The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2007

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend various Regulations concerning occupational and personal pension schemes.

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 amends the Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987 to omit or, as the case may be, update references to other legislation.

Regulation 3 amends the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991, amongst other things, to substitute regulation 5 enabling the payment of short service benefit in the form of a lump sum before normal pension age, where the payment satisfies requirements contained in the Finance Act 2004 (“the 2004 Act”) for lump sum payments by pension schemes.

Regulation 4 amends the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 to substitute the definition of “overseas scheme”. It also prescribes the fixed rate of revaluation of accrued rights to a guaranteed minimum pension, where contracted-out employment ceases on or after 6th April 2007, as 4 per cent.

Regulation 5 amends the Protected Rights (Transfer Payment) Regulations (Northern Ireland) 1996 to extend the definition of “overseas scheme” to cover “European pensions institution” as defined in Article 269(8) of the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”).

Regulation 6 amends the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996 to extend the definition of “overseas scheme” to cover “European pensions institution” as defined in Article 269(8) of the 2005 Order.

Regulation 7 amends the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997 to omit regulation 8(2) enabling schemes to give effect to a part of a member’s protected rights in the form of a lump sum in accordance with the 2004 Act. Regulation 8(2) is no longer needed as it applies only to lump sums paid on grounds of triviality and the link in paragraphs 7 to 9 of Part 1 of Schedule 29 to the 2004 Act already provides for this.

Regulation 8 amends the Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997 to make it clear that the trustees of an occupational pension scheme are not required to provide the information under regulation 5(12ZA) to a member whose only entitlement to benefits is, or will be, to money purchase benefits.

Regulation 9 amends the Stakeholder Pension Schemes Regulations (Northern Ireland) 2000 to allow a member’s benefits to be reduced to take account of any payment in respect of any tax liability in relation to the member in accordance with the 2004 Act.

Regulation 10 amends the Occupational Pension Schemes (Winding up, etc.) Regulations (Northern Ireland) 2005 to cover, amongst other things, civil partnerships.

Regulation 11 amends the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations (Northern Ireland) 2005 to amend the provisions concerning a scheme with fewer than twelve members where all of the members are trustees of the scheme. It also amends the provisions concerning a scheme with fewer than twelve members where a company is the sole trustee of the scheme.

Regulation 12 amends the Pension Schemes (Categories) Regulations (Northern Ireland) 2005 to prescribe a further scheme which is an occupational pension scheme.

Regulation 13 amends the Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005, amongst other things, to exempt the trustees and managers of a scheme from having to disclose a summary funding statement containing prescribed information in accordance with paragraph 7(2) of Schedule 3 to members who are, or will be, entitled only to money purchase benefits.

Regulation 14 amends the Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 2005, amongst other things, to extend the scope of regulation 12 to cover all occupational pension schemes.

Regulation 15 amends the Occupational Pension Schemes (Regulatory Own Funds) Regulations (Northern Ireland) 2005 to amend the definition of “European employer”. It also amends the description of a small scheme.

Regulation 16 amends the Occupational Pension Schemes (Cross-border Activities) Regulations (Northern Ireland) 2005, amongst other things, to enable occupational pension schemes that currently carry out cross-border activities within the European Union to apply to the Pensions Regulator for authorisation or approval on or after 6th April 2007 and prescribes the manner and form in which the trustees or managers of such occupational pension schemes must apply. It also makes provision for the Pensions Regulator to instruct the trustees or managers of a scheme to complete the ring-fencing of the scheme within a specified period of time.

Regulation 17 amends the Occupational and Personal Pension Schemes (Consultation by Employers) Regulations (Northern Ireland) 2006 to amend the definition of “small occupational pension scheme”.

Regulation 18 amends the Occupational Pension Schemes (Trustees’ Knowledge and Understanding) Regulations (Northern Ireland) 2006 to amend the description of small schemes which are exempt from the requirements of Articles 224(3) and (4) and 225(3) and (5) of the 2005 Order.

Regulation 19 amends the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations (Northern Ireland) 2006 to amend the definition of “relevant small occupational pension scheme” and to add to the list of schemes exempt from the member-nominated trustees’ and member-nominated directors of corporate trustees’ requirements.

Regulation 20 and the Schedule make consequential revocations.

As these Regulations make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement to consult under Article 117(1) of the Pensions (Northern Ireland) Order 1995 and Article 289(1) of the 2005 Order does not apply by virtue of paragraph (2)(e) of each of those Articles.