Pension Schemes Act 2021

75 Rules about modifying schemes

(1) The Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) is amended as follows.

(2) In Article 67 (the subsisting rights provisions)—

(a) after paragraph (1) insert—

“(1A) Any exercise of such a power to make a prohibited modification is void.”;

(b) in paragraph (2)(a)(i), after “if the modification is a protected modification,” insert “or the scheme is a collective money purchase scheme within the meaning of Part 2 of the Pension Schemes Act 2021,”;

(c) in paragraph (2)(a)(ii), for “if it is not” substitute “if head (i) does not apply”;

(d) in paragraph (3) omit sub-paragraph (b) and the “or” before it;

(e) after paragraph (3) insert—

“(3A) Regulations may provide for cases in which the subsisting rights provisions do not apply.”

(3) In Article 67A (the subsisting rights provisions: interpretation), in paragraph (1), before ““regulated modification”” insert—

• ““prohibited modification””.

(4) After paragraph (1) of that Article insert—

“(1A) “Prohibited modification” means a modification of an occupational pension scheme which on taking effect would or might result in any subsisting right of—

(a) a member of the scheme, or

(b) a survivor of a member of the scheme,

which is not a right or entitlement to money purchase benefits becoming, or being replaced with, a right or entitlement to collective money purchase benefits under the scheme rules.”

(5) In paragraph (3) of that Article—

(a) after “a modification” insert “, other than a prohibited modification,”;

(b) for sub-paragraph (a) substitute—

“(a) on taking effect would or might result in a relevant transformation of any subsisting right of a member of the scheme or a survivor of a member of the scheme (see paragraph (3A)),”;

(c) in sub-paragraph (b), after “rules” insert “, other than a pension that is a collective money purchase benefit”;

(d) omit the words following sub-paragraph (c).

(6) After paragraph (3) of that Article insert—

“(3A) For the purposes of paragraph (3)(a), there is a relevant transformation of a subsisting right where—

(a) a subsisting right that is not a right or entitlement to money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits under the scheme rules,

(b) a subsisting right that is a right or entitlement to money purchase benefits other than collective money purchase benefits becomes, or is replaced with, a right or entitlement to collective money purchase benefits under the scheme rules, or

(c) a subsisting right that is a right or entitlement to collective money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits other than collective money purchase benefits under the scheme rules.

(3B) For the purposes of paragraph (3A), the reference in the definition of “money purchase benefits” in section 176(1) of the Pension Schemes Act to the widow, widower or surviving civil partner of a member of an occupational pension scheme is to be read as including any other survivor of the member.”

(7) In paragraph (4) of that Article, after “a modification” insert “, other than a prohibited modification,”.

(8) In paragraph (9) of that Article—

(a) in sub-paragraph (a), after head (ix) insert—

“(x) regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021;

(xi) sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;”;

(b) in sub-paragraph (b), after head (vii) insert—

“(viii) sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.”