Pension Schemes (Northern Ireland) Act 1993

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

(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) or (3).

[F1 (2) An occupational pension scheme satisfies this subsection only if—

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

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

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

(a) the scheme complies in all respects with [F2 sections 9 to 19] [F2 sections 9 to 20E] or, in such cases or classes of case as may be prescribed, with those sections as modified by regulations; and

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

(2B) The conditions of this subsection are that the [F3 Inland Revenue][F4 are satisfied] that—

(a) the scheme complies with section 8A;

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

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

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

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

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

and [F4 are 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.]

(3) An occupational pension scheme satisfies this subsection only if—

(a) the requirements imposed by or by virtue of sections F5 . . . 22 to 28 and such other requirements as may be prescribed are satisfied in its case;

[F6 (aa) the [F7 Inland Revenue are] satisfied that the scheme does not fall within a prescribed class or description;] and

(b) the rules of the scheme applying to protected rights are framed so as to comply with the relevant requirements.

(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 [F8 Inland Revenue may, if they think] fit, treat them for contracting-out purposes as a single scheme.

(5) A personal pension scheme can be an appropriate scheme only if—

(a) the requirements imposed by or by virtue of sections 22 to 28 and such other requirements as may be prescribed are satisfied in its case; and

(b) the rules of the scheme applying to protected rights are framed so as to comply with the relevant requirements.

(5A) Regulations about pension schemes made under this Chapter may contain provisions framed by reference to whether or not a scheme [F9 is 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 or, as the case may be, appropriate schemes; and

(b) such other requirements as to form and content (not inconsistent with regulations) as may be imposed by the [F10 Department] as a condition of contracting-out or, as the case may be, of being an appropriate scheme, either generally or in relation to a particular scheme.

Textual Amendments

F1 S. 5(2)-(2C) substituted (6.4.1996 for certain purposes otherwise 6.4.1997) for s. 5(2) by S.I. 1995/3213 (N.I. 22) art. 133(3); S.R. 1996/91, art. 2(d)(h), Sch. Pt. IV

F2 Words in s. 5(2A) substituted (3.3.2009 for specified purposes, 6.4.2009 in so far as not already in force) by Pensions Act (Northern Ireland) 2008 (c. 1), ss. 12(4), 21(1); S.R. 2009/75, art. 2(a)(b)

F3 Word in s. 5(2B) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 38(2)(a); S.R. 1999/149, art. 2(c), Sch. 2

F4 Words in s. 5(2B) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 38(2)(b); S.R. 1999/149, art. 2(c), Sch. 2

F5 Words in s. 5(3) repealed (6.4.1997) by S.I. 1995/3213 (N.I. 22), arts. 147, 168, Sch. 3 para. 17, Sch. 5 Pt. III; S.R. 1997/192, art. 2(b)

F6 S. 5(3)(aa) inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22) art. 133(4); S.R. 1996/91, art. 2(d)(h), Sch. Pt. IV

F7 Words in s. 5(3)(aa) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 38(3); S.R. 1999/149, art. 2(c), Sch. 2

F8 Words in s. 5(4) substituted (24.3.1999 for certain purposes and otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 38(4); S.R. 1999/149, art. 2(c), Sch. 2

F9 Words in s. 5(5A) substituted for s. 5(5A)(a)(b) (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 8(2)

F10 Words in s. 5(6)(b) substituted (6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 147, Sch. 3 paras. 13, 14 Table; S.R. 1997/192, art. 2(b)

Modifications etc. (not altering text)

C1 S. 5 excluded (1.6.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22) art. 146(1); S.R. 1996/91, art. 2(f); S.R. 1997/192, art. 2