Statutory Rules of Northern Ireland
Pensions
Made
14th March 2012
Coming into operation in accordance with regulation 1
Approved by resolution of the Assembly on
11th September 2012
The Department for Social Development makes the following Regulations in exercise of the powers conferred by section 13(5) and (6) of the Pensions Act (Northern Ireland) 2008 M1.
Marginal Citations
1. These Regulations may be cited as the Pensions (2008 Act) (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Provisions) Regulations (Northern Ireland) 2012 and shall come into operation—
(a)for the purposes of this Part and Part 2, on 6th April 2012;
(b)for the purposes of Part 3, on 6th April 2013, and
(c)for the purposes of Part 4, on 6th April 2015.
2.—(1) The Administration Act is amended in accordance with paragraphs (2) and (3).
(2) In section 132(3A) M2 (annual up-rating of benefits) after “Where a member of” insert “ a scheme which was at a time before the abolition date (as defined in section 176(1) M3 of the Pensions Act M4) ”.
(3) In section 167(1) (interpretation)—
(a)for the definition of “money purchase contracted-out scheme”M5 substitute—
““money purchase contracted-out scheme” is to be construed in accordance with section 176A M6 of the Pensions Act;”;
(b)in the definition of “personal pension scheme”M7 for “section 3” substitute “ section 176A(6) ”.
Marginal Citations
M2Section 132(3A) was inserted by paragraph 41(b) of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993 (c. 49)
M3The definition of “abolition date” is inserted by paragraph 34(2)(a) of Schedule 4 to the Pensions Act (Northern Ireland) 2008
M4The definition of “the Pensions Act” was inserted by paragraph 42(c) of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993
M5The definition of “money purchase contracted-out scheme” was inserted by paragraph 42(a) of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993
M6Section 176A is inserted by paragraph 35 of Schedule 4 to the Pensions Act (Northern Ireland) 2008
M7The definition of “personal pension scheme” was amended by paragraph 42(d) of Schedule 7 to the Pension Schemes (Northern Ireland) Act 1993
3.—(1) The Pensions (No. 2) Act (Northern Ireland) 2008 M8 is amended in accordance with paragraphs (2) and (3).
(2) In section 20 (quality requirement: UK money purchase schemes) omit subsection (2).
(3) In section 26 (quality requirement: UK personal pension schemes) omit subsection (8).
Marginal Citations
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
5. In regulation 11A(2) of the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991 M9 (further alternative to short service benefit – transfer to an overseas arrangement)—
(a)at the end of sub-paragraph (a) add “ and ”;
(b)omit sub-paragraph (b).
Marginal Citations
M9S.R. 1991 No. 37; regulation 11A was inserted by regulation 2(6) of S.R. 1996 No. 620
6.—(1) The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 M10 are amended in accordance with paragraphs (2) to (18).
(2) In regulation 1(2) (interpretation) in the definition of “overseas scheme”M11 omit “or (3)”.
(3) In regulation 3(2)(g)(i) M12 (notices by employers of intended election) omit “whether the employment would be contracted out by reference to a salary related or money purchase contracted-out scheme and”.
(4) In regulation 6 (information to be included in an election) omit paragraph (4).
(5) In regulation 9(3)(b) (making of elections by employers for the variation or surrender of contracting-out certificates) omit “in the case of a money purchase contracted-out scheme, the protected rights under, or in the case of any other scheme,”.
(6) In regulation 10(1)(a) (special provision with regard to elections for the issue, variation or surrender of certificates where the employment remains contracted out) omit “, or for protected rights, as the case may be,”.
F2(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) Omit regulation 30 (further contracting-out requirements for money purchase contracted-out schemes).
(9) In regulation 31(3)(a) M13 (deduction of minimum payments from earnings) after “section 38B of the Act” insert “ as it had effect immediately prior to the abolition date ”.
(10) In regulation 32(1) (minimum payments to be made by employers to trustees)—
(a)for “section 4(1) of the Act” substitute “ section 4(1A) M14 of the Act ”;
(b)for “employment is contracted out” substitute “ employment was contracted out ”.
(11) Omit regulation 39 M15 (circumstances in which schemes may change mode of contracting out).
(12) Omit regulation 40 M16 (schemes which may not be contracted out under section 5(3) of the Act).
F3(13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(15) In regulation 45(2) (approval of arrangements for schemes ceasing to be contracted out) omit “, section 24(2)(b) and (3) of the Act (transfer of protected rights)”.
F5(16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6(17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(18) In regulation 62(3) (fixed rate revaluation of guaranteed minimum pensions for early leavers)—
(a)omit “or section 24 (ways of giving effect to protected rights)”;
(b)for “those provisions” substitute “ that provision ”.
Textual Amendments
F2Reg. 6(7) revoked (6.4.2016) by The Occupational Pension Schemes (SchemesthatwereContracted-out) Regulations (NorthernIreland) 2016 (S.R. 2016/107), reg. 1(a), Sch. 2
F3Reg. 6(13) revoked (6.4.2016) by The Occupational Pension Schemes (SchemesthatwereContracted-out) Regulations (NorthernIreland) 2016 (S.R. 2016/107), reg. 1(a), Sch. 2
F4Reg. 6(14) revoked (6.4.2016) by The Occupational Pension Schemes (SchemesthatwereContracted-out) Regulations (NorthernIreland) 2016 (S.R. 2016/107), reg. 1(a), Sch. 2
F5Reg. 6(16) revoked (6.4.2016) by The Occupational Pension Schemes (SchemesthatwereContracted-out) Regulations (NorthernIreland) 2016 (S.R. 2016/107), reg. 1(a), Sch. 2
F6Reg. 6(17) revoked (6.4.2016) by The Occupational Pension Schemes (SchemesthatwereContracted-out) Regulations (NorthernIreland) 2016 (S.R. 2016/107), reg. 1(a), Sch. 2
Marginal Citations
M10S.R. 1996 No. 493; relevant amending provisions are S.R. 1997 Nos. 160 and 162, S.R. 1999 No. 486, S.R. 2001 No. 118, S.R. 2002 No. 109, S.R. 2005 No. 568, S.I. 2005/3377, S.I. 2006/744, S.R. 2007 Nos. 185 and 457, S.I. 2008/1903 and S.R. 2009 No. 113
M11The definition of “overseas scheme” was substituted by regulation 4(2) of S.R. 2007 No. 185 and amended by regulation 6(b) of S.R. 2007 No. 457
M12Regulation 3(2)(g) was amended by regulation 2(2)(b) of S.R. 2002 No. 109
M13Regulation 31(3) was amended by regulation 2(11)(b) of S.R. 2002 No. 109
M14Section 4(1A) is inserted by paragraph 3(3) of Schedule 4 to the Pensions Act (Northern Ireland) 2008
M15Regulation 39 was amended by regulation 3(2) of S.R. 1997 No. 162 and Article 3(4) of S.R. 2009 No. 113
M16Regulation 40 was amended by regulation 3 of S.R. 2001 No. 118 and Article 28(8) of S.I. 2006/744
7.—(1) The Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996 M17 are amended in accordance with paragraphs (2) to (4).
(2) In regulation 1(2) (interpretation)—
(a)omit the definitions of “appropriate personal pension scheme” and “money purchase contracted-out scheme”;
(b)in the definition of “overseas arrangement”—
(i)in paragraph (a) for “earners;” substitute “ earners, and ”;
(ii)omit paragraph (b).
(3) For regulation 5 (transfer payments in respect of guaranteed minimum pensions to money purchase contracted-out schemes and appropriate personal pension schemes) substitute—
5. A transfer payment in respect of a guaranteed minimum pension may be made to a scheme which is not a salary related contracted-out scheme, an overseas scheme M18 or an overseas arrangement if—
(a)the earner consents in writing;
(b)the transfer payment (whether or not it forms part of a larger payment in respect of both guaranteed minimum pensions and other rights) is of an amount at least equal to the cash equivalent of the earner's accrued rights to guaranteed minimum pensions, as calculated and verified in a manner consistent with regulations made under section 93 M19 (calculation of cash equivalents), and
(c)the earner has acknowledged in writing to the transferring scheme that the earner has received a statement from the receiving scheme showing the benefits to be awarded in respect of the transfer payment, and that the earner accepts that—
(i)the benefits to be provided by the receiving scheme may be in a different form and of a different amount to those which would have been payable by the transferring scheme, and
(ii)there is no statutory requirement on the receiving scheme to provide for survivors' benefits out of the transfer payment.”.
(4) For regulation 10 (transfer payments to money purchase contracted-out schemes and appropriate personal pension schemes in respect of section 5(2B) rights) substitute—
A transfer payment in respect of an earner's accrued section 5(2B) rights may be made to a scheme which is not a salary related contracted-out scheme, an overseas scheme or an overseas arrangement if—
(a)the earner consents in writing, and
(b)the earner has acknowledged in writing to the transferring scheme that the earner has received a statement from the receiving scheme showing the benefits to be awarded in respect of the transfer payment, and that the earner accepts that—
(i)the benefits to be provided by the receiving scheme may be in a different form and of a different amount to those which would have been payable by the transferring scheme, and
(ii)there is no statutory requirement on the receiving scheme to provide for survivors' benefits out of the transfer payment.”.
Marginal Citations
M17S.R. 1996 No. 618; relevant amending Regulations are S.R. 1997 No. 160, S.R. 1999 No. 486 and S.R. 2007 Nos. 185 and 457
M18The definition of “overseas scheme” was substituted by regulation 6 of S.R. 2007 No. 185 and amended by regulation 8(b) of S.R. 2007 No. 457
M19Section 93 was amended by paragraph 6 of Schedule 4 to the Pensions (Northern Ireland) Order 1995 and paragraph 5(1) of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4 (N.I.))
F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
9.—(1) The Personal Pension Schemes (Appropriate Schemes) Regulations (Northern Ireland) 1997 M20 are amended in accordance with paragraphs (2) and (3).
(2) In regulation 1(2) (interpretation) omit the definition of “administrators”.
(3) The following regulations are omitted—
(a)regulation 2 M21 (schemes which may be appropriate schemes);
(b)regulation 4 M22 (requirements in respect of an application for an appropriate scheme certificate);
(c)regulation 5 (issue of appropriate scheme certificates);
(d)regulation 6 M23 (requirement to furnish information);
(e)regulation 6A M24 (provision of information for purposes of contracting-out);
(f)regulation 7 (cancellation, variation and surrender of an appropriate scheme certificate);
(g)regulation 8 M25 (applications for the variation of, and to surrender, appropriate scheme certificates);
(h)regulation 9 (cancellation of an appropriate scheme certificate);
(i)regulation 10 (notice under section 40(1));
(j)regulation 11 (notice under section 40(2));
(k)regulation 14 (allocation of minimum contributions).
Marginal Citations
M20S.R. 1997 No. 139; relevant amending provisions are S.R. 2002 No. 109, S.R. 2005 No. 433, S.R. 2008 No. 364 and S.R. 2009 No. 113
M21Regulation 2 was substituted by regulation 3(3) of S.R. 2008 No. 364
M22Regulation 4 was amended by regulation 3(5) of S.R. 2008 No. 364
M23Regulation 6 was amended by regulation 3(6) of S.R. 2008 No. 364
M24Regulation 6A was inserted by regulation 7 of S.R. 2002 No. 109 and amended by paragraph 37 of Schedule 2 to S.R. 2005 No. 433
M25Regulation 8 was amended by Article 6(3) of S.R. 2009 No. 113
10. In regulation 2 of the Occupational and Personal Pension Schemes (Contracting-out etc: Review of Determinations) Regulations (Northern Ireland) 1997 M26 (application of regulations) omit “or appropriate scheme certificates”.
Marginal Citations
M26S.R. 1997 No. 140
11. In regulation 2(1)(b) of the Pension Sharing (Valuation) Regulations (Northern Ireland) 2000 M27 (rights under a pension arrangement which are not shareable)—
(a)in head (ii) for “annuity;” substitute “ annuity, or ”;
(b)omit head (iii).
Marginal Citations
M27S.R. 2000 No. 144; regulation 2(1) was amended by paragraph 3 of Schedule 1 to S.R. 2005 No. 536 and Article 36(3) of S.I. 2006/744
12. In regulation 1(2) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000 M28 (interpretation) omit the definitions of “appropriate scheme” and “money purchase contracted-out scheme”.
Marginal Citations
M28S.R. 2000 No. 146 to which there are amendments not relevant to these Regulations
13.—(1) The Stakeholder Pension Schemes Regulations (Northern Ireland) 2000 M29 are amended in accordance with paragraphs (2) to (4).
(2) In regulation 1(3) (interpretation) omit the definition of “contracted-out employment”M30.
(3) In regulation 18B(2)(b) M31 (disclosure of information to members)—
(a)in head (i) for “behalf;” substitute “ behalf, and ”;
(b)in head (ii) for “schemes), and” substitute “ schemes). ”;
(c)omit head (iii).
F8(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F8Reg. 13(4) revoked (6.4.2014) by The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014 (S.R. 2014/79), regs. 1(1), 32, Sch. 10
Marginal Citations
M29S.R. 2000 No. 262; relevant amending Regulations are S.R. 2002 No. 410 and S.R. 2010 No. 373
M30The definition of “contracted-out employment” was inserted by regulation 4(2)(a) of S.R. 2002 No. 410
M31Regulations 18 to 18E were substituted for regulation 18 by regulation 4(6) of S.R. 2010 No. 373
14. The following provisions are revoked—
(a)the Protected Rights (Transfer Payment) Regulations (Northern Ireland) 1996 M32;
(b)regulations 2, 4 to 6, 8, 10 to 15 and 17 of the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997 M33;
(c)the Occupational Pension Schemes (Age-related Payments) Regulations (Northern Ireland) 1997 M34.
Marginal Citations
M32S.R. 1996 No. 509 as amended by S.R. 1997 Nos. 95 and 160, S.R. 1999 No. 486, S.R. 2000 No. 262, S.R. 2002 No. 109, S.R. 2005 Nos. 85, 433 and 467, S.R. 2007 Nos. 185 and 457 and S.R. 2011 No. 89
M33S.R. 1997 No. 56; relevant amending provisions are S.R. 2002 No. 109, S.R. 2003 No. 256, S.R. 2005 Nos. 170, 433 and 507, S.I. 2006/744 and 745, S.R. 2007 No. 185, S.I. 2007/829, S.R. 2008 No. 370 and S.R. 2009 No. 365
M34S.R. 1997 No. 167 as amended by S.R. 1997 No. 544 and S.R. 2009 No. 115
F915. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F916. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F917. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
18.—(1) The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 M35 are amended in accordance with paragraphs (2) to (4).
(2) Omit regulation 31 M36 (deduction of minimum payments from earnings).
(3) Omit regulation 32 M37 (minimum payments to be made by employers to trustees).
(4) Omit regulation 33 (calculation of minimum payments).
Marginal Citations
M35S.R. 1996 No. 493; relevant amending provisions are S.R. 2002 No. 109, S.I. 2007/1154 and these Regulations
M36Regulation 31 was amended by regulation 2(11) of S.R. 2002 No. 109 and regulation 8(3) of S.I. 2007/1154 and is amended by regulation 6(9) of these Regulations
M37Regulation 32 was amended by regulation 8(4) of S.I. 2007/1154 and is amended by regulation 6(10) of these Regulations
F1019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
20.—(1) The Stakeholder Pension Schemes Regulations (Northern Ireland) 2000 M38 are amended in accordance with paragraphs (2) to (4).
(2) In regulation 1(3) (interpretation) omit the definitions of “minimum contributions” and “minimum payments”.
(3) In regulation 17(2) (restrictions on contributions) omit the words from “, minimum contributions” to the end.
[F11(4) In Schedule 3 (information for members)—
(a)in paragraph 1 omit sub-paragraph (d);
(b)in paragraph 2 omit sub-paragraphs (e), (f) and (g).]
Textual Amendments
F11Reg. 20(4) substituted (6.4.2014) by The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014 (S.R. 2014/79), reg. 1(1), Sch. 9 para. 16
Marginal Citations
M38S.R. 2000 No. 262; relevant amending Regulations are S.R. 2010 No. 373
Sealed with the Official Seal of the Department for Social Development on 14th March 2012
L.S.
Anne McCleary
A senior officer of the
Department for Social Development
(This note is not part of the Regulations)
These Regulations amend certain provisions in primary and subordinate legislation in consequence of section 13 of the Pensions Act (Northern Ireland) 2008 which abolishes contracting-out of the state additional pension for pension schemes on a defined contribution basis. Section 13(1) provides that contracting-out certificates in relation to money purchase contracted-out schemes and appropriate schemes (as defined by section 176(1) of the Pension Schemes Act (Northern Ireland) 1993 (c. 49)) cease to have effect from the abolition date (the date of the coming into operation of section 13(1)). Section 13(1) comes into operation on 6th April 2012 by virtue of the Pensions (2008 Act) (Commencement No. 3) Order (Northern Ireland) 2012 (S.R. 2012 No. 115(C. 11)).
The Regulations also provide for transitional provisions for the 3 years following abolition.
References to, and provisions which relate to, schemes which are contracted-out on a defined contribution basis are either omitted, or where appropriate, replaced with references to schemes which were contracted-out on that basis.
Regulations 4 and 8 provide for changes to the disclosure of information requirements that schemes must comply with in relation to their contracting-out status. The amendments made by those regulations provide that schemes must inform affected members that the scheme has ceased to be contracted-out and explain the effect of that change on members' entitlement to state additional pension from the abolition date, within one month and 4 months of the abolition date respectively, unless schemes have already provided such information in the 12 months preceding the abolition date. This requirement is for one year only and is subsequently omitted by regulations 15 and 16 from 6th April 2013.
Regulation 7 amends the Contracting-out (Transfer and Transfer Payments) Regulations (Northern Ireland) 1996 to provide that, from the abolition date, transfers will be able to be made from defined benefit contracted-out schemes to schemes which are not salary related (defined benefit) contracted-out schemes, overseas schemes or overseas arrangements, as long as certain safeguards are met.
A 3-year transitional period ending on 6th April 2015 is provided for in relation to statutory provisions which relate to the national insurance rebate due to schemes from Her Majesty's Revenue and Customs (“HMRC”) as a result of contracting-out in previous years. Regulations 17 to 20 amend or omit various provisions which relate to the making of minimum payments and contributions to schemes by employers and HMRC.
Regulation 14 makes consequential revocations.
As these Regulations make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement to consult under section 13(11) of the Pensions Act (Northern Ireland) 2008 does not apply by virtue of sub-section (12)(e) of that section.
An assessment of the cost to business of these Regulations is detailed in a Regulatory Impact Assessment, a copy of which has been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of that assessment are available from the Department for Social Development, Social Security Policy and Legislation Division, Level 1, James House, 2-4 Cromac Avenue, Gasworks Business Park, Ormeau Road, Belfast BT7 2JA or from the website: http://www.dsdni.gov.uk/index/ssa/ssani-publications/ssani-pensions-publications.htm. A copy of the Assessment is also annexed to the Explanatory Memorandum which is available alongside this Statutory Rule on the website: http://www.legislation.gov.uk/nisr.