Regulation 11 Amendment of the Pension Sharing (Implementation and Discharge of Liability) RegulationsI1

The Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000^f1 shall be amended in accordance paragraphs (2) to (5).

In regulation 1(2) (interpretation)—

For regulation 6 (discharge of liability in respect of a pension credit following the death of the person entitled to the pension credit), there shall be substituted—

“Discharge of liability in respect of a pension credit following the death of the person entitled to a pension credit

6

(1)

The person responsible for the pension arrangement shall, following the death of the person entitled to the pension credit, discharge his liability in respect of a pension credit in accordance with this regulation.

(2)

Where the rules or provisions of a pension arrangement so provide and provided that any requirements of the Inland Revenue under Part XIV of the Income and Corporation Taxes Act 1988^f2 are satisfied, the person responsible for the pension arrangement shall discharge his liability in respect of a pension credit by undertaking to—

(a)

make—

(i)

a payment of a lump sum;

(ii)

payments of a pension, or

(iii)

payments of both a lump sum and a pension,

to one or more persons, or

(b)

enter into an annuity contract or take out a policy of insurance with an insurance company for the benefit of one or more persons, or

(c)

make a payment or, as the case may be, payments under sub-paragraph (a) and enter into an annuity contract or take out an insurance policy under sub-paragraph (b).

(3)

Where paragraph (2)(b) or (c) applies, the annuity contract entered into or insurance policy taken out must satisfy the requirements of paragraph 6(2) of Schedule 5 (qualifying arrangements) and regulation 11.

(4)

Where the provisions of paragraph (2) do not apply, liability in respect of a pension credit shall be discharged by retaining the value of the pension credit in the pension arrangement from which that pension credit was derived.

(5)

Where—

(a)

liability in respect of a pension credit has been discharged in accordance with paragraph (2), and

(b)

the value of the payment or payments made, the annuity contract entered into or the insurance policy taken out, as the case may be, is less than the value of the pension credit,

the value of an amount equal to the difference between the value of the pension credit and the value of that payment or those payments, that contract or policy, as the case may be, shall be retained in the pension arrangement from which that pension credit was derived.”.

In regulation 7(2) (discharge of liability in respect of a pension credit—funded pension schemes)—

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