The Public Service (Civil Servants and Others) Pensions (Remediable Service) Regulations (Northern Ireland) 2023 No. 141

PART 4 N.I. Provision about divorce and dissolution arrangements

CHAPTER 1 N.I. Pension credit and pension debit members

SECTION 2 N.I. Pension sharing orders: information provided before 1st October 2023

Application and interpretation of Section 2 N.I.

17.—(1) This Section applies where, before 1st October 2023, the scheme manager has provided information for the purpose of determining amounts under Article 26 of WRP(NI)O 1999 in respect of a remedy member’s remediable service.

(2) In this Section—

“alternative amount” has the meaning given in regulation 18;

“alternative reduction amount” and “alternative reduction amounts” have the meanings given in, respectively, regulation 21(3) and (4);

“alternative scheme”, in relation to a relevant pension sharing order that does not relate to mixed service(1) means—

(a)

where the initial scheme is the PCSPS(NI), alpha;

(b)

where the initial scheme is alpha, the PCSPS(NI);

“C’s pension account” has the meaning given in regulation 20(4);

“initial amount” means the total amount determined for the purposes of the relevant pension sharing order under Article 26(2) and (3) of WRP(NI)O 1999 in relation to D’s remediable shareable rights;

“initial reduction amount” means the amount by which D’s remediable relevant benefits were reduced pursuant to the relevant pension sharing order;

“initial scheme”, in relation to a relevant pension sharing order that does not relate to mixed service, means the civil service scheme in respect of which an initial amount or an initial reduction amount was determined;

“remediable credit adjustment” has the meaning given in regulation 19(2).

(3) For the purposes of this Section, a relevant pension sharing order relates to mixed service if it specifies an appropriate amount in accordance with Article 26(2) or (3) of WRP(NI)O 1999 by reference to the value of remediable relevant benefits to which D is entitled by virtue of remediable shareable rights secured in both the PCSPS(NI) and alpha (and, accordingly, a relevant pension sharing order does not relate to mixed service if it specifies an appropriate amount by reference to remediable shareable rights secured in only one of those schemes).

Commencement Information

I1 Reg. 17 in operation at 1.10.2023, see reg. 1(b)

Meaning of “alternative amount” N.I.

18.—(1) “ Alternative amount” means—

(a) in relation to a relevant pension order that does not relate to mixed service, where an initial amount was determined under —

(i) Article 26(2) of WRP(NI)O 1999 in relation to a percentage value to be transferred from the initial scheme, the amount that would have been determined applying the relevant percentage value under that section on the valuation day if the remediable relevant benefits had been secured in the alternative scheme;

(ii) Article 26(3) of WRP(NI)O 1999 in relation to an amount to be transferred from the initial scheme, the amount equal to the implied percentage of the cash equivalent of the remediable relevant benefits on the valuation day determined as if all of those benefits had been secured in the alternative scheme;

(b) in relation to a relevant pension order that relates to mixed service, the greater of—

(i) the PCSPS(NI) amount, and

(ii) the alpha amount.

(2) In paragraph (1)(b)—

“the PCSPS(NI) amount” means, where the initial amount was—

(a)

determined under Article 26(2) of WRP(NI)O 1999 in relation to a percentage value to be transferred from both the PCSPS(NI) and alpha, the amount that would have been determined applying—

(i)

in relation to pre-taper date remediable relevant benefits, the PCSPS(NI) percentage value, and

(ii)

in relation to post-taper date remediable relevant benefits, the alpha percentage value,

under that Article on the valuation day if all of the remediable relevant benefits had been secured in the PCSPS(NI);

(b)

determined under Article 26(3) of WRP(NI)O 1999 in relation to an amount to be transferred from both the PCSPS(NI) and alpha, the amount equal to the implied percentage of the cash equivalent of the remediable relevant benefits on the valuation day determined as if all of those benefits had been secured in the PCSPS(NI);

“the alpha amount” means, where the initial amount was—

(a)

determined under Article 26(2) of WRP(NI)O 1999 in relation to a percentage value to be transferred from both the PCSPS(NI) and alpha, the amount that would have been determined applying—

(i)

in relation to pre-taper date remediable relevant benefits, the PCSPS(NI) percentage value, and

(ii)

in relation to post-taper date remediable relevant benefits, the alpha percentage value,

under that Article on the valuation day if all of the remediable relevant benefits had been secured in alpha;

(b)

determined under Article 26(3) of WRP(NI)O 1999 in relation to an amount to be transferred from both the PCSPS(NI) and alpha, the amount equal to the implied percentage of the cash equivalent of the remediable relevant benefits on the valuation day determined as if all of those benefits had been secured in alpha.

(3) In this regulation—

“alpha percentage value” means the percentage value specified in a relevant pension sharing order in relation to alpha for the purpose of determining an amount under Article 26(2) of WRP(NI)O 1999;

“implied percentage”, in relation to the value of benefits under a civil service scheme, means the percentage that an initial amount determined under Article 26(3) of WRP(NI)O 1999 represented of the cash equivalent of the remediable relevant benefits under that scheme on valuation day;

“PCSPS(NI) percentage value” means the percentage value specified in a relevant pension sharing order in relation to the PCSPS(NI) for the purpose of determining an amount under Article 26(2) of WRP(NI)O 1999;

“post-taper date remediable relevant benefits” means remediable relevant benefits to which D is entitled by virtue of remediable shareable rights secured by virtue of D’s remediable service after D’s tapered protection closing date;

“pre-taper date remediable relevant benefits” means remediable relevant benefits to which D is entitled by virtue of remediable shareable rights secured by virtue of D’s remediable service on or before D’s tapered protection closing date;

“relevant percentage value” means—

(a)

where the relevant pension sharing order specifies a percentage value in relation to only the initial scheme for the purpose of determining an amount under Article 26(2) of WRP(NI)O 1999, that percentage value;

(b)

otherwise, the percentage value that is specified in relation to the alternative scheme;

“tapered protection closing date”, in relation to D, has the meaning given in paragraph 3 of Schedule 2 to the 2014 Regulations.

Commencement Information

I2 Reg. 18 in operation at 1.10.2023, see reg. 1(b)

Information provided before 1st October 2023: calculating a remediable credit adjustment N.I.

19.—(1) The scheme manager must determine the alternative amount in relation to C’s pension credit—

(a) as soon as reasonably practicable after 30th September 2023, and

(b) having consulted the scheme actuary.

(2) Where—

(a) the alternative amount is greater than the initial amount, or

(b) the relevant pension sharing order relates to mixed service and the alternative amount is lower than the initial amount,

C’s pension account is subject to an adjustment (a “remediable credit adjustment”) equal to the difference.

(3) The scheme manager must, by the end of 30th September 2024, provide C with a statement setting out—

(a) the alternative amount,

(b) any remediable credit adjustment, and

(c) where regulation 20(4)(b) applies in relation to C, an explanation of the request that may be made in accordance with regulation 20(5) and the consequences of making, or not making, such a request.

Commencement Information

I3 Reg. 19 in operation at 1.10.2023, see reg. 1(b)

Information provided before 1st October 2023: applying a remediable credit adjustment N.I.

20.—(1) This regulation applies where C’s pension account is subject to a remediable credit adjustment.

(2) The scheme manager must adjust C’s pension account by an amount equal to the remediable credit adjustment.

(3) An adjustment made under paragraph (2) has effect as if it had been made on the transfer day.

(4) “C’s pension account” means, where C has, in relation to the relevant pension sharing order—

(a) a pension credit in only one civil service scheme, C’s pension account under that scheme;

(b) a pension credit in both civil service schemes—

(i) the pension account identified by C in a request made in accordance with paragraph (5), or

(ii) if no request is made in accordance with paragraph (5), C’s pension account under the PCSPS(NI).

(5) A request is made in accordance with this paragraph if—

(a) it is made in writing to the scheme manager for the purpose of paragraph (4)(b)(i),

(b) it is in a form determined by the scheme manager,

(c) it unambiguously identifies only one of C’s pension accounts, and

(d) it is received by the scheme manager by—

(i) the end of the day 6 months after the date the statement required by regulation 19(3) was provided to C, or

(ii) the end of such later day that the scheme manager considers reasonable in all the circumstances.

(6) A request made in accordance with paragraph (5) is irrevocable.

(7) Section 14(3) to (6) of PSPJOA 2022 applies in relation to C as it applies in relation to a member described in section 14(1) (“M”) as if—

(a) a reference to M’s remediable service in an employment or office were a reference to C’s pension credit;

(b) a reference to any effect of sections 2(1) and 6(4) and (5) were a reference to the effect of this regulation;

(c) the term “operative time” means the time at which the adjustment mentioned in paragraph (2) is made (disregarding paragraph (3)).

Commencement Information

I4 Reg. 20 in operation at 1.10.2023, see reg. 1(b)

Information provided before 1st October 2023: recalculating D’s reduction of benefit N.I.

21.—(1) This regulation applies where D’s remediable relevant benefits have been reduced by an initial reduction amount.

(2) The scheme manager must determine the alternative reduction amount or, where the relevant pension sharing relates to mixed service, the alternative reduction amounts in relation to D’s remediable relevant benefits—

(a) as soon as reasonably practicable after 30th September 2023, and

(b) having consulted the scheme actuary.

(3) Where the relevant pension sharing order does not relate to mixed service, the “alternative reduction amount” is such amount as the scheme manager considers appropriate having regard to—

(a) the cash equivalent of the remediable relevant benefits on the valuation day as if they had been secured in the alternative scheme,

(b) the percentage value or the amount to be transferred specified in the relevant pension sharing order, and

(c) the provisions of Articles 26 and 28 of WRP(NI)O 1999.

(4) Where the pension sharing order relates to mixed service, the “alternative reduction amounts” are such amounts as the scheme manager considers appropriate having regard to—

(a) the cash equivalent of the remediable relevant benefits on the valuation day as if they had all been secured in—

(i) the PCSPS(NI), and separately

(ii) alpha, and

(b) the matters mentioned in paragraph (3)(b) and (c).

Commencement Information

I5 Reg. 21 in operation at 1.10.2023, see reg. 1(b)

(1)

See section 19(6) for the meaning of “mixed service”.