Explanatory note

These Regulations specify further circumstances in which age-related payments shall not be paid (in addition to those contained in regulation 37 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (S.R. 1996 No. 493)) and require the trustees or managers of an occupational pension scheme to provide affected members and prospective members with certain relevant information.

Regulation 1 deals with citation, commencement and interpretation.

Regulation 2 provides that the age-related payment shall not be paid where an age-related move to a money purchase scheme took place before 6th April 1997.

Regulation 3 provides that the age-related payment shall not be paid in respect of an entrant to a money purchase scheme before 6th April 1997, if the employer has more than one scheme and rules of the schemes require an age-related move to a money purchase scheme.

Regulation 4 provides that the age-related payment shall not be paid in respect of an entrant to a scheme before 6th April 1997 if he is allowed because of his age only to be admitted to a money purchase scheme.

Regulation 5 provides that the age-related payment shall not be paid after an age-related move to a money purchase scheme or money purchase part of a hybrid scheme (as defined in Article 146 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))) on or after 6th April 1997.

Regulation 6 provides that the age-related payment shall not be paid in respect of any new entrant to the money purchase part of a hybrid scheme on or after 6th April 1997 if the rules of the scheme require an age-related move to the money purchase part. Similarly the age-related payment is not to be paid in respect of any new entrant to a money purchase scheme on or after 6th April 1997 if the employer has more than one scheme and rules of the schemes require an age-related move to a money purchase scheme.

Regulation 7 provides that the age-related payment shall not be paid in respect of a new entrant to a scheme on or after 6th April 1997 if he is allowed because of his age only to be admitted to a money purchase scheme or the money purchase part of a hybrid scheme.

If, under regulation 2 or 5, a move would result in the age-related payment not being paid, regulation 8 requires trustees or managers to notify an earner who is to be moved of the consequences of that move.

If, under regulation 3, 4, 6 or 7 joining a scheme would result in the age-related payment not being paid, regulation 9 requires the trustees or managers to notify prospective members of that fact and of its consequences.

Regulation 10 provides for the imposition of penalties by the Occupational Pensions Regulatory Authority if certain of the disclosure requirements imposed by regulations 8 and 9 are not complied with.

Sections 38A(3) and 164 of the Pension Schemes (Northern Ireland) Act 1993, enabling provisions under which these Regulations are made, were inserted and substituted respectively by Articles 134(4) and 151 of the Pensions (Northern Ireland) Order 1995. The Pensions (1995 Order) (Commencement No. 2) Order (Northern Ireland) 1996 (S.R. 1996 No. 91 (C. 4)) provides for the coming into operation of Article 134, for the purpose only of authorising the making of regulations, on 6th April 1996. The Pensions (1995 Order) (Commencement No. 4) Order (Northern Ireland) 1996 (S.R. 1996 No. 307 (C. 18)) provides for the coming into operation of Article 151, for the purpose only of authorising the making of regulations, on 23rd July 1996.