Explanatory note

Articles 77 to 84 of, and Annex VIII to, Council Regulation (EEC, Euratom, ECSC) No. 259/68 (O.J. No. L 56, 4.3.1968 p. 1 (O.J./S.E. Series I Chapter 1968(I) p. 30)) make provision in respect of the pension scheme for officials of EU institutions. Article 11(2) and (3) of Annex VIII provides for the transfer of pension rights into that scheme.

The Transfer of State Pensions and Benefits Regulations 2007 (S.I. 2007/1398) (“the 2007 Regulations”) are made under section 2(2) of the European Communities Act 1972 (c. 68). Those Regulations make provision enabling the United Kingdom to transfer rights accrued by virtue of a person’s National Insurance contributions to the EU scheme.

These Regulations are also made under section 2(2) of the European Communities Act 1972. They amend the 2007 Regulations in order to:

• make additional provision as to which accrued rights may be transferred into the EU scheme;

• make full provision in respect of Northern Ireland legislation;

• update existing references to the European Communities to refer to the European Union in accordance with changes in terminology resulting from amendments to the Treaty on European Union and the Treaty Establishing the European Community by the Treaty of Lisbon, signed at Lisbon on 13th December 2007.

Regulation 3 amends regulation 1 of the 2007 Regulations. It inserts definitions which relate to the additional provisions dealing with the transfer of accrued rights, and to provide definitions that include reference to Northern Ireland legislation. Regulation 3 also amends regulation 1 of the 2007 Regulations to provide for definitions which use terminology appropriate to the European Union.

The definition of “relevant benefit”, inserted by regulation 3(2)(c), also adds contributory employment and support allowance under Part 1 of the Welfare Reform Act 2007 (c. 5) and Part 1 of the Welfare Reform Act (Northern Ireland) 2007 (c. 2 (N.I.)) as a benefit relevant for the purposes of transferable rights under regulation 2 of the 2007 Regulations.

Regulation 3(3) adds a provision to regulation 1 of the 2007 Regulations which provides that references to an Article of, or an Annex to, Council Regulation (EEC, Euratom, ECSC) No. 259/68 are references to that Article or Annex as amended from time to time.

Regulation 4 amends regulation 2 of the 2007 Regulations. Regulation 4(2)(a) and (4) makes amendments which provide that rights accrued, by virtue of a person’s National Insurance contributions, in respect of any period during which a person is in active employment with an EU institution may not be transferred to the EU pension scheme. However, this does not apply to a period during which a person is on secondment from the EU institution or to periods during which a person is on leave from an EU institution on personal grounds.

The remaining provisions of regulation 4 insert references to Northern Ireland legislation equivalent to that already provided by the 2007 Regulations in respect of Great Britain and make consequential provision.

Regulation 5 updates references in regulations 3 and 6 to 9 of the 2007 Regulations in respect of the change in terminology appropriate to the European Union.

Regulation 6 makes amendments consequential to the addition of references to Northern Ireland legislation.

Regulation 7 revokes the Transfer of State Pensions and Benefits Regulations (Northern Ireland) 2007 (S.R. (N.I.) 2007 No. 286.); the 2007 Regulations apply to the whole of the United Kingdom.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.