SCHEDULES

Article 8.

SCHEDULE 1APPLICATION OF THE PENSION SCHEMES ACT AND THE PENSIONS ORDER TO REGISTERED SCHEMES

1.—(1) The provisions specified in sub-paragraph (2) shall apply as if any pension scheme established under a trust which—

(a)is not an occupational pension scheme; but

(b)is or has been registered under Article 4,

were an occupational pension scheme.

(2) The provisions are—

(a)subsections (4) to (9) of section 170 of the Pensions Schemes Act (levies towards certain expenditure), and

(b)the following provisions of Part II of the Pensions Order—

(i)Articles 3 to 11, 13 and 15 (supervision by the Authority) except Articles 8(1) and (2), 11(3)(c) and 15(1);

(ii)Articles 27 to 31 (trustees: general);

(iii)Articles 32 to 36 and 39 (functions of trustees) except the reference to Articles 16(3)(b) and 25(2) in Article 32(4), the reference to Article 56 in Article 35(2) and Article 35(5)(b);

(iv)Article 41 (functions of trustees or managers);

(v)Articles 47 and 48 (advisers);

(vi)Article 49 (receipts, payment and records) except paragraphs (5) and (8) to (13);

(vii)Article 50 (resolution of disputes);

(viii)Article 68 (power of trustees to modify scheme by resolution) except paragraph (3);

(ix)Articles 79 to 84 (the compensation payments) except Article 79(1)(b);

(x)Articles 89, 90 and 92 (assignment and forfeiture etc.) except Article 89(5)(d);

(xi)Article 94(2)(c) (review of decisions of the Authority);

(xii)Article 106 (other permitted disclosures);

(xiii)Article 108 (provision of information to Compensation Board);

(xiv)Article 114 (overriding requirements); and

(xv)Articles 121 and 122 (interpretation).

(3) Article 47(9) of the Pensions Order (as applied by sub-paragraph (1)) shall have effect as if the reference to any person who is or has been the employer were a reference to any person who, in pursuance of Article 5(5), is or has been required—

(a)to deduct an employee’s contributions to the scheme from his remuneration; and

(b)to pay them to the trustees or managers of the scheme or to a prescribed person.

(4) Article 68 of the Pensions Order (as so applied) shall have effect as if the purposes specified in paragraph (2) of that Article included enabling the conditions set out in Article 3 to be fulfilled in relation to the scheme.

(5) Article 121(1) of the Pensions Order (as so applied) shall have effect as if the definition of “member” were omitted.

2.—(1) Articles 96 to 98 of the Pensions Order (gathering information: the Authority) shall apply as if any pension scheme which—

(a)is not an occupational pension scheme; but

(b)is or has been registered under Article 4,

were an occupational pension scheme.

(2) Article 97 of the Pensions Order (as applied by sub-paragraph (1)) shall have effect as if the regulatory provisions, for the purposes of paragraph (1) of that Article, were—

(a)provisions made by or under the provisions specified in paragraph 1(2), other than Article 108 of the Pensions Order;

(b)Articles 109 and 113 of that Order;

(c)section 115 of the[1995 c. 26.] Pensions Act 1995 and any other provisions in force in Great Britain corresponding to the provisions mentioned in heads (a) and (b); and

(d)Articles 3 and 4(4) and (5).

(3) Article 98 of the Pensions Order (as so applied) shall have effect as if the references in paragraphs (1)(c)(i) and (4)(b) to that Order included references to Article 4(5).

(4) Any reference in this paragraph or paragraph 3 which is or includes a reference to, or to any paragraph of, Article 3 or 4 includes a reference to any provision in force in Great Britain corresponding to that Article or (as the case may be) that paragraph; and the reference in sub-paragraph (1) to any pension scheme includes a personal pension scheme (as well as an occupational scheme) within the meaning of the[1993 c. 48.] Pension Schemes Act 1993.

3.—(1) Article 97 of the Pensions Order shall have effect in relation to any occupational pension scheme which is or has been registered under Article 4 as if the regulatory provisions for the purposes of paragraph (1) of Article 97 included Articles 3 and 4(4) and (5).

(2) Article 98 of the Pensions Order shall have effect in relation to any occupational pension scheme which is or has been registered under Article 4 as if the references in paragraphs (1)(c)(i) and (4)(b) to that Order included references to Article 4(5).

Article 17.

SCHEDULE 2PENSIONS: MISCELLANEOUS AMENDMENTS

Income payments orders against pension payments

1. In Article 283(7) of the[1989 NI 19.] Insolvency (Northern Ireland) Order 1989 (bankrupt’s income against which income payments orders may be made includes certain payments under pension schemes), after “employment and” insert “(despite anything in Article 12 or 13 of the Welfare Reform and Pensions (Northern Ireland) Order 1999)”.

Extended meaning of “personal pension scheme”

2.—(1) In the Pension Schemes Act—

(a)in section 1 (categories of pension schemes), in the definition of

“personal pension scheme”, for “employed earners” substitute
“earners (whether employed or self-employed)”; and
(b)
in section 176(1) (general interpretation), for the definition of
“employed earner” substitute—
- ““employed earner” and “self-employed earner” have the meanings given by section 2 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;”.

(2) In consequence of sub-paragraph (1), the following provisions of that Act shall cease to have effect, namely—

(a)in section 69(2)(a)(ii) (short service benefit), the words “or a self-employed pension arrangement” and “or arrangement”;

(b)in section 92(2)(a) (exercise of option under section 91), sub-paragraph (iii) and the word “or” immediately preceding that sub-paragraph; and

(c)in section 176(1) (general interpretation), the definition of “self-employed pension arrangement”.

Revaluation of earnings factors: meaning of “relevant year”

3. In section 12(5) of the Pension Schemes Act (revaluation of earnings factors for purposes of section 10: early leavers etc.), for the definition of

“relevant year” substitute—

““relevant year” means any tax year in the earner’s working life,”.

Interim arrangements

4.—(1) Section 24 of the Pension Schemes Act (ways of giving effect to protected rights) is amended as follows.

(2) In subsection (1)—

(a)omit paragraph (aa) (but not the final “and”); and

(b)in paragraph (b), for “permitted” substitute “provided for”.

(3) For subsection (1A) substitute—

“(1A) Where the scheme is a personal pension scheme which provides for the member to elect to receive payments in accordance with this subsection, and the member so elects, effect shall be given to his protected rights during the interim period by the making of payments under an interim arrangement which—

(a)complies with section 24A, and

(b)satisfies such conditions as may be prescribed;

and in such a case subsections (2) to (4) accordingly apply as regards giving effect to his protected rights as from the end of that period.”.

(4) In subsection (3) for “(1A)(a) or” substitute “(1A) or”.

Effect of certain orders on guaranteed minimum pensions

5. In section 43 of the Pension Schemes Act (entitlement to guaranteed minimum pension for the purposes of the relationship with social security benefits), after subsection (6) (which is added by Article 29(4) of this Order) add—

“(7) For the purposes of section 42, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for any order under Article 315A of the Insolvency (Northern Ireland) Order 1989 (recovery of excessive pension contributions).”.

Payment by the Department of unpaid pension contributions

6.—(1) Paragraph 2 of Schedule 3 to the Pension Schemes Act (priority in bankruptcy for amounts paid by the Department in respect of unpaid pension contributions) is amended as follows.

(2) For sub-paragraphs (1) to (3) substitute—

“(1) This Schedule applies to any sum owed on account of an employer’s contributions to a salary related contracted-out scheme which were payable in the period of 12 months immediately preceding the relevant date.

(1A) The amount of the debt having priority by virtue of sub-paragraph (1) shall be taken to be an amount equal to the appropriate amount.

(2) This Schedule applies to any sum owed on account of an employer’s minimum payments to a money purchase contracted-out scheme falling to be made in the period of 12 months immediately preceding the relevant date.

(3) In so far as payments cannot from the terms of the scheme be identified as falling within sub-paragraph (2), the amount of the debt having priority by virtue of that sub-paragraph shall be taken to be an amount equal to the appropriate amount.

(3A) In sub-paragraph (1A) or (3) “the appropriate amount” means the aggregate of—

(a)the percentage for non-contributing earners of the total reckonable earnings paid or payable, in the period of 12 months referred to in sub-paragraph (1) or (2) (as the case may be), to or for the benefit of non-contributing earners; and

(b)the percentage for contributing earners of the total reckonable earnings paid or payable, in that period, to or for the benefit of contributing earners.”.

(3) In sub-paragraph (4), for “sub-paragraph (3)” substitute “sub-paragraph (3A)”.

Supervision by the Occupational Pensions Regulatory Authority

7. In Article 3(2)(b) of the Pensions Order (power of Authority to remove pension scheme trustee to whom Article 3 applies by virtue of any other provision of Part II of the Order), for “any other provision of this Part” substitute “this Order or any other statutory provision”.

8. In Article 8(4) of the Pensions Order (provision which may be contained in orders made by the Authority appointing pension scheme trustees), omit the word “or” at the end of sub-paragraph (a).

9. In Article 10 of the Pensions Order (imposition of civil penalties by the Authority), after paragraph (8) insert—

“(8A) Any penalty recoverable under this Article shall, if a county court so orders, be enforceable as if it were payable under an order of that court.”.

Occupational pension schemes: institutions who may hold money deposited by trustees etc.

10.—(1) Article 49 of the Pensions Order (other responsibilities of trustees, employers, etc.) is amended as follows.

(2) In each of paragraphs (1) and (5) (money to be kept by trustees or employers in accounts with institutions authorised under the Banking Act 1987), for “an institution authorised under the[1987 c. 22.] Banking Act 1987” substitute “a relevant institution”.

(3) After paragraph (1) insert—

“(1A) In this Article “relevant institution” means—

(a)an institution authorised under the Banking Act 1987;

(b)an institution within any of paragraphs 1 to 6 of Schedule 2 to that Act (institutions not requiring authorisation); or

(c)a European authorised institution within the meaning of the Banking Coordination (Second Council Directive) Regulations 1992 which may lawfully accept deposits in the United Kingdom in accordance with those regulations.”.

Annual increase in rate of pension

11. In Article 54(3) of the Pensions Order (supplementary provisions about annual increases in pensions), in the definition of “appropriate percentage”, for the words from “the revaluation period” onwards substitute

“the latest revaluation period specified in the order under paragraph 2 of Schedule 2 to the Pension Schemes Act (revaluation of accrued pension benefits) which is in force at the time of the increase (expressions used in this definition having the same meaning as in that paragraph),”.

Occupational pension schemes: certificates etc. relating to minimum funding requirement

12.—(1) In Article 58 of the Pensions Order (schedules of contributions), in paragraph (6)(a) (certification by actuary of adequacy of rates of contributions to meet minimum funding requirement)—

(a)for the words Form “on the date” to “is met,” substitute “it appears to him that the minimum funding requirement was met on the prescribed date,”; and

(b)omit the words “continue to”.

(2) In Article 59 of that Order (determination of contributions: supplementary), in paragraph (3) (duty of trustees etc. to prepare report of failure to meet minimum funding requirement), after “they must” insert “, within such further period as may be prescribed,”.

Excess assets of wound-up schemes

13. In Article 77(5) of the Pensions Order (penalties for trustees who deal improperly with excess assets of wound-up occupational pension schemes), for “Article 3 applies” substitute “Articles 3 and 10 apply”.

Pensionable service

14. In Article 121(3) of the Pensions Order (matters to be disregarded in determining “pensionable service”), at the end add—

“but, in its application for the purposes of Article 51, sub-paragraph (b) does not affect the operation of any rules of the scheme by virtue of which a period of service is to be rounded up or down by a period of less than a month.”.

Occupational pension schemes: rights of employee who is director of corporate trustee

15.—(1) The[1996 NI 16.] Employment Rights (Northern Ireland) Order 1996 is amended as follows.

(2) In Article 69 (employee who is a trustee of a pension scheme not to be subject to detriment referable to his carrying out his functions as such a trustee), after paragraph (2) insert—

“(2A) This Article applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director).”.

(3) In Article 86 (right to time off for pension scheme trustees), after paragraph (2) insert—

(4) In Article 133 (unfair dismissal of pension scheme trustees), after paragraph (1) insert—

“(1A) This Article applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director).”.

Article 18.

SCHEDULE 3PENSION SHARING ORDERS

1. The Matrimonial Causes Order is amended as follows.

2. In Article 2 (interpretation), in paragraph (3), for “and” at the end of sub-paragraph (a) there shall be substituted—

“(aa)references to pension sharing orders shall be construed in accordance with Article 23A; and”.

3. After Article 23 there is inserted—

“Pension sharing orders

23A.—(1) For the purposes of this Order, a pension sharing order is an order which—

(a)provides that one party's—

(i)shareable rights under a specified pension arrangement, or

(ii)shareable state scheme rights,

be subject to pension sharing for the benefit of the other party, and

(b)specifies the percentage value to be transferred.

(2) In paragraph (1)—

(a)the reference to shareable rights under a pension arrangement is to rights in relation to which pension sharing is available under Chapter I of Part V of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under Chapter I of Part IV of the Welfare Reform and Pensions Act 1999, and

(b)the reference to shareable state scheme rights is to rights in relation to which pension sharing is available under Chapter II of Part V of the Welfare Reform and Pensions (Northern Ireland) Order 1999, or under Chapter II of Part IV of the Welfare Reform and Pensions Act 1999, and

(c)“party” means a party to a marriage.”.

4. In Article 26 (property adjustment orders in connection with divorce proceedings, etc.), in sub-paragraphs (c) and (d) of paragraph (1), there is added at the end “, other than one in the form of a pension arrangement (within the meaning of Article 27D)”.

5. After Article 26 there is inserted—

“Pension sharing orders in connection with divorce proceedings, etc.

26A.—(1) On granting a decree of divorce or a decree of nullity of marriage or at any time thereafter (whether before or after the decree is made absolute), the court may, on an application made under this Article, make one or more pension sharing orders in relation to the marriage.

(2) A pension sharing order under this Article is not to take effect unless the decree on or after which it is made has been made absolute.

(3) A pension sharing order under this Article may not be made in relation to a pension arrangement which—

(a)is the subject of a pension sharing order in relation to the marriage, or

(b)has been the subject of pension sharing between the parties to the marriage.

(4) A pension sharing order under this Article may not be made in relation to shareable state scheme rights if—

(a)such rights are the subject of a pension sharing order in relation to the marriage, or

(b)such rights have been the subject of pension sharing between the parties to the marriage.

(5) A pension sharing order under this Article may not be made in relation to the rights of a person under a pension arrangement if there is in force a requirement imposed by virtue of Article 27B or 27C which relates to benefits or future benefits to which he is entitled under the pension arrangement.

Pension sharing orders: duty to stay

26B.—(1) No pension sharing order may be made so as to take effect before the end of such period after the making of the order as may be prescribed by regulations made by the Lord Chancellor.

(2) Regulations under this Article shall be subject to annulment in pursuance of a resolution of either House of Parliament in like manner as a statutory instrument and section 5 of the Statutory Instruments Act 1946 shall apply accordingly.

Pension sharing orders: apportionment of charges 26C. If a pension sharing order relates to rights under a pension arrangement, the court may include in the order provision about the apportionment between the parties of any charge under Article 38 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (charges in respect of pension sharing costs), or under section 41 of the Welfare Reform and Pensions Act 1999.”.

6. In Article 27 (matters to which the court is to have regard in deciding how to exercise its powers with respect to financial relief)—

(a)in paragraph (1), for “Article 25 or 26” there is substituted

“Article 25, 26 or 26A”, and
(b)
in paragraph (2), for “or 26” there is substituted “, 26 or 26A”.

7. In Article 27A(1) (court’s duty to consider desirability of exercising power to achieve clean break), for “or 26” there is substituted “, 26 or 26A”.

8.—(1) Article 33 (variation, discharge etc. of certain orders for financial relief) is amended as follows.

(2) In paragraph (2), at the end there is added—

“(f)a pension sharing order under Article 26A which is made at a time before the decree has been made absolute.”.

(3) After paragraph (4) there is inserted—

“(4A) In relation to an order which falls within sub-paragraph (f) of paragraph (2) (“the paragraph (2) order”)—

(a)the powers conferred by this Article may be exercised—

(i)only on an application made before the paragraph (2) order has or, but for sub-paragraph (b), would have taken effect; and

(ii)only if, at the time when the application is made, the decree has not been made absolute; and

(b)an application made in accordance with sub-paragraph (a) prevents the paragraph (2) order from taking effect before the application has been dealt with.

(4B) No variation of a pension sharing order shall be made so as to take effect before the decree is made absolute.

(4C) The variation of a pension sharing order prevents the order taking effect before the end of such period after the making of the variation as may be prescribed by regulations made by the Lord Chancellor.

(4D) Regulations under paragraph (4C) shall be subject to annulment in pursuance of a resolution of either House of Parliament in like manner as a statutory instrument and section 5 of the Statutory Instruments Act 1946 shall apply accordingly.”.

(4) In paragraph (5) after “property adjustment order” there is inserted

“or pension sharing order”.

9. In Article 35A (consent orders), in paragraph (3), in the definition of

“order for financial relief”, after “26” there is inserted “, 26A”.

10. In Article 39 (avoidance of transactions intended to prevent or reduce financial relief), in paragraph (1), after “26,” there is inserted

“26A,”.

11. After Article 42 there is inserted—

“Appeals relating to pension sharing orders which have taken effect

42A.—(1) Paragraphs (2) and (3) apply where an appeal against a pension sharing order is begun on or after the day on which the order takes effect.

(2) If the pension sharing order relates to a person’s rights under a pension arrangement, the appeal court may not set aside or vary the order if the person responsible for the pension arrangement has acted to his detriment in reliance on the taking effect of the order.

(3) If the pension sharing order relates to a person’s shareable state scheme rights, the appeal court may not set aside or vary the order if the Department of Health and Social Services has acted to its detriment in reliance on the taking effect of the order.

(4) In determining for the purposes of paragraph (2) or (3) whether a person or the Department has acted to his or its detriment in reliance on the taking effect of the order, the appeal court may disregard any detriment which in its opinion is insignificant.

(5) Where paragraph (2) or (3) applies, the appeal court may make such further orders (including one or more pension sharing orders) as it thinks fit, for the purpose of putting the parties in the position it considers appropriate.

(6) Article 26B only applies to a pension sharing order under this Article if the decision of the appeal court can itself be the subject of an appeal.

(7) In paragraph (2), the reference to the person responsible for the pension arrangement is to be read in accordance with Article 27D(4).”.

Article 19.

SCHEDULE 4AMENDMENTS OF ARTICLES 27B TO 27D OF THE MATRIMONIAL CAUSES ORDER

1.—(1) Article 27B of the Matrimonial Causes Order is amended as follows.

(2) In paragraph (1), for “scheme”, wherever occurring, there is substituted “arrangement”.

(3) Paragraph (2) ceases to have effect.

(4) In paragraph (3), for “scheme” there is substituted “arrangement”.

(5) In paragraph (4)—

(a)for “scheme”, wherever occurring, there is substituted

“arrangement”, and
(b)
for “trustees or managers of” there is substituted “person responsible for”.

(6) For paragraph (5) there is substituted—

“(5) The order must express the amount of any payment required to be made by virtue of paragraph (4) as a percentage of the payment which becomes due to the party with pension rights.”.

(7) In paragraph (6)—

(a)for “trustees or managers”, in the first place where those words occur, there is substituted “person responsible for the arrangement”, and

(b)for “the trustees or managers”, in the second place where those words occur, there is substituted “his”.

(8) In paragraph (7)—

(a)for the words from “may require any” to “those benefits” there is substituted “has a right of commutation under the arrangement, the order may require him to exercise it to any extent”,

(b)for “the payment of any amount commuted” there is substituted

“any payment due in consequence of commutation”, and
(c)
for “scheme” there is substituted “arrangement”.

(9) After that paragraph there is added—

“(8) The power conferred by paragraph (7) may not be exercised for the purpose of commuting a benefit payable to the party with pension rights to a benefit payable to the other party.

(9) The power conferred by paragraph (4) or (7) may not be exercised in relation to a pension arrangement which—

(a)is the subject of a pension sharing order in relation to the marriage, or

(b)has been the subject of pension sharing between the parties to the marriage.

(10) In paragraph (1), references to benefits under a pension arrangement include any benefits by way of pension, whether under a pension arrangement or not.”.

2.—(1) Article 27C of that Order is amended as follows.

(2) In paragraph (1), for “scheme” there is substituted “arrangement”.

(3) In paragraph (2)—

(a)in sub-paragraph (a)—

(i)for the words from “trustees” to “have” there is substituted

“person responsible for the pension arrangement in question has”, and
(ii)
for “them” there is substituted “him”, and
(b)
in sub-paragraph (c), for “trustees or managers of the pension scheme” there is substituted “person responsible for the pension arrangement”.

(4) In paragraph (3)—

(a)for “trustees or managers” there is substituted “person responsible for the arrangement”, and

(b)for “the trustees, or managers,” there is substituted “his”.

(5) At the end there is added—

“(4) The powers conferred by this Article may not be exercised in relation to a pension arrangement which—

(a)is the subject of a pension sharing order in relation to the marriage, or

(b)has been the subject of pension sharing between the parties to the marriage.”.

3.—(1) Article 27D of that Order is amended as follows.

(2) For paragraph (1) there is substituted—

“(1) Where—

(a)an order made under Article 25 by virtue of Article 27B or 27C imposes any requirement on the person responsible for a pension arrangement (“the first arrangement”) and the party with pension rights acquires rights under another pension arrangement (“the new arrangement”) which are derived (directly or indirectly) from the whole of his rights under the first arrangement, and

(b)the person responsible for the new arrangement has been given notice in accordance with regulations made by the Lord Chancellor,

the order shall have effect as if it had been made instead in respect of the person responsible for the new arrangement.”.

(3) In paragraph (2)—

(a)for “Regulations may” there is substituted “The Lord Chancellor may by regulations”,

(b)in sub-paragraph (a) for “trustees or managers of a pension scheme” there is substituted “person responsible for a pension arrangement”,

(c)after that sub-paragraph there is inserted—

“(aa)make, in relation to payment under a mistaken belief as to the continuation in operation of a provision included by virtue of Article 27B or 27C in an order under Article 25, provision about the rights or liabilities of the payer, the payee or the person to whom the payment was due;”,

(d)after sub-paragraph (b) there is inserted—

“(ba)make provision for the person responsible for a pension arrangement to be discharged in prescribed circumstances from a requirement imposed by virtue of Article 27B or 27C;”,

(e)sub-paragraphs (c) and (d) are omitted,

(f)for sub-paragraph (e) there is substituted—

“(e)make provision about calculation and verification in relation to the valuation of—

(i)benefits under a pension arrangement, or

(ii)shareable state scheme rights,

for the purposes of the court’s functions in connection with the exercise of any of its powers under this Part.”, and

(g)the words after sub-paragraph (e) are omitted.

(4) After that paragraph there is inserted—

“(2A) Regulations under paragraph (2)(e) may include—

(a)provision for calculation or verification in accordance with guidance from time to time prepared by a prescribed person, and

(b)provision by reference to regulations under Article 27 or 46(4) of the Welfare Reform and Pensions (Northern Ireland) Order 1999.

(2B) Regulations under this Article shall be subject to annulment in pursuance of a resolution of either House of Parliament in like manner as a statutory instrument and section 5 of the Statutory Instruments Act 1946 shall apply accordingly.”.

(5) For paragraphs (3) and (4) there is substituted—

“(3) In this Article and Articles 27B and 27C—

“occupational pension scheme” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;
“the party with pension rights” means the party to the marriage who has or is likely to have benefits under a pension arrangement and
“the other party” means the other party to the marriage;
“pension arrangement” means—
(a)
an occupational pension scheme,
(b)
a personal pension scheme,
(c)
a retirement annuity contract,
(d)
an annuity or insurance policy purchased, or transferred, for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, and
(e)
an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension 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;
“personal pension scheme” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;
“prescribed” means prescribed by regulations;
“retirement annuity contract” means a contract or scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988;
“shareable state scheme rights” has the same meaning as in Article 23A(1); and
“trustees or managers”, in relation to an occupational pension scheme or a personal pension scheme, means—
(a)
in the case of a scheme established under a trust, the trustees of the scheme, and
(b)
in any other case, the managers of the scheme.

(4) In this Article and Articles 27B and 27C, references to the person responsible for a pension arrangement are—

(a)in the case of an occupational pension scheme or a personal pension scheme, to the trustees or managers of the scheme,

(b)in the case of a retirement annuity contract or an annuity falling within paragraph (d) or (e) of the definition of “pension arrangement”, the provider of the annuity, and

(c)in the case of an insurance policy falling within paragraph (d) of the definition of that expression, the insurer.”.

Article 32.

SCHEDULE 5PENSION CREDITS: MODE OF DISCHARGE

Funded pension schemes

1.—(1) This paragraph applies to a pension credit which derives from—

(a)a funded occupational pension scheme, or

(b)a personal pension scheme.

(2) The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit—

(a)with his consent, or

(b)in accordance with regulations made by the Department.

(3) The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a)the qualifying arrangement is not disqualified as a destination for the credit,

(b)the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c)payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.

(4) For the purposes of sub-paragraph (2), no account is to be taken of the consent of the person entitled to the pension credit unless—

(a)it is given after receipt of notice in writing of an offer to discharge liability in respect of the credit by making a payment under sub-paragraph (3), or

(b)it is not withdrawn within 7 days of receipt of such notice.

Unfunded public service pension schemes

2.—(1) This paragraph applies to a pension credit which derives from an occupational pension scheme which is—

(a)not funded, and

(b)a public service pension scheme.

(3) If such a scheme as is mentioned in sub-paragraph (1) is closed to new members, the appropriate authority in relation to that scheme may by regulations specify another public service pension scheme as an alternative to it for the purposes of this paragraph.

(4) Where the trustees or managers of a scheme in relation to which an alternative is specified under sub-paragraph (3) are subject to liability in respect of a pension credit, they may—

(a)discharge their liability in respect of the credit by securing that appropriate rights are conferred on the person entitled to the credit by the trustees or managers of the alternative scheme, and

(b)for the purpose of so discharging their liability, require the trustees or managers of the alternative scheme to take such steps as may be required.

(5) In sub-paragraph (3), “the appropriate authority”, in relation to a public service pension scheme, means such Minister of the Crown or government department as may be designated by the Treasury or the Department of Finance and Personnel as having responsibility for the scheme.

Other unfunded occupational pension schemes

3.—(1) This paragraph applies to a pension credit which derives from an occupational pension scheme which is—

(a)not funded, and

(b)not a public service pension scheme.

(a)the qualifying arrangement is not disqualified as a destination for the credit,

(b)the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c)payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.

Other pension arrangements

4.—(1) This paragraph applies to a pension credit which derives from—

(a)a retirement annuity contract,

(b)an annuity or insurance policy purchased or transferred for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, or

(c)an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit.

(2) The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a)the qualifying arrangement is not disqualified as a destination for the credit,

(b)the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c)payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Department.

(3) The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by entering into an annuity contract with the person entitled to the credit if the contract is not disqualified as a destination for the credit.

(4) The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may, in such circumstances as the Department may prescribe by regulations, discharge his liability in respect of the credit by assuming an obligation to provide an annuity for the person entitled to the credit.

(5) In sub-paragraph (1)(c), “pension credit” includes a credit under section 29(1)(b) of the Welfare Reform Act.

Appropriate rights

5. For the purposes of this Schedule, rights conferred on the person entitled to a pension credit are appropriate if—

(a)they are conferred with effect from, and including, the day on which the order, or provision, under which the credit arises takes effect, and

(b)their value, when calculated in accordance with regulations made by the Department, equals the amount of the credit.

Qualifying arrangements

6.—(1) The following are qualifying arrangements for the purposes of this Schedule—

(a)an occupational pension scheme,

(b)a personal pension scheme,

(c)an appropriate annuity contract,

(d)an appropriate policy of insurance, and

(e)an overseas arrangement within the meaning of the Contracting-out (Transfer and Transfer Payment) Regulations (Northern S.R. 1996/618. Ireland) 1996.

(2) An annuity contract or policy of insurance is appropriate for the purposes of sub-paragraph (1) if, at the time it is entered into or taken out, the insurance company with which it is entered into or taken out—

(a)is carrying on ordinary long-term insurance business in the United Kingdom or any other member State, and

(b)satisfies such requirements as the Department may prescribe by regulations.

(3) In this paragraph “ordinary long-term insurance business” has the same meaning as in the[1982 c. 50.] Insurance Companies Act 1982.

Disqualification as destination for pension credit

7.—(1) If a pension credit derives from a pension arrangement which is approved for the purposes of Part XIV of the[1988 c. 1.] Income and Corporation Taxes Act 1988, an arrangement is disqualified as a destination for the credit unless—

(a)it is also approved for those purposes, or

(b)it satisfies such requirements as the Department may prescribe by regulations.

(2) If the rights by reference to which the amount of a pension credit is determined are or include contracted-out rights or safeguarded rights, an arrangement is disqualified as a destination for the credit unless—

(a)it is of a description prescribed by the Department by regulations, and

(b)it satisfies such requirements as the Department may so prescribe.

(3) An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Department, equals the credit.

(4) An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Department may prescribe by regulations.

(5) The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of the Inland Revenue.

(6) In sub-paragraph (2)—

“contracted-out rights” means such rights under, or derived from—
(a)
an occupational pension scheme contracted-out by virtue of section 5(2) or (3) of the Pension Schemes Act, or
(b)
a personal pension scheme which is an appropriate scheme for the purposes of that Act, as the Department may prescribe by regulations;
“safeguarded rights” has the meaning given by section 64A of the Pension Schemes Act.

Adjustments to amount of pension credit

8.—(1) If—

(a)a pension credit derives from an occupational pension scheme,

(b)the scheme is one to which Article 56 of the Pensions Order (minimum funding requirement for funded salary related schemes) applies,

(c)the scheme is underfunded on the valuation day, and

(d)such circumstances as the Department may prescribe by regulations apply,

paragraph 1(3) shall have effect in relation to the credit as if the reference to the amount of the credit were to such lesser amount as may be determined in accordance with regulations made by the Department.

(2) Whether a scheme is underfunded for the purposes of sub-paragraph (1)(c) shall be determined in accordance with regulations made by the Department.

(3) For the purposes of that provision, the valuation day is the day by reference to which the cash equivalent on which the amount of the pension credit depends falls to be calculated.

9. If—

(a)a person’s shareable rights under a pension arrangement have become subject to a pension debit, and

(b)the person responsible for the arrangement makes a payment which is referable to those rights without knowing of the pension debit,

this Schedule shall have effect as if the amount of the corresponding pension credit were such lesser amount as may be determined in accordance with regulations made by the Department.

10. The Department may by regulations make provision for paragraph 1(3), 3(3) or 4(2) to have effect, where payment is made after the end of the implementation period for the pension credit, as if the reference to the amount of the credit were to such larger amount as may be determined in accordance with the regulations.

General

11. Liability in respect of a pension credit shall be treated as discharged if the effect of paragraph 8(1) or 9 is to reduce it to zero.

12. Liability in respect of a pension credit may not be discharged otherwise than in accordance with this Schedule.

13. Regulations under paragraph 5(b) or 7(3) may provide for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the regulations.

14. In this Schedule—

“funded”, in relation to an occupational pension scheme, means that the scheme meets its liabilities out of a fund accumulated for the purpose during the life of the scheme;
“public service pension scheme” has the same meaning as in the Pension Schemes Act.

Article 47.

SCHEDULE 6EFFECT OF STATE SCHEME PENSION DEBITS AND CREDITS

1. The Contributions and Benefits Act is amended as follows.

2. After section 45A there is inserted—

“Reduction of additional pension in Category A retirement pension: pension sharing.

45B.—(1) The weekly rate of the additional pension in a Category A retirement pension shall be reduced as follows in any case where—

(a)the pensioner has become subject to a state scheme pension debit, and

(b)the debit is to any extent referable to the additional pension.

(2) If the pensioner became subject to the debit in or after the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount.

(3) If the pensioner became subject to the debit before the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount multiplied by the relevant revaluation percentage.

(4) The appropriate weekly amount for the purposes of subsections (2) and (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pension mentioned in subsection (5) below is equal to so much of the debit as is referable to the additional pension.

(5) The pension referred to above is a notional pension for the pensioner by virtue of section 44(3)(b) above which becomes payable on the later of—

(a)his attaining pensionable age, and

(b)the valuation day.

(6) For the purposes of subsection (3) above, the relevant revaluation percentage is the percentage specified, in relation to earnings factors for the tax year in which the pensioner became subject to the debit, by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.

(7) Cash equivalents for the purposes of this section shall be calculated in accordance with regulations.

(8) In this section—

“final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age;

“state scheme pension debit” means a debit under Article 46(1)(a) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (debit for the purposes of this Part of this Act);

“valuation day” means the day on which the pensioner became subject to the state scheme pension debit.”.

3. After section 55 there is inserted—

“Shared additional pension

Shared additional pension.

55A.—(1) A person shall be entitled to a shared additional pension if he is—

(a)over pensionable age, and

(b)entitled to a state scheme pension credit.

(2) A person’s entitlement to a shared additional pension shall continue throughout his life.

(3) The weekly rate of a shared additional pension shall be the appropriate weekly amount, unless the pensioner’s entitlement to the state scheme pension credit arose before the final relevant year, in which case it shall be that amount multiplied by the relevant revaluation percentage.

(4) The appropriate weekly amount for the purposes of subsection (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pensioner’s entitlement, or prospective entitlement, to the shared additional pension is equal to the state scheme pension credit.

(5) The relevant revaluation percentage for the purposes of that subsection is the percentage specified, in relation to earnings factors for the tax year in which the entitlement to the state scheme pension credit arose, by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.

(6) Cash equivalents for the purposes of this section shall be calculated in accordance with regulations.

(7) In this section—

“final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age;

“state scheme pension credit” means a credit under Article 46(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (credit for the purposes of this Part of this Act);

“valuation day” means the day on which the pensioner becomes entitled to the state scheme pension credit.

Reduction of shared additional pension: pension sharing.

55B.—(1) The weekly rate of a shared additional pension shall be reduced as follows in any case where—

(a)the pensioner has become subject to a state scheme pension debit, and

(b)the debit is to any extent referable to the pension.

(2) If the pensioner became subject to the debit in or after the final relevant year, the weekly rate of the pension shall be reduced by the appropriate weekly amount.

(5) The pension referred to above is a notional pension for the pensioner by virtue of section 55A above which becomes payable on the later of—

(a)his attaining pensionable age, and

(b)the valuation day.

(7) Cash equivalents for the purposes of this section shall be calculated in accordance with regulations.

(8) In this section—

“final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age;

“state scheme pension debit”, means a debit under Article 46(1)(a) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (debit for the purposes of this Part of this Act);

“valuation day” means the day on which the pensioner became subject to the state scheme pension debit.

Increase of shared additional pension where entitlement is deferred.

55C.—(1) For the purposes of this section, a person’s entitlement to a shared additional pension is deferred—

(a)where he would be entitled to a Category A or Category B retirement pension but for the fact that his entitlement to such a pension is deferred, if and so long as his entitlement to such a pension is deferred, and

(b)otherwise, if and so long as he does not become entitled to the shared additional pension by reason only of not satisfying the conditions of section 1 of the Administration Act (entitlement to benefit dependent on claim),

and, in relation to a shared additional pension, “period of deferment” shall be construed accordingly.

(2) Where a person’s entitlement to a shared additional pension is deferred, the rate of his shared additional pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under subsection (3) below, but only if that amount is enough to increase the rate of the pension by at least one per cent.

(3) A person is entitled to an increment under this subsection for each complete incremental period in his period of enhancement.

(4) The amount of the increment for an incremental period shall be 1/7th per cent. of the weekly rate of the shared additional pension to which the person would have been entitled for the period if his entitlement had not been deferred.

(5) Amounts under subsection (4) above shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.

(6) Where an amount under subsection (4) above would, apart from this subsection, be a sum less than 1/2p, the amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions (Northern Ireland) Order 1995 or the Administration Act.

(7) Where one or more orders have come into operation under section 132 of the Administration Act during the period of enhancement, the rate for any incremental period shall be determined as if the order or orders had come into operation before the beginning of the period of enhancement.

(8) The sums which are the increases in the rates of shared additional pensions under this section are subject to alteration by order made by the Department under section 132 of the Administration Act.

(9) In this section—

“incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this section in relation to the person and pension in question; and

“period of enhancement”, in relation to that person and that pension, means the period which—

(a)

begins on the same day as the period of deferment in question, and

(b)

ends on the same day as that period or, if earlier, on the day before the 5th anniversary of the beginning of that period.”.

Article 56.

SCHEDULE 7JOINT CLAIMS FOR JOBSEEKER'S ALLOWANCE

Jobseekers (Northern Ireland) Order 1995 (NI 15)

1. The Jobseekers (Northern Ireland) Order 1995 has effect subject to the following amendments.

2.—(1) Article 2 (interpretation) is amended as follows.

(2) In the definition of “claimant”, at the end insert “except that in relation to a joint-claim couple claiming a joint-claim jobseeker’s allowance it means the couple, or each member of the couple, as the context requires;”.

(3) After the definition of “jobseeking period” insert—

““joint-claim couple” and “joint-claim jobseeker’s allowance” have the meanings given by Article 3(4);”.

(4) After the definition of “National Insurance Fund” insert—

““the nominated member”, in relation to a joint-claim couple, shall be construed in accordance with Article 5B(4);”.

3.—(1) Article 3 (entitlement to jobseeker’s allowance) is amended as follows.

(2) In paragraph (2) (conditions of entitlement), for sub-paragraph (d) (claimant must satisfy conditions set out in Article 4 or 5) substitute—

“(d)satisfies the conditions set out in Article 4;”.

(3) After paragraph (2) insert—

“(2A) Subject to the provisions of this Order, a claimant who is not a member of a joint-claim couple is entitled to a jobseeker’s allowance if he satisfies—

(a)the conditions set out in sub-paragraphs (a) to (c) and (e) to (i) of paragraph (2); and

(b)the conditions set out in Article 5.

(2B) Subject to the provisions of this Order, a joint-claim couple are entitled to a jobseeker’s allowance if—

(a)a claim for the allowance is made jointly by the couple;

(b)each member of the couple satisfies the conditions set out in sub-paragraphs (a) to (c) and (e) to (i) of paragraph (2); and

(c)the conditions set out in Article 5A are satisfied in relation to the couple.

(2C) Regulations may prescribe circumstances in which paragraph (2A) is to apply to a claimant who is a member of a joint-claim couple.

(2D) Regulations may, in respect of cases where a person would (but for the regulations) be a member of two or more joint-claim couples, make provision for only one of those couples to be a joint-claim couple; and the provision which may be so made includes provision for the couple which is to be the joint-claim couple to be nominated—

(a)by the persons who are the members of the couples, or

(b)in default of one of the couples being so nominated, by the Department.”.

(4) In paragraph (4)—

(a)in the definition of “an income-based jobseeker’s allowance”, at the end insert “or a joint-claim jobseeker’s allowance;” and

(b)after that definition insert—

““a joint-claim couple” means a married or unmarried couple who—
(a)
are not members of any family whose members include a person in respect of whom a member of the couple is entitled to child benefit, and
(b)
are of a prescribed description;
“a joint-claim jobseeker’s allowance” means a jobseeker’s allowance entitlement to which arises by virtue of paragraph (2B).”.

4. In Article 4(1) (the contribution-based conditions), for “Article 3(2)(d)(i)” substitute “Article 3(2)(d)”.

5.—(1) In paragraph (1) of Article 5 (the income-based conditions), for

“Article 3(2)(d)(ii)” substitute “Article 3(2A)(b)”.

(2) After that Article insert—

“The conditions for claims by joint-claim couples

5A.—(1) The conditions referred to in Article 3(2B)(c) are—

(a)that the income of the joint-claim couple does not exceed the applicable amount (determined in accordance with regulations under Article 6) or the couple have no income;

(b)that no member of a family of which the couple are members is entitled to income support;

(c)that no member of any such family (other than the couple) is entitled to an income-based jobseeker’s allowance;

(d)that at least one member of the couple has reached the age of 18; and

(e)that if only one member of the couple has reached the age of 18, the other member of the couple is a person—

(i)in respect of whom a direction under Article 18 is in force; or

(ii)who has, in prescribed circumstances to be taken into account for a prescribed period, reached the age of 16.

(2) Paragraphs (2) and (4) of Article 5 shall apply in relation to a member of the couple to whom paragraph (1)(e)(i) or (ii) applies as they apply in relation to a claimant to whom paragraph (1)(f)(ii) or (iii) of that Article applies.

(3) In paragraph (1)(e)(ii) “period” shall be construed in accordance with Article 5(3).

Joint-claim couples: the nominated member

5B.—(1) Where a joint-claim couple make a claim for a joint-claim jobseeker’s allowance, they may nominate one of them as the member of the couple to whom the allowance is to be payable.

(2) In default of one of them being so nominated, the allowance shall be payable to whichever of them is nominated by the Department.

(3) Paragraphs (1) and (2) have effect subject to Article 6A(4) and (7).

(4) In this Order references to the nominated member of a joint-claim couple are, except where Article 22A(7) applies, to the member of the couple nominated under paragraph (1) or (2); and where Article 22A(7) applies, references to the nominated member of such a couple are to the member of the couple to whom Article 22A(7) provides for the allowance to be payable.

(5) Nothing in this Article or Article 22A(7) affects the operation of any statutory provision by virtue of which any amount of the allowance is required or authorised to be paid to someone other than the nominated member of the couple.”.

6.—(1) Article 6 (amount of jobseeker’s allowance) is amended as follows.

(2) In paragraph (3) (amount payable in respect of an income-based jobseeker’s allowance), after “allowance” insert “(other than a joint-claim jobseeker’s allowance)”.

(3) After paragraph (3) insert—

“(3A) In the case of a joint-claim jobseeker’s allowance, the amount payable in respect of a joint-claim couple shall be—

(a)if the couple have no income, the applicable amount;

(b)if the couple have an income, the amount by which the applicable amount exceeds the couple’s income.”.

(4) After paragraph (11) insert—

“(11A) In paragraphs (6) to (11) “claimant” does not include—

(a)a joint-claim couple, or

(b)a member of such a couple (other than a person to whom regulations under Article 3(2C) apply);

but Article 6A, which contains corresponding provisions relating to joint-claim couples, applies instead.”.

7. After Article 6 insert—

“Amount payable in respect of joint-claim couple

6A.—(1) This Article applies where—

(a)a joint-claim couple are entitled to a joint-claim jobseeker’s allowance, and

(b)one or each of the members of the couple is in addition entitled to a contribution-based jobseeker’s allowance;

and in such a case the provisions of this Article have effect in relation to the couple in place of Article 6(3A).

(2) If a joint-claim couple falling within paragraph (1) have no income, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be—

(a)the applicable amount, if that is greater than the couple’s personal rate; and

(b)the couple’s personal rate, if it is not.

(3) Where the amount payable in accordance with paragraph (2) is the applicable amount, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be taken to consist of two elements—

(a)one being an amount equal to the couple’s personal rate; and

(b)the other being an amount equal to the excess of the applicable amount over the couple’s personal rate.

(4) Where the amount payable in accordance with paragraph (2) is the couple’s personal rate, then—

(a)if each member of the couple is entitled to a contribution-based jobseeker’s allowance, an amount equal to the member’s own personal rate shall be payable in respect of the member by way of such an allowance;

(b)if only one of them is so entitled, an amount equal to that member’s personal rate shall be payable in respect of the member by way of such an allowance;

and in either case nothing shall be payable in respect of the couple by way of a joint-claim jobseeker’s allowance.

(5) If a joint-claim couple falling within paragraph (1) have an income, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be—

(a)the amount by which the applicable amount exceeds the couple’s income, if the amount of that excess is greater than the couple’s personal rate; and

(b)the couple’s personal rate, if it is not.

(6) Where the amount payable in accordance with paragraph (5) is the amount by which the applicable amount exceeds the couple’s income, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be taken to consist of two elements—

(a)one being an amount equal to the couple’s personal rate; and

(b)the other being an amount equal to the amount by which the difference between the applicable amount and the couple’s income exceeds the couple’s personal rate.

(7) Where the amount payable in accordance with paragraph (5) is the couple’s personal rate, paragraph (4) shall apply as it applies in a case where the amount payable in accordance with paragraph (2) is that rate.

(8) The element of a jobseeker’s allowance mentioned in paragraph (3)(a) and that mentioned in paragraph (6)(a) shall be treated, for the purpose of identifying the source of the allowance, as attributable—

(a)in a case where only one member of the joint-claim couple is entitled to a contribution-based jobseeker’s allowance, to that member’s entitlement to such an allowance; and

(b)in a case where each member of the couple is entitled to a contribution-based jobseeker’s allowance, rateably according to their individual entitlements to such an allowance.

(9) The element of a jobseeker’s allowance mentioned in paragraph (3)(b) and that mentioned in paragraph (6)(b) shall be treated, for the purpose of identifying the source of the allowance, as attributable to the couple’s entitlement to a joint-claim jobseeker’s allowance.

(10) In this Article “the couple’s personal rate”, in relation to a joint-claim couple, means—

(a)where only one member of the couple is entitled to a contribution-based jobseeker’s allowance, that member’s personal rate;

(b)where each member of the couple is entitled to such an allowance, the aggregate of their personal rates.”.

8.—(1) Article 10 (power to make regulations requiring attendance etc.) is amended as follows.

(2) In paragraph (1), after “claimant” insert “(other than a joint-claim couple claiming a joint-claim jobseeker’s allowance)”.

(3) After paragraph (1) insert—

“(1A) Regulations may make provision—

(a)for requiring each member of a joint-claim couple claiming a joint-claim jobseeker’s allowance to attend at such place and such time as the Department, or any other Department, may specify;

(b)for requiring a member of such a couple to provide information and such evidence as may be prescribed as to his circumstances, his availability for employment and the extent to which he is actively seeking employment;

(c)for requiring such a couple to jointly provide information and such evidence as may be prescribed as to the circumstances of each or either member of the couple, the availability for employment of each or either member of the couple and the extent to which each or either member of the couple is actively seeking employment;

(d)where any requirement to provide information or evidence is imposed on such a couple by virtue of sub-paragraph (c), for the joint obligation of the couple to be capable of being discharged by the provision of the information or evidence by one member of the couple.”.

(4) In paragraph (2), after “Regulations under paragraph (1)” insert “or (1A)”.

(5) In paragraph (2)(a) (cases where entitlement to allowance may cease on account of non-compliance), after “in the case of a claimant who” insert “, or (as the case may be) a joint-claim couple claiming a joint-claim jobseeker’s allowance a member of which,”.

(6) In paragraph (2)(b) (cases where entitlement to allowance may cease by reference to the time expired since the claimant’s last attendance)—

(a)after “he” insert “or, as the case may be, a member of the joint-claim couple”; and

(b)after “paragraph (1)(a)” insert “or (1A)(a)”.

(7) For sub-paragraph (c) of paragraph (2) (provision for entitlement not to cease where good cause shown) substitute—

“(c)provide for entitlement not to cease if the claimant or (as the case may be) either member of the joint-claim couple shows, within a prescribed period of the failure to comply on the part of the claimant or (as the case may be) a member of the couple, that the claimant or (as the case may be) the defaulting member of the couple had good cause for that failure; and”.

9. In Article 11(12) (jobseeker’s agreement ends when allowance ends), at the end insert “or to a joint-claim couple of which he is a member.”.

10.—(1) Article 15 (income and capital for the purposes of an income-based allowance) is amended as follows.

(2) After paragraph (2) insert—

“(2A) Paragraphs (1) and (2) do not apply as regards a joint-claim jobseeker’s allowance; but a joint-claim couple shall not be entitled to a joint-claim jobseeker’s allowance if the couple’s capital, or a prescribed part of it, exceeds the prescribed amount.

(2B) Where a joint-claim couple claim a joint-claim jobseeker’s allowance—

(a)the couple’s income and capital includes the separate income and capital of each of them; and

(b)the income and capital of any other person who is a member of any family of which the couple are members shall, except in prescribed circumstances, be treated as income and capital of the couple.”.

(3) In paragraph (3) (treating capital as income), after “paragraph (1)” insert “or (2A)”.

11. After Article 17 (effect on family of one member being involved in a trade dispute) insert—

“Trade disputes: joint-claim couples

17A.—(1) Articles 16 and 17 shall, in relation to a joint-claim couple claiming a joint-claim jobseeker’s allowance, apply in accordance with this Article.

(2) Where each member of the couple is prevented by Article 16 from being entitled to a jobseeker’s allowance, the couple are not entitled to a joint-claim jobseeker’s allowance.

(3) But where only one member of the couple is prevented by that Article from being entitled to a jobseeker’s allowance, the couple are not for that reason alone prevented from being entitled to a joint-claim jobseeker’s allowance.

(4) Article 17(1) does not have effect in relation to the couple but, except in prescribed circumstances, Article 17(2) applies for the purposes of calculating the couple’s entitlement to a joint-claim jobseeker’s allowance where—

(a)a member of the couple, or

(b)any other person who is a member of any family of which the couple are members,

is, or would be, prevented by Article 16 from being entitled to a jobseeker’s allowance.

(5) Where Article 17(2) applies in relation to the couple by virtue of paragraph (4), that provision and Article 17(4) apply with the following modifications—

(a)references to the claimant are to be taken as references to the couple;

(b)references to “A” are to the person mentioned in paragraph (4)(a) or (b);

(c)Article 17(2)(b) has effect as if for “where the claimant and A are a married or unmarried couple,” there were substituted “where A is a member of the couple,”; and

(d)Article 17(2)(c)(ii) has effect as if for “of his family” there were substituted “of any family of which the couple are members”.”.

12. In Article 19 (reduction of allowance payable to young persons), after paragraph (1) insert—

“(1A) Regulations may provide for the amount of a joint-claim jobseeker’s allowance payable in respect of any joint-claim couple where a member of the couple is a young person to whom this Article applies to be reduced—

(a)in such circumstances,

(b)by such a percentage, and

(c)for such a period,

as may be prescribed.”.

13. In Article 21 (allowance not payable though conditions for entitlement are satisfied), after paragraph (1) insert—

“(1A) Subject to Article 22A(9), this Article does not apply as regards a joint-claim jobseeker’s allowance (but Articles 22A and 22B make, in relation to such an allowance, provision corresponding to that made by this Article and Article 22).”.

14. After Article 22 insert—

“Denial or reduction of joint-claim jobseeker’s allowance

22A.—(1) Where this Article applies to a member of a joint-claim couple, that member of the couple shall be subject to sanctions for the purposes of this Article.

(2) This Article applies to a member of a joint-claim couple if that member of the couple—

(a)has, without good cause, refused or failed to carry out any jobseeker’s direction which was reasonable, having regard to his circumstances;

(b)has, without good cause—

(i)neglected to avail himself of a reasonable opportunity of a place on a training scheme or employment programme;

(ii)after a place on such a scheme or programme has been notified to him by an employment officer as vacant or about to become vacant, refused or failed to apply for it or to accept it when offered to him;

(iii)given up a place on such a scheme or programme; or

(iv)failed to attend such a scheme or programme on which he has been given a place;

(c)has lost his place on such a scheme or programme through misconduct;

(d)has lost his employment as an employed earner through misconduct;

(e)has voluntarily left such employment without just cause;

(f)has, without good cause, after a situation in any employment has been notified to him by an employment officer as vacant or about to become vacant, refused or failed to apply for it or to accept it when offered to him; or

(g)has, without good cause, neglected to avail himself of a reasonable opportunity of employment.

(3) Where this Article applies to a member of a joint-claim couple by virtue of any of sub-paragraphs (a) to (c) of paragraph (2), the period for which he is to be subject to sanctions shall be such period (of at least one week but not more than 26 weeks) as may be prescribed.

(4) Where this Article applies to a member of a joint-claim couple by virtue only of any of sub-paragraphs (d) to (g) of paragraph (2), the period for which he is to be subject to sanctions shall be such period (of at least one week but not more than 26 weeks) as may be determined by the Department.

(5) Even though the conditions for entitlement to a joint-claim jobseeker’s allowance are satisfied in relation to a joint-claim couple—

(a)the allowance shall not be payable for any period during which both members of the couple are subject to sanctions; and

(b)the amount of the allowance payable in respect of the couple for any period during which only one member of the couple is subject to sanctions shall be reduced to an amount calculated by the prescribed method (“the reduced amount”).

(6) The method prescribed for calculating the reduced amount may, in particular, involve—

(a)deducting amounts from, or making percentage reductions of, the amount which would be the amount of the allowance if neither member of the couple were subject to sanctions;

(b)disregarding portions of the applicable amount;

(c)treating amounts as being income or capital of the couple.

(7) During any period for which the amount of a joint-claim jobseeker’s allowance payable in respect of a joint-claim couple is the reduced amount, the allowance shall be payable to the member of the couple who is not subject to sanctions.

(8) Regulations may prescribe—

(a)circumstances which the Department is to take into account, and

(b)circumstances which it is not to take into account,

in determining a period under paragraph (4).

(9) Paragraphs (7) to (10) of Article 21 apply for the purposes of this Article as for those of that Article but as if references in paragraph (10)(b) of that Article to the claimant were to the member of the joint-claim couple to whom paragraph (2)(a) applies.

Exemptions from Article 22A

22B.—(1) Article 22A shall not be taken to apply to a member of a joint-claim couple merely because he has refused to seek or accept employment in a situation which is vacant in consequence of a stoppage of work due to a trade dispute.

(2) Article 22A does not apply to a member of a joint-claim couple by virtue of any of sub-paragraphs (a) to (c) of paragraph (2) of that Article if—

(a)a direction is in force under Article 18 with respect to that member of the couple; and

(b)he has acted in such a way as to risk—

(i)having that direction revoked under paragraph (3)(b) of Article 18, or

(ii)having the amount of the couple’s entitlement to a joint-claim jobseeker’s allowance reduced by virtue of Article 19 because the condition in Article 19(3)(b) or (c) is established.

(3) Regulations shall make provision for the purpose of enabling any person of a prescribed description to accept any employed earner’s employment without Article 22A applying to him by virtue of sub-paragraph (e) or (g) of paragraph (2) of that Article should he leave that employment voluntarily and without just cause at any time during a trial period.

(4) In such circumstances as may be prescribed, a joint-claim jobseeker’s allowance shall be payable in respect of a joint-claim couple even though Article 22A(5)(a) prevents payment of such a jobseeker’s allowance to the couple.

(5) A jobseeker’s allowance shall be payable by virtue of paragraph (4) only if the couple have complied with such requirements as to the provision of information as may be prescribed for the purposes of this paragraph.

(6) Regulations under paragraph (4) may, in particular, provide for a jobseeker’s allowance payable by virtue of that paragraph to be—

(a)payable at a prescribed rate;

(b)payable for a prescribed period (which may differ from the period during which both members of the couple are subject to sanctions for the purposes of Article 22A).

(7) In paragraph (3), “trial period” has such meaning as may be prescribed.

(8) Regulations may make provision for determining, for the purposes of this Article, the day on which a person’s employment is to be regarded as commencing.”.

15.—(1) Article 32 (termination of awards where another entitlement exists) is amended as follows.

(2) In paragraph (1) (termination of award of income support where there will be an entitlement to a jobseeker’s allowance), after “or where he is a member of a married or unmarried couple his partner” insert “or the couple”.

(3) In paragraph (2) (termination of award of a jobseeker’s allowance where there will be an entitlement to income support), after “or where he is a member of a married or unmarried couple his partner,” insert “or where the award was made to a couple a member of the couple,”.

16.—(1) Schedule 1 (jobseeker’s allowance: supplementary provisions) is amended as follows.

(2) After paragraph 8 (entitlement without satisfying conditions) insert—

“8A.—(1) Regulations may prescribe circumstances in which a joint-claim couple may be entitled to a joint-claim jobseeker’s allowance without each member of the couple satisfying all the conditions referred to in Article 3(2B)(b).

(2) Regulations may prescribe circumstances in which, and a period for which, a transitional case couple may be entitled to a joint-claim jobseeker’s allowance without having jointly made a claim for it.

(3) In sub-paragraph (2)—

(a)“a transitional case couple” means a joint-claim couple a member of which is entitled to an income-based jobseeker’s allowance on the coming into operation of Schedule 7 to the Welfare Reform and Pensions (Northern Ireland) Order 1999; and

(b)“period” shall be construed in accordance with Article 5(3).”.

(3) In paragraph 9(a) (rate of allowance payable under paragraph 8), after “paragraph 8” insert “or 8A”.

(4) After paragraph 9 insert—

“Continuity of claims and awards: persons ceasing to be a joint-claim couple

9A.—(1) Regulations may make provision about the entitlement to a jobseeker’s allowance of persons (“ex-members”) who cease to be members of a joint-claim couple.

(2) Regulations under this paragraph may, in particular, provide—

(a)for treating each or either of the ex-members as having made any claim made by the couple or, alternatively, for any such claim to lapse;

(b)for any award made in respect of the couple to be replaced by an award (a “replacement award”) in respect of each or either of the ex-members of the couple or, alternatively, for any such award to lapse.

Continuity of claims and awards: persons again becoming a joint-claim couple

9B.—(1) Regulations may make provision about the entitlement to a jobseeker’s allowance of persons (“ex-members”) who, having ceased to be members of a joint-claim couple, again become the members of a joint-claim couple.

(2) Regulations under this paragraph may, in particular, provide—

(a)for any claim made by the ex-members when they were previously a joint-claim couple to be revived or otherwise given effect as a claim made by the couple;

(b)for any award made in respect of the ex-members when they were previously a joint-claim couple to be restored;

(c)for any such award, or any replacement award (within the meaning of paragraph 9A) made in respect of either of them, to be replaced by an award (a “new award”) in respect of the couple.

Continuity of claims and awards: couple becoming a joint-claim couple

9C.—(1) Regulations may make provision about the entitlement to a jobseeker’s allowance of persons who become members of a joint-claim couple as a result of the married or unmarried couple of which they are members becoming a joint-claim couple.

(2) Regulations under this paragraph may, in particular, provide—

(a)for any claim made by either member of the couple before the couple became a joint-claim couple to be given effect as a claim made by the couple;

(b)for any award, or any replacement award (within the meaning of paragraph 9A), made in respect of either member of the couple before the couple became a joint-claim couple to be replaced by an award (a “new award”) in respect of the couple.

Paragraphs 9A to 9C: supplementary

9D.—(1) Regulations may provide, in relation to any replacement award (within the meaning of paragraph 9A) or new award (within the meaning of paragraph 9B or 9C)—

(a)for the award to be of an amount determined in a prescribed manner;

(b)for entitlement to the award to be subject to compliance with prescribed requirements as to the provision of information and evidence.

(2) In paragraphs 9A to 9C and this paragraph—

“award” means an award of a jobseeker’s allowance;

“claim” means a claim for a jobseeker’s allowance.”.

(5) For paragraph 10(1) (entitlement before claim determined) substitute—

“(1) In such circumstances as may be prescribed—

(a)a claimant for a jobseeker’s allowance other than a joint-claim jobseeker’s allowance,

(b)a joint-claim couple claiming a joint-claim jobseeker’s allowance, or

(c)a member of such a couple,

may be treated as being entitled to an income-based jobseeker’s allowance before his or (as the case may be) the couple’s claim for the allowance has been determined.”.

(6) In paragraph 10(2) (allowance where payment suspended), for “to a claimant even though payment to him” substitute

“to—
(a)
a claimant of a jobseeker’s allowance other than a joint-claim jobseeker’s allowance,
(b)
a joint-claim couple claiming a joint-claim jobseeker’s allowance, or
(c)
a member of such a couple,
even though payment to him or (as the case may be) the couple”.

(7) In paragraph 10(3) (information to be supplied to obtain payments under sub-paragraph (1) or (2)), after “the claimant” insert “or (as the case may be) the couple or the member of the couple”.

Social Security (Northern Ireland) Order 1998 (NI 10)

17. In Article 39(1) of the Social Security (Northern Ireland) Order 1998 (interpretation of Chapter II of Part II), after the definition of “appeal tribunal” insert—

““claimant”, in relation to a joint-claim couple claiming a joint-claim jobseeker’s allowance (within the meaning of the Jobseekers Order), means the couple or either member of the couple;”.

Article 67.

SCHEDULE 8WELFARE BENEFITS: MINOR AND CONSEQUENTIAL AMENDMENTS

PART IBEREAVEMENT BENEFITS

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

1. The Contributions and Benefits Act has effect subject to the following amendments.

2.—(1) Section 20 (descriptions of contributory benefits) is amended as follows.

(2) In subsection (1)—

(a)in paragraph (e), omit sub-paragraph (i); and

(b)after that paragraph insert—

“(ea)bereavement benefits, comprising—

(i)bereavement payment;

(ii)widowed parent’s allowance (with increase for child dependants);

(iii)bereavement allowance;”.

(3) In subsection (2), in the definition of “long-term benefit”, after paragraph (b) insert—

“(ba)a widowed parent’s allowance;

(bb)a bereavement allowance;”.

3.—(1) Section 21 (contribution conditions) is amended as follows.

(2) In subsection (2)—

(a)for “Widow’s payment” substitute “Bereavement payment”; and

(b)after the entry relating to widowed mother’s allowance insert—

“Widowed parent’s allowance	Class 1, 2 or 3
Bereavement allowance	Class 1, 2 or 3”.

(3) In subsection (4), for “widow’s payment” substitute “bereavement payment”.

4. In section 46(2) (modifications of s. 45 for calculating additional pension in certain benefits)—

(a)after “section 39(1)” insert “or 39C(1)”; and

(b)for “or 48B(2)” substitute “, 48B(2) or 48BB(5)”.

5. In section 48B (Category B retirement pension for widows and widowers), at the end add—

“(8) Nothing in subsections (4) to (7) above applies in a case where the spouse dies on or after the appointed day (as defined by section 36A(3)).”.

6. In section 48C(4) (Category B retirement pension: general), for “or 48B(2)” substitute “, 48B(2) or 48BB(5)”.

7.—(1) Section 60 (partial failure to satisfy contribution conditions) is amended as follows.

(2) In subsection (1), after paragraph (a) insert—

“(aa)a widowed parent’s allowance,

(ab)a bereavement allowance,”.

(3) In subsection (3)—

(a)for paragraph (a) substitute—

“(a)a bereavement payment;”; and

(b)after paragraph (b) insert—

“(ba)a widowed parent’s allowance,

(bb)a bereavement allowance,”; and

(c)in paragraph (d), after “48B” insert “or 48BB”.

8. In section 61(1) (exclusion of increase of benefit for failure to satisfy contribution conditions), after “widowed mother’s allowance” insert “or widowed parent’s allowance”.

9. In section 61A(3) (contributions paid in error)—

(a)at the end of paragraph (b) insert “(payment by virtue of section 48B or 48BB above)”; and

(b)after “widow’s pension,” insert—

“(ca)widowed parent’s allowance,”.

10. In section 80(5) (beneficiary’s dependent children)—

(a)for “payable by virtue of subsection (1)(a) of section 37” substitute “or a widowed parent’s allowance payable by virtue of section 37(1)(a) or (as the case may be) section 39A(2)(a)”; and

(b)for “subsection (2)(a), (b) or (c) of that section” substitute “section 37(2)(a), (b) or (c) or (as the case may be) section 39A(3)(a), (b) or (c)”.

11. In section 146 (interpretation of provisions relating to Christmas bonus), in subsection (1)(c), after “allowance” insert “, widowed parent’s allowance”.

12.—(1) Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.

(2) In paragraph 4(1) (contribution condition for widow’s payment) and in the cross-heading preceding paragraph 4, for “widow’s payment” and

“Widow’s payment” substitute “bereavement payment” and “Bereavement payment” respectively.

(3) In paragraph 5(1) (contribution conditions for widowed mother’s allowance, widow’s pension etc.), after “allowance,” insert “a widowed parent’s allowance, a bereavement allowance,”; and in the cross-heading preceding paragraph 5, after “allowance” insert “, widowed parent’s allowance, bereavement allowance”.

(4) In paragraph 7(1) and (3) (satisfaction of conditions in early years of contribution), for “widow’s payment” substitute “bereavement payment”.

(5) In paragraph 9 (satisfaction of condition where condition for short-term benefit satisfied)—

(a)for “a woman claims a widow’s payment” substitute “a claim is made for a bereavement payment”; and

(b)for “widow’s payment” (in the second place where it occurs) substitute “bereavement payment”.

13. In Part IV of Schedule 4 (increases for dependants) after the entry relating to widowed mother’s allowance insert—

“4A. Widowed parent’s allowance

11.35

–”.

Social Security Administration (Northern Ireland) Act 1992 (c. 8)

14. The Administration Act is amended as follows.

15. In section 1(2)(a) (entitlement to benefit dependent on claim), for

“widow’s payment, she” substitute “bereavement payment, the person”.

16. For section 3 (and the cross-heading preceding it) substitute—

“Bereavement benefits

3. Late claims for bereavement benefit where death is difficult to establish.

(1) This section applies where a person’s spouse has died or maybe presumed to have died on or after the appointed day and the circumstances are such that—

(a)more than 12 months have elapsed since the date of death; and

(b)either—

(i)the spouse’s body has not been discovered or identified or, if it has been discovered and identified, the surviving spouse does not know that fact; or

(ii)less than 12 months have elapsed since the surviving spouse first knew of the discovery and identification of the body.

(2) Where this section applies, notwithstanding that any time prescribed for making a claim for a bereavement benefit in respect of the death has elapsed, then—

(a)in any case falling within paragraph (b)(i) of subsection (1) above, where it has been decided under Article 9 of the Social Security (Northern Ireland) Order 1998 that the spouse has died or is presumed to have died; or

(b)in any case falling within paragraph (b)(ii) of subsection (1) above where the identification was made not more than 12 months before the surviving spouse first knew of the discovery and identification of the body,

such a claim may be made or treated as made at any time before the expiration of the period of 12 months beginning with the date on which that decision was made or, as the case may be, the date on which the surviving spouse first knew of the discovery and identification.

(3) If, in a case where a claim for a bereavement benefit is made or treated as made by virtue of this section, the claimant would, apart from subsection (2) of section 1 above, be entitled to—

(a)a bereavement payment in respect of the spouse’s death more than 12 months before the date on which the claim is made or treated as made; or

(b)any other bereavement benefit in respect of his or her death for a period more than 12 months before that date,

then, notwithstanding anything in that section, the surviving spouse shall be entitled to that payment or, as the case may be, to that other benefit (together with any increase under section 80(5) of the Contributions and Benefits Act).

(4) In subsection (1) above “the appointed day” means the day appointed for the coming into operation of Articles 51 to 53 of the Welfare Reform and Pensions (Northern Ireland) Order 1999.”.

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

17.—(1) Section 42 of the Pension Schemes Act (effect of entitlement to guaranteed minimum pensions on payment of social security benefit) is amended as follows.

(2) In subsection (1), after “widowed mother’s allowance” insert “, a widowed parent’s allowance”.

(3) In subsection (6)(b)(iii), for “or 48B” substitute “, 48B or 48BB”.

Pensions (Northern Ireland) Order 1995 (NI 22)

18.—(1) Article 125 of the Pensions Order (additional pension: calculation of surpluses) is amended as follows.

(2) In paragraph (4), after “paragraphs (5)” insert “, (5A)”.

(3) After paragraph (5) insert—

“(5A) This Article has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Contributions and Benefits Act by virtue of section 39C(1) of that Act (widowed parent’s allowance), including Category B retirement pension payable under section 48BB(2), if the pensioner’s spouse—

(a)dies after 5th April 2000, and

(b)has not attained pensionable age on or before that date.”.

(4) In paragraph (6), for “or 48B(2)” substitute “, 48B(2) or 48BB(5)”.

PART IIINCAPACITY

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

19. The Contributions and Benefits Act has effect subject to the following amendments.

20. In section 21 (contribution conditions)—

(a)in subsection (1), after “other than” insert “short-term incapacity benefit under subsection (1)(b) of section 30A below,” and for

“30A below” substitute “subsection (5) of that section”; and
(b)
in subsection (2), for “30A” substitute “30A(1)(a)”.

21. In section 30B (incapacity benefit: rate), at the end add—

“(8) This section has effect subject to sections 30DD (reduction for pension payments) and 30E (reduction for councillor’s allowance) below.”.

22.—(1) Section 167A (test of incapacity for work) is amended as follows.

(2) After subsection (2) insert—

“(2A) In subsection (2)(a) above the reference to such information or evidence as is there mentioned includes information or evidence capable of being used for assisting or encouraging the person in question to obtain work or enhance his prospects of obtaining it.”.

(3) In subsection (3) (requirement to have medical examination), for “a question arises as to” substitute “it falls to be determined”.

(4) After subsection (4) add—

“(5) All information supplied in pursuance of this section shall be taken for all purposes to be information relating to social security.”.

23. In section 167B(1) (the “own occupation test”), for “the test applicable is the own occupation test” substitute “the own occupation test is applicable in his case.”.

24. In section 172 (Assembly, etc. control of regulations and orders), in subsection (2)(a), after “28(3),” insert “30DD(5)(b) or (c),”.

PART IIIABOLITION OF SEVERE DISABLEMENT ALLOWANCE

Social Security Contributions and Benefits Act (Northern Ireland) 1992 (c. 7)

25. In section 90 of the Contributions and Benefits Act (beneficiaries under sections 68 and 70)—

(a)for the words from “rates” to “allowance, and” substitute “rate”; and

(b)for “the allowance in question” substitute “the allowance”.

PART IVINCOME SUPPORT

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

26. In section 123(1)(f) of the Contributions and Benefits Act (entitlement to income support conditional on claimant and any partner not being entitled to an income-based jobseeker’s allowance), after “the other member of the couple is not” insert “, and the couple are not,”.

PART VJOBSEEKER'S ALLOWANCE

Jobseekers (Northern Ireland) Order 1995 (NI 15)

27.—(1) The Jobseekers (Northern Ireland) Order 1995 is amended as follows.

(2) In Article 6 (amount payable by way of a jobseeker’s allowance), in each of paragraphs (6) and (8) (amount payable where claimant satisfies the contribution-based, and the income-based, conditions)—

(a)for “satisfies both the contribution-based conditions and the income-based conditions” substitute “is entitled to both a contribution-based jobseeker’s allowance and an income-based jobseeker’s allowance”; and

(b)after “the amount payable” insert “by way of a jobseeker’s allowance”.

(3) In Article 10 (attendance, information and evidence)—

(a)in paragraph (1)(a) (power of Department to specify place and time for claimant to attend), for “the Department” substitute “an employment officer”; and

(b)at the end add—

“(3) In paragraph (1) “employment officer” means an officer of the Department, an officer of any other Department, or such other person as may be designated for the purposes of that paragraph by an order made by the Department.”.

(4) In Article 19(1) (reduction of allowance payable to young persons), for

“payable to” substitute “payable in respect of”.

(5) In Article 22(4) (allowance payable to claimant even though Article 21 prevents payment to him), for “payable to” substitute “payable in respect of”.

(6) In Article 37(3) (which specifies orders which are not subject to negative resolution), after “1(2),” insert “10(3),”.

(7) In paragraph 10(2) of Schedule 1 (allowance payable to claimant even though payment to him has been suspended), for “payable to” substitute “payable in respect of”.

PART VIMATERNITY ALLOWANCE

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

28. The Contributions and Benefits Act has effect subject to the following amendments.

29.—(1) Section 21 (contribution conditions) is amended as follows.

(2) In subsection (1), after “30A below” insert “, maternity allowance under section 35 below”.

(3) In subsection (2), omit the entry relating to maternity allowance.

(4) In subsection (4), omit “, other than maternity allowance,”.

30. In section 172(2)(c) (Assembly, etc. control of regulations and orders) after “section 28(2),” insert “35A(7),”.

PART VIIRETIREMENT PENSIONS

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

31. In section 48A of the Contributions and Benefits Act (Category B retirement pension for married person), after subsection (4) insert—

“(4A) Subsection (4) above shall have effect with the omission of the words from “plus” to the end if the pensioner is not the widow or widower of the person by virtue of whose contributions the pension is payable.”.

PART VIIIADMINISTRATION OF BENEFITS

32.—(1) In each of the provisions of the Administration Act to which this paragraph applies—

(a)any reference to a person authorised to exercise any function of the Housing Executive relating to housing benefit shall include a reference to a person providing services to the Housing Executive which relate to that benefit; and

(b)any reference to the exercise of any function relating to such a benefit shall include a reference to the provision of any services so relating.

(2) This paragraph applies to the following provisions of the Administration Act—

(a)section 104A (appointment of inspectors by the Housing Executive);

(b)sections 116C and 116D (supply of information in connection with administration of housing benefit);

(c)section 119A (power to require information from landlords etc. in connection with claims for housing benefit);

(d)section 158B (information about redirection of post); and

(e)Schedule 4 (persons covered by offence relating to unauthorised disclosures).

(3) In section 158B of the Administration Act—

(a)any reference to a person authorised to exercise any function of a local or other authority relating to housing benefit or council tax benefit shall include a reference to a person providing services to that authority which relate to such a benefit; and

(b)any reference to the exercise of any function relating to such a benefit shall include a reference to the provision of any services so relating.

Article 74.

SCHEDULE 9CONSEQUENTIAL AMENDMENTS

PART IAMENDMENTS CONSEQUENTIAL ON PARTS IV AND V

Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (NI 4)

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).”.

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

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”.

Social Security Administration (Northern Ireland) Act 1992 (c. 8)

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)”.

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

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”.

Pensions (Northern Ireland) Order 1995 (NI 22)

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)”,

(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”.

Welfare Reform and Pensions (Northern Ireland) Order 1999

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”.

PART IIOTHER CONSEQUENTIAL AMENDMENTS

Insolvency (Northern Ireland) Order 1989 (NI 19)

53. The Insolvency (Northern Ireland) Order 1989 is amended as follows.

54. After Article 315C there is inserted—

“Recovery of excessive contributions in pension-sharing cases

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.

Orders under Article 312 or 313 in respect of pension-sharing transactions

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.

Orders under Article 312 or 313 in pension-sharing cases: supplementary

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.”.

Social Security Administration (Northern Ireland) Act 1992 (c. 8)

55. The Administration Act has effect subject to the following amendments.

56. After section 128E insert—

“Financing of other expenditure.

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;”.

Deregulation and Contracting Out (Northern Ireland) Order 1996 (NI 11)

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”.

Social Security (Northern Ireland) Order 1998 (NI 10)

61. In Schedule 2 to the Social Security (Northern Ireland) Order 1998 (decisions against which no appeal lies), after paragraph 5 insert—

“Work-focused interviews 5A. A decision terminating or reducing the amount of a person’s benefit made in consequence of any decision made under regulations under section 2A of the Administration Act (work-focused interviews).”.

Article 76.

SCHEDULE 10REPEALS

PART IPENSIONS: MISCELLANEOUS

Chapter or Number	Short title	Extent of repeal
1993 c. 49.	Pension Schemes (Northern Ireland) Act 1993.	In section 24(1), paragraph (aa) (but not the final “and”).
		In section 69(2)(a)(ii), the words “or a self-employed pension arrangement” and “or arrangement”.
		In section 92(2)(a), sub-paragraph (iii) and the word “or” preceding it.
		Section 155(5).
		In section 176(1), the definition of “self-employed pension arrangement”.
1995 NI 22.	Pensions (Northern Ireland) Order 1995.	In Article 8(4), the word “or” at the end of sub-paragraph (a).
		In Article 58(6)(a), the words “continue to”.
		In Article 81(3)(a), “90 per cent. of”.
		Article 89(3).
		In Article 90(2), sub-paragraph (b) and the word “or” preceding it.
		Article 93.
		In Article 139, paragraphs (2) and (3), and in paragraph (4), sub-paragraph (b) and the word “and” preceding it.

PART IIPENSIONS ON DIVORCE ETC.

Chapter or Number	Short title	Extent of repeal
1978 NI 15.	Matrimonial Causes (Northern Ireland) Order 1978.	Article 27B(2).
		In Article 27D(2), sub-paragraphs (c) and (d) and the words after sub-paragraph (e).
1989 NI 4.	Matrimonial and Family Proceedings (Northern Ireland) Order 1989.	In Article 25, the word “made”, in both places.

PART IIIPENSION SHARING

Chapter or Number	Short title	Extent of repeal
1971 c. 35 (N.I.).	Pensions (Increase) Act (Northern Ireland) 1971.	In section 8(1)(a), the words from “(either” to “person)”.
1993 c. 49.	Pension Schemes (Northern Ireland) Act 1993.	In section 173, the words “or of”.
1995 NI 22.	Pensions (Northern Ireland) Order 1995.	In Article 3(2)(a), the word “or” at the end of head (i).
		In Article 38(2), the words from “but” to the end. In Schedule 1, paragraph 37(a).

PART IVABOLITION OF SEVERE DISABLEMENT ALLOWANCE

Chapter or Number	Short title	Extent of repeal
1992 c. 7.	Social Security Contributions and Benefits (Northern Act 1992.	Section 63(b).
		Sections 68 and 69.
		In section 93(a), sub-Ireland) paragraph (ii) and the word “or” preceding it.
		In section 93(b), the words “or allowance” in each place they occur.
		In section 121(1), in the definition of “relevant loss of faculty”, paragraph (a).
		Section 128(2)(a)(ii) and (2B)(a)(iii).
		Section 146(1)(d).
		In Schedule 4, in Part III, paragraphs 2 and 3, and in Part IV, paragraph 8.
		In Schedule 6, in paragraph 1, the words “68 or”, and in sub-paragraph (b), the words from “except” to “68 above,” and paragraphs 4 and 5.
		In Schedule 9, paragraph 5.
		In Schedule 11, in paragraph 2, sub-paragraph (d)(iii) and the word “or” preceding it.
1992 c. 8.	Social Security Administration (Northern Ireland) Act 1992.	In section 43(1), the words “and severe disablement allowance”.
		In section 43(1)(a), the words “in relation to industrial injuries benefit,”.
		In section 43(1)(b), the words “in relation to both benefits,”.
		In section 43(2), paragraph (d) and the word “or” preceding it.
		In section 44(1), the words “or severe disablement allowance”.
		In section 45(9), the words “or severe disablement allowance, as the case may be,”.
		In section 46(1)(c), the words “or, in a case relating to severe disablement allowance, at the prescribed time”.
		In section 122(1), paragraph (e) and the word “or” preceding it.
		In section 124(1), paragraph (d) and the word “or” preceding it.
1994 NI 12.	Social Security (Incapacity for Work) (Northern Ireland) Order 1994.	Article 11.
		In Schedule 1, paragraph 18.
		In Schedule 2, in the third column, the entry relating to section 68 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
1998 NI 10.	Social Security (Northern Ireland) Order 1998.	In Article 73(8), sub-paragraph (c).
1999 c. 10.	Tax Credits Act 1999.	In Schedule 1, paragraph 4(d).

PART VBENEFITS: MISCELLANEOUS

Chapter or Number	Short title	Extent of repeal
1992 c. 7.	Social Security Contributions and Benefits (Northern Ireland) Act 1992.	Section 20(1)(e)(i).
		In section 21, in subsection (2) the entry relating to maternity allowance, and in subsection (4) the words “, other than maternity allowance,”.
		In Schedule 3, in Part I, paragraph 3.
		In Schedule 4, in Part I, the entry relating to maternity allowance.
S.R. 1994 No. 176.	Maternity Allowance and Statutory Maternity Pay Regulations (Northern Ireland) 1994.	Regulations 2(1), (2) and (4) and 6(2).
1995 NI 15.	Jobseekers (Northern Ireland) Order 1995.	In Article 3(4), the word “and” at the end of the definition of “a contribution-based jobseeker’s allowance”.
1998 NI 10.	Social Security (Northern Ireland) Order 1998.	In Schedule 6, paragraph 59.

The Welfare Reform and Pensions (Northern Ireland) Order 1999

SCHEDULES

SCHEDULE 1APPLICATION OF THE PENSION SCHEMES ACT AND THE PENSIONS ORDER TO REGISTERED SCHEMES

SCHEDULE 2PENSIONS: MISCELLANEOUS AMENDMENTS

Income payments orders against pension payments

Extended meaning of “personal pension scheme”

Revaluation of earnings factors: meaning of “relevant year”

Interim arrangements

Effect of certain orders on guaranteed minimum pensions

Payment by the Department of unpaid pension contributions

Supervision by the Occupational Pensions Regulatory Authority

Occupational pension schemes: institutions who may hold money deposited by trustees etc.

Annual increase in rate of pension

Occupational pension schemes: certificates etc. relating to minimum funding requirement

Excess assets of wound-up schemes

Pensionable service

Occupational pension schemes: rights of employee who is director of corporate trustee

SCHEDULE 3PENSION SHARING ORDERS

“Pension sharing orders

“Pension sharing orders in connection with divorce proceedings, etc.

Pension sharing orders: duty to stay

“Appeals relating to pension sharing orders which have taken effect

SCHEDULE 4AMENDMENTS OF ARTICLES 27B TO 27D OF THE MATRIMONIAL CAUSES ORDER

SCHEDULE 5PENSION CREDITS: MODE OF DISCHARGE

Funded pension schemes

Unfunded public service pension schemes

Other unfunded occupational pension schemes

Other pension arrangements

Appropriate rights

Qualifying arrangements

Disqualification as destination for pension credit

Adjustments to amount of pension credit

General

SCHEDULE 6EFFECT OF STATE SCHEME PENSION DEBITS AND CREDITS

“Reduction of additional pension in Category A retirement pension: pension sharing.

“Shared additional pension

Shared additional pension.

Reduction of shared additional pension: pension sharing.

Increase of shared additional pension where entitlement is deferred.

SCHEDULE 7JOINT CLAIMS FOR JOBSEEKER'S ALLOWANCE

“The conditions for claims by joint-claim couples

Joint-claim couples: the nominated member

“Amount payable in respect of joint-claim couple

“Trade disputes: joint-claim couples

“Denial or reduction of joint-claim jobseeker’s allowance

Exemptions from Article 22A

“Continuity of claims and awards: persons ceasing to be a joint-claim couple

Continuity of claims and awards: persons again becoming a joint-claim couple

Continuity of claims and awards: couple becoming a joint-claim couple

Paragraphs 9A to 9C: supplementary

SCHEDULE 8WELFARE BENEFITS: MINOR AND CONSEQUENTIAL AMENDMENTS

PART IBEREAVEMENT BENEFITS

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

Social Security Administration (Northern Ireland) Act 1992 (c. 8)

“Bereavement benefits

3. Late claims for bereavement benefit where death is difficult to establish.

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

PART IIINCAPACITY

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

PART IIIABOLITION OF SEVERE DISABLEMENT ALLOWANCE

Social Security Contributions and Benefits Act (Northern Ireland) 1992 (c. 7)

PART IVINCOME SUPPORT

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

PART VJOBSEEKER'S ALLOWANCE

PART VIMATERNITY ALLOWANCE

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

PART VIIRETIREMENT PENSIONS

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

PART VIIIADMINISTRATION OF BENEFITS

SCHEDULE 9CONSEQUENTIAL AMENDMENTS

PART IAMENDMENTS CONSEQUENTIAL ON PARTS IV AND V

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

Social Security Administration (Northern Ireland) Act 1992 (c. 8)

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

Welfare Reform and Pensions (Northern Ireland) Order 1999

PART IIOTHER CONSEQUENTIAL AMENDMENTS

“Recovery of excessive contributions in pension-sharing cases

Orders under Article 312 or 313 in respect of pension-sharing transactions

Orders under Article 312 or 313 in pension-sharing cases: supplementary

Social Security Administration (Northern Ireland) Act 1992 (c. 8)