The Occupational and Stakeholder Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2013

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

3.  In regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996(1) (alteration of rules of contracted-out schemes)—

(a) in paragraph (1)(2) after “paragraph (2)” insert “, (2ZA)”;

(b) in paragraph (2) for “section 5(2B) rights under the scheme” substitute “rights which are to accrue under the scheme in so far as such rights are attributable to an earner’s service in contracted-out employment on or after the date on which the alteration to the rules takes effect (other than rights attributable to the payment of voluntary contributions)”;

(c) after paragraph (2) insert—

“(2ZA) The rules of a salary related contracted-out scheme cannot be altered in relation to any section 5(2B) rights(3) under the scheme unless—

(a) following the alteration, the scheme provides benefits, for the member and for that member’s widow, widower or surviving civil partner, in respect of the period of pensionable service to which the alteration relates and in which the member’s employment was contracted-out under section 5(2B)(4) of the Act (requirements for certification of schemes: general) which are at least equal to the benefits that would be provided by a reference scheme (within the meaning of section 8B(2)(5) of the Act);

(b) the alteration is one to which Article 67(6) of the Order (the subsisting rights provisions) does not apply;

(c) the alteration is one which is not a protected modification or a detrimental modification within the meaning given in Article 67A of the Order (the subsisting rights provisions: interpretation), or

(d) if the alteration is a detrimental modification within the meaning of Article 67A of the Order, the actuarial equivalence requirements provided for in Articles 67C and 67D of the Order (the actuarial equivalence requirements and further provisions) are met in relation to the proposed modification of those rights.

(2ZB) In the case of alterations falling within paragraph (2ZA)(c) or (d), but not falling within paragraph (2ZA)(a) or (b)—

(a) subject to sub-paragraph (b) of this paragraph, the altered scheme must provide for a pension to be paid to the member’s widow, widower or surviving civil partner in respect of the period in which the member’s employment was contracted-out under section 5(2B) of the Act (“the relevant survivor’s post-1997 pension”) which is at least as generous, either as regards the amount of the pension or as regards the circumstances in which it shall be paid, as it would have been before the alteration;

(b) in relation to a member who is an active member of the scheme immediately before the alteration takes effect, the requirement in sub-paragraph (a) of this paragraph shall be deemed to be satisfied if the relevant survivor’s post-1997 pension which the scheme would provide in respect of the member if the member left pensionable service immediately after the alteration is at least as generous as the relevant survivor’s post-1997 pension which the scheme would have provided in respect of the member had the member left service immediately before the alteration.

(2ZC) In paragraph (2ZB)(b) “active member” means a person who is in pensionable service under the scheme.”.

(1)

S.R. 1996 No. 493; relevant amending provisions are S.R. 1997 No. 160, S.R. 1999 No. 486 and S.R. 2012 Nos. 120 and 124

(2)

Paragraphs (1) and (2) were substituted by paragraph 5(8) of the Schedule to S.R. 1997 No. 160 and paragraph (1) was amended by regulation 6(13)(a) of S.R. 2012 No. 120

(3)

The definition of “section 5(2B) rights” was substituted by paragraph 5(2) of the Schedule to S.R. 1997 No. 160 and amended by regulation 4(2)(b) of S.R. 1999 No. 486 and Article 12(2)(b) of S.R. 2012 No. 124

(4)

Section 5(2B) was substituted by Article 133(3) of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 38(2) of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671)

(5)

Section 8B was inserted by Article 133(5) of the Pensions (Northern Ireland) Order 1995 and amended by regulation 2 of S.R. 1997 No. 162, paragraph 4 of Schedule 1 to S.R. 2005 No. 433, paragraph 33 of Schedule 1 to the Pensions Act (Northern Ireland) 2008 and paragraph 9 of Schedule 7 to the Pensions (No. 2) Act (Northern Ireland) 2008

(6)

Articles 67 to 67I were substituted for Article 67 by Article 239 of the Pensions (Northern Ireland) Order 2005 and Article 67D was amended by paragraph 5 of Schedule 5 to the Pensions Act (Northern Ireland) 2008