Pension Schemes Act (Northern Ireland) 2016

24.—(1) Article 19 (freezing orders) is amended as follows.

(2) In paragraph (1), for “which is not a money purchase scheme” substitute “unless it is excluded by paragraph (1A)”.

(3) After that paragraph insert—

“(1A) A scheme is excluded if—

(a) all the benefits that may be provided under the scheme are money purchase benefits, and

(b) the scheme does not provide for there to be a third party promise about the rate or amount of any benefit at a time before the benefit comes into payment (see paragraph (10A)).”.

(4) In paragraph (2), for “such a scheme” substitute “a scheme to which this Article applies”.

(5) After paragraph (10) insert—

“(10A) For the purposes of paragraph (1A)(b), a scheme provides for there to be a third party promise if the scheme—

(a) requires the promise to be obtained from a third party, or

(b) provides for the member to be given the option of requiring a promise to be obtained from a third party (whether or not the option is subject to conditions).”.