The Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014

Amendment of the Pension Protection Fund (Compensation) Regulations N.I.

59.—(1) The Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005 are amended in accordance with paragraphs (2) to (4).

(2) In Part 5 (revaluation) before regulation 13 (manner of determining the revaluation amount) insert—

“Active members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009

12A.— (1) This regulation applies for the purposes of paragraph 12(3A)(b) of Schedule 6 to the Order in the case of active members who have not attained normal pension age at the assessment date.

(2) Where this regulation applies, in any case where it is unclear whether any particular pensionable service (either actual or notional) falls, or is to be treated for the purposes of the scheme as falling, on or after 6thApril 2009, the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of paragraph 12(3)(b) of Schedule 6 to the Order as having occurred on or after 6thApril 2009.”.

(3) After regulation 13 insert—

“Deferred members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009

13ZA.— (1) This regulation applies where it is unclear whether—

(a) pensionable service is attributable to periods before, or on or after 6th April 2009, in the case of deferred members and pension credit members who have not attained normal pension age or normal benefit age at the assessment date;

(b) any particular pensionable service (whether actual or notional) falls, or is to be treated as falling, for the purposes of the scheme, on or after 6thApril 2009, or

(c) pension credit rights are to be treated for the purposes of the scheme as derived from rights attributable to pensionable service of the transferor (whether actual or notional) falling or to be treated as falling on or after 6thApril 2009.

(2) Where this regulation applies, the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of paragraph 17(3)(b) M1 of Schedule 6 to the Order as having occurred on or after 6thApril 2009.”.

(4) In regulation 23 M2 (cash balance schemes: modification of paragraphs 5, 15 and 19 of Schedule 6)—

(a) in the heading for “paragraphs 5, 15 and 19” substitute “ paragraphs 3, 5, 8, 10, 11, 14, 15, 19, 22 and 37 ”;

(b) in paragraph (1) omit the words from “, that is to say” to the end;

(c) for paragraph (2) substitute—

“(2) In their application to cash balance benefits or to a pension derived from cash balance benefits, the provisions of Schedule 6 to the Order have effect with the following modifications—

(a) paragraph 3 (pensions in payment at assessment date) has effect as if—

(i) in sub-paragraph (3) after “The annual rate of the periodic compensation is” there were inserted “ subject to sub-paragraph (3A) ”, and

(ii) after sub-paragraph (3) there were inserted—

“(3A) In a case where—

(a) the pension is derived from money purchase benefits or cash balance benefits;

(b) there is no requirement or discretion under the admissible rules to increase the pension, and

(c) the pension is not required to be increased in accordance with Article 51 of the 1995 Order,

the annual rate of the periodic compensation is the protected pension rate.”;

(iii) in sub-paragraph (5) for “sub-paragraph (3)” there were substituted “ sub-paragraphs (3) and (3A) ”.

(b) paragraph 5 (pension benefits postponed at assessment date) has effect as if—

(i) in sub-paragraph (3) after “The annual rate of the periodic compensation is” there were inserted “ subject to sub-paragraphs (3A) and (3B) ”;

(ii) after sub-paragraph (3) there were inserted—

“(3A) In a case where—

(a) the postponed pension is derived from money purchase benefits or cash balance benefits;

(b) there is no requirement or discretion under the admissible rules to increase the pension, and

(c) the pension is not required to be increased in accordance with Article 51 of the 1995 Order,

the annual rate of the periodic compensation is to be determined in accordance with sub-paragraph (3B).

(3B) In a case falling within sub-paragraph (3A) the annual rate of the periodic compensation is—

(a) where the commencement of periodic compensation under this paragraph has not been postponed for any period by virtue of paragraph 25A, 100% of the protected pension rate, or

(b) where the commencement of periodic compensation has been so postponed, 100% of the aggregate of the protected pension rate and the amount of the actuarial increase under paragraph 25A.”;

(iii) in sub-paragraph (4) for “In sub-paragraph (3)” there were substituted “ In sub-paragraphs (3) and (3B) ”;

(iv) after sub-paragraph (4) there were inserted—

“(4A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (4) what would have been the annual rate of the pension, the “protected pension rate” shall mean what the Board may, having regard to the admissible rules, determine would have been the annual rate of pension if the postponement of pension had ceased immediately before the assessment date.”;

(v) in sub-paragraph (5) after “(4)” there were inserted “ or (4A) ”;

(c) paragraph 8 (active members over normal pension age at assessment date) has effect as if—

(i) for sub-paragraph (5) there were substituted—

“(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such initial annual rate of pension to which the member would have been entitled under the admissible rules when the pensionable service relating to the pension ended.

(5A) In any case where the Board is satisfied that it is not possible to identify the initial annual rate of pension on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”;

(ii) sub-paragraphs (6) and (7) were omitted;

(d) paragraph 10 has effect as if—

(i) for sub-paragraph (4) there were substituted—

“(4) Subject to sub-paragraph (4A), the accrued amount means an amount equal to such amount of scheme lump sum to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the scheme lump sum ended.

(4A) In any case where the Board is satisfied that it is not possible to identify the amount of the scheme lump sum on the basis referred to in sub-paragraph (4), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”;

(ii) sub-paragraphs (5), (6) and (7) were omitted;

(e) paragraph 11 (active members who have not attained normal pension age at assessment date) has effect as if—

(i) for sub-paragraph (5) there were substituted—

“(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such initial annual rate of pension to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the pension ended.

(5A) In any case where the Board is satisfied that it is not possible to identify the initial annual rate of pension on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”;

(ii) sub-paragraphs (6) and (7) were omitted;

(f) paragraph 14 has effect as if—

(i) for sub-paragraph (5) there were substituted—

“(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such scheme lump sum to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the scheme lump sum ended.

(5A) In any case where the Board is satisfied that it is not possible to identify the amount of the scheme lump sum on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”;

(ii) sub-paragraphs (6) and (7) were omitted;

(g) paragraph 15 (deferred members who have not attained normal pension age at assessment date) has effect as if—

(i) at the beginning of sub-paragraph (5) there were inserted “Subject to sub-paragraph (5A)”;

(ii) after sub-paragraph (5) there were inserted—

“(5A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (5) what would have been the initial annual rate of the pension, the accrued amount shall mean an amount equal to such initial annual rate as the Board may, having regard to the admissible rules and in accordance with actuarial factors published by the Board, determine the deferred member would have been entitled to had normal pension age been the actual age attained by the deferred member when the pensionable service relating to the lump sum ended.”;

(h) paragraph 19 has effect as if—

(i) at the beginning of sub-paragraph (5) there were inserted “Subject to sub-paragraph (5A)”;

(ii) after sub-paragraph (5) there were inserted—

“(5A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (5) what would have been the amount of the scheme lump sum, the accrued amount shall mean an amount equal to such scheme lump sum amount as the Board may, having regard to the admissible rules and in accordance with actuarial factors published by the Board, determine the deferred member would have been entitled to had normal pension age been the actual age attained by the deferred member when the pensionable service relating to the lump sum ended.”;

(i) paragraph 22 (survivors who do not meet conditions for scheme benefits at assessment date) has effect as if—

(i) at the beginning of sub-paragraph (3)(a) there were inserted “subject to sub-paragraph (3A)”;

(ii) after sub-paragraph (3) there were inserted—

“(3A) In any case where the Board is satisfied that it is not possible to identify the initial rate of pension mentioned in sub-paragraph (3)(a), the Board may, having regard to the admissible rules, determine the initial rate of the compensation in accordance with actuarial factors published by the Board.”;

(j) paragraph 37(1) has effect as if after “In this Schedule—” there were inserted—

““cash balance benefit” has the meaning given by regulation 2 of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014;”.”;

(d) after paragraph (2) insert—

“(3) In this regulation—

“cash balance benefit” has the meaning given by regulation 2 of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014;

“cash balance scheme” means a scheme which provides cash balance benefits, whether or not the scheme also provides other benefits.”.

Marginal Citations

M1 Paragraph 17(3)(b) was substituted by paragraph 6(2) of Schedule 1 to the Pensions (No. 2) Act (Northern Ireland) 2008

M2 Regulation 23 was amended by regulation 4(3) of S.R. 2010 No. 80