The Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2013

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2013.

(2) Subject to paragraph (3), these Regulations shall come into operation on 30th April 2013.

(3) Regulation 7(6) shall come into operation—

(a) in respect of a surviving dependant—

(i) who is receiving periodic compensation on 29th April 2013, and

(ii) is on a qualifying course on that date,

on the date that person leaves that qualifying course, and

(b) in respect of any other surviving dependant, on 30th April 2013.

(4) In this regulation “qualifying course” and “surviving dependant” have the meanings given in regulation 1(2) of the Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005(1).

(5) The Interpretation Act (Northern Ireland) 1954(2) shall apply to these Regulations as it applies to an Act of the Assembly.

Amendment of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations

2.  In regulation 4(2) of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations (Northern Ireland) 1997(3) (exclusions from jurisdiction)—

(a) omit sub-paragraph (a);

(b) at the end of sub-paragraph (e) insert “and”;

(c) omit sub-paragraph (f);

(d) for the words after sub-paragraph (g) substitute—

“or the requirements under Part IV (scheme funding) and Articles 218 to 220 (requirements for member-nominated trustees and directors) of the Pensions (Northern Ireland) Order 2005.”.

Amendment of the Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations

3.—(1) The Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations (Northern Ireland) 2005(4) are amended in accordance with paragraphs (2) to (4).

(2) In regulation 3 (application and effect)—

(a) in paragraph (1)—

(i) after sub-paragraph (c) insert—

“(ca) Article 127(5B)(b) and (c)(5) (Board’s obligation to obtain valuation of assets and protected liabilities);”;

(ii) in sub-paragraph (e) for “Article 136(9)(a)” substitute “Article 136(2B)(6), (9)(a), (10A)”;

(b) in paragraph (4)—

(i) in sub-paragraph (f) after “Article 127(2)”(7) insert “, (2A)(a), (5A)(a) and (b)”;

(ii) after sub-paragraph (f) insert—

“(fa) Article 127A(1)(b) (determinations under Article 127);”;

(iii) in sub-paragraph (i) for “Article 136(2) and (5)” substitute “Article 136(2), (2A), (2B), (5)(8) and (10A)”;

(iv) in sub-paragraph (l) for “Article 142(1) and (3)” substitute “Article 142(1), (3) and (3A)(9)”.

(3) In regulation 8 (reconsideration) for paragraph (2) substitute—

“(2) Article 136 (duty to assume responsibility following reconsideration) applies as if—

(a) in paragraph (2B), for “protected liabilities” there were substituted “protected liabilities of the unsecured part”, and

(b) in paragraph (9)(b), for “liabilities of the scheme” there were substituted “liabilities of the unsecured part”.”.

(4) In regulation 10(1) (assumption of responsibility)—

(a) before sub-paragraph (a) insert—

“(za) in paragraph (3)(10) for “determination made or valuation obtained under Article 127(2)” there were substituted “valuation obtained under Article 127”;

(zb) in paragraph (4)(11) “determination made or” were omitted;”;

(b) in sub-paragraph (b)—

(i) in added paragraph (8) after “as they apply in relation to a valuation” insert “ and not a determination”;

(ii) in added paragraph (9) for “paragraphs (5) and (11)(b)” substitute “paragraphs (5), (5A)(b), (5B)(b) and (11)(b)”.

Amendment of the Pension Protection Fund (Provision of Information) Regulations

4.  In the Table in paragraph 1(2) of Schedule 1 to the Pension Protection Fund (Provision of Information) Regulations (Northern Ireland) 2005(12) (information to be provided by the Board) after the seventh entry insert—

“Any member who makes a request in writing to the Board for it to provide information about any entitlement the member may have to postpone to a date specified in the request— (a) the periodic compensation; or (b) any payment of lump sum compensation, under paragraph 25A of Schedule 6 to the Order (postponement of compensation).	Details of any entitlement the member may have to postpone compensation and a forecast to the date specified in the request, and determined in accordance with the pension compensation provisions, of— (a) the periodic compensation; or (b) any lump sum compensation payment, payable to the member under the pension compensation provisions.	The period of 28 days beginning on the day on which the Board receives the request.
Any member who has elected to postpone— (a) the commencement of the periodic compensation; or (b) payment of lump sum compensation, under paragraph 25A of Schedule 6 to the Order.	1. A forecast, to the date compensation ceases to be postponed, determined in accordance with the pension compensation provisions, of the periodic compensation and of any lump sum compensation, payable to the member under the pension compensation provisions. 2. Details of any options to commute which may be exercised by the member in relation to that compensation in accordance with paragraph 24 of Schedule 6 to the Order and forecasts, to the date compensation ceases to be postponed, determined in accordance with the pension compensation provisions, of— (a) the lump sum to be paid to that member under any such options; and (b) the reduced level of annual compensation payments which that member would receive if that member exercised any such option.	The period of six months beginning 12 months before the day on which— (a) commencement of the periodic compensation ceases to be postponed; or (b) payment of lump sum compensation ceases to be postponed.”.

Amendment of the Pension Protection Fund (Valuation) Regulations

5.—(1) The Pension Protection Fund (Valuation) Regulations (Northern Ireland) 2005(13) are amended in accordance with paragraphs (2) to (5).

(2) In regulation 1(2) (interpretation)—

(a) after the definition of “Article 136 determination”(14) insert—

““Article 136(9) valuation” means a valuation obtained under Article 136(9) of the Order;”;

(b) after the definition of “Article 142 determination” insert—

““Article 142 valuation” means a valuation obtained under Article 142(3)(b)(15) of the Order;”.

(3) In regulation 6(1)(a) and (b)(16) (valuation of protected liabilities) for “market rate” substitute “best value rate available in the market as estimated by the Board”.

(4) In regulation 7(4)(c)(17) (alternative valuation of assets and protected liabilities in specific cases)—

(a) in head (i) at the beginning insert “either none of the amount due or only”;

(b) in head (ii)—

(i) for “no further” substitute “some or all of the”;

(ii) after “notice or direction will” insert “not”.

(5) In regulation 7A(18) (application of these regulations to applications for reconsideration and by closed schemes)—

(a) for paragraph (3) substitute—

“(3) Regulations 3 to 7 apply in relation to an Article 136(9) valuation, an Article 136(10A) valuation and an Article 142 valuation as they apply in relation to an Article 127 valuation.”;

(b) in paragraph (4) for “to Article 136(10A) valuations” substitute “to an Article 136(9) valuation, an Article 136(10A) valuation or an Article 142 valuation”.

Amendment of the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations

6.  In regulation 3(1)(a) of the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations (Northern Ireland) 2005(19) (time for making an application for a review decision) for “two months” substitute “28 days”.

Amendment of the Pension Protection Fund (Compensation) Regulations

7.—(1) The Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005(20) are amended in accordance with paragraphs (2) to (8).

(2) In regulation 1(2) (interpretation) after the definition of “the assessment date”(21) insert—

““commutation limit” means the amount specified in paragraph 7(4)(22) of Schedule 29 to the 2004 Act(23) (trivial commutation lump sum);”.

(3) In regulation 2 (circumstances where a person shall be entitled to early payment of compensation) omit paragraph (5).

(4) After Part 2 (early payment of compensation) insert—

“PART 2A Postponement of compensation

Postponing compensation

2A.— (1) A person who becomes entitled to periodic compensation under paragraph 5(24), 8(25), 11(26) or 15(27) of Schedule 6, or by virtue of paragraph 21(28) or 21A of Schedule 6, may elect to postpone the commencement of periodic compensation under that paragraph—

(a) in any of the circumstances prescribed in regulation 2B, and

(b) subject to all of the conditions prescribed in regulation 2C.

(2) A person who becomes entitled to lump sum compensation under paragraph 7(29), 10(30), 14(31) or 19(32) of Schedule 6, or by virtue of paragraph 21 or 21A of Schedule 6, may elect to postpone the payment of lump sum compensation under that paragraph—

(a) in any of the circumstances prescribed in regulation 2B, and

(b) subject to all of the conditions prescribed in regulation 2C.

Circumstances in which periodic and lump sum compensation can be postponed

2B.— (1) The circumstances referred to in regulation 2A(1)(a) and (2)(a) are as follows.

(2) The first circumstance is where the person has—

(a) not attained normal pension age, or

(b) not attained normal benefit age,

on the date when an assessment period begins in relation to the scheme.

(3) The second circumstance is where the person—

(a) has not received any pension (including any lump sum entitlement) under the scheme;

(b) is an active member, and

(c) has attained normal pension age,

on the date when an assessment period begins in relation to the scheme.

(4) The third circumstance is where—

(a) the person has had his pension payment postponed, and

(b) the payment of that pension remains postponed,

on the date of the transfer notice issued under Article 144(33) to trustees or managers of the scheme.

Conditions subject to which periodic and lump sum compensation can be postponed

2C.— (1) The conditions referred to in regulation 2A(1)(b) and (2)(b) are as follows.

(2) The first condition is that—

(a) where the person elects to postpone periodic compensation in respect of a benefit under the scheme, the person must also elect to postpone the payment of any lump sum compensation to which the person is entitled in respect of that scheme, or

(b) where the person elects to postpone lump sum compensation in respect of a benefit under the scheme, the person must also elect to postpone the payment of any periodic compensation to which the person is entitled in respect of that scheme.

(3) The second condition is that the person must not have received, or have received in respect of any benefit under the scheme—

(a) his pension;

(b) any periodic compensation, or

(c) any lump sum compensation.

(4) The third condition is that for each election to postpone periodic compensation or lump sum compensation, the person has sent written notice to the Board—

(a) in accordance with paragraph (5);

(b) that the person wishes to postpone the commencement of periodic compensation or payment of lump sum compensation, and

(c) before the commencement of that periodic compensation or payment of lump sum compensation.

(5) The notice referred to in paragraph (4) must include—

(a) the person’s name, address, date of birth and national insurance number;

(b) the name of the scheme for which the Board has assumed responsibility, and

(c) the date on which the person would like the commencement of periodic compensation or payment of lump sum compensation to cease to be postponed, which must be a date before the person attains the age of 75.

Date on which postponement ceases

2D.— (1) Periodic compensation and lump sum compensation ceases to be postponed on the date elected under regulation 2C(5)(c) unless the person has further elected an earlier date or a later date (which must be a date before the person attains the age of 75).

(2) A person who wishes to make a further election under this regulation must send a written notice to the Board before the date notified (or most recently notified) under regulation 2C(5)(c).

(3) The notice referred to in paragraph (2) must include the information set out in regulation 2C(5).”.

(5) In regulation 4(3) (compensation for surviving dependants)—

(a) in sub-paragraph (a)—

(i) omit “or unborn child”;

(ii) for “demonstrating” substitute “or other evidence demonstrating to the satisfaction of the Board”;

(b) at the end of sub-paragraph (b) omit “or”;

(c) after sub-paragraph (b) insert—

“(ba) in the case of a child of the member who, at the date of the member’s death, was being carried by the mother and had not been born, evidence demonstrating to the satisfaction of the Board that the child—

(i) is the child of the member, and

(ii) would have been a dependant of the member had the child been born before the date of the member’s death, or”.

(6) In regulation 7(4)(34) (period of payment)—

(a) for “Where” substitute “This paragraph applies where”;

(b) in sub-paragraph (a) for “later” substitute “earlier”.

(7) In regulation 17(2)(b)(35) (commutation of periodic compensation) for head (ii) substitute—

“(ii) payment of periodic compensation commences,”.

(8) In regulation 18(36) (circumstances in which the portion of compensation to be commuted may exceed 25 per cent.) omit paragraph (4).

Amendment of the Occupational Pension Schemes (Employer Debt) Regulations

8.  In paragraph 4(6)(i) of Schedule 1A to the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005(37) (withdrawal arrangements and approved withdrawal arrangements) for ““Article 127 valuations” and provisions which relate to Article 127 valuations” substitute ““Article 127 valuations” and “Article 127 determinations” and provisions which relate to Article 127 valuations and Article 127 determinations”.

Amendment of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations

9.—(1) The Pension Protection Fund (General and Miscellaneous Amendments) Regulations (Northern Ireland) 2006(38) are amended in accordance with paragraphs (2) to (5).

(2) In regulation 1(2) (interpretation) after the definition of “PPF compensation” insert—

““PPF money purchase lump sum” means a payment of a lump sum which is made by the Board in respect of entitlement or accrued rights under the scheme rules to money purchase benefits;”.

(3) In regulation 7(1)(39) (manner of discharge of liabilities in respect of money purchase benefits)—

(a) in sub-paragraph (d) for “policies, or” substitute “policies;”;

(b) in sub-paragraph (e) for “payment.” substitute “payment, or”;

(c) after sub-paragraph (e) add—

“(f) in the circumstances described in regulation 9A, a PPF money purchase lump sum.”.

(4) In regulation 8(3) (further provision for discharge of liabilities in respect of money purchase benefits) after “trivial commutation” insert “and regulation 9A in relation to PPF money purchase lump sums”.

(5) After regulation 9 (trivial commutation) insert—

“PPF money purchase lump sums

9A.— (1) The Board may discharge its liabilities in respect of money purchase benefits transferred to it under Article 145 of the Order (effect of Board assuming responsibility for a scheme) by way of a PPF money purchase lump sum where the conditions in the following paragraphs are met.

(2) The first condition is that the member is aged 60 or over.

(3) The second condition is that the value of the member’s entitlements to money purchase benefits under the pension scheme does not exceed £2,000.

(4) The third condition is that the payment extinguishes the member’s entitlement to money purchase benefits under the pension scheme.

(5) The fourth condition is that the payment is made within a reasonable time from the date the Board notifies the member under regulation 8(1).”.

Amendment of the Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc.) Regulations

10.—(1) The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc.) Regulations (Northern Ireland) 2011(40) are amended in accordance with paragraphs (2) to (7).

(2) In regulation 1(3) (interpretation) for “paragraph (a)” substitute “sub-paragraph (a)”.

(3) In regulation 14(1)(c) (notification of discharge of liability) for “paragraphs (5)(e))” substitute “paragraph (5)(e))”.

(4) In regulation 20(3)(b) (compensation payable in the case of relevant partners and surviving dependants) for “paragraph (a)(i)” substitute “sub-paragraph (a)(i)”.

(5) In regulation 26 (circumstances in which the portion of compensation to be commuted may exceed 25%)—

(a) in paragraph (7)(b) for “would be” substitute “is”;

(b) in paragraph (8) in the definition of “tax year” for “as section 279(1) of the Finance Act (other definitions);” substitute “as in section 4(2), (3) and (4) of the Income Tax Act 2007(41) (income tax an annual tax);”.

(6) After Part 8 (early payment of periodic compensation) insert—

“PART 8A Postponement of compensation

Postponing compensation

28A.   A person who becomes entitled to periodic compensation under paragraph 4 or 6 of Schedule 4 (compensation payable to transferee) may elect to postpone the commencement of periodic compensation under that paragraph—

(a) in any of the circumstances prescribed in regulation 28B, and

(b) subject to all of the conditions prescribed in regulation 28C.

Circumstances in which periodic compensation can be postponed

28B.— (1) The circumstances referred to in regulation 28A(a) are as follows.

(2) The first circumstance is where the person has not attained pension compensation age on the transfer day.

(3) The second circumstance is where, on the transfer day, the person—

(a) has attained pension compensation age, and

(b) is not in receipt of periodic compensation in respect of the pension compensation credit.

Conditions subject to which periodic compensation can be postponed

28C.— (1) The conditions referred to in regulation 28A(b) are as follows.

(2) The first condition is that the person on and from the transfer day is not and has not been in receipt of any periodic compensation or lump sum compensation payment in respect of the pension compensation credit.

(3) The second condition is that for each election to postpone, the person must have sent a written notice to the Board in accordance with paragraph (4) that the person wishes to postpone periodic compensation, before the person receives payment in respect of the pension compensation credit.

(4) The notice referred to in paragraph (3) must include—

(a) the person’s name, address, date of birth and national insurance number;

(b) the name of the scheme for which the Board has assumed responsibility, and

(c) the date on which the person would like the commencement of periodic compensation to cease to be postponed, which must be a date before the person attains the age of 75.

Date on which postponement ceases

28D.— (1) Periodic compensation ceases to be postponed on the date elected in regulation 28C(4)(c) unless the person has further elected an earlier date or a later date (which must be a date before the person attains the age of 75).

(2) A person who wishes to make a further election under this regulation must send a written notice to the Board before the date notified (or most recently notified) under regulation 28C(4)(c).

(3) The notice referred to in paragraph (2) must include the information set out in regulation 28C(4).”.

(7) In the Table in paragraph 2 of the Schedule (information to be provided by the Board) after the fifth entry insert—

“Any pension compensation credit member who makes a request in writing to the Board for it to postpone to a date specified in the request, commencement of the periodic compensation under paragraph 16A(42) of Schedule 4.	A forecast to the date specified in the request, determined in accordance with Schedule 4, of the periodic compensation payable to the pension compensation credit member under Schedule 4.	The period of 28 days beginning on the day on which the Board receives the request.
Any pension compensation credit member who has elected to postpone the commencement of the periodic compensation under paragraph 16A of Schedule 4.	1. A forecast to the date the periodic compensation ceases to be postponed, determined in accordance with Schedule 4, of the periodic compensation payable to the pension compensation credit member under Schedule 4. 2. Details of any options to commute which may be exercised by the pension compensation credit member in relation to the periodic compensation in accordance with paragraph 9(43) of Schedule 4 and forecasts to the date the periodic compensation ceases to be postponed, determined in accordance with Schedule 4, of— (a) the lump sum to be paid to that member under any such options, and (b) the reduced level of annual compensation payments which that member would receive if that member exercised any such option.	The period of 6 months beginning 12 months before the day on which the commencement of the periodic compensation ceases to be postponed.”.

Revocation

11.  Paragraph 4 of Schedule 3 to the Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005(44) is revoked.

Sealed with the Official Seal of the Department for Social Development on 4th April 2013

(L.S.)

Anne McCleary

A senior officer of the Department for Social Development