The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1997

Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations

19.—(1) The Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997(1) shall be amended in accordance with sub-paragraphs (2) to (8).

(2) In regulation 1(2)—

(a) after the definition of “member” there shall be inserted the following definition—

““mixed benefit contracted-out scheme” has the meaning given by regulation 1(2) of the Occupational Pension Schemes (Mixed Benefit Contracted-out Schemes) Regulations (Northern Ireland) 1997(2);”;

(b) in the definition of “money purchase scheme” after “provided” there shall be inserted “other than death benefits”; and

(c) the definition of “multi-employer scheme” shall be omitted.

(3) In regulation 2(2) for sub-paragraph (b) there shall be substituted the following sub-paragraph—

“(b) the only benefits provided by which are death benefits;”.

(4) In regulation 5—

(a) after paragraph (5) there shall be inserted the following paragraph—

“(5A) Where—

(a) an occupational pension scheme is contracted-out by virtue of regulations made under Article 146; and

(b) under the rules of the scheme an earner’s service in contracted-out employment will cease to qualify him for benefits under one part of the scheme but begin to qualify him for benefits under another part of the scheme,

the information mentioned in paragraph 6A of Schedule 2 shall be furnished to him before or within two months after the date on which his service begins to qualify him for the benefits under the other part of the scheme.”;

(b) in paragraph (10) the words “Subject to paragraph (11),” shall be omitted;

(c) paragraph (11) shall be omitted;

(d) after paragraph (12) there shall be inserted the following paragraph—

“(12A) Where by virtue of paragraph 1 of Schedule 5 to the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations (Northern Ireland) 1996(3) (sectionalised multi-employer schemes) Article 56 applies as if a section of a scheme were a separate scheme (or, in a case where Article 56 does not apply to the scheme, if it did apply it would apply in that way), paragraphs (10) and (12) apply in a case where such a section is being wound up as they apply where the scheme as a whole is being wound up, but taking the references in those paragraphs to the scheme and its members and beneficiaries as referring only to the section and its members and beneficiaries.”; and

(e) after paragraph (13) there shall be added the following paragraphs—

“(14) Where the trustees have commenced winding up the scheme before 6th April 1997—

(a) paragraph (10) shall not apply; but

(b) the trustees shall furnish all members and beneficiaries (except excluded persons) with the information mentioned in paragraph 15 of Schedule 2 at least once in every successive 12 month period beginning with that date and ending with the completion of the winding up.

(15) For the purposes of this regulation, the time when a scheme begins to be wound up shall be determined in accordance with regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations (Northern Ireland) 1996.”.

(5) In regulation 6(1) for sub-paragraph (c) there shall be substituted the following sub-paragraph—

“(c) where Article 56 applies to the scheme, a copy of the latest certificate by the actuary under the Order as to the adequacy of the contributions payable towards the scheme; and”.

(6) In Schedule 1 after paragraph 12 there shall be inserted the following paragraph—

“12A.— (1) Without prejudice to paragraph 12, where—

(a) the scheme is—

(i) a money purchase contracted-out scheme, or

(ii) a mixed benefit contracted-out scheme,

but is not an insured scheme (as defined in regulation 1(2) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996(4));

(b) the amount of assets allocated for the provision of benefits to or in respect of a member which are payable by virtue of his protected rights under the scheme or, in the case of such a scheme as is mentioned in sub-paragraph (a)(ii), under the money purchase part of the scheme, is periodically increased by an amount which is not calculated directly by reference to the investment gain actually derived from the investment of those assets by the trustees of the scheme (whether over the period to which the increase relates or a longer period), and

(c) if the increase is calculated by reference to the investment gain from investments in which those assets could be invested, they are not actually so invested or are only so invested to an extent which would not materially affect the actual investment gain from the assets as a whole,

the information mentioned in sub-paragraph (2).

(2) The information referred to in sub-paragraph (1) is—

(a) that the assets mentioned in sub-paragraph (1)(b) are increased in the way there mentioned;

(b) the method used to calculate that increase, and

(c) the reason why that method is used.

(3) For the purposes of sub-paragraph (1)(b), a mixed benefit contracted-out scheme is to be treated as if the pensions falling within Article 146(1)(b) were provided by a separate part of the scheme (“the money purchase part”).

(4) In paragraph (1)(b) and (c) references to the investment gain from investments are to both the income and capital gain derived from investing in those investments.”.

(7) In Schedule 2 after paragraph 6 there shall be inserted the following paragraph—

“6A.   The date on which the earner’s service begins to qualify him for benefits under the other part of the scheme and whether his rights in respect of his service on or after that date will be rights under the part of the scheme providing such pensions as are referred to in sub-paragraph (a) or (b) of Article 146(1).”.

(9) In Schedule 3 for paragraph 16 there shall be substituted the following paragraph—

“16.   Where the scheme has employer-related investments (within the meaning of Article 40(2)), a statement—

(a) as to the percentage of the scheme’s resources invested in such investments at the end of the scheme year;

(b) if that percentage exceeds 5 per cent, as to the percentage of the scheme’s resources which are investments to which regulation 6 of the Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 1996(5) (investments not subject to restrictions) applies; and

(c) if any resources of the scheme are then invested in contravention of paragraph (1) of Article 40—

(i) as to the steps the trustees or managers have taken or propose to take to secure that the scheme complies with that Article; and

(ii) as to the time when any proposed steps will be taken.”.

(1)

S.R. 1997 No. 98

(2)

S.R. 1997 No. 95

(3)

S.R. 1996 No. 570

(4)

S.R. 1996 No. 493

(5)

S.R. 1996 No. 584