Search Legislation

Pension Schemes Act (Northern Ireland) 2016

Status:

This is the original version (as it was originally enacted).

Meaning of “pensions promise” etc

This section has no associated Explanatory Notes

5.—(1) For the purposes of section 2 there is a “full pensions promise” in relation to a retirement benefit if—

(a)the scheme provides for there to be a promise, at all times before the benefit comes into payment, about the level of the benefit, and

(b)the level of the benefit is to be determined wholly by reference to that promise in all circumstances.

(2) For the purposes of sections 3 and 4 there is a “pensions promise” in relation to a retirement benefit if the scheme provides for there to be a promise, at a time before the benefit comes into payment, about the level of the benefit.

(3) A reference in this section to a promise about the level of a retirement benefit—

(a)includes a promise about factors, other than longevity, that will be used to calculate the level of the benefit,

(b)does not include a promise if, or to the extent that, it consists merely of a promise that the level of the benefit will be calculated by reference to an amount available for its provision, and

(c)in the case of a benefit the level of which depends on the amount available for the provision of benefits to or in respect of the member and one or more other members collectively, does not include a promise about the factors used to determine what proportion of that amount is available for the provision of the particular benefit.

(4) A scheme provides for there to be a promise if the scheme—

(a)sets out the promise, or

(b)requires the promise to be obtained from a third party.

(5) A scheme also provides for there to be a promise for the purposes of subsection (2) if the scheme provides for the member to be given—

(a)the option of a promise from the scheme, or

(b)the option of requiring a promise to be obtained from a third party, (whether or not the option is subject to conditions).

(6) A benefit does not fail the test in subsection (1)(b) just because the scheme confers a discretion to vary the benefit so long as the discretion—

(a)is capable of being used only for reasons related to a member’s individual circumstances and meets any other requirements that may be specified in regulations, or

(b)is of a description specified in regulations.

(7) A promise about the level of retirement income is not to be treated as a pensions promise if—

(a)the promise is conditional on the retirement income coming into payment by a particular date,

(b)the scheme provides for the member to be first given the promise during such period ending on that date as may be specified in regulations, and

(c)the promise is not of a description specified in regulations.

(8) When working out for the purposes of sections 2 to 4 what benefits “may be provided” to a member, take into account—

(a)benefits that may be provided only if the member has been a member for a certain length of time, and

(b)any other benefits that, at a future time, are benefits that may be provided to the member.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the Northern Ireland Assembly department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes accompany all Acts of the Northern Ireland Assembly.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources