[F1Meaning of “cash balance benefit”N.I.
51ZB—(1) For the purposes of Article 51(7)(a), a pension provided to or in respect of a member of an occupational pension scheme is a “cash balance benefit” if conditions 1 and 2 are met.
(2) Condition 1 is that the rate of the pension is calculated by reference to a sum of money (“the available sum”) which is available under the scheme for the provision of benefits to or in respect of the member.
(3) Condition 2 is that under the scheme—
(a)there is a promise about the amount of the available sum, but
(b)there is no promise about the rate or amount of the benefits to be provided.
(4) The promise mentioned in paragraph (3)(a) includes in particular a promise about the change in the value of, or the return from, payments made under the scheme by the member or by any other person in respect of the member.
(5) The promise mentioned in paragraph (3)(b) includes a promise that—
(a)the amount of the available sum will be sufficient to provide benefits of a particular rate or amount;
(b)the rate or amount of a benefit will represent a particular proportion of the available sum.
(6) But a pension is not prevented from being a cash balance benefit merely because under the scheme there is a promise that—
(a)the rate or amount of a benefit payable in respect of a deceased member will be a particular proportion of the rate or amount of a benefit which was (or would have been) payable to the member;
(b)the amount of a lump sum payable to a member, or in respect of a deceased member, will represent a particular proportion of the available sum.]
F1Art. 51ZB inserted (7.6.2012) by Pensions Act (Northern Ireland) 2012 (c. 3), ss. 21(4), 34(3); S.R. 2012/233, art. 2(2)(f)