Explanatory note

These Regulations provide for the circumstances in which the implementation period may be extended, postponed or in which it may cease, and how a person responsible for a pension arrangement may discharge his liability in respect of a pension credit for the purposes of Schedule 5 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (“the 1999 Order”). They also provide for the circumstances concerning the failure by the trustees or managers of an occupational pension scheme to discharge their liability within the implementation period or, where an application is made for leave to appeal against a pension sharing order out of time, for the postponement or cessation of the implementation period.

Regulation 1 provides for citation, commencement and interpretation.

Part II (regulations 2 to 5) deals with the extension, postponement or cessation of the implementation period.

Regulation 2 specifies the period within which the trustees or managers of an occupational pension scheme are to notify the Occupational Pensions Regulatory Authority (“the Regulatory Authority”) should they fail to discharge their liability in respect of a pension credit within the implementation period.

Regulation 3 sets out the circumstances in which the Regulatory Authority may grant an extension of the implementation period.

Regulation 4 provides for the postponement or cessation of the implementation period for a pension credit when an application is made for leave to appeal out of time.

Regulation 5 sets out the maximum penalties which the Regulatory Authority may impose in any case where the Regulatory Authority are satisfied that a trustee or manager has not taken all reasonable steps to ensure that liability for the pension credit was discharged within the implementation period, or to ensure that the Regulatory Authority was notified of the failure to discharge that liability within the period prescribed by regulation 2.

Part III, which comprises regulation 6, sets out how liability in respect of a pension credit may be discharged in the event of the death of the person entitled to a pension credit.

Part IV (regulations 7 to 18) provides for how liability in respect of a pension credit may be discharged.

Regulations 7 and 8 set out the circumstances in which the trustees or managers of a funded pension scheme and an unfunded pension scheme other than a public service scheme may discharge their liability in respect of a pension credit.

Regulation 9 sets out the circumstances in which a person responsible for an annuity contract or an insurance policy may discharge his liability in respect of a pension credit.

Regulation 10 provides for how the value of appropriate rights is to be calculated.

Regulation 11 specifies the requirements to be met by annuity contracts or policies of insurance in order for them to be qualifying arrangements.

Regulations 12 to 15 specify the requirements to be met by a pension arrangement in order for it not to be disqualified as a destination for a pension credit.

Regulations 16 to 18 specify the circumstances in which the amount of a pension credit may be reduced or increased.

As these Regulations, in so far as they are made under Part II of the Pensions (Northern Ireland) Order 1995 (“the 1995 Order”) and Part V of the 1999 Order, 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 does not apply by virtue of Article 117(2)(e) of the 1995 Order and Article 73(9) of the 1999 Order.

The Welfare Reform and Pensions (1999 Order) (Commencement No.3) Order (Northern Ireland) 2000 (S.R. 2000 No. 133 (C.5)) provides for the coming into operation of Articles 30(2)(a) and (4), 31(4)(c), 32(2)(b) of, and Schedule 5 to, the 1999 Order, enabling provisions under which these Regulations are made, in so far as they are not already in operation, on 1st December 2000.