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Section 8B Reference scheme.F1

Northern Ireland

(F21)

This section applies for the purposes of section 8A.

(2)

A reference scheme is an occupational pension scheme which—

(a)

complies with each of subsections (3) and (4), and

(b)

complies with any prescribed requirements.

(3)

In relation to earners employed in employed earner’s employment, a reference scheme is one which provides—

(a)

for them to be entitled to a pension under the scheme commencing at a normal pension age of 65 and continuing for life, and

(b)

for the annual rate of the pension at that age to be—

(i)

1/80th of average qualifying earning in the last three tax years preceding the end of service,

multiplied by

(ii)

the number of years service, not exceeding such number as would produce an annual rate equal to half the earnings on which it is calculated.

(4)

In relation to F3widows, widowers or surviving civil partners, a reference scheme is one which provides—

(a)

for the widows, widowers or surviving civil partners of earners employed in employed earner’s employment (whether the earners die before or after attaining the age of 65) to be entitled, except in prescribed circumstances, to pensions under the scheme; and

(F4b)

for entitlements to those pensions to commence on the day following the death of the earners, and

(c)

except in prescribed circumstances, for the annual rate of those pensions to be—

(i)

if the earners die on or after their normal pension age, 50 per cent. of the annual rate which a reference scheme was required to provide to the deceased earners immediately before their death, or

(ii)

if the earners die before their normal pension age, 50 per cent. of the annual rate of pension which a reference scheme would have been required to provide to the deceased earners if the date of their death had been their normal pension age, and

(d)

if those pensions are payable in respect of earners who die—

(i)

otherwise than in pensionable service under the scheme, and

(ii)

before their own entitlements to pensions under the scheme have commenced,

for those pensions to be revalued in accordance with section 80 as though they were such benefits as are mentioned in section 79(1)(a).

(5)

For the purposes of this section, an earner’s qualifying earnings in any tax year are 90 per cent. of the amount by which the earner’s earnings—

(a)

exceed the qualifying earnings factor for that year; and

(b)

do not exceed F5the applicable limit.

(6)

Regulations may modify subsections (2) to (5).

(7)

In this section—

  • F6“the applicable limit” means—

    1. (a)

      in relation to a tax year before F72009–10, the upper earnings limit for the year multiplied by 53;

    2. (b)

      in relation to 2009–10 or any subsequent tax year, the upper accrual point F8multiplied by 53;

  • “normal pension age”, in relation to a scheme, means the age specified in the scheme as the earliest age at which pension becomes payable under the scheme (apart from any special provision as to early retirement on grounds of ill-health or otherwise),

  • “qualifying earnings factor”, in relation to a tax year, has the meaning given by section 121(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, and

  • “upper earnings limit”, in relation to a tax year, means the amount specified for that year by regulations made by virtue of section 5(3) of that Act as the upper earnings limit for Class 1 contributions.

Annotations

Textual amendments

F1

Ss. 8A-8D inserted (6.4.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 133(5); S.R. 1996/91, arts. 2(d)(h), Sch. Pt. IV

F2

Ss. 8A-8D repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 11 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2) and with further savings in art. 2(3))

F3

Words in s. 8B(4) substituted (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order (Northern Ireland) 2005 (S.R. 2005/433), art. 1(3), Sch. 1 para. 4

F4

S. 8B(4)(b)-(d) substituted (6.4.1997) for s. 8B(4)(b) by S.R. 1997/162, reg. 2

F5

Words in s. 8B(5)(b) substituted (11.2.2008) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 33(a)

F6

Words in s. 8B(7) inserted (11.2.2008) by Pensions Act (Northern Ireland) 2008 (c. 1), Sch. 1 para. 33(b)

F7

Words in s. 8B(7) substituted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 7 para. 9(a) (with s. 73)

F8

Words in s. 8B(7) inserted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), s. 118(2), Sch. 7 para. 9(b) (with s. 73)

Notes on Part III

Textual amendments

F1

Words in Pt. 3 heading omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 3(b)

F2

Words in Pt. 3 heading substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 3(a)

Modifications

C1

Pt. 3: power to modify conferred (1.6.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 146(1); S.R. 1996/91, art. 2(f); S.R. 1997/192, art. 2

Pt. 3: power to transfer functions conferred (1.4.1999) by 1999 c. 2, s. 23(1)(2)(6); S.I. 1999/527, art. 2(b), Sch. 2

C2

Pt. 3 modified (24.7.2014) by The Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 6(2)

Notes on Chapter I

Textual amendments

F1

Pt. 3 Ch. 1 heading substituted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 4

Notes on Requirements for certification of occupational pension schemes applying from the principal appointed day

Textual amendments

F1

S. 8A cross-heading repealed (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 10 (with savings until 6.4.2019 by S.R. 2016/106, arts. 1(1)(2), 2(1)(2) and with further savings in art. 2(3))