Explanatory note

These Regulations make provision for the indexation requirements contained in Article 51(2) and (3) of the Pensions (Northern Ireland) Order 1995 (“the Order”) to apply to pension rights which have been transferred into an occupational pension scheme.

Regulation 1 provides for the citation, commencement and interpretation of the Regulations.

Regulation 2(1) provides for Article 51(2) and (3) of the Order to apply, on or after the day appointed for the coming into operation of Article 51 of the Order for purposes other than authorising the making of regulations (“the appointed day”), to such part of a pension payable by an occupational pension scheme to which that Article applies as is derived from a transfer credit allowed by the scheme in respect of rights which have previously been subject to indexation under the requirements of Article 51 or 158 of the Order as if those rights were attributable to pensionable service or to payments in respect of employment on or after the appointed day.

Regulation 2(2) provides an exception from the provisions of regulation 2(1) in any case where a transfer credit has been allowed by an occupational pension scheme to which Article 51 of the Order applies in respect of rights which have previously been held in a personal pension scheme and which were not subject to the requirements of Article 158 of the Order in that scheme.

Regulation 3 provides for Article 51(2) and (3) of the Order to apply, on or after the appointed day, to such part of a pension payable by an occupational pension scheme to which that Article applies as is derived from a transfer payment accepted by the scheme from a policy of insurance or annuity contract in respect of rights which have previously been subject to indexation under the requirements of Article 51 or 158 of the Order as if those rights were attributable to pensionable service or to payments in respect of employment on or after the appointed day.

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 the enabling provisions of the Order under which these Regulations are made as follows—

Article 51(5), for the purpose only of authorising the making of regulations, on 6th April 1996;

Article 166(1) to (3), in so far as not already in operation, on 6th April 1996.

As these Regulations make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Social Security in relation to Great Britain, the requirement for consultation under Article 117(1) of the Order does not apply by virtue of paragraph (2)(e) of that Article.