The Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000

Explanatory Note

(This note is not part of the Regulations.)

These Regulations provide for the requirements relating to, and the indexation of, pension credit benefit.

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 specifies the classes of occupational pension scheme which are not salary related.

Part II contains regulations 3 to 15 which set out requirements relating to pension credit benefit under occupational pension schemes.

Regulations 3 and 4 specify the circumstances in which pension credit benefit may be commuted.

Regulation 5 sets out how pension credit benefit may be secured.

Regulations 6 to 9 set out the alternatives to pension credit benefit which a scheme may provide.

Regulation 10 provides for the circumstances in which a person’s pension credit rights may be transferred from one occupational pension scheme to another without that person’s consent.

Regulation 11 specifies what the value of the alternatives to pension credit benefit must be.

Regulations 12 to 14 set out the requirements to be met where pension credit benefit or alternatives to pension credit benefit are secured by insurance policies or annuity contracts.

Regulation 15 describes further conditions on which liability for pension credit benefit or alternatives to pension credit benefit may be discharged.

Part III contains regulations 16 to 31 which deal with transfer values in respect of pension credit benefit.

Regulations 16 to 19 specify the circumstances in which transfer payments may be made in respect of safeguarded rights.

Regulations 20 to 22 describe requirements to be met by annuities, other pension arrangements, and eligible schemes in respect of transfer values.

Regulation 23 sets out the provisions relating to statements of entitlement.

Regulations 24 and 27 to 30 provide how cash equivalents are to be calculated and the circumstances in which they can be increased or reduced.

Regulation 25 specifies the period within which the trustees or managers of an occupational pension scheme are to notify the Occupational Pensions Regulatory Authority (“the Regulatory Authority”) should they fail to comply with a transfer notice within the period prescribed by section 97J(1) of the Pension Schemes Act (Northern Ireland) 1993 (“the Act”).

Regulation 26 provides for the Regulatory Authority to extend the statutory time limits for payment of cash equivalents on the application of the trustees or managers of an occupational pension scheme.

Regulation 31 specifies the maximum penalties which the Regulatory Authority may impose in any case where the Regulatory Authority are satisfied that a trustee or manager has not taken all reasonable steps to ensure that the obligation to provide the member with a statement of entitlement is fulfilled, or where the Regulatory Authority are informed that the trustees or managers have failed to comply with a transfer notice within the period specified in section 97J(1) of the Act.

Part IV contains regulations 32 to 35. Regulations 32 to 34 provide for increases to a pension, to which Article 37(2) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (“the 1999 Order”) applies. Regulation 35 defines eligible pension credit rights.

As these Regulations, in so far as they are made under Part II of the Pensions (Northern Ireland) Order 1995 (“the 1995 Order”) and Part V of the 1999 Order, make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Social Security in relation to Great Britain, the requirement for consultation does not apply by virtue of Article 117(2)(e) of the 1995 Order and Article 73(9) of the 1999 Order.

Sections 64D, 97C, 97D, 97E, 97F, 97H, 97I, 97J, 97L, 97P and 97Q of the Act, some of the enabling provisions under which these Regulations are made, are inserted by Articles 33 and 34 of the 1999 Order. The Welfare Reform and Pensions (1999 Order) (Commencement No. 3) Order (Northern Ireland) 2000 (S.R. 2000 No. 133 (C. 5)) provides for the coming into operation of the said Articles, in so far as they are not already in operation, on 1st December 2000. It also provides for the coming into operation of Article 37 of the 1999 Order, in so far as it is not already in operation, on 1st December 2000.