The Occupational Pension Schemes (Contracting-out) (Amendment) Regulations (Northern Ireland) 2009

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations

2.  After regulation 69 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996(1) (miscellaneous provisions affecting section 47 of the Act) insert—

“Conversion of guaranteed minimum pensions into other benefits: actuarial equivalence

69A.— (1) For the purpose of Condition 1 of section 20B of the Act (the conversion conditions), actuarial equivalence is to be determined in accordance with this regulation.

(2) The trustees are responsible for determining actuarial equivalence.

(3) In determining actuarial equivalence, the trustees must—

(a) obtain advice from the actuary about what assumptions are appropriate at the conversion date;

(b) consider that advice;

(c) decide what assumptions are appropriate at the conversion date and, if the trustees later think it is necessary, change that decision, and

(d) arrange for the actuary to calculate the actuarial values of the post-conversion benefits and the pre-conversion benefits in accordance with paragraph (4).

(4) In calculating the actuarial values mentioned in paragraph (3)(d), the actuary must—

(a) use the assumptions chosen by the trustees under paragraph (3)(c), and

(b) ignore the value of any—

(i) benefits which have been commuted;

(ii) amounts which have been paid in respect of any benefits;

(iii) amounts in respect of any benefits which, before the conversion date, became due to be paid, and

(iv) discretionary benefits which might be awarded in the future.

(5) When the actuarial values mentioned in paragraph (3)(d) have been calculated, the actuary must send the trustees a certificate if the post-conversion benefits are actuarially at least equivalent to the pre-conversion benefits.

(6) The certificate must—

(a) state that—

(i) the calculations have been completed, and

(ii) the post-conversion benefits are actuarially at least equivalent to the pre-conversion benefits, and

(b) be sent to the trustees no later than 3 months after the calculations have been completed.

Conversion of guaranteed minimum pensions into other benefits: survivors’ benefits

69B.— (1) For the purposes of Condition 4 of section 20B of the Act (the conversion conditions), the circumstances in which, and periods during which, the converted scheme must provide survivors’ benefits are prescribed in this regulation.

(2) The circumstances are that—

(a) an earner’s pre-conversion benefits include a guaranteed minimum pension, and

(b) the scheme before conversion provided that—

(i) if such an earner dies leaving a widow, widower or surviving civil partner (whether before or after attaining pensionable age), the widow, widower or surviving civil partner will be entitled to a guaranteed minimum pension, and

(ii) such a widower or surviving civil partner’s guaranteed minimum pension will be payable in the circumstances set out in regulation 57(a) to (c)(2).

(3) The periods are—

(a) for widows, widowers and surviving civil partners, any period mentioned in section 13(4A)(a) and (b)(3) of the Act (minimum pensions for survivors);

(b) for widows, widowers and surviving civil partners whose entitlement by virtue of the earner’s contributions to a widowed parent’s allowance or bereavement allowance has come to an end at a time after the widow, widower or surviving civil partner attained the age of 45, so much of the period beginning with the time when that entitlement came to an end as neither—

(i) comprises a period during which the widow, widower or surviving civil partner and—

(aa) a person of the opposite sex are living together as husband and wife, or

(bb) a person of the same sex are living together as if they were civil partners, nor

(ii) falls after the time of any—

(aa) marriage, or

(bb) formation of a civil partnership,

by the widow, widower or surviving civil partner which takes place after the earner’s death;

(c) for widows, any period for which a widowed mother’s allowance or widow’s pension is payable to the widow by virtue of the earner’s contributions, and

(d) for widowers and surviving civil partners, any period which is, by virtue of regulation 58(4), a prescribed period for the purposes of section 13(6)(5) of the Act.

(4) Paragraph (3)(b)(i)(bb) and (ii)(bb) does not apply where the earner died before 5th December 2005.”.

(1)

S.R. 1996 No. 493; relevant amending Regulations are S.R. 2005 No. 433

(2)

Regulation 57 was amended by paragraph 18 of Schedule 2 to S.R. 2005 No. 433

(3)

Section 13(4A) was inserted by paragraph 1(1) of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4 (N.I.)) and amended by paragraph 5(d) of Schedule 1 to S.R. 2005 No. 433

(4)

Regulation 58 was amended by paragraph 19 of Schedule 2 to S.R. 2005 No. 433

(5)

Section 13(6) was amended by paragraph 1(3) of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 and paragraph 5(f) of Schedule 1 to S.R. 2005 No. 433