Pension Schemes (Northern Ireland) Act 1993

Section 124.

SCHEDULE 3 N.I. Priority in Bankruptcy, etc

Earner’s contributions to occupational pension scheme N.I.

1 N.I. This Schedule applies to any sum owed on account of an earner’s contributions to an occupational pension scheme being contributions deducted from earnings paid in the period of four months immediately preceding the relevant date or otherwise due in respect of earnings paid or payable in that period.

Employer’s contributions to occupational pension scheme N.I.

2 [F1 (1) This Schedule applies to any sum owed on account of an employer’s contributions to a salary related contracted-out scheme which were payable in the period of 12 months immediately preceding the relevant date. N.I.

(1A) The amount of the debt having priority by virtue of sub-paragraph (1) shall be taken to be an amount equal to the appropriate amount.

(2) This Schedule applies to any sum owed on account of an employer’s minimum payments to a money purchase contracted-out scheme falling to be made in the period of 12 months immediately preceding the relevant date.

(3) In so far as payments cannot from the terms of the scheme be identified as falling within sub-paragraph (2), the amount of the debt having priority by virtue of that sub-paragraph shall be taken to be an amount equal to the appropriate amount.

(3A) In sub-paragraph (1A) or (3) “the appropriate amount” means the aggregate of—

(a) the percentage for non-contributing earners of the total reckonable earnings paid or payable, in the period of 12 months referred to in sub-paragraph (1) or (2) (as the case may be), to or for the benefit of non-contributing earners; and

(b) the percentage for contributing earners of the total reckonable earnings paid or payable, in that period, to or for the benefit of contributing earners.]

(4) For the purposes of [F2 sub-paragraph (3A)]—

(a) the earnings to be taken into account as reckonable earnings are those paid or payable to or for the benefit of earners in employment which is contracted-out by reference to the scheme in the whole or any part of the period of 12 months there mentioned; and

(b) earners are to be identified as contributing or non-contributing in relation to service of theirs in employment which is contracted-out by reference to the scheme according to whether or not in the period in question they were liable under the terms of the scheme to contribute in respect of that service towards the provision of pensions under the scheme.

(5) In this paragraph—

• [F3 “appropriate flat-rate percentage” means the appropriate flat rate percentage for the purposes of section 38A(2);]

• [F4 “the percentage for contributing earners”

  (a)

  in relation to a salary related contracted-out scheme, 3 per cent, and

  (b)

  in relation to a money purchase contracted-out scheme, the percentage which is the appropriate flat-rate percentage for secondary Class 1 contributions,

• “the percentage for non-contributing earners” means—

  (a)

  in relation to a salary related contracted-out scheme, 4.8 per cent, and

  (b)

  in relation to a money purchase contracted-out scheme, a percentage equal to the sum of the appropriate flat-rate percentages for primary and secondary Class 1 contributions;]

  • “employer” shall be construed in accordance with regulations made under section 176(2); and

  • “reckonable earnings”, in relation to any employment, means the earner’s earnings from that employment so far as those earnings—

    (a)

    were comprised in any payment of earnings made to him or for his benefit at a time when the employment was contracted-out employment; and

    (b)

    exceeded the current lower earnings limit but not [F5 the applicable limit].

[F6 (6) “The applicable limit” means—

(a) in relation to a payment made in a tax week falling in a tax year before the flat rate introduction year, the upper earnings limit for the week in question;

(b) in relation to a payment made in a tax week falling in the flat rate introduction year or any subsequent tax year, the upper accrual point divided by 52.]

Textual Amendments

F1 Sch. 3 para. 2(1)-(3A) substituted for Sch. 3 para. 2(1)-(3) (1.12.1999 for certain purposes and otherwise 25.4.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 6(2) (with transitional provisions in art. 75(1)); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F2 Words in Sch. 3 para. 2(4) substituted (1.12.1999 for certain purposes and otherwise 25.4.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 17, Sch. 2 para. 6(3) (with transitional provisions in art. 75(1)); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F3 Definition of “appropriate flat-rate percentage” in Sch. 3 para. 2(5) inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(6)(a); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F4 Definitions of “the percentage for contributing earners” and “the percentage for non-contributing earners” in Sch. 3 para. 2(5) inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 134(6)(b); S.R. 1996/91, art. 2(d), Sch. Pt. IV; S.R. 1997/192, art. 2(b)

F5 Words in Sch. 3 para. 2(5) substituted (11.2.2008) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 36(a)

F6 Sch. 3 para. 2(6) added (11.2.2008) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 36(b)

State scheme premiums N.I.

3 (1) This Schedule applies to any sum owed on account of a [F7 contributions equivalent] premium payable at any time before, or in consequence of a person going into liquidation or being adjudged bankrupt or (in the case of a company not in liquidation)— N.I.

(a) the appointment of a receiver as mentioned in Article 50 of the M1 Insolvency (Northern Ireland) Order 1989 (debenture-holders secured by floating charge), or

(b) the taking of possession by debenture-holders (so secured) as mentioned in [F8 section 754 of the Companies Act 2006].

(2) Where any such premium is payable in respect of a period of service of more than 12 months (taking into account any previous linked qualifying service), the amount to be paid in priority by virtue of this paragraph shall be limited to the amount of the premium that would have been payable if the service had been confined to the last 12 months taken into account in fixing the actual amount of the premium.

(3) Where—

(a) by virtue of this paragraph the whole or part of a premium is required to be paid in priority to other debts of the debtor or his estate; and

(b) the person liable for the payment would be entitled to recover the whole or part of any sum paid on account of it from another person either under section 57 or under any provision made by the relevant scheme for the purposes of that section or otherwise,

then, subject to sub-paragraph (4), that other person shall be liable for any part of the premium for the time being unpaid.

(4) No person shall be liable by virtue of sub-paragraph (3) for an amount in excess of the sum which might be so recovered from him if the premium had been paid in full by the person liable for it, after deducting from that sum any amount which has been or may be recovered from him in respect of any part of that payment paid otherwise than under that sub-paragraph.

(5) The payment under sub-paragraph (3) of any amount in respect of a premium shall have the same effect on the rights and liabilities of the person making it (other than his liabilities under that sub-paragraph) as if it had been a payment of that amount on account of the sum recoverable from him in respect of a premium as mentioned in sub-paragraph (3)(b).

Textual Amendments

F7 Words in Sch. 3 para. 3(1) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 71(a); S.R. 1997/192, art. 2(b)

F8 Words in Sch. 3 para. 3(1)(b) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 195(3) (with arts. 6, 11, 12)

Marginal Citations

M1 S.I. 1989/2405 (N.I. 19).

Interpretation N.I.

4 (1) Article 205(3) of the Companies (Northern Ireland) Order 1986 and Article 347 of the Insolvency (Northern Ireland) Order 1989 apply as regards the meaning of the expression “the relevant date” in this Schedule. N.I.

(2) In this Schedule references to a contracted-out scheme, [F9 and contracted-out employment] include references to a contracted-out scheme, [F10 and contracted-out employment] within the meaning of any provisions in force in Great Britain and corresponding to the provisions of this Act.

Textual Amendments

F9 It is provided that for the words “contracting - out employment and a state scheme premium” (where first occuring) there is substituted (6.4.1997) the words “and contracted - out employment” in Sch. 3 para. 4(2) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 71(b); S.R. 1997/192, art. 2(b)

F10 Words in Sch. 3 para. 4(2) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 para. 71(b); S.R. 1997/192, art. 2(b)