Part IIIN.I. Certification of Pension Schemes and Effects on Members’ State Scheme Rights and Duties

Modifications etc. (not altering text)

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

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

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

(1)F1The 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 [F2or surviving civil partner] of an earner [F3 in any case where he is entitled to a benefit other than a widowed parent's allowance ] . . . only if—

[F4(a)he is also entitled to a Category B retirement pension by virtue of the earner's contributions (or would be so entitled but for section 43(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992); or]

(b)he is also entitled to a Category A retirement pension by virtue of [F5 section 41(5) of that Act ] .

(2)For the purposes of section 42 a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled—

(a)if its commencement had not been postponed, as mentioned in section 9(4); or

(b)if there had not been made a transfer payment or transfer under regulations made by virtue of section 16 as a result of which—

(i)he is no longer entitled to guaranteed minimum pensions under the scheme by which the transfer payment or transfer was made, and

(ii)he has not become entitled to guaranteed minimum pensions under the scheme to which the transfer payment or transfer was made.

(3)Where—

(a)guaranteed minimum pensions provided for a member or the member’s [F6widow, 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 [F7Financial Services Compensation Scheme] ,

are inadequate to provide the whole of the amount secured,

the member and the member’s [F6widow, 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 [F8widow'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).

[F9(6)For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for [F10 section 10(2A) and ] any reduction under section 11A.]

[F11(7)For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for any order under Article 315A of the Insolvency (Northern Ireland) Order 1989 (recovery of excessive pension contributions).]

Textual Amendments

F9S. 43(6) added (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 29(4); S.R. 2000/133, art. 2(3), Sch. Pt. IV

F10Words in s. 43(6) inserted (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 11 para. 23(4); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

F11S. 43(7) added (1.12.1999 for certain purposes and 6.4.2002 otherwise) by S.I. 1999/3147 (N.I. 11), art. 17, Sch. 2 para. 5 (with transitional provisions in art. 75(1)); S.R. 2002/25, art. 2(b)

Modifications etc. (not altering text)

C2S. 43(2) modified (6.4.1997) by S.R. 1996/509, reg. 6(3)