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Pensions Act (Northern Ireland) 2008

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PART 1 — STATE PENSION

Entitlement to Category A and B retirement pensions

Additional pension: upper accrual point

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(5A) (1) This paragraph applies to— (a) a Category A retirement pension in a case where the contributor concerned attains pensionable age on or after 6th April 2010; (b) a Category B retirement pension payable by virtue of section 48A above in a case where the contributor concerned attains pensionable age on or after that date; (c) a Category B retirement pension payable by virtue of section 48B above in a case where the contributor concerned dies on or after that date without having attained pensionable age before that date. (2) The contribution condition for a Category A or Category B retirement pension in relation to which this paragraph applies is that— (a) the contributor concerned must, in respect of each of not less than 30 years of his working life, have paid or been credited with contributions of a relevant class or been credited (in the case of 1987–88 or any subsequent year) with earnings; and (b) in the case of each of those years, the earnings factor derived as mentioned in sub-paragraph (3) below must be not less than the qualifying earnings factor for that year. (3) For the purposes of paragraph (b) of sub-paragraph (2) above, the earnings factor— (a) in the case of 1987–88 or any subsequent year, is that which is derived from— (i) so much of the contributor's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in paragraph (a) of that sub-paragraph as are primary Class 1 contributions were paid or treated as paid or earnings credited; and (ii) any Class 2 or Class 3 contributions for the year; or (b) in the case of any earlier year, is that which is derived from the contributions mentioned in paragraph (a) of that sub-paragraph. (4) Regulations may modify sub-paragraphs (2) and (3) above for the purposes of their application in a case where— (a) the contributor concerned has paid, or been credited with, contributions, or (b) contributions have been deemed to be, or treated as, paid by or credited to him, under the National Insurance Act (Northern Ireland) 1946 or the National Insurance Act (Northern Ireland) 1966.

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Category B retirement pension: removal of restriction on entitlement

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Credits for basic state pension, etc.

Contributions credits for relevant parents and carers

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(23A) (1) This section applies to the following benefits— (a) a Category A retirement pension in a case where the contributor concerned attains pensionable age on or after 6th April 2010, (b) a Category B retirement pension payable by virtue of section 48A below in a case where the contributor concerned attains pensionable age on or after that date, (c) a Category B retirement pension payable by virtue of section 48B below in a case where the contributor concerned dies on or after that date without having attained pensionable age before that date, (d) a widowed parent's allowance payable in a case where the contributor concerned dies on or after that date, (e) a bereavement allowance payable in a case where the contributor concerned dies on or after that date. (2) The contributor concerned in the case of a benefit to which this section applies shall be credited with a Class 3 contribution for each week falling after 6th April 2010 in respect of which the contributor was a relevant carer. (3) A person is a relevant carer in respect of a week if the person— (a) is awarded child benefit for any part of that week in respect of a child under the age of 12, (b) is a foster parent for any part of that week, or (c) is engaged in caring, within the meaning given by regulations, in that week. (4) Regulations may make provision for a person's entitlement to be credited with Class 3 contributions by virtue of falling within subsection (3)(b) or (c) above to be conditional on the person— (a) applying to be so credited in accordance with the prescribed requirements, and (b) complying with the prescribed requirements as to the provision of information to the Department. (5) The contributor concerned in the case of a benefit to which this section applies shall be credited with 52 Class 3 contributions for each tax year ending before 6th April 2010 in which the contributor was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3 to this Act. (6) But the maximum number of tax years for which a person can be credited with contributions under subsection (5) above is— (a) in the case of a benefit mentioned in subsection (1)(a) to (c) above, 22; (b) in the case of a benefit mentioned in subsection (1)(d) or (e) above, half the requisite number of years of the person's working life. (7) The table in paragraph 5(5) of Schedule 3 to this Act (requisite number of years of a working life of given duration) applies for the purposes of subsection (6)(b) above as it applies for the purposes of the second condition set out in paragraph 5(3) of that Schedule. (8) For the purpose of determining entitlement to a benefit to which this section applies, a week that falls partly in one tax year and partly in another is to be treated as falling in the year in which it begins and not in the following year. (9) In this section— - “the contributor concerned” has the meaning given in section 21(5)(a) above; - “foster parent” has the meaning given by regulations.

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Abolition of adult dependency increases

Category A and C retirement pensions: abolition of adult dependency increases

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applies in relation to a qualifying person at any time falling on or after 6th April 2010 but before the appropriate date.

Up-rating of basic state pension and other benefits

Up-rating of basic pension etc. and standard minimum guarantee by reference to earnings

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(132A) Whenever the Secretary of State makes an order under section 150A of the Great Britain Administration Act, the Department may make a corresponding order for Northern Ireland.

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Preservation of link with prices in case of other benefits

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(2A) In its application by virtue of subsection (1) above, section 44(4) below is to be read as if for the first amount specified in that provision there were substituted a reference to the amount prescribed for the purposes of this subsection.

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(1A) In its application by virtue of subsection (1) above, section 44(4) below is to be read as if for the first amount specified in that provision there were substituted a reference to the amount prescribed for the purposes of this subsection. (2) The weekly amount of a bereavement allowance is an amount equal to the amount prescribed for the purposes of subsection (1A) above.

; and

Additional pension: deemed earnings factors

Deemed earnings factors for purposes of additional pension

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(44B) (1) This section applies to 2010–11 and subsequent tax years. (2) For the purposes of section 44(6)(za) above, if any of Conditions A to C in subsections (3) to (5) below is satisfied for a relevant year to which this section applies, a pensioner is deemed to have an earnings factor for that year which— (a) is derived from so much of his earnings as did not exceed the applicable limit and on which primary Class 1 contributions were paid; and (b) is equal to the amount which, when added to any other earnings factors taken into account under that provision, produces an aggregate of earnings factors equal to the low earnings threshold. (3) Condition A is that the pensioner would, apart from this section, have an earnings factor for the year— (a) equal to or greater than the qualifying earnings factor (“the QEF”) for the year, but (b) less than the low earnings threshold for the year. (4) Condition B is that the pensioner— (a) would, apart from this section and section 44C below, have an earnings factor for the year less than the QEF for the year, but (b) is entitled to an aggregate amount of earnings factor credits for that year under section 44C below equal to the difference between the QEF for the year and the earnings factor mentioned in paragraph (a) above. (5) Condition C is that the pensioner is entitled to 52 earnings factor credits for that year under section 44C below. (6) This section has effect in relation to the flat rate introduction year and any subsequent tax year as if— (a) subsection (2)(b) above referred to an aggregate of earnings factors greater than the QEF, but less than the low earnings threshold, for the year (rather than to one equal to that threshold); and (b) Condition A in subsection (3) above (and the reference to it in subsection (2) above) were omitted. (7) In this section— (a) “the applicable limit” has the same meaning as in section 44 above; (b) “the low earnings threshold” means the low earnings threshold for the year concerned as specified in section 44A above; and (c) in subsections (3) and (4) above, any reference to the pensioner's earnings factor for a relevant year is to be construed in accordance with section 44(6)(za) above. (44C) (1) This section applies, for the purposes of Conditions B and C in section 44B(4) and (5) above, to 2010–11 and subsequent tax years. (2) In respect of each week— (a) which falls in a relevant year to which this section applies, and (b) in respect of which a pensioner is eligible for earnings factor enhancement, the pensioner is entitled to an earnings factor credit equal to 1/52 of the QEF for that year. This is subject to subsection (5) below. (3) A pensioner is eligible for earnings factor enhancement in respect of a week if one or more of the following apply— (a) he was a relevant carer in respect of that week for the purposes of section 23A above (see section 23A(3)); (b) carer's allowance was payable to him for any part of that week, or would have been so payable but for the fact that under regulations the amount payable to him was reduced to nil because of his receipt of other benefits; (c) severe disablement allowance was payable to him for any part of that week; (d) long-term incapacity benefit was payable to him for any part of that week or would have been so payable but for the fact that— (i) he did not satisfy the contribution conditions in paragraph 2 of Schedule 3 to this Act, or (ii) under regulations the amount payable to him was reduced to nil because of his receipt of other benefits or of payments from an occupational pension scheme or personal pension scheme; (e) he satisfies such other conditions as may be prescribed. (4) In subsection (3)(d)(ii) above “occupational pension scheme” and “personal pension scheme” have the meanings given by subsection (6) of section 30DD above for the purposes of subsection (5) of that section. (5) For the purposes of Condition B in section 44B(4) above a person is not entitled to an aggregate amount of earnings factor credits in respect of a year that is greater than the difference referred to in that Condition. (6) For the purposes of this section a week that falls partly in one tax year and partly in another is to be treated as falling in the year in which it begins and not in the following year. (7) In section 44B above and this section— (a) “the QEF” means the qualifying earnings factor, and (b) any reference to a person being entitled to an earnings factor credit of a particular amount (or to an aggregate amount of earnings factor credits) for a year is a reference to the person being treated as having for that year an earnings factor (within the meaning of section 44(6)(za) above) of the amount in question by virtue of subsection (2) above.

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Additional pension: simplification of accrual rates

Additional pension: removal of accrual band from 2010–11

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(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

Amount of surplus Amount of surplus Percentage
Band 1. Not exceeding LET 40
Band 2. Exceeding LET but not exceeding AUEL 10

;

(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

Amount of surplus Amount of surplus Percentage
Band 1. Not exceeding LET 40
Band 2. Exceeding LET but not exceeding AUEL 10

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(4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

Amount of surplus Amount of surplus Percentage
Band 1. Not exceeding LET 40
Band 2. Exceeding LET but not exceeding AUEL 10

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Additional pension: simplified accrual rates as from flat rate introduction year

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; and (d) in relation to the flat rate introduction year and subsequent tax years, the weekly equivalent of the amount calculated in accordance with Schedule 4B to this Act.

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“the flat rate introduction year” means such tax year as may be designated as such by order;

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Additional pension: upper accrual point

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(2B) “The applicable limit” means— (a) in relation to a tax year before the flat rate introduction year, the upper earnings limit; (b) in relation to the flat rate introduction year or any subsequent tax year, the upper accrual point.

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(c) “the applicable limit” means— (i) in relation to a tax year before the flat rate introduction year, the upper earnings limit; (ii) in relation to the flat rate introduction year or any subsequent tax year, the upper accrual point.

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Increase in state pension age

Increase in pensionable age for men and women

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PART 2 — OCCUPATIONAL AND PERSONAL PENSION SCHEMES

Contracting-out

Conversion of guaranteed minimum pensions

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(1A) But a scheme may be amended so as to omit provision of the kind specified in subsection (1)(a) and (b) if the conditions specified in section 20B are satisfied.

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(1A) But a scheme may be amended so as to omit provision of the kind specified in subsection (1) if the conditions specified in section 20B are satisfied.

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(20A) In this section and sections 20B to 20H— (a) the rules specified in sections 9(1)(a) and (b) and 13(1) are referred to as the “guaranteed minimum pension rules”, (b) “GMP conversion” means amendment of the scheme in relation to an earner so that it no longer contains the guaranteed minimum pension rules, (c) a “GMP-converted scheme” is a scheme which has been subject to GMP conversion, (d) “the conversion date” means the date on which that amendment takes effect, (e) “the pre-conversion benefits” means the benefits provided under the scheme immediately before the conversion date (disregarding money purchase benefits), (f) “the post-conversion benefits” means the benefits which are provided under the converted scheme (disregarding money purchase benefits), (g) “the converted scheme” means the scheme as it has effect immediately after conversion, and (h) “the trustees” in relation to a scheme means the trustees, managers or other persons responsible under the scheme for effecting amendments of it. (20B) (1) This section specifies the conditions referred to in sections 9(1A) and 13(1A) (for exemption from the requirement to guarantee a minimum pension). (2) Condition 1 is that the post-conversion benefits must be actuarially at least equivalent to the pre-conversion benefits. (3) Condition 2 is that if the earner was entitled immediately before the conversion date to the payment of a pension under the scheme, the converted scheme does not provide for a reduction of, or have the effect of reducing, the amount of that pension immediately after conversion. (4) Condition 3 is that the post-conversion benefits must not include money purchase benefits, apart from any money purchase benefits provided under the scheme immediately before the conversion date. (5) Condition 4 is that the converted scheme provides survivors' benefits in accordance with section 20D in such circumstances, and during such periods, as are prescribed by regulations. (6) Condition 5 is that the procedural requirements of section 20E have been complied with. (7) In applying these conditions to a scheme in respect of an earner— (a) it is immaterial whether or not on the conversion date the scheme was also converted in respect of other earners, and (b) it is immaterial (except for Condition 2) whether or not on the conversion date the earner was entitled to the payment of a pension under the scheme. (20C) Regulations may make provision for determining actuarial equivalence for the purpose of Condition 1 of section 20B. (20D) (1) This section specifies the benefits mentioned in Condition 4 of section 20B. (2) The first benefit is that if the earner dies (whether before or after attaining normal pension age) leaving a widow, she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period— (a) beginning with 6th April 1978, and (b) ending with 5th April 1997. (3) The second benefit is that if the earner dies (whether before or after attaining normal pension age) leaving a widower or surviving civil partner, he or she is entitled to a pension of at least half the value of the pension to which the earner would have been entitled by reference to employment during the period— (a) beginning with 6th April 1988, and (b) ending with 5th April 1997. (20E) (1) This section specifies the procedural requirements that must be complied with in order to satisfy Condition 5 of section 20B. (2) The employer in relation to the scheme must consent to the GMP conversion in advance. (3) The trustees must take all reasonable steps to— (a) consult the earner in advance, and (b) notify all members, and survivors, affected by the GMP conversion before, or as soon as is reasonably practicable after, the conversion date. (4) The Commissioners for Her Majesty's Revenue and Customs must be notified on or before the conversion date— (a) that the GMP conversion will occur or has occurred, and (b) that it affects the earner. (20F) (1) Regulations may prescribe— (a) restrictions on the transfer of the earner's accrued rights under a GMP-converted scheme; (b) conditions which must be complied with on the transfer of the earner's accrued rights under a GMP-converted scheme. (2) Section 16(2) and (5) shall apply to regulations under this section. (3) Where a member of a non-GMP-converted scheme makes an application under section 91(1), the trustees may with his consent adjust any guaranteed cash equivalent so as to reflect rights that would have accrued if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B. (20G) (1) The trustees of an occupational pension scheme may by resolution modify it so as to effect GMP conversion (whether in relation to present earners, pensioners or survivors) in accordance with the conditions of section 20B. (2) The subsisting rights provisions within the meaning of Article 67 of the Pensions (Northern Ireland) Order 1995 shall not apply to a power conferred by an occupational pension scheme to modify the scheme in so far as the power enables GMP conversion in accordance with the conditions of section 20B. (3) Where a scheme is amended to effect GMP conversion the trustees may include other amendments which they think are necessary or desirable as a consequence of, or to facilitate, the GMP conversion. (4) Where an occupational pension scheme is being wound up, the trustees may, before the winding up is completed, adjust rights under the scheme so as to reflect what would have happened if the scheme had been subject to GMP conversion in accordance with Conditions 1 to 4 of section 20B. (5) In the application of section 20E by virtue of subsection (1) above, a reference to the earner includes a reference to a pensioner or survivor whose pension is subjected to GMP conversion. (20H) (1) If the Regulatory Authority thinks that the conditions of section 20B have not been satisfied in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G, the Regulatory Authority may make an order declaring the amendment, modification or adjustment void— (a) in respect of a specified person or class of person, (b) to a specified extent, and (c) as from a specified time. (2) Where the Regulatory Authority makes an order under subsection (1) it may— (a) require the trustees of the scheme concerned to take specified steps; (b) declare that specified action of the trustees shall not be treated as a contravention of the scheme if it would not have been a contravention if the order under subsection (1) had not been made. (3) An order may be made under subsection (1) before or after the amendment, modification or adjustment takes effect. (4) If the Regulatory Authority thinks that the process of effecting a GMP conversion of a scheme has been commenced and that a relevant condition of section 20B is not being complied with, or may not be complied with, the Regulatory Authority may by order— (a) prohibit the taking of further steps in the GMP conversion (whether generally or in relation to specified steps), and (b) require the trustees of the scheme to take specified steps before resuming the process of GMP conversion. (5) Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) shall apply to a trustee who has failed to take all reasonable steps to secure compliance with the conditions of section 20B in relation to an amendment, modification or adjustment effected in accordance with any of sections 9(1A), 13(1A), 20F and 20G.

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(9) For the purposes of section 42, a person shall be treated as entitled to a guaranteed minimum pension to which, in the opinion of the Commissioners for Her Majesty's Revenue and Customs, he would have been entitled but for the amendment of a scheme so that it no longer contains the guaranteed minimum pension rules. (10) Where the earner's accrued rights have been transferred after the amendment of the scheme, in making the calculation under subsection (9) the Commissioners shall assume the application of section 12(1) after the transfer. (11) In making the calculation under subsection (9) the Commissioners shall ignore any effect of the scheme being wound up.

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(ta) a power under section 20H of the Pension Schemes Act;

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(3A) A power under section 20H (compliance with conditions of conversion of guaranteed minimum pension).

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Abolition of contracting-out for defined contribution pension schemes

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and is in force immediately before the abolition date, ceases to have effect on that date.

as it thinks necessary or expedient in connection with, or in consequence of, the provisions of subsection (1) and Schedule 4.

Dispute resolution

Dispute resolution arrangements

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(4A) The dispute resolution arrangements may make provision for securing that an application for the resolution of a pension dispute may not be made to the trustees or managers unless— (a) the matters in dispute have been previously referred to a person of a description specified in the arrangements (“the specified person”) in order for him to consider those matters, and (b) the specified person has given his decision on those matters, and for enabling the specified person's decision to be confirmed or replaced by the decision taken by the trustees or managers on the application, after reconsidering those matters.

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(5A) In a case where a reference is made to the specified person in accordance with provision made under paragraph (4A), paragraph (5) applies in relation to the specified person as it applies in relation to the trustees or managers in a case where an application for the resolution of a pension dispute is made to them.

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(3) The procedure— (a) must include provision requiring an application to which paragraph (3A) applies to be made by the end of such reasonable period as is specified; (b) may include provision about the time limits for making such other applications for the resolution of pension disputes as are specified. (3A) This paragraph applies to— (a) any application by a person with an interest in a scheme as mentioned in Article 50A(1)(e), and (b) any application by a person with an interest in a scheme as mentioned in Article 50A(1)(f) who is claiming to be such a person as is mentioned in Article 50A(1)(e).

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(4A) The provision made under paragraph (4)(c) may include provision for decisions of the trustees or managers to be taken on their behalf by one or more of their number.

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Actuarial guidance

Removal of Department’s role in approving actuarial guidance

15

Schedule 5 contains amendments removing requirements for, or powers to require, certain forms of actuarial guidance to be approved by the Department.

PART 3 — PERSONAL ACCOUNTS DELIVERY AUTHORITY

Initial function of the Personal Accounts Delivery Authority

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Management of the Authority

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PART 4 — GENERAL

Review of operation of Act

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Consequential etc. provision, repeals and revocations

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as it considers appropriate for the general purposes, or any particular purposes, of this Act, or in consequence of, or for giving full effect to, any provision made by this Act.

Interpretation

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Commencement

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Short title

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This Act may be cited as the Pensions Act (Northern Ireland) 2008.

SCHEDULE 1

PART 1 — CATEGORY A AND B RETIREMENT PENSIONS: SINGLE CONTRIBUTION CONDITION

1

(b) he satisfies the relevant conditions or condition;

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(1A) In subsection (1)(b) above “the relevant conditions or condition” means— (a) in a case where the person attains pensionable age before 6th April 2010, the conditions specified in Schedule 3, Part 1, paragraph 5; (b) in a case where the person attains pensionable age on or after that date, the condition specified in Schedule 3, Part 1, paragraph 5A.

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2

(b) satisfies the relevant conditions or condition.

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(2ZA) In subsection (2)(b) above “the relevant conditions or condition” means— (a) in a case where the spouse is a married man who attains pensionable age before 6th April 2010, the conditions specified in Schedule 3, Part 1, paragraph 5; (b) in a case where the spouse attains pensionable age on or after that date, the condition specified in Schedule 3, Part 1, paragraph 5A.

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(b) satisfies the condition specified in Schedule 3, Part 1, paragraph 5A.

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3

(1ZA) In subsection (1) above “the relevant conditions or condition” means— (a) in a case where the spouse— (i) died before 6th April 2010, or (ii) died on or after that date having attained pensionable age before that date, the conditions specified in Schedule 3, Part 1, paragraph 5; (b) in a case where the spouse died on or after that date without having attained pensionable age before that date, the condition specified in Schedule 3, Part 1, paragraph 5A.

.

4

In section 60 of the Contributions and Benefits Act (complete or partial failure to satisfy contribution conditions) after subsection (8) add—

(9) References in this section to a Category A or Category B retirement pension do not include one to which Schedule 3, Part 1, paragraph 5A applies.

.

5

After section 60 of the Contributions and Benefits Act insert—

(60A) (1) Subsection (2) below applies if the contribution condition in Schedule 3, Part 1, paragraph 5A is not satisfied in relation to a benefit to which that paragraph applies. (2) A person who would have been entitled to the benefit had the condition been satisfied shall nevertheless be entitled to a prescribed proportion of that benefit in respect of each of the years of the contributor's working life that falls within subsection (3) below. (3) A year of the contributor's working life falls within this subsection if it is a year in relation to which the requirements in paragraph 5A(2)(a) and (b) of Part 1 of Schedule 3 are satisfied. (4) “The contributor” means the person by whom the condition is to be satisfied. (5) In any case where— (a) an employed earner who is married or a civil partner dies on or after 6th April 2010 as a result of— (i) a personal injury of a kind mentioned in section 94(1) below, or (ii) a disease or injury such as is mentioned in section 108(1) below, and (b) the contribution condition specified in Schedule 3, Part 1, paragraph 5A is not satisfied in respect of the employed earner, that condition shall be taken to be satisfied for the purposes of the entitlement of the employed earner's widow, widower or surviving civil partner to a Category B retirement pension payable by virtue of section 48B above. (6) In subsections (1) to (3) above, any reference— (a) to the contribution condition in Schedule 3, Part 1, paragraph 5A, or (b) to the requirements of paragraph 5A(2)(a) and (b), includes a reference to that condition or those requirements as modified by virtue of paragraph 5A(4).

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PART 2 — CATEGORY B RETIREMENT PENSION: REMOVAL OF RESTRICTION ON ENTITLEMENT

6

In section 54 of the Contributions and Benefits Act (Category A and B retirement pensions: supplemental provisions) omit subsection (3) (election to defer pension entitlement requires consent of other party to marriage etc.).

7

In section 55 of the Contributions and Benefits Act (pension increase or lump sum where entitlement to retirement pension is deferred) in subsection (3) for paragraph (a) substitute—

(a) does not become entitled to that pension by reason only of not satisfying the conditions of section 1 of the Administration Act (entitlement to benefit dependent on claim), or

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8

In Schedule 5 to the Contributions and Benefits Act (pension increase or lump sum where entitlement to retirement pension is deferred) in paragraph 8, omit sub-paragraph (3) (construction of references where person's pension linked to contributions of other party to marriage or civil partnership).

PART 3 — CONTRIBUTIONS CREDITS FOR RELEVANT PARENTS AND CARERS

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

9

In section 22 of the Contributions and Benefits Act (earnings factors) after subsection (5) (regulations may provide for crediting of contributions) insert—

(5A) Section 23A below makes provision for the crediting of Class 3 contributions for the purpose of determining entitlement to the benefits to which that section applies.

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10

In section 172 of the Contributions and Benefits Act (Assembly, etc. control of regulations and orders) in subsection (2) (regulations and orders subject to confirmatory procedure) after paragraph (a) insert—

(aa) the first regulations made by virtue of section 23A(3)(c) above;

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The Welfare Reform Act (Northern Ireland) 2007 (c. 2)

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In Part 1 of Schedule 1 to the Welfare Reform Act (Northern Ireland) 2007 (employment and support allowance: additional conditions) in paragraph 1 (conditions relating to national insurance) in sub-paragraph (5) (meaning of “benefit”) after paragraph (c) insert—

(ca) credits under section 23A of that Act,

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PART 4 — CATEGORY A AND C RETIREMENT PENSIONS: ABOLITION OF ADULT DEPENDENCY INCREASES

12

In section 30B of the Contributions and Benefits Act (incapacity benefit: rate) in subsection (3) omit paragraph (b) (increase under section 83 or 85 to be disregarded in determining rate of incapacity benefit).

13

In section 78 of the Contributions and Benefits Act (Categories C and D retirement pensions and other benefits for the aged) in subsection (4) omit paragraph (d) (increase under section 83 or 85 to be disregarded in determining appropriate weekly rate of Category D retirement pension).

14

In section 88 of the Contributions and Benefits Act (increases to be in respect of only one adult dependant) for “under or by virtue of sections 83 to 86A” substitute “ by virtue of section 86A ”.

15

In section 89 of the Contributions and Benefits Act (meaning of earnings for purposes of provisions relating to increases in benefits) in each of subsections (1) and (1A) for “sections 82 to 86A” substitute “ sections 82 and 86A ”.

16

In section 114 of the Contributions and Benefits Act (persons maintaining dependants, etc.) in subsection (4) (amounts paid by way of maintenance etc. to be treated as contributions for the purposes of specified provisions) omit “to 84”.

17

In section 145 of the Contributions and Benefits Act (pensioners' entitlement to Christmas bonus: supplementary) in subsection (3) (circumstances in which persons to be treated as entitled to increase in payment of a qualifying benefit) in paragraph (b) omit “section 83(2) or (3) above or”.

18

In Part 4 of Schedule 4 to the Contributions and Benefits Act (rates of increases for dependants)—

PART 5 — UP-RATING OF BASIC PENSION ETC. AND STANDARD MINIMUM GUARANTEE BY REFERENCE TO EARNINGS

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

19

In Schedule 5 to the Contributions and Benefits Act (pension increase or lump sum where entitlement to retirement pension is deferred) in paragraph 2 (pension increase where entitlement deferred) in sub-paragraph (7) (increase to take account of up-rating of pensions) after “132” insert “ or 132A ”.

20

In each of paragraphs 5A(3)(a), 6(4)(b) and 6A(2)(b) of that Schedule (calculation of increase to survivor's pension where member's guaranteed minimum pension deferred) omit the words “after it has been reduced by the amount of any increases under section 105 of the Pensions Act”.

The Social Security Administration (Northern Ireland) Act 1992 (c. 8)

21

In section 135 of the Administration Act (effect of alteration of rates of benefit under Parts 2 to 5 of the Contributions and Benefits Act) in subsection (1) (when section has effect) in paragraph (b) after “132” insert “ , 132A ”.

22

In section 135A of that Act (power to anticipate pensions up-rating order) in subsection (1) (power arises where statement made to Commons of amounts of proposed increase in order under section 150 of the Great Britain Administration Act) in paragraph (a), for “150” substitute “ 150 or 150A (as the case may be) ”.

23

In section 139 of that Act (effect of alteration in the component rates of income support) in subsection (5)—

“applicable sums” means sums to which an order made under section 132 or 132A above corresponding to an order made under section 150 or 150A (as the case may be) of the Great Britain Administration Act may apply;

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24

In section 139A of that Act (effect of alteration of rates of a jobseeker's allowance) in subsection (5) in paragraph (b) of the definition of “alteration” after “132” insert “ or 132A ”.

25

In section 139B of that Act (effect of alterations affecting state pension credit)—

26

In section 139C of that Act as inserted by the Welfare Reform Act (Northern Ireland) 2007 (c. 2) (effect of alteration of rates of an employment and support allowance) in subsection (6) in paragraph (b) of the definition of “alteration” after “132” insert “ , 132A ”.

27

In section 166 of that Act (Assembly, etc. control of orders and regulations) in subsection (2)(b) (orders subject to the confirmatory procedure) after “132” insert “ , 132A ”.

28

In Schedule 5 to that Act (regulations not requiring prior submission to the Social Security Advisory Committee) in paragraph 3 (up-rating, etc.) for “or 132” substitute “ , 132 or 132A ”.

29

In Schedule 5A to that Act (regulations not requiring prior submission to the Industrial Injuries Advisory Council) in paragraph 2 for “or 132” substitute “ , 132 or 132A ”.

PART 6 — DEEMED EARNINGS FACTORS FOR PURPOSES OF ADDITIONAL PENSION

30

In section 22 of the Contributions and Benefits Act (earnings factors) at the end of subsection (2A) (derivation of earnings factors for purposes of calculating additional pension) insert— “ This subsection does not affect the operation of sections 44A and 44B below (deemed earnings factors). ”.

31

(A1) Subsections (1) to (4) below apply to the first appointed year or any subsequent tax year before 2010–11.

.

(4A) The following do not apply to a pensioner attaining pensionable age on or after 6th April 2010— (a) the requirement referred to in subsection (2)(d) above, and (b) subsections (3) and (4) above.

.

PART 7 — ADDITIONAL PENSION: SIMPLIFIED ACCRUAL RATES

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

32

In section 172 of the Contributions and Benefits Act (Assembly, etc. control of regulations and orders)—

The Pension Schemes (Northern Ireland) Act 1993 (c. 49)

33

In section 8B of the Pension Schemes Act (reference scheme)—

“the applicable limit” means— (a) in relation to a tax year before the flat rate introduction year, the upper earnings limit for the year multiplied by 53; (b) in relation to the flat rate introduction year or any subsequent tax year, the upper accrual point;

.

34

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35

In section 176(1) of that Act (general interpretation) insert in the appropriate places—

“the flat rate introduction year” has the meaning given by section 121 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

,

“the upper accrual point” has the meaning given by section 121 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

.

36

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 8 — INCREASE IN PENSIONABLE AGE FOR MEN AND WOMEN

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

37

In section 38 of the Contributions and Benefits Act (widow's pension) in subsection (2) (entitlement to continue until age of 65) for “the age of 65” substitute “ pensionable age ”.

38

In section 64 of the Contributions and Benefits Act (entitlement to attendance allowance) in subsection (1) (conditions to be satisfied for entitlement to the allowance) for “is aged 65 or over” substitute “ has attained pensionable age ”.

39
40

In section 145 of the Contributions and Benefits Act (supplementary provisions relating to Christmas bonus) in subsection (4) (for purposes of section 144 persons not to be taken to be entitled to payment of war disablement pension unless they have attained the age of 65) for “the age of 65” substitute “ pensionable age ”.

The State Pension Credit Act (Northern Ireland) 2002 (c. 14)

41

In section 3 of the State Pension Credit Act (Northern Ireland) 2002 (savings credit) in subsection (1) (first condition for savings credit) in paragraph (a) for “the age of 65” substitute “ pensionable age ”.

SCHEDULE 2

PART 1 — NEW SCHEDULE 4B TO THE CONTRIBUTIONS AND BENEFITS ACT

1

After Schedule 4A to the Contributions and Benefits Act (additional pension) insert the following Schedule—

SCHEDULE 4B (1) (1) The amount referred to in section 45(2)(d) above is to be calculated as follows— (a) calculate the appropriate amount for each of the relevant years within section 45(2)(d) above to which Part 2 of this Schedule applies; (b) calculate the appropriate amount for each of the relevant years within section 45(2)(d) above to which Part 3 of this Schedule applies; and (c) add those amounts together. (2) But if the resulting amount is a negative one, the amount referred to in section 45(2)(d) above is nil. (2) This Part applies to a relevant year if the contracted-out condition is not satisfied in respect of any tax week in the year. (3) The appropriate amount for the year for the purposes of paragraph 1 above is either— (a) the flat rate amount for the year (if there is a surplus in the pensioner's earnings factor for the year which does not exceed the LET), or (b) the sum of the flat rate amount and the earnings-related amount for the year (if there is such a surplus which exceeds the LET). (4) The flat rate amount for the year is calculated by multiplying the FRAA in accordance with the last order under section 130AA of the Administration Act to come into force before the end of the final relevant year. (5) The earnings-related amount for the year is calculated as follows— (a) take the part of the surplus for the year which exceeds the LET but which does not exceed the UAP; (b) multiply that amount in accordance with the last order under section 130 of the Administration Act to come into force before the end of the final relevant year; (c) multiply the amount found under sub-paragraph (b) above by 10 per cent.; (d) divide the amount found under sub-paragraph (c) above by 44. (6) This Part applies to a relevant year if the contracted-out condition is satisfied in respect of each tax week in the year. (7) The appropriate amount for the year for the purposes of paragraph 1 above is calculated as follows— (a) calculate amounts A and B in accordance with paragraphs 8 to 10 below; (b) subtract amount B from amount A. (8) (1) Amount A is calculated in accordance with this paragraph if there is an assumed surplus in the pensioner's earnings factor for the year which does not exceed the LET. (2) In such a case, amount A is the flat rate amount for the year. (3) The flat rate amount for the year is calculated by multiplying the FRAA in accordance with the last order under section 130AA of the Administration Act to come into force before the end of the final relevant year. (9) (1) Amount A is calculated in accordance with this paragraph if there is an assumed surplus in the pensioner's earnings factor for the year which exceeds the LET. (2) In such a case, amount A is calculated as follows— (a) take the part of the assumed surplus for the year which exceeds the LET but which does not exceed the UAP; (b) multiply that amount in accordance with the last order under section 130 of the Administration Act to come into force before the end of the final relevant year; (c) multiply the amount found under paragraph (b) above by 10 per cent.; (d) divide the amount found under paragraph (c) above by 44; (e) add the amount found under paragraph (d) above to the flat rate amount for the year. (3) The flat rate amount for the year is calculated by multiplying the FRAA in accordance with the last order under section 130AA of the Administration Act to come into force before the end of the final relevant year. (10) (1) Amount B is calculated as follows— (a) take the part of the assumed surplus for the year which exceeds the QEF but which does not exceed the UAP; (b) multiply that amount in accordance with the last order under section 130 of the Administration Act to come into force before the end of the final relevant year; (c) multiply the amount found under paragraph (b) above by 20 per cent.; (d) divide the amount found under paragraph (c) above by the number of relevant years in the pensioner's working life. (2) Section 44B above is to be ignored in applying section 44(6) above for the purposes of this paragraph. (11) The Department may make regulations containing provision for finding for a tax year the amount referred to in section 45(2)(d) above— (a) in cases where the circumstances relating to the pensioner change in the course of the year, and (b) in such other cases as the Department thinks fit. (12) In this Schedule— - “assumed surplus”, in relation to a pensioner's earnings factor for a year, means the surplus there would be in that factor for the year if section 44A(1) of the Pensions Act (no primary Class 1 contributions deemed to be paid) did not apply in relation to any tax week falling in the year; - “the contracted-out condition”, in relation to a tax week, means the condition that any earnings paid to or for the benefit of the pensioner in that week in respect of employment were in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme (within the meaning of the Pensions Act); - “the FRAA” has the meaning given by paragraph 13 below; - “the LET”, in relation to a tax year, means the low earnings threshold for the year as specified in section 44A above; - “the QEF”, in relation to a tax year, means the qualifying earnings factor for the year; - “relevant year” and “final relevant year” have the same meanings as in section 44 above; - “the UAP” means the upper accrual point. (13) (1) “The FRAA” means the flat rate accrual amount. (2) That amount is £72.80 for the flat rate introduction year and subsequent tax years (but subject to section 130AA of the Administration Act).

.

PART 2 — REVALUATION OF FLAT RATE ACCRUAL AMOUNT

2

After section 130A of the Administration Act insert—

(130AA) Whenever the Secretary of State makes an order under section 148AA of the Great Britain Administration Act (revaluation of flat rate accrual amount), the Department may make a corresponding order for Northern Ireland.

.

PART 3 — CONSEQUENTIAL AND RELATED AMENDMENTS

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

3

In section 39 of the Contributions and Benefits Act (rate of widowed mother's allowance and widow's pension) omit—

4
5
6

In section 46 of the Contributions and Benefits Act (modification of section 45 for calculating the additional pension in certain benefits) after subsection (3) add—

(4) For the purpose of determining the additional pension falling to be calculated under section 45 above by virtue of section 39C(1) above in a case where the deceased spouse or civil partner died under pensionable age, section 45 above has effect subject to the following additional modifications— (a) the omission of subsection (2)(d), and (b) the omission in subsection (3A)(b) of the words “before the flat rate introduction year”.

.

7

In section 48A of the Contributions and Benefits Act (rate of Category B retirement pension for married person or civil partner) in subsection (4) for “Schedule 4A” substitute “ Schedules 4A and 4B ”.

8

In section 48B of the Contributions and Benefits Act (Category B retirement pension for surviving spouse or civil partner) in subsection (2) for “Schedule 4A” substitute “ Schedules 4A and 4B ”.

9

In section 48BB of the Contributions and Benefits Act (Category B retirement pension: entitlement by reference to benefits under section 39A or 39B) in subsection (5)—

10

In section 48C of the Contributions and Benefits Act (Category B retirement pension: general) in subsection (4) for “Schedule 4A” substitute “ Schedules 4A and 4B ”.

11

In Schedule 4A to the Contributions and Benefits Act (additional pension) in paragraph 1(2) omit “39(1),”.

SCHEDULE 3

1

In the heading to Article 123 of the Pensions Order, at the end add “ and increase in pensionable age ”.

2

In Article 123 of that Order (equalisation of pensionable age) in paragraph (a), at the end add “ and to increase the pensionable age for men and women progressively over a period of 22 years beginning with (and including) 6th April 2024 ”.

3

For the heading for Schedule 2 to that Order substitute “ EQUALISATION OF AND INCREASE IN PENSIONABLE AGE FOR MEN AND WOMEN ”.

4

(4) A woman born after 5th April 1955 but before 6th April 1959 attains pensionable age when she attains the age of 65.

.

(5) In tables 1 to 4, any reference to a period in column 1 of that table includes a reference to the first day of that period.

.

(6) A person born on any day in a period mentioned in column 1 of table 2 attains pensionable age at the commencement of the day shown against that period in column 2.

(1) (2)
Period within which birthday falls Day pensionable age attained
6th April 1959 to 5th May 1959 6th May 2024
6th May 1959 to 5th June 1959 6th July 2024
6th June 1959 to 5th July 1959 6th September 2024
6th July 1959 to 5th August 1959 6th November 2024
6th August 1959 to 5th September 1959 6th January 2025
6th September 1959 to 5th October 1959 6th March 2025
6th October 1959 to 5th November 1959 6th May 2025
6th November 1959 to 5th December 1959 6th July 2025
6th December 1959 to 5th January 1960 6th September 2025
6th January 1960 to 5th February 1960 6th November 2025
6th February 1960 to 5th March 1960 6th January 2026
6th March 1960 to 5th April 1960 6th March 2026

(7) A person born after 5th April 1960 but before 6th April 1968 attains pensionable age when the person attains the age of 66. (8) A person born on any day in a period mentioned in column 1 of table 3 attains pensionable age at the commencement of the day shown against that period in column 2.

(1) (2)
Period within which birthday falls Day pensionable age attained
6th April 1968 to 5th May 1968 6th May 2034
6th May 1968 to 5th June 1968 6th July 2034
6th June 1968 to 5th July 1968 6th September 2034
6th July 1968 to 5th August 1968 6th November 2034
6th August 1968 to 5th September 1968 6th January 2035
6th September 1968 to 5th October 1968 6th March 2035
6th October 1968 to 5th November 1968 6th May 2035
6th November 1968 to 5th December 1968 6th July 2035
6th December 1968 to 5th January 1969 6th September 2035
6th January 1969 to 5th February 1969 6th November 2035
6th February 1969 to 5th March 1969 6th January 2036
6th March 1969 to 5th April 1969 6th March 2036

(9) A person born after 5th April 1969 but before 6th April 1977 attains pensionable age when the person attains the age of 67. (10) A person born on any day in a period mentioned in column 1 of table 4 attains pensionable age at the commencement of the day shown against that period in column 2.

(1) (2)
Period within which birthday falls Day pensionable age attained
6th April 1977 to 5th May 1977 6th May 2044
6th May 1977 to 5th June 1977 6th July 2044
6th June 1977 to 5th July 1977 6th September 2044
6th July 1977 to 5th August 1977 6th November 2044
6th August 1977 to 5th September 1977 6th January 2045
6th September 1977 to 5th October 1977 6th March 2045
6th October 1977 to 5th November 1977 6th May 2045
6th November 1977 to 5th December 1977 6th July 2045
6th December 1977 to 5th January 1978 6th September 2045
6th January 1978 to 5th February 1978 6th November 2045
6th February 1978 to 5th March 1978 6th January 2046
6th March 1978 to 5th April 1978 6th March 2046

(11) A person born after 5th April 1978 attains pensionable age when the person attains the age of 68.

.

SCHEDULE 4

PART 1 — AMENDMENTS HAVING EFFECT AS FROM ABOLITION DATE

The Pension Schemes (Northern Ireland) Act 1993 (c. 49)

1

The Pension Schemes Act has effect subject to the following amendments.

2

(1) Regulations shall provide for HMRC to issue certificates stating that the employment of an earner in employed earner's employment is contracted-out employment by reference to an occupational pension scheme. (1A) In this Act such a certificate is referred to as “a contracting-out certificate”.

.

(8) References in this Act to a contracting-out certificate, a contracted-out scheme and to contracting-out in a context relating to a money purchase contracted-out scheme are to be construed in accordance with section 176A.

.

3

— (a) he is under pensionable age; (aa) his service in the employment is for the time being service which qualifies him for a pension provided by an occupational pension scheme contracted out by virtue of satisfying section 5(2) (in this Act referred to as “a salary related contracted-out scheme”);

.

(1A) In addition, in relation to any period before the abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to him during that period if— (a) he was under pensionable age; (b) his employer made minimum payments in respect of his employment to a money purchase contracted-out scheme, and (c) there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.

.

4
5

In section 6 (protected rights and money purchase benefits) in subsection (3) (protected rights under rules of personal pension schemes) in paragraph (a), for “of minimum contributions” substitute “ under section 41(1) ”.

6

Omit section 8 (determination of basis on which scheme is contracted-out).

7

In section 16 (transfer of accrued rights) in subsection (3) (regulations may provide for certain provisions to have effect subject to modifications) for “sections 22 to 29” substitute “ sections 21A to 29 ”.

8

For the italic cross-heading before section 22 substitute “ Requirements for schemes with members with protected rights ”.

9

Before section 22 (persons who may establish scheme) insert—

(21A) (1) This section applies to— (a) an occupational pension scheme which ceased to be a money purchase contracted-out scheme by virtue of section 13(1) of the Pensions Act (Northern Ireland) 2008, (b) a personal pension scheme which ceased to be an appropriate scheme by virtue of section 13(1) of that Act, or (c) a registered pension scheme under section 153 of the Finance Act 2004— (i) which is not a scheme falling within paragraph (a) or (b), and (ii) to which the rights of a person who was at any time a member of a scheme mentioned in either of those paragraphs have been transferred. (2) For so long as there are persons who have protected rights under a scheme to which this section applies, or who are entitled to any benefit giving effect to such rights under it, the scheme must satisfy the requirements mentioned in subsection (3). (3) Those requirements are— (a) the requirements imposed by or by virtue of sections 22 to 28, and (b) such other requirements as may be prescribed. (4) Regulations made under subsection (3)(b) may contain provision framed by reference to whether or not a scheme is a registered pension scheme under section 153 of the Finance Act 2004.

.

10

After section 23 insert—

(23A) (1) The rules of the scheme must provide that if, in the case of a member who is married or who has a civil partner, effect is to be given to the protected rights of the member by— (a) the provision by the scheme of a pension, or (b) the purchase by the scheme of an annuity, the requirement set out in subsection (2) must be satisfied in relation to the pension or annuity. (2) The requirement is that, in a case where— (a) the member dies while the pension or annuity is payable to him or her, and (b) the member is survived by a widow, widower or surviving civil partner (“the survivor”), the pension or annuity is payable to the survivor in prescribed circumstances and for the prescribed period at an annual rate which at any given time is one-half of the rate at which it would have been payable to the member if the member had been living at that time. (3) The rules of the scheme must provide that, if effect is to be given to a member's protected rights by the provision of a lump sum, the prescribed conditions must be satisfied. (4) The rules of the scheme must provide that, if— (a) a member has died without effect being given to his or her protected rights, and (b) the member is survived by a widow, widower or surviving civil partner, effect is to be given to the protected rights in such manner as may be prescribed.

.

11

Omit sections 24 to 25 (ways of giving effect to protected rights etc.).

12

For section 28A substitute—

(28A) (1) Where an occupational pension scheme is being wound up, effect may not be given to the protected rights of a member of the scheme by taking out a policy of insurance (or a number of such policies) under which the member is the beneficiary unless the policy (or each such policy) satisfies the requirement in subsection (2). (2) The requirement is that the policy of insurance makes such provision in relation to giving effect to the protected rights of the beneficiary as a scheme to which section 21A applies is required to make under or by virtue of section 23A in relation to giving effect to the protected rights of a member of the scheme.

.

13
14

(a) any requirement which, in the case of the scheme, is required by section 21A to be satisfied is not satisfied,

;

15

(1) Regulations shall provide for the cancellation, variation or surrender of a contracting-out certificate, or the issue of a new certificate— (a) on any change of circumstances affecting the treatment of an employment as contracted-out employment; or (b) where the certificate was issued on or after the principal appointed day, if any employer of persons in the description of employment to which the scheme in question relates, or the actuary of the scheme, fails to provide HMRC, at prescribed intervals, with such documents as may be prescribed for the purpose of verifying that the conditions of section 5(2B) are satisfied.

.

(9) A reference in this section to a contracting-out certificate does not include a reference to a contracting-out certificate issued in respect of a money purchase contracted-out scheme.

.

16

(1) No alteration of the rules of a personal pension scheme which was an appropriate scheme shall be made so as— (a) to affect any of the matters dealt with in sections 22 to 29; or (b) to cause the scheme to take a different permitted form from that previously taken.

.

(5) This section has effect in relation to a personal pension scheme for so long as there are persons who have protected rights under the scheme or who are entitled to any benefit giving effect to such rights under it.

.

17

In section 38A (reduced rates of Class 1 contributions, and rebates) at the end add—

(9) For the purposes of this section “the appropriate age-related percentage” and “the appropriate flat-rate percentage”, in relation to a tax year beginning before the abolition date, are the percentages specified as such for that tax year in an order made under section 38B (as it had effect prior to that date).

.

18

Omit section 38B (determination and alteration of rates of contributions, and rebates, applicable under section 38A).

19

In section 39 (payment of minimum contributions to personal pension schemes) at the end add—

(8) In this section “the earner's chosen scheme” means the scheme which was immediately before the abolition date the earner's chosen scheme in accordance with section 40 (as it had effect prior to that date).

.

20

Omit section 40 (earner's chosen scheme).

21

In section 41 (amount of minimum contributions) at the end add—

(5) For the purposes of this section “the appropriate age-related percentage”, in relation to a tax year beginning before the abolition date, is the percentage (or percentages) specified as such for that tax year in an order made under section 41A (as it had effect prior to that date).

.

22

Omit section 41A (alteration of rates of minimum contributions under section 41).

23
24
25
26

In section 51 (payment of state scheme premiums on termination of certified status) in subsection (2) (prescribed person to pay contributions equivalent premium) in paragraph (a) omit “(other than a money purchase contracted-out scheme)”.

27

In section 64A (safeguarded rights) in subsection (5) in paragraph (a) of the definition of “contracted-out rights” for “or (3)” substitute “ or a money purchase contracted-out scheme ”.

28

In section 83 (general protection principle) in subsection (1) (when subsection applies) in paragraph (a)(i), for “which is not a money purchase contracted-out scheme” substitute “ that satisfies the requirements of section 5(2) ”.

29

In section 92 (further provisions concerning exercise of option to take cash equivalent under section 91) in subsection (2) (circumstances in which option must be exercised in relation to balance of cash equivalent after deducting amount sufficient to meet certain liabilities of trustees etc.) in paragraph (a)(ii) omit “which is not an appropriate scheme”.

30
31

In section 159 (exemption of certain schemes from rule against perpetuities) in subsection (2) (schemes to which the exemption applies) omit paragraph (c) (appropriate schemes).

32

In section 160 (Crown employment) for subsection (2) substitute—

(2) A person who is employed by or under the Crown shall be treated as an employed earner for the purposes of— (a) sections 21A to 29A, so far as they relate to personal pension schemes; (b) sections 34, 39 and 41; (c) section 44, so far as it relates to minimum contributions; (d) section 46, so far as it relates to personal pension schemes; (e) section 50; (f) section 107 (and Part 8 and section 149 so far as they have effect for the purposes of section 107); (g) sections 113, 150 and 151; (h) section 155, so far as it relates to protected rights payments; and (i) sections 156 and 162.

.

33

In section 172 (general financial arrangements) in subsection (2) (amounts to be paid out of National Insurance Fund into Consolidated Fund) in paragraph (b) (administrative expenses incurred in carrying into effect remaining provisions of the Act) for sub-paragraph (ii) substitute—

(ii) sections 21A to 29A, so far as they relate to personal pension schemes; (iii) section 34; (iv) section 46, so far as it relates to personal pension schemes; (v) section 50; (vi) section 107 (and Part 8 and section 149 so far as they have effect for the purposes of section 107); (vii) sections 113, 150 and 151; (viii) section 155, so far as it relates to protected rights payments; and (ix) sections 156 and 162.

.

34

“abolition date” means the day appointed for the commencement of section 13(1) of the Pensions Act (Northern Ireland) 2008;

;

“HMRC” means the Commissioners for Her Majesty's Revenue and Customs;

;

“appropriate scheme” and “appropriate scheme certificate” are to be construed in accordance with section 176A;

;

“money purchase contracted-out scheme” is to be construed in accordance with section 176A;

.

35

After section 176 insert—

(176A) (1) This section applies for the interpretation of this Act on and after the abolition date. (2) An occupational pension scheme was a money purchase contracted-out scheme at a time before the abolition date if, at that time, the scheme was contracted-out by virtue of satisfying section 5(3) (as it then had effect). (3) A money purchase contracted-out scheme was, at a time before the abolition date, a contracted-out scheme in relation to an earner's employment if it was, at that time, specified in a contracting-out certificate in relation to that employment; and references to the contracting-out of a scheme are, in relation to a money purchase contracted-out scheme, references to its inclusion in such a certificate. (4) Any reference to a contracting-out certificate is, in relation to a money purchase contracted-out scheme, a reference to a certificate issued by virtue of section 3, as it had effect before the abolition date, in relation to the employment of an earner in employed earner's employment which was contracted-out by reference to that scheme. (5) Any certificate so issued that was, at a time before the abolition date, in force in respect of an employed earner's employment is to be taken as conclusive that the employment was, at that time, contracted-out employment. (6) A personal pension scheme was an appropriate scheme at a time before the abolition date if, at that time, there was in force a certificate issued under section 3(1)(b) (as it then had effect) stating that the scheme was an appropriate scheme; and “appropriate scheme certificate” means such a certificate. (7) Any appropriate scheme certificate in force in relation to a scheme at any time before the abolition date is to be taken as conclusive that the scheme was, at that time, an appropriate scheme.

.

The Pensions (Northern Ireland) Order 1995 (NI 22)

36

The Welfare Reform and Pensions (Northern Ireland) Order 1999 (NI 11)

37

In Article 3 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (meaning of “stakeholder pension scheme”)—

38

In Article 4 of that Order (registration of stakeholder pension schemes) in paragraph (2) (when Authority to register schemes) in sub-paragraph (b)(i), for “to (10)” substitute “ to (9) ”.

39

In Schedule 5 to that Order (pension credits: mode of discharge) in paragraph 7(6) (disqualification as destination for pension credit) in the definition of “contracted-out rights”—

(ab) an occupational pension scheme constituting a money purchase contracted-out scheme for the purposes of that Act, or

;

The Pensions (Northern Ireland) Order 2005 (NI 1)

40

In Article 234 of the Pensions (Northern Ireland) Order 2005 (conditions for pension protection on transfer of employment) omit paragraph (7) (minimum payments made under contracted-out money purchase scheme to be disregarded).

PART 2 — FURTHER AMENDMENTS

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

41
42

In section 8 of the Contributions and Benefits Act (calculation of primary Class 1 contributions) in subsection (3) (provisions to which calculation is subject) in paragraph (c) for “sections 37 and 38A” substitute “ section 37 ”.

43

In section 9 of the Contributions and Benefits Act (calculation of secondary Class 1 contributions) in subsection (3) (provisions to which calculation is subject) in paragraph (c) for “sections 37 and 38A” substitute “ section 37 ”.

44

The Pension Schemes (Northern Ireland) Act 1993 (c. 49)

45

The Pension Schemes Act has effect subject to the following amendments.

46

In section 4 (meaning of, among other things, “minimum payment”) omit subsection (3) (regulations may make provision about manner in which minimum payments to be made etc.).

47

In section 16 (transfer of accrued rights) in subsection (3) (regulations may provide for certain provisions to have effect subject to modifications) omit “and 39 to 41,”.

48

Omit section 27 (investment and resources of schemes).

49

In section 36 (scope of Chapter 2 of Part 3) omit paragraph (b) (which relates to contributions to be paid by HMRC in respect of members of money purchase contracted-out schemes or of appropriate personal pension schemes).

50

Omit section 38A (reduced rates of contributions, and rebates, for members of money purchase contracted-out schemes etc.).

51

Omit section 39 (payment of minimum contributions to personal pension schemes).

52

Omit section 41 (amount of minimum contributions).

53

Omit section 41B (money purchase and personal pension schemes: verification of ages).

54

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55

In section 160 (Crown employment) in subsection (2) (employees of Crown to be treated as employed earners for certain purposes) omit paragraph (b).

56
57
58
59

“the percentage for contributing earners” means 3 per cent.;

;

“the percentage for non-contributing earners” means 4.8 per cent.;

.

PART 3 — SAVINGS

Issue and cancellation etc. of certificates for periods before the abolition date

60

Nothing in the relevant amendments and repeals affects the continued operation of any regulations in force under section 3(1) and (7) of the Pension Schemes Act (issue of certificates) immediately before the abolition date in relation to the issue of a certificate having effect for a period before the abolition date.

61
62

Nothing in the relevant amendments and repeals affects the continued operation of section 160(2) of the Pension Schemes Act (persons employed by or under the Crown to be treated as employed earners for the purposes of certain provisions) in relation to the provisions of that Act saved by paragraphs 60 and 61.

63

Nothing in the relevant amendments and repeals affects the continued operation of section 172(2)(b)(ii) of the Pension Schemes Act (administrative expenses of the Department, other than those arising out of certain provisions, to be paid out of the National Insurance Fund into the Consolidated Fund) in relation to the estimated administrative expenses of the Department in carrying into effect the provisions of that Act saved by paragraphs 60 and 61.

Determination of question whether scheme was appropriate scheme

64

Nothing in the relevant amendments and repeals affects the continued operation of any regulations in force under section 3(6) of the Pension Schemes Act (issue of certificates) immediately before the abolition date.

Preservation of earner's chosen scheme

65

Interpretation etc.

66

In this Part—

SCHEDULE 5

The Insolvency (Northern Ireland) Order 1989 (NI 19)

1

In Article 315C of the Insolvency (Northern Ireland) Order 1989 (recovery of excessive pension contributions: supplementary) in paragraph (5) (under which calculation and verification of certain values and amounts may be required to be in accordance with guidance approved by Department) for sub-paragraph (b) substitute—

(b) in accordance with guidance from time to time prepared by a prescribed person.

.

2

In Article 315F of that Order (orders in relation to transactions at an undervalue and preferences: supplementary) in paragraph (7) (under which calculation and verification of certain values and amounts may be required to be in accordance with guidance approved by Department) for sub-paragraph (b) substitute—

(b) in accordance with guidance from time to time prepared by a prescribed person.

.

The Pension Schemes (Northern Ireland) Act 1993 (c. 49)

3

In section 8A of the Pension Schemes Act (statutory standard for certification of occupational pension schemes) in subsection (5) (regulations may provide for determination to be made in accordance with guidance approved by Department) omit “and approved by the Department”.

4

In section 109 of that Act (disclosure of information about schemes to members, etc.) in subsection (3A) (regulations may provide for information that must be given to be determined by reference to guidance approved by Department) for paragraphs (a) and (b) substitute “ is prepared and from time to time revised by a prescribed body. ”.

The Pensions (Northern Ireland) Order 1995 (NI 22)

5

In Article 67D of the Pensions Order (actuarial equivalence requirements: further provisions) in paragraph (5) (requirements prescribed for calculation of actuarial values may include that the calculation is to be made in accordance with guidance approved by Department) for sub-paragraphs (a) and (b) substitute “ is prepared and from time to time revised by a prescribed body. ”.

6

In Article 116 of that Order (regulations may provide for values to be calculated in accordance with guidance approved by the Department) for paragraphs (a) and (b) substitute “ prepared and from time to time revised by a prescribed body. ”.

The Pensions (Northern Ireland) Order 2005 (NI 1)

7

In Article 209 of the Pensions (Northern Ireland) Order 2005 (matters on which advice of actuary must be obtained) in paragraph (3) (regulations may require actuary to have regard to guidance) in the definition of “Prescribed guidance” omit “and, if the regulations so provide, is approved by the Department”.

SCHEDULE 6

PART 1 — CATEGORY B RETIREMENT PENSION: REMOVAL OF RESTRICTION ON ENTITLEMENT

PART 2 — CATEGORY A AND C RETIREMENT PENSIONS: ABOLITION OF ADULT DEPENDENCY INCREASES

PART 3 — UP-RATING

PART 4 — ADDITIONAL PENSION: SIMPLIFIED ACCRUAL RATES

PART 5 — INCREASE IN PENSIONABLE AGE

PART 6 — ABOLITION OF CONTRACTING-OUT FOR DEFINED CONTRIBUTION PENSION SCHEMES: REPEALS AND REVOCATIONS HAVING EFFECT ON ABOLITION DATE

PART 7 — ABOLITION OF CONTRACTING-OUT FOR DEFINED CONTRIBUTION PENSION SCHEMES: FURTHER REPEALS

PART 8 — REMOVAL OF DEPARTMENT'S ROLE IN APPROVING ACTUARIAL GUIDANCE

Category A and B retirement pensions: single contribution condition

Category B retirement pension: removal of restriction on entitlement

Category A and C retirement pensions: abolition of adult dependency increases

Deemed earnings factors for purposes of additional pension

Additional pension: simplified accrual rates as from flat rate introduction year

Additional pension: upper accrual point

Conversion of guaranteed minimum pensions

Conversion of guaranteed minimum pensions

Abolition of contracting-out for defined contribution pension schemes

Management of the Authority

Consequential etc. provision, repeals and revocations

Review of operation of Act

Interpretation

Editorial notes

[^c21200091]: Act: power to modify conferred (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 115(2)(f), 118(2)(g)

[^c21200031]: S. 8(2)(c) repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(2)(c), Sch. 10 Pt. 6

[^c21200041]: S. 8(5) repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(2)(c), Sch. 10 Pt. 6

[^c21200021]: S. 10(3) repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(2)(c), Sch. 10 Pt. 6

[^c21470371]: S. 12 wholly in operation at 6.4.2009; s. 12 not in operation at Royal Assent see s. 21(1)(a); s. 12 in operation for certain purposes at 3.3.2009 and in operation at 6.4.2009 for all other purposes by S.R. 2009/75, art. 2

[^c19203381]: S. 13 partly in force; s. 13 except (1) in force at Royal Assent, 11.2.2008, see s. 21(1)(b)

[^c21200061]: S. 13(4) excluded (prosp.) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 85(2)(b), 118(1)

[^c21200051]: S. 16 repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 65(1), 116, 118(1)(2)(a)(g), Sch. 10 Pt. 1 (with s. 73)

[^c21199881]: S. 21(1) power partly exercised: 29.2.2008 appointed for specified provisions by S.R. 2008/65, art. 2; 3.3.2009 and 6.4.2009 appointed for specified provision by S.R. 2009/75, art. 2

[^c21200011]: Sch. 1 para. 32(a) repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(2)(c), Sch. 10 Pt. 6

[^c21200001]: Sch. 1 para. 34 repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(2)(c), Sch. 10 Pt. 6 (with Sch. 10 Pt. 6 note 1(c))

[^c21199991]: Sch. 1 para. 36 repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(2)(c), Sch. 10 Pt. 6 (with Sch. 10 Pt. 6 note 2(b))

[^c21199981]: Sch. 2 para. 4(2) repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 116, 118(2)(c), Sch. 10 Pt. 6

[^key-a7028144adb44e76114deb310aa9a05a]: Words in Sch. 4 para. 55 substituted (6.4.2012 coming into operation in accordance with art. 1(a)) by The Pensions (2008 No. 2 Act) (Abolition of Protected Rights) (Consequential Provisions) Order (Northern Ireland) 2012 (S.R. 2012/124), arts. 1(b), 7(3)(b) (This amendment cannot take effect until Sch.4 para. 55 comes into operation)

[^key-e4ed50c14b7c0d4fc91cb4e4c04776ce]: Sch. 4 para. 54 omitted (6.4.2012 coming into operation in accordance with art. 1(a)) by virtue of The Pensions (2008 No. 2 Act) (Abolition of Protected Rights) (Consequential Provisions) Order (Northern Ireland) 2012 (S.R. 2012/124), arts. 1(b), 7(3)(a) (This paragraph never comes into operation)

Additional pension: simplified accrual rates as from flat rate introduction year

Increase in pensionable age for men and women

Dispute resolution arrangements

Removal of Department's role in approving actuarial guidance

Commencement