The Police Service of Northern Ireland Pensions (Pension Sharing) Regulations 2006

Explanatory Note

(This note is not part of the Regulations)

These regulations amend the following regulations: the Royal Ulster Constabulary Pensions Regulations 1988 (“the 1988 Regulations”), which provide for the superannuation of members of the Police Service of Northern Ireland, the Royal Ulster Constabulary Pensions (Purchase of Increased Benefits) Regulations 1988, which enable police officers to purchase additional benefits, the Royal Ulster Constabulary Pensions (Additional Voluntary Contributions) Regulations 1993 (“the AVC Regulations”), which make provision for the payment of additional voluntary contributions by members to secure additional pension benefits, and the Royal Ulster Constabulary Reserve (Full-time) Pensions Regulations 1994 (“the Full-time Reserve Pensions Regulations”) which apply, with some exceptions and subject to modifications, the provisions of the 1988 Regulations to full-time members of the Police Service of Northern Ireland Reserve.

The amendments make provision for the implementation of pension sharing on divorce and nullity in accordance with the Welfare Reform and Pensions (Northern Ireland) Order 1999 (“the 1999 Order”) and subordinate legislation made under that Order.

Regulation 1 provides for citation and commencement and for the Regulations to have effect from 1st December 2000.

Regulation 2 and Schedule 1 provide for the amendment of the 1988 Regulations as respects pension debit members (members whose rights are reduced by pension sharing orders) and pension credit members (the ex-spouses in whose favour pension sharing orders have been made).

Paragraph 1 of Schedule 1 amends regulation A9 to provide for the reduction of the amount of aggregate pension contributions. Paragraph 2 of Schedule 1 amends regulation B8(1) so that pension credit members' pensions are considered in determining if pensions can be commuted on the grounds of triviality. Paragraph 3 inserts regulation B12 under which pension debit members' awards are calculated subject to the overriding reduction. Paragraph 4 inserts regulation C10 under which pension debit members' surviving spouses' awards are similarly reduced. Paragraph 5 inserts regulation D6 which provides that pension debit members' children’s awards are first calculated as if the member were not a pension debit member and are then reduced to the extent required by Article 28 of the 1999 Order. Paragraph 6 inserts regulation E11 under which awards on the death of pension debit members are reduced. Paragraph 7 makes provision about certificates relating to pension debit members. Paragraph 8 inserts regulation F9A which prevents a transfer in respect of pension credit rights being accepted by the scheme.

Paragraph 9 applies regulation K5 (forfeiture) to pension credit members' pensions. Paragraph 10 applies regulation L4 (payment to non-beneficiaries).

Paragraph 11 inserts a new Part N making provision about pension credit members. The new regulations in Part N set out the pension credit member’s entitlement to a pension in respect of his pension credit at normal benefit age (60) or, if later, the date when the pension sharing order takes effect, for the commutation of the pension and for a death grant to be payable if the member dies before the pension is payable. Regulation N5 disapplies most of the 1988 Regulations for these members, except the regulations mentioned in the new regulation N5(2).

Paragraph 12 inserts a number of new definitions into Schedule A.

Paragraph 13 to 16 make consequential amendments of Schedules B and F (calculation of pensions and transfer values).

Regulation 3 amends the Royal Ulster Constabulary Pensions (Purchase of Increased Benefits) Regulations 1988 to prevent pension debit members from purchasing rights to replace those debited by a pension sharing order, except in the circumstances allowed under regulations made under paragraph 18(10) or (11) of Schedule 10 to the Finance Act 1999.

Regulation 4 and Schedule 2 provide for the amendment of the AVC Regulations. Regulation 4(2) prevents those Regulations applying to pension credit members as such except so far as provided by Schedule 2. Regulations 2, 10, 15 and 16 are amended and a new regulation 10B is inserted which gives effect to a new Schedule 1A (see paragraphs 3 and 6 of Schedule 2 to these Regulations).

The new Schedule 1A to the AVC Regulations makes provision for the discharge of liability in respect of a pension credit by the Board, the discharge of liability if the person entitled to the pension credit dies before liability has been discharged, the payment of pension credit benefit at or after normal benefit age, the commutation of pension credit benefit before or at normal benefit age, and the payment of pension credit benefit as a lump sum after the death of the pension credit member before the pension credit benefit becomes payable.

Provision is also made for the investment of pension credit rights in a way which is similar to the investment of additional voluntary contributions under the AVC Regulations. The transfer of pension credit rights out of the AVC scheme is also provided for.

Regulation 5 makes minor amendments to the Full-time Reserve Pensions Regulations.

The amendments do not impose any costs on business.

Retrospective effect is authorised by Articles 14 and 15 of the Superannuation (Northern Ireland) Order 1972.