Amendment of the Pension Sharing (Pension Credit Benefit) Regulations6
1
The Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 200013 shall be amended in accordance with paragraphs (2) and (3).
2
In regulation 1(2) (interpretation) after the definition of “the Department” there shall be inserted the following definition –
“effective date” in regulation 27(4) and (4A) means the date as at which the assets and liabilities are valued;
3
In regulation 27 (increases and reductions of cash equivalents before a statement of entitlement has been sent to the eligible member) for paragraph (4) there shall be substituted the following paragraphs –
4
Subject to paragraphs (4A) and (4B), where a scheme to which Article 56 applies had, at the effective date of the actuary’s latest report to the trustees or managers of the scheme before the date by reference to which the cash equivalent is determined under section 97F(4) (power to give transfer notice)14 in accordance with “Retirement Benefit Schemes – Transfer Values (GN 11)” published by the Institute of Actuaries and the Faculty of Actuaries and current at that date, assets that were not sufficient to pay the full amount of the cash equivalent in respect of all members, the trustees or managers may reduce each part of the cash equivalent as shown in that report that relates to the liabilities referred to in Article 73(3) by an amount that is no greater than the percentage by which the assets are shown in that report as being insufficient to pay the full amount of the corresponding part of the cash equivalent in respect of all members.
4A
Where a scheme to which Article 56 applies had, at the effective date of the latest actuarial valuation under Article 57 (valuation and certification of assets and liabilities) prior to the date by reference to which the cash equivalent is determined under section 97F(4), assets that were not sufficient to pay the minimum amount of the cash equivalent in respect of the liabilities referred to in Article 73(3) in respect of all members, each respective part of the cash equivalent that relates to those liabilities may be reduced by an amount that is no greater than the percentage which is the difference between –
a
100 per cent., and
b
the percentage of the liabilities mentioned in the sub-paragraph of Article 73(3) corresponding to that part which the actuarial valuation shows the scheme assets as being sufficient to satisfy.
4B
The amount of any cash equivalent after the reduction mentioned in paragraph (4) shall not be less than the minimum amount that is required under regulation 24(3)(b)(iv) (manner of calculation and verification of cash equivalents) to satisfy the liabilities referred to in Article 73(3).