The Occupational Pension Schemes (Transfer Values and Miscellaneous Amendments) Regulations (Northern Ireland) 2003

Amendment of the Pension Sharing (Valuation) Regulations

4.—(1) The Pension Sharing (Valuation) Regulations (Northern Ireland) 2000(1) shall be amended in accordance with paragraphs (2) and (3).

(2) In regulation 1(2) (interpretation) after the definition of “the Department” there shall be inserted the following definition –

• ““effective date” in regulation 5(3) and (3A) means the date as at which the assets and liabilities are valued;”.

(3) In regulation 5 (occupational pension schemes: further provisions as to the calculation of cash equivalents and increases and reductions of cash equivalents) for paragraph (3) there shall be substituted the following paragraphs –

“(3) Subject to paragraphs (3A), (3B) and (6), where a scheme to which Article 56 applies had, at the effective date of the actuary’s latest report to the trustees or managers before the valuation day in accordance with “Retirement Benefit Schemes – Transfer Values (GN 11)” published by the Institute of Actuaries and the Faculty of Actuaries and current at the valuation day, assets that were not sufficient to pay the full amount of the cash equivalent in respect of all members of the scheme, the trustees or managers may reduce each part of the cash equivalent as shown in that report by an amount that is no greater than the percentage by which the assets are shown in that report as being insufficient to pay the full amount of the corresponding part of the cash equivalent in respect of all members of the scheme.

(3A) Subject to paragraph (6), in the case of a scheme to which Article 56 applies which had, at the effective date of the latest actuarial valuation under Article 57 before the valuation day, assets that were not sufficient to pay the minimum amount of the cash equivalent in respect of the liabilities referred to in Article 73(3), the trustees or managers may reduce each part of the minimum amount of the cash equivalent, as calculated under regulation 4(3)(b)(iii)(2) by a percentage that is no greater than the percentage which is the difference between –

(a) 100 per cent., and

(b) the percentage of the liabilities mentioned in the sub-paragraph of Article 73(3) corresponding to that part which the actuarial valuation shows the scheme assets as being sufficient to satisfy.

(3B) The amount of any cash equivalent after the reduction mentioned in paragraph (3) shall not be less than the minimum amount required under regulation 4(3)(b)(iii) to satisfy the liabilities referred to in Article 73(3).”.

(1)

S.R. 2000 No. 144; relevant amending regulations are S.R. 2000 No. 335

(2)

Regulation 4 was amended by S.R. 2000 No. 335