Regulation 18 Notional incomeI1

A claimant who has attained the qualifying age shall be treated as possessing the amount of any retirement pension income—

but only from the date on which that income could be expected to be acquired if a claim for it were made.

Paragraph (1) is subject to paragraphs (1B) F3, (1CA) and (1CB).

Where a claimant—

he shall be treated for the purposes of paragraph (1) as possessing the amount of retirement pension income to which he might expect to be entitled if he were to elect to receive a lump sum.

Paragraphs (1CA) and (1CB) apply for the purposes of paragraph (1) (or, where applicable, paragraph (1) read with paragraph (1B)).

Where a benefit or allowance in payment in respect of the claimant would be adjusted under the Social Security (Overlapping Benefits) Regulations (Northern Ireland) 1979 if the retirement pension income had been claimed, he shall be treated as possessing that income minus the benefit or allowance in payment.

Where a benefit or allowance in payment in respect of the claimant would require an adjustment to be made under the Social Security (Overlapping Benefits) Regulations (Northern Ireland) 1979 to the amount of retirement pension income payable had it been claimed, he shall be treated as possessing that retirement pension income minus the adjustment which would be made to it.

A claimant who has attained the qualifying age shall be treated as possessing income from an occupational pension scheme which he elected to defer, but only from the date on which it could be expected to be acquired if a claim for it were made.

Where a person, F5who has attained the qualifying age , is a person entitled to money purchase benefits under an occupational or personal pension scheme, or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract, and –

the amount of any income foregone shall be treated as possessed by him, but only from the date on which it could be expected to be acquired were an application for it to be made.

The amount of any income foregone in a case to which either head (i) or (ii) of paragraph (2)(a) applies shall be the maximum amount of income which may be withdrawn from the fund.

The amount of any income foregone in a case to which either head (iii) of paragraph (2)(a) or paragraph (2)(b) applies shall be the income that the claimant could have received without purchasing an annuity had the funds held under the relevant scheme or retirement annuity contract been held under a personal pension scheme or occupational pension scheme where income withdrawal was available and shall be determined in the manner specified in paragraph (3).

In paragraph (2), “money purchase benefits” has the meaning it has in section 176(1) of the Pension Schemes (Northern Ireland) Act 1993^f1.

F6Subject to F7the following paragraphs , a person shall be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to state pension credit or increasing the amount of that benefit.

Paragraph (6) shall not apply in respect of the amount of an increase of pension or benefit where a person, having made an election in favour of that increase of pension or benefit under Schedule 5 or 5A to the Contributions and Benefits Act or under Schedule 1 to the Graduated Retirement Benefit Regulations, changes that election in accordance with regulations made under Schedule 5 or 5A to that Act in favour of a lump sum.

Paragraph (6) shall not apply in respect of the amount of an increase of pension where a person, having made a choice in favour of that increase of pension under section 8(2) of the Pensions Act (Northern Ireland) 2015, alters that choice in favour of a lump sum, in accordance with regulations made under section 8(7) of that Act.

Paragraph (6) shall not apply in respect of the amount of an increase of pension where a person, having made a choice in favour of that increase of pension in accordance with regulations made under section 10 of the Pensions Act (Northern Ireland) 2015 which include provision corresponding or similar to section 8(2) of that Act, alters that choice in favour of a lump sum, in accordance with regulations made under section 10 of that Act which include provision corresponding or similar to regulations made under section 8(7) of that Act.

Paragraph (6) shall not apply in respect of any amount of income other than earnings, or earnings of an employed earner, arising out of the F11claimant participating as a service user .

In paragraph (7), “lump sum” means a lump sum under Schedule 5 or 5A to the Contributions and Benefits Act or under Schedule 1 to the Graduated Retirement Benefit Regulations.

In paragraph (7ZA), “lump sum” means a lump sum under section 8 of the Pensions Act (Northern Ireland) 2015.

In paragraph (7ZB), “lump sum” means a lump sum under regulations made under section 10 of the Pensions Act (Northern Ireland) 2015.

For the purposes of paragraph (6), a person is not to be regarded as depriving himself of income where—

In paragraph (9) ”registered pension scheme” has the meaning given in section 150(2) of the Finance Act 2004.