(This note is not part of these Regulations.)
These Regulations make provision relating to the deferment of graduated retirement benefit arising from changes in the rules relating to the deferment of retirement pension made by the Pensions (Northern Ireland) Order 1995 and the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”).
Regulation 1(2) provides that the increase in the incremental rate is not to take effect in relation to incremental periods beginning before 6th April 2005.
Regulations 2 to 4 and Schedule 1 repeal and re-enact the existing rules relating to increments of graduated retirement benefit where entitlement to either retirement pension or to graduated retirement benefit alone is deferred, so that they correspond with the rules for deferment of entitlement to retirement pension enacted in Schedule 5 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 as amended by Schedule 9 to the 2005 Order.
The two changes introduced by Schedule 1 are an increase in the incremental rate from 1/7th per cent. to ⅕th per cent. and the introduction of a new reward of a lump sum, both for those who have deferred entitlement to their graduated retirement benefit for at least 12 months and for widows and widowers where their deceased spouses deferred entitlement to their graduated retirement benefit for at least 12 months as at the date of death. Those who also had deferred entitlement to retirement pension for at least 12 months can only get the same reward for graduated retirement benefit as they elected to receive for their retirement pension, otherwise, an election can be made. The election is to be made in the manner and within the time specified in regulations made under powers introduced by the 2005 Order. The lump sum is to be calculated on the basis of the amount of graduated retirement benefit foregone in the period of deferment with interest accrued on it at a rate 2 per cent. above the Bank of England base rate.
Regulation 5 and Schedule 2 modify Schedule 1 in so far as it applies to cases where a person was deferring his graduated retirement benefit before 6th April 2005 and continued deferring it after that date.
Regulation 6 makes consequential revocations.
Schedule 9 to the 2005 Order, under which some of these Regulations are made, was brought into operation, for the purpose of authorising the making of regulations, on 16th February and for all other purposes on 6th April 2005.
Regulations 3 and 4 of, and paragraphs 2, 3, 7, 13, 14 and 18 of Schedule 1 to, these Regulations 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 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.