The Occupational Pension Schemes (Winding up, etc.) Regulations (Northern Ireland) 2005

Requirements to be met where liabilities discharged on winding up

11.  In regulation 8 of the Winding Up Regulations (requirements to be satisfied by transferee schemes, annuities, etc.) after paragraph (5) there shall be added –

“(6) For the purposes of Article 74(3)(e)(1) (liabilities treated as discharged where the trustees have provided for them to be discharged by the payment of a cash sum in circumstances where prescribed requirements are met), the prescribed circumstances are –

(a) where the payment is a contribution refund under Chapter 5 of Part IV of the Act (early leavers: cash transfer sums and contribution refunds); or

(b) where the payment –

(i) is made to a member who has a right under the scheme rules to the payment of a lump sum that is a trivial commutation lump sum or a winding up lump sum for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (see paragraphs 7 to 10 of that Schedule (registered pension schemes: authorised lump sums: trivial commutation lump sum and winding up lump sum)), and

(ii) does not contravene any trivial commutation restriction that applies in the circumstances in question.

(7) In this regulation “trivial commutation restriction” means a restriction imposed by –

(a) regulation 19, 20 or 60 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996(2) (lump sum benefits and salary related contracted-out schemes, trivial commutation of benefits derived from section 5(2B) rights and trivial commutation of guaranteed minimum pensions);

(b) regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997(3) (commutation of a pension under an occupational pension scheme); or

(c) regulation 3(2)(b) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000(4) (commutation of the whole of pension credit benefit).

(8) Before 6th April 2006 this regulation applies with the modification in paragraph (9).

(9) For paragraph (6)(b)(i) substitute –

“(i) extinguishes the whole or part of the person’s entitlement to benefits under the scheme;

(ia) does not contravene Revenue restrictions; and”.

(10) For the purposes of this regulation a payment does not contravene Revenue restrictions if –

(a) in the case of a scheme that is an approved scheme for the purposes of Chapter 1 of Part 14 of the Taxes Act 1988 (see section 612(1) of that Act), it is permitted under the scheme rules in accordance with its approval for those purposes; and

(b) in the case of a scheme that is a relevant statutory scheme for those purposes (see section 611A of that Act), it is permitted under the regulations or rules governing the scheme as such a scheme.”.

(1)

Sub-paragraph (e) is inserted by Article 247(2)(c) of the Pensions (Northern Ireland) Order 2005

(2)

S.R. 1996 No. 493; regulation 19 was substituted by regulation 2(7) of S.R. 2002 No. 109, regulation 20 was amended by regulation 2(3) of S.R. 2000 No. 336 and regulation 2(8) of S.R. 2002 No. 109 and regulation 60 was amended by paragraph 5(12) of the Schedule to S.R. 1997 No. 160 and regulation 2(12) of S.R. 2002 No. 109

(3)

S.R. 1997 No. 153; regulation 2 was amended by regulation 8 of S.R. 2002 No. 109

(4)

S.R. 2000 No. 146