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The Welfare Reform and Pensions (Northern Ireland) Order 1999

Status:

This is the original version (as it was originally made).

Article 17.

SCHEDULE 2PENSIONS: MISCELLANEOUS AMENDMENTS

Income payments orders against pension payments

1.  In Article 283(7) of the[1989 NI 19.] Insolvency (Northern Ireland) Order 1989 (bankrupt’s income against which income payments orders may be made includes certain payments under pension schemes), after “employment and” insert “(despite anything in Article 12 or 13 of the Welfare Reform and Pensions (Northern Ireland) Order 1999)”.

Extended meaning of “personal pension scheme”

2.—(1) In the Pension Schemes Act

(a)in section 1 (categories of pension schemes), in the definition of

  • “personal pension scheme”, for “employed earners” substitute

  • “earners (whether employed or self-employed)”; and

    (b)

    in section 176(1) (general interpretation), for the definition of

  • “employed earner” substitute—

    • “employed earner” and “self-employed earner” have the meanings given by section 2 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;.

(2) In consequence of sub-paragraph (1), the following provisions of that Act shall cease to have effect, namely—

(a)in section 69(2)(a)(ii) (short service benefit), the words “or a self-employed pension arrangement” and “or arrangement”;

(b)in section 92(2)(a) (exercise of option under section 91), sub-paragraph (iii) and the word “or” immediately preceding that sub-paragraph; and

(c)in section 176(1) (general interpretation), the definition of “self-employed pension arrangement”.

Revaluation of earnings factors: meaning of “relevant year”

3.  In section 12(5) of the Pension Schemes Act (revaluation of earnings factors for purposes of section 10: early leavers etc.), for the definition of

“relevant year” substitute—

“relevant year” means any tax year in the earner’s working life,.

Interim arrangements

4.—(1) Section 24 of the Pension Schemes Act (ways of giving effect to protected rights) is amended as follows.

(2) In subsection (1)—

(a)omit paragraph (aa) (but not the final “and”); and

(b)in paragraph (b), for “permitted” substitute “provided for”.

(3) For subsection (1A) substitute—

(1A) Where the scheme is a personal pension scheme which provides for the member to elect to receive payments in accordance with this subsection, and the member so elects, effect shall be given to his protected rights during the interim period by the making of payments under an interim arrangement which—

(a)complies with section 24A, and

(b)satisfies such conditions as may be prescribed;

and in such a case subsections (2) to (4) accordingly apply as regards giving effect to his protected rights as from the end of that period..

(4) In subsection (3) for “(1A)(a) or” substitute “(1A) or”.

Effect of certain orders on guaranteed minimum pensions

5.  In section 43 of the Pension Schemes Act (entitlement to guaranteed minimum pension for the purposes of the relationship with social security benefits), after subsection (6) (which is added by Article 29(4) of this Order) add—

(7) For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for any order under Article 315A of the Insolvency (Northern Ireland) Order 1989 (recovery of excessive pension contributions)..

Payment by the Department of unpaid pension contributions

6.—(1) Paragraph 2 of Schedule 3 to the Pension Schemes Act (priority in bankruptcy for amounts paid by the Department in respect of unpaid pension contributions) is amended as follows.

(2) For sub-paragraphs (1) to (3) substitute—

(1) This Schedule applies to any sum owed on account of an employer’s contributions to a salary related contracted-out scheme which were payable in the period of 12 months immediately preceding the relevant date.

(1A) The amount of the debt having priority by virtue of sub-paragraph (1) shall be taken to be an amount equal to the appropriate amount.

(2) This Schedule applies to any sum owed on account of an employer’s minimum payments to a money purchase contracted-out scheme falling to be made in the period of 12 months immediately preceding the relevant date.

(3) In so far as payments cannot from the terms of the scheme be identified as falling within sub-paragraph (2), the amount of the debt having priority by virtue of that sub-paragraph shall be taken to be an amount equal to the appropriate amount.

(3A) In sub-paragraph (1A) or (3) “the appropriate amount” means the aggregate of—

(a)the percentage for non-contributing earners of the total reckonable earnings paid or payable, in the period of 12 months referred to in sub-paragraph (1) or (2) (as the case may be), to or for the benefit of non-contributing earners; and

(b)the percentage for contributing earners of the total reckonable earnings paid or payable, in that period, to or for the benefit of contributing earners..

(3) In sub-paragraph (4), for “sub-paragraph (3)” substitute “sub-paragraph (3A)”.

Supervision by the Occupational Pensions Regulatory Authority

7.  In Article 3(2)(b) of the Pensions Order (power of Authority to remove pension scheme trustee to whom Article 3 applies by virtue of any other provision of Part II of the Order), for “any other provision of this Part” substitute “this Order or any other statutory provision”.

8.  In Article 8(4) of the Pensions Order (provision which may be contained in orders made by the Authority appointing pension scheme trustees), omit the word “or” at the end of sub-paragraph (a).

9.  In Article 10 of the Pensions Order (imposition of civil penalties by the Authority), after paragraph (8) insert—

(8A) Any penalty recoverable under this Article shall, if a county court so orders, be enforceable as if it were payable under an order of that court..

Occupational pension schemes: institutions who may hold money deposited by trustees etc.

10.—(1) Article 49 of the Pensions Order (other responsibilities of trustees, employers, etc.) is amended as follows.

(2) In each of paragraphs (1) and (5) (money to be kept by trustees or employers in accounts with institutions authorised under the Banking Act 1987), for “an institution authorised under the[1987 c. 22.] Banking Act 1987” substitute “a relevant institution”.

(3) After paragraph (1) insert—

(1A) In this Article “relevant institution” means—

(a)an institution authorised under the Banking Act 1987;

(b)an institution within any of paragraphs 1 to 6 of Schedule 2 to that Act (institutions not requiring authorisation); or

(c)a European authorised institution within the meaning of the Banking Coordination (Second Council Directive) Regulations 1992 which may lawfully accept deposits in the United Kingdom in accordance with those regulations..

Annual increase in rate of pension

11.  In Article 54(3) of the Pensions Order (supplementary provisions about annual increases in pensions), in the definition of “appropriate percentage”, for the words from “the revaluation period” onwards substitute

  • “the latest revaluation period specified in the order under paragraph 2 of Schedule 2 to the Pension Schemes Act (revaluation of accrued pension benefits) which is in force at the time of the increase (expressions used in this definition having the same meaning as in that paragraph),”.

Occupational pension schemes: certificates etc. relating to minimum funding requirement

12.—(1) In Article 58 of the Pensions Order (schedules of contributions), in paragraph (6)(a) (certification by actuary of adequacy of rates of contributions to meet minimum funding requirement)—

(a)for the words Form “on the date” to “is met,” substitute “it appears to him that the minimum funding requirement was met on the prescribed date,”; and

(b)omit the words “continue to”.

(2) In Article 59 of that Order (determination of contributions: supplementary), in paragraph (3) (duty of trustees etc. to prepare report of failure to meet minimum funding requirement), after “they must” insert “, within such further period as may be prescribed,”.

Excess assets of wound-up schemes

13.  In Article 77(5) of the Pensions Order (penalties for trustees who deal improperly with excess assets of wound-up occupational pension schemes), for “Article 3 applies” substitute “Articles 3 and 10 apply”.

Pensionable service

14.  In Article 121(3) of the Pensions Order (matters to be disregarded in determining “pensionable service”), at the end add—

  • but, in its application for the purposes of Article 51, sub-paragraph (b) does not affect the operation of any rules of the scheme by virtue of which a period of service is to be rounded up or down by a period of less than a month..

Occupational pension schemes: rights of employee who is director of corporate trustee

15.—(1) The[1996 NI 16.] Employment Rights (Northern Ireland) Order 1996 is amended as follows.

(2) In Article 69 (employee who is a trustee of a pension scheme not to be subject to detriment referable to his carrying out his functions as such a trustee), after paragraph (2) insert—

(2A) This Article applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director)..

(3) In Article 86 (right to time off for pension scheme trustees), after paragraph (2) insert—

(2A) This Article applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director)..

(4) In Article 133 (unfair dismissal of pension scheme trustees), after paragraph (1) insert—

(1A) This Article applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director)..

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