Pension Schemes Act 2015 (c. 8)

SCHEDULES

SCHEDULE 4 E+W+S Rights to transfer benefits

PART 2 E+W+S Northern Ireland amendments

Pension Schemes (Northern Ireland) Act 1993 (c. 49) E+W+S

60 E+W+S After section 96 insert—

“96A Prohibition on excluding future accruals etc

Except as mentioned in sections 92(4) and 97G(4), a pension scheme may not contain rules that would have the effect of—

(a) preventing a member from exercising a right under this Chapter in relation to a category of benefits without also exercising a right under this Chapter or otherwise to require a transfer payment to be made in respect of another category of benefits, or

(b) preventing a member who exercises a right under this Chapter in relation to a category of benefits from accruing rights to benefits in another category.

96B Meaning of “scheme rules”: occupational pension schemes

(1) In this Chapter references to the scheme rules, in relation to a pension scheme, are references to—

(a) the rules of the scheme, except so far as overridden by a relevant legislative provision,

(b) the relevant legislative provisions, to the extent that they have effect in relation to the scheme and are not reflected in the rules of the scheme, and

(c) any provision which the rules of the scheme do not contain but which the scheme must contain if it is to conform with the requirements of Chapter 1 of Part 4.

(2) For the purposes of subsection (1)—

(a) “relevant legislative provision” means any provision contained in any of the following provisions—

(i) Schedule 5 to the Social Security (Northern Ireland) Order 1989;

(ii) Chapter 2 or 3 of Part 4 or regulations made under either of those Chapters;

(iii) this Part or regulations made under this Part;

(iv) Part 4A or regulations made under that Part;

(v) section 106(1);

(vi) Part 2 of the Pensions (Northern Ireland) Order 1995 or orders or regulations made or having effect as if made under that Part;

(vii) Article 28 of the Welfare Reform and Pensions (Northern Ireland) Order 1999;

(viii) any provision mentioned in Article 279(2) of the Pensions (Northern Ireland) Order 2005;

(ix) section 61 of the Pension Schemes Act 2015;

(x) regulations made under section 62 or 63 of the Pension Schemes Act 2015;

(b) a relevant legislative provision is to be taken to override any of the provisions of the scheme if, and only if, it does so by virtue of any of the following provisions—

(i) paragraph 3 of Schedule 5 to the Social Security (Northern Ireland) Order 1989;

(ii) section 125(1);

(iii) Article 114(1) of the Pensions (Northern Ireland) Order 1995;

(iv) Article 28(4) of the Welfare Reform and Pensions (Northern Ireland) Order 1999;

(v) Article 279(1) of the Pensions (Northern Ireland) Order 2005;

(vi) section 61(3) of the Pension Schemes Act 2015;

(vii) regulations made under section 62(4) or 63(4) of the Pension Schemes Act 2015.

96C Meaning of “normal pension age” in this Chapter

(1) In this Chapter “normal pension age”, in relation to a category of benefits under a pension scheme, means—

(a) in a case where the scheme is an occupational pension scheme and those benefits consist only of a guaranteed minimum pension, the earliest age at which the member is entitled to receive the guaranteed minimum pension on retirement from any employment to which the scheme applies,

(b) in any other case where the scheme is an occupational pension scheme and the scheme provides for the member to become entitled to receive any of those benefits at a particular age on retirement from any employment to which the scheme applies, the earliest age at which the member becomes entitled to receive any of the benefits, and

(c) in a case not falling within paragraph (a) or (b), normal minimum pension age as defined by section 279(1) of the Finance Act 2004.

(2) For the purposes of subsection (1) any scheme rule making special provision as to early retirement on grounds of ill-health or otherwise is to be disregarded.

96D Interpretation of Chapter

In this Chapter—

• “accrued rights”, in relation to a member of a pension scheme, means rights that have accrued to or in respect of the member to benefits under the scheme;

• “category”, in relation to benefits, has the meaning given by section 89(6);

• “flexible benefit” has the meaning given by section 74 of the Pension Schemes Act 2015;

• “guarantee date”, in relation to a member who has received a statement of entitlement, has the meaning given by section 89A;

• “member” is to be read in accordance with section 89(11);

• “normal pension age” has the meaning given by section 96C;

• “pension credit rights”, in relation to a member of a pension scheme, means rights to benefits under the scheme which are attributable (directly or indirectly) to a pension credit;

• “salary related occupational pension scheme”: an occupational pension scheme is “salary related” if—

  (a)

  the scheme is not a scheme under which all the benefits that may be provided are money purchase benefits, and

  (b)

  the scheme does not fall within a prescribed class;

• “scheme rules”, in relation to a pension scheme, has the meaning given by section 96B;

• “statement of entitlement” has the meaning given by section 89A;

• “transferrable rights” is to be read in accordance with section 89(11).”