PART 2Collective money purchase benefits: Northern Ireland

Members' rights

I1I276Transfer rights

1

Chapter 1 of Part 4ZA of the Pension Schemes (Northern Ireland) Act 1993 (transfer rights: general) is amended as follows.

2

In section 89 (scope of Chapter 1)—

a

in subsection (7) (crystallisation events), in paragraph (b), after “money purchase benefits” insert “ other than collective money purchase benefits ”;

b

after subsection (10) insert—

10A

Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated as a separate scheme for the purposes of this Chapter.

3

In section 93 (calculation of cash equivalents), after subsection (3) insert—

3ZA

Where, in the case of an application from a member under section 91 that relates to money purchase benefits that are collective money purchase benefits, regulations under section 95(2)(c) provide for a period longer than 6 months, subsection (3)(b) is to be read as if the reference to 6 months were a reference to that longer period.

4

In section 95 (trustees' duties after exercise of option), in subsection (2) (period in which to carry out what the member requires)—

a

omit the “and” at the end of paragraph (a);

b

in paragraph (b), after “money purchase benefits” insert “ other than collective money purchase benefits ”;

c

at the end of paragraph (b) insert

, and

c

in the case of an application which relates to money purchase benefits that are collective money purchase benefits, within 6 months beginning with the date of the application or such longer period beginning with that date as may be prescribed.

5

After section 95 insert—

95ATrustees' further duties: collective money purchase benefits

1

If the trustees receive an application under section 91 relating to money purchase benefits that are collective money purchase benefits—

a

they must give the member notice in writing of the cash equivalent that relates to those benefits, and

b

they must not without the written consent of the member enter into an agreement with a third party to use the member's cash equivalent in a way specified in section 91(2) before the end of the period mentioned in subsection (2).

2

The period referred to in subsection (1)(b) is—

a

the period of 3 weeks beginning with the day after the day on which the notice is given, or

b

such other period as may be specified in regulations.

3

Any action taken in contravention of subsection (1)(b) is void.

6

In section 96B (meaning of “scheme rules”: occupational pension schemes), in subsection (2)—

a

in paragraph (a), at the end insert—

xiii

regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021;

xiv

sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;

b

in paragraph (b), at the end insert—

x

sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.