Amendment of the Pension Sharing (Pension Credit Benefit) Regulations N.I.

7.  For regulation 32 of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000 M1 (increase of relevant pension) substitute—

“Increase of relevant pension

32.— (1) Subject to regulations 33 and 34, a relevant pension shall be increased each year by either—

(a) the appropriate percentage, or

(b) where the rules of an occupational pension scheme require the relevant pension to be increased at intervals of not more than 12 months, the relevant percentage.

(2) A relevant pension shall not be increased under paragraph (1) if, under the rules of the occupational pension scheme, it is for the time being increased, and since the relevant date has always been increased, at intervals of not more than 12 months by at least—

(a) the percentage increase in the retail prices index for the reference period, being a period determined, in relation to each periodic increase, under the rules of the scheme, or

(b) if lower, the default percentage for that period.

(3) In paragraph (2) “the relevant date” means—

(a) 1st January 2011 or, if later, the date on which the relevant pension became a pension in payment, or

(b) if the relevant pension was transferred to the occupational pension scheme from another occupational pension scheme as a pension in payment after 1st January 2011, the date of the transfer.

(4) If the relevant pension was transferred to the occupational pension scheme as mentioned in paragraph (3)(b), paragraph (2) does not apply to the relevant pension unless, immediately before the transfer, paragraph (2) (read with this paragraph if relevant) applied to the relevant pension by reference to the scheme from which it was transferred.

(5) In this regulation the default percentage for a period is the percentage for that period which corresponds to—

(a) 5 per cent. per annum in a case where—

(i) the relevant pension is in payment before 6th^{April 2005, or}

(ii) the relevant pension is not in payment before 6th April 2005 but the entitlement to the relevant pension credit arose before that day;

(b) 2.5 per cent. per annum in a case where the entitlement to the relevant pension credit arises on or after 6th April 2005.

(6) This regulation does not apply to a relevant pension provided to give effect to eligible pension credit rights of a member under a qualifying occupational pension scheme which—

(a) is a cash balance benefit, and

(b) first comes into payment on or after 6th April 2013.

(7) In this regulation—

“appropriate percentage” means—

(a)

in a case where entitlement to the relevant pension credit arose before 6th April 2005, the higher revaluation percentage, and

(b)

in a case where entitlement to the relevant pension credit arose on or after 6th April 2005, the lower revaluation percentage,

for the latest revaluation period specified in the order under paragraph 2 of Schedule 2 M2 to the Act (methods of revaluing accrued pension benefits) which is in operation at the time of the increase (expressions used in this definition having the same meaning as in that paragraph);

“cash balance benefit” has the same meaning as in Article 51ZB M3 ;

“consumer prices index” means—

(a)

the general index of consumer prices (for all items) published by the Statistics Board M4 , or

(b)

where that index is not published for a month, any substituted index or figures published by the Board;

“relevant percentage” means—

(a)

the percentage increase in the consumer prices index for the reference period, being a period determined, in relation to each periodic increase, under the rules of the scheme, or

(b)

if lower, the default percentage for that period;

“retail prices index” means—

(a)

the general index of retail prices (for all items) published by the Statistics Board, or

(b)

where that index is not published for a month, any substituted index or figures published by the Board.”.

Marginal Citations

M1 S.R. 2000 No. 146; regulation 32 was amended by regulation 15 of S.R. 2005 No. 170

M2 Schedule 2 was amended by paragraphs 1 to 3 of Schedule 1 to the Pensions (No. 2) Act (Northern Ireland) 2008 and section 20(4) to (6) of the Pensions Act (Northern Ireland) 2012; see also section 80 as amended by Part III of Schedule 5 to the Pensions (Northern Ireland) Order 1995, Article 258 of the Pensions (Northern Ireland) Order 2005, section 20(1) to (3) of the Pensions Act (Northern Ireland) 2012 and paragraph 13 of the Schedule to S.R. 2005 No. 434

M3 Article 51ZB was inserted by section 21(4) of the Pensions Act (Northern Ireland) 2012

M4 The Statistics Board was established by section 1 of the Statistics and Registration Service Act 2007 (c. 18)