2012 No. 120
The Pensions (2008 Act) (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Provisions) Regulations (Northern Ireland) 2012
Approved by resolution of the Assembly on 11th September 2012
Made
Coming into operation in accordance with regulation 1
The Department for Social Development makes the following Regulations in exercise of the powers conferred by section 13(5) and (6) of the Pensions Act (Northern Ireland) 2008 F1.
PART 1General
Citation and commencement1
These Regulations may be cited as the Pensions (2008 Act) (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Provisions) Regulations (Northern Ireland) 2012 and shall come into operation—
a
for the purposes of this Part and Part 2, on 6th April 2012;
b
for the purposes of Part 3, on 6th April 2013, and
c
for the purposes of Part 4, on 6th April 2015.
PART 2Amendments coming into operation on 6th April 2012
Amendment of the Administration Act2
1
The Administration Act is amended in accordance with paragraphs (2) and (3).
2
3
In section 167(1) (interpretation)—
a
b
in the definition of “personal pension scheme”F7 for “section 3” substitute “
section 176A(6)
”
.
Amendment of the Pensions (No. 2) Act3
1
The Pensions (No. 2) Act (Northern Ireland) 2008 F8 is amended in accordance with paragraphs (2) and (3).
2
In section 20 (quality requirement: UK money purchase schemes) omit subsection (2).
3
In section 26 (quality requirement: UK personal pension schemes) omit subsection (8).
Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations4
1
The Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987 F9 are amended in accordance with paragraphs (2) to (7).
2
In regulation 1(2) (interpretation) omit the definition of “contracted-out employment”F10.
3
4
In regulation 4 (basic information about the scheme) for paragraph (3) F13 substitute—
3
The information specified in Schedule 1 shall be given to—
a
members of the scheme; and
b
beneficiaries under the scheme,
on request (not being a request made by a person within 3 years of the last occasion on which the same person was furnished with the information in accordance with paragraph (2) or this paragraph) as soon as practicable after that person requests it.
5
In regulation 5 (information to be made available to individuals)—
a
omit paragraphs (6) and (7) F14;
b
in paragraph (8) F15—
i
omit “the scheme is not an appropriate scheme and”;
ii
for “wind it up” substitute “
wind up the scheme
”
;
c
for paragraph (9) F16 substitute—
9
Subject to paragraph (9A), where a scheme ceases to be an appropriate scheme F17 by virtue of section 13(1) of the Pensions Act (Northern Ireland) 2008 (abolition of contracting-out for defined contribution pension schemes), the trustees shall—
a
inform each member in relation to whom the scheme has ceased to be such a scheme (“the affected member”), except an excluded person F18, that the scheme has ceased to be an appropriate scheme, as soon as practicable and in any event not more than one month after the abolition date;
b
furnish the affected member, except an excluded person, as soon as practicable and in any event not more than 4 months after the abolition date, with the information mentioned in paragraph 9 of Schedule 2; and
c
where the scheme is unable to meet in full its liabilities to its members, furnish the affected member, except an excluded person, as soon as practicable and in any event not more than 4 months after the abolition date, with the information mentioned in paragraph 8 of Schedule 2.
9A
Paragraph (9) does not apply where the trustees have informed the affected member of the abolition date and have furnished the affected member with the information specified in paragraph (9)(b) and, if applicable, paragraph (9)(c), within the period of 12 months ending with the abolition date.
6
In Schedule 1 (basic information about the scheme)—
a
omit paragraph 5 F19;
b
in paragraph 6 for “(if the scheme is an appropriate scheme)” substitute “
(if the scheme was an appropriate scheme)
”
.
7
In Schedule 2 (information to be made available to individuals)—
a
in paragraph 1 F20 for “for the whole or any part of that period” substitute “
at any time before the abolition date
”
;
b
in paragraph 2A F21—
i
in sub-paragraph (3)(b) F22—
aa
at the end of sub-head (i) add “
and
”
;
bb
in sub-head (ii) for “2004, and” substitute “
2004.
”
;
cc
omit sub-head (iii);
ii
in sub-paragraph (7)(d) F23 for “sub-paragraphs (3)(b)(iii) and (4)” substitute “
sub-paragraph (4)
”
;
c
in paragraph 9—
i
the provisions of the paragraph shall become sub-paragraph (1) of the paragraph;
ii
after sub-paragraph (1) add—
2
A statement that, as a result of no longer being a member of a contracted-out scheme, the member may build up entitlement to an additional state pension from the date the scheme ceased to be an appropriate scheme.
Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations5
In regulation 11A(2) of the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991 F24 (further alternative to short service benefit – transfer to an overseas arrangement)—
a
at the end of sub-paragraph (a) add “
and
”
;
b
omit sub-paragraph (b).
Amendment of the Occupational Pension Schemes (Contracting-out) Regulations6
1
The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 F25 are amended in accordance with paragraphs (2) to (18).
2
In regulation 1(2) (interpretation) in the definition of “overseas scheme”F26 omit “or (3)”.
3
In regulation 3(2)(g)(i) F27 (notices by employers of intended election) omit “whether the employment would be contracted out by reference to a salary related or money purchase contracted-out scheme and”.
4
In regulation 6 (information to be included in an election) omit paragraph (4).
5
In regulation 9(3)(b) (making of elections by employers for the variation or surrender of contracting-out certificates) omit “in the case of a money purchase contracted-out scheme, the protected rights under, or in the case of any other scheme,”.
6
In regulation 10(1)(a) (special provision with regard to elections for the issue, variation or surrender of certificates where the employment remains contracted out) omit “, or for protected rights, as the case may be,”.
7
In regulation 16(1) F28 (requirement to confirm relevant requirements are satisfied) omit sub-paragraph (b).
8
Omit regulation 30 (further contracting-out requirements for money purchase contracted-out schemes).
9
In regulation 31(3)(a) F29 (deduction of minimum payments from earnings) after “section 38B of the Act” insert “
as it had effect immediately prior to the abolition date
”
.
10
In regulation 32(1) (minimum payments to be made by employers to trustees)—
a
for “section 4(1) of the Act” substitute “
section 4(1A) F30 of the Act
”
;
b
for “employment is contracted out” substitute “
employment was contracted out
”
.
11
Omit regulation 39 F31 (circumstances in which schemes may change mode of contracting out).
12
Omit regulation 40 F32 (schemes which may not be contracted out under section 5(3) of the Act).
13
In regulation 42 F33 (alteration of rules of contracted-out schemes)—
a
in paragraph (1) omit “, (2A)”;
b
omit paragraph (2A);
c
in paragraph (2B) for sub-paragraph (c) substitute—
c
otherwise prevent the scheme from satisfying section 5(2) F34 of the Act.
14
In regulation 43 (termination of periods of contracted-out employment)—
a
in paragraph (3)(a)(iii) omit the words from “or, as the case may be” to the end;
b
in paragraph (5)(a) for “, section 5(2B) rights or protected rights” substitute “
or section 5(2B) rights F35
”
.
15
In regulation 45(2) (approval of arrangements for schemes ceasing to be contracted out) omit “, section 24(2)(b) and (3) of the Act (transfer of protected rights)”.
16
In regulation 48 (special provision for overseas schemes) omit paragraph (6).
17
In regulation 49 (insolvent schemes)—
a
in paragraph (3) omit sub-paragraph (a) F36;
b
in paragraph (4) for sub-paragraph (a) F37 substitute—
a
in the case of a scheme to which Part IV of the 2005 Order F38 (scheme funding) applies, the cash equivalent of a member's rights under the scheme shall be determined as if the requirements of Article 201(1) of that Order (the statutory funding objective) were satisfied;
18
In regulation 62(3) (fixed rate revaluation of guaranteed minimum pensions for early leavers)—
a
omit “or section 24 (ways of giving effect to protected rights)”;
b
for “those provisions” substitute “
that provision
”
.
Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations7
1
The Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996 F39 are amended in accordance with paragraphs (2) to (4).
2
In regulation 1(2) (interpretation)—
a
omit the definitions of “appropriate personal pension scheme” and “money purchase contracted-out scheme”;
b
in the definition of “overseas arrangement”—
i
in paragraph (a) for “earners;” substitute “
earners, and
”
;
ii
omit paragraph (b).
3
For regulation 5 (transfer payments in respect of guaranteed minimum pensions to money purchase contracted-out schemes and appropriate personal pension schemes) substitute—
Transfer payments in respect of guaranteed minimum pensions to occupational and personal pension schemes5
A transfer payment in respect of a guaranteed minimum pension may be made to a scheme which is not a salary related contracted-out scheme, an overseas scheme F40 or an overseas arrangement if—
a
the earner consents in writing;
b
the transfer payment (whether or not it forms part of a larger payment in respect of both guaranteed minimum pensions and other rights) is of an amount at least equal to the cash equivalent of the earner's accrued rights to guaranteed minimum pensions, as calculated and verified in a manner consistent with regulations made under section 93 F41 (calculation of cash equivalents), and
c
the earner has acknowledged in writing to the transferring scheme that the earner has received a statement from the receiving scheme showing the benefits to be awarded in respect of the transfer payment, and that the earner accepts that—
i
the benefits to be provided by the receiving scheme may be in a different form and of a different amount to those which would have been payable by the transferring scheme, and
ii
there is no statutory requirement on the receiving scheme to provide for survivors' benefits out of the transfer payment.
4
For regulation 10 (transfer payments to money purchase contracted-out schemes and appropriate personal pension schemes in respect of section 5(2B) rights) substitute—
10Transfer payments to occupational and personal pension schemes in respect of section 5(2B) rights
A transfer payment in respect of an earner's accrued section 5(2B) rights may be made to a scheme which is not a salary related contracted-out scheme, an overseas scheme or an overseas arrangement if—
a
the earner consents in writing, and
b
the earner has acknowledged in writing to the transferring scheme that the earner has received a statement from the receiving scheme showing the benefits to be awarded in respect of the transfer payment, and that the earner accepts that—
i
the benefits to be provided by the receiving scheme may be in a different form and of a different amount to those which would have been payable by the transferring scheme, and
ii
there is no statutory requirement on the receiving scheme to provide for survivors' benefits out of the transfer payment.
Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations8
1
The Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997 F42 are amended in accordance with paragraphs (2) to (4).
2
In regulation 5 (information to be made available to individuals)—
a
for paragraph (7) substitute—
7
Subject to paragraph (7ZA), where a scheme ceases to be a money purchase contracted-out scheme by virtue of section 13(1) of the Pensions Act (Northern Ireland) 2008 F43, the trustees of the scheme shall inform each member in relation to whom the scheme has ceased to be such a scheme (“the affected member”), as soon as practicable, and in any event not more than one month after the abolition date, that the scheme is no longer a money purchase contracted-out scheme, and furnish the affected member, as soon as practicable and in any event not more than 4 months after the abolition date, with—
a
the information mentioned in paragraph 8 of Schedule 2; and
b
except where the scheme is able to meet in full its liabilities to the affected member, the information mentioned in paragraph 10 F44 of Schedule 2.
7ZA
Paragraph (7) does not apply where the trustees of the scheme have informed the affected member of the date on which the scheme is to cease to be a money purchase contracted-out scheme and have furnished the information specified in paragraph (7)(a) and, if applicable, paragraph (7)(b), within the period of 12 months ending with the abolition date.
b
omit paragraph (7A) F45.
3
In paragraph 10 of Schedule 1 (basic information about the scheme) omit the words from “, and whether the scheme is contracted-out” to the end.
4
In Schedule 2 (information to be made available to individuals)—
a
in paragraph 5(1) for “for the whole or any part of the period” substitute “
at any time before the abolition date
”
;
b
in paragraph 6ZA F46—
i
in sub-paragraph (3)(b)—
aa
at the end of sub-head (i) add “
and
”
;
bb
at the end of sub-head (ii) omit “and”;
cc
omit sub-head (iii);
ii
in sub-paragraph (7)(d) F47 for “sub-paragraphs (3)(b)(iii) and (4)” substitute “
sub-paragraph (4)
”
;
c
in paragraph 8—
i
the provisions of the paragraph shall become sub-paragraph (1) of the paragraph;
ii
in sub-paragraph (1) omit “in relation to the member's employment”;
iii
after sub-paragraph (1) add—
2
A statement that, as a result of no longer being a member of a contracted-out scheme, the member may build up entitlement to an additional state pension from the date the scheme ceased to be a money purchase contracted-out scheme.
d
omit paragraph 8A F48.
Amendment of the Personal Pension Schemes (Appropriate Schemes) Regulations9
1
The Personal Pension Schemes (Appropriate Schemes) Regulations (Northern Ireland) 1997 F49 are amended in accordance with paragraphs (2) and (3).
2
In regulation 1(2) (interpretation) omit the definition of “administrators”.
3
The following regulations are omitted—
a
regulation 2 F50 (schemes which may be appropriate schemes);
b
regulation 4 F51 (requirements in respect of an application for an appropriate scheme certificate);
c
regulation 5 (issue of appropriate scheme certificates);
d
regulation 6 F52 (requirement to furnish information);
e
regulation 6A F53 (provision of information for purposes of contracting-out);
f
regulation 7 (cancellation, variation and surrender of an appropriate scheme certificate);
g
regulation 8 F54 (applications for the variation of, and to surrender, appropriate scheme certificates);
h
regulation 9 (cancellation of an appropriate scheme certificate);
i
regulation 10 (notice under section 40(1));
j
regulation 11 (notice under section 40(2));
k
regulation 14 (allocation of minimum contributions).
Amendment of the Occupational and Personal Pension Schemes (Contracting-out etc: Review of Determinations) Regulations10
In regulation 2 of the Occupational and Personal Pension Schemes (Contracting-out etc: Review of Determinations) Regulations (Northern Ireland) 1997 F55 (application of regulations) omit “or appropriate scheme certificates”.
Amendment of the Pension Sharing (Valuation) Regulations11
In regulation 2(1)(b) of the Pension Sharing (Valuation) Regulations (Northern Ireland) 2000 F56 (rights under a pension arrangement which are not shareable)—
a
in head (ii) for “annuity;” substitute “
annuity, or
”
;
b
omit head (iii).
Amendment of the Pension Sharing (Pension Credit Benefit) Regulations12
In regulation 1(2) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000 F57 (interpretation) omit the definitions of “appropriate scheme” and “money purchase contracted-out scheme”.
Amendment of the Stakeholder Pension Schemes Regulations13
1
The Stakeholder Pension Schemes Regulations (Northern Ireland) 2000 F58 are amended in accordance with paragraphs (2) to (4).
2
In regulation 1(3) (interpretation) omit the definition of “contracted-out employment”F59.
3
In regulation 18B(2)(b) F60 (disclosure of information to members)—
a
in head (i) for “behalf;” substitute “
behalf, and
”
;
b
in head (ii) for “schemes), and” substitute “
schemes).
”
;
c
omit head (iii).
4
In paragraph 6(d) of Schedule 3 F61 (information for members) for “regulation 18B(2)(b)(iii) and (3)” substitute “
regulation 18B(3)
”
.
Revocations14
The following provisions are revoked—
a
the Protected Rights (Transfer Payment) Regulations (Northern Ireland) 1996 F62;
b
regulations 2, 4 to 6, 8, 10 to 15 and 17 of the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997 F63;
c
the Occupational Pension Schemes (Age-related Payments) Regulations (Northern Ireland) 1997 F64.
PART 3Amendments coming into operation on 6th April 2013
Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations15
1
The Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987 F65 are amended in accordance with paragraphs (2) and (3).
2
In regulation 5 (information to be made available to individuals) omit paragraphs (9) and (9A) F66.
3
In paragraph 9 F67 of Schedule 2 (information to be made available to individuals) omit sub-paragraphs (1) and (2).
Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations16
1
The Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997 F68 are amended in accordance with paragraphs (2) and (3).
2
In regulation 5 (information to be made available to individuals) omit paragraphs (7) and (7ZA) F69.
3
In paragraph 8 F70 of Schedule 2 (information to be made available to individuals) omit sub-paragraphs (1) and (2).
PART 4Amendments coming into operation on 6th April 2015
Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations17
1
The Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987 F71 are amended in accordance with paragraphs (2) to (4).
2
In regulation 5(2)(a) F72 (information to be made available to individuals) for “paragraphs 1, 2 and 12” substitute “
paragraphs 1 and 2
”
.
3
For paragraph 6 F73 of Schedule 1 (basic information about the scheme) substitute—
6
How contributions by members and their employers are paid to the scheme.
Amendment of the Occupational Pension Schemes (Contracting-out) Regulations18
1
The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 F76 are amended in accordance with paragraphs (2) to (4).
2
Omit regulation 31 F77 (deduction of minimum payments from earnings).
3
Omit regulation 32 F78 (minimum payments to be made by employers to trustees).
4
Omit regulation 33 (calculation of minimum payments).
Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations19
In paragraph 5(1) of Schedule 2 to the Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997 F79 (information to be made available to individuals) omit the words from “and, where the scheme was at any time before the abolition date” to the end.
Amendment of the Stakeholder Pension Schemes Regulations20
1
The Stakeholder Pension Schemes Regulations (Northern Ireland) 2000 F80 are amended in accordance with paragraphs (2) to (4).
2
In regulation 1(3) (interpretation) omit the definitions of “minimum contributions” and “minimum payments”.
3
In regulation 17(2) (restrictions on contributions) omit the words from “, minimum contributions” to the end.
4
In paragraph 2 of Schedule 3 F81 (information for members) omit sub-paragraphs (e), (f) and (g).
Sealed with the Official Seal of the Department for Social Development on 14th March 2012
2008 c. 1 (N.I.)