchase benefits, means the guarantee date for the purposes of the relevant statement of entitlement under section 89A, and

(b)in relation to a cash equivalent that relates to money purchase benefits, means the date on which the trustees or managers receive an application from the member under section 91.

(3B)Where regulations under subsection (2)(b) provide for the cash equivalent shown in a statement of entitlement to be increased or reduced after the member has made an application under section 91, the regulations may provide for the application under section 91 to lapse (but this does not prevent the member making a fresh application in respect of the increased or reduced cash equivalent).]

(4)Regulations under subsection (2) may specify as the amount by which a cash equivalent is to be reduced such an amount that a member has no right to receive anything.

Textual Amendments

F457Word in s. 93(1) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 72(2)(a), 89(3)(b) (with s. 87)

F458S. 93(1)(b) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 72(2)(b), 89(3)(b) (with s. 87)

F460Words in s. 93(2)(a) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 57(3)(a) (with s. 87)

F461Word in s. 93(2)(a) substituted (20.11.2000) for s. 93(2)(aa) by 2000 c. 4 (N.I.), s. 52, Sch. 5 Pt. I para. 5(1) (with s. 66(6))

F462Words in s. 93(2)(aa) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 57(3)(b) (with s. 87)

F463S. 93(3)(a) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 57(4) (with s. 87)

F464Words in s. 93(3)(b) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 165, Sch. 4 para. 6(b); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F465S. 93(3ZA) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), ss. 76(3), 131(2)(a)(3)(a)

F466S. 93(3A)(3B) substituted for s. 93(3A) (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 57(5) (with s. 87)

[F46793ADesignation of funded public service defined benefits schemesN.I.

(1)The relevant Department may designate a funded public service defined benefits scheme as a scheme to which regulations under section 93B are to apply for a specified period of no more than 2 years.

(2)The power under subsection (1) may be exercised only if the relevant Department considers that—

(a)there is an increased likelihood of payments out of public funds, or increased payments out of public funds, having to be made into the scheme so that it can meet its liabilities, and

(b)the increased likelihood is connected with the exercise or expected future exercise of rights to take a cash equivalent acquired under section 90.

(3)The power under subsection (1) may be exercised in relation to the whole or any part of a scheme.

(4)In the application of subsection (2) to part of a scheme, paragraph (a) is to be read as if it referred to the scheme's liabilities relating to that part.

(5)A designation under subsection (1)—

(a)may be extended (on more than one occasion) for a period of no more than 2 years;

(b)may be revoked.

(6)The relevant Department must give notice in writing of a designation or its extension or revocation to the trustees or managers of the scheme (except in a case where the relevant Department is the trustees or managers).

(7)If the trustees or managers of a funded public service defined benefits scheme, or part of such a scheme, that is not designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (2) are met in relation to the scheme or part they must notify—

(a)the Department of Finance and Personnel, and

(b)(where relevant) each Northern Ireland department by whom, or with whose approval, the scheme was established.

(8)If the trustees or managers of a scheme, or part of a scheme, that is designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (2) are no longer met in relation to the scheme or part they must notify—

(a)the Department of Finance and Personnel, and

(b)(where relevant) each Northern Ireland department by whom, or with whose approval, the scheme was established.

(9)In this section—

  • “funded public service defined benefits scheme” means a public service pension scheme that—

    (a)

    is a defined benefits scheme within the meaning given by section 34 of the Public Service Pensions Act (Northern Ireland) 2014, and

    (b)

    meets its liabilities out of a fund accumulated for the purpose during the life of the scheme;

  • “local authority” means a district council constituted under section 1 of the Local Government Act (Northern Ireland) 1972;

  • “payment out of public funds” means a payment provided directly or indirectly—

    (a)

    out of the Northern Ireland Consolidated Fund, or

    (b)

    by a local authority;

  • “the relevant Department”, in relation to a funded public service defined benefits scheme, means either of the following—

    (a)

    the Department of Finance and Personnel, or

    (b)

    any Northern Ireland department by whom, or with whose approval, the scheme was established.

(10)The Department of Finance and Personnel may by regulations make modifications of the definition of “the relevant Department” in subsection (9).]

Textual Amendments

F467S. 93A inserted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), ss. 72(3), 89(1)(b)(3)(b) (with s. 87)

[F46893BReduction of cash equivalents in case of section 93A designated schemesN.I.

(1)The Department of Finance and Personnel may by regulations provide that where, under section 91(1), a member of a designated scheme requires the trustees or managers to use a cash equivalent for acquiring a right or entitlement to flexible benefits under the rules of another pension scheme the cash equivalent must be reduced by an amount determined in accordance with the regulations.

(2)Regulations under subsection (1) may not require a reduction in cases where a scheme ceases to be a designated scheme before the date on which the trustees or managers do what is needed to carry out what the member requires.

(3)Regulations under subsection (1) may produce the result (alone or in conjunction with regulations under section 93) that the amount by which a cash equivalent is to be reduced is such an amount that a member has no right to receive anything.

(4)In subsection (1), “designated scheme” means a funded public service defined benefits scheme, or part of such a scheme, that (on the date of the application under section 91(1)) is designated under section 93A.]

Textual Amendments

F468S. 93B inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 72(4), 89(3)(b) (with s. 87)

[F46994Loss of right to cash equivalentN.I.

(1)A member of a pension scheme who acquires the right to take a cash equivalent under section 90(1) loses that right if no application to take the cash equivalent is made within the period required by section 91(1A) or (6A).

(2)A member of a pension scheme loses the right to take a cash equivalent in accordance with this Chapter if, after the member makes an application under section 91, the duty of the trustees or managers to do what is needed to carry out what the member requires is extinguished by section 95(2A).

(3)Nothing in subsection (1) or (2) prevents the member from later acquiring a new right to take a cash equivalent in relation to the same benefits.

(4)A member of a pension scheme loses the right to take a cash equivalent in accordance with this Chapter if the scheme is wound up.]

Textual Amendments

F469S. 94 substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 58 (with s. 87)

95 Trustees’ duties after exercise of option.N.I.

(1)Where—

(a)a member has exercised the option conferred by section 91; and

(b)the trustees or managers of the scheme have done what is needed to carry out what the member requires,

the trustees or managers shall be discharged from any obligation to provide benefits to which the cash equivalent related except, in such cases as are mentioned in section 92(2), to the extent that an obligation to provide such guaranteed minimum pensions F470... continues to subsist.

[F471(2)Subject to the following provisions of this section, if the trustees or managers of a scheme receive an application under section 91 they must do what is needed to carry out what the member requires—

(a)in the case of an application that relates to benefits other than money purchase benefits, within 6 months beginning with the guarantee date shown in the relevant statement of entitlement, [F472and]

(b)in the case of an application that relates to money purchase benefits [F473other than collective money purchase benefits], within 6 months beginning with the date of the application][F474, and

(c)in the case of an application which relates to money purchase benefits that are collective money purchase benefits, within 6 months beginning with the date of the application or such longer period beginning with that date as may be prescribed.]

[F475(2A)Subsection (2) does not apply if—

(a)the trustees or managers have been unable to carry out the check required by section 51 of the Pension Schemes Act 2015 by reason of factors outside their control, or

(b)the trustees or managers have carried out the check required by section 51 of the Pension Schemes Act 2015 but the check did not confirm that the member had received appropriate independent advice.]

(3)If—

(a)disciplinary proceedings or proceedings before a court have been begun against a member of an occupational pension scheme F476...; and

(b)it appears to the trustees or managers of the scheme that the proceedings may lead to the whole or part of the pension or benefit in lieu of a pension payable to the member or [F477the member’s surviving spouse or civil partner] being forfeited; and

(c)the date before which they would (apart from this subsection) be obliged under subsection (2) to carry out what the member requires is earlier than the end of the period of 3 months after the conclusion of the disciplinary or court proceedings (including any proceedings on appeal),

then, subject to the following provisions of this section, they must instead do so before the end of that period of 3 months.

F478(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F479(4)The Regulatory Authority may, in prescribed circumstances, [F480by direction,] grant an extension of the period within which the trustees or managers of the scheme are obliged to do what is needed to carry out what a member of the scheme requires.

(4A)Regulations may make provision [F481requiring applications for extensions under subsection (4) to meet prescribed requirements] .]

[F482(4B)Regulations may extend the period for compliance under subsection (2) or (3) in prescribed circumstances.]

F483(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F484(7)Where the trustees or managers of an occupational pension scheme have not done what is needed to carry out what a member of the scheme requires within 6 months of the date mentioned in paragraph (a) or (b) of subsection (2)—

(a)they must, except in prescribed cases, notify the Regulatory Authority of that fact within the prescribed period, and

(b)Article 10 of the Pensions (Northern Ireland) Order 1995 (power of the Regulatory Authority to impose civil penalties) shall apply to any trustee or manager who has failed to take all such steps as are reasonable to ensure that it was so done.

(8)Regulations may provide that in prescribed circumstances subsection (7) shall not apply in relation to an occupational pension scheme.]

Textual Amendments

F471S. 95(2) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 59(2) (with s. 87)

F472Word in s. 95(2)(a) omitted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by virtue of Pension Schemes Act 2021 (c. 1), ss. 76(4)(a), 131(2)(a)(3)(a); S.R. 2022/197, art. 3(a)

F473Words in s. 95(2)(b) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), ss. 76(4)(b), 131(2)(a)(3)(a); S.R. 2022/197, art. 3(a)

F474S. 95(2)(c) and word inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), ss. 76(4)(c), 131(2)(a)(3)(a); S.R. 2022/197, art. 3(a)

F475S. 95(2A) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 53(2), 89(3)(b) (with s. 87)

F476Words in s. 95(3)(a) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 59(3) (with s. 87)

F478S. 95(3A) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 59(4) (with s. 87)

F479S. 95(4)(4A) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) for s. 95(4)(5) by S.I. 1995/3213 (N.I. 22), art. 165, Sch. 4 para. 8(c); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F482S. 95(4B) inserted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 59(5) (with s. 87)

F484S. 95(7)(8) added (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 165, Sch. 4 para. 8(e); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C98S. 95 modified (28.3.1997) by S.R. 1997/192, art. 5 (with art. 9)

[F48595ATrustees' further duties: collective money purchase benefitsN.I.

(1)If the trustees receive an application under section 91 relating to money purchase benefits that are collective money purchase benefits—

(a)they must give the member notice in writing of the cash equivalent that relates to those benefits, and

(b)they must not without the written consent of the member enter into an agreement with a third party to use the member's cash equivalent in a way specified in section 91(2) before the end of the period mentioned in subsection (2).

(2)The period referred to in subsection (1)(b) is—

(a)the period of 3 weeks beginning with the day after the day on which the notice is given, or

(b)such other period as may be specified in regulations.

(3)Any action taken in contravention of subsection (1)(b) is void.]

Textual Amendments

F485S. 95A inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), ss. 76(5), 131(2)(a)(3)(a)

96 Withdrawal of applications.N.I.

(1)Subject to [F486subsections (2) and (2A)], a member of a scheme may withdraw an application under section 91 by giving the trustees or managers of the scheme notice in writing that he no longer wishes them to do what is needed to carry out what he previously required.

(2)Such a notice shall be of no effect if it is given to the trustees or managers at a time when, in order to comply with what the member previously required, they have already entered into an agreement with a third party to use the whole or part of the member’s cash equivalent in a way specified in subsection (2)[F487, subsection (2A)] or, as the case may be, subsection (3) of section 91.

[F488(2A)If the making of the application depended on the giving of a notice under section 97F(1), the application may only be withdrawn if the notice is also withdrawn.]

(3)A member who withdraws an application may make another.

(4)A notice to the trustees or managers of a scheme under this section is to be taken to have been given if it is delivered to them personally, or sent by post in a registered letter or by recorded delivery service.

Textual Amendments

F487Words in s. 96(2) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 71(7), 89(3)(b) (with s. 71(8)(9), 87)

[F48996AProhibition on excluding future accruals etcN.I.

Except as mentioned in sections 92(4) and 97G(4), a pension scheme may not contain rules that would have the effect of—

(a)preventing a member from exercising a right under this Chapter in relation to a category of benefits without also exercising a right under this Chapter or otherwise to require a transfer payment to be made in respect of another category of benefits, or

(b)preventing a member who exercises a right under this Chapter in relation to a category of benefits from accruing rights to benefits in another category.

Textual Amendments

F489Ss. 96A-96D inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 60 (with s. 87)

96BMeaning of “scheme rules”: occupational pension schemesN.I.

(1)In this Chapter references to the scheme rules, in relation to a pension scheme, are references to—

(a)the rules of the scheme, except so far as overridden by a relevant legislative provision,

(b)the relevant legislative provisions, to the extent that they have effect in relation to the scheme and are not reflected in the rules of the scheme, and

(c)any provision which the rules of the scheme do not contain but which the scheme must contain if it is to conform with the requirements of Chapter 1 of Part 4.

(2)For the purposes of subsection (1)—

(a)“relevant legislative provision” means any provision contained in any of the following provisions—

(i)Schedule 5 to the Social Security (Northern Ireland) Order 1989;

(ii)Chapter 2 or 3 of Part 4 or regulations made under either of those Chapters;

(iii)this Part or regulations made under this Part;

(iv)Part 4A or regulations made under that Part;

(v)section 106(1);

(vi)Part 2 of the Pensions (Northern Ireland) Order 1995 or orders or regulations made or having effect as if made under that Part;

(vii)Article 28 of the Welfare Reform and Pensions (Northern Ireland) Order 1999;

(viii)any provision mentioned in Article 279(2) of the Pensions (Northern Ireland) Order 2005;

(ix)section 61 of the Pension Schemes Act 2015;

(x)regulations made under section 62 or 63 of the Pension Schemes Act 2015;

[F490(xi)regulations made under Schedule 17 to the Pensions Act (Northern Ireland) 2015.]

[F491(xii)regulations made under Schedule 18 to the Pensions Act (Northern Ireland) 2015.]

[F492(xiia)sections 21, 23, 26, 28, 29 and 33 of and Schedule 1 to the Pension Schemes Act (Northern Ireland) 2021;]

[F493(xiii)regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021;

(xiv)sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;]

(b)a relevant legislative provision is to be taken to override any of the provisions of the scheme if, and only if, it does so by virtue of any of the following provisions—

(i)paragraph 3 of Schedule 5 to the Social Security (Northern Ireland) Order 1989;

(ii)section 125(1);

(iii)Article 114(1) of the Pensions (Northern Ireland) Order 1995;

(iv)Article 28(4) of the Welfare Reform and Pensions (Northern Ireland) Order 1999;

(v)Article 279(1) of the Pensions (Northern Ireland) Order 2005;

(vi)section 61(3) of the Pension Schemes Act 2015;

(vii)regulations made under section 62(4) or 63(4) of the Pension Schemes Act 2015.

[F494(viii)regulations made under paragraph 16 of Schedule 17 to the Pensions Act (Northern Ireland) 2015.]

[F495(ix)regulations made under paragraph 6 of Schedule 18 to the Pensions Act (Northern Ireland) 2015.]

[F496(ixa)sections 21(7), 23(7), 26(9), 28(6), 29(2) and 33(5) of and paragraph 1(7) of Schedule 1 to the Pension Schemes Act (Northern Ireland) 2021.]

[F497(x)sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.]

Textual Amendments

F489Ss. 96A-96D inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 60 (with s. 87)

F493S. 96B(2)(a)(xiii)(xiv) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), ss. 76(6)(a), 131(2)(a)(3)(a)

F497S. 96B(2)(b)(x) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), ss. 76(6)(b), 131(2)(a)(3)(a)

96CMeaning of “normal pension age” in this ChapterN.I.

(1)In this Chapter “normal pension age”, in relation to a category of benefits under a pension scheme, means—

(a)in a case where the scheme is an occupational pension scheme and those benefits consist only of a guaranteed minimum pension, the earliest age at which the member is entitled to receive the guaranteed minimum pension on retirement from any employment to which the scheme applies,

(b)in any other case where the scheme is an occupational pension scheme and the scheme provides for the member to become entitled to receive any of those benefits at a particular age on retirement from any employment to which the scheme applies, the earliest age at which the member becomes entitled to receive any of the benefits, and

(c)in a case not falling within paragraph (a) or (b), normal minimum pension age as defined by section 279(1) of the Finance Act 2004.

(2)For the purposes of subsection (1) any scheme rule making special provision as to early retirement on grounds of ill-health or otherwise is to be disregarded.

Textual Amendments

F489Ss. 96A-96D inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 60 (with s. 87)

96DInterpretation of ChapterN.I.

In this Chapter—

  • “accrued rights”, in relation to a member of a pension scheme, means rights that have accrued to or in respect of the member to benefits under the scheme;

  • “category”, in relation to benefits, has the meaning given by section 89(6);

  • “flexible benefit” has the meaning given by section 74 of the Pension Schemes Act 2015;

  • “guarantee date”, in relation to a member who has received a statement of entitlement, has the meaning given by section 89A;

  • “member” is to be read in accordance with section 89(11);

  • “normal pension age” has the meaning given by section 96C;

  • “pension credit rights”, in relation to a member of a pension scheme, means rights to benefits under the scheme which are attributable (directly or indirectly) to a pension credit;

  • “salary related occupational pension scheme”: an occupational pension scheme is “salary related” if—

    (a)

    the scheme is not a scheme under which all the benefits that may be provided are money purchase benefits, and

    (b)

    the scheme does not fall within a prescribed class;

  • “scheme rules”, in relation to a pension scheme, has the meaning given by section 96B;

  • “statement of entitlement” has the meaning given by section 89A;

  • “transferrable rights” is to be read in accordance with section 89(11).]

Textual Amendments

F489Ss. 96A-96D inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 60 (with s. 87)

97 Supplementary provisions.N.I.

In making any calculation for the purposes of this Chapter—

(a)any charge or lien on, and

(b)any set-off against,

the whole or part of a pension shall be disregarded.

[F498[F499CHAPTER 2N.I.EARLY LEAVERS: CASH TRANSFER SUMS AND CONTRIBUTION REFUNDS]

Textual Amendments

F498Pt. 4 Ch. 5 inserted (1.1.2006 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 241 (with art. 285(5)); S.R. 2005/543, art. 2(5), Sch. Pt. 5

F499Pt. 4ZA Ch. 2 heading substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 50(1)(2)(c) (with s. 87)

Modifications etc. (not altering text)

C101Pt. 4 Ch. 5 applied by S.I. 1995/3213 (N.I. 22), art. 73(9) (as substituted (6.4.2005 for specified purposes, 1.1.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 247 (with art. 285(5)); S.R. 2005/48, art. 2(4)(a)(b), Sch. Pt. 4 (with art. 2(8)(9)))

C110Pt. 4ZA Ch. 2: power to modify conferred (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 5 para. 1(6)(b)

97AAScope of Chapter 5N.I.

(1)This Chapter applies to any member of an occupational pension scheme to which Chapter 1 applies (see section 65(3)) if—

(a)his pensionable service terminates before he attains normal pension age, and

(b)on the date on which his pensionable service terminates—

(i)the three month condition is satisfied, but

(ii)he does not have relevant accrued rights to benefit under the scheme.

(2)For the purposes of subsection (1), the three month condition is that the period of the member's pensionable service under the scheme, taken together with—

(a)any previous period of his pensionable service under the scheme, and

(b)any period throughout which he was employed in linked qualifying service under another scheme,

amounts to at least three months.

(3)A period counts for the purposes of paragraph (a) or (b) of subsection (2) only so far as it counts towards qualification for long service benefit within the meaning of Chapter 1.

(4)For the purposes of subsection (1), “relevant accrued rights to benefit under the scheme”, in relation to a member of a scheme, means rights which—

(a)have accrued to or in respect of him under the scheme, and

(b)entitle him to the relevant benefits which would have accrued to or in respect of him under the applicable rules if paragraphs (a) [F500, (aa)] and (b) of section 67(1) (and the word “and” immediately preceding them) did not have effect.

(5)References in the following provisions of this Chapter to a member, in relation to an occupational pension scheme, are to a member of the scheme to which this Chapter applies.

Textual Amendments

97ABRight to cash transfer sum and contribution refundN.I.

(1)On the termination of his pensionable service, a member of an occupational pension scheme acquires a right to whichever one he elects of the following options—

(a)a cash transfer sum;

(b)a contribution refund.

(2)Subsection (1) is subject to the following provisions of this Chapter.

(3)In this Chapter “cash transfer sum” means, in relation to a member of an occupational pension scheme, the cash equivalent, at the date on which his pensionable service terminates, of the benefits mentioned in section 97AA(4)(b).

(4)In this Chapter, “contribution refund” means, in relation to a member of an occupational pension scheme, a sum representing the aggregate of—

(a)the member's employee contributions to the scheme, and

(b)where transfer credits have been allowed to the member under the scheme by virtue of a payment ( “the transfer payment”) made by the trustees or managers of another occupational pension scheme, the member's employee contributions to that other scheme, so far as they—

(i)relate to the transfer payment, and

(ii)do not, in aggregate, exceed the amount of the transfer payment.

(5)In subsection (4), “employee contributions” means, in relation to a member of an occupational pension scheme, contributions made to the scheme by or on behalf of the member on his own account, but does not include—

(a)a transfer payment by virtue of which transfer credits have been allowed to the member under the scheme, or

(b)any pension credit or amount paid to the scheme which is attributable (directly or indirectly) to a pension credit.

97ACNotification of right to cash transfer sum or contribution refundN.I.

(1)This section applies where the pensionable service of a member of an occupational pension scheme has terminated.

(2)The trustees or managers of the scheme must—

(a)within a reasonable period after the termination give the member a statement in writing containing information adequate to explain—

(i)the nature of the right acquired by him under section 97AB, and

(ii)how he may exercise the right,

and such other information as may be prescribed, and

(b)afford the member a reasonable period after giving him that statement within which to exercise the right.

(3)The statement given under subsection (2)(a) must specify, in particular—

(a)in relation to the cash transfer sum to which the member acquires a right under section 97AB, its amount and the permitted ways in which the member can use it,

(b)the amount of the contribution refund to which the member so acquires a right, and

(c)the last day on which the member may, disregarding section 97AI(2), exercise the right ( “the reply date”).

(4)Information which may be prescribed under subsection (2)(a) includes, in particular—

(a)information about any tax liability in respect of, or deduction required or permitted to be made from, the cash transfer sum or contribution refund, and

(b)information about the effect on other rights of the member (whether under the applicable rules or otherwise) of exercising the right.

(5)The trustees or managers may notify the member that, if he does not exercise the right mentioned in subsection (2)(a)(i) on or before the reply date, the trustees or managers will be entitled to pay the contribution refund to him.

(6)Where the trustees or managers of the scheme fail to comply with subsection (2), Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

97ADExercise of right under section 97ABN.I.

(1)This section applies where a member of an occupational pension scheme acquires a right under section 97AB.

(2)The member may exercise the right by giving a notice in writing to that effect to the trustees or managers stating—

(a)which of the options under section 97AB(1) he elects, and

(b)if he elects for the cash transfer sum, the permitted way in which he requires that sum to be used.

(3)The notice under subsection (2) must be given on or before—

(a)the reply date, or

(b)such later date as the trustees or managers may allow in his case under section 97AI(2).

97AEPermitted ways of using cash transfer sumN.I.

(1)This section applies in relation to a cash transfer sum to which a member of an occupational pension scheme acquires a right under section 97AB.

(2)The ways in which the cash transfer sum may be used are—

(a)for acquiring transfer credits allowed under the rules of another occupational pension scheme—

(i)whose trustees or managers are able and willing to accept the cash transfer sum, and

(ii)which satisfies prescribed requirements,

(b)for acquiring rights allowed under the rules of a personal pension scheme—

(i)whose trustees or managers are able and willing to accept the cash transfer sum, and

(ii)which satisfies prescribed requirements,

(c)for purchasing one or more appropriate annuities,

(d)in such circumstances as may be prescribed, for subscribing to other pension arrangements which satisfy prescribed requirements.

(3)For the purposes of subsection (2), “appropriate annuity” means an annuity which satisfies prescribed requirements and is purchased from an insurer who—

(a)falls within section 15(4)(a),

(b)is chosen by the member, and

(c)is willing to accept payment on account of the member from the trustees or managers of the scheme.

97AFCalculation of cash transfer sum and contribution refundN.I.

(1)Cash transfer sums are to be calculated and verified in the prescribed manner.

(2)Any calculation of a contribution refund must conform with such requirements as may be prescribed.

(3)Regulations may provide—

(a)for amounts to be deducted in respect of administrative costs in calculating cash transfer sums;

(b)for a cash transfer sum or contribution refund to be increased or reduced in prescribed circumstances.

(4)The circumstances that may be prescribed under subsection (3)(b) include in particular—

(a)a failure by the trustees or managers of the scheme to comply with section 97AG(2) or (4) in relation to the cash transfer sum or contribution refund, and

(b)the state of funding of the scheme.

(5)Regulations under subsection (3)(b) may provide—

(a)for a cash transfer sum to be reduced so that the member has no right to have any amount paid by way of cash transfer sum in respect of him;

(b)for a contribution refund to be reduced so that the member has no right to receive any amount by way of contribution refund under this Chapter.

97AGDuties of trustees or managers following exercise of rightN.I.

(1)This section applies where a member of an occupational pension scheme has exercised a right under section 97AB in accordance with section 97AD.

(2)Where the member has elected for the cash transfer sum, the trustees or managers of the scheme must, within a reasonable period beginning with the date on which the right was exercised, do what is needed to carry out the requirement specified in the member's notice under section 97AD(2)(b).

(3)When the trustees or managers have done what is needed to carry out that requirement, they are discharged from any obligation—

(a)in respect of any rights (including conditional rights) of, or in respect of, the member to relevant benefits under the applicable rules, and

(b)to make any other payment by way of refund to or in respect of the member of, or in respect of—

(i)the contributions, or any payment, mentioned in section 97AB(4), or

(ii)any other contributions made to the scheme, or any other scheme, in respect of the member (other than any pension credit or amount attributable (directly or indirectly) to a pension credit).

(4)Where the member has elected for the contribution refund, the trustees or managers of the scheme must, within a reasonable period beginning with the date on which the right was exercised, do what is needed to secure that the amount of the contribution refund is paid to the member or as he directs.

(5)When the trustees or managers have done what is needed to secure the payment of the contribution refund as mentioned in subsection (4)—

(a)they are discharged from any obligation in respect of any rights (including conditional rights) of, or in respect of, the member to relevant benefits under the applicable rules, and

(b)if they are required under the applicable rules, or determine in accordance with those rules, to make any payment ( “the refund payment”) by way of refund to or in respect of the member of, or in respect of—

(i)the contributions, or any payment, mentioned in section 97AB(4), or

(ii)any other contributions made to the scheme, or any other scheme, in respect of the member (other than any pension credit or amount attributable (directly or indirectly) to a pension credit),

the amount of the contribution refund may be set off against the refund payment.

(6)Where the trustees or managers fail to comply with subsection (2) or (4), Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

97AHPowers of trustees or managers where right not exercisedN.I.

(1)This section applies where—

(a)a member of an occupational pension scheme does not exercise a right acquired by him under section 97AB on or before the reply date or such later date as the trustees or managers of the scheme allow in his case under section 97AI(2), and

(b)the trustees or managers of the scheme have notified the member as mentioned in section 97AC(5).

(2)The trustees or managers may within a reasonable period beginning with—

(a)the reply date, or

(b)if a later date has been allowed as mentioned in subsection (1), that later date,

pay the contribution refund to the member.

(3)When the trustees or managers have paid the contribution refund to the member—

(a)they are discharged from any obligation in respect of any rights (including conditional rights) of, or in respect of, the member to relevant benefits under the applicable rules, and

(b)if they are required under the applicable rules, or determine in accordance with those rules, to make any payment ( “the refund payment”) by way of refund to or in respect of the member of, or in respect of—

(i)the contributions, or any payment, mentioned in section 97AB(4), or

(ii)any other contributions made to the scheme, or any other scheme, in respect of the member (other than any pension credit or amount attributable (directly or indirectly) to a pension credit),

the amount of the contribution refund may be set off against the refund payment.

97AIRights under section 97AB: further provisionsN.I.

(1)A member of an occupational pension scheme loses any right acquired by him under section 97AB—

(a)if the scheme is wound up, or

(b)subject to subsection (2), if he fails to exercise the right on or before the reply date.

(2)If the member has failed to exercise any such right on or before the reply date, the trustees or managers of the scheme may allow him to exercise it on or before such later date as they may determine on the application of the member.

(3)Where the trustees or managers determine a later date under subsection (2)—

(a)they must give a notice in writing to that effect to the member, and

(b)subsection (1)(b) applies in relation to the member as if the reference to the reply date were a reference to the later date.

(4)For the purposes of section 24(1) of the Interpretation Act (Northern Ireland) 1954 (service of documents) in its application to this section and sections 97AC(2) and 97AD(2)—

(a)omit the word “registering”, and

(b)the last known address of any person is his latest address known to the trustees or managers of the scheme.

(5)This Chapter is subject to any provision made by or under section 57 (deduction of contributions equivalent premium from refund of scheme contributions)—

(a)permitting any amount to be deducted from any payment of a contribution refund, or

(b)requiring the payment of a contribution refund to be delayed.

(6)In this Chapter, except where the context otherwise requires, the following expressions have the following meanings—

  • “the applicable rules” means—

    (a)

    the rules of the scheme, except so far as overridden by a relevant legislative provision,

    (b)

    the relevant legislative provisions, to the extent that they have effect in relation to the scheme and are not reflected in the rules of the scheme, and

    (c)

    any provision which the rules of the scheme do not contain but which the scheme must contain if it is to conform with the requirements of Chapter 1;

  • “member” has the meaning given in section 97AA(5);

  • “permitted way”, in relation to a cash transfer sum, means any of the ways specified in section 97AE(2) in which the sum may be used;

  • “relevant benefits” means benefits which are not attributable (directly or indirectly) to a pension credit;

  • “reply date”, in relation to a member whose pensionable service has terminated, has the meaning given in section 97AC(3)(c).

(7)For the purposes of subsection (6)—

(a)“relevant legislative provision” means any provision contained in any of the following provisions—

(i)Schedule 5 to the Social Security (Northern Ireland) Order 1989 (equal treatment for men and women);

(ii)this Chapter or Chapter 2, 3 or 4 or regulations made under this Chapter or any of those Chapters;

(iii)Part IVA or regulations made under that Part;

(iv)section 106(1);

(v)Part II of the Pensions (Northern Ireland) Order 1995 (occupational pensions) or orders or regulations made or having effect as if made under that Part;

(vi)Article 28 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (pension debits: reduction of benefit);

(vii)any provision mentioned in Article 279(2) of the Pensions (Northern Ireland) Order 2005;

[F501(viii)section 61 of the Pension Schemes Act 2015;

(ix)regulations made under section 62 or 63 of the Pension Schemes Act 2015;]

[F502(xi)regulations made under Schedule 18 to the Pensions Act (Northern Ireland) 2015;]

[F503(xia)sections 21, 23, 26, 28, 29 and 33 of and Schedule 1 to the Pension Schemes Act (Northern Ireland) 2021;]

[F504(xii)regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021;

(xiii)sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;]

(b)a relevant legislative provision is to be taken to override any of the provisions of the scheme if, and only if, it does so by virtue of any of the following provisions—

(i)paragraph 3 of Schedule 5 to the Social Security (Northern Ireland) Order 1989;

(ii)section 125(1);

(iii)Article 114(1) of the Pensions (Northern Ireland) Order 1995;

(iv)Article 28(4) of the Welfare Reform and Pensions (Northern Ireland) Order 1999;

(v)Article 279(1) of the Pensions (Northern Ireland) Order 2005.]

[F505(vi)section 61(3) of the Pension Schemes Act 2015;

(vii)regulations made under section 62(4) or 63(4) of the Pension Schemes Act 2015.]

[F506(ix)regulations made under paragraph 6 of Schedule 18 to the Pensions Act (Northern Ireland) 2015.]

[F507(ixa)sections 21(7), 23(7), 26(9), 28(6), 29(2) and 33(5) of and paragraph 1(7) of Schedule 1 to the Pension Schemes Act (Northern Ireland) 2021.]

[F508(x)sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.]

Textual Amendments

F501S. 97AI(7)(a)(ix)(viii) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 66(1)(a), 89(3)(b) (with s. 87)

F504S. 97AI(7)(a)(xii)(xiii) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 6 para. 3(a)

F505S. 97AI(7)(b)(vi)(vii) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 66(1)(b), 89(3)(b) (with s. 87)

F508S. 97AI(7)(b)(x) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 6 para. 3(b)

[F509PART IVAN.I. REQUIREMENTS RELATING TO PENSION CREDIT BENEFIT

Textual Amendments

F509Pt. 4A Chapters 1, 2 (ss. 97A-97Q) inserted (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 34; S.R. 2000/133, art. 2(3), Sch. Pt. IV

CHAPTER IN.I. PENSION CREDIT BENEFIT UNDER OCCUPATIONAL SCHEMES

97A Scope of Chapter I.N.I.

(1)This Chapter applies to any occupational pension scheme whose resources are derived in whole or part from—

(a)payments to which subsection (2) applies made or to be made by one or more employers of earners to whom the scheme applies, or

(b)such other payments by the earner or his employer, or both, as may be prescribed for different categories of scheme.

(2)This subsection applies to payments—

(a)under an actual or contingent legal obligation, or

(b)in the exercise of a power conferred, or the discharge of a duty imposed, on a Minister of the Crown, government department or any other person, being a power or duty which extends to the disbursement or allocation of public money.

97B Interpretation.N.I.

In this Chapter—

  • “scheme” means an occupational pension scheme to which this Chapter applies;

  • “pension credit rights” means rights to future benefits under a scheme which are attributable (directly or indirectly) to a pension credit;

  • “pension credit benefit”, in relation to a scheme, means the benefits payable under the scheme to or in respect of a person by virtue of rights under the scheme attributable (directly or indirectly) to a pension credit;

  • [F510“normal benefit age”, in relation to a pension credit benefit for a member of a scheme, is the earliest age at which the member is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill-health or otherwise);

  • “normal pension age”, in relation to a benefit for a member of a scheme, means the earliest age at which the member is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill-health or otherwise);]

Textual Amendments

97C Basic principle as to pension credit benefit.N.I.

[F511(1)The normal benefit age in relation to a pension credit benefit for a member of a scheme—

(a)must not be lower than 60, and

(b)must not be higher than the permitted maximum.

(1A)The “permitted maximum” is 65 or, if higher, the highest normal pension age for any benefit that is payable under the scheme to or in respect of any of the members by virtue of rights which are not attributable (directly or indirectly) to a pension credit.]

(2)A scheme must not provide for payment of pension credit benefit in the form of a lump sum at any time before normal benefit age, except in such circumstances as may be prescribed.

Textual Amendments

97D Form of pension credit benefit and its alternatives.N.I.

(1)Subject to subsection (2) and section 97E, a person’s pension credit benefit under a scheme must be—

(a)payable directly out of the resources of the scheme, or

(b)assured to him by such means as may be prescribed.

(2)Subject to subsections (3) and (4), a scheme may, instead of providing a person’s pension credit benefit, provide—

(a)for his pension credit rights under the scheme to be transferred to another occupational pension scheme or a personal pension scheme with a view to acquiring rights for him under the rules of the scheme, or

(b)for such alternatives to pension credit benefit as may be prescribed.

(3)The option conferred by subsection (2)(a) is additional to any obligation imposed by Chapter II of this Part.

(4)The alternatives specified in subsection (2)(a) and (b) may only be by way of complete or partial substitute for pension credit benefit—

(a)if the person entitled to the benefit consents, or

(b)in such other cases as may be prescribed.

97E Discharge of liability where pension credit or alternative benefits secured by insurance policies or annuity contracts.N.I.

(1)A transaction to which section 15 applies discharges the trustees or managers of a scheme from their liability to provide pension credit benefit or any alternative to pension credit benefit for or in respect of a member of the scheme if and to the extent that—

(a)it results in pension credit benefit, or any alternative to pension credit benefit, for or in respect of the member being appropriately secured (within the meaning of that section),

(b)the transaction is entered into with the consent of the member or, if the member has died, of the member’s widow or widower [F512 or surviving civil partner] , and

(c)such requirements as may be prescribed are met.

(2)Regulations may provide that subsection (1)(b) shall not apply in prescribed circumstances.

Textual Amendments

CHAPTER IIN.I. TRANSFER VALUES

Modifications etc. (not altering text)

97F Power to give transfer notice.N.I.

(1)An eligible member of a qualifying scheme may by notice in writing require the trustees or managers of the scheme to use an amount equal to the cash equivalent of his [F513pension credit rights] for such one or more of the authorised purposes as he may specify in the notice.

(2)In the case of a member of an occupational pension scheme, the authorised purposes are—

(a)to acquire rights allowed under the rules of an occupational pension scheme, or personal pension scheme, which is an eligible scheme;

(b)to purchase from one or more [F514insurer] such as are mentioned in section 15(4)(a), chosen by the member and willing to accept payment on account of the member from the trustees or managers, one or more annuities which satisfy the prescribed requirements; and

(c)in such circumstances as may be prescribed, to subscribe to other pension arrangements which satisfy prescribed requirements.

(3)In the case of a member of a personal pension scheme, the authorised purposes are—

(a)to acquire rights allowed under the rules of an occupational pension scheme, or personal pension scheme, which is an eligible scheme; and

(b)in such circumstances as may be prescribed, to subscribe to other pension arrangements which satisfy prescribed requirements.

[F515(3A)An eligible member who has pension credit rights in relation to more than one category of benefits under the scheme may exercise the power to give a transfer notice in relation to the pension credit rights in relation to any one or more of those categories.]

[F516(4)The cash equivalent for the purposes of subsection (1) shall—

(a)in a case where the pension credit rights relate to a category of benefits other than money purchase benefits, be taken to be the amount shown in the relevant statement under section 97H, and

(b)in a case where the pension credit rights relate to money purchase benefits, be determined by reference to the date the notice under that subsection is given.]

(5)The requirements which may be prescribed under subsection (2) or (3) include, in particular, requirements of the Inland Revenue.

(6)In subsections (2) and (3), references to an eligible scheme are to a scheme—

(a)the trustees or managers of which are able and willing to accept payment in respect of the member’s pension credit rights, and

(b)which satisfies the prescribed requirements.

[F517(6A)Regulations may—

(a)provide for this Chapter not to apply in relation to a person of a prescribed description;

(b)provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description;

(c)modify the application of this Chapter in relation to a member who has accrued rights to benefits of a prescribed description.]

[F517(6B)In this Chapter a reference to a “category” of benefits is to one of the following three categories—

(a)money purchase benefits;

(b)flexible benefits other than money purchase benefits;

(c)benefits that are not flexible benefits.]

(7)In this Chapter, “transfer notice” means a notice under subsection (1).

Textual Amendments

F513Words in s. 97F(1) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 61(2) (with s. 87)

F514Words in s. 97F(2)(b) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 134

F515S. 97F(3A) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 61(3) (with s. 87)

F516S. 97F(4) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 61(4) (with s. 87)

F517S. 97F(6A)(6B) substituted for s. 97F(6A) (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 61(5) (with s. 87)

[F51897G Restrictions on power to give transfer noticeN.I.

(1)An eligible member may not give a transfer notice in relation to a category of benefits if a crystallisation event has occurred in relation to any of the member's pension credit rights to benefits in that category.

(2)An eligible member may give a transfer notice in relation to a category of benefits other than money purchase benefits only if—

(a)the member has been provided with a statement under section 97H in relation to benefits in that category, and

(b)not more than 3 months have passed since the date by reference to which the amount shown in the statement is determined.

(3)An eligible member may not give a transfer notice in relation to benefits other than flexible benefits if there is less than one year to go until the member reaches normal benefit age.

(4)Where an eligible member of a qualifying scheme—

(a)is entitled to give a transfer notice in relation to any category of benefits, and

(b)is also entitled to make an application to the trustees or managers of the scheme under section 91(1) in relation to benefits in the same category (or would be entitled to do so but for section 91(1A)(a)),

the member may not, if the scheme so provides, give a transfer notice in relation to that category of benefits without also making an application under section 91(1) in relation to that category of benefits.

(5)A transfer notice may not be given if a previous transfer notice given by the member to the trustees or managers of the scheme is outstanding.

(6)Regulations may extend the period specified in subsection (2)(b) in prescribed circumstances.

(7)For the purposes of subsection (1) a crystallisation event occurs in relation to a member's pension credit rights to benefits in a category when—

(a)payment of a pension in respect of any of the benefits has begun,

(b)in the case of money purchase benefits, sums or assets held for the purpose of providing any of the benefits are designated as available for the payment of drawdown pension (as defined by paragraph 4 of Schedule 28 to the Finance Act 2004), or

(c)in the case of a personal pension scheme, sums or assets held for the purpose of providing any of the benefits are applied for purchasing an annuity or insurance policy.]

Textual Amendments

F518S. 97G substituted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 62 (with s. 87)

97H [F519Benefits other than money purchase]: statements of entitlement.N.I.

[F520(1)The trustees or managers of a qualifying scheme must, on the application of an eligible member, provide the member with a written statement of the amount of the cash equivalent of the member's pension credit rights in relation to categories of benefits other than money purchase benefits.

(1A)In the case of a member with pension credit rights in relation to two categories of benefits other than money purchase benefits, the application may relate to pension credit rights in relation to either or both of those categories.]

(2)For the purposes of subsection (1), the amount of the cash equivalent shall be determined by reference to a date falling within—

(a)the prescribed period beginning with the date of the application, and

(b)the prescribed period ending with the date on which the statement under that subsection is provided to the applicant.

(3)Regulations may make provision in relation to applications under subsection (1) and may, in particular, restrict the making of successive applications.

(4)If trustees or managers to whom subsection (1) applies fail to perform an obligation under that subsection, Article 10 of the Pensions (Northern Ireland) Order 1995 (power of the Regulatory Authority to impose civil penalties) shall apply to any trustee or manager who has failed to take all such steps as are reasonable to secure that the obligation was performed.

Textual Amendments

F519Words in s. 97H heading substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 63(3) (with s. 87)

F520S. 97H(1)(1A) substituted for s. 97H(1) (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 63(2) (with s. 87)

97I Calculation of cash equivalents.N.I.

Cash equivalents for the purposes of this Chapter shall be calculated and verified in the prescribed manner.

97J Time for compliance with transfer notice.N.I.

(1)Trustees or managers of a qualifying scheme who receive a transfer notice shall comply with the notice—

[F521(a)in the case of an application that relates to benefits other than money purchase benefits, within 6 months beginning with the valuation date, and

(b)in the case of an application that relates to money purchase benefits, within 6 months of the date on which the notice is given.]

(2)The Regulatory Authority may, in prescribed circumstances, [F522by direction,] extend the period for complying with the notice.

[F523(2A)Regulations may extend the period for complying with the notice in prescribed circumstances.]

[F524(2B)Subsection (1) does not apply if—

(a)the trustees or managers have been unable to carry out the check required by section 51 of the Pension Schemes Act 2015 by reason of factors outside their control, or

(b)the trustees or managers have carried out the check required by section 51 of the Pension Schemes Act 2015 but the check did not confirm that the member had received appropriate independent advice.]

F525(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Where the trustees or managers of an occupational pension scheme have failed to comply with a transfer notice before the end of the period for compliance—

(a)they shall, except in prescribed cases, notify the Regulatory Authority of that fact within the prescribed period, and

(b)Article 10 of the Pensions (Northern Ireland) Order 1995 (power of the Regulatory Authority to impose civil penalties) shall apply to any trustee or manager who has failed to take all such steps as are reasonable to ensure that the notice was complied with before the end of the period for compliance.

(5)If trustees or managers to whom subsection (4)(a) applies fail to perform the obligation imposed by that provision, Article 10 of the Pensions (Northern Ireland) Order 1995 shall apply to any trustee or manager who has failed to take all such steps as are reasonable to ensure that the obligation was performed.

(6)Regulations may—

(a)make provision [F526requiring applications for extensions under subsection (2) to meet prescribed requirements] , and

(b)provide that subsection (4) shall not apply in prescribed circumstances.

[F527(7)In subsection (1)(a), “valuation date” means the date by reference to which the amount shown in the relevant statement under section 97H is determined.]

Textual Amendments

F521S. 97J(1)(a)(b) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 64(2) (with s. 87)

F523S. 97J(2A) inserted (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 64(3) (with s. 87)

F524S. 97J(2B) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 53(3), 89(1)(b)(3)(b) (with s. 87)

F527S. 97J(7) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 64(4) (with s. 87)

97K Withdrawal of transfer notice.N.I.

(1)Subject to subsections (2) and (3), a person who has given a transfer notice may withdraw it by giving the trustees or managers to whom it was given notice in writing that he no longer requires them to comply with it.

(2)A transfer notice may not be withdrawn if the trustees or managers have already entered into an agreement with a third party to use the whole or part of the amount they are required to use in accordance with the notice.

(3)If the giving of a transfer notice depended on the making of an application under section 91, the notice may only be withdrawn if the application is also withdrawn.

97L Variation of the amount required to be used.N.I.

(1)Regulations may make provision for the amount required to be used under section 97F(1) to be increased or reduced in prescribed circumstances.

(2)Without prejudice to the generality of subsection (1), the circumstances which may be prescribed include—

(a)failure by the trustees or managers of a qualifying scheme to comply with a notice under section 97F(1) within 6 months of the date by reference to which the amount of the cash equivalent falls to be determined, and

(b)the state of funding of a qualifying scheme.

(3)Regulations under subsection (1) may have the effect of extinguishing an obligation under section 97F(1).

97M Effect of transfer on trustees’ duties.N.I.

Compliance with a transfer notice shall have effect to discharge the trustees or managers of a qualifying scheme from any obligation to provide the [F528benefits to which the transfer notice relates].

Textual Amendments

F528Words in s. 97M substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 65 (with s. 87)

97N Matters to be disregarded in calculations.N.I.

In making any calculation for the purposes of this Chapter—

(a)any charge or lien on, and

(b)any set-off against,

the whole or part of a pension shall be disregarded.

[F52997NAProhibition on excluding transfers of some rights without others etcN.I.

Except as mentioned in sections 92(4) and 97G(4), a pension scheme may not contain rules that would have the effect of—

(a)preventing a member from exercising a right under this Chapter in relation to a category of benefits without also exercising a right under this Chapter or otherwise to require a transfer payment to be made in respect of another category of benefits, or

(b)preventing a member who exercises a right under this Chapter in relation to a category of benefits from accruing rights to benefits in another category.]

Textual Amendments

97O Service of notices.N.I.

A notice under section 97F(1) or 97K(1) shall be taken to have been given if it is delivered to the trustees or managers personally or sent by post in a registered letter or by recorded delivery service.

97P Interpretation of Chapter II.N.I.

(1)In this Chapter—

  • [F530“category”, in relation to benefits, has the meaning given by section 97F(6B);]

  • “eligible member”, in relation to a qualifying scheme, means a member who has pension credit rights under the scheme;

  • [F530“flexible benefit” has the meaning given by section 74 of the Pension Schemes Act 2015;]

  • “normal benefit age”, in relation to an eligible member of a qualifying scheme, means the earliest age at which the member is entitled to receive a pension by virtue of his pension credit rights under the scheme (disregarding any scheme rule making special provision as to early payment of pension on grounds of ill-health or otherwise);

  • F531...

  • “pension credit rights”, in relation to a qualifying scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit;

  • “qualifying scheme” means a funded occupational pension scheme and a personal pension scheme;

  • “transfer notice” has the meaning given by section 97F(7).

F532(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)In this Chapter, references to the relevant statement under section 97H, in relation to a transfer notice [F533in relation to benefits other than money purchase benefits], are to the statement under that section on which the giving of the notice depended.

(4)For the purposes of this section, an occupational pension scheme is funded if it meets its liabilities out of a fund accumulated for the purpose during the life of the scheme.]

Textual Amendments

F530Words in s. 97P(1) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 67(2) (with s. 87)

F531Words in s. 97P(1) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 67(3) (with s. 87)

F532S. 97P(2) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 67(4) (with s. 87)

F533Words in s. 97P(3) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 67(5) (with s. 87)

F53497Q Power to modify Chapter II in relation to hybrid schemes.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Part VN.I. Annual Increases of Pensions in Payment

Chapter IN.I. Pensions under Final Salary Schemes, etc.

F53598

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F53699

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F536Ss. 98-104 repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 119, 168, Sch. 1 para. 16, Sch. 5 Pt. I (with 118(5)(6)); S.R. 1997/192, art. 2(b)

F537100

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F538101

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F539102

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F540103. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F541104

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Chapter IIN.I. Guaranteed Minimum Pensions

105 Annual increase of guaranteed minimum pensions.N.I.

(1)Whenever the Secretary of State makes an order under section 109 of the M20Pension Schemes Act 1993 specifying a percentage by which there is to be an increase of the rate of that part of guaranteed minimum pensions which is attributable to earnings factors for [F542the tax years in the relevant period as defined in that section] for—

(a)earners who have attained pensionable age; and

(b)[F543widows, widowers and surviving civil partners],

the Department may make a corresponding order for Northern Ireland.

(2)Where the benefits mentioned in section 42(1) to (7) are not increased on the day on which an order under this section takes effect, the order shall be treated for the purposes of that section as not taking effect until the day on which those benefits are next increased.

Textual Amendments

F542Words in s. 105(1) substituted (4.2.1997) by S.I. 1995/3213 (N.I. 22), art. 55 (with art. 118(5)(6)); S.R. 1997/37, art. 2

Marginal Citations

106 Requirement as to resources for annual increase of guaranteed minimum pensions.N.I.

(1)Except as permitted by [F544Article 53 of the Pensions (Northern Ireland) Order 1995], the trustees or managers of a scheme may not make an increase in a person’s pension which is required by virtue of section 105 out of money which would otherwise fall to be used for the payment of benefits under the scheme to or in respect of that person unless—

(a)the payment is to an earner in respect of the tax year in which he attains pensionable age and the increase is the one required to be made in the next tax year; or

(b)the payment is to a person as the [F545widow, widower or surviving civil partner] of an earner who died before attaining pensionable age and is in respect of the tax year in which the person became a [F545widow, widower or surviving civil partner], and the increase is the one required to be made in the next tax year.

F546(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F546(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F546(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F544Words in s. 106(1) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 53(4)(b); S.R. 1997/192, art. 2(b)

Part VIN.I. Further Requirements for Protection of Scheme Members

F547107 Voluntary contributions.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F548107AMonitoring of employers’ payments to personal pension schemes.N.I.

(1)This section applies where—

(a)an employee is a member of a personal pension scheme; and

(b)direct payment arrangements exist between the employee and his employer.

(2)In this section “direct payment arrangements” means arrangements under which contributions fall to be paid by or on behalf of the employer towards the scheme—

(a)on the employer’s own account (but in respect of the employee); or

(b)on behalf of the employee out of deductions from the employee’s earnings.

[F549(3)The trustees or managers of the scheme must monitor the payment of contributions by or on behalf of the employer under the direct payment arrangements.

(4)The trustees or managers may request the employer to provide them, (or arrange for them to be provided) with the payment information specified in the request.

(5)For the purposes of subsection (4) “payment information” is information required by the trustees or managers to enable them to discharge the duty imposed by subsection (3).

(6)The employer must comply with a request under subsection (4) within a reasonable period.

(7)Where, as a result of the employer's failure to so comply, the trustees or managers are unable to discharge the duty imposed by subsection (3), they must give notice to that effect to the Regulatory Authority within a reasonable period.

(7A)Where—

(a)a contribution payable under the direct payment arrangements has not been paid on or before its due date, and

(b)the trustees or managers have reasonable cause to believe that the failure to pay the contribution is likely to be of material significance in the exercise by the Regulatory Authority of any of their functions,

they must give notice to that effect to the Regulatory Authority and the employee within a reasonable period after the due date.]

(8)If—

(a)the employer fails to take all such steps as are reasonable to secure compliance with [F550subsection (6) and as a result the trustees or managers of the scheme are unable to discharge the duty imposed by subsection (3)] , or

(b)a contribution payable under the direct payment arrangements is not paid to the trustees or managers of the scheme on or before its due date,

Article 10 of the Pensions (Northern Ireland) Order 1995 (power of the Regulatory Authority to impose civil penalties) applies to the employer.

(9)If [F551subsection (7) or (7A)] is not complied with, Article 10 of the Pensions (Northern Ireland) Order 1995 applies to any trustee or manager of the scheme who has failed to take all such steps as are reasonable to secure compliance.

F552(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11)A person shall not be required by virtue of subsection (8)(b) to pay a penalty under Article 10 of the Pensions (Northern Ireland) Order 1995 in respect of a failure if in respect of that failure he has been—

(a)required to pay a penalty under that Article by virtue of Article 5(7) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (failures in respect of stakeholder pensions), or

(b)convicted of an offence under subsection (12).

(12)A person is guilty of an offence if he is knowingly concerned in the fraudulent evasion of the direct payment arrangements so far as they are arrangements for the payment by him or any other person of any such contribution towards the scheme as is mentioned in subsection (2)(b).

(13)A person guilty of an offence under subsection (12) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum; and

(b)on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.

(14)No prosecution shall be brought against the Crown for an offence under subsection (12), but that subsection applies to persons in the public service of the Crown as to other persons.

(15)In this section “due date”, in relation to a contribution payable under the direct payment arrangements, means—

(a)if the contribution falls to be paid on the employer’s own account, the latest day under the arrangements for paying it;

(b)if the contribution falls to be paid on behalf of the employee, the last day of a prescribed period.

(16)Regulations may provide for this section to apply with such modifications as may be prescribed in a case where—

(a)the direct payment arrangements give effect to a requirement arising under paragraph (5) of Article 5 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (deduction and payment of employee’s contributions to stakeholder scheme), and

(b)in accordance with regulations under that paragraph, that requirement is for the employer to pay contributions to a person prescribed by such regulations (instead of to the trustees or managers of the scheme).

(17)Nothing in this section shall be taken as varying the provisions of the direct payment arrangements or as affecting their enforceability.

[F553(18)In this section, “employee” includes a jobholder within the meaning of section 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 and “employer” is to be read accordingly.]]

Textual Amendments

F548Ss.107A, 107B inserted (1.12.1999 for certain purposes and otherwise 6.4.2001) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 10 (with transitional provisions in art. 75(1)); S.R. 2000/332, art. 2(1)

F553S. 107A(18) added (3.1.2012 for specified purposes, 30.6.2012 in so far as not already in force) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 49, 118(1) (with s. 73); S.R. 2011/441, art. 2(a); S.R. 2012/266, art. 2(a), Sch. Pt. 1

F554107B Obtaining information for purposes of section 107A and corresponding legislation in Great Britain.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F555108

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

109 Disclosure of information about schemes to members, etc.N.I.

(1)The Department may by regulations specify requirements to be complied with in the case of an occupational pension scheme or a personal pension scheme with respect to keeping the persons mentioned in subsection (2) informed—

(a)of its constitution;

(b)of its administration and finances;

(c)of the rights and obligations that arise or may arise under it;

[F556(ca)of the pensions and other benefits an entitlement to which would be likely to accrue to the member, or be capable of being secured by him, in respect of the rights that may arise under it; and]

(d)of any other matters that appear to the Department to be relevant to occupational pension schemes or personal pension schemes in general or to schemes of a description to which the scheme in question belongs.

(2)The persons referred to in subsection (1) are—

(a)members and, in the case of an occupational pension scheme, prospective members of the scheme;

(b)spouses [F557or civil partners] of members and, in the case of an occupational pension scheme, of prospective members;

(c)persons within the application of the scheme and qualifying or prospectively qualifying for its benefits;

(d)in the case of an occupational pension scheme, independent trade unions recognised to any extent for the purposes of collective bargaining in relation to members and to prospective members of the scheme.

[F558(e)persons of prescribed descriptions.]

[F559(2A)In complying with requirements specified in the regulations, a person must have regard to any guidance prepared from time to time by the Department.]

(3)Without prejudice to the generality of section 177(2), the regulations may distinguish between—

(a)cases in which information is to be given as of course; and

(b)cases in which information need only be given on request or in other prescribed circumstances.

[F560(3A)The regulations may provide for the information that must be given to be determined, in whole or part, by reference to guidance which [F561is prepared and from time to time revised by a prescribed body.]]

[F560(3B)The regulations may, in relation to cases where a scheme is being wound up, contain—

(a)provision conferring power on the Regulatory Authority, at times before the period expires, to extend any period specified in the regulations as the period within which a requirement imposed by the regulations must be complied with; and

(b)provision as to the contents of any application for the exercise of such a power and as to the form and manner in which, and the time within which, any such application must be made.]

(4)The regulations shall make provision for referring to an industrial tribunal any question whether an organisation is such a trade union as is mentioned in subsection (2)(d).

[F562(5)The Department must make regulations under subsection (1) requiring information about some or all of the transaction costs of a relevant scheme to be given to some or all of the persons mentioned in subsection (2).

(6)The Department must by regulations make provision requiring the publication of information about—

(a)some or all of the transaction costs of a relevant scheme, and

(b)some or all of the administration charges imposed on members of a relevant scheme.

(7)Regulations under subsection (6) may require other relevant information to be published along with information about transaction costs or administration charges in relation to a scheme.

(8)“Other relevant information” means other information which would or may assist in making comparisons between those costs or charges and costs or charges in relation to other schemes.

(9)In this section—

  • “administration charge” has the meaning given by paragraph 1(5) of Schedule 18 to the Pensions Act (Northern Ireland) 2015;

  • “relevant scheme” means a money purchase scheme that is an occupational pension scheme.]

Textual Amendments

F556S. 109(1)(ca) substituted (1.1.2001) for word in s. 109(1)(c) by 2000 c. 4 (N.I.), s. 68(2) (with s. 66(6)); S.R. 2000/374, art. 2, Sch. Pt. II

F560S. 109(3A)(3B) inserted (1.1.2001 except as regards the insertion of subsection (3B), as to whichprosp.) by 2000 c. 4 (N.I.), ss. 48(2), 68(2) (with s. 66(6)); S.R. 2000/374, art. 2, Sch. Pt. II

[F563109ADisclosure of information about transfers etc.N.I.

Regulations may provide that, where—

(a)a payment is made out of an occupational pension scheme to the trustees or managers of another occupational pension scheme, and

(b)transfer credits are allowed to a member of that other scheme in respect of the payment,

the trustees or managers of the first scheme must, in prescribed circumstances and in the prescribed manner, provide to the trustees or managers of the other scheme prescribed information relating to the payment.]

Textual Amendments

F563S. 109A inserted (1.1.2006 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), art. 1(2), Sch. 10 para. 14; S.R. 2005/543, art. 2(5), Sch. Pt. 5

F564110

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

111 Powers as respects failure to comply with information requirements.N.I.

(1) If the trustees or managers of an occupational pension scheme or a personal pension scheme, having made default in complying with regulations under section 109 F565. . ., fail to make good the default within 14 days after the service on them of a notice requiring them to do so, an order may be made under this subsection.

(2)The Department may by regulations specify forms for notices under subsection (1).

(3)An order under subsection (1) is an order directing the trustees or managers to make good the default within such time as may be specified in the order.

(4)The power to make such an order shall be exercisable by a county court on the application of any person mentioned in subsection (5).

(5)The persons referred to in subsection (4) are—

(a)the Department;

(b)any person authorised by the Department to make an application under this section; and

(c)any aggrieved person.

(6)An order under this section may provide that all costs of and incidental to the application shall be borne personally by any of the trustees or managers of the scheme.

Textual Amendments

F566112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

113 Regulations as to form and content of advertisements.N.I.

Regulations may be made relating to the form and content of advertisements and such other material as may be prescribed issued by or on behalf of the trustees or managers of a personal or occupational pension scheme for the purposes of the scheme.

F567114

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Textual Amendments

Part VIIN.I. Insolvency of Employers

Chapter IN.I. Independent Trustees

F568115

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Textual Amendments

F569116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F570117

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Textual Amendments

F571118

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Textual Amendments

Chapter IIN.I. Payment by the Department of Unpaid Scheme Contributions

119 Interpretation of Chapter II.N.I.

(1)For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in Northern Ireland—

(a)he has been adjudged bankrupt or has made a composition or arrangement with his creditors;

(b)he has died and his estate falls to be administered in accordance with an order under Article 365 of the Insolvency (Northern Ireland) Order 1989; F572...

(c)where the employer is a company—

(i)a winding-up order F573... is made or a resolution for voluntary winding up is passed with respect to it [F574 or the company enters administration],

(ii)a receiver or manager of its undertaking is duly appointed,

(iii)possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge, or

(iv)a voluntary arrangement proposed for the purpose of Part II of the M21Insolvency (Northern Ireland) Order 1989 is approved under that Part [F575; or

(d)subsection [F576(1ZA) or (1A)] is satisfied].

[F577(1ZA)This subsection is satisfied in the case of an employer if—

(a)the employer is a legal person,

(b)a request has been made for the first opening of collective proceedings—

(i)based on the insolvency of the employer, as provided for under the law of any part of the United Kingdom, and

(ii)involving the partial or total divestment of the employer's assets and the appointment of a liquidator or a person performing a similar task, and

(c)any of the following has decided to open the proceedings—

(i)a court,

(ii)a meeting of creditors, or

(iii)the creditors by a decision procedure.]

[F578(1A)This subsection is satisfied if—

(a)a request has been made for the first opening of collective proceedings—

(i)based on the insolvency of the employer, as provided for under the laws, regulations and administrative provisions of a member State; and

(ii)involving the partial or total divestment of the employer’s assets and the appointment of a liquidator or a person performing a similar task; and

(b)the competent authority has—

(i)decided to open the proceedings; or

(ii)established that the employer’s undertaking or business has been definitively closed down and the available assets of the employer are insufficient to warrant the opening of the proceedings.

(1B)For the purposes of [F579this section]—

(a)“liquidator or person performing a similar task” includes the official receiver or an administrator, trustee in bankruptcy, judicial factor, supervisor of a voluntary arrangement, or person performing a similar task;

(b)“competent authority” includes—

(i)a court,

(ii)a meeting of creditors,

(iii)a creditors’ committee,

(iv)the creditors by a decision procedure, and

(v)an authority of a member State empowered to open insolvency proceedings, to confirm the opening of such proceedings or to take decisions in the course of such proceedings.

(1C)An application under section 120 may only be made in respect of a worker who worked or habitually worked in Northern Ireland in that employment to which the application relates.]

(2)In this Chapter—

  • [F580“employer”, “employment”, “worker” and “worker's contract” and other expressions which are defined in the Employment Rights (Northern Ireland) Order 1996 have the same meaning as in that Order (see further subsections (2A) and (2B));]

  • “holiday pay” means—

    (a)

    pay in respect of a holiday actually taken; or

    (b)

    any accrued holiday pay which under [F581the worker's contract] would in the ordinary course have become payable to him in respect of the period of a holiday if his employment with the employer had continued until he became entitled to a holiday;

  • F582...

[F583(2A)Section 71 of the Pensions (No. 2) Act (Northern Ireland) 2008 (agency workers) applies for the purposes of this Chapter as it applies for the purposes of Part 1 of that Act.

(2B)References in this Chapter to a worker include references to an individual to whom Part 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 applies as if the individual were a worker because of regulations made under section 77 of that Act; and related expressions are to be read accordingly.]

F584(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Any reference in this Chapter to the resources of a scheme is a reference to the funds out of which the benefits provided by the scheme are from time to time payable.

Textual Amendments

Modifications etc. (not altering text)

C112S. 119 applied (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 79(8) (with art. 118(5)(6)); S.R. 1997/192, art. 2(b)

Marginal Citations

120 Duty of Department to pay unpaid contributions to schemes.N.I.

(1)If, on an application made to it in writing by the persons competent to act in respect of an occupational pension scheme or a personal pension scheme, the Department is satisfied—

(a)that an employer has become insolvent; and

(b)that at the time he did so there remained unpaid relevant contributions falling to be paid by him to the scheme,

then, subject to the provisions of this section and section 121, the Department shall pay into the resources of the scheme the sum which in its opinion is payable in respect of the unpaid relevant contributions.

(2)In this section and section 121 “relevant contributions” means contributions falling to be paid by an employer to an occupational pension scheme or a personal pension scheme, either on his own account or on behalf of [F585a worker]; and for the purposes of this section a contribution shall not be treated as falling to be paid on behalf of [F585a worker] unless a sum equal to that amount has been deducted from the pay of [F586the worker] by way of a contribution from him.

(3)[F587Subject to subsection (3A),]The sum payable under this section in respect of unpaid contributions of an employer on his own account to an occupational pension scheme or a personal pension scheme shall be the least of the following amounts—

(a)the balance of relevant contributions remaining unpaid on the date when he became insolvent and payable by the employer on his own account to the scheme in respect of the 12 months immediately preceding that date;

(b)the amount certified by an actuary to be necessary for the purpose of meeting the liability of the scheme on dissolution to pay the benefits provided by the scheme to or in respect of the [F588workers] of the employer;

(c)an amount equal to 10 per cent. of the total amount of remuneration paid or payable to those [F588workers] in respect of the 12 months immediately preceding the date on which the employer became insolvent.

[F589(3A)Where the scheme in question is a money purchase scheme, the sum payable under this section by virtue of subsection (3) shall be the lesser of the amounts mentioned in paragraphs (a) and (c) of that subsection.]

(4)For the purposes of subsection (3)(c), “remuneration” includes holiday pay, statutory sick pay, statutory maternity pay under Part VI of the M22Social Security (Northern Ireland) Order 1986 or Part XII of the M23Social Security Contributions and Benefits (Northern Ireland) Act 1992 and any such payment as is referred to in [F590Article 229(2) of the Employment Rights (Northern Ireland) Order 1996] (guarantee payments, etc.).

(5)Any sum payable under this section in respect of unpaid contributions on behalf of [F585a worker] shall not exceed the amount deducted from the pay of [F586the worker] in respect of [F591the worker's] contributions to the scheme during the 12 months immediately preceding the date on which the employer became insolvent.

(6)[F592In this section “on his own account”, in relation to an employer, means on his own account but to fund benefits for, or in respect of, one or more [F588workers].]

Textual Amendments

F587Words in s. 120(3) inserted (19.12.1995) by S.I. 1995/3213 (N.I. 22), art. 88 (with art. 118(5)(6)); S.R. 1995/477, art. 2(a), Sch. Pt. I

F590Words in s. 120(4) substituted (24.9.1996) by S.I. 1996/1919 (N.I. 16), arts. 1(2), 255, Sch. 1 (with art. 256, Sch. 2)

Marginal Citations

121 Certification of amounts payable under s. 120 by insolvency officers.N.I.

(1)This section applies where one of the officers mentioned in subsection (2) (“the relevant officer”) is acting or has been or is required to be appointed in connection with an employer’s insolvency.

(2)The officers referred to in subsection (1) are—

(a)the official receiver; or

(b)any such person as is referred to in paragraph (1) or (2) of Article 3 of the M24Insolvency (Northern Ireland) Order 1989 (insolvency practitioners), as read with paragraphs (3) and (4) of that Article.

(3)Subject to subsection (5), where this section applies the Department shall not make any payment under section 120 in respect of unpaid relevant contributions until it has received a statement from the relevant officer of the amount of relevant contributions which appear to have been unpaid on the date on which the employer became insolvent and to remain unpaid; and the relevant officer shall on request by the Department provide it as soon as reasonably practicable with such a statement.

(4)Subject to subsection (5), an amount shall be taken to be payable, paid or deducted as mentioned in subsection (3)(a) or (c) or (5) of section 120 only if it is so certified by the relevant officer.

(5)If the Department is satisfied—

(a)that it does not require a statement under subsection (3) in order to determine the amount of relevant contributions that was unpaid on the date on which the employer became insolvent and remains unpaid, or

(b)that it does not require a certificate under subsection (4) in order to determine the amounts payable, paid or deducted as mentioned in subsection (3)(a) or (c) or (5) of section 120,

it may make a payment under that section in respect of the contributions in question without having received such a statement or, as the case may be, such a certificate.

Marginal Citations

122 Complaint to industrial tribunal.N.I.

(1)Any persons who are competent to act in respect of an occupational pension scheme or a personal pension scheme and who have applied for a payment to be made under section 120 into the resources of the scheme may present a complaint to an industrial tribunal that—

(a)the Department has failed to make any such payment; or

(b)any such payment made by the Department is less than the amount which should have been paid.

(2)Such a complaint must be presented within the period of three months beginning with the date on which the decision of the Department on that application was communicated to the persons presenting it or, if that is not reasonably practicable, within such further period as is reasonable.

(3)Where an industrial tribunal finds that the Department ought to make a payment under section 120, it shall make a declaration to that effect and shall also declare the amount of any such payment which it finds that the Department ought to make.

123 Transfer to Department of rights and remedies.N.I.

(1)Where in pursuance of section 120 the Department makes any payment into the resources of an occupational pension scheme or a personal pension scheme in respect of any contributions to the scheme, any rights and remedies in respect of those contributions belonging to the persons competent to act in respect of the scheme shall, on the making of the payment, become rights and remedies of the Department.

(2)Where—

(a)the Department makes any such payment as is mentioned in subsection (1); and

(b)the sum (or any part of the sum) falling to be paid by the employer on account of the contributions in respect of which the payment is made constitutes a preferential debt within the meaning of the M25Insolvency (Northern Ireland) Order 1989 for the purposes of any provision of that Order (including any such provision as applied by an order made under that Order [F593or any provision of the Companies Acts (as defined in section 2(1) of the Companies Act 2006)]) F594...,

then, without prejudice to the generality of subsection (1), there shall be included among the rights and remedies which become rights and remedies of the Department in accordance with that subsection any right arising under any such provision by reason of the status of that sum (or that part of it) as a preferential or preferred debt.

(3)In computing for the purposes of any provision referred to in subsection (2)(b) the aggregate amount payable in priority to other creditors of the employer in respect of—

(a)any claim of the Department to be so paid by virtue of subsection (2); and

(b)any claim by the persons competent to act in respect of the scheme,

any claim falling within paragraph (a) shall be treated as if it were a claim of those persons; but the Department shall be entitled, as against those persons, to be so paid in respect of any such claim of the Department (up to the full amount of the claim) before any payment is made to them in respect of any claim falling within paragraph (b).

Textual Amendments

Marginal Citations

Chapter IIIN.I. Priority in Bankruptcy

124 Priority in bankruptcy, etc.N.I.

Schedule 3 shall have effect for affording priority in cases of insolvency to liabilities in respect of contributions to occupational pension schemes and in respect of state scheme premiums.

Part VIIIN.I. Relationship Between Requirements and Scheme Rules

125 Overriding requirements.N.I.

(1)Subject to subsection (2), the provisions of [F595Chapters 2 and 3 of Part 4, Chapters 1 and 2 of Part 4ZA] [F596Chapters I and II of Part IVA,], F597. . . section 106(1) F597. . . and any regulations made F597. . . under [F598any of those Chapters or] section 109 F597. . . override any provision of a scheme to which they apply to the extent that it conflicts with them.

(2)Chapter II of Part IV (as it applies to occupational pension schemes), [F599and Chapter III of that Part] do not override a protected provision of a scheme F600....

(3)In subsection (2) “protected provision” means—

F601(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F602(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)any provision of a scheme which is included in it for the purpose of effecting a transfer of rights or liabilities authorised by regulations under section 16(1);

(d)any provision of a scheme to the extent that it deals with commutation, suspension or forfeiture of the whole or part of a pension; and

(e)any provision of a scheme whereby, as respects so much of a [F603widow's, widower’s or surviving civil partner's] pension as exceeds the guaranteed minimum pension—

(i)no pension or a pension at a reduced rate is payable if the earner and the [F604widow, widower or surviving civil partner married or, as the case may be, formed a civil partnership] not more than six months before the earner’s death;

(ii)the whole or any part of the pension is not paid to the [F605widow, widower or surviving civil partner], but instead comparable benefits are provided for one or more dependants of the deceased earner; or

(iii)no pension, or a pension at a reduced rate, is payable to the [F605widow, widower or surviving civil partner] (or, where a provision such as is mentioned in sub-paragraph (ii) operates, to another dependant of the deceased earner) who was more than ten years younger than the deceased earner.

(4)For the purposes of the application of Chapter II of Part IV to schemes which are not contracted-out, subsection (3) shall have effect with the omission—

(a)from paragraph (c), of the words from “authorised” to the end; and

(b)from paragraph (e), of the words from “as respects” to “guaranteed minimum pension”.

Textual Amendments

F599Words in s. 125(2) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 119, Sch. 1 para. 23(b) (with art. 118(5)(6)); S.R. 1997/192, art. 2(b)

126 Extra-statutory benefits.N.I.

It is hereby declared that—

(a)nothing in Part III precludes an occupational pension scheme from providing benefits that are more favourable than those required for contracting-out purposes and, in particular, nothing in section 12(3) is to be taken as preventing the scheme from providing increases above the alternative minima there mentioned; and

(b)nothing in the provisions of [F606Chapter 2 of Part 4 or Chapter 1 or 2 of Part 4ZA] precludes a scheme from being framed or managed more favourably to beneficiaries than is called for by those provisions.

Textual Amendments

127 Relationship of preservation requirements and scheme rules.N.I.

It is hereby declared that nothing in Chapter I of Part IV—

(a)applies with direct effect to any scheme, or to the rights or liabilities of any person in, under or by virtue of a scheme; or

(b)precludes a scheme from being so framed as to provide benefits on any ampler scale, or (subject to any express provision made in that Chapter) payable at any earlier time or otherwise more favourable to beneficiaries, than is called for by the preservation requirements.

128 Duty to bring schemes into conformity with indirectly-applying requirements.N.I.

Where the rules of an occupational pension scheme to which the preservation requirements, F607. . . F608... apply do not comply with those requirements it shall be the responsibility of—

(a)the trustees and managers of the scheme; or

(b)in the case of a public service pension scheme, the Minister of the Crown, government department or other person or body concerned with its administration,

to take such steps as are open to them for bringing the rules of the scheme into conformity with those requirements.

Textual Amendments

F609129

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Textual Amendments

F610130

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Textual Amendments

F611131

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Textual Amendments

Part IXN.I. Modification and Winding Up of Schemes

ModificationN.I.

F612132

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F613133. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F614134

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F615135

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F616136

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F617137

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Winding upN.I.

F618138 Powers of the Board to wind up schemes.N.I.

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F619139 Winding up of public service schemes.N.I.

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F620140 Deficiencies in the assets of a scheme on winding up.N.I.

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Part XN.I. Investigations: the Pensions Ombudsman

Modifications etc. (not altering text)

141 The Pensions Ombudsman.N.I.

(1)In this Part “the Pensions Ombudsman” means the person appointed under section 145 of the M26Pension Schemes Act 1993.

[F621(2A)The Pensions Ombudsman may (with the approval of the Department as to numbers) appoint such persons to be employees of his as he thinks fit, on such terms and conditions as to remuneration and other matters as the Pensions Ombudsman may with the approval of the Department determine.

(2B)The Department may, on such terms as to payment by the Pensions Ombudsman as the Department thinks fit, make available to the Pensions Ombudsman such additional staff and such other facilities as it thinks fit.

(2C)Any function of the Pensions Ombudsman, other than the determination of complaints made and disputes referred under this Part, may be performed by any—

(a)employee appointed by the Pensions Ombudsman under subsection (2A) or any corresponding provision in force in Great Britain, or

(b)member of staff made available to him under subsection (2B) or any corresponding provision in force in Great Britain,

who is authorised for that purpose by the Pensions Ombudsman.]

(3)The Department may reimburse the Pensions Ombudsman in respect of any expenses incurred by him in the performance of his functions.

Textual Amendments

F621S. 141(2)-(2C) substituted (19.12.1995) for s. 141(2) by S.I. 1995/3213 (N.I. 22), art. 152; S.R. 1995/477, art. 2(a), Sch Pt. II

Marginal Citations

142 Functions of the Pensions Ombudsman.N.I.

[F622(1)The Pensions Ombudsman may investigate and determine the following [F623matters]—

(a)a complaint made to him by or on behalf of an actual or potential beneficiary of an occupational or personal pension scheme who alleges that he has sustained injustice in consequence of maladministration in connection with any act or omission of a person responsible for the management of the scheme,

(b)a complaint made to him—

(i)by or on behalf of a person responsible for the management of an occupational pension scheme who in connection with any act or omission of another person responsible for the management of the scheme, alleges maladministration of the scheme, or

(ii)by or on behalf of the trustees or managers of an occupational pension scheme who in connection with any act or omission of any trustee or manager of another such scheme, allege maladministration of the other scheme,

and in any case falling within sub-paragraph (ii) references in this Part to the scheme to which the complaint relates [F624are references to the other scheme referred to in that sub-paragraph]

[F625(ba)a complaint made to him by or on behalf of an independent trustee of a trust scheme who, in connection with any act or omission which is an act or omission either—

(i)of trustees of the scheme who are not independent trustees, or

(ii)of former trustees of the scheme who were not independent trustees,

alleges maladministration of the scheme,]

(c)any dispute of fact or law F626. . . in relation to an occupational or personal pension scheme between—

(i)a person responsible for the management of the scheme, and

(ii)an actual or potential beneficiary,

F626. . . and

(d)any dispute of fact or law F626. . . between the trustees or managers of an occupational pension scheme and—

(i)another person responsible for the management of the scheme, or

(ii)any trustee or manager of another such scheme,

[F627and in a case falling within sub-paragraph (ii) references in this Part to the scheme to which the reference relates are references to each of the schemes,

(e)

any dispute not falling within paragraph (f) between different trustees of the same occupational pension scheme,

(f)

[F628any dispute, in relation to a time while Article 22 of the Pensions (Northern Ireland) Order 1995 (circumstances in which the Regulatory Authority may appoint an independent trustee) applies in relation to an occupational pension scheme, between an independent trustee of the scheme appointed under Article 23(1) of that Order and either—

(i)

other trustees of the scheme, or

(ii)

former trustees of the scheme who were not independent trustees appointed under Article 23(1) of that Order, and]

(g)

any question relating, in the case of an occupational pension scheme with a sole trustee, to the carrying out of the functions of that trustee.]

[F629(1A)The Pensions Ombudsman shall not investigate or determine any dispute or question falling within subsection (1)(c) to (g) unless it is referred to him—

(a)in the case of a dispute falling within subsection (1)(c), by or on behalf of the actual or potential beneficiary who is a party to the dispute,

(b)in the case of a dispute falling within subsection (1)(d), by or on behalf of any of the parties to the dispute,

(c)in the case of a dispute falling within subsection (1)(e), by or on behalf of at least half the trustees of the scheme,

(d)in the case of a dispute falling within subsection (1)(f), by or on behalf of the independent trustee who is a party to the dispute,

(e)in the case of a question falling within subsection (1)(g), by or on behalf of the sole trustee.

(1B)For the purposes of this Part any reference to or determination by the Pensions Ombudsman of a question falling within subsection (1)(g) shall be taken to be the reference or determination of a dispute.]

(2)Complaints and references made to the Pensions Ombudsman must be made to him in writing.

(3)For the purposes of this Part, the following persons (subject to subsection (4)) are responsible for the management of an occupational pension scheme [F630or a personal pension scheme]—

(a)the trustees or managers, and

(b)the employer;

but, in relation to a person falling within one of those paragraphs, references in this Part to another person responsible for the management of the same scheme are to a person falling within the other paragraph.

F631(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Regulations may provide that, subject to any prescribed modification or exceptions, this Part shall apply in the case of an occupational or personal pension scheme in relation to any prescribed person or body of persons where the person or body—

(a)is not a trustee or manager or employer, but

(b)is concerned with the financing or administration of, or the provision of benefits under, the scheme,

as if for the purposes of this Part he were a person responsible for the management of the scheme.]

[F632(4A)For the purposes of subsection (4) a person or body of persons is concerned with the administration of an occupational or personal pension scheme where the person or body is responsible for carrying out an act of administration concerned with the scheme.]

(5)The Pensions Ombudsman may investigate a complaint or dispute notwithstanding that it arose, or relates to a matter which arose, before 1st October 1990 (the date on which the provisions under which his office was constituted came into force).

(6)The Pensions Ombudsman shall not investigate or determine a complaint or dispute—

[F633(a)if, before the making of the complaint or the reference of the dispute—

(i)proceedings in respect of the matters which would be the subject of the investigation have been begun in any court or industrial tribunal, and

(ii)those proceedings are proceedings which have not been discontinued or which have been discontinued on the basis of a settlement or compromise binding all the persons by or on whose behalf the complaint or reference is made;]

(b)if the scheme is of a description which is excluded from the jurisdiction of the Pensions Ombudsman by regulations under this subsection; or

(c)if and to the extent that the complaint or dispute, or any matter arising in connection with the complaint or dispute, is of a description which is excluded from the jurisdiction of the Pensions Ombudsman by regulations under this subsection.

(7)The persons who, for the purposes of this Part are [' F634actual or potential beneficiaries']in relation to a scheme are—

(a)a member of the scheme;

(b)the [F635widow, widower or surviving civil partner], or any surviving dependant, of a deceased member of the scheme;

[F636(ba)a person who is entitled to a pension credit as against the trustees or managers of the scheme;]

[F637(bb)a person who has given notice in accordance with section 8 of the Pensions (No. 2) Act (Northern Ireland) 2008 (right to opt out of membership of an automatic enrolment scheme);]

(c)where the complaint or dispute relates to the question—

(i)whether a person who claims to be such a person as is mentioned in [F638paragraph (a), (b) [F639 , (ba) or (bb) ]] is such a person, or

(ii)whether a person who claims to be entitled to become a member of the scheme is so entitled,

the person so claiming.

(8)In this Part—

  • “employer”, in relation to a pension scheme, includes a person—

    (a)

    who is or has been an employer in relation to the scheme, or

    (b)

    who is or has been treated under section 176(2) as an employer in relation to the scheme for the purposes of any provision of this Act, or under section 181(2) of the M27Pension Schemes Act 1993 as an employer in relation to the scheme for the purposes of any provision of that Act;

  • [F640“independent trustee”, in relation to a scheme, means—

(a)a trustee of the scheme appointed under [F641Article 23(1) of the Pensions (Northern Ireland) Order 1995 (appointment of independent trustee by the Regulatory Authority)]

(b)a person appointed under Article 7(1) of that Order to replace a trustee falling within paragraph (a) or this paragraph;]

  • “member”, in relation to a pension scheme, includes a person—

    (a)

    who is or has been in pensionable service under the scheme, or

    (b)

    who is or has been treated under section 176(4) as a member in relation to the scheme for the purposes of any provision of this Act or under section 181(4) of the Pension Schemes Act 1993 as a member in relation to the scheme for the purposes of any provision of that Act;

  • “trustees or managers”, in relation to a pension scheme which is a public service pension scheme or a United Kingdom public service pension scheme, includes the scheme’s administrators;

  • “United Kingdom public service pension scheme” means a public service pension scheme as defined in section 181(1) of the Pension M28Schemes Act 1993;

and in this subsection “pensionable service” includes pensionable service as defined in section 181(1) of the M29Pension Schemes Act 1993.

Textual Amendments

F622S. 142(1)-(4) substituted (23.7.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(2); S.R. 1996/307, art. 2(a), Sch. Pt. I; S.R. 1997/192, art. 2(b)

F623Words in s. 142(1) substituted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(9)(a) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F624Words in s. 142(1)(b) substituted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(9)(b) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F625S. 142(1)(ba) inserted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(2) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F626Words in s. 142(1)(c)(d) repealed (1.12.2000) by 2000 c. 4 (N.I.), ss. 49(9)(c), 67, Sch. 9 Pt. III(3) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F627Words in s. 142(1)(d) and s. 142(1)(e)-(g) substituted (1.12.2000) for words in s. 142(1)(d) by 2000 c. 4 (N.I.), s. 49(3) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F629S. 142(1A)(1B) inserted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(4) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F630Words in s. 142(3) inserted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(5) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F633S. 142(6)(a) substituted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(6) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F634Words in s. 142(7) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(3); S.R. 1997/192, art. 2(b)

F636S. 142(7)(ba) inserted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(7)(a) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F638Words in s. 142(7)(c)(i) substituted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(7)(b) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F640S. 142(8): definition of

“independent trustee”

inserted (1.12.2000) by 2000 c. 4 (N.I.), s. 49(8) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

Modifications etc. (not altering text)

C114S. 142(6) modified (1.12.2000) by 2000 c. 4 (N.I.), s. 49(10) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

Marginal Citations

143 Death, insolvency or disability of authorised complainant.N.I.

(1)Where an [F642actual or potential beneficiary] dies or is a minor or is otherwise unable to act for himself, then, unless subsection (3) applies—

(a)any complaint or dispute (whenever arising) which the [F642actual or potential beneficiary] might otherwise have made or referred under this Part may be made or referred by the appropriate person, and

(b)anything in the process of being done by or in relation to the [F642actual or potential beneficiary] under this Part may be continued by or in relation to the appropriate person,

and any reference in this Part, except this section, to an [F642actual or potential beneficiary] shall be construed as including a reference to the appropriate person.

(2)For the purposes of subsection (1) “the appropriate person” means—

(a)where the [F643actual or potential beneficiary] has died, his personal representatives; or

(b)in any other case, a member of [F643his] family, or some body or individual suitable to represent him.

(3)Where a person is acting as an insolvency practitioner in relation to [F644a person by whom, or on whose behalf, a complaint or reference has been made under this Part], investigations under this Part shall be regarded for the purposes of the M30Insolvency (Northern Ireland) Order 1989 as legal proceedings.

(4)In this section “acting as an insolvency practitioner” shall be construed in accordance with Article 3 of the Insolvency (Northern Ireland) Order 1989, but disregarding paragraph (5) of that Article (exclusion of official receiver).

Textual Amendments

F642Words in s. 143(1) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(4); S.R. 1997/192, art. 2(b)

F643Words in s. 143(2) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(4); S.R. 1997/192, art. 2(b)

F644Words in s. 143(3) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(5); S.R. 1997/192, art. 2(b)

Marginal Citations

144 Staying court proceedings where a complaint is made or a dispute is referred.N.I.

(1)This section applies where—

(a)a complaint has been made or a dispute referred to the Pensions Ombudsman; and

(b)any party to the investigation subsequently commences any legal proceedings in any court against any other party to the investigation in respect of any of the matters which are the subject of the complaint or dispute.

(2)Where this section applies, any party to the legal proceedings may—

(a)if the proceedings are in the High Court, at any time after an appearance has been entered and before delivering any pleadings or taking any other step in the proceedings;

(b)if the proceedings are in the county court, at any time after the civil bill or other originating process has been served and before taking any other step in the proceedings,

apply to the court to stay the proceedings.

(3)On an application under subsection (2) the court may make an order staying the proceedings if it is satisfied—

(a)that there is no sufficient reason why the matter should not be investigated by the Pensions Ombudsman; and

(b)that the applicant was at the time when the legal proceedings were commenced and still remains ready and willing to do all things necessary to the proper conduct of the investigation.

(4)For the purposes of this section the parties to an investigation are—

[F645(a)the person by whom, or on whose behalf, the complaint or reference has been made;

(b)any person responsible for the management of the scheme to which the complaint or reference relates;]

F646[F647(ba). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F648(bb)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)any person against whom allegations are made in the complaint or reference; and

(d)any person claiming under a person falling within paragraphs (a) to (c).

Textual Amendments

F645S. 144(4)(a)(b) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(6); S.R. 1997/192, art. 2(b)

F647S. 144(4)(ba)(bb) inserted (1.3.2002 for the purposes only of authorising the making of rules) by 2000 c. 4 (N.I.), ss. 50(2), 68(2) (with ss. 50(9), 66(6)); S.R. 2002/68, art. 2(2)

145 Procedure on an investigation.N.I.

F649(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F650(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F651(1B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)The Department may make rules with respect to the procedure which is to be adopted in connection with the making of complaints, the reference of disputes, and the investigation of complaints made and disputes referred, under this Part.

(3)The rules may include provision—

(a)requiring any oral hearing held in connection with such an investigation to take place in public, except in such cases as may be specified in the rules; F652. . .

(b)as to the persons entitled to appear and be heard on behalf of parties to an investigation, as defined in section 144(4)

F653(ba). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F654(c)for the payment by the Pensions Ombudsman of such travelling and other allowances (including compensation for loss of remunerative time) as the Department may determine, to—

(i)actual or potential beneficiaries of a scheme to which a complaint or reference relates, or

(ii)persons appearing and being heard on behalf of such actual or potential beneficiaries, who attend at the request of the Pensions Ombudsman any oral hearing held in connection with an investigation into the complaint or dispute][F655and

F656(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(4)Subject to any provision made by the rules, the procedure for conducting such an investigation shall be such as the Pensions Ombudsman considers appropriate in the circumstances of the case; and he may in particular obtain information from such persons and in such manner, and make such inquiries, as he thinks fit.

[F657(5)The Pensions Ombudsman may disclose any information which he obtains for the purposes of an investigation under this Part to any person to whom subsection (6) applies, if the Ombudsman considers that the disclosure would enable or assist that person to discharge any of his functions.

(6)This subsection applies to the following—

(a)the Regulatory Authority,

[F658(b)the Board of the Pension Protection Fund,

(ba)the Ombudsman for the Board of the Pension Protection Fund,]

F659(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)any Northern Ireland department or department of the Government of the United Kingdom,

[F660(e)the Financial Conduct Authority,

(ea)the Prudential Regulation Authority,

(eb)the Bank of England (acting otherwise than in its capacity as the Prudential Regulation Authority),]

F661(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F661(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F662(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F663(i)a person appointed under—

(i)Part 14 of the Companies Act 1985,

(ii)section 167 of the Financial Services and Markets Act 2000,

(iii)subsection (3) or (5) of section 168 of that Act, or

(iv)section 284 of that Act,

to conduct an investigation;

(j)a body designated under section 326(1) of the Financial Services and Markets Act 2000; and

(k)a recognised investment exchange [F664, recognised clearing houseF665... [F666, third country central counterparty, recognised CSD F667... or third country CSD]] (as defined by section 285 of that Act).]

(m)[F668a person who, in a member State F669..., has functions corresponding to functions of the Pensions Ombudsman.]

[F670(n)a body corporate established in accordance with paragraph 2(1) of Schedule 17 to the Financial Services and Markets Act 2000 (the scheme operator of the ombudsman scheme),

(o)an ombudsman as defined in paragraph 1 of that Schedule (interpretation).]

(7)The Department may by order—

(a)amend subsection (6) by adding any person or removing any person for the time being specified in that subsection, or

(b)restrict the circumstances in which, or impose conditions subject to which, disclosure may be made to any person for the time being specified in that subsection.]

F671(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F652Word in s. 145(3)(a) omitted (23.7.1996 for certain purposes otherwise 6.4.1997) and repealed (6.4.1997) by S.I. 1995/3213 (NI 22), arts. 1(2), 154(b), 168, Sch. 5 Pt. IV: S.R. 1996/307, art. 2(b), Sch. Pt. II; S.R. 1997/192, art. 2(b)

F654S. 145(3)(c) and the preceding word “and” inserted (23.7.1996 for certain purposes only otherwise 6.4.1997) by S.I. 1995/3213 (NI 22), art. 154(a); S.R. 1996/307, art. 2(b), Sch. Pt. II; S.R. 1997/192, art. 2(b)

F655S. 145(3)(d) and preceding word added (1.3.2002 for the purpose only of authorising the making of rules) by 2000 c. 4 (N.I.), ss. 50(5), 68(2) (with ss. 50(9), 66(6)); S.R. 2002/68, art. 2(2)

F657S. 145(5)-(7) added (6.4.1997) by S.I. 1995/3213 (NI 22), art. 155(1); S.R. 1997/192, art. 2(b)

F661S. 145(6)(f)(g) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 135(a)

F663S. 145(6)(i)-(k) substituted (1.12.2001) for s. 145(6)(i)-(l) by S.I. 2001/3649, arts. 1, 135(b)

Modifications etc. (not altering text)

146 Investigations: further provisions.N.I.

(1)For the purposes of an investigation under this Part or under any corresponding legislation having effect in Great Britain, the Pensions Ombudsman may require—

(a)[F672any person responsible for the management of the scheme to which the complaint or reference relates], or

(b)any other person who, in his opinion, is able to furnish information or produce documents relevant to the investigation,

to furnish any such information or produce any such documents.

(2)For the purposes of any such investigation the Pensions Ombudsman shall have the same powers as a county court in respect of the attendance and examination of witnesses (including the administration of oaths and affirmations and the examination of witnesses abroad) and in respect of the production of documents.

(3)No person shall be compelled for the purposes of any such investigation to give any evidence or produce any document which he could not be compelled to give or produce in civil proceedings before a county court.

(4)If any person without lawful excuse obstructs the Pensions Ombudsman in the performance of his functions or is guilty of any act or omission in relation to an investigation under this Part which, if that investigation were a proceeding in a county court, would constitute contempt of court, the Pensions Ombudsman may certify the offence to a county court.

(5)Where an offence is certified under subsection (4) the court may inquire into the matter and, after hearing any witnesses who may be produced against or on behalf of the person charged with the offence and hearing any statement that may be offered in defence, deal with him in any manner in which the court could deal with him if he had committed the like offence in relation to the court.

(6)To assist him in an investigation, the Pensions Ombudsman may obtain advice from any person who in his opinion is qualified to give it and may pay to any such person such fees or allowances as he may with the approval of the Department of Finance and Personnel determine.

(7)The Pensions Ombudsman may refer any question of law arising for determination in connection with a complaint or dispute to the Court of Appeal.

Textual Amendments

F672Words in s. 146(1)(a) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(8); S.R. 1997/192, art. 2(b)

147 Determinations of the Pensions Ombudsman.N.I.

(1)Where the Pensions Ombudsman has conducted an investigation under this Part he shall send by ordinary post a written statement of his determination of the complaint or dispute in question—

[F673(a)to the person by whom, or on whose behalf, the complaint or reference was made; and

(b)to any person (if different) responsible for the management of the scheme to which the complaint or reference relates;]F674[F675. . .

(c)]F674. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and any such statement shall contain the reasons for his determination.

(2)Where the Pensions Ombudsman makes a determination under this Part or under any corresponding legislation having effect in Great Britain, he may direct [F676any person responsible for the management of the scheme to which the complaint or reference relates] to take, or refrain from taking, such steps as he may specify in the statement referred to in subsection (1) or otherwise in writing.

(3)Subject to subsection (4), the determination by the Pensions Ombudsman of a complaint or dispute, and any direction given by him under subsection (2), shall be final and binding on—

[F677(a)the person by whom, or on whose behalf, the complaint or reference was made;

(b)any person (if different) responsible for the management of the scheme to which the complaint or reference relates;

F678(ba). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F679(bb). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)any person claiming under a person falling within F680....]

(4)An appeal on a point of law shall lie to the Court of Appeal from a determination or direction of the Pensions Ombudsman at the instance of any person falling within paragraphs (a) to (c) of subsection (3).

(5)Any determination or direction of the Pensions Ombudsman shall be enforceable as if it were a judgment or order of the county court.

(6)If the Pensions Ombudsman considers it appropriate to do so in any particular case, he may publish in such form and manner as he thinks fit a report of any investigation under this Part and of the result of that investigation.

(7)For the purposes of the law of defamation, the publication of any matter by the Pensions Ombudsman—

(a)in submitting or publishing a report under section 145(6) of the M31Pension Schemes Act 1993 or subsection (6) of this section

[F681(aa)in disclosing any information under section 145(5),], or

(b)in sending to any person a statement under subsection (1) or a direction under subsection (2),

shall be absolutely privileged.

Textual Amendments

F673S. 147(1)(a)(b) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(9); S.R. 1997/192, art. 2(b)

F675S. 147(1)(c) and preceding word added (1.3.2002 for the purpose only of authorising the making of rules) by 2000 c. 4 (N.I.), ss. 50(7), 68(2) (with ss. 50(9), 66(6)); S.R. 2002/68, art. 2(2)

F676Words in s. 147(2) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(10); S.R. 1997/192, art. 2(b)

F677S. 147(3)(a)-(c) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 153(11); S.R. 1997/192, art. 2(b)

F681S. 147(7)(aa) inserted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 155(2); S.R. 1997/192, art. 2(b)

Marginal Citations

[F682147A Interest on late payment of benefit.N.I.

Where under this Part the Pensions Ombudsman directs a person responsible for the management of an occupational or personal pension scheme to make any payment in respect of benefit under the scheme which, in his opinion, ought to have been paid earlier, his direction may also require the payment of interest at the prescribed rate.]

Textual Amendments

F682S. 147A inserted (23.7.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 156; S.R. 1996/307, art. 2(a), Sch. Pt. I; S.R. 1997/192, art. 2(b)

148 Power to apply county court rules.N.I.

Without prejudice to the generality of section 145, rules made by the Department under this section may, to any extent and with or without modifications, apply any county court rules to proceedings under or by virtue of this Part.

Part XIN.I. General and Miscellaneous Provisions

Modification powersN.I.

149 Power to modify certain provisions of this Act.N.I.

(1)The Department may by regulations direct that [F683Chapters 2 and 3 of Part 4 and Chapter 1 of Part 4ZA] F684. . . shall have effect, in such cases as it may specify in the regulations, subject to such modifications as it may specify.

(2)Regulations may modify Chapter I of Part IV—

(a)in its application to cases where an earner is for the time being, or has been, employed in pensionable service under, or in contracted-out employment by reference to, different schemes applying to the same employment;

(b)in such manner as the Department thinks fit for securing that the preservation requirements include requirements for provision to be made in a scheme as to the preservation of a member’s benefit in the event of the scheme being wound up;

(c)without prejudice to paragraph (a) or (b), so that the preservation requirements apply with such modifications and exceptions as the Department considers to be necessary for particular cases or classes of case;

and regulations under paragraph (a) may relate to service under or, as the case may be, by reference to different schemes at the same time, or at different times.

F685(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F685(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F686(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F686(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F686(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)The Department may by order provide that any enactment in Chapter II of Part VII which is specified in the order shall not apply to persons or to employments of such classes as may be prescribed in the order.

In this subsection “employments” has the same meaning as in that Chapter.

Textual Amendments

150 Application of enactments as respects personal pension schemes.N.I.

(1)Regulations may provide that any provision of this Act [F687or of Articles 22 to 26 and 40 of the Pensions (Northern Ireland) Order 1995] which relates to occupational pension schemes (other than a provision to which subsection (2) applies) shall have effect in relation to personal pension schemes subject to prescribed modifications.

(2)This subsection applies to F688. . .section 107 so far as it relates to occupational pension schemes (and Part VIII and section 149 so far as they have effect for the purposes of section 107 as it so relates), sections 113, 119 to 123, 151, 153, 156 and 157.

Textual Amendments

F687Words in s. 150(1) inserted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 119, Sch. 1 para. 32; S.R. 1997/192, art. 2(b)

F688Words in s. 150(2) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 168, Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

Information about schemesN.I.

[F689151 Requirement to give information to the Department, Secretary of State or Inland Revenue for the purposes of certain provisions.N.I.

(1)Regulations may require the furnishing by prescribed persons to the Department, the Secretary of State or the Inland Revenue of such information as it or he requires or they require for the purposes of Part III, section 107 (and Part VIII and section 149 so far as they have effect for the purposes of section 107) [F690and section 113].

(2)In this section “regulations” means regulations made by the Department or, as the case may be, the Secretary of State and “prescribed” shall be construed accordingly.]

Textual Amendments

F689S. 151 substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 70; S.R. 1999/149, art. 2(c), Sch. 2

[F691152 Information for purposes of contracting-outN.I.

(1)The Department or the Inland Revenue may give to the trustees or managers of an occupational pension scheme [F692or a personal pension scheme which was an appropriate scheme before the abolition date] such information as appears to the Department or Inland Revenue appropriate to give to them for the purpose of enabling them to comply with their obligations under Part III.

(2)The Department or Inland Revenue may also give to such persons as may be prescribed any information that they could give under subsection (1) to trustees or managers of a scheme.]

Textual Amendments

153 Power of Department to obtain information in connection with applications under s. 120.N.I.

(1)Where an application is made to the Department under section 120 in respect of contributions to an occupational pension scheme or personal pension scheme falling to be made, by an employer the Department may require—

(a)the employer to provide it with such information as the Department may reasonably require for the purpose of determining whether the application is well founded; and

(b)any person having the custody or control of any relevant records or other documents to produce for examination on behalf of the Department any such document in that person’s custody or under his control which is of such a description as the Department may require.

(2)Any such requirement shall be made by notice in writing given to the person on whom the requirement is imposed and may be varied or revoked by a subsequent notice so given.

(3)If a person refuses or wilfully neglects to furnish any information or produce any document which he has been required to furnish or produce by a notice under this section he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4)If a person, in purporting to comply with a requirement of a notice under this section, knowingly or recklessly makes any false statement, he shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(5)This section shall be construed as if it were in Chapter II of Part VII.

154 Disclosure of information between government departments, etc.N.I.

(1)No obligation as to secrecy imposed by statute or otherwise on [F693 Revenue and Customs officials ] shall prevent information obtained or held in connection with the assessment or collection of income tax from being disclosed—

(a)to the Department,

(b)to the Secretary of State, or

(c)to an officer of either of them authorised to receive such information, in connection with the operation of this Act (except Chapter II of Part VII and sections 153 and 157) or of any corresponding legislation in Great Britain.

[F694(1A)No obligation as to secrecy imposed by statute or otherwise on [F693 Revenue and Customs officials ] shall prevent information obtained or held for the purposes of Part III of this Act from being disclosed—

(a)to the Department,

(b)to the Secretary of State,

(c)to an officer of either of them authorised to receive such information,

in connection with the operation of this Act or of any corresponding Great Britain legislation.]

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F695(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)In relation to persons who are carrying on or have carried on [F696 wholly or partly in the United Kingdom ] a trade, profession or vocation income from which is chargeable to tax under [F697 Part 2 of the Income Tax (Trading and Other Income) Act 2005 or ] Case I or II of Schedule D, disclosure under subsection (1) relating to that trade, profession or vocation shall be limited to information about the commencement or cessation of, and employed earners engaged in, that trade profession or vocation, but sufficient information may also be given to identify the persons concerned.

(5)[F698Subsections (1) and (1A)][F699extend] only to disclosure by or under the authority of [F700 the Commissioners for Her Majesty’s Revenue and Customs ].

(6)F701..., Information which is the subject of disclosure to any person by virtue of subsection (1) [F702or (1A)], F703. . . shall not be further disclosed to any other person, except where the further disclosure is made—

(a)to a person to whom disclosure could by virtue of this section have been made by or under the authority of [F704 the Commissioners for Her Majesty’s Revenue and Customs ] ; or

(b)for the purposes of any civil or criminal proceedings in connection with the operation of this Act (except Chapter II of Part VII and sections 153 and 157); or

(c)for the purposes of [F705Chapter II of Part II of the Social Security (Northern Ireland) Order 1998] or any corresponding provisions of legislation in Great Britain; [F706or

(ca)for the purposes of Part III of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 or any corresponding Great Britain legislation.]. . .

F707(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F708(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F709(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F710(9)In this section “Revenue and Customs officials” has the meaning given by section 18 of the Commissioners for Revenue and Customs Act 2005 (confidentiality).]

Textual Amendments

F696Words in s. 154(4) inserted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 470(a) (with Sch. 2)

F697Words in s. 154(4) inserted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 470(b) (with Sch. 2)

F698Words in s. 154(5) substituted (1.4.1999) by S.I. 1999/671, art. 6, Sch. 5 para. 7(3); S.R. 1999/149, art. 2(c), Sch. 2

F699Word in s. 154(5) inserted (retrospective to 1.4.1999) by 1999 c. 30, s. 81, Sch. 11 para. 25(1)(2)

F702Words in s. 154(6) inserted (1.4.1999) by S.I. 1999/671, art. 6, Sch. 5 para. 7(4)(a); S.R. 1999/149, art. 2(c), Sch. 2

F705Words in s. 154(6)(c) substituted (5.7.1999 and 29.11.1999 for specified purposes, otherwiseprosp.) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 78(1), Sch. 6 para. 97; S.R. 1999/310, art. 2(b), Sch. 1; S.R. 1999/472, art. 2(1)(a), Sch.1 (subject to art. 2(2) of the said S.R. 1999/472)

F706S. 154(6)(ca) and the preceding word “or” inserted (1.4.1999) by S.I. 1999/671, art. 6, Sch. 5 para. 7(4)(b); S.R. 1999/149, art. 2(c), Sch. 2

F707S. 154(6)(d) and the preceding “or” repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 56(c), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

[F711154A Other disclosures by the Department.N.I.

(1)The Department may, in spite of any obligation as to secrecy or confidentiality imposed by statute or otherwise on the Department or on persons employed in it, disclose [F712any regulated information] to any person specified in the first column of the following Table if it considers that the disclosure would enable or assist the person to discharge the functions specified in relation to the person in the second column of the Table.

TABLE
PersonsFunctions
F713. . .F713. . .
The Bank of England.[F714Any of its functions [F715, apart from its functions as the Prudential Regulation Authority].]
[F716The [F717Financial Conduct Authority or the Prudential Regulation Authority]][F718Functions under the legislation relating to friendly societies, under the Building Societies Act 1986, or under the Financial Services and Markets Act 2000.]
The Regulatory Authority.Functions under this Act [F719, the Pensions (Northern Ireland) Order 1995, the Welfare Reform and Pensions (Northern Ireland) Order 1999 or the Pensions (Northern Ireland) Order 2005 or any enactment in force in Great Britain corresponding to any of them.]
[F720The Pensions Ombudsman. Functions conferred by or by virtue of this Act or any enactment in force in Great Britain corresponding to it.
The Board of the Pension Protection Fund.Functions conferred by or by virtue of Part III of the Pensions (Northern Ireland) Order 2005 or any enactment in force in Great Britain corresponding to that Part.
The Ombudsman for the Board of the Pension Protection Fund.Functions conferred by or by virtue of Part III of the Pensions (Northern Ireland) Order 2005 or any enactment in force in Great Britain corresponding to that Part.]

[F721A person appointed under—

(a)section 167 of the Financial Services and Markets Act 2000

(b)subsection (3) or (5) of section 168 of that Act, or

(c)section 284 of that Act,to conduct an investigation.

Functions in relation to that investigation.
A body designated under section 326(1) of the Financial Services and Markets Act 2000.Functions in its capacity as a body designated under that section.
A recognised investment exchange [F722, recognised clearing houseF723..., third country central counterparty, recognised CSD F724... or third country CSD] (as defined by section 285 of that Act).Functions in its capacity as an exchange [F725, clearing house] [F726, central securities depository or central counterparty].]
F713. . .F713. . .
F713. . .F713. . .
F713. . .F713. . .
F713. . .F713. . ..
F713. . .F713. . .
F713. . .F713. . .

[F727(1AA)In subsection (1) “regulated information” means information received by the Department in connection with its functions under—

(a)this Act;

(b)the Pensions (Northern Ireland) Order 1995, or

(c)the Pensions (Northern Ireland) Order 2005 or the Pensions Act 2004,

other than information supplied to it under section 235(2) of, or paragraph 2 of Schedule 10 to, the Pensions Act 2004 (supply of information for retirement purposes etc.).]

[F728(1A)The Inland Revenue may, in spite of any obligation as to secrecy or confidentiality imposed by statute or otherwise on them or on their officers, disclose any information received by them in connection with their functions under Part III of this Act to any person specified in the first column of the Table in subsection (1) if they consider that the disclosure would enable or assist the person to discharge the functions specified in relation to the person in the second column of the Table.]

(2)The Department may by order—

(a)amend the Table in subsection (1) by—

(i)adding any person exercising regulatory functions and specifying functions in relation to that person,

(ii)removing any person for the time being specified in the Table, or

(iii)altering the functions for the time being specified in the Table in relation to any person, or

(b)restrict the circumstances in which, or impose conditions subject to which, disclosure is permitted in the case of any person for the time being specified in the Table.]

Textual Amendments

F711S. 154A inserted (6.4.1996) by S.I. 1995/3213 (NI 22), art. 165, Sch. 4 para. 9; S.R. 1996/91, art. 2(c), Sch. Pt. III

F713Entries in the Table in s. 154A(1) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 136(2)

F714Words in the Table to s. 154A(1) substituted (1.6.1998) by 1998 c. 11, s. 23, Sch. 5 Pt. IV Chapter II para. 70(3); S.I. 1998/1120, art. 2

F716Entry in the Table to s. 154A(1) inserted (1.6.1998) by 1998 c. 11, s. 23, Sch. 5 Pt. IV Chapter II para. 70(3); S.I. 1998/1120, art. 2

F718Words in the Table in s. 154A(1) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 136(3)

F721Entries in the Table in s. 154A(1) inserted (1.12.2001) by S.I. 2001/3649, arts. 1, 136(4)

Modifications etc. (not altering text)

C116S. 154A amended (temp.) (3.9.2001) by S.I. 2001/2966, art. 11

Avoidance of certain transactions and provisionsN.I.

155 Inalienability of guaranteed minimum pension F729....N.I.

(1)Where—

(a)a person is entitled or prospectively entitled to a guaranteed minimum pension under an occupational pension scheme F730...; and

(b)his entitlement is in respect of his or another person’s service in employment which was contracted-out by reference to that scheme;

then—

(i)every assignment of or charge on that pension F731..., and

(ii)every agreement to assign or charge that pension F731...,

shall be void.

(2)In subsection (1), the references to assignments of and agreements to assign a guaranteed minimum pension do not include references to any assignment of or agreement to assign a policy of insurance or annuity contract in accordance with conditions prescribed by regulations under section 15(4)(b).

(3)Subsection (1) has effect whether or not the assignment, charge or agreement was made at a time when the employment was contracted-out employment or the scheme was a contracted-out scheme in relation to the employment.

F732(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F733[F734(4A)Where a person is entitled or prospectively entitled as is mentioned in subsection (1), no order shall be made by any court or the Enforcement of Judgments Office the effect of which would be that he would be restrained from receiving anything the assignment of which is or would be made void by that subsection.]

(4B)Subsection (4A) does not prevent the making of an attachment of earnings order under the Judgments Enforcement (Northern Ireland) Order 1981.]

F735(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F735S. 155(5) repealed (6.4.2002) by S.I. 1999/3147 (N.I. 11), art. 76, Sch. 10 Pt. I (with transitional provisions in art. 75(2)); S.R. 2002/25, art. 2(d)(i)

Modifications etc. (not altering text)

C118S. 155 excluded (1.12.1999 for certain purposes and 6.4.2002 otherwise) by S.I. 1989/19 (N.I.), art. 315C(2)(a) (as amended (1.12.1999 for certain purposes and 6.4.2002 otherwise) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 15 (with transitional provisions in art. 75(1))); S.R. 2002/25, art. 2(a)

C119S. 155 excluded (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), ss. 273(5)(a), 458(1); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

C120S. 155 excluded (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), ss. 277(8), 458(1); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

C122S. 155(4) excluded (1.8.1996) by S.I. 1995/3213 (N.I. 22), art. 162(5)(a); S.R. 1996/284, art. 3(b)

S. 155(4) excluded (1.12.1999 for certain purposes and otherwise 1.12.20000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 41(a); S.R. 2000/133, art. 2(3), Sch. Pt. IV

C123S. 155(4A) excluded (1.8.1996) by S.I. 1995/3213 (N.I. 22), art. 162(5)(a); S.R. 1996/284, art. 3(b)

S. 155(4A) excluded (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 41(a); S.R. 2000/133, art. 2(3), Sch. Pt. IV

[F736155A No forfeiture on bankruptcy of rights under personal pension schemes.N.I.

(1)A person’s rights under a personal pension scheme cannot be forfeited by reference to his bankruptcy.

(2)For the purposes of this section—

(a)a person shall be treated as having a right under a personal pension scheme where—

(i)he is entitled to a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (sharing of rights on divorce etc. [F737or on dissolution etc. of a civil partnership] ),

(ii)he is so entitled as against the person responsible for the scheme (within the meaning of Chapter I of Part V of that Order), and

(iii)the person so responsible has not discharged his liability in respect of the credit; and

(b)forfeiture shall be taken to include any manner of deprivation or suspension.]

Textual Amendments

F736S. 155A inserted (1.12.1999 for certain purposes and otherwiseprosp.) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 14(1) (with transitional provisions in art. 75(1))

156 Terms of contracts of service or schemes restricting choice to be void.N.I.

(1)Subject to such exceptions as may be prescribed—

(a)any term of a contract of service (whenever made) or any rule of a personal or occupational pension scheme to the effect that an employed earner must be a member—

(i)of a personal or occupational pension scheme,

(ii)of a particular personal occupational pension scheme, or

(iii)of one or other of a number of particular personal or occupational pension schemes,

shall be void; and

(b)any such term or rule to the effect that contributions shall be paid by or in respect of an employed earner—

(i)to a particular personal or occupational pension scheme of which the earner is not a member, or

(ii)to one or other of a number of personal or occupational pension schemes of none of which he is a member,

shall be unenforceable for so long as he is not a member of the scheme or any of the schemes.

(2)Subsection (1) shall not be construed so as to have the effect that an employer is required, when he would not otherwise be—

(a)to make contributions to a personal or occupational pension scheme; or

(b)to increase an employed earner’s pay in lieu of making contributions to a personal or occupational pension scheme.

157 Provisions excluding Chapter II of Part VII to be void.N.I.

Any provision in an agreement (whether a [F738worker's contract] or not) shall be void in so far as it purports—

(a)to exclude or limit the operation of any provision of Chapter II of Part VII; or

(b)to preclude any person from presenting a complaint to, or bringing any proceedings before, an industrial tribunal under that Chapter.

Textual Amendments

158 Removal of restrictions on friendly societies’ pension business.N.I.

(1)The Department may make such regulations as it thinks appropriate for enabling a registered society to conduct group insurance business with a view to the establishment of occupational pension schemes or personal pension schemes.

(2)The power to make regulations under this section shall extend to enabling registered societies to conduct such business as is mentioned in subsection (1) freed from any restrictions of the relevant legislation as to the amounts which a member, or a person claiming through a member, is entitled to receive from any one or more societies or branches.

(3)Regulations under this section may include such adaptations and modifications of the relevant legislation, and such other supplementary and incidental provisions, as the Department considers to be necessary or expedient for achieving the purposes referred to in subsection (1).

(4)In this section—

(a)“the relevant legislation” means the M32Friendly Societies Act 1974,

(b)“registered society” has the same meaning as in that Act, and

(c)“group insurance business” has the same meaning as in section 65A(2) of that Act.

Marginal Citations

159 Exemption of certain schemes from rule against perpetuities.N.I.

(1)The rules of law relating to perpetuities shall not apply to the trusts of, or any disposition made under or for the purposes of a personal or occupational pension scheme at any time when this section applies to it.

(2)This section applies to—

(a)a public service pension scheme;

(b)an occupational pension scheme which is a contracted-out scheme in relation to any employment;

F739(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)an occupational or personal pension scheme which satisfies prescribed requirements.

(3)Subsection (1) applies whether the trusts or dispositions in question are created or made before or after this section first applies to the scheme, but this section does not validate with retrospective effect any trusts or dispositions which the rules of law relating to perpetuities (including, where applicable, section 3(1) of the M33Perpetuities Act (Northern Ireland) 1966 (“wait and see”)) already require to be treated as void before this section applies to the scheme.

(4)Regulations under subsection (2)(d) may require a scheme—

(a)to contain provisions in any prescribed form, or to any prescribed effect; or

[F740(b)to be a registered pension scheme under section 153 of the Finance Act 2004 or to be a scheme that may be expected to satisfy the conditions for registration.]

F741(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Regulations may include provision by which a scheme (other than a public service pension scheme) to which this section ceases to apply may nevertheless be treated as continuing to be a scheme to which it applies for a period of two years from its ceasing to be such a scheme, or for such longer period as the [F742Department] [F743considers] to be reasonable in the case of a particular scheme.

(7)If this section ceases to apply to a scheme, trusts created and dispositions made under it or for its purposes shall then again be subject to the rules of law relating to perpetuities as if this section had never applied to it.

(8)Subsection (7) is without prejudice to any rights which vested while this section applied.

(9)Regulations may provide for a scheme, whose fund was registered under the M34Superannuation and other Trust Funds (Validation) Act (Northern Ireland) 1928 immediately before the repeal of that Act took effect, to retain the benefit of that Act, subject to prescribed conditions and either indefinitely or for a prescribed period.

Textual Amendments

F742Word in s. 159 substituted (6.4.1996 for certain purposes only otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 paras. 13, 14(a), Table; S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F743Word in s. 159(6) substituted (6.4.1996 for certain purposes only otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 paras. 13, 14(b), Table; S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192 art. 2(b)

Marginal Citations

Special classes of earnerN.I.

160 Crown employment.N.I.

(1)Subject to subsection (3), the following provisions shall apply to persons employed by or under the Crown in like manner as if such persons were employed by a private person—

(a)Chapter I of Part IV and the other provisions of this Act, so far as they relate to the preservation requirements;

(b)the remaining provisions of this Act, except for—

(i)sections F744. . . 149(2), 154(1) to (5), 158, 159 F745. . . and 171;

(ii)Chapter II of Part VII and sections 153 and 157;

(iii)section 162 and the provisions mentioned in subsection (2).

[F746(2)A person who is employed by or under the Crown shall be treated as an employed earner for the purposes of—

F747(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)sections 39 and 41;

(c)section 44, so far as it relates to minimum contributions;

(d)sections 113, 150 and 151, and

(e)sections 156 and 162.]

(3)So far as subsection (1) relates to the provisions within paragraph (b) of that subsection, it does not apply to a person who is serving as a member of Her Majesty’s forces.

(4)Subject to subsections (3) and (5), a person who is serving as a member of Her Majesty’s forces shall, while he is so serving, be treated for the purposes of the provisions within subsection (1)(b) and those within subsection (2) (except for sections 150 and 162) as an employed earner in respect of his membership of those forces.

(5)The Secretary of State may make regulations modifying sections 37, 38, 42(1), 43(2) and (5) and 44 in such manner as he thinks proper, in their application to persons who are or have been members of Her Majesty’s forces.

(6)For the purposes of this section Her Majesty’s forces shall be taken to consist of such establishments and organisations as may be prescribed by regulations made by the Secretary of State, being establishments and organisations in which persons serve under the control of the Defence Council.

Textual Amendments

F744Words in s. 160(1)(b)(i) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 165, 168, Sch. 4 para. 10, Sch. 5 Pt. IV; S.R. 1997/192, art. 2(b)

161 Application of certain provisions to cases with foreign element.N.I.

(1)Regulations may modify the provisions mentioned in subsection (2) in such manner as the Department [F748or, as the case may be, the Secretary of State] thinks proper, in their application to any person who is, or has been, or is to be—

(a)employed on board any ship, vessel, hovercraft or aircraft;

(b)outside Northern Ireland at any prescribed time or in any prescribed circumstances; or

(c)in prescribed employment in connection with continental shelf operations.

(2)The provisions referred to in subsection (1) are—

(a)[F749Part III], section 107 (and Part VIII and section 149 so far as they have effect for the purposes of section 107), sections 113, 150 and 151 F750... and sections 156 and 162; and

(b)sections 37 and 38, subsections (1), (6) and (7) of section 42 (and subsection (8) of that section so far as it has effect for the purposes of those subsections) and sections 43(2) and (5) and 44.

(3)Subject to subsection (4), regulations under subsection (1) may in particular provide—

(a)for any of those provisions to apply to any such person, notwithstanding that it would not otherwise apply;

(b)for any such provision not to apply to any such person, notwithstanding that it would otherwise apply;

(c)for excepting any such person from the application of any such provision where he neither is domiciled nor has a place of residence in any part of Northern Ireland;

(d)for the taking of evidence, for the purposes of the determination of any question arising under any such provision, in a country or territory outside Northern Ireland, by a British consular official or such other person as may be determined in accordance with regulations.

(4)Subsection (3)(b) does not apply as respects the application of the provisions mentioned in subsection (2)(b) and paragraphs (a), (c) and (d) of subsection (3) do not apply as respects the application of those provisions to such persons as are mentioned in subsection (1) (b) or (c).

(5)Without prejudice to the generality of section 149(2)(c), regulations may modify Chapter I of Part IV in relation to schemes with any overseas element, that is to say, schemes established, or relating to employment, or with parties domiciled, resident or carrying on business, in any part of the world outside the United Kingdom, or otherwise not confined in their operation to the United Kingdom.

[F751(6)Chapter 2 of Part 7 and section 153 do not apply to employment where under his worker’s contract the worker ordinarily works outside the [F752United Kingdom], but section 201 of the Employment Rights Act 1996 (power to extend employment protection legislation) applies to Chapter 2 of Part 7 and section 153 as it does to the provisions mentioned in that Act.]

(7)In this section—

  • “continental shelf operations” means any activities which, if paragraphs (a) and (d) of subsection (6) of section 23 of the M35Oil and Gas (Enterprise) Act 1982 (application of civil law to certain off-shore activities) were omitted, would nevertheless fall within subsection (2) of that section;

  • F753...

[F754“regulations” means regulations made by the Department or, as the case may be, the Secretary of State and “prescribed” shall be construed accordingly.]

Textual Amendments

F748Words in s. 161(1) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 72(2); S.R. 1999/149, art. 2(c), Sch. 2

F749Words in s. 161(2)(a) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 58; S.R. 1997/192, art. 2(b)

F754S. 161(7): Definition of “regulations” added (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 72(3); S.R. 1999/149, art. 2(c), Sch. 2

Marginal Citations

Reciprocity with other countriesN.I.

162 Reciprocity with other countries.N.I.

(1)For the purpose of giving effect—

(a)to any agreement with the government of a country outside the United Kingdom providing for reciprocity in matters relating to payments for purposes similar or comparable to the purposes of this Act, or

(b)to any such agreement as it would be if it were altered in accordance with proposals to alter it which, in consequence of any change in the law of Northern Ireland, the government of the United Kingdom has made to the other government in question,

the Secretary of State may by order make provision for modifying or adapting this Act in its application to cases affected by the agreement or proposed alterations.

(2)An order made by virtue of subsection (1) may, instead of or in addition to making specific modifications or adaptations, provide generally that this Act shall be modified to such extent as may be required to give effect to the provisions contained in the agreement or, as the case may be, alterations in question.

(3)The modifications of this Act which may be made by virtue of subsection (1) include provision—

(a)for securing that acts, omissions and events having any effect for the purposes of the law of the country in respect of which the agreement is made have a corresponding effect for the purposes of this Act (but not so as to confer a right to a double benefit);

(b)for determining in cases where rights accrue both under this Act and under the law of that country, which of those rights is to be available to the person concerned; and

(c)for making any necessary financial adjustments.

(4)An order made by virtue of subsection (1) which modifies or adapts any of the provisions referred to in section 160 may, in particular, provide for the Department to make payments for any period beginning on or after 6th April 1987 and may make provision with respect to any matters relating to payments so made.

(5)References in this section to this Act do not include references to Chapter I of Part IV, Chapter II of Part VII, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections F755. . . 149(2), 153, 154(1) to (5), 157, 158, 159 F756. . . and 171.

Textual Amendments

Application of provisions relating to social security administrationN.I.

163 Application of general provisions relating to administration of social security.N.I.

(1)The M36Social Security Administration (Northern Ireland) Act 1992 shall apply as if references to that Act in the provisions mentioned in subsection (2) included references to the provisions referred to in section 160(1)(b) of this Act (in this section referred to as “the relevant provisions”).

(2)The provisions referred to in subsection (1) are the following provisions of the Social Security Administration (Northern Ireland) Act 1992—

section 110 (legal proceedings)

section 118 (regulations as to notification of deaths)

F757. . .

section 156 (payment of travelling expenses by the Department).

[F758section 156A (payment of travelling expenses by Inland Revenue).]

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F759(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)Section 120 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (treatment of certain marriages) shall apply to the relevant provisions.

Textual Amendments

F757Words in s. 163(2) repealed (2.12.1999) by 1998 c. 47, s. 100(2), Sch. 15 (with s. 95); S.I. 1999/3209, art. 2, Sch.

F758Words in s. 163(2) inserted (1.4.1999) by S.I. 1999/671, arts. 1(3), 17, Sch. 6 para. 12(2); S.R. 1999/149, art. 2(c), Sch. 2 (with art. 14(1)(2)(b))

Marginal Citations

General provisions as to offencesN.I.

[F760164 Breach of regulations.N.I.

(1)Regulations under any provision of this Act (other than Chapter II of Part VII) may make such provision as is referred to in subsection (2) or (4) for the contravention of any provision contained in regulations made or having effect as if made under any provision of this Act.

(2)The regulations may provide for the contravention to be an offence under this Act and for the recovery on summary conviction of a fine not exceeding level 5 on the standard scale.

(3)An offence under any provision of the regulations may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under such a provision by reference to any period of time following the preceding conviction of the offence.

(4)The regulations may provide for a person who has contravened the provision [F761to be required by notice in writing] to pay to the Regulatory Authority, within a prescribed period, a penalty not exceeding an amount specified in the regulations; and the regulations must specify different amounts in the case of individuals from those specified in other cases and any amount so specified may not exceed the amount for the time being specified in the case of individuals or, as the case may be, others in Article 10(2)(a) of the Pensions (Northern Ireland) Order 1995.

(5)Regulations made by virtue of subsection (4) do not affect the amount of any penalty recoverable under that subsection by reason of an act or omission occurring before the regulations are made.

(6)Where—

(a)apart from this subsection, a penalty under subsection (4) is recoverable from a body corporate by reason of any act or omission of the body as a trustee of a trust scheme, and

(b)the act or omission was done with the consent or connivance of, or is attributable to any neglect on the part of, any persons mentioned in subsection (7),

such a penalty is recoverable from each of those persons who consented to or connived in the act or omission or to whose neglect the act or omission was attributable.

(7)The persons referred to in subsection (6)(b) are—

(a)any director, manager, secretary, or other similar officer of the body corporate, or a person purporting to act in any such capacity, and

(b)where the affairs of the body corporate are managed by its members, any member in connection with his functions of management.

(8)Where the Regulatory Authority require any person to pay a penalty by virtue of subsection (6), they may not also require the body corporate in question to pay a penalty in respect of the same act or omission.

(9)A penalty under subsection (4) is recoverable by the Authority and any such penalty recovered by the Authority must be paid to the Department.

(10)Where by reason of the contravention of any provision contained in regulations made, or having effect as if made, under this Act—

(a)a person is convicted of an offence under this Act, or

(b)a person pays a penalty under subsection (4),

then, in respect of that contravention, he shall not, in a case within paragraph (a), be liable to pay such a penalty or, in a case within paragraph (a), be liable to pay such a penalty or, in a case within paragraph (b), be convicted of such an offence.]

[F762(11)In this section “regulations” means regulations made by the Department or, as the case may be, the Secretary of State and “prescribed” shall be construed accordingly.]

Textual Amendments

F760Ss. 164, 164A substituted (6.4.1996 for certain purposes, 23.7.1996 for other certain purposes otherwise 6.4.1997) for s. 164 by S.I. 1995/3213 (N.I. 22), art. 151(1); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1996/307, art. 2(a), Sch. Pt. I; S.R. 1997/192, art. 2(b)

F762S. 164(11) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 73; S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C124S. 164 extended (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 42(2); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F764[F763164A] Offence in connection with the Registrar.N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F763Ss. 164, 164A substituted (6.4.1996 for certain purposes, 23.7.1996 for other certain purposes otherwise 6.4.1997) for s. 164 by S.I. 1995/3213 (N.I. 22), art. 151(1); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1996/307, art. 2(a), Sch. Pt. I; S.R. 1997/192, art. 2(b)

General provisions as to determinations and appealsN.I.

[F765165 Decisions and appeals.N.I.

(1)Article 4 (use of computers) of the Social Security (Northern Ireland) Order 1998 (“the 1998 Order”) applies as if, for the purposes of paragraph (1) of that Article, this Act were a relevant statutory provision.

[F766(2)It shall be for an officer of the Inland Revenue—

(a)to make any decision that falls to be made under or by virtue of Part III of this Act, other than a decision which under or by virtue of that Part falls to be made by the Department;

(b)to decide any issue arising in connection with payments under Article 9 of the Social Security (Northern Ireland) Order 1986 F767 (occupational pension schemes becoming contracted-out between 1986 and 1993); and

(c)to decide any issue arising by virtue of regulations made under paragraph 15 of Schedule 3 to the Social Security (Consequential Provisions) (Northern Ireland) Act 1992 F768 (continuing in force of certain enactments repealed by the Social Security Act 1973 F769).

(3)In the following provisions of this section a “relevant decision” means any decision which under subsection (2) falls to be made by an officer of the Inland Revenue, other than a decision under section 49 F770....

(4)Articles 10 and 11 of the 1998 Order (revision of decisions and decisions superseding earlier decisions) apply as if—

(a)any reference in those Articles to a decision of the Department under Article 9 of that Order included a reference to a relevant decision; and

(b)any other reference in those Articles to the Department were, in relation to a relevant decision, a reference to an officer of the Inland Revenue.

(5)Regulations may make provision—

[F771(a)generally with respect to the making of relevant decisions;

(b)with respect to the procedure to be adopted on any application made under Article 10 or 11 of the 1998 Order by virtue of subsection (4); and

(c)generally with respect to such applications, revisions under Article 10 and decisions under Article 11;]

but may not prevent [F772a revision under Article 10 or decision under Article 11] being made without such an application.

(6)Article 13 of the 1998 Order (appeal to appeal tribunal) applies as if, for the purposes of paragraph (1)(b) of that Article, a relevant decision were a decision of the Department falling within Schedule 3 to the 1998 Order.

(7)The following provisions (which relate to decisions and appeals)—

  • section 22 of, and Schedule 2 to, the Social Security Administration (Northern Ireland) Act 1992,

  • Articles 14 to 18 of the 1998 Order,

  • Articles 25 and 26 of that Order,

  • Article 28 of that Order,

  • Schedule 4 to that Order,

shall apply in relation to any appeal under Article 13 of the 1998 Order by virtue of subsection (6) as if any reference to the Department were a reference to an officer of the Inland Revenue.]]

Textual Amendments

F765S. 165 substituted (10.3.1999, 5.7.1999 for specified purposes) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 78(1), Sch. 6 para. 99; S.R. 1999/102, art. 2(a), Sch. Pt. I; S.R. 1999/310, art. 2(b)(iv), Sch. 1; S. 165(1)(c): words "Financial Services Compensation Scheme" substituted (3.7.2002) for "Policyholders Protection Act 1975" by Financial Services and Markets Act 2000 (Consequential Amendments) Order 2002 (S.I. 2002/1555), {art. 21}; and in s. 165(1)(c) (as it has effect without the substitution by S.I. 1998/1506 (N.I. 10)) words 'widow, widower or surviving civil partner' substituted for 'widow or widower' (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order (Northern Ireland) 2005 (S.R. 2005/433), art. 1(3), Sch. 1 para. 24(1) (with Sch. 1 para. 24(2); and in s. 165(7)(a) (as it has effect without the substitution by S.I. 1998/1506 (N.I. 10)) words “or appropriate scheme certificates" omitted (6.4.2012) by virtue of The Pensions (2008 No. 2 Act) (Abolition of Protected Rights) (Consequential Provisions) Order (Northern Ireland) 2012 (S.R. 2012/124), arts. 1(b), 4(22))

F766S. 165(2)-(7) substituted for s. 165(2)-(4) (15.6.1999 for certain purposes and otherwise 5.7.1999) by S.I. 1999/671, art. 15(2); S.R. 1999/271, art. 2, Sch. Pts. I, II

F771S. 165(5)(a)-(c) substituted for s. 165(a)(b) (11.11.1999) by 1999 c. 30, ss. 81, 89(4)(d), Sch. 11 para. 26(a)

F772Words in s. 165(5) substituted (11.11.1999) by 1999 c. 30, ss. 81, 89(4)(d), Sch. 11 para. 26(b)

Modifications etc. (not altering text)

C125S. 165(1) modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

S. 165(1): functions transferred (5.7.1999) by S.I. 1999/671, art. 15(1); S.R. 1999/271, art. 2(b), Sch. Pt. II

166 Questions arising in proceedings.N.I.

(1)Where in any proceedings—

(a)for an offence under this Act; F773...

F773(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F774any relevant decision as defined by section 165(3) is made by the Inland Revenue, the decision] shall be conclusive for the purpose of the proceedings.

[F775(2)If—

(a)any such decision is necessary for the determination of the proceedings, and

(b)the decision of the Inland Revenue has not been obtained or an application with respect to the decision has been made under Article 8 or 9 of the Social Security (Northern Ireland) Order 1998,

the decision shall be referred to the Inland Revenue to be made in accordance (subject to any necessary modifications) with Chapter II of Part II of that Order.

(3)Subsection (1) does not apply where, in relation to the decision—

(a)an appeal has been brought but not determined,

(b)an application for leave to appeal has been made but not determined,

(c)an appeal has not been brought (or, as the case may be, an application for leave to appeal has not been made) but the time for doing so has not yet expired, or

(d)an application has been made under Article 8 or 9 of that Order.

(4)In a case falling within subsection (3) the court shall adjourn the proceedings until such time as the final decision is known and that decision shall be conclusive for the purposes of the proceedings.]

Textual Amendments

F774Words in s. 166(1) substituted (5.7.1999) by S.I. 1999/671, art. 17, Sch. 6 para. 13(2); S.R. 1999/271, art. 2(b), Sch. Pt. II

F775S. 166(2)-(4) substituted for s. 166(2)(3) (5.7.1999) by S.I. 1999/671, art. 17, Sch. 6 para. 13(3); S.R. 1999/271, art. 2(b), Sch. Pt. II

Modifications etc. (not altering text)

C126S. 166(1) modified (28.3.1997) by S.R. 1997/192, art. 4(2) (with art. 9)

[F776166A Reports by Inland Revenue.N.I.

(1)The Inland Revenue shall prepare, either annually or at such times or intervals as may be prescribed, a report on the standards achieved by their officers in the making of decisions against which, by virtue of section 165(6), an appeal lies to an appeal tribunal constituted under Chapter I of Part II of the Social Security (Northern Ireland) Order 1998.

(2)Any report under this section—

(a)may be included in any annual report by the Inland Revenue of which a copy is laid before each House of Parliament, or

(b)may be annexed to any report of the Secretary of State under section 81 of the Social Security Act 1998 F777.

(3)A copy of every report under this section shall be laid before each House of Parliament unless the report is included in, or annexed to, a report of which a copy is so laid.]

Textual Amendments

F778167. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F778S. 167 repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 62, Sch. 5 Pt. III; S.R. 1997/192, art. 2(b); s. 167(1)(b) also expressed to be repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 168, Sch. 5 Pt. IV; S.R. 1997/192, art. 2(b)

F779168

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Financial provisionsN.I.

169 [F780Grants to advisory bodies etc.]N.I.

(1)The [F781Regulatory Authority] may make grants on such terms and conditions as they think fit to any person providing advice or assistance, or carrying out other prescribed functions, in connection with occupational or personal pensions.

(2)The Department may pay the [F781Regulatory Authority] such sums as the Department may think fit towards any expenditure of theirs in making grants under this section.

[F782(3)The Department may make grants on such terms and conditions as the Department thinks fit to any person or body of persons providing advice or assistance, or carrying out other prescribed functions, in connection with occupational or personal pensions.]

Textual Amendments

F781Words in s. 169 substituted (1.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 63; S.R. 1997/192, art. 2(a)

[F783170 Levies towards certain expenditure.N.I.

(1)For the purpose of meeting expenditure—

F784(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)under Part X and section 169, F785...

[F786(c)of the Regulatory Authority (including the establishment of the Authority under the Pensions Act 2004), F787...

(d)of the Lord Chancellor in meeting the costs of the legal assistance scheme established by virtue of section 106 of the Pensions Act 2004 (legal assistance in connection with proceedings before [F788a tribunal in relation to a decision of the Regulatory Authority ]),] [F789or

(e)under section 11 of the Financial Guidance and Claims Act 2018 (financial assistance from Secretary of State) relating to the [F790Money and Pensions Service’s] pensions guidance function (see section 3 of that Act),]

regulations may make provision for imposing levies in respect of prescribed occupational or prescribed personal pension schemes.

(2)Any levy imposed under subsection (1) is payable to the Department by or on behalf of—

(a)the administrators of any prescribed public service pension scheme,

(b)the trustees or managers of any other prescribed occupational or prescribed personal pension scheme, or

(c)any other prescribed person,

at prescribed rates and at prescribed times.

(3)Regulations made by virtue of subsection (1)—

(a)in determining the amount of any levy in respect of the Regulatory Authority, must take account (among other things) of F791...

[F791(i)any amounts paid to the Department under section 164(4) of this Act or Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties), and

(ii)any fees paid to the Regulatory Authority under paragraph 25 of Schedule 1 to the Pensions Act 2004 (fees for applications), and]

(b)in determining the amount of expenditure in respect of which any levy is to be imposed, may take one year with another and, accordingly, may have regard to expenditure estimated to be incurred in current or future periods and to actual expenditure incurred in previous periods (including periods ending before the coming into operation of this subsection).

F792(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F792(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F792(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F792(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F793(8)An amount payable by a person on account of a levy imposed under this section shall be a debt due from him to the Department, and an amount so payable shall be recoverable by the Department accordingly or, if the Department so determines, by the Regulatory Authority on its behalf.]

(9)Without prejudice to the generality of [F794subsection (1)], regulations under this section may include provision relating to—

(a)the collection and recovery of amounts payable by way of levy under this section, or

(b)the circumstances in which any such amount may be waived.]

Textual Amendments

F783S. 170 substituted (19.11.1996 for certain purposes otherwise 1.4.1997) by S.I. 1995/3213 (N.I. 22), art. 161; S.R. 1996/534, art. 2(a); S.R. 1997/192, art. 2(a)

F784S. 170(1)(a) repealed (25.2.2005 for specified purposes, 1.4.2005 for all other purposes) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 11; S.R. 2005/48, art. 2(3)(a), Sch. Pt. 3

F785Word in s. 170(1)(b) repealed (25.2.2005 for specified purposes, 1.4.2005 for all other purposes) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 1 para. 3(2), Sch. 11; S.R. 2005/48, art. 2(3)(a), Sch. Pt. 3

F786S. 170(1)(c)-(d) substituted for s. 170(1)(c) (25.2.2005 for specified purposes, 1.4.2005 for all other purposes) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 1 para. 3(2); S.R. 2005/48, art. 2(3)(a), Sch. Pt. 3

F787Word in s. 170(1)(c) omitted (10.5.2018) by virtue of Financial Guidance and Claims Act 2018 (c. 10), ss. 12(2)(a), 37(1)(b) (with s. 12(4))

F789S. 170(1)(e) and word inserted (10.5.2018) by Financial Guidance and Claims Act 2018 (c. 10), ss. 12(2)(b), 37(1)(b) (with s. 12(4))

F791Words in s. 170(3)(a) substituted (25.2.2005 for specified purposes, 1.4.2005 for all other purposes) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 1 para. 3(3); S.R. 2005/48, art. 2(3)(a), Sch. Pt. 3

F792S. 170(4)-(7) repealed (25.2.2005 for specified purposes, 1.4.2005 for all other purposes) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 11; S.R. 2005/48, art. 2(3)(a), Sch. Pt. 3

F793S. 170(8) substituted (25.2.2005 for specified purposes, 1.4.2005 for all other purposes) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 10 para. 23(a); S.R. 2005/48, art. 2(3)(a), Sch. Pt. 3 (with art. 6)

F794Words in s. 170(9) substituted (25.2.2005 for specified purposes, 1.4.2005 for all other purposes) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 10 para. 23(b); S.R. 2005/48, art. 2(3)(a), Sch. Pt. 3

Modifications etc. (not altering text)

C128S. 170(4)-(9) applied (with modifications) (1.12.1999 for certain purposes and otherwise 1.10.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 8(3), Sch. 1 para. 1(2)(a); S.R. 2000/133, art. 2(3)(c), Sch. Pt. III

171 Fees for official services to schemes.N.I.

Where at the request of the trustees or managers of an occupational pension scheme or a personal pension scheme or of any employer of earners who are members of such a scheme, official services are provided in connection with the operation or administration of the scheme [F795by the Department], the Department may require the payment of fees for the provision of those services.

Textual Amendments

F795Words in s. 171 substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 64; S.R. 1997/192, art. 2(b)

172 General financial arrangements.N.I.

(1)There shall be paid out of the National Insurance Fund—

[F796(za)payments by the [F797Inland Revenue] under section [F798(section 37(1D) or section 38A(2C) or (3)];]

(a)minimum contributions paid by the [F799Inland Revenue] under section 39;

(b)payments by [F800the Department] under section 120.

(2)Subject to subsection (3), there shall be paid out of the National Insurance Fund into the Consolidated Fund—

(a)sums equal to the amount of any expenses incurred by the Department (or by persons acting on its behalf) in exercising its functions under Chapter II of Part VII and section 153;

(b)such sums as the Department may estimate to be the amount of the administrative expenses of the Department or any government department in carrying into effect the remaining provisions of this Act, other than—

(i)Chapter I of Part IV and Part VIII so far as it applies for the purposes of that Chapter, sections F801. . . 149(2), 154(1) to (5), 158, 159 F802. . . and 171;

[F803(ii)sections 27, 29, 113, 150 and 151;]

[F803(iii)sections 156 and 162.]

(3)The sums payable under subsection (2)(b)—

(a)shall be estimated in accordance with any directions given by the Department of Finance and Personnel and (except in the case of functions relating to minimum contributions) shall exclude such categories of expenses as that Department may direct, or any enactment may require, to be so excluded; and

(b)shall be payable at such times and in such manner as the Department of Finance and Personnel may direct.

[F804(3A)There shall be paid out of the National Insurance Fund into the Consolidated Fund of the United Kingdom—

(a)such sums as the Inland Revenue may estimate to be the amount of their administrative expenses in exercising their functions under Part III; and

(b)such sums as the Secretary of State may estimate to be to the amount of his administrative expenses in exercising his functions under this Act.]

(4)Subject to subsection (5), there shall be paid into the Consolidated Fund any sum recovered by the Department under the provisions within subsection (2)(b)(ii).

(5)So far as any such sum relates to a payment out of the National Insurance Fund, it shall be paid into that Fund.

(6)There shall be paid into the Consolidated Fund of the United Kingdom—

[F805(a)subject to subsection (5), so far as it relates to payments out of money provided by Parliament, any sum recovered by the Inland Revenue under the provisions within subsection (2)(b)(ii); and

F806(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(7)There shall also be paid into the National Insurance Fund—

(a)sums recovered under section [F807section 37(1E), 38A(2D) or (5) or] 39(5) or (6);

F808(b). . .

(c)any sum recovered by the Department in exercising any right or pursuing any remedy which is the Department’s by virtue of section 123; and

(d)any sums received by [F809the Inland Revenue] by way of such payments as are mentioned in paragraph 5(4) of Schedule 1.

[F810(8)Subject to the foregoing provisions of this section, all expenses incurred by the Secretary of State or the Inland Revenue shall be paid out of money provided by Parliament, except so far as they may be required by any enactment to be paid or borne in any other way.]

Textual Amendments

F796S. 172(1)(za) inserted (25.2.1999) by 1999 c. 2, ss. 20(2)(a), 28(2)(d)

F797Words in s. 172(1)(za) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b)(3), 3(1), 19, Sch. 1 para. 74(2)(a); S.R. 1999/149, art. 2(c), Sch. 2

F798Words in s. 172(1)(za) substituted (22.12.1999 for certain purposes and otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 8(2); S.I. 1999/3420, art. 2

F799Words in s. 172(1)(a) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 74(2)(a); S.R. 1999/149, art. 2(c), Sch. 2

F800Words in s. 172(1)(b) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 74(2)(b); S.R. 1999/149, art. 2(c), Sch. 2

F801Words in s. 172(2)(b)(i) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 165, 168, Sch. 4 para. 12, Sch. 5 Pt. IV; S.R. 1997/192, art. 2(b)

F804S. 172(3A) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 74(3); S.R. 1999/149, art. 2(c), Sch. 2

F805S. 172(6)(a)(b) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 74(4); S.R. 1999/149, art. 2(c), Sch. 2

F807Words in s. 172(7)(a) substituted (22.12.1999 for certain purposes and otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 8(3); S.I. 1999/3420, art. 2

F809Words in s. 172(7)(d) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 74(5); S.R. 1999/149, art. 2(c), Sch. 2

F810S. 172(8) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by 1S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 74(6); S.R. 1999/149, art. 2(c), Sch. 2

Part XIIN.I. Supplementary Provisions

InterpretationN.I.

173 Managers of schemes.N.I.

The Department may by regulations [F811provide—

(a)who is to be treated as a manager of an occupational pension scheme for any o f the purposes of the provisions of this Act (except Chapter II of Part VII or section 153), the Social Security Acts (Northern Ireland) 1975 to 1991, F812. . . Part VI of the M37Social Security Administration (Northern Ireland) Act 1992 F813[F814. . .F815. . . [F816, Article 27D of the Matrimonial Causes (Northern Ireland) Order 1978 [F817Part IV or V of the Welfare Reform and Pensions (Northern Ireland) Order 1999 F818...]]]

[F819or

(b)who is be treated as a trustee of a scheme for the purposes of Chapter I of Part IV, Chapter I of Part IVA, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections 149(2), 154(1) to (5), 158, 159 and 171 [F820or articles 22 [F821to 26] of the Pensions (Northern Ireland) Order 1995.]]]

Textual Amendments

F811Words in s. 173 substituted (22.11.2000) for words and s. 173(a) by 2000 c. 4 (N.I.), s. 52, Sch. 5 Pt. I para. 7(a) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

F817Words in s. 173(a) substituted (12.2.2001 for specified purposes, otherwiseprosp.) by 2000 c. 4 (N.I.), s. 52, Sch. 5 Pt. I para. 15 (with s. 66(6)); S.R. 2000/374, art. 2(e) (art. 2(e)(ii) was omitted by virtue of S.R. 2001/141, art. 3)

F819S. 173(b) and word immediately preceding it inserted (22.11.2000) by 2000 c. 4 (N.I.), s. 52, Sch. 5 Pt. I para. 7(b) (with s. 66(6)); S.R. 2000/374, art. 2(a), Sch. Pt. I

Marginal Citations

174 Linked qualifying service.N.I.

(1)Subject to subsections (2) to (4), for the purposes of this Act any period of an earner’s service in an employment is linked qualifying service in relation to a later period of service (whether in the same or another employment) if—

(a)under [F822[F823Chapter 1 or 2 of Part 4ZA] or under the rules of a scheme] applying to him in the earlier period of service—

[F824(i)there was made a transfer of his rights (including any transfer credits allowed) under that scheme, or a transfer payment in respect of those rights, to, or to the trustees or managers of, another scheme applying to him in the later period of service;]

(ii)those rights were secured by a policy of insurance or an annuity contract and were subsequently transferred to another scheme applying to him in the later period of service; [F825or]

[F826(iii)a cash equivalent (within the meaning of [F827Chapter 1 of Part 4ZA]) or cash transfer sum (within the meaning of [F828Chapter 2] of that Part) was paid in respect of him to the trustees or managers of another scheme applying to him in the later period of service; and]

(b)in consequence of the transfer of his accrued rights to the second scheme, [F829or the payment to the trustees or managers of that scheme,] there are (or were) allowed to him transfer credits under the rules of that other scheme.

(2)For any service to be taken into account as linked qualifying service, it must be actual service and no regard shall be had to any scheme rule which provides for service to be treated for any purposes of benefit or otherwise as longer or shorter than it actually was.

(3)Only so much of the earlier period as is a period of service in respect of which there accrued under the first scheme any of the rights transferred to the second scheme shall be linked qualifying service in relation to the later period of service.

(4)For the purposes of Chapter I of Part IV, as respects any case where the rules of the scheme provide—

(a)that an earner is not entitled to become a member unless he satisfies specified conditions, but

(b)that, if he becomes a member, rights are to accrue to him in respect of periods of service before he satisfied any such conditions,

regulations may provide for any such periods to be treated, in such cases and to such extent as may be prescribed, as linked qualifying service with later periods of service.

Textual Amendments

F823Words in s. 174(1)(a) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 72(a) (with s. 87)

F827Words in s. 174(1)(a)(iii) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 72(b)(i) (with s. 87)

F828Words in s. 174(1)(a)(iii) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 72(b)(ii) (with s. 87)

Modifications etc. (not altering text)

175 Normal pension age.N.I.

(1)In this Act “normal pension age”, in relation to a scheme and a member’s pensionable service under it, means—

(a)in a case where the scheme provides for the member only a guaranteed minimum pension, the earliest age at which the member is entitled to receive the guaranteed minimum pension on retirement from any employment to which the scheme applies; and

(b)in any other case, the earliest age at which the member is entitled to receive benefits (other than a guaranteed minimum pension) on his retirement from such employment.

(2)For the purposes of subsection (1) any scheme rule making special provision as to early retirement on grounds of ill-health or otherwise is to be disregarded.

[F830175A Insurer and long-term insurance businessN.I.

(1)In this Act “insurer” means—

(a)a person who has permission under [F831Part 4A] of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, F832...

F832(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)In this Act “long term insurance business” means business which consists of the effecting or carrying out of contracts of long-term insurance.

(3)This section must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.]

Textual Amendments

F830S. 175A inserted (1.12.2001) by S.I. 2001/3649, arts. 1, 137(1)

176 General interpretation.N.I.

(1)In this Act—

  • F833...

  • F834...

  • “age”, in relation to any person, shall be construed so that—

    (a)

    he is over or under a particular age if he has or, as the case may be, has not attained that age;

    (b)

    he is between two particular ages if he has attained the first but not the second;

  • [F835“appropriate scheme” and “appropriate scheme certificate” are to be construed in accordance with [F836section 3B];]

  • “the Assembly” means the Northern Ireland Assembly;

  • F837...

  • “Category A retirement pension” and “Category B retirement pension” mean the retirement pensions of those descriptions payable under Part II of the M38Social Security Contributions and Benefits (Northern Ireland) Act 1992;

  • [F838“civil recovery order” means an order under section 266 of the Proceeds of Crime Act 2002 or an order under section 276 imposing the requirement mentioned in section 277(3).]

  • [F839“collective money purchase benefit” has the meaning given by section 52 of the Pension Schemes Act 2021;]

  • “contract of service” has the same meaning as in section 121(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

  • “contracted-out employment” shall be construed in accordance with section 4;

  • F840...

  • “contracting-out certificate” and references to a contracted-out scheme and to contracting-out shall be construed in accordance with [F841section 3B];

  • “contributions equivalent premium” [F842means a premium that was paid under] section [F84351(2)];

  • “the Department” means the Department of Health and Social Services for Northern Ireland;

  • “the Department of Finance and Personnel” means the Department of Finance and Personnel in Northern Ireland;

  • “earner” and “earnings” shall be construed in accordance with [F844section 4(1B) of this Act and] sections 3, 4 and 112 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

  • “earnings factors” shall be construed in accordance with sections 22 and 23 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

  • F845...

  • F845...

  • [F846“employed earner” and “self-employed earner” have the meanings given by section 2 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;]

  • “employee” means a person gainfully employed in Northern Ireland either under a contract of service or in an office (including an elective office) with [F847 earnings];

  • “employer” means—

    (a)

    in the case of an employed earner employed under a contract of service, his employer;

    (b)

    in the case of an employed earner employed in an office with emoluments—

    (i)

    such person as may be prescribed in relation to that office; or

    (ii)

    if no person is prescribed, the government department, public authority or body of persons responsible for paying the emoluments of the office;

  • “employment” includes any trade, business, profession, office or vocation and “employed” shall be construed accordingly except in the expression “employed earner”;

  • [F848“Financial Services Compensation Scheme” means the Financial Services Compensation Scheme referred to in section 213(2) of the Financial Services and Markets Act 2000;]

  • [F849“the first abolition date” has the meaning given by section 3A;]

  • F850...

  • F851...

  • “government department” includes a department of the government of the United Kingdom;

  • “guaranteed minimum pension” has the meaning given in section 4(2);

  • [F852“HMRC” means the Commissioners for Her Majesty's Revenue and Customs;]

  • “independent trade union” has the meaning given in Article 2(2) of the M39Industrial Relations (Northern Ireland) Order 1992;

  • “industrial tribunal” means a tribunal established or having effect as if established under [F853Article 3 of the Industrial Tribunals (Northern Ireland) Order 1996];

  • “the Inland Revenue” means the Commissioners of Inland Revenue;

  • F854...

  • F855...

  • “linked qualifying service” has the meaning given in section 174;

  • “long-term benefit” has the meaning given in section 20(2) of the M40Social Security Contributions and Benefits (Northern Ireland) Act 1992;

  • “lower earnings limit” and “upper earnings limit” shall be construed in accordance with section 5 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 and “current”, in relation to those limits, means for the time being in force;

  • “minimum contributions” shall be construed in accordance with sections 39 to 41;

  • “minimum payment” has the meaning given in section 4(2);

  • “modifications” includes additions, omissions and amendments;

  • “money purchase benefits”, in relation to a member of a personal or occupational pension scheme or the [F856widow, widower or surviving civil partner] of a member of such a scheme, [F857means benefits] [F857means—

    (a)

    benefits] the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and [F858which fall within section 176B] [F859, and

    (b)

    collective money purchase benefits;]

  • [F860“money purchase contracted-out scheme” is to be construed in accordance with [F861section 3B];]

  • [F862“money purchase scheme” means a pension scheme under which all the benefits that may be provided are money purchase benefits;]

  • “National Insurance Fund” means the Northern Ireland National Insurance Fund;

  • “normal pension age” has the meaning given in section 175;

  • “occupational pension scheme” has the meaning given in section 1;

  • [F863“overseas arrangement” means a scheme or arrangement which—

    (a)

    has effect, or is capable of having effect, so as to provide benefits on termination of employment or on death or retirement to or in respect of earners;

    (b)

    is administered wholly or primarily outside Northern Ireland;

    (c)

    is not an appropriate scheme; and

    (d)

    is not an occupational pension scheme;]

  • [F864“pension credit” means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under section 29(1)(b) of the Welfare Reform and Pensions Act 1999;]

  • [F865“pension debit” means a debit under Article 26(1)(a) of the Welfare Reform and Pensions (Northern Ireland) Order 1999;]

  • [F866“pensionable age”—

    (a)

    so far as any provisions (other than sections 42 to 44) relate to guaranteed minimum pensions, means the age of 65 in the case of a man and the age of 60 in the case of a woman, and

    (b)

    in any other case, has the meaning given by the rules in paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995;]

    (c)

    “pensionable service” has the meaning given in section 66(2);

  • F867...

  • F868...

  • “personal pension scheme” has the meaning given in section 1;

  • “prescribe” means prescribe by regulations;

  • F869...

  • “the preservation requirements” has the meaning given in section 65(2);

  • “primary Class 1 contributions” and “secondary Class 1 contributions” have the same meanings as in section 6 of the M41Social Security Contributions and Benefits (Northern Ireland) Act 1992;

  • [F870“the principal appointed day” means 6 April 1997 (which is the day designated as the principal appointed day for the purposes of Part 4 of the Pensions (Northern Ireland) Order 1995);]

  • “protected rights” has the meaning given in section 6 [F871, as it had effect immediately prior to the abolition date];

  • “public service pension scheme” has the meaning given in section 1;

  • F872...

  • F872...

  • “regulations” means regulations made by the Department under this Act;

  • “ the Regulatory Authority” [F873means the Pensions Regulator;

  • “resources”, in relation to an occupational pension scheme, means the funds out of which the benefits provided by the scheme are payable from time to time, including the proceeds of any policy of insurance taken out, or annuity contract entered into, for the purposes of the scheme;

  • “rights”, in relation to accrued rights (within the meaning of section 69 F874... or 174) or transfer credits, includes rights to benefit and also options to have benefits paid in a particular form or at a particular time;

  • F875...

  • F876...

  • [F849“salary related contracted-out scheme” is to be construed in accordance with section 3B;]

  • [F849“the second abolition date” has the meaning given by section 3A;]

  • “short service benefit” has the meaning given in section 67(2);

  • F877...

  • F878...

  • “tax week” means one of the successive periods in a tax year beginning with the first day of that year and every seventh day thereafter, the last day of a tax year (or, in a leap year, the last two days) being treated accordingly as a separate tax week;

  • “tax year” means the 12 months beginning with 6th April in any year;

  • “transfer credits” means rights allowed to an earner under the rules of an occupational pension scheme by reference to [F879—

    (a)

    a transfer to the scheme of, or transfer payment to the trustees or managers of the scheme in respect of, any of his rights (including transfer credits allowed) under another occupational pension scheme or a personal pension scheme, other than rights attributable (directly or indirectly) to a pension credit, or

    (b)

    a cash transfer sum paid under [F880Chapter 2 of Part 4ZA] in respect of him, to the trustees or managers of the scheme;]

  • [F881“the upper accrual point” has the meaning given by section 121 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;]

  • F882...

  • F872...

  • “week” means a period of seven days beginning with Sunday;

  • [F883“working life” , in relation to a person, means the period beginning with the tax year in which the person attains the age of 16 and ending with —

    (a)

    the tax year before the one in which the person attains the age of 65 in the case of a man or 60 in the case of a woman, or

    (b)

    if earlier, the tax year before the one in which the person dies.]

(2)References to employers in the provisions of this Act (other than sections 119 to 123, 153 [F884and 156] (“the excluded provisions”)) are to be treated, in relation to persons within the application of an occupational pension scheme and qualifying or prospectively qualifying for its benefits, as including references to persons who in relation to them and their employment are treated by regulations as being employers for the purposes of those provisions.

(3)Subject to any such regulations, references to an employer in any of the provisions of this Act (other than the excluded provisions or F885... Chapter I of Part IV, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections F886... 149(2), 154(1) to (5), 158, 159 F887... and 171) shall, in relation to an earner employed in an office with emoluments, be construed as references to—

(a)such person as may be prescribed in relation to that office; or

(b)if no person is prescribed, the government department, public authority or body of persons responsible for paying the emoluments of that office.

(4)Regulations may for any purpose of any provision of this Act (other than the excluded provisions or section F888... F889... F890... F891... 39, F892... 107, 156, 160 or 161) prescribe the persons who are to be regarded as members or prospective members of an occupational pension scheme and as to the times at which and the circumstances in which a person is to be treated as becoming, or as ceasing to be, a member or prospective member.

(5)In sections 161 and 162—

(a)references to the United Kingdom include references to the territorial waters of the United Kingdom; and

(b)references to Northern Ireland include references to the territorial waters of the United Kingdom adjacent to Northern Ireland.

(6)Any reference in section 180 or 181 to an order or regulations under this Act includes a reference to an order or regulations made under any provision of an enactment passed after this Act and directed to be construed as one with it; but this subsection applies only so far as a contrary intention is not expressed in the enactment so passed, and shall be without prejudice to the generality of any such direction.

(7)The M42Interpretation Act (Northern Ireland) 1954 shall apply to this Act—

(a)as it applies to a Measure of the Assembly;

(b)as if any reference in that Act to an enactment or an Act included a reference to this Act.

(8)For the purposes of Part III of the M43Northern Ireland Constitution Act 1973 (validity of Measures of the Assembly, including Orders in Council under the M44Northern Ireland Act 1974), provisions of this Act which re-enact provisions of such an Order are to be treated as provisions of such an Order.]

Textual Amendments

F833Definition of “accrued rights premium” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F834Words in s. 176(1) omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 42(3)

F837Definition of “the Board” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F838Words in s. 176(1) inserted (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 11 para. 23(6); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

F839Words in s. 176(1) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 4 para. 3(2); S.R. 2022/197, art. 3(a)

F840Definition of “contracted-out protected rights premium” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F843Words in the definition of “contributions equivalent premium” in s. 176(1) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 66(a)(ii); S.R. 1997/192, art. 2(b)

F846S. 176(1): Definition of “employed earner” substituted (1.12.1999 for certain purposes and otherwise 25.4.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 2(b) (with transitional provisions in art. 75(1)); S.R. 2000/133, art. 2(3), Sch. Pt. II

F848S. 176(1): Definition of "Financial Services Compensation Scheme" inserted (3.7.2002) by The Financial Services and Markets Act 2000 (Consequential Amendments) Order 2002 (S.I. 2002/1555) {art. 22}

F850Words in s. 176(1) repealed (with effect in accordance with Sch. 10 Pt. 6 Note 1(b) of the amending Act) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 10 Pt. 6 (with s. 73)

F851Definition of “equal access requirements” in s. 176(1) repealed (1.1.1996) by S.I. 1995/3213 (N.I. 22), arts. 119, 168, Sch. 1 para. 36(a)(i), Sch. 5 Pt. I (with art. 118(5)(6)); S.R. 1995/477, art. 2(b), Sch. Pt. II

F853Words in the definition of “industrial tribunal” in s. 176(1) substituted (24.9.1996) by S.I. 1996/1921 (N.I. 18), arts. 1(2), 26, Sch. 1 para. 10

F854S. 176(1): definition of “insurance company” repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 137(2)

F855Definition of “limited revaluation premium” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F857Words in s. 176(1) substituted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 4 para. 3(3)(a); S.R. 2022/197, art. 3(a)

F858Words in s. 176(1) substituted (retrospective to 1.1.1997) by Pensions Act (Northern Ireland) 2012 (c. 3 (N.I.)), ss. 27(1)(5), 34(3); S.R. 2014/203, art. 2

F859Words in s. 176(1) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 4 para. 3(3)(b); S.R. 2022/197, art. 3(a)

F862Definition of “money purchase scheme” in s. 176(1) substituted (19.12.1995) by S.I. 1995/3213 (N.I. 22), art. 165, Sch. 4 para. 13(a); S.R. 1995/477, art. 2(a), Sch. Pt. I

F863S. 176(1): Definition of “overseas arrangement” inserted (1.1.2001) by 2000 c. 4 (N.I.), s. 52, Sch. 5 Pt. I para. 2(3) (with s. 66(6)); S.R. 2000/374, art. 2(c), Sch. Pt. II

F864S. 176(1): Definition of “pension credit” inserted (1.12.2000) by S.I. 1999/3147 (N.I. 11), art. 74, Sch. 9 para. 30(a); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F865S. 176(1): Definition of “pension debit” inserted (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 29(5); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F866Definition of “pensionable age” in s. 176(1) substituted (16.12.1995) by S.I. 1995/3213 (N.I. 22), arts. 1(3)(a), 123, Sch. 2 Pt. III para. 13

F867Definition of “pensioner's rights premium” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F868Definition of “personal pension protected rights premium” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F869S. 176(1): Definition of “the prescribed equivalent” repealed (6.4.2000) by 1999 c. 30, s. 88, Sch.13 Pt. VII; S.I. 1999/3420, art. 4(c)(e)

F872Words in s. 176(1) repealed (6.4.2005 except for the definition of "voluntary contributions requirements", 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), art. 1(2), Sch. 11; S.R. 2005/166, art. 2(6), Sch. 1; S.R. 2006/95, art. 2(c), Sch. Pt. 3

F874Word in the definition of “rights” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 168, Sch. 5 Pt. IV; S.R. 1997/192, art. 2(b)

F876S. 176(1): Definition of “self-employed pension arrangement” ceased to have effect (1.12.1999 for certain purposes only) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 2(2)(c) (with transitional provisions in art. 75(1)) and repealed (25.4.2000) by S.I. 3147, art. 17, Sch. 10 Pt. I; S.R. 2000/133, art. 2(3), Sch. Pt. II

F877Definition of “state scheme premium” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F880Words in s. 176(1) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 73 (with s. 87)

F881Words in s. 176(1) inserted (11.2.2008) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 35

F882Definition of “transfer premium” in s. 176(1) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 66(a)(i), Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F884Words in s. 176(2) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 119, Sch. 1 para. 36(b) (with art. 118(5)(6)); S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C131S. 176(1) modified by S.I. 1995/3213 (N.I. 22), art. 67A(3) (as substituted (1.11.2005 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), arts. 1(2), 239 (with art. 285(5)); S.R. 2005/411, art. 2(5), Sch. Pt. 2)

C132S. 176(1) modified (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by S.I. 1995/3213 (N.I. 22), art. 67A(3B) (as inserted by Pension Schemes Act 2021 (c. 1), ss. 75(6), 131(2)(a)(3)(a); S.R. 2022/197, art. 3(a))

Marginal Citations

F893176AInterpretation of references to money purchase contracted-out schemes or appropriate schemes after abolition dateN.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F894176BMoney purchase benefits: supplementaryN.I.

(1)This section applies for the purposes of [F895the definition] [F895paragraph (a) of the definition] of “money purchase benefits” in section 176(1).

(2)A benefit other than a pension in payment falls within this section if its rate or amount is calculated solely by reference to assets which (because of the nature of the calculation) must necessarily suffice for the purpose of its provision to or in respect of the member.

(3)A benefit which is a pension in payment falls within this section if—

(a)its provision to or in respect of the member is secured by an annuity contract or insurance policy made or taken out with an insurer, and

(b)at all times before coming into payment the pension was a benefit falling within this section by virtue of subsection (2).

(4)For the purposes of subsection (2) it is immaterial if the calculation of the rate or amount of the benefit includes deductions for administrative expenses or commission.

(5)In this section references to a pension do not include income withdrawal or dependants’ income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004).]

Textual Amendments

F895Words in s. 176B(1) substituted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 4 para. 4; S.R. 2022/197, art. 3(a)

Subordinate legislation, etc.N.I.

177 Orders and regulations (general provisions).N.I.

(1)[F896Subject to subsection (7)] Any power under this Act to make regulations or orders (except a power of F897. . . the court to make orders F898. . .) and the powers to make rules under sections 145(2) and 148(1) shall be exercisable by statutory rule for the purposes of the M45Statutory Rules (Northern Ireland) Order 1979.

(2)Where a power conferred by this Act is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes.

(3)Any power to make regulations or an order for the purposes of any one provision of this Act shall be without prejudice to any power to make regulations or an order for the purposes of any other provision.

(4)Any power conferred by this Act to make regulations or an order shall include power to make such incidental, supplementary, consequential or transitional provision as appears to the authority making the regulations or order to be expedient for the purposes of the regulations or order.

(5)Subsection (4) has effect—

(a)in its application to regulations and orders made under the following provisions, namely Chapter I of Part IV, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections F899. . . 149(2), 154(1) to (5), 158, 159 F900. . . and 171, with the omission of the words “consequential or transitional”; and

(b)in its application to orders made under section 149(8), with the omission of the word “consequential”.

(6)Any power conferred on the Department by this Act to make any regulations or order (except an order under section 149(8)), where the power is not expressed to be exercisable with the consent of the Department of Finance and Personnel, shall if that Department so directs be exercisable only in conjunction with it.

(7)[F901Any power conferred on the Secretary of State to make regulations or orders (other than an order under section 162) is exercisable by statutory instrument, and subsections (2) to (4) and section 178(1) apply to regulations or orders made in exercise of any such power of the Secretary of State as they apply to regulations made by the Department.]

(8)[F902Any power] conferred on the Secretary of State F903. . . to make regulations [F904or orders] shall if the Treasury so direct be exercisable only in conjunction with them.

Textual Amendments

F896Words in s. 177(1) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 75(2); S.R. 1999/149, art. 2(c), Sch. 2

F898Words in s. 177(1) omitted (24.3.1999 for certain purposes and otherwise 1.4.1999) by virtue of S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 75(2); S.R. 1999/149, art. 2(c), Sch. 2 and repealed (1.4.1999) by S.I. 1999/671, arts. 1(3), 24(3), Sch. 9 Pt. I; S.R. 1999/149, art. 2(c), Sch. 2

F899Words in s. 177(5)(a) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 168, Sch. 5 Pt. IV; S.R. 1997/192, art. 2(b)

F901S. 177(7) substituted (retrospective to 1.4.1999) by 1999 c. 30, s. 81, Sch. 11 para. 27(1)(2)

F902Words in s. 177(8) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 75(4)(a); S.R. 1999/149, art. 2(c), Sch. 2

F903S. 177(8): Words omitted (24.3.1999 for certain purposes and otherwise 1.4.1999) by virtue of S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 75(4)(b); S.R. 1999/149, art. 2(c), Sch. 2 and words “under section 160” repealed (1.4.1999) by virtue of S.I. 1999/671, arts. 1(3), 24(3), Sch. 9 Pt. I; S.R. 1999/149, art. 2(c), Sch. 2

F904Words in s. 177(8) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 75(4)(c); S.R. 1999/149, art. 2(c), Sch. 2

Modifications etc. (not altering text)

C133S. 177(2)-(4)(6) extended (12.2.2001 for specified purposes, otherwiseprosp.) by 2000 c. 4 (N.I.), s. 52, Sch. 5 Pt. II para. 15 (with s. 66(6)); S.R. 2000/374, art. 2(e) (and art. 2(e)(ii) was omitted by S.R. 2001/141, art. 3)

Marginal Citations

178 Sub-delegation.N.I.

(1)Without prejudice to any specific provisions in this Act, a power conferred by this Act to make regulations or an order (other than regulations and orders made under Chapter I of Part IV, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections 132 to 134, 135(2) and (3), 136, 137, 138(1) to (4), 139, 149(2), 154(1) to (5), 158, 159 F905. . . and 171) includes power to provide for a person to exercise a discretion in dealing with any matter.

F906(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)Regulations under sections F907... 59(2) [F908and 93(1) [F909, 97AF(1)] and 97I] may provide that the values there mentioned shall be calculated and verified F910. . .—

(a)in such manner as may, in the particular case, be approved—

(i)by a prescribed person;

(ii)by a person with prescribed professional qualifications or experience; or

(iii)by a person approved by the Department; or

(b)in accordance with guidance prepared [F911and revised] by a prescribed body;

F912. . .

Textual Amendments

F908Words in s. 178(3) substituted (1.12.2000) by S.I. 1999/3147 (N.I. 11), art. 74, Sch. 9 para. 31; S.R. 2000/133, art. 2(3), Sch. Pt. IV

F909Word in s. 178(3) inserted (15.2.2006 for specified purposes, 6.4.2006 in so far as not already in force) by The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1), art. 1(2), Sch. 10 para. 27; S.R. 2005/543, art. 2(6), Sch. Pt. 6; S.R. 2006/45, art. 2(2)

F911Words in s. 178(3)(b) inserted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 165, Sch. 4 para. 14; S.R. 1997/192, art. 2(b)

F913179

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

180 Consultations about other regulations.N.I.

(1)The power of the Department to make regulations under section 158 shall be exercisable only after consultation with the [F914[F915appropriate regulator] or, if the matter concerns section 464 of the Income and Corporation Taxes Act 1988, the Commissioners of the Inland Revenue]

[F916(1A)“The appropriate regulator” means—

(a)where the group insurance business to which the regulations relate consists only of activities which are PRA-regulated activities, the Prudential Regulation Authority,

(b)where the group insurance business to which the regulations relate consists partly of activities which are PRA-regulated activities and partly of other regulated activities, the Prudential Regulation Authority and the Financial Conduct Authority, or

(c)in any other case, the Financial Conduct Authority.

(1B)In subsection (1A) “regulated activities” and “PRA-regulated activities” have the same meaning as in the Financial Services and Markets Act 2000.]

F917(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F914Words in s. 180(1) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 138

181 Assembly, etc. control of regulations and orders.N.I.

(1)The regulations and orders to which this subsection applies shall be laid before the Assembly after being made and shall take effect on such date as may be specified in the regulations or order, but shall (without prejudice to the validity of anything done thereunder or to the making of new regulations or a new order) cease to have effect upon the expiration of a period of six months from that date unless at some time before the expiration of that period the regulations have, or the order has, been approved by a resolution of the Assembly.

(2)Subsection (1) applies to regulations made by the Department under section [F91820B(5)][F919, 95(2)(c), 95A(2)(b)], 60(1) [F920or 164(2)] and to orders made by it under section 149(8) [F921 and to regulations made by the Department of Finance and Personnel under section 93A(10)] .

(3)Subsection (1) does not apply to—

(a)regulations under any provision mentioned in subsection (2) which are to be made for the purpose of consolidating regulations thereby revoked;

(b)regulations which, in so far as they are made under any provision mentioned in subsection (2), only replace provisions of previous regulations with new provisions to the same effect.

(4)Subject to subsection (6), all regulations and orders made by the Department under this Act (other than regulations or orders to which subsection (1) applies and orders made under section 186) [F922and regulations made by the Department of Finance and Personnel under section 91 or 93B shall] be subject to negative resolution.

(5)This subsection applies to any regulations or order made under this Act which—

(a)but for subsection (6), would be subject to negative resolution, and

(b)are or is contained in a statutory rule which includes any regulations or order subject to the confirmatory procedure.

(6)Any regulations or order to which subsection (5) applies shall not be subject to negative resolution, but shall be subject to the confirmatory procedure.

(7)Subject to subsection (9), regulations made under this Act by the Secretary of State shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(8)This subsection applies to any regulations made under this Act which—

(a)but for subsection (9), would be subject to annulment in pursuance of a resolution of either House of Parliament, and

(b)are contained in an instrument which is subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament.

(9)Any regulations to which subsection (8) applies shall not be subject as mentioned in subsection (8)(a), but shall be subject to the procedure described in subsection (8)(b).

[F923(9A)A statutory instrument containing provision under section 38, 38B or 41A shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House of Parliament.]

(10)In this section “the confirmatory procedure” means the procedure described in subsection (1).

Textual Amendments

F918Word in s. 181(2) inserted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(12), 21(1); S.R. 2009/75, art. 2(a)(b)

F919Words in s. 181(2) inserted (11.2.2021 for specified purposes) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 6 para. 4

F920Words in s. 181(2) inserted (23.7.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 151(2); S.R. 1996/307, art. 2(a), Sch. Pt. I; S.R. 1997/192, art. 2(b)

F921Words in s. 181(2) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 73(2)(a), 89(3)(b) (with s. 87)

F922Words in s. 181(4) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 73(2)(b), 89(3)(b) (with s. 87)

F923S. 181(9A) inserted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 76; S.R. 1999/149, art. 2(c), Sch. 2

Supplemental provisionsN.I.

182 Repeals.N.I.

(1)The enactments specified in Parts I and II of Schedule 4 are repealed to the extent specified in the third column.

(2)The subordinate legislation specified in Part III of that Schedule is revoked to the extent specified in the third column.

(3)The repeals and revocations have effect subject to any relevant savings in Schedule 5.

Commencement Information

I1S. 182 partly in force; s. 182 not in force at Royal Assent, see s. 186(2)(3); s. 182(1) in force for specified purposes at 7.2.1994 by S.R. 1994/17, art. 2

183 Transitional provisions and savings.N.I.

(1)Schedule 5 (which makes transitional provision and contains savings in connection with the repeals and revocations made by this Act) shall have effect.

(2)Nothing in that Schedule affects the operation of section 28 of the M46Interpretation Act (Northern Ireland) 1954 (general savings implied on repeal).

Marginal Citations

184 Prospective and c183.onsequential amendments.N.I.

Schedule 6 (which re-enacts or makes consequential amendments of provisions which make prospective amendments of enactments including those repealed by this Act, so that the re-enacted or amended provisions prospectively amend this Act and other enactments) and Schedule 7 (which makes other consequential amendments) shall have effect, subject to any relevant transitional provisions in Schedule 5.

Commencement Information

I2S. 184 partly in force; s. 184 not in force at Royal Assent, see s. 186(2); s. 184 in force for specified purposes at 7.2.1994 by S.R. 1994/17, art. 2

185 Transitory modifications.N.I.

Schedule 8 (which makes transitory modifications of this Act pending the commencement of the provisions there mentioned) shall have effect.

186 Short title, commencement and extent.N.I.

(1)This Act may be cited as the Pension Schemes (Northern Ireland) Act 1993.

(2)Subject to the provisions of Schedule 8, this Act shall come into operation on such day as the Department may by order appoint.

(3)As respects the coming into operation of—

(a)Part II of Schedule 4 and section 182(1) so far as it relates to it; or

(b)Schedule 6 and section 184 so far as it relates to it,

an order under subsection (2) may appoint different days from the day appointed for the other provisions of this Act or different days for different purposes.

(4)Subject to subsection (5), this Act extends to Northern Ireland only.

(5)The amendments in Schedule 7 of provisions of the M47Income and Corporation Taxes Act 1988 and the M48Finance Act 1989 have the same extent as the provisions amended.

Subordinate Legislation Made

P1S. 186(2)(3) power partly exercised: 7.2.1994 appointed for specified provisions by S.R. 1994/17, art. 2

Marginal Citations

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