(This note is not part of the Regulations.)
These Regulations modify how the provisions of Part III of the Pensions (Northern Ireland) Order 2005 (“the Order”) operate in relation to hybrid schemes. Part III of the Order makes provision in respect of the Board of the Pension Protection Fund (“the Board”), which is established under section 107 of the Pensions Act 2004 (c. 35).
Regulation 2 prescribes the circumstances in which, and the conditions subject to which, the prohibition in Article 119(4) of the Order on transferring, or making transfer payments in respect of, any member’s rights and discharging any liability to, or in respect of, a member, does not apply.
Regulation 3(1) modifies Article 118 of the Order to provide for the Board to give directions to a relevant person (defined in Article 118(3) of the Order) regarding the exercise of his powers during an assessment period (see Article 116 of the Order) in respect of discharging liabilities of the scheme which relate to money purchase benefits. Regulation 3(2) and (3) modifies Schedule 6 to the Order so that compensation is not payable under paragraph 20 in relation to benefits or contributions that relate to money purchase benefits. Regulation 3(2) and (4) allows the Board to repay a person’s contributions to the scheme in respect of a pension or a lump sum (which are not money purchase benefits) in certain cases.
The Pensions (2005 Order) (Commencement No. 1 and Consequential and Transitional Provisions) Order (Northern Ireland) 2005 (S.R. 2005 No. 48 (C. 8)) provides for the coming into operation of some of the enabling provisions under which these Regulations are made as follows –
Articles 119(4) and 280(1)(a), for the purpose of authorising the making of regulations, on 25th February 2005, and for all other purposes on 6th April 2005, and
Article 280(2)(b) on 8th March 2005.
As the Regulations are made before the end of the period of six months beginning with the coming into operation of the provisions of the Order by virtue of which they are made, the requirement to consult under Article 289(1) of the Order does not apply by virtue of paragraph (2)(c) of that Article.