Pension Schemes Act (Northern Ireland) 2016

PART 1N.I.CATEGORIES OF PENSION SCHEME

Prospective

IntroductionN.I.

F11  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Prospective

Defined benefits schemeN.I.

2  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Shared risk scheme (sometimes known as “defined ambition”)N.I.

3  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Defined contributions schemeN.I.

4  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Meaning of “pensions promise” etcN.I.

5  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Treatment of a scheme as two or more separate schemesN.I.

6  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Interpretation of Part 1N.I.

F17  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

PART 2N.I.COLLECTIVE BENEFITS

Introduction and nature of collective benefitsN.I.

Prospective

Introduction and definitionN.I.

F28  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Prospective

Duty to set targets for collective benefitsN.I.

9  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Policy about factors used to determine each benefitN.I.

10  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Power to impose requirements about factors used to determine each benefitN.I.

11  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

ContributionsN.I.

Payment scheduleN.I.

12  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overdue contributions and other paymentsN.I.

13  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

InvestmentN.I.

Statement of investment strategyN.I.

14  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment performance reportsN.I.

15  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment powersN.I.

16  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restriction on borrowing by trustees or managersN.I.

17  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment powers: duty of careN.I.

18  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

ValuationN.I.

Valuation reportsN.I.

19  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Valuation processN.I.

20  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Dealing with deficits and surplusesN.I.

Policy for dealing with a deficit or surplusN.I.

21  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to impose requirements about dealing with a deficit or surplusN.I.

22  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deficits attributable to an offence or the imposition of a levyN.I.

23  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payment of amounts out of collective benefit fundsN.I.

24  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Cash equivalentsN.I.

Policy for calculating cash equivalent of benefitsN.I.

25  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Winding upN.I.

Winding upN.I.

26  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirement to wind up scheme in specified circumstancesN.I.

27  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Policies about winding upN.I.

28  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Identifying assetsN.I.

Working out which assets are available for the provision of which benefitsN.I.

29  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Regulations under Part 2: generalN.I.

Requirement to obtain actuarial adviceN.I.

30  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sub-delegationN.I.

31  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Publication of documents etcN.I.

32  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

EnforcementN.I.

33  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overriding requirementsN.I.

34  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Part 2N.I.

Prospective

Interpretation of Part 2N.I.

F235  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

PART 3N.I.GENERAL CHANGES TO LEGISLATION ABOUT PENSION SCHEMES

Administration and governanceN.I.

Prospective

Pensions promise obtained from third partyN.I.

F336  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Prospective

Duty to act in the best interests of membersN.I.

F437  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Disclosure of information about schemesN.I.

38—(1) Section 109 of the Pension Schemes Act (disclosure of information about schemes to members etc) is amended as follows.

F5(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Before subsection (3) insert—

“(2A) In complying with requirements specified in the regulations, a person must have regard to any guidance prepared from time to time by the Department.”.

F7(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Commencement Information

I1S. 38(1) in operation at 9.3.2018 for specified purposes by S.R. 2018/43, art. 2

I2S. 38(4) in operation at 9.3.2018 by S.R. 2018/43, art. 2

Early leaversN.I.

Prospective

Extension of preservation of benefit under occupational pension schemesN.I.

F839  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Prospective

Revaluation of accrued benefitsN.I.

40  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

IndexationN.I.

Collective benefits exempt from indexationN.I.

41  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulatory own fund schemes exempt from indexationN.I.

42  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to create other exemptions from indexationN.I.

43  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospective

Independent trusteesN.I.

Removal of requirement to maintain register of independent trusteesN.I.

44  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rules about modification of schemesN.I.

Prospective

Rules about modification of schemesN.I.

F845  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Pension sharingN.I.

Pension sharing and normal benefit ageN.I.

46—(1) The Pension Schemes Act is amended as follows.

(2) In section 97B (interpretation) for the definition of “normal benefit age” substitute—

““normal benefit age”, in relation to a pension credit benefit for a member of a scheme, is the earliest age at which the member is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill-health or otherwise);

“normal pension age”, in relation to a benefit for a member of a scheme, means the earliest age at which the member is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill-health or otherwise);”.

(3) In section 97C (basic principle as to pension credit benefit), for subsection (1) substitute—

“(1) The normal benefit age in relation to a pension credit benefit for a member of a scheme—

(a)must not be lower than 60, and

(b)must not be higher than the permitted maximum.

(1A) The “permitted maximum” is 65 or, if higher, the highest normal pension age for any benefit that is payable under the scheme to or in respect of any of the members by virtue of rights which are not attributable (directly or indirectly) to a pension credit.”.

Other amendmentsN.I.

Other amendments to do with Parts 1 and 2N.I.

47  Schedule 2—

(a)contains amendments to do with Parts 1 and 2, and

(b)replaces references to “money purchase scheme” so as to limit the number of different ways of categorising pension schemes.

Commencement Information

I3S. 47 partly in operation; s. 47 in operation for certain purposes at 16.1.2016 see s. 52(1)(c)

PART 4N.I.GENERAL

Power to make consequential amendmentsN.I.

48—(1) The Department may by regulations make provision that is consequential on any provision made by this Act.

(2) Regulations under this section may amend, repeal, revoke or otherwise modify any statutory provision (whenever passed or made).

RegulationsN.I.

49—(1) A power to make regulations under this Act is exercisable by the Department.

(2) Subject to the following provisions of this section, any regulations made under this Act are subject to negative resolution.

(3) The first regulations under section 8(3)(b), 9, 10, 11 or 21, or regulations under section 48 that amend, repeal or otherwise modify any relevant statutory provision (whether alone or with other provisions),—

(a)must be laid before the Assembly after being made; and

(b)take effect on such date as may be specified in the regulations, but (without prejudice to the validity of anything done thereunder or to the making of new regulations) cease to have effect upon the expiration of a period of six months from that date unless at some time before the expiration of that period the regulations are approved by a resolution of the Assembly.

(4) In this section “relevant statutory provision” means a statutory provision contained in—

(a)an Act of the Parliament of Northern Ireland;

(b)an Order in Council under Schedule 1 to the Northern Ireland Act 1974 or the Schedule to the Northern Ireland Act 2000;

(c)an Act of the Assembly; or

(d)an Act of the Parliament of the United Kingdom.

(5) Regulations under this Act may include incidental, supplementary, consequential, transitional, transitory or saving provision.

Crown applicationN.I.

50—(1) In this section “the relevant provisions” means—

(a)Part 2,

(b)section 36, and

(c)section 37.

(2) The relevant provisions apply to a pension scheme managed by or on behalf of the Crown as they apply to other pension schemes.

(3) Accordingly, references in those provisions to a person in the person's capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.

(4) References in the relevant provisions to a person in the person's capacity as an employer include the Crown, or a person acting on behalf of the Crown, in that capacity.

(5) Nothing in the relevant provisions applies to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947).

InterpretationN.I.

51  In this Act—

“the 1995 Order” means the Pensions (Northern Ireland) Order 1995;

“the 2005 Order” means the Pensions (Northern Ireland) Order 2005;

“the Department” means the Department for Social Development;

“the Pension Schemes Act” means the Pension Schemes (Northern Ireland) Act 1993;

“statutory provision” has the meaning given by section 1(f) of the Interpretation Act (Northern Ireland) 1954.

CommencementN.I.

52—(1) The following provisions come into operation on the day after this Act receives Royal Assent—

(a)section 46;

(b)this Part;

(c)paragraphs 22, 28, 31 and 33 of Schedule 2 (and section 47 so far as relating to those provisions).

(2) The other provisions of this Act come into operation on such day or days as the Department may by order appoint.

(3) The Department may by order make incidental, supplementary, consequential, transitional, transitory or saving provision in connection with the coming into operation of any provision of this Act.

Short titleN.I.

53  This Act may be cited as the Pension Schemes Act (Northern Ireland) 2016.