Pension Schemes (Northern Ireland) Act 1993

1. Introductory Text

2. Part I Preliminary

   1. 1. Categories of pension schemes

3. Part II Administration

   1. Registration of schemes

      1. 2. Registration of occupational and personal pension schemes

4. Part III Certification of Pension Schemes and Effects on Members' State Scheme Rights and Duties

   1. Chapter I Certification

      1. Preliminary

         1. 3. Issue of contracting-out and appropriate scheme certificates

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

      2. General requirements for certification

         1. 5. Requirements for certification of schemes: general

         2. 6. Protected rights and money purchase benefits

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

         4. 8. Determination of basis on which scheme is contracted-out

      3. Requirements for certification of occupational pension schemes providing guaranteed minimum pensions

         1. 9. Minimum pensions for earners

         2. 10. Earner’s guaranteed minimum

         3. 11. Increase of guaranteed minimum where commencement of guaranteed minimum pension postponed

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

         5. 13. Minimum pensions for widows and widowers

         6. 14. Treatment of insignificant amounts

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

         8. 16. Transfer of accrued rights

         9. 17. Commutation, surrender and forfeiture

         10. 18. Financing of benefits

         11. 19. Securing of benefits

         12. 20. Sufficiency of resources

      4. Discretionary requirements

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

      5. Requirements for certification of occupational and personal money purchase schemes

         1. 22. Persons who may establish scheme

         2. 23. Identification and valuation of protected rights

         3. 24. Ways of giving effect to protected rights

         4. 25. The pension and annuity requirements

         5. 26. Securing of liability for protected rights

         6. 27. Investment and resources of schemes

         7. 28. Suspension or forfeiture

         8. 29. Tax requirements to prevail over certification requirements

      6. Cancellation, variation, surrender and refusal of certificates

         1. 30. Cancellation, variation, surrender and refusal of certificates

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

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

      7. Alteration of scheme rules after certification

         1. 33. Alteration of rules of contracted-out schemes

         2. 34. Alteration of rules of appropriate schemes

      8. General regulations as to administration of Part III

         1. 35. General power to make regulations

   2. Chapter II Reduction in State Scheme Contributions and Social Security Benefits for Members of Certified Schemes

      1. Preliminary

         1. 36. Scope of Chapter II

      2. Reduced rates of state scheme Class 1 contributions

         1. 37. Reduced rates of Class 1 contributions for earners in contracted-out employment

         2. 38. Alteration of rates of contributions under s. 37

      3. Minimum contributions: members of appropriate personal pension schemes

         1. 39. Payment of minimum contributions to personal pension schemes

         2. 40. Earner’s chosen scheme

         3. 41. Amount of minimum contributions

      4. Effect of entitlement to guaranteed minimum pensions on payment of social security benefits

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

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

         3. 44. Reduced benefits where minimum payments or minimum contributions paid

      5. Married women and widows

         1. 45. Married women and widows

   3. Chapter III Termination of Contracted-out or Appropriate Scheme Status: State Scheme Premiums

      1. Approval of arrangements for schemes ceasing to be certified

         1. 46. Powers of Board to approve arrangements for scheme ceasing to be certified

         2. 47. Calculation of guaranteed minimum pensions preserved under approved arrangements

      2. Supervision of formerly certified schemes

         1. 48. Supervision of schemes which have ceased to be certified

         2. 49. Supervision: former contracted-out schemes

         3. 50. Supervision: former appropriate personal pension schemes

      3. State scheme premiums

         1. 51. Payment of state scheme premiums on termination of certified status

         2. 52. Provisions supplementary to s. 51

         3. 53. Elections to pay contributions equivalent premiums

         4. 54. Amount of premiums payable under s. 51

         5. 55. Alternative basis for revaluation of earnings factors for calculation of certain premiums

         6. 56. Effect of payment of premiums on rights

         7. 57. Deduction of contributions equivalent premium from refund of scheme contributions

         8. 58. No recovery of state scheme premiums from earners, etc

         9. 59. Further provisions concerning calculations relating to premiums

         10. 60. Actuarial tables for purposes of calculations relating to premiums

         11. 61. Inclusion of former and future earners for some purposes of this Chapter

         12. 62. Power to apply certain provisions to widowers

         13. 63. Non-payment of state scheme premiums

         14. 64. Unpaid premiums: supplementary

5. Part IV Protection for Early Leavers

   1. I Preservation of Benefit Under Occupational Schemes

      1. 65. Scope of Chapter I: the preservation requirements

      2. 66. Interpretation (Part IV)

      3. 67. Basic principle as to short service benefit

      4. 68. No discrimination between short service and long service beneficiaries

      5. 69. Form of short service benefit and its alternatives

      6. 70. Computation of short service benefit

      7. 71. Credits

      8. 72. Pension increases

      9. 73. Assignment, surrender and commutation of benefit

      10. 74. Forfeiture, etc

      11. 75. Charges, liens and set-offs

      12. 76. Power to modify ss. 73 to 75 as respects alternative benefits

      13. 77. Discharge of liability where short service or alternative benefits secured by insurance policies or annuity contracts

      14. 78. Supplementary regulations

   2. Chapter II Revaluation of Accrued Benefits (Excluding Guaranteed Minimum Pensions)

      1. 79. Scope of Chapter II

      2. 80. Basis of revaluation

      3. 81. Revaluation not to apply to substituted benefit

      4. 82. Supplementary provisions

   3. Chapter III Protection of Increases in Guaranteed Minimum Pensions (“Anti-franking”)

      1. 83. General protection principle

      2. 84. The relevant sum

      3. 85. The appropriate addition

      4. 86. The later earnings addition

      5. 87. Special provision where employment continues after it ceases to be contracted-out by reference to scheme

      6. 88. Supplementary provisions

   4. IV Transfer Values

      1. 89. Scope of Chapter IV

      2. 90. Right to cash equivalent

      3. 91. Ways of taking right to cash equivalent

      4. 92. Further provisions concerning exercise of option under s. 91

      5. 93. Calculation of cash equivalents

      6. 94. Variation and loss of rights under s. 90

      7. 95. Trustees' duties after exercise of option

      8. 96. Withdrawal of applications

      9. 97. Supplementary provisions

6. Part V Annual Increases of Pensions in Payment

   1. I Pensions under Final Salary Schemes, etc.

      1. 98. Scope of Chapter I: annual increase of certain occupational pensions

      2. 99. Annual increase of later service component

      3. 100. Annual increase of earlier service component where scheme is in surplus

      4. 101. Proportional increase where first period is less than 12 months

      5. 102. Restriction on increase where member is under 55

      6. 103. Application of Chapter I to pensions not attributable to pensionable service

      7. 104. No payments to employers from non-complying schemes

   2. Chapter II Guaranteed Minimum Pensions

      1. 105. Annual increase of guaranteed minimum pensions

      2. 106. Requirement as to resources for annual increase of guaranteed minimum pensions

7. Part VI Further Requirements for Protection of Scheme Members

   1. 107. Voluntary contributions

   2. 108. Restrictions on investment of scheme’s resources in employer-related assets

   3. 109. Disclosure of information about schemes to members, etc

   4. 110. Additional documents for members, etc. and Registrar

   5. 111. Powers as respects failure to comply with information requirements

   6. 112. Regulations as to auditors

   7. 113. Regulations as to form and content of advertisements

   8. 114. Equal access requirements

8. Part VII Insolvency of Employers

   1. VII Independent Trustees

      1. 115. Requirement for independent trustee where employer becomes insolvent, etc

      2. 116. Members' powers to apply to court to enforce duty under s. 115

      3. 117. Further provisions as to appointment and powers of independent trustees

      4. 118. Duty of insolvency practitioner or official receiver to give information to scheme trustees

   2. Chapter II Payment by the Department of Unpaid Scheme Contributions

      1. 119. Interpretation of Chapter II

      2. 120. Duty of Department to pay unpaid contributions to schemes

      3. 121. Certification of amounts payable under s. 120 by insolvency officers

      4. 122. Complaint to industrial tribunal

      5. 123. Transfer to Department of rights and remedies

   3. III Priority in Bankruptcy

      1. 124. Priority in bankruptcy, etc

9. Part VIII Relationship Between Requirements and Scheme Rules

   1. 125. Overriding requirements

   2. 126. Extra-statutory benefits

   3. 127. Relationship of preservation requirements and scheme rules

   4. 128. Duty to bring schemes into conformity with indirectly-applying requirements

   5. 129. Advice of the Board as to conformity of schemes with requirements

   6. 130. Determination of questions whether schemes conform with requirements

   7. 131. Persons competent to make applications under s. 130

10. Part IX Modification and Winding Up of Schemes

    1. Modification

       1. 132. Applications to the Board to modify schemes (other than public service schemes)

       2. 133. Persons competent to make applications under s. 132

       3. 134. Further provisions concerning the Board’s powers under s. 132

       4. 135. Other functions of the Board as respects modification of schemes

       5. 136. Effect of orders under ss. 132 and 135

       6. 137. Modification of public service schemes

    2. Winding up

       1. 138. Powers of the Board to wind up schemes

       2. 139. Winding up of public service schemes

       3. 140. Deficiencies in the assets of a scheme on winding up

11. Part X Investigations: the Pensions Ombudsman

    1. 141. The Pensions Ombudsman

    2. 142. Functions of the Pensions Ombudsman

    3. 143. Death, insolvency or disability of authorised complainant

    4. 144. Staying court proceedings where a complaint is made or a dispute is referred

    5. 145. Procedure on an investigation

    6. 146. Investigations: further provisions

    7. 147. Determinations of the Pensions Ombudsman

    8. 148. Power to apply county court rules

12. Part XI General and Miscellaneous Provisions

    1. Modification powers

       1. 149. Power to modify certain provisions of this Act

       2. 150. Application of enactments as respects personal pension schemes

    2. Information about schemes

       1. 151. Requirement to give information to the Department or the Board for the purposes of certain provisions

       2. 152. Information as to guaranteed minimum pensions

       3. 153. Power of Department to obtain information in connection with applications under s. 120

       4. 154. Disclosure of information between government departments, etc

    3. Avoidance of certain transactions and provisions

       1. 155. Inalienability of guaranteed minimum pension and protected rights payments

       2. 156. Terms of contracts of service or schemes restricting choice to be void

       3. 157. Provisions excluding Chapter II of Part VII to be void

       4. 158. Removal of restrictions on friendly societies' pension business

       5. 159. Exemption of certain schemes from rule against perpetuities

    4. Special classes of earner

       1. 160. Crown employment

       2. 161. Application of certain provisions to cases with foreign element

    5. Reciprocity with other countries

       1. 162. Reciprocity with other countries

    6. Application of provisions relating to social security administration

       1. 163. Application of general provisions relating to administration of social security

    7. General provisions as to offences

       1. 164. Breach of regulations

    8. General provisions as to determinations and appeals

       1. 165. Determination of questions by Department

       2. 166. Questions arising in proceedings

       3. 167. Review of the Board’s determinations

       4. 168. References and appeals from the Board

    9. Financial provisions

       1. 169. Grants by the Board to advisory bodies, etc

       2. 170. Levies towards meeting certain costs and grants

       3. 171. Fees for official services to schemes

       4. 172. General financial arrangements

13. Part XII Supplementary Provisions

    1. Interpretation

       1. 173. Managers of schemes

       2. 174. Linked qualifying service

       3. 175. Normal pension age

       4. 176. General interpretation

    2. Subordinate legislation, etc.

       1. 177. Orders and regulations (general provisions)

       2. 178. Sub-delegation

       3. 179. Consultation with Social Security Advisory Committee

       4. 180. Consultations about other regulations

       5. 181. Assembly, etc. control of regulations and orders

    3. Supplemental provisions

       1. 182. Repeals

       2. 183. Transitional provisions and savings

       3. 184. Prospective and consequential amendments

       4. 185. Transitory modifications

       5. 186. Short title, commencement and extent

14. SCHEDULES

    1. SCHEDULE 1

       Certification Regulations

       1. Part I Occupational Pension Schemes

          1. General regulations: beginning and ending of employment

             1. 1. (1) In relation to employments which are or at any...

             2. 2. (1) Subject to sub-paragraph (2), regulations may enable the Board...

             3. 3. Provision may be made by regulations for requiring an employer...

          2. Power to modify Part III, etc.

             1. 4. (1) Regulations may modify the provisions of Part III (other...

          3. State scheme premiums

             1. 5. (1) Regulations may make provision for requiring persons to furnish...

          4. Schemes covering different employers

             1. 6. (1) Regulations may modify Chapters I and III of Part...

          5. Special provisions for certain public service pension schemes

             1. 7. (1) In relation to employments of any class to which...

          6. Incidental matters

             1. 8. Regulations may make provision— (a) for any incidental matters connected...

       2. Part II Personal Pension Schemes

          1. 9. (1) Subject to the following provisions, paragraph 5 applies in...

    2. SCHEDULE 2

       Methods of Revaluing Accrued Pension Benefits

       1. The final salary method

          1. 1. (1) The final salary method is to add to the...

       2. The revaluation percentage and the appropriate revaluation percentage

          1. 2. (1) Whenever the Secretary of State makes an order under...

       3. The average salary method

          1. 3. (1) The average salary method is to revalue the member’s...

       4. The flat rate method

          1. 4. The flat rate method is to revalue the benefits which...

       5. The money purchase method

          1. 5. (1) Subject to sub-paragraphs (2) and (3), the money purchase...

    3. SCHEDULE 3

       Priority in Bankruptcy, etc

       1. Earner’s contributions to occupational pension scheme

          1. 1. This Schedule applies to any sum owed on account of...

       2. Employer’s contributions to occupational pension scheme

          1. 2. (1) This Schedule applies to any sum owed on account...

       3. State scheme premiums

          1. 3. (1) This Schedule applies to any sum owed on account...

       4. Interpretation

          1. 4. (1) Article 205(3) of the Companies (Northern Ireland) Order 1986...

    4. SCHEDULE 4

       Repeals

       1. Part I General

       2. Part II Provisions Relating to Equal Access

       3. Part III Subordinate Legislation Revoked

    5. SCHEDULE 5

       Transitional Provisions and Savings

       1. Part I General Provisions

          1. 1. In this Schedule “the repealed enactments” means the enactments repealed...

          2. 2. (1) The substitution of this Act for the repealed enactments...

          3. 3. Where— (a) this Act repeals an enactment relating to the...

          4. 4. (1) The repeal or revocation by this Act of an...

          5. 5. The repeal or revocation by this Act of an enactment...

          6. 6. Any document made, served or issued after this Act comes...

       2. Part II Specific Provisions

          1. Contracting-out requirements for schemes providing guaranteed minimum pensions

             1. 7. An occupational pension scheme which— (a) at any time before...

             2. 8. Any document the contents of which are in terms corresponding...

             3. 9. The requirement of the Social Security Pensions (Northern Ireland) Order...

             4. 10. (1) Where in the tax year 1989-90 the trustees or...

          2. Overriding effect of certain requirements for existing contracted-out and appropriate schemes

             1. 11. (1) Subject to sub-paragraph (2), if immediately before paragraph 6...

             2. 12. If immediately before 14th August 1990— (a) there was in...

          3. Transactions discharging trustees

             1. 13. Without prejudice to section 28 of the Interpretation Act (Northern...

          4. Contributions equivalent premiums: earnings before 1987-88

             1. 14. (1) Where an earner’s earnings paid in any period before...

          5. Preservation

             1. 15. Without prejudice to paragraph 3, in any case where—

          6. Anti-franking

             1. 16. (1) If before 23rd August 1989 an earner ceased to...

          7. Modifications in consequence of making of Part II of the Social Security (Northern Ireland) Order 1986

             1. 17. (1) Regulations may provide that any provision of this Act...

          8. Savings for statutory rules

             1. 18. The repeal of Article 18A(2) of the Social Security (Northern...

          9. Provisions contained in Act by virtue of statutory rules

             1. 19. Without prejudice to any express provision in this Act, where...

          10. Saving for application of general provisions relating to social security

              1. 20. The repeals made by this Act do not affect the...

          11. Saving for Article 9 of the Social Security (Northern Ireland) Order 1986

              1. 21. The repeal by this Act of Article 9 of the...

    6. SCHEDULE 6

       Re-enactment or Amendment of Certain Provisions Not in Force

       1. The Equal Pay Act (Northern Ireland) 1970 (c. 32)

          1. 1. In section 6(1A)(a) of the Equal Pay Act (Northern Ireland)...

       2. The Social Security (Northern Ireland) Order 1989 (N.I. 13)

          1. 2. In Schedule 5 to the Social Security (Northern Ireland) Order...

       3. This Act

          1. 3. The following provisions of this Act shall cease to have...

    7. SCHEDULE 7

       Consequential Amendments

       1. The Judicial Pensions Act (Northern Ireland) 1951 (c. 20 (N.I.))

          1. 1. In section 11A(7) of the Judicial Pensions Act (Northern Ireland)...

          2. 2. In Schedule 2A to that Act— (a) in paragraph 1...

       2. The County Courts Act (Northern Ireland) 1959 (c. 25 (N.I.))

          1. 3. In section 127A(7) of the County Courts Act (Northern Ireland)...

          2. 4. In Schedule 2A to that Act— (a) in paragraph 1...

       3. The Resident Magistrates' Pensions Act (Northern Ireland) 1960 (c. 25 (N.I.))

          1. 5. In section 9A(7) of the Resident Magistrates' Pensions Act (Northern...

          2. 6. In Schedule 3 to that Act— (a) in paragraph 1...

       4. The Parliamentary Commissioner Act 1967 (c. 13)

          1. 7. In paragraph 10 of Schedule 1 to the Parliamentary Commissioner...

       5. The Parliamentary Commissioner Act (Northern Ireland) 1969 (c. 10 (N.I.))

          1. 8. In paragraph 10 of Schedule 1A to the Parliamentary Commissioner...

       6. The Commissioner for Complaints Act (Northern Ireland) 1969 (c. 25 (N.I.))

          1. 9. In paragraph 10 of Schedule 1A to the Commissioner for...

       7. The Equal Pay Act (Northern Ireland) 1970 (c. 32 (N.I.))

          1. 10. In section 6(1A)(a) of the Equal Pay Act (Northern Ireland)...

       8. The Social Services (Parity) Act (Northern Ireland) 1971 (c. 21 (N.I.))

          1. 11. In Schedule 1 to the Social Services (Parity) Act (Northern...

       9. The Pensions Increase Act (Northern Ireland) 1971 (c. 35 (N.I.))

          1. 12. In section 15(1) of the Pensions Increase Act (Northern Ireland)...

       10. The Superannuation Act 1972 (c. 11)

           1. 13. In section 13(15), in the definition of “judicial pension scheme”,...

       11. The Superannuation (Northern Ireland) Order 1972 (N.I. 10)

           1. 14. In Articles 3(8), 11(6) and 12(11) of the Superannuation (Northern...

       12. The Social Security Pensions (Northern Ireland) Order 1975 (N.I. 15)

           1. 15. (1) In Article 69 of the Social Security Pensions (Northern...

       13. The Births and Deaths Registration (Northern Ireland) Order 1976 (N.I. 14)

           1. 16. The following entry shall be inserted at the end of...

       14. The Judicial Pensions Act 1981 (c. 20)

           1. 17. In section 33A(9) of the Judicial Pensions Act 1981—

           2. 18. In Schedule 1A to that Act— (a) in paragraph 1...

       15. The Forfeiture (Northern Ireland) Order 1982 (N.I. 14)

           1. 19. In the definition of “relevant enactment” in Article 6(5) of...

       16. The Companies (Northern Ireland) Order 1986 (N.I. 6)

           1. 20. In Schedule 2 to the Companies (Northern Ireland) Order 1986—...

       17. The Audit (Northern Ireland) Order 1987 (N.I. 5)

           1. 21. In Article 4A(13) of the Audit (Northern Ireland) Order 1987,...

       18. The Income and Corporation Taxes Act 1988 (c. 1)

           1. 22. (1) In section 635(3)(b) of the Income and Corporation Taxes...

       19. The Official Secrets Act 1989 (c. 6)

           1. 23. In paragraph 4 of Schedule 1 to the Official Secrets...

       20. The Finance Act 1989 (c. 26)

           1. 24. In paragraph 11(2)(b) of Schedule 7 to the Finance Act...

       21. The Insolvency (Northern Ireland) Order 1989 (N.I. 19)

           1. 25. In paragraph 8 of Schedule 4 to the Insolvency (Northern...

       22. The Social Security Administration Act 1992 (c. 5)

           1. 26. In section 170(5) of the Social Security Administration Act 1992,...

       23. The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

           1. 27. In section 1(3) of the Social Security Contributions and Benefits...

           2. 28. In section 8(1) of that Act, for the words “Article...

           3. 29. In section 9(4) of that Act, for the words “Article...

           4. 30. In section 20(3) of that Act, for the words from...

           5. 31. In section 23(2) of that Act, after the word “Order”...

           6. 32. In section 34(5) of that Act, for the words “Article...

           7. 33. In section 47(3) of that Act, for the words “Article...

           8. 34. In section 50(2) of that Act, for the words “Article...

           9. 35. In section 174 of that Act, before the definition of...

           10. 36. In Schedule 5 to that Act— (a) in paragraph 2(6),...

           11. 37. In paragraph 3 of Schedule 7 to that Act—

       24. The Social Security Administration (Northern Ireland) Act 1992 (c. 8)

           1. 38. At the end of section 68(3) of the Social Security...

           2. 39. In section 104(8) of that Act, for paragraph (e) there...

           3. 40. In section 130 of that Act, for the words “Social...

           4. 41. In section 132 of that Act— (a) in subsection (3)(a),...

           5. 42. In section 167(1) of that Act— (a) the following definitions...

       25. The Judicial Pensions and Retirement Act 1993 (c. 8)

           1. 43. (1) In section 10(8) of the Judicial Pensions and Retirement...

       26. The Social Security (Northern Ireland) Order 1993 (N.I. 2)

           1. 44. In Article 4(1) of the Social Security (Northern Ireland) Order...

    8. SCHEDULE 8

       Transitory Modifications

       1. 1. (1) If— (a) no date has been appointed as the...

       2. Rule against perpetuities

          1. 2. Section 159(9) shall be omitted.

       3. Limited price indexation

          1. 3. (1) Sections 98 to 103 shall have effect only for...

       4. Guaranteed minimum for married women and widows paying reduced rate contributions

          1. 4. (1) In section 9(2)(a), the words from “and does” onwards...

       5. Courts and legal services

          1. 5. Section 107(3)(e) shall be omitted.

       6. Judicial pensions (Northern Ireland)

          1. 6. Section 107(3)(a) to (d) shall be omitted.

       7. Friendly societies

          1. 7. (1) In section 158(1), before the words “group insurance” there...

       8. Judicial pensions

          1. 8. (1) Section 107(3)(f) and the word “or” immediately preceding it...

       9. TABLE OF DERIVATIONS

          1. 1. Notes:

          2. 2. The following abbreviations are used in this Table:— Acts of...

          3. 3. The letter M followed by a number indicates that the...

          4. 4. The entry “drafting” indicates a provision of a mechanical or...

          5. 5. The Table does not show the effect of the saving...