The Occupational and Personal Pension Schemes (Disclosure of Information) (Amendment) Regulations (Northern Ireland) 2002

Explanatory Note

(This note is not part of the Regulations.)

These Regulations amend the Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987 (“the 1987 Regulations”), the Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997 (“the 1997 Regulations”) and the Stakeholder Pension Schemes Regulations (Northern Ireland) 2000 (“the 2000 Regulations”) following the amendment of section 109 of the Pension Schemes (Northern Ireland) Act 1993 (“the 1993 Act”) by section 48 (in part) of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000.

The effect of these amendments is that the information which has to be sent to members of schemes with money purchase benefits must include an illustration of the amount of future pension that might become payable under the scheme. The amount is to be determined by reference to guidance.

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 amends the 1987 Regulations. Regulation 2(1) introduces the amendments.

Regulation 2(2) amends regulation 1(2) by inserting definitions of “contracted-out employment”, “illustration date”, “non-contributing member”, “relevant guidance” and “retirement date”. The relevant guidance means the document entitled “Technical Memorandum TM1: Statutory Money Purchase Illustrations” which is published by the Faculty of Actuaries and the Institute of Actuaries. Copies may be obtained from the Faculty and Institute of Actuaries' website on www.actuaries.org.uk or by writing to the Institute of Actuaries, Staple Inn Hall, High Holborn, London WC1V 7QJ.

Regulation 2(3)(a) amends regulation 5(2) to provide for the requirement to furnish the information mentioned in inserted paragraph 2A of Schedule 2. Regulation 2(3)(b) inserts paragraphs (2A) and (2B) into regulation 5. Paragraph (2A) sets out the circumstances where the requirement to furnish the information does not apply. Paragraph (2B) covers the situation where the trustees choose to furnish the information voluntarily.

Regulation 2(4) inserts paragraph 2A into Schedule 2. Under sub-paragraph (1) the information to be sent to the member is an illustration of the amount of the pension an entitlement to which would be likely to accrue to him, or be capable of being secured by him, at his retirement date in respect of rights that may arise under the scheme. Sub-paragraph (2) describes how the amount is to be determined, with particular reference to the assumptions about contributions in sub-paragraph (3) and about annuities in sub-paragraphs (4) and (5). Sub-paragraph (6) lists the additional information which is to accompany the illustration.

Regulation 3 introduces similar requirements in relation to occupational pensions by means of amendments to regulations 1(2) and 5 of, and Schedule 2 to, the 1997 Regulations.

Regulation 4 introduces similar requirements in relation to stakeholder pensions by means of amendments to regulations 1(3) and 18 of the 2000 Regulations.

Regulation 5 contains a consequential revocation.

An assessment of the cost to business of these Regulations is detailed in a Regulatory Impact Assessment, copies of which have been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of the Assessment are available from the Department for Social Development, Social Security Policy and Legislation Division, Room 5, Block 5, Stormont Estate, Upper Newtownards Road, Belfast BT4 3SJ.