The Social Security (Deferral of Retirement Pensions) Regulations (Northern Ireland) 2005

Explanatory Note

(This note is not part of the Regulations.)

These Regulations make provision relating to changes to the regime for deferring entitlement to state pension made and brought forward by the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”) which provide, in particular, for an increased incremental rate for those deferring their state pension and for a choice between increments and a lump sum for those who have deferred their entitlement for 12 months or more and also amend the Social Security (Widow’s Benefit and Retirement Pensions) Regulations (Northern Ireland) 1979 (“the 1979 Regulations”).

Regulation 2 prescribes the day on which the accrual period for the lump sum is to start.

Regulation 3 prescribes the circumstances in which the amount of retirement pension which the deferrer would have received in an accrual period shall not be included in the calculation of the lump sum. These include receipt of certain benefits or increases in benefits or imprisonment. It also allows for a reduction where those circumstances apply for part only of an accrual period.

Regulation 4 amends the 1979 Regulations in consequence of changes to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 made originally by the Pensions (Northern Ireland) Order 1995 and which were due to come into operation in 2010 but are now to come into operation this year (paragraphs (2), (3)(a) and (4)(a)), to allow for both elections and consents to elections to be treated as not entitled to a retirement pension to be made by telephone (paragraph (3)(b) and (c)) and to make further provision in relation to the calculation of days of increment for those who start deferring their state pension on or after 6th April 2005 (paragraph (4)(b)).

Regulation 5 makes consequential revocations.

Article 273 of, and Schedule 9 to, the 2005 Order, under which some of these Regulations are made, were brought into operation, for the purpose of authorising the making of regulations, on 16th February 2005 and for all other purposes on 6th April 2005.

Regulation 4 of these Regulations makes 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 and accordingly, by virtue of section 149(3) of, and paragraph 10 of Schedule 5 to, the Social Security Administration (Northern Ireland) Act 1992, are not subject to the requirement of section 149(2) of that Act for prior reference to the Social Security Advisory Committee. Otherwise they are made by virtue of, or consequential upon provisions of the 2005 Order and are made before the end of the period of six months of the commencement of those provisions and accordingly are exempt by virtue of section 150(5)(b) of that Act from prior reference to the Social Security Advisory Committee.

These Regulations do not impose a charge on business.