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The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

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Additional modifications relating to transfers and increases of earnings factors by 12 per cent.

68.—(1) Subject to the provisions of paragraphs (2) and (3), in any case where an earner’s accrued rights to guaranteed minimum pensions are or have been transferred under section 16 of the Act or regulations made under that section to another contracted-out scheme, or have arisen in such a scheme by reason of a transfer payment giving effect to his protected rights in accordance with regulations made under section 24(2)(b) of the Act, references in regulation 67(b) to an increase of 12 per cent. of an earner’s earnings factor for any year shall be construed as references only to the increase of earnings factors arising from the earner’s service in employment by reference to which the scheme ceasing to contract out was contracted out.

(2) For the purposes of paragraph (1), any service of the earner which is linked qualifying service shall be included in that service only where the earnings factors to which it relates are being increased by reference to orders under section 130 of the Administration Act.

(3) For the purposes of paragraph (1), where an earner has a guaranteed minimum pension in consequence of a transfer payment made in accordance with regulations made under section 24(2) of the Act—

(a)that pension shall be treated as if it had arisen as a result of his service in the employment by reference to which the scheme ceasing to be contracted out was contracted out, and

(b)the reference to earnings factors, to the extent that they relate to that pension, shall be construed so as to include only those which do not fall to be revalued in accordance with section 12(2) and (3) of the Act as modified by those regulations.

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