These Regulations make further provision relating to the “moral hazard” provisions in Article 34 of the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”), and in particular, what constitutes the resources of an employer, and how they are valued, for the purposes of the “employer resources test”. Article 34 provides for the Pensions Regulator’s power to issue contribution notices.

Regulation 4 sets out what constitutes the resources of the employer and how the value of the resources is to be determined for the purposes of Article 34E(2) of the 2005 Order. It also sets out the matters to be determined by the Pensions Regulator and enables the Pensions Regulator to estimate the value of the resources of an employer in certain circumstances. In addition, regulation 4 sets out the circumstances in which verification of the determination made by the Pensions Regulator is not required.

The Pension Schemes Act 2021 (Commencement No. 1) Order (Northern Ireland) 2021 (S.R.2021No.240(C.8)) provides for the coming into operation of paragraph 2(3) of Schedule 8 to the Pension Schemes Act 2021, which inserts Article 34E into the 2005 Order, one of the enabling provisions under which these Regulations are made, for the purpose only of authorising the making of regulations on 1st September 2021.

As 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, the requirement to consult under Article 289(1) of the 2005 Order does not apply by virtue of paragraph (2)(e) of that Article.

An Impact Assessment has been carried out as part of the enactment of the measures in the Pension Schemes Act 2021 and has been published alongside the Pension Schemes Act 2021 at www.legislation.gov.uk. Paper copies can be obtained from the Department for Work and Pensions, First Floor, Caxton House, Tothill Street, London SW1H 9NA.