Section 105 Sections 105 to 108: interpretation and scopeI1
Northern Ireland
“NI scheme” means an occupational pension scheme that was a salary-related contracted-out scheme in Northern Ireland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in Northern Ireland at any time if the scheme was contracted-out at that time by virtue of satisfying section 5(2) of the Pension Schemes (Northern Ireland) Act 1993 (as it then had effect).
“Scheme actuary”, in relation to an NI scheme, means—
the person for the time being appointed as actuary for the scheme under Article 47 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (professional advisers), or
if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under section 106.
“Section 33(1)” refers to section 33(1) of the Pension Schemes (Northern Ireland) Act 1993 (prohibition of alterations to rules of contracted-out schemes in certain circumstances).
“Regulation 42” refers to regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (S.R. (N.I.) 1996 No. 493).
References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).
An alteration purporting to have been made to the rules of an NI scheme is a “potentially remediable alteration” if—
by virtue of section 33(1) and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,
it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,
no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and
it is not excluded from the scope of remediation under sections 106 and 107 (see subsection (9)).
In subsection (7)(c) “positive action”, in relation to the purported alteration, means—
notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or
notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in subsection (7)(c)) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.
An alteration purporting to have been made to the rules of an NI scheme is excluded from the scope of remediation under sections 106 and 107 if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—
has, before this section comes into force, been determined by the court in qualifying legal proceedings,
was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before this section comes into force, or
was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when this section comes into force.
In subsection (9) “legal proceedings” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if—
they will determine a dispute as to the rules of the scheme, and
the parties are (or include)—
the trustees or managers of the scheme, and
one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).
Annotations
Commencement
- I1
S. 105 in force at Royal Assent, see s. 133(8)