Supervision of schemes that have ceased to contract out
46.—(1) Subject to such directions as the Department may give under section 49(1) of the Act(1) (supervision of formerly contracted-out schemes) for the purposes of section 49(3) of the Act(2) (requirement to discharge liabilities following issue of certificate of non-approval), the liabilities in respect of such entitlement or rights as are referred to in section 48(2A)(a) or (b) of the Act(3) must, subject to paragraphs (2) to (4), be transferred or discharged in the manner permitted by regulation 45(2) within 6 months of the date a certificate of non-approval under section 46(2) of the Act(4) is issued, unless the certificate has been cancelled.
(2) In the case of a scheme where employment was contracted out under section 5(2) of the Act (salary related contracted-out scheme), the discharge may be arranged in accordance with the requirements of regulation 5(4) of the Occupational Pension Schemes (Discharge of Liability) Regulations (Northern Ireland) 1985(5), notwithstanding that a member’s pensionable service has not terminated and the scheme is not winding up.
(3) In the case of a scheme where employment was contracted out under section 5(3) of the Act (money purchase contracted-out scheme), the discharge may be arranged in the manner specified by regulations made under section 28A of the Act, notwithstanding that the scheme is not winding up.
(4) Every active and deferred member with any entitlement to protected rights, guaranteed minimum pensions or section 5(2B) rights under the scheme must be notified of the issue of the certificate of non-approval and the reasons for it and allowed a period of 3 months from the date of such notification in which he may elect to transfer any such rights before they are discharged.
Section 49(1) was substituted by paragraph 40 of Schedule 3 to the Pensions (Northern Ireland) Order 1995
Section 49(3) was substituted by paragraph 40(c) of Schedule 3 to the Pensions (Northern Ireland) Order 1995
Section 48(2A) was substituted by paragraph 39 of Schedule 3 to the Pensions (Northern Ireland) Order 1995
Section 46(2) is amended by paragraph 14 of Schedule 3 to the Pensions (Northern Ireland) Order 1995
S.R. 1985 No. 356; regulation 5 was substituted by paragraph 1 of Schedule 1 to S.R. 1991 No. 37 and was amended by paragraph 4(9) of Schedule 2 to S.R. 1994 No. 300