The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

Requirements for meeting the statutory standard

23.  For the purposes of section 8A(4) of the Act (regulations may provide for the manner of, and criteria for, determining whether pensions are broadly equivalent to those under a reference scheme) in determining whether the pensions provided under the scheme are broadly equivalent to or better than those which would be provided under a reference scheme, the actuary—

(a) must follow guidance note GN 28 prepared from time to time by the Institute of Actuaries and Faculty of Actuaries(1) and approved by the Department;

(b) may not certify that the pensions to be provided by the scheme for earners in employed earner’s employment and their widows or widowers are collectively broadly equivalent to, or better than, those which would be provided for such persons under a reference scheme if the pensions to be provided for more than 10 per cent. of such earners or their widows or widowers are not broadly equivalent to the pensions which would be provided for them under a reference scheme;

(c) must have regard to the pensions to be provided under the scheme for the persons specified in section 8A(1) of the Act who are in the scheme at the date from which the certificate has effect;

(d) must not have regard to any pensions to be provided under the scheme in respect of earners who are not in contracted-out employment;

(e) must not have regard to any money purchase benefits, and

(f) may have regard to the payment of a lump sum.

(1)

The Institute of Actuaries is at Staple Inn Hall, High Holborn, London WC1V 7QJ. The Faculty of Actuaries is at 40-44 Thistle Street, Edinburgh EH2 1EN