The Pensions (2004 Act and 2005 Order) (PPF Payments and FAS Payments) (Consequential Provisions) Order (Northern Ireland) 2006

Explanatory Note

(This note is not part of the Order)

This Order amends the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the 1992 Act”) and the State Pension Credit Act (Northern Ireland) 2002 (“the 2002 Act”) so as to allow adult dependency increases, incapacity benefit and state pension credit to take into account Pension Protection Fund periodic payments (“PPF periodic payments”) in a similar way to that in which pensions and benefit payments are treated. It also amends the Jobseekers (Northern Ireland) Order 1995 (“the 1995 Order”) so as to allow contribution-based jobseeker’s allowance similarly to take into account Pension Protection Fund payments (“PPF payments”) and Financial Assistance Scheme payments (“FAS payments”).

Article 2 introduces the Schedule containing the amendments.

Part 1 of the Schedule amends sections 30DD and 89 of the 1992 Act to provide that PPF periodic payments are treated in the same manner as occupational and personal pensions for the purposes of calculating incapacity benefit and increases of benefit for adult dependants. It also introduces a definition of “PPF periodic payments” into the 1992 Act.

Part 2 of the Schedule amends Article 6(1) of the 1995 Order to specify that, for the purposes of contribution-based jobseeker’s allowance, PPF payments and FAS payments shall be taken into account when calculating the rate of contribution-based jobseeker’s allowance that is to be paid to a claimant. It also introduces definitions of “FAS payments” and “PPF payments” into the 1995 Order.

Part 3 of the Schedule amends section 7(6) of the 2002 Act to provide that, for the purposes of the assessed income period, PPF periodic payments are treated in the same manner as occupational and personal pensions. It also introduces a definition of “PPF periodic payments” into the 2002 Act.

The Pensions (2005 Order) (Commencement No. 6) Order (Northern Ireland) 2005 (S.R. 2005 No. 411 (C. 32)) provides for the coming into operation of Article 290(2), one of the enabling provisions under which this Order is made, on 1st September 2005.