C26C52 Part III Certification of Pension Schemes and Effects on Members’ State Scheme Rights and Duties
Pt. 3 modified (24.7.2014) by The Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 6(2)
Chapter I Certification
Preliminary
3 Issue of contracting-out F246... certificates.
F2471
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.
F2471A
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.
F12A
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.
F2504
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2505
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2506
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Except in prescribed circumstances, no contracting-out certificate F249... shall have effect from a date earlier than that on which the certificate is issued.
F2488
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.
4 Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”.
1
The employment of an earner in employed earner’s employment is “contracted-out employment” in relation to him during any period in which F252—
F252a
he is under pensionable age;
F252aa
his service in the employment is for the time being service which qualifies him for a pension provided by an occupational pension scheme contracted out by virtue of satisfying section 5(2) (in this Act referred to as “a salary related contracted-out scheme”);
b
there is in force a contracting-out certificate issued by the F2Inland Revenue in accordance with this Chapter stating that the employment is contracted-out employment by reference to the scheme.
F2511A
In addition, in relation to any period before the 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.
C12
In this Act—
“guaranteed minimum pension” means any pension which is provided by an occupational pension 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 F205widow's, widower’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 F230the applicable limit (or the prescribed equivalents if he is paid otherwise than weekly);
F3and for the purposes of this subsection “rebate percentage” means the appropriate flatrate percentage F253for the tax year in which the week falls as specified in an order made under section 38B (as it had effect before the abolition date) .
F2292A
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.
F3043
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Any contracting-out certificate for the time being in force in respect of an employed earner’s employment shall be conclusive that the employment is contracted-out employment.
F45
Regulations shall provide for the determination by the F5Department 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.
General requirements for certification
C25 Requirements for certification of schemes: general.
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) F254....
F62
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 F237sections 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
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 F8are 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.
F2553
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 F9Inland Revenue may, if they think fit, treat them for contracting-out purposes as a single scheme.
F2565
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5A
Regulations about pension schemes made under this Chapter may contain provisions framed by reference to whether or not a scheme F219is 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 F257... schemes; and
F2596 Protected rights and money purchase benefits.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Elections as to employments covered by contracting-out certificates.
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 F11Inland Revenue consider that an employer is contravening subsection (3) in relation to any scheme, F12they 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
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.
F2608 Determination of basis on which scheme is contracted-out.
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F20 Requirements for certification of occupational pension schemes applying from the principal appointed day
Ss. 8A-8D and cross-heading 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
F158A The statutory standard.
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 F206widows, 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 F207widows, 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 F228....
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.
F168B Reference scheme.
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 F208widows, widowers or surviving civil partners, a reference scheme is one which provides—
a
for the F208widows, 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
F17b
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 F226the applicable limit.
6
Regulations may modify subsections (2) to (5).
7
In this section—
F227“the applicable limit” means—
“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.
C39F188C Transfer, commutation, etc.
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.
F198D Entitlement to benefit.
In 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.
Requirements for certification of occupational pension schemes providing guaranteed minimum pensions
9 Minimum pensions for earners.
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.
F2381A
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 is a married woman or widow who is 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, 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 F21. . .
b
satisfy such other conditions as may be prescribed.
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.
C310 Earner’s guaranteed minimum.
C41
An earner has a guaranteed minimum in relation to the pension provided by a scheme if in any tax week in a relevant year, earnings in excess of the current lower earnings limit (or the prescribed equivalent if he is paid otherwise than weekly) have been paid to or for his benefit in respect of employment which is contracted-out by reference to the scheme.
C33C31C322
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 earnings such as are mentioned in subsection (1) upon which primary Class 1 contributions have been paid or treated as paid.
F1902A
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.
F223
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4
Where the amount of a person’s earnings for any period is relevant for any purpose of subsection (1) or (2) and the F23Inland Revenue are satisfied that records of those earnings have not been maintained or retained or are otherwise unobtainable, F24they may for that purpose—
a
b
take their amount to be such sum as F24they 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 F26or later than tax year ending immediately before the principal appointed day).
C5C3811 Increase of guaranteed minimum where commencement of guaranteed minimum pension postponed.
C6C27C28C29C34C36C37C43C47C48C49C50C51C591
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.
C56C54C57C53C55C5811AF27 Reduction of guaranteed minimum in consequence of pension debit.
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).
12 Revaluation of earnings factors for purposes of s. 10: early leavers, etc.
C7C81
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
The 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”).
C93
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 F28the 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.
C85
In this section—
13 Minimum pensions for widows and widowers.
1
Subject to the provisions of this Part, the scheme must provide that if the earner dies leaving a F193widow, widower or surviving civil partner (whether before or after attaining pensionable age), the F193widow, widower or surviving civil partner will be entitled to a guaranteed minimum pension under the scheme.
F2391A
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.
C102
The scheme must contain a rule to the effect that—
a
if the earner is a man 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.
F194c
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.
C10C423
The widow’s guaranteed minimum shall be half that of the earner.
C10C424
The widower’s F195or surviving civil partner'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.
F314A
F196Subject to subsection (4B) The scheme must provide for the F197widow's, widower’s or surviving civil partner's pension to be payable to the F198widow, widower or surviving civil partner —
a
for any period for which a Category B retirement pension is payable to the F198widow, 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);
b
for any period for which widowed parent’s allowance or bereavement allowance is payable to the F198widow, widower or surviving civil partner by virtue of the earner’s contributions; and
c
in the case of a F198widow, 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 F198widow, 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—
F199i
comprises a period during which the widow, widower or surviving civil partner and—
a
a person of the opposite sex are living together as husband and wife, or
b
a person of the same sex are living together as if they were civil partners, 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.
F2004B
Sub-paragraphs (i)(b) and (ii)(b) of subsection (4A)(c) do not apply where the earner dies before 5th December 2005.
5
6
7
F2188
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.
F2039
For the purposes of subsection (4A), two people of the same sex are to be regarded as living together as if they were civil partners if, but only if, they would be regarded as living together as husband and wife were they instead two people of the opposite sex.
C1114 Treatment of insignificant amounts.
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.
C4015 Discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts.
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 F37insurer with which it is or was taken out or entered into—
i
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 F209widow, widower or surviving civil partner; or
ii
with the consent of the earner or the F209widow, 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.
F397
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C4116 Transfer of accrued rights.
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 contracted-out scheme;
ii
an earner’s accrued rights to pensions under an occupational pension scheme which is not contracted-out, to the extent that those rights derive from his accrued rights to guaranteed minimum pensions under 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 F40, 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 F41, 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, F305... 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 F210widow, 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.
17 Commutation, surrender and forfeiture.
1
F192A 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 F204widow's, widower’s or surviving civil partner's guaranteed minimum pension to be suspended or forfeited in such circumstances as may be prescribed.
F4218. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19 Securing of benefits.
F431
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C122
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
d
state scheme premiums,
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.
C123
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 F211widow, widower or surviving civil partner or any dependant of the earner’s will be entitled on the earner’s death.
4
Subsections F44(2) and (3) do not apply to public service pension schemes.
F435
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
F4520
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20AF240Conversion of guaranteed minimum pension into other benefits: introduction
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.
20BThe conversion conditions
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.
20CActuarial equivalence
Regulations may make provision for determining actuarial equivalence for the purpose of Condition 1 of section 20B.
20DSurvivors' benefits
1
This section specifies the benefits mentioned in Condition 4 of section 20B.
2
The first benefit is that if 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 dies (whether before or after attaining normal pension age) leaving a widower 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.
20EProcedural requirements
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.
20FTransfer out
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 F306... 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.
20GPowers to amend schemes
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.
20HEnforcement of GMP conversion conditions
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.
Discretionary requirements
21 Power for Board to impose conditions as to investments and resources.
F461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F472
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 F48Inland 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 F49Inland Revenue.
3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Requirements for certification of occupational and personal money purchase schemes
F26122 Persons who may establish scheme.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26223 Identification and valuation of protected rights.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F24524 Ways of giving effect to protected rights.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F24524A Requirements for interim arrangements.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F24524B Information about interim arrangements.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F24525 The pension and annuity requirements.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26326 Securing of liability for protected rights.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F30727 Investment and resources of schemes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26428 Suspension or forfeiture.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26528A Discharge of protected rights on winding up: insurance policies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F30829 Tax requirements to prevail over F266requirements of section 27.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26729A Appropriate schemes: “Blowing the whistle”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation, variation, surrender and refusal of certificates
30 Cancellation, variation, surrender and refusal of certificates.
F2691
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 F50Inland Revenue to cancel or vary a contracting-out certificate where—
a
F51they 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 F270by 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 F271... 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 F272... certificate.
4
A contracting-out certificate in respect of any employment may be withheld or cancelled by the F50Inland Revenue if F52they 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 F53they would otherwise treat as proper to be contracted-out in relation to all earners in that employment.
F2735
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F546
Without prejudice to their powers apart from this subsection, the F50Inland 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.
F557
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 F50Inland 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 F274...shall have effect from a date earlier than that on which the cancellation, variation or surrender is made.
F2689
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.
31 Surrender and cancellation of contracting-out certificates: issue of further certificates.
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.
32 Surrender and cancellation of contracting-out certificates: cancellation of further certificates.
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.
Alteration of scheme rules after certification
33F56 Alteration of rules of contracted-out schemes.
F3161
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.
4
The reference in subsection (3) to a person entitled to receive benefits under a scheme includes a person so entitled by virtue of being the widower F212or surviving civil partner of an earner only in such cases as may be prescribed.
33AF315Transfer of liabilities etc.: schemes contracted-out on or after 6 April 1997
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.
F27534 Alteration of rules of appropriate schemes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General regulations as to administration of Part III
35 General power to make regulations.
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, F276... .
Chapter II Reduction in State Scheme Contributions and Social Security Benefits for Members of Certified Schemes
Preliminary
36 Scope of Chapter II.
This Chapter has effect for the purpose—
a
of reducing the rates at which certain national insurance contributions are payable by or in respect of earners whose employment is contracted-out by reference to contracted-out occupational pension schemes;
b
c
of making provision concerning the payment of certain social security benefits payable in respect of members and former members of such schemes.
F67 Reduced rates of contributions for members of salary related contracted-out schemes
S. 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)
37F59 Reduced rates of Class 1 contributions.
F601
Subsections (1A) to F61(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 F233the upper accrual point (or the prescribed equivalents if the earner is paid otherwise than weekly).
F2341ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F621A
The amount of any primary Class 1 contribution F63attributable 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 F2431.4 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 F2443.4 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 F64by 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).
38 Alteration of rates of contributions under s. 37.
F651
Whenever the Secretary of State makes an order under section 42 of the Pension Schemes Act 1993 (determination of reduced rates of Class 1 contributions for members of salary related contracted-out schemes), the F66order may also make corresponding provision for Northern Ireland.
2
An order under subsection (1) may contain consequential provisions altering any percentage for the time being specified in F303the definition of “the percentage for contributing earners” or “the percentage for non-contributing earners” in paragraph 2(5) of Schedule 3 as that percentage applies in relation to earnings paid or payable on or after the day as from which the order is to have effect.
F3023
Until paragraph 59(4) of Schedule 4 to the Pensions Act (Northern Ireland) 2008 comes into operation, subsection (2) has effect as if the reference to the definition of “the percentage for contributing earners” or “the percentage for non-contributing earners” were a reference to paragraph (a) of either of those definitions.
F79 Reduced rates of contributions, and rebates, for members of money purchase contracted-out schemes
S. 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)
38AF68 Reduced rates of Class 1 contributions and rebates.
F691
Subsections (2) to F70(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 F235the upper accrual point (or the prescribed equivalents if the earner is paid otherwise than weekly).
F712
The amount of any primary Class 1 contribution F72attributable 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
F278Subject to subsection (5A), The F73Inland Revenue shall, except in prescribed circumstances or in respect of prescribed periods, pay in respect of that earner and that tax week to the F309earner 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 F74made 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 F73Inland RevenueF75pay an amount under subsection (3) which F76theyF77are not required to pay or F77are not required to pay to the person to whom, or in respect of whom, the F73Inland RevenueF75pay it, the F73Inland Revenue may recover it from any person to whom, or in respect of whom, the F73Inland Revenue paid it.
F3105A
Where a payment under subsection (3) is due in respect of an earner, HMRC105 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.
F788
In subsections (3), (4) and (6) “prescribed” means prescribed by regulations made by the Secretary of State.
F2779
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 the 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).
F27938B Determination and alteration of rates of contributions, and rebates, applicable under section 38A.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum contributions: members of appropriate personal pension schemes
39 Payment of minimum contributions to personal pension schemes.
1
Subject to the following provisions of this Part, the F80Inland Revenue shall, except in such circumstances F81or 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 F82so 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 F311earner .
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 F80Inland RevenueF83are required to pay minimum contributions, the duty of the F80Inland Revenue to pay them shall cease as from a date determined in accordance with regulations F84made by the Secretary of State.
5
If the F80Inland RevenueF85pay an amount by way of minimum contributions which F86they are not required to pay, the F80Inland Revenue may recover it—
a
from the person to whom the F80Inland Revenue paid it, or
b
from any person in respect of whom the F80Inland Revenue paid it.
6
If the F80Inland RevenueF85pay in respect of an earner an amount by way of minimum contributions which the F80Inland RevenueF87are required to pay, but F88do not pay it to the trustees or managers of the earner’s chosen scheme, the may recover it from the person to whom the F80Inland Revenue paid it or from the earner.
F3126A
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.
F897
In this section “prescribed” means prescribed by regulations made by the Secretary of State.
F2808
In this section “the earner's chosen scheme” means the scheme which was immediately before the abolition date the earner's chosen scheme in accordance with section 40 (as it had effect prior to that date).
F28140 Earner’s chosen scheme.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41 Amount of minimum contributions.
F901
In relation to any tax week falling within a period for which the F91Inland 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 F236the upper accrual point (or the prescribed equivalents if he is paid otherwise than weekly).
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Regulations F92made 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;
F93d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 F94. . .
f
as to the manner in which and time at which or period within which minimum contributions are to be made.
F954
In subsection (3) “prescribed” means prescribed by regulations made by the Secretary of State.
F2825
For the purposes of this section “the appropriate age-related percentage”, in relation to a tax year beginning before the 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).
F28341A Alteration of rates of minimum contributions under section 41.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F31341BF96 Money purchase and personal pension schemes: verification of ages
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of entitlement to guaranteed minimum pensions on payment of social security benefits
42 Effect of entitlement to guaranteed minimum pensions on payment of social security benefits.
1
Where for any period a person is entitled both—
a
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—
F99i
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.
F1002
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1013
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—
F102i
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
to a Category A retirement pension under section 44 of that Act; or
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—
F105a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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).
F1069
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43 Further provisions concerning entitlement to guaranteed minimum pensions for the purposes of s. 42.
1
F107The 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 F213or surviving civil partner of an earner F187 in any case where he is entitled to a benefit other than a widowed parent's allowance . . . only if—
F188a
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 F189 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
C13b
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 F214widow, 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 F108Financial Services Compensation Scheme ,
are inadequate to provide the whole of the amount secured,
the member and the member’s F214widow, 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 F215widow'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).
F1096
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 F191 section 10(2A) and any reduction under section 11A.
F1107
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).
F2208
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.
F2419
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.
F11144 Reduced benefits where minimum payments or minimum contributions paid.
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;
F112b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
and where subsection (1)(b) applies, paragraphs (a) to (c) of this subsection apply also for the purposes of F114section47(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.
F119 Effect of reduced contributions and rebates on social security benefits
S. 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)
44AF115 Additional pension and other benefits.
1
In relation to any tax week there—
a
the amount of a Class 1 contribution F116attributable 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 is reduced under section 37 F284or, in the case of a week falling before the abolition date, under section 38A (as it then had effect) , or
b
F285in the case of a week falling before the abolition date, an amount is paid under section 41(1) (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 F117such 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) F118or (5A)of that Act.
F123Women, married women and widows
S. 45 substituted (16.12.1995) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 12
F12045 Women, married women and widows.
The Department F121or as the case may be, the Secretary of State may make regulations modifying, in such manner as it F122or hethinks proper—
a
this Chapter in its application to women born on or after 6th April 1950, and
b
sections 37, 38, 42(1), 43(2) and (5) and 44, in their application to women who are or have been married.
Chapter III Termination of Contracted-out or Appropriate Scheme Status: State Scheme Premiums
Approval of arrangements for schemes ceasing to be certified
C14C4446 Powers of Board to approve arrangements for scheme ceasing to be certified.
1
In the case of an occupational pension scheme F286... which is or has been certified as a F287salary related contracted-out scheme, the F124Inland 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—
F288a
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
F288b
of the liability for the payment of such pensions in respect of persons who have then become entitled to receive them.
F1251A
The power of the F124Inland 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.
F1251B
Arrangements may not be approved under this section unless any prescribed conditions are met
2
If the scheme ceases to be a F289salary related contracted-out scheme (whether by being wound up or otherwise) and the F124Inland Revenue either—
b
F126have declined to approve arrangements relating to it,
the F124Inland Revenue may issue a certificate to that effect.
3
4
Regulations may provide that where the F124Inland RevenueF129 have approved arrangements under subsection (1) in respect of an occupational pension scheme F290... any provision of this Part (other than sections 14, 15, F29127 and 29 and F29239 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 F293to which subsection (1) applies may be withdrawn at any time, notwithstanding that the scheme has been wound up.
F1307
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47 Calculation of guaranteed minimum pensions preserved under approved arrangements.
1
This section applies where—
a
an earner’s guaranteed minimum pension rights or accrued rights to guaranteed minimum pensions under a scheme F131satisfy prescribed conditions, and
b
one or more of the five tax years ending with the tax year in which the scheme ceases 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.
Supervision of formerly certified schemes
C4548 Supervision of schemes which have ceased to be certified.
1
2
This subsection applies as respects any F294salary related occupational pension scheme, other than a public service pension scheme, where—
F132a
the scheme has ceased to be a contracted-out scheme, and
b
any persons remain who fall within any of the following categories.
2A
Those categories are—
a
any persons entitled to receive, or having accrued rights to—
i
guaranteed minimum pensions, or
ii
pensions under the scheme attributable to service on or after the principal appointed day but before the scheme ceased to be contracted-out,
F298b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F242c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2953
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1334
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1335
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1336
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C4649 Supervision: former contracted-out schemes.
F1341
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.
F2211C
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).
F1372
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1363
If 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) F299... 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 F135Inland Revenue may allow.
F1374
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1375
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F30050 Supervision: former appropriate personal pension schemes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 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