The Pensions (2015 Act) (Commencement No. 5) Order (Northern Ireland) 2017

EXPLANATORY NOTE

(This note is not part of the Order)

This Order provides for the coming into operation of certain provisions in Parts 5 and 6 of the Pensions Act (Northern Ireland) 2015 (“the Act”).

Articles 2 to 4 bring into operation Part 5 of the Act, which creates a new social security benefit called Bereavement Support Payment. It is for people whose spouse or civil partner dies on or after 6th April 2017 and is payable to a person whose deceased spouse or civil partner made sufficient National Insurance contributions. The new benefit replaces existing benefits called Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance.

Article 2(1) brings into operation the main provisions for Bereavement Support Payment on 6th April 2017. It also brings into operation enabling powers before that date for the purposes of making the Bereavement Support Payment Regulations (Northern Ireland) 2017.

Articles 2(2), 3 and 4 make provision relating to Bereavement Allowance and Bereavement Payment. Those existing benefits continue to be payable for people whose spouse or civil partner died before 6th April 2017 (provided they continue to meet the entitlement conditions). Article 3 commences repeals to the legislation relating to Bereavement Allowance and Bereavement Payment on the date those benefits are no longer payable for such a person. Article 4 makes similar provision for people whose spouse or civil partner dies before 6th April 2017 and subsequent spouse or civil partner dies on or after 6th April 2017 within 12 months of the death of their previous spouse.

Article 5 brings into operation section 48 of, and Schedule 20 to, the Act. Those provisions relate to the Pension Protection Fund, which pays compensation to members of eligible occupational pension schemes when the employer becomes insolvent. The pension compensation is subject to a maximum cap – the compensation cap. Together, section 48 and Schedule 20 provide for a revised (increased) compensation cap dependent on a person’s age and length of service when the person first becomes entitled to compensation. Article 5 provides that the day appointed for the coming into operation of paragraphs 5 and 22 of Schedule 20 (which relate to the power to make subordinate legislation) is 10th March 2017. It commences the remaining provisions of Schedule 20 on 6th April 2017.