Explanatory Note
(This note is not part of the Regulations.)
These Regulations provide for the management and investment of the superannuation funds managed by the Northern Ireland Local Government Officers' Superannuation Committee. The provisions were formerly dealt with in the Local Government (Superannuation) Regulations (Northern Ireland) 1992 (“the 1992 Regulations”) at regulations P2 and P3. The 1992 Regulations have been consolidated in the Local Government Pension Scheme Regulations (Northern Ireland) 2000 (S.R. No. 177).
The principal amendments are—
(a)the inclusion, as investments, of insurance contracts with persons for whom making an insurance contract is business within class III in Schedule 1 to the Insurance Companies Act 1982 (linked long term business) (regulation 3(4));
(b)the inclusion of sub-underwriting as an investment with a limit on such investment in any single sub-underwriting contract of one per cent of the total value of the fund (regulation 3(9));
(c)a requirement for the Committee to prepare, maintain and publish a written statement of the principles governing its policy on investments of pension fund monies. The statement must cover the same matters as those the trustees of a trust scheme must include in the statement that they are required to prepare under section 35 of the Pensions (Northern Ireland) Order 1995. The statement must also include the Committee’s policy on the extent to which social, environmental and ethical considerations are taken into account (regulation 10); and
(d)the inclusion in the limit of 25 per cent of the total value of the fund of investments in open-ended investment company schemes (regulation 12 and the Schedule).
The Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 1996 (S.R. 1996/584), which impose restrictions on the amount of the resources of an occupational pension scheme which may be invested in employer-related investments, may further restrict or limit investments of fund monies. Those Regulations are made under powers conferred by, amongst others, Article 40 of the Pensions (Northern Ireland) Order 1995 (restrictions on employer-related investments).
The Financial Services (Regulated Schemes) Regulations 1991 referred to in regulation 3(6) may be purchased from the Financial Services Authority (FSA), 25, The North Colonnade, Canary Wharf, London E14 5HS.