The Occupational and Personal Pension Schemes (Bankruptcy) Regulations (Northern Ireland) 2002

Explanatory Note

(This note is not part of the Regulations.)

These Regulations make provision for the treatment of rights under certain pension arrangements in the event of a person’s bankruptcy.

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 prescribes pension arrangements for the purposes of Article 12(2)(h) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (“the 1999 Order”) to allow pension rights of a bankrupt under such arrangements to be excluded from his estate for the purposes of Article 12(1) of the 1999 Order.

Regulation 3 prescribes pension arrangements which qualify as “unapproved pension arrangements” for the purposes of Article 13 of the 1999 Order. It also prescribes the person responsible for providing information for the purpose of making applications to the High Court or entering into agreements to have rights under an unapproved pension arrangement excluded from the bankrupt’s estate.

Regulation 4 sets out the ways in which an unapproved pension arrangement can be excluded from a bankrupt’s estate.

Regulation 5 makes provision, in relation to a prescribed unapproved pension arrangement, relating to the making of an “exclusion order” excluding the rights of a bankrupt under such an arrangement from his estate. Paragraph (1) sets out the time limits for applying to the High Court for an exclusion order. Paragraph (2) allows the High Court to extend the time limits for an application of an exclusion order where good cause is shown. Paragraph (3) specifies the matters to be considered by the High Court in deciding whether or not to make an exclusion order.

Regulation 6 provides, in relation to a prescribed unapproved pension arrangement, for the making of a “qualifying agreement” between the bankrupt and the trustee in bankruptcy excluding the rights of a bankrupt under an unapproved pension arrangement from his estate. Paragraph (1) sets out the time limits for the making of a qualifying agreement. Paragraph (2) specifies the form and content of a qualifying agreement. Paragraph (3) provides, in certain circumstances, for the revocation of a qualifying agreement by the trustee in bankruptcy by giving the bankrupt a “notice of revocation”. Paragraph (4) specifies the form and content of a notice of revocation. Paragraph (5) requires the trustee in bankruptcy to notify, within a set time limit, the person responsible for the pension arrangement that a qualifying agreement has been made or revoked.

Regulation 7 provides for the calculation and verification of the cash equivalent of a bankrupt’s rights under an approved pension arrangement, or his excluded rights under an unapproved pension arrangement, for the purpose of enabling the High Court to determine whether to make an order (“a restoration order”) under Article 315A of the Insolvency (Northern Ireland) Order 1989.

Regulation 8 provides that where a restoration order has been made the person responsible for the pension arrangement in question shall comply with that order within the prescribed time.

Regulation 9 provides for the calculation and verification of the cash equivalent of a person’s pension rights where those rights are derived directly, or indirectly, from a pension-sharing transaction.

Regulation 10 prescribes the periods within which the person responsible for the pension arrangement in question has to comply with a request for information.

Articles 315C(4)(a) and (8) and 315F(6)(a) and (10) of the Insolvency (Northern Ireland) Order 1989, some of the enabling provisions under which these Regulations are made, were substituted and inserted respectively by Article 15 of, and paragraphs 53 and 54 of Schedule 9 to, the 1999 Order. Article 2(a) of the Welfare Reform and Pensions (1999 Order) (Commencement No. 10) Order (Northern Ireland) 2002 (S.R. 2002 No. 25 (C. 2)) provides for the coming into operation of Article 15 of the 1999 Order, in so far as it is not already in operation, on 6th April 2002. Article 2 of the Welfare Reform and Pensions (1999 Order) (Commencement No. 12) Order (Northern Ireland) 2002 (S.R. 2002 No. 126 (C. 9)) provides for the coming into operation of paragraphs 53 and 54 of Schedule 9 to the 1999 Order, for the purpose only of authorising the making of regulations, on 27th March 2002 and, for all other purposes, on 6th April 2002.