The Pensions (2008 No. 2 Act) (Abolition of Protected Rights) (Consequential Provisions) Order (Northern Ireland) 2012

for the purposes of this Part and Article 7 of Part 2, immediately before 6th April 2012;

for the purposes of the other provisions of Part 2, on 6th April 2012;

for the purposes of Part 3, on 6th April 2013, and

for the purposes of Part 4, on 6th April 2015.

at the end of paragraph (8)(a) omit “and”;

omit paragraph (8)(b);

in paragraph (9) for “and “protected rights” have” substitute “has”.

in paragraph 1(1) (interpretation) omit the definition of “protected rights”^f2;

in paragraph 6 (method of taking cash benefit)—

in paragraph 7(2)(a)(ii) (calculation of cash equivalents) omit “or give effect to protected rights”;

in paragraph 9(2) (option to be exercised in writing) omit “or give effect to protected rights”.

The Pension Schemes Act is amended in accordance with paragraphs (2) to (26).

In section 16(3) (transfer of accrued rights) for “sections 22 to 29” substitute “sections 27 and 29”.

In section 27(2) (investment and resources of schemes) for “The scheme” substitute “A scheme which was an appropriate scheme or a money purchase contracted-out scheme immediately before the abolition date”^f1.

In section 29^f2 (tax requirements to prevail over certification requirements)—

In section 33^f3 (alteration of rules of contracted-out schemes)—

Omit section 34^f4 (alteration of rules of appropriate schemes).

In section 35 (general power to make regulations) omit “, and Part II of that Schedule as respects personal pension schemes”.

In section 38A^f5 (reduced rates of Class 1 contributions, and rebates)—

In section 39 (payment of minimum contributions to personal pension schemes) after subsection (6) insert—

“(6A)

Where—

(a)

a payment under subsection (1) is due in respect of an earner, and

(b)

apart from this subsection, the payment would under regulations under subsection (3) be made to the earner,

HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment.”.

In section 46 (powers of Inland Revenue to approve arrangements for scheme ceasing to be certified)—

In section 48 (supervision of schemes which have ceased to be certified)—

In section 49(3)^f13 (supervision: former contracted-out schemes) omit “or (b)”.

Omit section 50^f14 (supervision: former appropriate personal pension schemes).

In section 92 (further provisions concerning exercise of option under section 91)—

In section 95(1) (trustees’ duties after exercise of option) omit “or give effect to such protected rights”.

In section 151^f17 (requirement to give information to the Department, Secretary of State or Inland Revenue for the purposes of certain provisions) for “, section 113 and section 155 (so far as it relates to protected rights payments)” substitute “and section 113”.

In section 152(1)^f18 (information for purposes of contracting-out) for “or appropriate scheme” substitute “or a personal pension scheme which was an appropriate scheme before the abolition date”.

In section 155 (inalienability of guaranteed minimum pension and protected rights payments)—

In section 160 (Crown employment) for subsection (2)^f20 substitute—

“(2)

A person who is employed by or under the Crown shall be treated as an employed earner for the purposes of—

(a)

sections 27 and 29, so far as they relate to personal pension schemes;

(b)

sections 39 and 41;

(c)

section 44, so far as it relates to minimum contributions;

(d)

sections 113, 150 and 151, and

(e)

sections 156 and 162.”.

In section 161(2)(a)^f21 (application of certain provisions to cases with foreign element) omit “and section 155 (so far as it relates to protected rights payments).”.

In section 165 (decisions and appeals), as substituted by paragraph 99 of Schedule 6 to the Social Security (Northern Ireland) Order 1998^f22, in subsection (3) omit “or 50”.

In section 165 (determination of questions by Department), as remaining in operation for purposes other than those specified in Article 2(1)(b) of the Social Security (1998 Order) (Commencement No. 7 and Savings, Consequential and Transitional Provisions) Order (Northern Ireland) 1999^f23, in subsection (7)(a)^f24 omit “or appropriate scheme certificates”.

In section 172(2)(b)^f25 (general financial arrangements) for sub-paragraph (ii) substitute—

“(ii)

sections 27, 29, 113, 150 and 151;

(iii)

sections 156 and 162.”.

In section 176 (general interpretation)—

In section 178(3)^f27 (sub-delegation) omit “23(3),”.

In Schedule 1 (certification regulations) omit Part II^f28 (personal pension schemes).

The 1995 Order is amended in accordance with paragraphs (2) to (7).

In Article 51A(1)^f1 (restriction on increase where annuity tied to investments)—

In Article 89(7) (inalienability of occupational pension) omit “and protected rights payments”.

Omit Article 146 (hybrid occupational pension schemes).

Omit Article 158^f2 (annual increase in rate of personal pension).

Omit Article 159^f3 (Article 158: supplementary).

In Article 167(3)^f4 (Assembly, etc. control of orders and regulations)—

omit paragraph (3);

in paragraph (4) omit the definition of “protected rights”.

The Pensions Act (Northern Ireland) 2008 is amended in accordance with paragraphs (2) and (3).

Paragraphs 7, 16, 24, 25, 30, 32, 33 and 36 of Schedule 4 (abolition of contracting-out for defined contribution pension schemes) are omitted, and are not to have any effect from the contracting-out abolition date (within the meaning of section 85(4) of the Pensions (No. 2) Act (Northern Ireland) 2008) (in spite of section 13(4) of the Pensions Act (Northern Ireland) 2008).

In Part 2 of Schedule 4 (further amendments) (which is not yet in operation)—

The Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987^f1 are amended in accordance with paragraphs (2) to (5).

In regulation 4(6)^f2 (basic information about the scheme) for “, 11, 12 or 13” substitute “or 11”.

In regulation 5 (information to be made available to individuals)—

In Schedule 1 (basic information about the scheme) omit paragraphs 9^f4, 12 and 13.

In Schedule 2 (information to be made available to individuals)—

The Personal Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1987^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 1(2) (interpretation) omit the definition of “protected rights”^f2.

In regulation 2(1)^f3 (requirements to be satisfied) omit sub-paragraph (b).

The Personal and Occupational Pension Schemes (Abatement of Benefit) Regulations (Northern Ireland) 1987^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 3 (guaranteed minimum pension to which earner’s widow, widower or surviving civil partner is treated as entitled after minimum contributions have been paid) for paragraph (1)^f2 substitute—

“(1)

Where, in relation to any tax week, except a tax week such as is mentioned in paragraph (3), minimum contributions have been paid in respect of an earner, section 42 shall, in the circumstances specified in paragraph (2), have effect in relation to the earner’s widow, widower or surviving civil partner, as if the widow, widower or surviving civil partner were entitled to a guaranteed minimum pension at a rate equal to one-half of the rate described in regulation 2(2).”.

In regulation 5 (guaranteed minimum pension to which earner’s widow, widower, or surviving civil partner is treated as entitled after minimum payments have been made) for paragraph (1)^f3 substitute—

“(1)

Where, in relation to any tax week, except a tax week such as is mentioned in paragraph (3), minimum payments have been paid in respect of an earner, section 42 shall, in the circumstances specified in paragraph (2), have effect in relation to the earner’s widow, widower or surviving civil partner, as if the widow, widower or surviving civil partner were entitled to a guaranteed minimum pension at a rate equal to one-half of the rate described in regulation 4(2).”.

for “sub-paragraphs (a) to (d)” substitute “sub-paragraphs (b), (c) and (d)”;

omit sub-paragraph (a).

The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996^f1 are amended in accordance with paragraphs (2) to (13).

In regulation 1(2) (interpretation)—

In regulation 3(1)(c) (notices by employers of intended election) omit “the protected rights,”.

In regulation 10(1)(b) (special provision with regard to elections for the issue, variation or surrender of certificates where the employment remains contracted out) omit “or to protected rights, as the case may be,”.

In regulation 16(1)^f4 (requirement to confirm relevant requirements are satisfied) omit sub-paragraph (d).

In regulation 37 (circumstances in which the age-related payments are not to be paid)—

In regulation 43(1) (termination of periods of contracted-out employment) in sub-paragraphs (c), (d) and (e) for “, section 5(2B) rights or his protected rights” substitute “or section 5(2B) rights”.

In regulation 44(7) (notifications) for the words from “, any entitlement arising in respect of section 5(2B) rights” to the end substitute “and any entitlement arising in respect of section 5(2B) rights.”.

In regulation 45 (approval of arrangements for schemes ceasing to be contracted out)—

In regulation 46 (supervision of schemes that have ceased to contract out)—

In regulation 50(a) (member to be informed of the option to restore state scheme rights) omit “or under section 28A of the Act (discharge of protected rights on winding up: insurance policies)”.

In regulation 63(2)(aa)^f8 (provision of information about guaranteed minimum pensions) omit “or protected rights”.

In regulation 68 (additional modifications relating to transfers and increases of earnings factors by 12 per cent.)—

The Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 1(2) (interpretation)—

In regulation 13A^f3 (modification of section 8C where transfer payments are made to salary related contracted-out schemes) at the end of paragraph (b) add “where that transfer payment was made before the abolition date”.

The Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 12(1) (requirements to be met by receiving schemes, annuities and arrangements) omit sub-paragraph (c).

In Schedule 1A^f2 (reductions in initial cash equivalents) omit paragraph 9.

after the definition of “the Act”^f2 insert—

• ““abolition date” means the day appointed for the commencement of section 13(1) of the Pensions Act (Northern Ireland) 2008^f3;”;

after the definition of “pension scheme” insert—

• ““protected rights” has the meaning given in section 6^f4 of the Act, as it had effect immediately before the abolition date;”;

in the definition of “section 5(2B) rights”^f5 at the end of paragraph (b)(ii) add “where that transfer payment was made before the abolition date”.

The Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997^f1 are amended in accordance with paragraphs (2) to (5).

In regulation 1(2) (interpretation) omit the definition of “mixed benefit contracted-out scheme”^f2.

In regulation 5 (information to be made available to individuals)—

In Schedule 1 (basic information about the scheme) omit paragraphs 12A^f5 and 14.

In Schedule 2 (information to be made available to individuals)—

after paragraph (1) insert—

“(1A)

Subject to paragraph (2), where the earner is no longer a member of the earner’s chosen scheme, minimum contributions in respect of that earner shall be paid—

(a)

to the trustees or managers of the earner’s chosen scheme, if the earner has become a member of another scheme, and the earner’s chosen scheme is able to transfer the payment to that other scheme;

(b)

to the trustees or managers of another scheme of which the earner is a member, if known to the Commissioners of Her Majesty’s Revenue and Customs, or

(c)

in all other circumstances, to the earner.”;

in paragraph (2) after “(ways of giving effect to protected rights)” insert “as it had effect prior to the abolition date”;

in paragraph (3) at the end add “, except where the earner is no longer a member of that scheme, in which case the minimum contributions shall instead be paid to the earner”;

in paragraph (4) at the end add “, except where the earner is no longer a member of that scheme, in which case the additional amount of minimum contributions shall instead be paid to the earner”.

The Stakeholder Pension Schemes Regulations (Northern Ireland) 2000^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 3 (requirements applying to all stakeholder pension schemes as regards instruments establishing such schemes) omit paragraph (7).

In regulation 13(4)^f2 (expenses, commission etc. – principles) omit sub-paragraph (a).

The Occupational Pension Schemes (Modification of Schemes) Regulations (Northern Ireland) 2006^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 1(2) (interpretation) omit the definition of “protected rights”.

In regulation 3 (non-application of the subsisting rights provisions) omit paragraph (d).

The Pension Protection Fund (General and Miscellaneous Amendments) Regulations (Northern Ireland) 2006^f1 are amended in accordance with paragraphs (2) to (4).

In regulation 1(2) (interpretation) omit the definition of “appropriate personal pension scheme”.

In regulation 7 (manner of discharge of liabilities in respect of money purchase benefits)—

In regulation 8 (further provision for discharge of liabilities in respect of money purchase benefits) for paragraph (5) substitute—

“(5)

Where the money purchase beneficiary dies before the Board discharges those liabilities in relation to that beneficiary, the Board shall discharge those liabilities—

(a)

where there is a widow, widower or surviving civil partner, under the rules of the scheme within the limits specified in regulation 7(1), or

(b)

where there is no widow, widower or surviving civil partner, in accordance with paragraph 15 of Schedule 29 to the 2004 Act (uncrystallised funds lump sum death benefit).”.

before the definition of “active member” insert—

• ““abolition date” means the day appointed for the commencement of section 13(1) of the Pensions Act (Northern Ireland) 2008^f2;”;

for the definition of “contracted-out rights”^f3 substitute—

• ““contracted-out rights” are such rights under, or derived from, an occupational pension scheme as fall within the following categories—

  1. (a)

     entitlement to payment of, or accrued rights to, guaranteed minimum pensions, or

  2. (b)

     section 5(2B) rights;”;

in the definition of “protected rights”^f4 after “section 6 of 1993 Act” insert “as it had effect immediately prior to the abolition date”;

in paragraph (b) of the definition of “section 5(2B) rights” in sub-paragraph (ii) after “April 1997” insert “where the transfer took place before the abolition date”.

the Personal Pension Schemes (Compensation) Regulations (Northern Ireland) 1988^f1;

the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 1996^f2;

regulations 3, 9 and 16(2) of the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997^f3;

the Occupational Pension Schemes (Mixed Benefit Contracted-out Schemes) Regulations (Northern Ireland) 1997^f4.

The Pension Schemes Act is amended in accordance with paragraphs (2) to (7).

In section 16(3)^f1 (transfer of accrued rights) omit “and sections 27 and 29”.

Omit section 29^f2 (tax requirements to prevail over certification requirements).

In section 38A^f3 (reduced rates of Class 1 contributions, and rebates)—

In section 39 (payment of minimum contributions to personal pension schemes)—

In section 160(2)^f8 (Crown employment) omit paragraph (a).

In section 176(4)^f9 (general interpretation) omit “27,”.