PART 1CATEGORIES OF PENSION SCHEME
F31Introduction
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2Defined benefits scheme
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3Shared risk scheme (sometimes known as “defined ambition”)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4Defined contributions scheme
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5Meaning of “pensions promise” etc
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6Treatment of a scheme as two or more separate schemes
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F37Interpretation of Part 1
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PART 2COLLECTIVE BENEFITS
Introduction and nature of collective benefits
F48Introduction and definition
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9Duty to set targets for collective benefits
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10Policy about factors used to determine each benefit
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11Power to impose requirements about factors used to determine each benefit
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Contributions
12Payment schedule
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13Overdue contributions and other payments
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Investment
14Statement of investment strategy
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15Investment performance reports
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16Investment powers
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17Restriction on borrowing by trustees or managers
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18Investment powers: duty of care
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Valuation
19Valuation reports
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20Valuation process
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Dealing with deficits and surpluses
21Policy for dealing with a deficit or surplus
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22Power to impose requirements about dealing with a deficit or surplus
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23Deficits attributable to an offence or the imposition of a levy
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24Payment of amounts out of collective benefit funds
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Cash equivalents
25Policy for calculating cash equivalent of benefits
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Winding up
26Winding up
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27Requirement to wind up scheme in specified circumstances
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28Policies about winding up
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Identifying assets
29Working out which assets are available for the provision of which benefits
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Regulations under Part 2: general
30Requirement to obtain actuarial advice
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31Sub-delegation
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32Publication of documents etc
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33Enforcement
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34Overriding requirements
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Interpretation of Part 2
F435Interpretation of Part 2
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PART 3GENERAL CHANGES TO LEGISLATION ABOUT PENSION SCHEMES
Administration and governance
F236Pensions promise obtained from third party
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F137Duty to act in the best interests of members
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38Disclosure of information about schemes
1
Section 109 of the Pension Schemes Act (disclosure of information about schemes to members etc) is amended as follows.
2
In subsection (1)—
a
in the opening words, for “the persons mentioned in subsection (2)” substitute “
persons of prescribed descriptions
”
;
b
in paragraph (ca), omit “to the member” and “by him”.
3
Omit subsection (2).
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.
5
For subsection (4) substitute—
4
Where the regulations specify requirements to be complied with in the case of an occupational pension scheme with respect to keeping recognised trade unions informed, the regulations must make provision for referring to an industrial tribunal any question whether an organisation is a recognised trade union.
4A
For the purposes of subsection (4) a trade union is a recognised trade union in relation to an occupational pension scheme if it is an independent trade union recognised to any extent for the purposes of collective bargaining in relation to members and to prospective members of the scheme.
6
In subsection (5), for “some or all of the persons mentioned in subsection (2)” substitute “
persons of a prescribed description
”
.
7
Omit paragraph 13 of Schedule 10 to the 2005 Order, which is no longer needed given subsection (3).
Early leavers
F539Extension of preservation of benefit under occupational pension schemes
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40Revaluation of accrued benefits
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Indexation
41Collective benefits exempt from indexation
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42Regulatory own fund schemes exempt from indexation
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43Power to create other exemptions from indexation
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Independent trustees
44Removal of requirement to maintain register of independent trustees
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Rules about modification of schemes
F545Rules about modification of schemes
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Pension sharing
46Pension sharing and normal benefit age
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 amendments
I147Other amendments to do with Parts 1 and 2
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.
PART 4GENERAL
48Power to make consequential amendments
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).
49Regulations
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.
50Crown application
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).
51Interpretation
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.
52Commencement
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.
53Short title
This Act may be cited as the Pension Schemes Act (Northern Ireland) 2016.