The Pensions (2015 Act) (Abolition of Contracting-out for Salary Related Pension Schemes) (Consequential Amendments and Savings) Order (Northern Ireland) 2016

for the purposes of this Part and Part 2, on 6th April 2016;

for the purposes of Part 3, on 6th April 2017;

for the purposes of Part 4, on 6th April 2019, and

for the purposes of Part 5, on 6th April 2021.

The Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 12 (transfer of member’s accrued rights without consent)—

In regulation 24 (schemes funded by level annual premiums) after paragraph (3)^f4 insert—

“(3A)

For the purposes of paragraph (3)(a), any alteration of the scheme which arises solely from the abolition of contracting-out for salary related schemes under the Pensions Act (Northern Ireland) 2015^f5 does not constitute a material alteration.”.

in paragraph (a) for “contracted-out by virtue of section 5(2B) of the Act” substitute “that was a salary related contracted-out scheme^f3”;

in paragraph (b)—

in paragraph (b)(i) for “contracted-out by virtue of section 5(2B) of the Act” substitute “that was a salary related contracted-out scheme”.

after the definition of “approved scheme” insert—

• ““contracted-out” is to be construed in accordance with section 3B(2)^f2 of the Pension Schemes Act (meaning of “contracted-out scheme” and “appropriate scheme” etc);”;

in the definition of “relevant lump sum retirement benefits scheme”, in paragraph (b) for “is not contracted-out” substitute “was not contracted-out at any time before the second abolition date”;

after the definition of “relevant statutory scheme” insert—

• ““the second abolition date” has the meaning given in section 176(1) of the Pension Schemes Act^f3;”.

The Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996^f1 are amended in accordance with paragraphs (2) to (11).

In regulation 1(2) (interpretation)—

In regulation 3 (transfers of guaranteed minimum pensions to salary related contracted-out schemes)—

In regulation 5^f8 (transfer payments in respect of guaranteed minimum pensions to occupational and personal pension schemes) omit “a salary related contracted-out scheme,”.

In regulation 7(1)(a) and (b)^f9 (transfers of liability in respect of section 5(2B) rights – general)—

In regulation 8 (transfer payments to salary related contracted-out schemes in respect of section 5(2B) rights)—

In regulation 12 (modifications of Part III of the 1993 Act on transfers of, and transfer payments in respect of, guaranteed minimum pensions from occupational pension schemes)—

In regulation 13 (modifications of Part III of the 1993 Act on transfers from policies of insurance or annuity contracts)—

Omit regulation 13A^f11 (modification of section 8C where transfer payments are made to salary related contracted-out schemes).

In Schedule 1 (further conditions for transfers of guaranteed minimum pensions)—

In Schedule 2 (modifications of Part III of the 1993 Act)—

Regulation 12(a) and (b) of, and paragraph 2 of Schedule 2 to, the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996 (modifications of Part III of the 1993 Act) continue to have effect as if the amendments made by Article 5(7)(b) and (c) and (11)(c) had not been made, in relation to a transfer of accrued rights to guaranteed minimum pensions of an earner who was in employment which was contracted-out by reference to the receiving scheme, where that transfer occurred before the second abolition date.

Regulation 13(a) and (b) of, and paragraph 2 of Schedule 2 to, the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996 continue to have effect as if the amendments made by Article 5(8)(b) and (c) and (11)(c) had not been made, in relation to a transfer of accrued rights to guaranteed minimum pensions from an appropriate policy where the earner was in employment which was contracted-out by reference to the receiving scheme and the transfer occurred before the second abolition date.

For the purposes of this Article—

• “accrued rights” has the meaning given in section 16(6) of the Pension Schemes Act^f1 (transfer of accrued rights);

• “appropriate policy” means a policy of insurance or an annuity contract as described in section 15(4)^f2 of the Pension Schemes Act (discharge of liability where guaranteed minimum pensions are secured by insurance policies or annuity contracts);

• “employment which was contracted-out” is to be construed in accordance with section 4(1)^f3 of the Pension Schemes Act (meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”);

• “guaranteed minimum pension” has the meaning given in section 4(2)^f4 of the Pension Schemes Act;

• “the second abolition date” has the meaning given in section 176(1)^f5 of the Pension Schemes Act.

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

In regulation 8 (requirements to be satisfied by transferee schemes, annuities, etc.)—

In regulation 10(3) (disapplication of Article 38) in the definition of “relevant lump sum retirement benefits scheme” in paragraph (b) for “is not contracted-out” substitute “was not contracted-out at any time before the second abolition date”.

omit the definition of “abolition date”^f2;

after the definition of “appointed day” insert—

• ““the first abolition date” has the meaning given in section 176(1)^f3 of the Act;”;

in the definition of “protected rights”^f4 before “abolition date” insert “first”;

for the definition of “section 5(2B) rights”^f5 substitute—

• ““section 5(2B) rights” has the meaning given in regulation 2(1) of the Occupational Pension Schemes (Schemes that were Contracted-out) Regulations (Northern Ireland) 2016;”.

The Social Security (Contracting-out and Qualifying Earnings Factor) Regulations (Northern Ireland) 1997^f1 are amended in accordance with paragraph (2).

In regulation 2(2) (modification of the application of section 44(5) of the Contributions and Benefits Act)—

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

In regulation 1(2) (interpretation) in the definition of “relevant scheme” for “section 8C(2)” substitute “section 33A^f2”.

In regulation 8(b) (prohibition or restriction of the discharge of liability to provide pensions under a relevant scheme: exceptions) for the words from “or Part V” to the end substitute “, regulation 45 or 46 (as it had effect at the time of approval of arrangements for the scheme ceasing to be contracted-out) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996^f3, or regulation 6, 8 or 11 of the Occupational Pension Schemes (Schemes that were Contracted-out) Regulations (Northern Ireland) 2016 apply”.

In regulation 9(3) (circumstances in which liability to provide pensions under a relevant scheme may be discharged), for “is to cease” substitute “has ceased”.

In regulation 11(3)(e)(i) (conditions on which liability to provide pensions under a relevant scheme may be discharged) for “section 8C(1) (transfer, commutation, etc.)” substitute “section 33A(1) (transfer of liabilities etc.: schemes contracted-out after 6 April 1997)”.

The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights and Miscellaneous Amendment) Regulations (Northern Ireland) 1998^f1 are amended in accordance with paragraphs (2) to (4).

In regulation 1(2) (interpretation) for the definition of “section 5(2B) rights” substitute—

• ““section 5(2B) rights” has the meaning given in regulation 2(1) of the Occupational Pension Schemes (Schemes that were Contracted-out) Regulations (Northern Ireland) 2016;”.

In regulation 2 (determination of the amount required for restoring State scheme rights) for “contracted-out occupational pension scheme which is being wound up” substitute “scheme which was a contracted-out occupational pension scheme and which started to wind up before the second abolition date^f2”.

In regulation 3(3)(a) and (b)^f3 (method of calculation where no election to pay a contributions equivalent premium may be made) for “the scheme being such a scheme” substitute “the scheme having been such a scheme”.

The Occupational Pension Schemes (Validation of Rule Alterations) Regulations (Northern Ireland) 1998^f1 are amended in accordance with paragraphs (2) and (3).

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

In regulation 2 (validation of rule alterations made before 6th April 1997)—

The Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 1(2) (interpretation)—

In regulation 3(a) (circumstances in which an application for an extension of the implementation period may be made) for sub-paragraph (ii) substitute—

“(ii)

the scheme has ceased to be a contracted-out scheme in the 12 month period ending on the date of the application (whether by virtue of the abolition of contracting-out for salary related schemes under the Pensions Act (Northern Ireland) 2015 or otherwise);”.

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

In regulation 1(2) (interpretation) omit the definition of “salary related contracted-out scheme”.

In regulation 26(a) (extension of time limits for payment of cash equivalents) for sub-paragraph (ii) substitute—

“(ii)

the scheme has ceased to be a contracted-out scheme in the 12-month period ending on the date of the application (whether by virtue of the abolition of contracting-out for salary related schemes under the Pensions Act (Northern Ireland) 2015 or otherwise);”.

for “is reduced”, in both places where it occurs, substitute “was reduced”;

after “section 37”, in both places where it occurs, insert “(as it then had effect)”.

The Additional Pension and Social Security Pensions (Home Responsibilities) (Amendment) Regulations (Northern Ireland) 2001^f1 are amended in accordance with paragraphs (2) to (4).

In regulation 1(2) (interpretation)—

Omit regulation 1(3).

In regulation 2(a) (calculation of additional pension where contributions equivalent premium paid or treated as paid) after “regulations made thereunder” insert “(as they then had effect)”.

in paragraph (1)(g)(ii) for “is not contracted-out” substitute “was not contracted-out at any time before the second abolition date”;

after paragraph (8)^f2 add—

“(9)

In this regulation—

• “contracted-out” is to be construed in accordance with section 3B(2) of the Pension Schemes Act;

• “the second abolition date” has the meaning given in section 176(1) of the Pension Schemes Act.”.

in paragraph (1)(f)(ii) for “is not contracted-out” substitute “was not contracted-out at any time before the second abolition date”;

after paragraph (2) add—

“(3)

In this regulation—

• “contracted-out” is to be construed in accordance with section 3B(2) of the Pension Schemes Act;

• “the second abolition date” has the meaning given in section 176(1) of the Pension Schemes Act.”.

in paragraph (1)(f)(ii) for “is not contracted-out” substitute “was not contracted-out at any time before the second abolition date”;

after paragraph (2) add—

“(3)

In this regulation—

• “contracted-out” is to be construed in accordance with section 3B(2) of the Pension Schemes Act;

• “the second abolition date” has the meaning given in section 176(1) of the Pension Schemes Act.”.

the provisions of the regulation shall become paragraph (1) of the regulation;

in paragraph (1) in sub-paragraph (g)(ii) for “is not contracted-out” substitute “was not contracted-out at any time before the second abolition date”;

after paragraph (1) add—

“(2)

In this regulation—

• “contracted-out” is to be construed in accordance with section 3B(2) of the Pension Schemes Act;

• “the second abolition date” has the meaning given in section 176(1) of the Pension Schemes Act.”.

omit the entry relating to “Sections 5 and 6”;

for the entry relating to “Sections 8A to 8D” substitute—

“

Section 8Ef2

Former salary related contracted-out schemes to comply with GMP requirements

”;

in the entry relating to “Sections 46 and 47” for “Sections 46 and 47” substitute “Section 47”.

The Employers’ Duties (Registration and Compliance) Regulations (Northern Ireland) 2010^f1 are amended in accordance with paragraphs (2) and (3).

In regulation 6(1) (records: employers) omit sub-paragraph (c).

In regulation 8 (period of preservation of records) after paragraph (2) add—

“(3)

Where a certificate issued in respect of a jobholder under section 3(1) of the Pension Schemes Act was required to be kept under regulation 6(1)(c) (as it had effect before 6th April 2016), that certificate must be preserved until 5th April 2022.”.

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

In regulation 13—

The Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000 are amended in accordance with paragraphs (2) and (3).

In regulation 1(2) (interpretation)—

In regulation 3(a) (circumstances in which an application for an extension of the implementation period may be made) for sub-paragraph (ii)^f4 substitute—

“(ii)

the scheme ceased to be a contracted-out scheme in the 12-month period ending on the second abolition date, and the trustees or managers of the scheme are seeking to reach an agreement with HMRC as to the scheme’s liabilities for guaranteed minimum pensions or section 5(2B) rights of members through the scheme reconciliation service but such agreement has not yet been reached;”.

The Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000 are amended in accordance with paragraph (2).

In regulation 26 (extension of time limits for payment of cash equivalents)—

The Occupational Pension Schemes (Discharge of Liability) Regulations (Northern Ireland) 1997 are amended in accordance with paragraphs (2) and (3).

In regulation 9^f1 (circumstances in which liability to provide pensions under a relevant scheme may be discharged)—

In regulation 11(1) (conditions on which liability to provide pensions under a relevant scheme may be discharged) after “regulation 9(2)(b)” omit “and (3)”.

The Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996 are amended in accordance with paragraph (2).

Omit regulation 13(1)(a)(ii)^f1 (extension of time limits for payment of cash equivalents).

The Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000 are amended in accordance with paragraphs (2) and (3).

In regulation 1(2) omit the definitions of “contracted-out”, “guaranteed minimum pension”, “HMRC” and “the second abolition date”^f1.

Omit regulation 3(a)(ii)^f2.

The Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000 are amended in accordance with paragraph (2).

Omit regulation 26(1)(a)(ii)^f1.