The Occupational Pension Schemes (Pensions Compensation Provisions) (Amendment) Regulations (Northern Ireland) 2001

Amendment of the principal Regulations

2.—(1) The principal Regulations shall be amended in accordance with paragraphs (2) to (5).

(2) After regulation 3 (relevant offences) there shall be inserted—

“Protected liabilities — prescribed class of members

3A.   For the purposes of Article 79(2A)(a) (protected liabilities to include liabilities in respect of members of prescribed class) the prescribed class of members shall comprise those members who fall within the “switch-over period”, as defined in regulation 7(10) of the Occupational Pension Schemes (Minimum Funding and Actuarial Valuations) Regulations (Northern Ireland) 1996(1).”.

(3) In regulation 5 (amount of compensation)—

(a) in paragraph (3), there shall be omitted “90 per cent. of”;

(b) in paragraph (5) for “90 per cent. of liabilities” there shall be substituted “the aggregate of the protected liabilities”, and

(c) in paragraph (6) for sub-paragraph (a) there shall be substituted—

“(a) the prescribed rate of interest shall be the base rate plus 2 per cent.;”.

(4) In regulation 6(5) (calculation of payments made in anticipation), for sub-paragraph (d) there shall be substituted—

“(d) so as not to exceed the aggregate of the protected liabilities.”.

(5) In regulation 10 (modifications for money purchase schemes)—

(a) in paragraph (1)(a)—

(i) in head (i), in the modification to Article 79(1), there shall be omitted “90 per cent. of”, and

(ii) for head (ii) there shall be substituted—

“(ii) in Article 81(3) for sub-paragraph (b) there were substituted the following sub-paragraph—

“(b) in the case of a money purchase scheme, must not exceed 90 per cent. of the difference between—

(i) the value of the assets of the scheme immediately before the reduction falling within Article 79(1)(c), and

(ii) their value immediately after that reduction,

as reported by the auditor, where that difference is adjusted so as to take account of subsequent alterations in their value (if any) which occur prior to the settlement date, including any alterations which would have occurred if that reduction had not taken place.”;”;

(b) in paragraph (1)(b)—

(i) for the words from “these Regulations” to “following paragraph—” there shall be substituted

“these Regulations shall have effect as if—

(i) in regulation 5 for paragraph (5) there were substituted—”

(ii) in the modification to regulation 5(5) of the principal regulations—

(aa) for “90 per cent. of their pre-loss value” there shall be substituted “the aggregate of the protected liabilities”, and

(bb) for “T × 90% − V” there shall be substituted “(T − V) × 90%”, and

(iii) at the end there shall be added—

“(ii) for sub-paragraph (d) of regulation 6(5) there were substituted—

(d) so as not to exceed 90 per cent. of the shortfall at the application date.”;

(c) in paragraph (2)(a)—

(i) in head (i), in the modification to Article 79(1), there shall be omitted “90 per cent. of”, and

(ii) for head (iv) there shall be substituted—

“(iv) in Article 81(3) for sub-paragraph (b) there were substituted the following sub-paragraph—

“(b) in case of an ear-marked scheme, must not exceed 90 per cent. of the difference between—

(i) the value of the assets of the scheme immediately before the reduction falling within Article 79(1)(c), and

(ii) their value immediately after that reduction,

as certified by the relevant insurer, where that difference is adjusted so as to take account of subsequent alterations in their value (if any) which occur prior to the settlement date, including any alterations which would have occurred if that reduction had not taken place.”;”, and

(d) in paragraph (2)(b), in the modification to regulation 5(5) of the principal regulations—

(i) for “90 per cent. of their pre-loss value” there shall be substituted “the aggregate of the protected liabilities”, and

(ii) for “(T + S) × 90% − V” there shall be substituted “(T + S − V) × 90%”.

(1)

S.R. 1996 No. 570; regulation 7(10) was substituted by regulation 3(4)(f) of S.R. 2000 No. 335