The Welfare Reform and Pensions (Northern Ireland) Order 1999

Creation of state scheme pension debits and credits

46.—(1) On the application of this Article—

(a) the transferor becomes subject, for the purposes of Part II of the Contributions and Benefits Act (contributory benefits), to a debit of the appropriate amount, and

(b) the transferee becomes entitled, for those purposes, to a credit of that amount.

(2) Where the relevant order or provision specifies a percentage value to be transferred, the appropriate amount for the purposes of paragraph (1) is the specified percentage of the cash equivalent on the transfer day of the transferor’s shareable state scheme rights immediately before that day.

(3) Where the relevant order or provision specifies an amount to be transferred, the appropriate amount for the purposes of paragraph (1)is the lesser of—

(a) the specified amount, and

(b) the cash equivalent on the transfer day of the transferor’s relevant state scheme rights immediately before that day.

(4) Cash equivalents for the purposes of this Article shall be calculated in accordance with regulations made by the Department.

(5) In determining prospective entitlement to a Category A retirement pension for the purposes of this Article, only tax years before that in which the transfer day falls shall be taken into account.

(6) In this Article—

“relevant order or provision” means the order or provision by virtue of which this Article applies;

“transfer day” means the day on which the relevant order or provision takes effect;

“transferor” means the person to whose rights the relevant order or provision relates;

“transferee” means the person for whose benefit the relevant order or provision is made.