The Transfer of Employment (Pension Protection) Regulations (Northern Ireland) 2005

Requirements concerning a transferee’s pension contributions

3.—(1) In a case where these Regulations apply, the transferee’s pension contributions are relevant contributions for the purposes of Article 235(2)(b) in the case of a money purchase scheme, Article 235(3) to (5) in the case of a stakeholder pension scheme, and regulation 2(1)(b) in the case of a scheme which is not a money purchase scheme, if –

(a) the contributions are made in respect of each period for which the employee is paid remuneration, provided that the employee also contributes to the scheme in respect of that period, and

(b) the amount contributed in respect of each such period is –

(i) in a case where the employee’s contribution in respect of that period is less than 6 per cent. of the remuneration paid to him, an amount at least equal to the amount of the employee’s contribution;

(ii) in a case where the employee’s contribution in respect of that period equals or exceeds 6 per cent. of the remuneration paid to him, an amount at least equal to 6 per cent. of that remuneration.

(2) In calculating the amount of an employee’s remuneration for the purposes of paragraph (1) –

(a) only payments made in respect of basic pay shall be taken into account, and bonus, commission, overtime and similar payments shall be disregarded, and

(b) no account shall be taken of any deductions which are made in respect of tax, national insurance or pension contributions.

(3) In calculating the amount of a transferee’s pension contributions for the purposes of paragraph (1) in the case of a scheme which is contracted-out by virtue of section 5 of the Pension Schemes Act(1), minimum payments within the meaning of that Act shall be disregarded.

(1)

Section 5 was amended by Article 133(3) and (4) of, and paragraphs 14 and 17 of Schedule 3 to, the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) and paragraph 38 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671) and is amended by Article 260 of the Pensions (Northern Ireland) Order 2005; see also regulation 27 of S.R. 1996 No. 493