Local Government (Superannuation) Regulations (Northern Ireland) 1992

Regulation C11

SCHEDULE 6 Further Additional Contributions

1.—(1) An election to pay contributions under regulation C11 shall be made by notice given in writing to the pensionable employee’s employing authority, and shall specify—

(a) the amount of the additional contributions which are to be paid, expressed either as a percentage of his remuneration or as a sum payable at the times mentioned in sub-paragraph (2); and

(b) the proportion (if any) of the contributions which he wishes to be used to provide benefits payable in the event of death.

(2) The additional contributions shall be payable on the pensionable employee’s usual pay day, and for that purpose shall be deductible by the employing authority, or be otherwise recoverable by the Committee, under regulation C14.

2.  With respect to any election under paragraph 1—

(a) the Committee may require, before any contributions are first made pursuant to the notice given under paragraph 1(1), that (until discontinued) the amount of the additional contributions payable in any tax year shall be not less than the amount specified in regulation 2(8) of the Pension Schemes (Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations (Northern Ireland) 1987(1);

(b) the amount of the additional contributions payable in any tax year shall, when aggregated with the amount of any other contributions payable under these regulations, not exceed the amount allowed to be deducted under section 592(7) and (8) of the Act of 1988;

(c) subject to paragraphs (a) and (b), the pensionable employee may at any time elect by notice given in writing to his employing authority to vary his additional contributions (both as to the amount and as to the proportion of those he is to continue to pay which are to be used to provide benefits payable on death) or to discontinue those contributions; and

(d) no additional contributions shall be payable with respect to periods during which the person contributing is not a pensionable employee under these regulations, or (subject to paragraph 6) with respect to any period after he ceases to be employed by the employing authority to which notice was given under paragraph 1(1).

3.—(1) Where a notice under paragraphs 1(1) or 2(c) specifies that all or part of the additional contributions are to be used to provide benefits payable in the event of death, the Committee shall make arrangements, for the provision of those benefits under a pension policy with respect to which the Committee are to make payments to the insurance company with which the policy is entered into of the same amounts as the contributions to be so used within one month of the day on which they are payable by the pensionable employee under paragraph 1(2).

(2) The policy shall make provision for the matters mentioned in paragraph 2, and for the arrangements mentioned in paragraph 6 in the event of a change of employment by the pensionable employee.

4.—(1) The Committee shall invest any additional contributions which are not to be used to provide benefits payable in the event of death with a relevant body.

(2) Subject to sub-paragraph (3) and paragraph 6, upon the pensionable employee ceasing to be employed by the employing authority to which notice was given under paragraph 1(1), the Committee shall as soon as reasonably practicable apply the accumulated amount of the contributions invested as mentioned in sub-paragraph (1) to the provision of additional pension benefits under a pension policy.

(3) If the pensionable employee dies before such a policy is entered into the accumulated amount shall be payable to his personal representatives.

5.—(1) As soon as an employing authority receive a notice under paragraph 1(1) or 2(c) they shall forward it to the Committee.

(2) The Committee shall give effect to a notice under paragraph 1(1) or 2(c) as soon as reasonably practicable, and in any event—

(a) in the case of a notice under paragraph 1(1), so that the pensionable employee may begin to pay his additional contributions under paragraph 1(2) within 6 months of him giving that notice; and

(b) in the case of a notice under paragraph 2(c), so that the pensionable employee may pay his contributions at the varied amount or proportions, or cease to pay his contributions (as the case may be), within 3 months of him giving that notice.

(3) The benefits under a pension policy entered into under paragraph 3(1) or 4(2) shall be money purchase benefits the value of which is reasonable having regard to the amount of the contributions paid and which (subject to that) are of a similar class as the benefits which are payable under Part E and payable in similar circumstances to those in which such benefits are payable, save that there need be no requirement in the policy that the pensionable employee should be able to reckon any particular length of reckonable or qualifying service in order for the benefits to be payable.

(4) Before entering into such a policy, the Committee shall consult the pensionable employee and shall give effect, so far as is practicable and subject to sub-paragraph (3), to his wishes with respect to the benefits to be provided under it.

6.—(1) If, after ceasing to be employed by the employing authority to which notice was given under paragraph 1(1), the pensionable employee within one month and one day of the cessation enters a new employment in which he is also a pensionable employee and was making payments of additional contributions up to the date of cessation, he may elect by notice given in writing to his new employing authority before or within one month of beginning the new employment that his election to pay contributions under regulation C11 should continue to have effect.

(2) In the event of an election under sub-paragraph (1)—

(a) as soon as the new employing authority receive the notice of election they shall forward it to the Committee in relation to the new employment;

(b) no payment of additional contributions shall be made with respect to the period (if any) between the two employments, but subject to that the pensionable employee shall, with effect from the pay day next after the day notice was given under sub-paragraph (1), make payments of additional contributions in his new employment under his notice under paragraph 1(1) as from time to time varied (or subsequently discontinued) under paragraph 2(c);

(c) the Committee shall continue to invest all additional contributions paid by him not specified to be used to provide benefits payable in the event of death in the manner mentioned in paragraph 4(1) and apply any continuing additional contributions which are so specified towards the pension policy mentioned in paragraph 3(1); and

(d) paragraphs 4(2) and 6 shall have effect in relation to a cessation of the new employment as if the new employment were the one in relation to which notice was given under paragraph 1(1).

7.  Paragraph 2(d) shall not preclude a pensionable employee who has again become employed by a scheduled body (and has not elected under paragraph 6(1)) making a fresh election by notice under paragraph 1(2) in relation to his new employment.

8.—(1) If the benefits payable to a person in consequence of the payment of contributions under regulation C11, when aggregated with the other benefits payable to him under these regulations, exceed the maximum benefits payable if the occupational pension scheme or schemes represented by these regulations were to expect to continue to qualify as exempt approved schemes for the purposes of Chapter I of Part XIV of the Act of 1988, the benefits payable under Part E shall be reduced so far as is necessary to secure that those maximum benefits are not exceeded.

(2) Before reducing any benefits under sub-paragraph (1), the Committee shall consult the Commissioners of Inland Revenue.

9.—(1) Regulations C15 to C17 (return of contributions) and P2 (management of the fund) do not apply to contributions payable under (or interest on late payments which relate to contributions under) regulation C11.

(2) The making of contributions under regulation C11, and any rights or liabilities arising under a pension policy entered into under paragraphs 3(1) or 4(2), shall be left out of account in calculating the amount of a transfer value payable under Part J and Parts M (forfeiture etc.) and N (decisions and appeals) do not apply in relation to benefits under such a policy.

10.  In this Schedule—

• “insurance company” means—

  (a)

  a person authorised under section 3 or 4 of the Insurance Companies Act 1982(2) to carry on long term business and acting through a branch or agency in the United Kingdom; or

  (b)

  a society registered as a friendly society under the Friendly Societies Act 1974(3) or the Friendly Societies Act (Northern Ireland) 1970(4);

• “money purchase benefits” has the same meaning as in the Social Security (Northern Ireland) Order 1986(5);

• “pension policy” means a contract entered into on behalf of the pensionable employee by the Committee with an insurance company for the payment by the company of pension benefits to the intended recipients of those benefits which are in addition to those payable under Part E; and

• “relevant body” means—

  (a)

  a person for the time being operating a scheme which is an approvedscheme for the purposes of Chapter I of Part XIV of the Act of 1988, and which provides benefits in relation to people who have paid contributions to it which are in addition to those provided in relation to those people under an occupational pension scheme; or

  (b)

  a building society within the meaning of the Building Societies Act 1986(6).

(1)

S.R. 1987 No. 286

(2)

1982 c. 50

(3)

1974 c. 46

(4)

1970 c. 31 (N.I.)

(5)

S.I. 1986 No. 1888 (N.I. 18)

(6)

1986 c. 53