A scheme satisfies the test scheme standard in relation to a jobholder (J) if the pensions to be provided for the relevant members of the scheme are broadly equivalent to, or better than, the pensions which would be provided for them under a test scheme.

Subject to subsection (3), the relevant members are J and all active members who are jobholders of the same employer as J.

In applying this section the pensions to be provided for relevant members must be considered as a whole.

The Department may by regulations make provision for the manner of, and criteria for, determining whether the pensions to be provided for the relevant members under a scheme are broadly equivalent to, or better than, the pensions which would be provided for them under a test scheme.

Regulations under subsection (4) may provide for the determination to be made in accordance with guidance issued from time to time by the Department.

The Department may by regulations provide that a scheme only satisfies the test scheme standard if the scheme actuary certifies that it does.

Except in prescribed circumstances, the scheme actuary is the actuary appointed under Article 47(1)(b) of the Pensions (Northern Ireland) Order 1995 (NI 22) (in this Act referred to as “the 1995 Order”) (professional advisers) in relation to the scheme.

In the case of a scheme under which a sum of money is made available for the provision of benefits to a relevant member, references in this section to pensions are to be read as references to such sums.