Regulation 5 Means of assuring pension credit benefitI1

Northern Ireland Not yet in force

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg. 5(3)(b) and word omitted by Occupational and Personal Pension Schemes (EU Exit) 2019 reg. 14(2)(a)
reg. 5(4) words omitted by Occupational and Personal Pension Schemes (EU Exit) 2019 reg. 14(2)(b)
reg. 5 coming into force by Pension Sharing (Pension Credit Benefit) 2000 reg. 1(1)
reg. 5(3)(a)(b) substituted for reg. 5(3)(a)-(c) by Social Security and Pensions (Financial Services and Markets Act 2000) 2003 reg. 16(3)(a)
reg. 5(4) substituted by Social Security and Pensions (Financial Services and Markets Act 2000) 2003 reg. 16(3)(b)

(1)

The prescribed means by which a person’s pension credit benefit under a scheme must be assured for the purposes of section 97D(1)(b)^f1 (form of pension credit benefit and its alternatives) is by means of a transaction to which section 15 (discharge of liability where guaranteed minimum pensions are secured by insurance policies or annuity contracts) applies.

(2)

A transaction referred to in paragraph (1) must satisfy the requirements of regulation 12, 13 or 14 (discharge of liability where pension credit benefit or alternative benefits are secured by insurance policies or annuity contracts, conditions on which pension credit benefit secured by insurance policies and annuity contracts may be commuted, or other requirements applying to insurance policies and annuity contracts).

(3)

Where a transaction referred to in paragraph (1) applies, the insurance policy must be taken out, or the annuity contract must be entered into, with an insurance company which is—

(a)

authorised under section 3 or 4 of the Insurance Companies Act 1982^f2 (authorisation of insurance business) to carry on long term business (within the meaning of section 1 of that Act^f3 (classification));

(b)

in the case of a friendly society, authorised under section 32 of the Friendly Societies Act 1992^f4 (grant of authorisation by Commission: general) to carry out long term business under any of the Classes specified in Head A of Schedule 2 to that Act (activities of a friendly society: long term business), or

(c)

an EC company as defined in section 2(6) of the Insurance Companies Act 1982^f5 (restriction on carrying on insurance business), and which falls within paragraph (4).

(4)

An EC company falls within this paragraph if it—

(a)

carries on ordinary long-term insurance business (within the meaning of section 96(1) of the Insurance Companies Act 1982^f6) in the United Kingdom through a branch in respect of which such of the requirements of Part I of Schedule 2F to that Act^f7 (recognition in the United Kingdom of EC and EFTA companies: EC companies carrying on business etc. in the United Kingdom) as are applicable have been complied with, or

(b)

provides ordinary long-term insurance in the United Kingdom and such of the requirements of Part I of Schedule 2F to that Act as are applicable have been complied with in respect of insurance.

Annotations

Commencement

I1: Reg. 5 in operation at 1.12.2000, see reg. 1(1)

Footnotes

f1: Section 97D is inserted by Article 34 of the Welfare Reform and Pensions (Northern Ireland) Order 1999
f2: 1982 c. 50
f3: Section 1 was amended by S.I. 1990/1159
f4: 1992 c. 40; section 32(4) was substituted by regulation 4 of S.I. 1994/1984
f5: Section 2(6) was inserted by regulation 4(2) of S.I. 1994/1696
f6: There are amendments to this section which are not relevant to these Regulations
f7: Schedule 2F was inserted by regulation 45 of S.I. 1994/1696