The Occupational and Personal Pension Schemes (Contracting-out) (Miscellaneous Amendments) Regulations (Northern Ireland) 2002

Explanatory Note

(This note is not part of the Regulations.)

These Regulations amend various regulations which govern the arrangements whereby occupational and personal pension schemes are contracted-out of the State additional pension, and associated matters including those relating to transfer payments, benefits for widows and widowers and the provision of information relating to pension schemes and state scheme rights and duties.

Regulation 2 amends the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 in relation to contracting-out certificates and elections and the trivial commutation of benefits. Regulation 2 also substitutes regulation 19 (lump sum benefits), and inserts regulation 20A into those Regulations to provide for the suspension of benefits derived from section 5(2B) protected rights.

Regulation 3 amends the Protected Rights (Transfer Payment) Regulations (Northern Ireland) 1996 by inserting regulation 4A which provides for transfer payments to section 49 Schemes (former contracted-out schemes) and to provide for transfer payments to overseas arrangements as well as overseas schemes.

Regulation 4 amends the Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 1996 to apply the restriction on employer related investments in regulation 5 of those Regulations to schemes referred to in Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988.

Regulation 5 amends the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997 in respect of pensions and annuities for unmarried members, widows and widowers , the suspension and the forfeiture of protected rights payments and their treatment where a member dies before effect is given to such rights.

Regulation 6 amends the Occupational Pension Schemes (Modification of Schemes) Regulations (Northern Ireland) 1997 to allow a scheme to be modified to offer single life pensions and annuities in accordance with the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997 as amended by these Regulations.

Regulation 7 amends the Personal Pension Schemes (Appropriate Schemes) Regulations (Northern Ireland) 1997 by inserting regulation 6A to extend the categories of person to whom information may be given to enable them to comply with Part III (certification of pension schemes and effect on members' state scheme rights and duties) of the Pension Schemes (Northern Ireland) Act 1993 to widows and widowers of an earner and anyone responsible for making payments derived from protected rights.

Regulation 8 amends the Occupational and Personal Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997 by inserting paragraph (1A) into regulation 2 (commutation of pension under an occupational pension scheme). Paragraph (1A) extends the circumstances in which an occupational pension may be commuted to include circumstances where rights are derived from equivalent pension benefits and the member has given his consent.

As these Regulations, in so far as they are made under Part II of the Pensions (Northern Ireland) Order 1995 (“the 1995 Order”), make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement for consultation under Article 117(1) of the 1995 Order does not apply by virtue of paragraph (2)(e) of that Article.

Section 24(1A) of the Pension Schemes (Northern Ireland) Act 1993, one of the enabling provisions under which these Regulations are made, was amended by paragraph 4(3) of Schedule 2 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (“the 1999 Order”). The Welfare Reform and Pensions (1999 Order) (Commencement No. 9) Order (Northern Ireland) 2001 (S.R. 2001 No. 438 (C. 9)) provides for the coming into operation of paragraph 4 of Schedule 2 to the 1999 Order, in so far as it is not already in operation, on 1st January 2002.

An assessment of the cost to business of these Regulations is detailed in a Regulatory Impact Assessment, copies of which have been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of the Assessment are available from the Department for Social Development, Social Security Policy and Legislation Division, Room 5, Block 5, Stormont Estate, Upper Newtownards Road, Belfast BT4 3SJ.