Article 74.
1. The Matrimonial and Family Proceedings (Northern Ireland) Order 1989 is amended as follows.
2. For Article 21 there is substituted—
“21. Subject to Article 24, on an application by a party to a marriage for an order for financial relief under this Article, the court may—
(a)make any one or more of the orders which it could make under Part III of the principal Order if a decree of divorce, a decree of nullity of marriage or a decree of judicial separation in respect of the marriage had been granted in Northern Ireland, that is to say—
(i)any order mentioned in Article 25(1) of the principal Order (financial provision orders);
(ii)any order mentioned in Article 26(1) of that Order (property adjustment orders); and
(b)if the marriage has been dissolved or annulled, make one or more orders each of which would, within the meaning of that Part, be a pension sharing order in relation to the marriage.”.
3. In Article 25—
(a)after paragraph (b) there is inserted—
“(ba)Article 26A(3) to (5) (provisions about pension sharing orders in relation to divorce and nullity);
(bb)Article 26B (duty to stay pension sharing orders);
(bc)Article 26C (apportionment of pension sharing charges);”; and
(b)at the end there is added—
“(l)Article 42A (appeals relating to pension sharing orders which have taken effect).”.
4. The Contributions and Benefits Act has effect subject to the following amendments.
5.—(1) Section 20 is amended as follows.
(2) In subsection (1), after (f) there is inserted—
“(fa)shared additional pensions;”.
(3) In subsection (2), in the definition of “long-term benefit”, after paragraph (d) there is inserted—
“(e)a shared additional pension;”.
6. In section 21(1), after “41 below” there is inserted “or a shared additional pension under section 55A below”.
7. In section 39(1), (2) and (3), for “45A” there is substituted “45B”.
8. In section 43, at the end there is added—
“(6) For the purposes of this section, a pension under section 55A below is not a retirement pension.”.
9. In section 48A(4), for “45A” there is substituted “45B”.
10. In section 48B(2) and (3), for “45A” there is substituted “45B”.
11. In section 48C(4), for “45A” there is substituted “45B”.
12. In section 54(1), at the end there is inserted “or to a shared additional pension”.
13. The Administration Act has effect subject to the following amendments.
14.—(1) Section 135A is amended as follows.
(2) In subsection (1)(a)(i) after “retirement pension” there is inserted “or shared additional pension”.
(3) In subsection (2) after “retirement pension” there is inserted “, a shared additional pension”.
15. In section 143(2) after paragraph (a) there is inserted—
“(aa)any administrative expenses of the Department in supplying information about benefits under Part II of that Act in accordance with regulations under Article 21 of the Welfare Reform and Pensions (Northern Ireland) Order 1999.”.
16. In section 145(5)(b), after “section 143(2)(a)” there is inserted “or (aa)”.
17. The Pension Schemes Act has effect subject to the following amendments.
18. In section 46(1)—
(a)in paragraph (a), at the end there is inserted—
“(iii)of safeguarded rights under the scheme;”,
(b)in paragraph (b), after “protected” there is inserted “, or safeguarded,”.
19.—(1) Section 48 is amended as follows.
(2) In subsection (2A), at the end there is inserted—
“(c)any persons who have safeguarded rights under the scheme or are entitled to any benefit giving effect to safeguarded rights under it.”.
(3) In subsection (3)(b), after “protected”, in both places where that word occurs, there is inserted “, or safeguarded,”.
20.—(1) Section 79 is amended as follows.
(2) In subsection (1), before “benefits”, in both places, there is inserted
“relevant”.
(3) After that subsection there is inserted—
“(1A) The following are relevant benefits for the purposes of subsection (1)—
(a)any benefits payable otherwise than by virtue of rights which are attributable (directly or indirectly) to a pension credit, and
(b)in the case of a salary related occupational pension scheme, any benefits payable by virtue of such rights, to the extent that the rights involve the member being credited by the scheme with notional pensionable service.”.
(4) At the end there is added—
“(4) For the purposes of this section, an occupational pension scheme is salary related if—
(a)it is not a money purchase scheme, and
(b)it does not fall within a prescribed class.”.
21. In section 81, after “69(2)(b)” there is inserted “or 97D(2)(b)”.
22. In section 89, after subsection (1) there is inserted—
“(1ZA) In subsection (1), references to accrued rights to benefit do not include rights which are attributable (directly or indirectly) to a pension credit.”.
23. In section 89A, after subsection (1) there is inserted—
“(1A) In subsection (1), the reference to benefits which have accrued does not include benefits which are attributable (directly or indirectly) to a pension credit.”.
24. In section 90, after subsection (1A) there is inserted—
“(1B) In subsection (1), references to benefits which have accrued do not include benefits which are attributable (directly or indirectly) to a pension credit.”.
25. In section 92, there is added at the end—
“(4) Where a member of an occupational pension scheme or a personal pension scheme—
(a)is entitled to give a notice under section 97F(1) to the trustees or managers of the scheme, or
(b)would be entitled to do so, but for section 97G(1),
he may not, if the scheme so provides, make an application to them under section 91 unless he also gives them a notice under section 97F(1).”.
26.—(1) Section 94 is amended as follows.
(2) In subsection (5)—
(a)after “part of the” there is inserted “relevant”, and
(b)for “any of the benefits mentioned in that section” there is substituted “benefits”.
(3) In subsection (8), after “this section” there is inserted—
““relevant benefits” means any benefits not attributable (directly or indirectly) to a pension credit; and”.
27.—(1) Section 96 is amended as follows.
(2) In subsection (1), for “subsection (2)” there is substituted
“subsections (2) and (2A)”.
(3) After subsection (2) there is inserted—
“(2A) If the making of the application depended on the giving of a notice under section 97F(1), the application may only be withdrawn if the notice is also withdrawn.”.
28.—(1) Section 125 is amended as follows.
(2) In subsection (1), after “Part IV,” there is inserted “Chapters I and II of Part IVA,”.
(3) In subsection (2), for “does” there is substituted “and Chapter II of Part IVA do”.
29.—(1) Section 173 is amended as follows.
(2) The words “or of” are omitted.
(3) At the end there is inserted “, Article 27D of the Matrimonial Causes (Northern Ireland) Order 1978 or Part IV or V of the Welfare Reform and Pensions (Northern Ireland) Order 1999”.
30. In section 176(1)—
(a)after the definition of “occupational pension scheme” there is inserted—
““pension credit” means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under section 29(1)(b) of the Welfare Reform and Pensions Act 1999;”,
(b)after the definition of “rights” there is inserted—
““safeguarded rights” has the meaning given in section 64A,”.
31. In section 178(3), for “and 93(1)” there is substituted “93(1) and 97I”.
32. The Pensions Order has effect subject to the following amendments.
33. In Article 3(2)(a)—
(a)in head (ii), after “values),” there is inserted “Chapter II of Part IVA (pension credit benefit transfer values)”, and
(b)after that head there is inserted
“or
(iii)the following provisions of the Welfare Reform and Pensions (Northern Ireland) Order 1999: Article 30 (time for discharge of pension credit liability) and Article 42 (information),”.
34.—(1) Article 16 is amended as follows.
(2) In paragraphs (1)(a) and (6)(a), before “members” there is inserted
“qualifying”.
(3) In paragraph (8)—
(a)after “a”, in the second place where that word occurs, there is inserted “qualifying”,
(b)for “a member of the scheme”, in the second place where those words occur, there is substituted “such a member”.
35. In Article 17(4)(a), before “members” there is inserted “qualifying”.
36.—(1) Article 18 is amended as follows.
(2) In paragraphs (1)(a) and (6)(a), before “members” there is inserted
“qualifying”.
(3) In paragraph (7)—
(a)after “a”, in the second place where that word occurs, there is inserted “qualifying”,
(b)for “a member of the scheme”, in the second place where those words occur, there is substituted “such a member”.
37. In Article 20(5), after “a”, in the second place where that word occurs, there is inserted “qualifying”.
38. In Article 21(6)—
(a)after “Article” there is inserted—
“(a)“qualifying member”, in relation to a trust scheme, means a person who is an active, deferred or pensioner member of the scheme, and
(b)”,
and
(b)before “members” there is inserted “qualifying”.
39.—(1) Article 38 is amended as follows.
(2) In paragraph (1), for the words from “that the scheme” to the end there is substituted—
“(a)that the scheme is not for the time being to be wound up but that no new members are to be admitted to it, or
(b)that the scheme is not for the time being to be wound up but that no new members, except pension credit members, are to be admitted to it.”.
(3) In paragraph (2), the words from “but” to the end are omitted.
(4) After that paragraph there is inserted—
“(2A) Paragraph (2) does not authorise the trustees to determine—
(a)where there are accrued rights or pension credit rights to any benefit, that the benefit is not to be increased, or
(b)where the power conferred by that paragraph is exercisable by virtue of a determination under paragraph (1)(b), that members of the scheme may not acquire pension credit rights under it.”.
40. In Article 51(6), after “a pension” there is inserted “which is attributable (directly or indirectly) to a pension credit or”.
41. In Article 53, after paragraph (3) there is inserted—
“(3A) In paragraphs (1) and (2), the references to a person’s pension do not include any pension which is attributable (directly or indirectly) to a pension credit.”.
42.—(1) Article 67 is amended as follows.
(2) In paragraph (2), for “or accrued right,” there is substituted “accrued right or pension credit right”.
(3) In paragraph (4)(a), for “or accrued rights,” there is substituted
“accrued rights or pension credit rights”.
(4) For paragraph (5) there is substituted—
“(5) Paragraph (2) does not apply to the exercise of a power—
(a)for a purpose connected with debits under Article 26(1)(a) of the Welfare Reform and Pensions (Northern Ireland) Order 1999, or
(b)in a prescribed manner.”.
43. In Article 68(2), for “and” at the end of sub-paragraph (d) there is substituted—
“(da)to enable the scheme to accommodate persons with pension credits or pension credit rights, and”.
44. In Article 73, after paragraph (3) there is inserted—
“(3A) No pension or other benefit which is attributable (directly or indirectly) to a pension credit may be regarded for the purposes of paragraph (3)(a) as derived from the payment of voluntary contributions.”.
45. In Article 74(3)(b), at the end there is inserted “or pension credit rights”.
46.—(1) Article 89 is amended as follows.
(2) In paragraph (1), for the words from “, or has” to “occupational pension scheme” there is substituted “to a pension under an occupational pension scheme or has a right to a future pension under such a scheme”.
(3) In paragraph (2), for the words from “, or” to “scheme” there is substituted “to a pension under an occupational pension scheme, or right to a future pension under such a scheme,”.
(4) In paragraph (5)—
(a)for the words from “, or has” to “scheme” there is substituted “to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme”,
(b)in sub-paragraph (d), for “accrued right, to pension” there is substituted “right,”, and
(c)in sub-paragraph (e), for “accrued right, to pension” there is substituted “right”.
47.—(1) Article 90 is amended as follows.
(2) In paragraph (1), for the words from “, or” to “scheme” there is substituted “to a pension under an occupational pension scheme or a right to a future pension under such a scheme”.
(3) In paragraph (4), for the words from “person entitled” to “accrued” there is substituted “pensioner, or prospective pensioner”.
48.—(1) Article 91 is amended as follows.
(2) In paragraph (1), for the words from “, or” to “scheme” there is substituted “to a pension under an occupational pension scheme or right to a future pension under such a scheme”.
(3) In paragraph (2)—
(a)for “accrued right to a pension” there is substituted “right”, and
(b)for “accrued right to a pension under the scheme” there is substituted “right”.
(4) In paragraph (4), for “accrued right to a pension” there is substituted
“right”.
49. In Article 97(2)—
(a)in sub-paragraph (b), after “values),” there is inserted “Chapter II of Part IVA (pension credit benefit transfer values),”, and
(b)at the end of that sub-paragraph there is inserted—
“(ba)Article 30 (time for discharge of pension credit liability) or 42 (information) of the Welfare Reform and Pensions (Northern Ireland) Order 1999,”.
50.—(1) Article 121 is amended as follows.
(2) In paragraph (1), in the definition of “member”, for “or pensioner” there is substituted “, pensioner or pension credit”.
(3) In that paragraph, after the definition of “payment schedule” there is inserted—
““pension credit” means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under section 29(1)(b) of the Welfare Reform and Pensions Act 1999,
“pension credit member”, in relation to an occupational pension scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit,
“pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit,”.
(4) After paragraph (2) there is inserted—
“(2A) In paragraph(2)(a), the reference to rights which have accrued to or in respect of the member does not include any rights which are pension credit rights.”.
51.—(1) Article 162 is amended as follows.
(2) In paragraph (4), for “scheme” there is substituted “arrangement”.
(3) In paragraph (5)(d), for “scheme” there is substituted “arrangement”.
52. In Article 22 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (charges by pension arrangements in relation to earmarking orders), for “section 23” substitute “section 22A or 23”.
53. The Insolvency (Northern Ireland) Order 1989 is amended as follows.
54. After Article 315C there is inserted—
315D.—(1) For the purposes of Articles 312, 314 and 315, a pension-sharing transaction shall be taken—
(a)to be a transaction, entered into by the transferor with the transferee, by which the appropriate amount is transferred by the transferor to the transferee; and
(b)to be capable of being a transaction entered into at an undervalue only so far as it is a transfer of so much of the appropriate amount as is recoverable.
(2) For the purposes of Articles 313 to 315, a pension-sharing transaction shall be taken—
(a)to be something(namely a transfer of the appropriate amount to the transferee) done by the transferor; and
(b)to be capable of being a preference given to the transferee only so far as it is a transfer of so much of the appropriate amount as is recoverable.
(3) If on an application under Article 312 or 313 any question arises as to whether, or the extent to which, the appropriate amount in the case of a pension-sharing transaction is recoverable, the question shall be determined in accordance with paragraphs (4) to (8).
(4) The High Court shall first determine the extent (if any) to which the transferor’s rights under the shared arrangement at the time of the transaction appear to have been (whether directly or indirectly) the fruits of contributions (“personal contributions”)—
(a)which the transferor has at any time made on his own behalf, or
(b)which have at any time been made on the transferor’s behalf,
to the shared arrangement or any other pension arrangement.
(5) Where it appears that those rights were to any extent the fruits of personal contributions, the High Court shall then determine the extent (if any) to which those rights appear to have been the fruits of personal contributions whose making has unfairly prejudiced the transferor’s creditors (“the unfair contributions”).
(6) If it appears to the High Court that the extent to which those rights were the fruits of the unfair contributions is such that the transfer of the appropriate amount could have been made out of rights under the shared arrangement which were not the fruits of the unfair contributions, then the appropriate amount is not recoverable.
(7) If it appears to the High Court that the transfer could not have been wholly so made, then the appropriate amount is recoverable to the extent to which it appears to the Court that the transfer could not have been so made.
(8) In making the determination mentioned in paragraph (5) the High Court shall consider in particular—
(a)whether any of the personal contributions were made for the purpose of putting assets beyond the reach of the transferor’s creditors or any of them, and
(b)whether the total amount of any personal contributions represented, at the time the pension-sharing transaction was made, by rights under pension arrangements is an amount which is excessive in view of the transferor’s circumstances when those contributions were made.
(9) In this Article and Articles 315E and 315F—
“appropriate amount”, in relation to a pension-sharing transaction, means the appropriate amount in relation to that transaction for the purposes of Article 26(1) of the Welfare Reform Order (creation of pension credits and debits);
“pension-sharing transaction” means an order or provision falling within Article 25(1) of the Welfare Reform Order (orders and agreements which activate pension-sharing);
“shared arrangement”, in relation to a pension-sharing transaction, means the pension arrangement to which the transaction relates;
“transferee”, in relation to a pension-sharing transaction, means the person for whose benefit the transaction is made;
“transferor”, in relation to a pension-sharing transaction, means the person to whose rights the transaction relates;
“the Welfare Reform Order” means the Welfare Reform and Pensions (Northern Ireland) Order 1999.
315E.—(1) This Article and Article 315F apply if the High Court is making an order under Article 312 or 313 in a case where—
(a)the transaction or preference is, or is any part of, a pension-sharing transaction, and
(b)the transferee has rights under a pension arrangement (“the destination arrangement”, which maybe the shared arrangement or any other pension arrangement) that are derived, directly or indirectly, from the pension-sharing transaction.
(2) Without prejudice to the generality of Article 312(2) or 313(2), or of Article 315, the order may include provision—
(a)requiring the person responsible for the destination arrangement to pay an amount to the transferor’s trustee in bankruptcy,
(b)adjusting the liabilities of the destination arrangement in respect of the transferee,
(c)adjusting any liabilities of the destination arrangement in respect of any other person that derive, directly or indirectly, from rights of the transferee under the destination arrangement,
(d)for the recovery by the person responsible for the destination arrangement (whether by deduction from any amount which that person is ordered to pay or otherwise) of costs incurred by that person in complying in the transferor’s case with any requirement under Article 315F(1) or in giving effect to the order,
(e)for the recovery, from the transferor’s trustee in bankruptcy, by the person responsible for a pension arrangement, of costs incurred by that person in complying in the transferor’s case with any requirement under Article 315F(2) or (3).
(3) In paragraph (2), references to adjusting the liabilities of the destination arrangement in respect of a person include (in particular) reducing the amount of any benefit or future benefit to which that person is entitled under the arrangement.
(4) The maximum amount which the person responsible for the destination arrangement may be required to pay by the order is the smallest of—
(a)so much of the appropriate amount as, in accordance with Article 315D is recoverable,
(b)so much (if any) of the amount of the unfair contributions (within the meaning given by Article 315D(5)) as is not recoverable by way of an order under Article 315A containing provision such as is mentioned in Article 315B(1)(a), and
(c)the value of the transferee’s rights under the destination arrangement so far as they are derived, directly or indirectly, from the pension-sharing transaction.
(5) If the order requires the person responsible for the destination arrangement to pay an amount (“the restoration amount”) to the transferor’s trustee in bankruptcy it must provide for the liabilities of the arrangement to be correspondingly reduced.
(6) For the purposes of paragraph (5), liabilities are correspondingly reduced if the difference between—
(a)the amount of the liabilities immediately before the reduction, and
(b)the amount of the liabilities immediately after the reduction,
is equal to the restoration amount.
(7) The order—
(a)shall be binding on the person responsible for the destination arrangement, and
(b)overrides provisions of the destination arrangement to the extent that they conflict with the provisions of the order.
315F.—(1) On the transferor’s trustee in bankruptcy making a written request to the person responsible for the destination arrangement, that person shall provide the trustee with such information about—
(a)the arrangement,
(b)the transferee’s rights under it, and
(c)where the destination arrangement is the shared arrangement, the transferor’s rights under it,
as the trustee may reasonably require for, or in connection with, the making of applications under Articles 312 and 313.
(2) Where the shared arrangement is not the destination arrangement, the person responsible for the shared arrangement shall, on the transferor’s trustee in bankruptcy making a written request to that person, provide the trustee with such information about—
(a)the arrangement, and
(b)the transferor’s rights under it, as the trustee may reasonably require for, or in connection with, the making of applications under Articles 312 and 313.
(3) On the transferor’s trustee in bankruptcy making a written request to the person responsible for any intermediate arrangement, that person shall provide the trustee with such information about—
(a)the arrangement, and
(b)the transferee’s rights under it,
as the trustee may reasonably require for, or in connection with, the making of applications under Articles 312 and 313.
(4) In paragraph (3) “intermediate arrangement” means a pension arrangement, other than the shared arrangement or the destination arrangement, in relation to which the following conditions are fulfilled—
(a)there was a time when the transferee had rights under the arrangement that were derived (directly or indirectly) from the pension-sharing transaction, and
(b)the transferee’s rights under the destination arrangement (so far as derived from the pension-sharing transaction) are to any extent derived (directly or indirectly) from the rights mentioned in sub-paragraph (a).
(5) Nothing in—
(a)any provision of section 155 of the[1993 c. 49.] Pension Schemes (Northern Ireland) Act 1993 or Article 89 of the[1995 NI 22.] Pensions (Northern Ireland) Order 1995 (which prevent assignment and the making of orders which restrain a person from receiving anything which he is prevented from assigning),
(b)any statutory provision (whether passed or made before or after the making of the Welfare Reform Order) corresponding to any of the provisions mentioned in sub-paragraph (a), or
(c)any provision of the destination arrangement corresponding to any of those provisions,
applies to the High Court exercising its powers under Article 312 or 313.
(6) Regulations may, for the purposes of Articles 312 to 315, Articles 315D and 315E and this Article, make provision about the calculation and verification of—
(a)any such value as is mentioned in Article 315E(4)(c);
(b)any such amounts as are mentioned in Article 315E(6)(a) and (b).
(7) The power conferred by paragraph (6) includes power to provide for calculation or verification—
(a)in such manner as may, in the particular case, be approved by a prescribed person; or
(b)in accordance with guidance—
(i)from time to time prepared by a prescribed person, and
(ii)approved by the Department.
(8) In Article 315E and this Article, references to the person responsible for a pension arrangement are to—
(a)the trustees, managers or provider of the arrangement, or
(b)the person having functions in relation to the arrangement corresponding to those of a trustee, manager or provider.
(9) In this Article—
“the Department” means the Department of Health and Social Services;
“prescribed” means prescribed by regulations;
“regulations” means regulations made by the Department.
(10) Regulations under this Article may contain such incidental, supplemental and transitional provisions as appear to the Department necessary or expedient.
(11) Regulations under this Article shall be subject to negative resolution.”.
55. The Administration Act has effect subject to the following amendments.
56. After section 128E insert—
128EE.—(1) The Department may make to any relevant authority such payments as it thinks fit in respect of expenses incurred by that authority in connection with the carrying out of any relevant function—
(a)by that authority,
(b)by any person providing services to that authority, or
(c)by any person authorised by that authority to carry out that function.
(2) In subsection (1)—
“relevant authority” means any authority (other than a government department) for the purposes of section 2A, 2C or 5A above;
“relevant function” means any function conferred by virtue of section 2A, 2C or 5A above.”.
57. In section 149(5) (enactments conferring functions in respect of which the Social Security Advisory Committee is to advise etc.), in the definition of “relevant enactments”, after paragraph (ad) insert—
“(ae)Articles 57, 69 and 70 of the Welfare Reform and Pensions (Northern Ireland) Order 1999, and”.
58. In section 165 (regulations and orders -general), after subsection (7) insert—
“(7A) Without prejudice to the generality of any of the preceding provisions of this section, regulations under any of sections 2A to 2C and 5A above may provide for all or any of the provisions of the regulations to apply only in relation to any area or areas specified in the regulations.”.
59. In section 166 (Assembly, etc. control of orders and regulations), in subsection (2), before the “and” at the end of paragraph (a) insert—
“(aa)the first regulations to be made under section 2A;”.
60. At the end of Article 17(2) of the Deregulation and Contracting Out (Northern Ireland) Order 1996 (social security: amendments following certain orders) there shall be added the words “the Welfare Reform and Pensions Act 1999”.
61. In Schedule 2 to the Social Security (Northern Ireland) Order 1998 (decisions against which no appeal lies), after paragraph 5 insert—