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Pensions (No. 2) Act (Northern Ireland) 2008

Type Act of the Northern Ireland Assembly

Publication 2008-12-15

Last updated 2024-11-18

State In force

Jurisdiction Northern Ireland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) Regulations under subsection (1) may provide that Article 10 of the 1995 Order (civil penalties) applies to a person who fails to comply with those requirements.

Powers to require information and to enter premises

60

(1) The 2005 Order is amended as follows.

(2) In Article 67 (provision of information), after paragraph (1) insert—

(1A) If the Regulator requires information which is relevant to the exercise of its functions under Chapter 2 of Part 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 or section 51 of that Act, the Regulator may, by notice in writing, require a person to whom paragraph (2) applies— (a) to furnish the Regulator with an explanation of any document or information required under paragraph (1); (b) to attend before the Regulator at such time and place as may be specified in the notice under that paragraph to furnish any such explanation. (1B) The Regulator may not require a person to answer any question or furnish any information which might incriminate the person or, if that person is married or a civil partner, the person's spouse or civil partner.

(3) In Article 69 (inspection of premises in respect of employers' obligations), before paragraph (1) insert—

(A1) An inspector may, for the purposes of investigating whether an employer is contravening, or has contravened— (a) any provision of, or of regulations under, Chapter 1 of Part 1, or section 50 or 54, of the Pensions (No. 2) Act (Northern Ireland) 2008, or (b) any corresponding provision in force in Great Britain, at any reasonable time enter premises liable to inspection. (B1) Premises are liable to inspection for the purposes of paragraph (A1) if the inspector has reasonable grounds to believe that— (a) the employer employs workers there, (b) documents relevant to any of the following are being kept there— (i) the administration of the employer's business, (ii) the duties of the employer under Chapter 1 of Part 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 or any corresponding provision in force in Great Britain, (iii) the administration of a pension scheme that is relevant to the discharge of those duties, or (c) the administration of the employer's business, or work connected with that administration, is being carried out there. (C1) In paragraphs (A1) and (B1) “employer” and “worker” have the meaning given by section 70 of the Pensions (No. 2) Act (Northern Ireland) 2008. (D1) In the application of paragraphs (A1) and (B1) in relation to any provision mentioned in paragraph (A1)(b) (a “corresponding GB provision”), references in those paragraphs to “employer” or “worker” are to be read as having the meaning that they have for the purposes of the corresponding GB provision.

(4) In Article 70(1) (inspection of premises: powers of inspectors), after “paragraph” (in the third place where it occurs) insert “ (A1), ”.

(5) In Article 71(9) (inspection of premises: supplementary), after “paragraph” (in the second place where it occurs) insert “ (A1), ”.

Disclosure of tax information etc.

61

(1) In the 2005 Order, for Article 83 (tax information) substitute—

(83) (1) This Article applies to information held by the Revenue and Customs if it is held by them in connection with a function of the Revenue and Customs that relates to any of these matters— (a) tax or duty; (b) national insurance contributions; (c) the national minimum wage. (2) An officer of Revenue and Customs may disclose to the Regulator information to which this Article applies, if the disclosure is made for the purpose of enabling or assisting the Regulator to discharge its functions. (3) Where information to which this Article applies is disclosed to the Regulator by virtue of paragraph (2) or section 19 of the Anti-terrorism, Crime and Security Act 2001 (disclosure of information held by revenue departments), it must, subject to paragraphs (4) and (5), be treated for the purposes of Article 77 as restricted information. (4) Information to which this Article applies which is disclosed to the Regulator as mentioned in paragraph (3) may not be disclosed by the Regulator or any person who receives the information directly or indirectly from the Regulator except— (a) to, or in accordance with authority given by, the Commissioners for Her Majesty's Revenue and Customs, (b) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings, (c) with a view to the institution of any other proceedings by the Regulator, or for the purposes of any such proceedings instituted by the Regulator, (d) in accordance with Article 79, otherwise than for the purposes of any proceedings, or (e) in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it. (5) Accordingly Articles 77(3), 78 and 80 to 82, and section 235 of and paragraph 4 of Schedule 10 to, the Pensions Act 2004, do not apply to such information, and Article 79 applies subject to paragraph (4)(d). (6) In paragraph (4)(c) and (d), “proceedings” includes the issue of notices or any other enforcement action taken by the Regulator under Chapter 2 of Part 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 or any other provision. (7) In this Article “the Revenue and Customs” and a “function of the Revenue and Customs” have the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005 (confidentiality).

(2) In Article 77 of that Order (restricted information) in paragraph (3) for “83(4)” substitute “ 83(4)(d) ”.

Penalty for disclosure

62

In Article 77(5)(a) of the 2005 Order (penalty for disclosure of restricted information, on summary conviction) at the end add “ , or imprisonment for a term not exceeding six months, or both ”.

Objectives of the Regulator

63

In Article 4(1) of the 2005 Order (Regulator's objectives), before “and” at the end of sub-paragraph (c) insert—

(ca) to maximise compliance with the duties under Chapter 1 of Part 1 (and the safeguards in sections 50 and 54) of the Pensions (No. 2) Act (Northern Ireland) 2008,

Functions of the Pensions Ombudsman

64

(1) Section 142 of the Pension Schemes Act (functions of the Pensions Ombudsman) is amended as follows.

(2) In subsection (7), after paragraph (ba) insert—

(bb) a person who has given notice in accordance with section 8 of the Pensions (No. 2) Act (Northern Ireland) 2008 (right to opt out of membership of an automatic enrolment scheme);

(3) In paragraph (c)(i) of that subsection, for “or (ba)” substitute “ , (ba) or (bb) ”.

CHAPTER 5 — PERSONAL ACCOUNTS DELIVERY AUTHORITY

Functions

Functions and winding up

65

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) If the Secretary of State makes an order containing provision under section 23(7) of the Pensions Act 2007 (c. 22), the Department may by order make corresponding provision in relation to Northern Ireland.

Principles

66

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

Directions and guidance

67

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Disclosure of information by the Regulator

68

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CHAPTER 6 — STAKEHOLDER PENSION SCHEMES

Stakeholder pension schemes

69

(1) The Welfare Reform and Pensions (Northern Ireland) Order 1999 (NI 11) is amended as follows.

(2) Article 5 (duty of employers to facilitate access to stakeholder pension schemes) is amended as follows.

(3) In paragraph (1), for “the requirements set out below” substitute “ the requirement in paragraph (5) ”.

(4) After paragraph (1) insert—

(1A) A relevant employee, in relation to an employer, is an employee of the employer who, on the relevant date, satisfies the conditions in paragraph (1B). (1B) The conditions are that— (a) the employee is a member of a stakeholder pension scheme; (b) the employee made a request under paragraph (5) before the relevant date and that request has not been withdrawn; (c) the employee pays contributions (which are deducted in accordance with that request) to the scheme at regular intervals; (d) at least one deduction has been made before the relevant date in accordance with that request. (1C) A person ceases to be a relevant employee— (a) on ceasing to be employed by the employer; (b) on withdrawing a request under paragraph (5); (c) on ceasing to pay contributions at regular intervals.

(5) Omit paragraphs (2) to (4).

(6) In paragraph (5)—

(a) omit the word “fourth”;

(b) omit the words from “of his” to “qualifying scheme”;

(7) After paragraph (5) insert—

(5A) That requirement only applies in relation to a request to make deductions made before the relevant date (whether or not that request is varied after that date).

(8) Omit paragraph (6).

(9) In paragraph (7), for “any of the requirements” substitute “ the requirement ”.

(10) In paragraph (8)—

(a) for the words from “whether before” to “those purposes” substitute “ while subject to the requirement in paragraph (5) ”;

(b) omit sub-paragraph (a)(ii) and (iii).

(11) In paragraph (9), after the definition of “regulations” insert—

“relevant date” means the date on which section 69 of the Pensions (No. 2) Act (Northern Ireland) 2008 comes into operation.

(12) In that paragraph—

(a) omit the definition of “qualifying scheme”;

(b) omit the definition of “relevant employees”.

(13) In Article 8 (application of certain statutory provisions) omit paragraphs (1), (2) and (4).

(14) In Article 9 (interpretation), in paragraph (1), omit the definition of “designated scheme”.

CHAPTER 7 — APPLICATION AND INTERPRETATION

Workers

70

(1) This section applies for the purposes of this Part.

(2) “Contract of employment” means a contract of service or apprenticeship whether express or implied, and (if it is express) whether oral or in writing.

(3) “Worker” means an individual who has entered into or works under—

(a) a contract of employment, or

(b) any other contract by which the individual undertakes to do work or perform services personally for another party to the contract.

(4) But a contract is not within subsection (3)(b) if the status of the other party is by virtue of the contract that of a client or customer of a profession or business undertaking carried on by the individual concerned.

(5) For the purposes of subsection (3)(b), it does not matter whether the contract is express or implied or (if it is express) whether it is oral or in writing.

(6) Any reference to a worker's contract is to be read in accordance with subsections (3) to (5).

(7) “Employer”, in relation to a worker, means the person by whom the worker is employed (subject to sections 37(5) and 38(6)).

(8) “Employment” in relation to a worker, means employment under the worker's contract.

Agency workers

71

(1) This section applies to an individual (“the agency worker”)—

(a) who is supplied by a person (“the agent”) to do work for another person (“the principal”) under a contract or other arrangements made between the agent and the principal,

(b) who is not, as respects that work, a worker, because of the absence of a worker's contract between the individual and the agent or the principal, and

(c) who is not a party to a contract under which the agency worker undertakes to do the work for another party to the contract whose status is, by virtue of the contract, that of a client or customer of a profession or business undertaking carried on by the individual.

(2) Where this section applies, the other provisions of this Part have effect—

(a) as if there were a worker's contract for the doing of the work by the agency worker, made between the agency worker and the relevant person under subsection (3), and

(b) as if that person were the agency worker's employer.

(3) The relevant person is—

(a) whichever of the agent and the principal is responsible for paying the agency worker in respect of the work, or

(b) if neither the agent nor the principal is responsible for doing so, whichever of them pays the agency worker in respect of the work.

Directors

72

(1) A person who holds office as a director of a company is not, by virtue of that office or of any employment by the company, a worker for the purposes of this Part, unless—

(a) the person is employed by the company under a contract of employment, and

(b) there is at least one other person who is employed by the company under a contract of employment.

(2) In this section, “company” includes any body corporate.

Crown employment

73

(1) This Part has effect in relation to employment by or under the Crown as it has effect in relation to other employment.

(2) For the purposes of the application of the provisions of this Part in accordance with subsection (1)—

(a) references to a worker are to be construed as references to a person employed by or under the Crown;

(b) references to a worker's contract are to be construed as references to the terms of employment of a person employed by or under the Crown.

(3) This section does not impose criminal liability on the Crown.

(4) But on the application of the Regulator the High Court may declare unlawful a failure by the Crown to comply with any of the duties mentioned in section 45(1).

Armed forces

74

(1) A person serving as a member of the naval, military or air forces of the Crown is not, by virtue of that service, a worker for the purposes of this Part.

(2) A member of any of the forces specified in subsection (3) who assists the activities of any of those forces is not, by virtue of anything done in assisting those activities, a worker for the purposes of this Part.

(3) The forces are—

(a) the Combined Cadet Force;

(b) the Sea Cadet Corps;

(d) the Air Training Corps.

Police

75

This Part has effect in relation to a person who—

(a) (subject to such exceptions as may be prescribed), holds the office of constable as a police officer or an appointment as a police trainee or police reserve trainee under section 39 or 40 of the Police (Northern Ireland) Act 2000 (c. 32) or as a police cadet under section 42 of that Act, and

(b) does not hold that office or appointment under a contract of employment,

as if the person were employed by the Chief Constable under a worker's contract.

Persons working on vessels

76

(1) Subject to regulations under section 96 of the Pensions Act 2008 (c. 30), a person employed or engaged in any capacity on board a ship is not, by virtue of that employment or engagement, a worker for the purposes of this Part.

(2) In this section, “ship” includes—

(a) a hovercraft within the meaning of the Hovercraft Act 1968 (c. 59), and

(b) every description of vessel used in navigation.

Extension of definition of worker

77

The Department may by regulations make provision for this Part to apply with or without modifications—

(a) as if any individual of a prescribed description (who would not otherwise be a worker) were a worker,

(b) as if there were in the case of any such individual a worker's contract of a prescribed description under which the individual works, and

General

Interpretation of Part

78

In this Part—

“active member”—in relation to an occupational pension scheme, means a person who is in pensionable service under the scheme;in relation to a personal pension scheme, means a jobholder in relation to whom there is an agreement within section 26(4) between the provider of the scheme and the employer or (where section 9 applies) a worker in relation to whom there are direct payment arrangements (within the meaning of section 107A of the Pension Schemes Act) between the worker and the employer;

“automatic enrolment scheme” is to be read in accordance with section 3(8);

“average salary benefits” means benefits the rate or amount of which is calculated by reference to the average salary of a member over the period of service on which the benefits are based;

“collective money purchase benefit” has the meaning given by section 52 of the Pension Schemes Act 2021;

“contract of employment” has the meaning given by section 70;

“defined benefits”, in relation to a member of an occupational pension scheme, means benefits which are not money purchase benefits (but the rate or amount of which is calculated by reference to earnings or service of the member or any other factor other than an amount available for their provision);

“defined benefits scheme” means an occupational pension scheme under which all the benefits that may be provided are defined benefits;

“employer” and “employment” have the meaning given by section 70;

“enrolment duty” means a duty under section 3(2), 5(2), 7(3) or 9(2);

“hybrid scheme” means an occupational pension scheme which is neither a defined benefits scheme nor a money purchase scheme;

“jobholder” has the meaning given by section 1(1);

“money purchase benefits”, in relation to a member of a pension scheme, means— benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which fall within section 78A , and collective money purchase benefits;

“money purchase scheme” means an occupational pension scheme under which all the benefits that may be provided are money purchase benefits;

“occupational pension scheme” has the meaning given by section 18;

“pension scheme” has the meaning given by section 1(5) of the Pension Schemes Act;

“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 2 to the 1995 Order;

“pensionable service”, in relation to a member of an occupational pension scheme, means service in any description of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme;

“personal pension scheme” has the meaning given by section 19;

“provider”—in relation to a personal pension scheme to which section 26 applies, means the person referred to in subsection (1)(b) of that section;in relation to any other personal pension scheme, has the meaning prescribed;

“qualifying earnings” has the meaning given by section 13;

“qualifying scheme” is to be read in accordance with section 2(5);

“tax year” means the 12 months beginning with 6th April in any year;

“trustee or manager” is to be construed in accordance with section 173 of the Pension Schemes Act (trustees or managers of schemes);

“worker” has the meaning given by section 70.

PART 2 — SIMPLIFICATION ETC.

Private pensions

Abolition of safeguarded rights

79

Part 3A of the Pension Schemes Act (safeguarded rights) ceases to have effect.

Revaluation of accrued benefits etc.

80

(1) Schedule 1, which—

(a) amends Schedule 2 to the Pension Schemes Act (methods of revaluing accrued pension benefits),

(b) amends Schedule 6 to the 2005 Order (pension compensation provisions), and

has effect.

(2) The amendments made by Parts 1 and 3 of Schedule 1 do not apply in relation to a revaluation period ending before this section comes into operation.

(3) In subsection (2) “revaluation period” has the same meaning as in paragraph 2(2) of Schedule 2 to the Pension Schemes Act.

State pensions etc.

Consolidation of additional pension

81

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Effect of entitlement to guaranteed minimum pension

82

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Additional State Pension etc.: minor and consequential amendments

83

Schedule 3 (Additional State Pension etc.: minor and consequential amendments) has effect.

State pension credit: extension of assessed income period for those aged 75 or over

84

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

Contracting-out: abolition of all protected rights

85

(1) As from the contracting-out abolition date, pension schemes are not required to make special provision in relation to the protected rights of members.

(2) Accordingly—

(a) the provisions of the Pension Schemes Act within subsection (3) cease to have effect as from that date, and

(b) sections 21A, 23A and 28A of the Pension Schemes Act (as inserted by paragraphs 9, 10 and 12 of Schedule 4 to the Pensions Act (Northern Ireland) 2008 (c. 1)) are not to have any effect as from that date (in spite of section 13(4) of that Act of 2008).

(3) The provisions of the Pension Schemes Act within this subsection are—

(a) section 6 (protected rights and money purchase benefits),

(b) section 22 (persons who may establish scheme),

(d) section 26 (securing of liability for protected rights),

(e) section 28 (suspension or forfeiture), and

(f) section 29A (appropriate schemes: “blowing the whistle”).

(4) In this section—

“the contracting-out abolition date” means the day appointed under section 21 of the Pensions Act (Northern Ireland) 2008 for the coming into operation of section 13(1) of that Act (abolition of contracting-out for defined contribution pension schemes), and

“protected rights” has the same meaning as in the Pension Schemes Act (see section 6 of that Act).

PART 3 — PENSION COMPENSATION

CHAPTER 1 — PENSION COMPENSATION ON DIVORCE ETC.

Scope of mechanism

86

(1) Pension compensation sharing is available under this Chapter in relation to a person's shareable rights to PPF compensation.

(2) For the purposes of this Chapter, a right of a person to PPF compensation is “shareable” unless it is of a description specified by regulations made by the Department.

Interpretation

87

In this Chapter—

“the Board” means the Board of the Pension Protection Fund;

“PPF compensation” means compensation payable under the pension compensation provisions;

“the pension compensation provisions” means—Chapter 3 of Part 3 of the 2005 Order (pension protection) and any regulations or order made under it,this Chapter and any regulations or order made under it, andany provision corresponding to the provisions mentioned in paragraph (a) or (b) in force in Great Britain;

“the relevant order or provision” means the pension compensation sharing order, or provision contained in a qualifying agreement, which gives rise to the pension compensation sharing;

“the transfer day” means the day on which the relevant order or provision takes effect;

“the transferee” means the person for whose benefit the relevant order or provision is made;

“the transferor” means the person to whose rights the relevant order or provision relates.

88

Section 89 applies on the taking effect of any of the following relating to a person's shareable rights to PPF compensation—

(a) a pension compensation sharing order under the Matrimonial Causes (Northern Ireland) Order 1978 (NI 15);

(b) a pension compensation sharing order under Schedule 15 to the Civil Partnership Act 2004 (c. 33) (financial relief in the High Court or a county court: Northern Ireland);

(c) an order under Part 4 of the Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (NI 4) (financial relief in Northern Ireland in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (a);

(d) an order under Schedule 17 to the Civil Partnership Act 2004 (financial relief in Northern Ireland after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (b);

(e) an order or provision to which any of paragraphs (a) to (d), (f) or (g) of section 109 of the Pensions Act 2008 (c. 30) applies (orders or provisions in Great Britain).

Creation of pension compensation debits and credits

89

(1) On the application of this section—

(a) the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme become subject to a debit of the appropriate amount, and

(b) the transferee becomes entitled to a credit of that amount as against the Board.

(2) For the purposes of subsection (1) “the appropriate amount” means—

(a) where the relevant order or provision specifies a percentage to be transferred, that percentage of the cash equivalent of the relevant compensation on the valuation day;

(b) where the relevant order or provision specifies an amount to be transferred, the lesser of—

(i) that specified amount, and

(ii) the cash equivalent of the relevant compensation on the valuation day.

(3) For the purposes of subsection (2) “the relevant compensation” means the payments or future payments to which, immediately before the transfer day, the transferor is entitled under the pension compensation provisions by virtue of the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme.

(4) The Department may by regulations provide for any description of payment to be disregarded for the purposes of subsection (3).

(5) For the purposes of this section—

“the specified scheme” means the pension scheme specified in the relevant order or provision;

“the valuation day” means such day within the implementation period for the credit under subsection (1)(b) as the Board may specify by notice in writing to the transferor and transferee.

(6) The credit to which the transferee becomes entitled under subsection (1)(b) is referred to in this Chapter as a “pension compensation credit”.

Cash equivalents

90

(1) The Department may by regulations make provision about the calculation and verification of cash equivalents for the purposes of section 89.

(2) Regulations under this section may include provision for calculation and verification in a manner approved by the Board.

Reduction of compensation

91

(1) Where any of a person's shareable rights to PPF compensation are subject to a pension compensation debit, each payment or future payment—

(a) to which the person is entitled under the pension compensation provisions by virtue of those rights, and

(b) which is a qualifying payment,

is reduced by the appropriate percentage.

(2) For the purposes of subsection (1) a payment is “a qualifying payment” if the cash equivalent by reference to which the amount of the pension compensation debit is determined includes an amount in respect of it.

(3) In this section “the appropriate percentage”, in relation to a pension compensation debit, means—

(a) the percentage specified in the pension compensation sharing order or provision on which the debit depends; or

(b) if the pension compensation sharing order or provision on which the debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of subsection (1) of section 89 represents of the amount mentioned in subsection (2)(b)(ii) of that section.

Time for discharge of liability

92

(1) This section applies where the Board is subject to a liability in respect of a pension compensation credit.

(2) The Board must discharge the liability before the end of the implementation period for the credit.

(3) The Department may make provision by regulations as to circumstances in which the implementation period for the credit is extended for the purposes of this section.

“Implementation period”

93

(1) For the purposes of this Chapter, the implementation period for a pension compensation credit is the period of 4 months beginning with the later of—

(a) the transfer day, and

(b) the first day on which the Board is in receipt of—

(i) the relevant documents, and

(ii) such information relating to the transferor and transferee as the Department may prescribe by regulations.

(2) In subsection (1)(b)(i) “the relevant documents” means copies of—

(a) the relevant order or provision, and

(b) the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates.

(3) Subsection (1) is subject to any provision made by regulations under section 95(2)(a).

(4) The Department may by regulations—

(a) make provision requiring the Board to notify the transferor and transferee of the day on which the implementation period for the credit begins;

(b) provide for this section to have effect with modifications where the credit depends on a pension compensation sharing order and the order is the subject of an application for leave to appeal out of time.

Discharge of liability

94

(1) This section applies where the Board is subject to a liability in respect of a pension compensation credit.

(2) The Board must discharge the liability by sending a notice to the transferee.

(3) On the sending of the notice the transferee becomes entitled, with effect from (and including) the transfer day, to compensation calculated in accordance with Schedule 4.

(4) For the purposes of that calculation, the initial annual rate of compensation is an amount determined by the Board.

(5) The Board must determine that amount in such a way as to secure that the cash equivalent value of the compensation to which the transferee becomes entitled under subsection (3) equals the amount of the credit.

(6) The Department may by regulations make provision about the calculation of cash equivalents for the purposes of subsection (5).

(7) The notice sent under this section must—

(a) state that the transferee is entitled to periodic pension compensation calculated under Schedule 4, and

(b) specify the amount determined under subsection (4).

(8) Where the transferee dies before liability in respect of the credit has been discharged—

(a) subsections (2) to (7) do not have effect in relation to the discharge of liability in respect of the credit, and

(b) liability in respect of the credit must be discharged in accordance with regulations made by the Department.

95

(1) The Department may by regulations make provision for the purpose of enabling the Board to recover from the parties to pension compensation sharing prescribed charges in respect of prescribed descriptions of pension compensation sharing activity.

(2) Regulations under subsection (1) may include—

(a) provision for the start of the implementation period for a pension compensation credit to be postponed in prescribed circumstances;

(b) provision enabling the Board to set off against any PPF compensation payable to a party to pension compensation sharing any charges owed to it by that party under the regulations;

(c) provision, in relation to payments in respect of charges recoverable under the regulations, for reimbursement as between the parties to pension compensation sharing.

(3) For the purposes of regulations under subsection (1), the question of how much of a charge recoverable under the regulations is attributable to a party to pension compensation sharing is to be determined as follows—

(a) where the relevant order or provision includes provision (“provision for apportionment”) about the apportionment of charges under this section, there is attributable to the party so much of the charge as is apportioned to that party by that provision for apportionment;

(b) where the relevant order or provision does not include provision for apportionment, the charge is attributable to the transferor.

(4) In subsection (1) the reference to pension compensation sharing activity is to activity attributable directly or indirectly to the application of section 89 by virtue of the relevant order or provision.

Supply of information about pension compensation in relation to divorce etc.

96

(1) The Department may by regulations—

(a) make provision imposing on the Board requirements with respect to the supply of information relevant to any power with respect to—

(i) financial relief under Part 3 of the Matrimonial Causes (Northern Ireland) Order 1978 (NI 15) or Part 4 of the Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (NI 4) (Northern Ireland powers in relation to domestic and overseas divorce etc.),

(ii) financial relief under Schedule 15 or 17 to the Civil Partnership Act 2004 (c. 33) (Northern Ireland powers in relation to domestic and overseas dissolution of civil partnerships etc.),

(iii) financial relief, orders for financial provision or provision as to pension sharing or pension compensation sharing to which any of sub-paragraphs (i), (ii), (iv) or (v) of subsection (1)(a) of section 118 of the Pensions Act 2008 (c. 30) applies (financial relief etc. in Great Britain);

(b) make provision about calculation and verification in relation to the valuation of PPF compensation for the purposes of regulations under paragraph (a);

(c) make provision for the purpose of enabling the Board to recover prescribed charges in respect of providing information in accordance with regulations under paragraph (a).

(2) Regulations under subsection (1)(b) may include provision for calculation and verification in a manner approved by the Board.

(3) Regulations under subsection (1)(c) may include provision for the application in prescribed circumstances, with or without modification, of any provision made by virtue of section 95(2).

97

The Department may by regulations require the Board to supply, to such persons as the Department may specify in the regulations, such information relating to anything which follows from the application of section 89 as the Department may so specify.

98

Schedule 5 (which amends matrimonial and civil partnership legislation for the purpose of enabling the court to make pension compensation sharing orders, and orders for the attachment of pension compensation, in connection with proceedings in Northern Ireland) has effect.

CHAPTER 2 — OTHER PROVISION ABOUT PENSION COMPENSATION

99

After Article 152 of the 2005 Order (administration of compensation) insert—

(152A) (1) Regulations may make provision for the purpose of enabling the Board to recover prescribed charges in respect of complying with a relevant order or provision. (2) In paragraph (1) “a relevant order or provision” means any of the following— (a) an order under Article 25 of the Matrimonial Causes (Northern Ireland) Order 1978 (financial provision in connection with divorce etc.) so far as the order— (i) includes provision made by virtue of Article 27B or 27C of that Order (powers to include provision about pensions), and (ii) applies in relation to the Board by virtue of Article 27E of that Order; (b) an order under Article 25 of that Order so far as the order includes provision made by virtue of Article 27F of that Order (attachment of pension compensation on divorce etc.); (c) an order under Part 1 of Schedule 15 to the Civil Partnership Act 2004 (financial provision orders in connection with dissolution of civil partnerships etc.: Northern Ireland) so far as the order— (i) includes provision made by virtue of Part 5 of that Schedule (powers to include provision about pensions), and (ii) applies in relation to the Board by virtue of Part 6 of that Schedule; (d) an order under Part 1 of that Schedule so far as the order includes provision made by virtue of paragraph 29A of that Schedule (attachment of pension compensation on dissolution of civil partnership etc.: Northern Ireland); (e) an order made under any provision corresponding to a provision mentioned in sub-paragraphs (a) to (d) in force in England and Wales; (f) an order or provision to which any of paragraphs (f) and (g) of section 168A(2) of the Pensions Act 2004 applies; (g) an order or provision of a kind mentioned in Article 25(1) of the 1999 Order (pension sharing) so far as the order or provision applies in relation to the Board by virtue of Article 199 of this Order. (3) Regulations under paragraph (1) may include provision enabling the Board to set off against any PPF compensation payable to a person any charges owed to it by that person under the regulations. (4) In this Article “PPF compensation” means compensation payable— (a) under or by virtue of this Chapter, or (b) under or by virtue of Chapter 1 of Part 3 of the Pensions (No. 2) Act (Northern Ireland) 2008 (pension compensation on divorce etc.).

Amendments of Schedule 6 to the 2005 Order

100

Schedule 6 (amendments of Schedule 6 to the 2005 Order) has effect.

Consequential amendments

101

(1) The 2005 Order is amended as follows.

(2) After paragraph 2(2)(d) of Schedule 4 (Board of the Pension Protection Fund) insert—

(da) Article 152A (charges in respect of pension sharing etc.);

(3) After paragraph 2(2)(g) of that Schedule insert—

(ga) section 94 of, and Schedule 4 to, the Pensions (No. 2) Act (Northern Ireland) 2008 (discharge of liability in respect of pension compensation credit); (gb) section 95 of that Act (charges in respect of pension compensation sharing costs); (gc) section 96 of that Act (supply of information about pension compensation in relation to divorce etc.); (gd) section 97 of that Act (supply of information about pension compensation sharing);

(4) In paragraph 2(2)(h) of that Schedule, for “(g)” substitute “ (gd) ”.

PART 4 — ADDITIONAL PENSIONS

Additional pension: upper accrual point to replace upper earnings limit from 2009–10

102

(1) The Contributions and Benefits Act is amended in accordance with subsections (2) to (4).

(2) In section 22(2B) (earnings factors), for “the flat rate introduction year” (in both places) substitute “ 2009–10 ”.

(3) In section 44(7)(c) (Category A retirement pension), for “the flat rate introduction year” (in both places) substitute “ 2009–10 ”.

(4) In section 121 (interpretation)—

(a) in subsection (1), for the definition of “the upper accrual point” substitute—

“the upper accrual point” is £770;

(b) after subsection (6) insert—

(6A) Whenever regulations are made under section 122(6A) of the Great Britain Contributions and Benefits Act, regulations may make corresponding provision for Northern Ireland (and references in this or any other statutory provision to “the prescribed equivalent”, in the context of the upper accrual point, are to the equivalent prescribed under this subsection in relation to earners paid otherwise than weekly).

, and

(5) Section 149(2) of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (referral of regulations to Social Security Advisory Committee) does not apply to regulations under section 121(6A) of the Contributions and Benefits Act.

(6) Schedule 7 contains consequential amendments.

PART 5 — MISCELLANEOUS

Miscellaneous provisions relating to pensions

Amendments of provisions of the 2005 Order relating to contribution notices or financial support directions

103

Schedule 8 (which amends the 2005 Order in relation to contribution notices and financial support directions) has effect.

Interest on late payment of levies

104

Schedule 9 (which makes provision about payment of interest on late payment of levies) has effect.

Payments to employers

105

In Article 37 of the 1995 Order (payment of surplus to employer) after paragraph (1) insert—

(1A) But this Article does not apply in the case of any of the payments listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004 (authorised employer payments other than public service scheme payments or authorised surplus payments).

Appointment of trustees

106

(1) In Article 7 of the 1995 Order (appointment of trustees), in paragraph (3)—

(a) for “necessary”, in the first place where it occurs, substitute “ reasonable ”;

(b) omit “or” at the end of sub-paragraph (b);

, or (d) otherwise to protect the interests of the generality of the members of the scheme.

(2) In paragraph 9(b) of Schedule 2 to the 2005 Order (reserved regulatory functions), for “or (c)” substitute “ , (c) or (d) ”.

Intervention by the Regulator where scheme’s technical provisions improperly determined

107

In Article 210 of the 2005 Order (powers of the Regulator), before sub-paragraph (a) of paragraph (1) insert—

(za) that the trustees or managers, when determining the methods and assumptions to be used in calculating the scheme's technical provisions, have failed to comply with a requirement imposed under Article 201(4)(c);

Delegation of powers by the Regulator

108

(1) In paragraph 2 of Schedule 1 to the 2005 Order (regulations relating to delegation of the Pensions Regulator's functions) the existing provision becomes sub-paragraph (1).

(2) For paragraph (d) of that sub-paragraph substitute—

(d) permitting the Regulator to authorise such persons, in such circumstances and under such arrangements, as the Regulator may determine, to exercise on behalf of the Regulator— (i) the power to determine whether to exercise any of the functions listed in sub-paragraph (2) ; (ii) the power to exercise any of the functions listed in sub-paragraph (2) or such other functions as may be prescribed.

(3) After that sub-paragraph insert—

(2) The functions mentioned in sub-paragraph (1)(d) are— (a) the power to issue an improvement notice under Article 9; (b) the power to issue a third party notice under Article 10; (c) the power to recover unpaid contributions under Article 13; (d) the power to require information under Article 67; (e) the power to vary or revoke a determination, order, notice or direction under Article 96; (f) the power to require payment of a penalty under Article 10 of the 1995 Order; (g) the power to issue a compliance notice under section 35 of the Pensions (No. 2) Act (Northern Ireland) 2008; (h) the power to issue a third party compliance notice under section 36 of that Act; (i) the power to issue an unpaid contributions notice under section 37 of that Act; (j) the power to issue a fixed penalty notice under section 40 of that Act; (k) the power to issue an escalating penalty notice under section 41 of that Act; (l) the power to recover penalties under section 42 of that Act; (m) the power to review a notice under section 43 of that Act; (n) the power to issue a compliance notice in respect of prohibited recruitment conduct under section 51 of that Act; (o) the power to issue a penalty notice in respect of prohibited recruitment conduct under section 52 of that Act.

(4) Subsections (1) to (3)—

(a) do not affect any regulations made under paragraph 2(d) of Schedule 1 to the 2005 Order before the coming into operation of this section, and

(b) do not affect the powers conferred by that paragraph, so far as exercisable for the purpose of making, by way of consolidation, provision having the same effect as any provision of those regulations.

Exclusion of transfers out in certain cases

109

(1) The Pension Schemes Act is amended as follows.

(2) In section 89(1B) (regulations as to the application of provisions relating to transfers for early leavers) after paragraph (a) insert—

(aa) provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description;

(3) In section 97F (transfer notice in respect of pension credit benefit) after subsection (6) insert—

(6A) Regulations may provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description.

Official pensions

Official pensions: adjustment of increases in survivors' pensions

110

(1) Article 69 of the Social Security Pensions (Northern Ireland) Order 1975 (NI 15) (increase of official pensions) is amended as follows.

(2) Paragraph (5ZA) is amended as follows.

(3) In the words before sub-paragraph (a)—

(a) for “or widower's” substitute “ , widower's or surviving civil partner's ”;

(b) after “spouse” insert “ or civil partner ”.

(4) In sub-paragraph (a), after “spouse” insert “ or civil partner ”.

(5) In sub-paragraph (b)—

(a) after “period” insert “ (“the relevant time”) ”;

(b) for the words from “one half” to the end substitute “ the rate provided for in paragraph (5ZB); ”.

(6) In sub-paragraph (c), for “or widower's” substitute “ , widower's or surviving civil partner's ”.

(7) Omit the words from “but this paragraph” to the end.

(8) After paragraph (5ZA) insert—

(5ZB) The rate referred to in paragraph (5ZA)(b) is— (a) in the case of a widow's pension, one half of the rate of the deceased husband's guaranteed minimum pension at the relevant time; (b) in the case of a widower's pension, one half of so much of the rate of the deceased wife's guaranteed minimum pension at the relevant time as is attributable to earnings factors for the tax year 1988–89 and subsequent tax years; (c) in the case of a surviving civil partner's pension, one half of so much of the rate of the deceased civil partner's guaranteed minimum pension at the relevant time as is attributable to earnings factors for the tax year 1988–89 and subsequent tax years. (5ZC) Paragraph (5ZA)— (a) does not apply to a widow's or widower's pension in respect of any service of the deceased spouse if the deceased spouse's pension in respect of that service became payable before 24th September 1990; (b) applies to a surviving civil partner's pension only in respect of amounts payable after the coming into operation of this paragraph.

Information relating to state pension credit recipients

Disclosure of information relating to state pension credit recipients

111

(1) The Department may by regulations make provision authorising the Department, or a person providing services to the Department, to supply relevant persons with social security information about persons in receipt of state pension credit.

(2) In this section “relevant person” means—

(a) a person who holds a licence under Article 10(1)(c) or (2) of the Electricity (Northern Ireland) Order 1992 (NI 1) or Article 8(1)(c) of the Gas (Northern Ireland) Order 1996 (NI 2) (supply of electricity or gas to premises), or

(b) a person providing services to the Department or to a person within paragraph (a).

(3) Regulations under this section must specify the purposes for which information may be supplied by virtue of subsection (1), which must be purposes in connection with enabling the provision of assistance to persons in receipt of state pension credit.

(4) Regulations under this section may authorise the supply of information by a relevant person to the Department or another relevant person—

(a) for the purpose of determining what information is to be supplied by virtue of subsection (1), or

(b) to enable information supplied to a relevant person by virtue of subsection (1) to be used by that or another relevant person for purposes within subsection (3).

(5) Regulations under this section may—

(a) make provision as to the use or disclosure of information supplied under the regulations (including provision creating criminal offences);

(b) provide for the recovery by the Department of costs incurred in connection with the supply or use of information under the regulations.

(6) In this section—

“social security information” means information held by or on behalf of the Department and obtained as a result of, or for the purpose of, the exercise of the Department's functions in relation to social security;

“state pension credit” has the meaning given by section 1(1) of the State Pension Credit Act (Northern Ireland) 2002 (c. 14).

PART 6 — GENERAL

Orders and regulations

112

(1) Subject to the following provisions of this section, any orders or regulations made by the Department under this Act are subject to negative resolution.

(2) Subsection (1) does not apply to an order under section 118.

(3) Orders or regulations to which this subsection applies—

(a) must be laid before the Assembly after being made; and

(b) take effect on such date as may be specified in the order or regulations, but (without prejudice to the validity of anything done thereunder or to the making of a new order or regulations) cease to have effect upon the expiration of a period of six months from that date unless at some time before the expiration of that period the order or regulations are approved by a resolution of the Assembly.

(4) Subsection (3) applies to—

(a) regulations under section 16(3)(c), 17(1)(c), 28, 77 or 111;

(b) the first regulations under section 3(2) or (6), 5(2) or (7), 7(4)(b) or (6) or 9(3)(b);

(d) an order under section 114 amending or repealing any relevant statutory provision;

(e) an order under paragraph 9(7) of Schedule 4.

(5) This subsection applies to any regulations or orders made by the Department under this Act which—

(a) but for subsection (6), would be subject to negative resolution, and

(b) are contained in a statutory rule which includes any regulations or order subject to the confirmatory procedure.

(6) Any regulations or orders to which subsection (5) applies shall not be subject to negative resolution, but shall be subject to the confirmatory procedure.

(7) In this section—

“the confirmatory procedure” means the procedure described in subsection (3);

“relevant statutory provision” means a statutory provision contained in—an Act of the Parliament of Northern Ireland;an Order in Council under Schedule 1 to the Northern Ireland Act 1974 (c. 28) or the Schedule to the Northern Ireland Act 2000 (c. 1);an Act of the Assembly; oran Act of the Parliament of the United Kingdom.

Orders and regulations: supplementary

113

(1) This section applies to an order or regulations made by the Department under this Act.

(2) An order or regulations may include—

(a) such incidental, supplemental, consequential or transitional provision as appears to the Department to be expedient;

(b) provision conferring a discretion on any person.

Further provision etc.

114

(1) The Department may by order make—

(a) such supplemental, incidental or consequential provision, or

(b) such transitory, transitional or saving provision,

as the Department thinks appropriate for the general purposes, or any particular purpose, of this Act or in consequence of any provision made by or under this Act or for giving full effect to this Act or any such provision.

(2) An order under this section may, for purposes of or in consequence of or for giving full effect to any provision of or made under section 85, make provision for applying (with or without modifications) or amending, repealing or revoking any statutory provision.

(3) Amendments made under this section are in addition, and without prejudice, to those made by or under any other provision of this Act.

(4) No other provision of this Act restricts the powers conferred by this section.

(5) In Article 17 of the Deregulation and Contracting Out (Northern Ireland) Order 1996 (NI 11) (social security: amendments following certain orders), at the end of paragraph (2) add “ the Pensions Act 2008 ”.

Pre-consolidation amendments

115

(1) The Department may by order make such modification of statutory provisions within subsection (2) as in the Department's opinion facilitate, or are otherwise desirable in connection with, the consolidation of any of those statutory provisions.

(2) The statutory provisions are—

(a) the Pension Schemes Act;

(b) the 1995 Order;

(d) Chapter 2 of Part 2 of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4);

(e) the 2005 Order;

(f) the Pensions Act (Northern Ireland) 2008 (c. 1);

(g) this Act;

(h) statutory provisions referring to any provision within paragraphs (a) to (g).

Repeals

116

Schedule 10 (repeals) has effect.

Interpretation

117

(1) In this Act—

“the 1995 Order” means the Pensions (Northern Ireland) Order 1995 (NI 22);

“the 2005 Order” means the Pensions (Northern Ireland) Order 2005 (NI 1);

“the Contributions and Benefits Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7);

“the Department” means the Department for Social Development;

“the Employment Rights Order” means the Employment Rights (Northern Ireland) Order 1996 (NI 16);

“First-tier Tribunal” and “Upper Tribunal” mean those tribunals established under section 3 of the Tribunals, Courts and Enforcement Act 2007;

“the Pension Schemes Act” means the Pension Schemes (Northern Ireland) Act 1993 (c. 49);

“prescribed” means prescribed by regulations;

“regulations” means regulations made by the Department;

“the Regulator” means the Pensions Regulator;

“statutory provision” has the meaning given in section 1(f) of the Interpretation Act (Northern Ireland) 1954 (c. 33).

“Tribunal Procedure Rules” has the same meaning as in the Tribunals, Courts and Enforcement Act 2007.

(2) In the application, for the purposes of this Act, of section 39(2) of the Interpretation Act (Northern Ireland) 1954 (time beginning on a particular day), omit the word “not”.

Commencement

118

(1) Subject to the following provisions, this Act comes into operation in accordance with provision made by order by the Department.

(2) Subsection (1) does not apply to—

(a) sections 65 to 68;

(b) section 84;

(d) section 108;

(e) section 109;

(f) section 111;

(g) this Part, except Parts 1 to 5 of Schedule 10 and section 116 so far as relating thereto;

(h) the provisions mentioned in subsection (3);

(i) the provisions mentioned in subsection (5);

(j) any other provision of this Act so far as it confers any power to make regulations, rules or an order under this Act.

(3) The provisions mentioned in this subsection are—

(a) in Schedule 8—

(i) paragraph 1 so far as relating to any of the following paragraphs;

(ii) paragraph 3 (and paragraph 2 so far as necessary for the purposes of that paragraph);

(iii) paragraphs 5 to 7;

(iv) paragraph 8 for purposes other than those of the material detriment test;

(v) paragraphs 9 to 14;

(vi) in paragraph 15, sub-paragraph (1) so far as relating to paragraphs 6 and 7, sub-paragraph (2) for purposes other than those of the material detriment test, and sub-paragraphs (3) and (4);

(vii) paragraph 16;

(b) section 103 so far as relating to any of the paragraphs of that Schedule mentioned in paragraph (a) of this subsection;

(c) the repeal in Schedule 10 relating to Article 34(5)(a)(ii) of the 2005 Order, the note in that Schedule relating to that repeal and section 116 so far as relating to that repeal and that note.

(4) Section 84 comes into operation on 6th April 2009.

(5) Sub-paragraph (3) of paragraph 6 of Schedule 7, and Part 6 of Schedule 10 so far as relating to the repeals mentioned in that sub-paragraph, come into operation on the day appointed by an order under section 21(1) of the Pensions Act (Northern Ireland) 2008 (c. 1) for the coming into operation of paragraph 44(2) of Schedule 4 to that Act.

Short title

119

This Act may be cited as the Pensions (No. 2) Act (Northern Ireland) 2008.

SCHEDULE 1

PART 1 — REVALUATION OF ACCRUED PENSION BENEFITS

Amendments to Schedule 2 to the Pension Schemes (Northern Ireland) Act 1993

1

This Part makes amendments to Schedule 2 to the Pension Schemes Act (methods of revaluing accrued pension benefits).

2

In paragraph 1 (the final salary method), for sub-paragraphs (1) to (3) substitute—

(1) The final salary method is to add to the amount that would be payable but for Chapter 2 of Part 4, or regulations made under it, the additional amount specified in sub-paragraph (1A), (1B), (1C) or (1D) (whichever applies). (1A) Where— (a) the termination of pensionable service occurs before 1st January 1991, and (b) the whole of the member's pensionable service falls on or after 1st January 1985, the additional amount is the appropriate higher revaluation percentage of the accrued benefit. (1B) Where— (a) the termination of pensionable service occurs before 1st January 1991, and (b) some of the member's pensionable service falls before 1st January 1985, the additional amount is such proportion of the appropriate higher revaluation percentage of the accrued benefit as the member's pensionable service falling on or after 1st January 1985 bears to the member's total pensionable service. (1C) Where the termination of pensionable service occurs— (a) on or after 1st January 1991, but (b) before the day on which section 80 of the Pensions (No. 2) Act (Northern Ireland) 2008 comes into operation (“the Pensions Act commencement day”), the additional amount is the appropriate higher revaluation percentage of the accrued benefit. (1D) Where the termination of pensionable service occurs on or after the Pensions Act commencement day, the additional amount is the aggregate of— (a) the appropriate higher revaluation percentage of so much of the accrued benefit as is attributable to the member's pensionable service falling before the Pensions Act commencement day, and (b) the appropriate lower revaluation percentage of so much of the accrued benefit as is attributable to the member's pensionable service falling on or after that day. (1E) In this paragraph “the accrued benefit” means the amount of the pension or other benefit which on the termination date has accrued to the member or to any other person in respect of the member (excluding any part of that amount which consists of— (a) the member's guaranteed minimum, or (b) the guaranteed minimum of the member's widow, widower or surviving civil partner). (2) For the purposes of this paragraph, a member's pensionable service includes any notional pensionable service which is credited to the member by the scheme (“notional service”). But notional service shall not be taken into account in determining which of sub-paragraphs (1A), (1B), (1C) and (1D) applies. (3) For the purposes of determining the additional amount where sub-paragraph (1B) applies, any notional service shall be taken to have ended immediately before the member's actual pensionable service began. (3A) For the purposes of determining the additional amount where sub-paragraph (1D) applies, any notional service shall be treated as falling on or after the Pensions Act commencement day only if, or to the extent that, it is so treated for the purposes of the scheme.

3

(1) Paragraph 2 (the revaluation percentage and the appropriate revaluation percentage) is amended as follows.

(2) In sub-paragraph (1)—

(a) for “a revaluation percentage” substitute “ a higher revaluation percentage and a lower revaluation percentage ”;

(b) for “a corresponding revaluation percentage” substitute “ a corresponding higher revaluation percentage and a corresponding lower revaluation percentage ”.

(3) For sub-paragraph (3) substitute—

(3) In paragraph 1— - “the appropriate higher revaluation percentage” means the higher revaluation percentage specified in the last calendar year before the date on which the member attains normal pension age as the higher revaluation percentage for the revaluation period which is of the same length as the number of complete years in the pre-pension period; - “the appropriate lower revaluation percentage” has a corresponding meaning.

PART 2 — REVALUATION OF ACCRUED AMOUNTS ETC.

Amendments to Schedule 6 to the 2005 Order

4

This Part makes amendments to Schedule 6 to the 2005 Order (pension compensation provisions).

5

(1) Paragraph 12 (active members who have not attained normal pension age at assessment date: the revaluation amount for the revaluation period) is amended as follows.

(2) In sub-paragraph (3), for paragraph (b) substitute—

(b) in any other case, the aggregate of— (i) the higher revaluation percentage of so much of the accrued amount as is attributable to the active member's pensionable service falling before the day on which section 80 of the Pensions (No. 2) Act (Northern Ireland) 2008 comes into operation (“the Pensions Act commencement day”), and (ii) the lower revaluation percentage of so much of the accrued amount as is attributable to the active member's pensionable service falling on or after that day.

(3) After sub-paragraph (3) insert—

(3A) For the purposes of sub-paragraph (3)(b)— (a) any service within paragraph 36(4)(b) (notional pensionable service) is to be treated as falling on or after the Pensions Act commencement day if, or to the extent that, it is so treated for the purposes of the scheme; (b) regulations may make provision in relation to cases where it is unclear whether or not any particular pensionable service (either actual or notional) falls, or is to be treated as falling, on or after that day.

(4) For sub-paragraphs (4) and (5) substitute—

(4) In sub-paragraph (3)(b)— - “the higher revaluation percentage” means the lesser of— 1. the percentage increase referred to in paragraph (a) of the definition of “the higher revaluation percentage” in paragraph 12(4) of Schedule 7 to the Pensions Act 2004 (“the inflation percentage”), and 2. the higher maximum revaluation rate; - “the lower revaluation percentage” means the lesser of— 1. the inflation percentage, and 2. the lower maximum revaluation rate. (5) For the purposes of sub-paragraph (4)— - “the higher maximum revaluation rate”, in relation to the revaluation period, is— 1. if that period is a period of 12 months, 5%, and 2. in any other case, the percentage referred to in paragraph (b) of the definition of “the higher maximum revaluation rate” in paragraph 12(5) of Schedule 7 to the Pensions Act 2004; - “the lower maximum revaluation rate”, in relation to the revaluation period, is— 1. if that period is a period of 12 months, 2.5%, and 2. in any other case, the percentage referred to in paragraph (b) of the definition of “the lower maximum revaluation rate” in paragraph 12(5) of Schedule 7 to the Pensions Act 2004. This is subject to paragraph 29 (power of Board to determine maximum revaluation rates etc.).

6

(1) Paragraph 17 (deferred members who have not attained normal pension age at assessment date: the revaluation amount for the second revaluation period) is amended as follows.

(2) In sub-paragraph (3), for paragraph (b) substitute—

(b) in any other case, the aggregate of— (i) the higher revaluation percentage of so much of the relevant amount as is attributable to the deferred member's pensionable service falling before the day on which section 80 of the Pensions (No. 2) Act (Northern Ireland) 2008 comes into operation (“the Pensions Act commencement day”), and (ii) the lower revaluation percentage of so much of the relevant amount as is attributable to the deferred member's pensionable service falling on or after that day.

(3) After sub-paragraph (3) insert—

(3A) For the purposes of sub-paragraph (3)(b)— (a) any service within paragraph 36(4)(b) (notional pensionable service) is to be treated as falling on or after the Pensions Act commencement day if, or to the extent that, it is so treated for the purposes of the scheme; (b) regulations may make provision in relation to cases where it is unclear whether or not any particular pensionable service (either actual or notional) falls, or is to be treated as falling, on or after that day.

(4) For sub-paragraphs (4) and (5) substitute—

(4) In sub-paragraph (3)— - “the higher revaluation percentage” means the lesser of— 1. the percentage increase referred to in paragraph (a) of the definition of “the higher revaluation percentage” in paragraph 17(4) of Schedule 7 to the Pensions Act 2004 (“the inflation percentage”), and 2. the higher maximum revaluation rate; - “the lower revaluation percentage” means the lesser of— 1. the inflation percentage, and 2. the lower maximum revaluation rate; - “the relevant amount” means the aggregate of— 1. the accrued amount, and 2. the revaluation amount for the first revaluation period (see paragraph 16). (5) For the purposes of sub-paragraph (3)— - “the higher maximum revaluation rate”, in relation to the second revaluation period, is— 1. if that period is a period of 12 months, 5%, and 2. in any other case, the percentage referred to in paragraph (b) of the definition of “the higher maximum revaluation rate” in paragraph 17(5) of Schedule 7 to the Pensions Act 2004; - “the lower maximum revaluation rate”, in relation to the second revaluation period, is— 1. if that period is a period of 12 months, 2.5%, and 2. in any other case, the percentage referred to in paragraph (b) of the definition of “the lower maximum revaluation rate” in paragraph 17(5) of Schedule 7 to the Pensions Act 2004. This is subject to paragraph 29 (power of Board to determine maximum revaluation rates etc.).

7

In paragraph 29 (Board's powers to alter rates of revaluation etc.), for sub-paragraph (1) substitute—

(1) The Board may determine what is to be the higher maximum revaluation rate or the lower maximum revaluation rate for the purposes of paragraphs 12(4) and 17(4), and where it does so the relevant definitions in paragraphs 12(5) and 17(5) do not apply.

PART 3 — CONSEQUENTIAL AMENDMENTS

8

In Article 51ZA of the 1995 Order (meaning of “the appropriate percentage”)—

(a) in paragraph (a), for “revaluation percentage” substitute “ higher revaluation percentage ”;

(b) for paragraph (b) substitute—

(b) in the case of a category Y pension, means the lower revaluation percentage for that period.

9

In Article 54(3) of the 1995 Order (Articles 51 to 53: supplementary)—

(a) after the definition of “the commencement day” insert—

“higher revaluation percentage” and “lower revaluation percentage” mean the higher revaluation percentage and the lower revaluation percentage specified for a revaluation period by a revaluation order;

;

(b) omit the definition of “revaluation percentage”.

SCHEDULE 2

After Schedule 4B to the Contributions and Benefits Act insert—

SCHEDULE 3

1

The Contributions and Benefits Act is amended as follows.

2

In section 21(5A)(c) (contribution conditions) after “5(2)(b) and (4)(a)” insert “ , 5A(3)(a) ”.

3

In section 39(1) (rate of widowed mother's allowance and widow's pension) for “46(2)” substitute “ 46 ”.

4

(1) Section 39C (rate of widowed parent's allowance and bereavement allowance) is amended as follows.

(2) In subsection (1)—

(a) for “45” substitute “ 45AA ”;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In subsections (3) and (4)—

(a) for “45” substitute “ 45AA ”;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

(1) After section 45 (additional pension in Category A retirement pension) insert—

(45AA) (1) For the purposes of calculating additional pension under sections 44 and 45 where, in the case of any relevant year, working families' tax credit is paid in respect of any employed earner, or disabled person's tax credit is paid to any employed earner, section 44(6)(a)(i) shall have effect as if— (a) where that person had earnings of not less than the qualifying earnings factor for that year, being earnings upon which primary Class 1 contributions were paid or treated as paid (“qualifying earnings”) in respect of that year, the amount of those qualifying earnings were increased by the aggregate amount (“AG”) of working families' tax credit, or, as the case may be, disabled person's tax credit paid in respect of that year, and (b) in any other case, that person had qualifying earnings in respect of that year and the amount of those qualifying earnings were equal to AG plus the qualifying earnings factor for that year. (2) The reference in subsection (1) to the person in respect of whom working families' tax credit is paid— (a) where it is paid to one of a couple, is a reference to the prescribed member of the couple, and (b) in any other case, is a reference to the person to whom it is paid. (3) A person's qualifying earnings in respect of any year cannot be treated by virtue of subsection (1) as exceeding the upper earnings limit for that year multiplied by 53. (4) Subsection (1) does not apply to any woman who has made, or is treated as having made, an election under regulations under section 19(4), which has not been revoked, that her liability in respect of primary Class 1 contributions shall be at a reduced rate. (5) In this section— - “couple” has the same meaning as in Part 7 (see section 133); - “relevant year” has the same meaning as in section 44.

(2) Sub-paragraph (1) together with paragraphs 4(2)(a) and (3)(a), 9(2)(a) and (3)(a) and 11 (which make amendments consequential on sub-paragraph (1)) are referred to in the following provisions of this paragraph as “the relevant provisions”.

(3) Subject to sub-paragraphs (4) and (5), the relevant provisions apply to a person (“the pensioner”) who attains pensionable age after 5th April 1999 and, in relation to such a person—

(a) have effect for 1995–96 and subsequent tax years, and

(b) are deemed so to have had effect (with the necessary modifications) during the period—

(i) beginning with 6th April 2003, and

(ii) ending with the coming into operation of this paragraph.

(4) Where the pensioner is a woman, the relevant provisions have effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Contributions and Benefits Act by virtue of section 39 of that Act (widowed mother's allowance and widow's pension), including Category B retirement pension payable under section 48B(4), if her husband—

(a) dies after 5th April 1999, and

(b) has not attained pensionable age on or before that date.

(5) The relevant provisions have effect, where additional pension falls to be calculated under sections 44 and 45 of the Contributions and Benefits Act as applied by section 48A or 48B(2) of that Act (other Category B retirement pension) if—

(a) the pensioner attains pensionable age after 5th April 1999, and

(b) the pensioner's spouse has not attained pensionable age on or before that date.

6

(1) Section 46 (modifications of section 45 for calculating the additional pension in certain benefits) is amended as follows.

(2) In subsection (2) for “, 48B(2) or 48BB(5)” substitute “ or 48B(2) ”.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

In section 48A(4) (Category B retirement pension for married person)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) for “46(2)” substitute “ 46 ”.

8

In section 48B(2) (Category B retirement pension for widows and widowers)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) for “46(2)” substitute “ 46 ”.

9

(1) Section 48BB (Category B retirement pension: entitlement by reference to benefits under section 39A or 39B) is amended as follows.

(2) In subsection (5)—

(a) for “45” substitute “ 45AA ”;

(b) after “45AA” (inserted by paragraph (a)) insert “ and 45B ”;

(d) for “46(3)” substitute “ 46 ”.

(3) In subsection (6)—

(a) for “45” substitute “ 45AA ”;

(b) after “45AA” (inserted by paragraph (a)) insert “ and 45B ”.

10

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

11

In section 51(2) and (3) (Category B retirement pension for widowers) for “45” substitute “ 45AA ”.

12

(1) Schedule 4B (additional pension: accrual rates for purposes of section 45(2)(d)) is amended as follows.

(2) In paragraph 2 (application of Part 2 of Schedule)—

(a) after “if” insert

— (a)

;

(b) after paragraph (a) (created by virtue of paragraph (a) above) insert

and (b) there is a surplus in the pensioner's earnings factor for the year.

(3) In paragraph 3 (appropriate amount for year)—

(a) in paragraph (a), for the words from “there is” to “which” substitute “ the pensioner's earnings factor for the year ”;

(b) in paragraph (b), for “there is such a surplus which” substitute “ that earnings factor ”.

(4) In paragraph 5(a) for “surplus” substitute “ earnings factor ”.

(5) In paragraph 6 (application of Part 3 of Schedule)—

(a) after “if” insert

— (a)

;

(b) after paragraph (a) (created by virtue of paragraph (a) above) insert

and (b) there would be a surplus in the pensioner's earnings factor for the year if section 44A of the Pensions Act did not apply in relation to any tax week falling in the year.

(6) In paragraph 8(1) (calculation of amount A: assumed surplus not exceeding LET), for the words from “there” to “which” substitute “ the pensioner's assumed earnings factor for the year ”; and, accordingly, in the heading before paragraph 8 for “surplus” substitute “ earnings factor ”.

(7) In paragraph 9 (calculation of amount A: assumed surplus exceeding LET)—

(a) in sub-paragraph (1), for the words from “there” to “which” substitute “ the pensioner's assumed earnings factor for the year ”;

(b) in sub-paragraph (2)(a), for “assumed surplus” substitute “ assumed earnings factor ”,

and, accordingly, in the heading before paragraph 9 for “surplus” substitute “ earnings factor ”.

(8) In paragraph 10(1)(a) (amount B), for “assumed surplus” substitute “ pensioner's assumed earnings factor ”.

(9) In paragraph 12 (interpretation)—

(a) omit the definition of “assumed surplus”;

(b) before the definition of “the QEF” insert—

“the pensioner's assumed earnings factor”, in relation to a year, means the earnings factor that the pensioner would have for the year if section 44A(1) of the Pensions Act did not apply in relation to any tax week falling in the year;

13

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14

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

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

15

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16

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17

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18

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19

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20

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21

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22

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SCHEDULE 4

PART 1 — INTRODUCTORY

Introductory

1

This Schedule applies for the purposes of determining the compensation payable to or in respect of a person entitled to compensation on the discharge of a pension compensation credit in accordance with this Chapter.

Interpretation

2

In this Schedule—

“the initial annual rate of compensation” is the amount determined by the Board under section 94(4);

the “pension compensation age” of the transferee is the age determined in accordance with paragraph 3.

Pension compensation age

3

(1) This paragraph applies for the purpose of determining the transferee's pension compensation age.

(2) Sub-paragraphs (3) and (4) apply where the transferor's PPF compensation, or any of it, is determined under Schedule 6 to the 2005 Order.

(3) Where the transferor's right to PPF compensation arises by virtue of his or her status as a member of a pension scheme for which the Board assumed responsibility in accordance with Chapter 3 of Part 3 of that Order, the transferee's pension compensation age is the same as—

(a) the normal pension age of the transferor, or

(b) where the transferor was a pension credit member, the normal benefit age of the transferor.

(4) Where the transferor's right to PPF compensation arises by virtue of his or her status as a person connected with a member of a scheme for which the Board assumed responsibility in accordance with Chapter 3 of Part 3 of that Order, the transferee's pension compensation age is the same as—

(a) the normal pension age of that member, or

(b) where that member was a pension credit member, the normal benefit age of that member.

(5) Sub-paragraph (6) applies where the transferor's PPF compensation is determined only under this Schedule.

(6) The transferee's pension compensation age is the same as the pension compensation age of the transferor.

(7) In this paragraph, “normal benefit age”, “normal pension age” and “pension credit member” have the same meanings as in Schedule 6 to the 2005 Order.

PART 2 — TRANSFEREE ATTAINS PENSION COMPENSATION AGE BEFORE OR ON TRANSFER DAY

Compensation payable to transferee

4

(1) Compensation is payable in accordance with this paragraph where the transferee attains pension compensation age before or on the transfer day.

(2) The transferee is entitled to periodic compensation commencing on the transfer day and continuing for life.

(3) The annual rate of the periodic compensation is the aggregate of—

(a) the initial annual rate of compensation, ...

(aa) if the commencement of periodic compensation under this paragraph has been postponed for any period by virtue of paragraph 16A, the amount of the actuarial increase under that paragraph, and

(b) any increases under paragraph 17 (annual increases in periodic compensation).

(4) This paragraph is subject to paragraph 16A (postponement of compensation) and paragraph 18 (compensation cap).

Compensation payable to widow, widower or surviving civil partner

5

(1) This paragraph applies where—

(a) the transferee dies after liability in respect of the pension compensation credit has been discharged under section 94,

(b) the transferee was before death entitled under paragraph 4 to periodic compensation commencing on the transfer day, and

(2) Subject to sub-paragraph (4), the surviving partner is entitled to periodic compensation commencing on the day following the transferee's death and continuing for life.

(3) The annual rate of the periodic compensation at any time is half of the annual rate of the periodic compensation (including any actuarial increase under paragraph 16A and any increases under paragraph 17) to which the transferee would at that time have been entitled under paragraph 4 had the transferee not died.

(3A) If, on the day the transferee (“T”) died, commencement of T's periodic compensation under paragraph 4 was postponed by virtue of paragraph 16A, assume for the purposes of sub-paragraph (3) that the periodic compensation commenced immediately before the date of T's death.

(4) The surviving partner is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.

PART 3 — TRANSFEREE ATTAINS PENSION COMPENSATION AGE AFTER TRANSFER DAY

Compensation payable to transferee

6

(1) Compensation is payable in accordance with this paragraph where the transferee attains pension compensation age after the transfer day.

(2) The transferee is entitled to periodic compensation commencing at that age and continuing for life.

(3) The annual rate of the periodic compensation is the aggregate of—

(a) the initial annual rate of compensation,

(b) the revaluation amount (see paragraph 8), ...

(ba) if the commencement of periodic compensation under this paragraph has been postponed for any period by virtue of paragraph 16A, the amount of the actuarial increase under that paragraph, and

(4) This paragraph is subject to—

paragraph 9 (commutation),

paragraph 10 (early payment),

paragraph 15 (terminal illness lump sum), ...

paragraph 16A (postponement of compensation), and

paragraph 18 (compensation cap).

Compensation payable to widower, widow or surviving civil partner

7

(1) This paragraph applies where—

(a) the transferee dies after liability in respect of the pension compensation credit has been discharged under section 94,

(b) the transferee—

(i) was, before death, entitled under paragraph 6 to periodic compensation commencing at pension compensation age, or

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Pensions (No. 2) Act (Northern Ireland) 2008

Powers to require information and to enter premises

60

Disclosure of tax information etc.

61

Penalty for disclosure

62

Objectives of the Regulator

Objectives of the Regulator

63

Functions of the Pensions Ombudsman

Functions of the Pensions Ombudsman

64

CHAPTER 5 — PERSONAL ACCOUNTS DELIVERY AUTHORITY

Functions

Functions and winding up

65

Principles

66

Directions and guidance

67

Disclosure of information by the Regulator

68

CHAPTER 6 — STAKEHOLDER PENSION SCHEMES

Stakeholder pension schemes

69

CHAPTER 7 — APPLICATION AND INTERPRETATION

Workers

“Employer”, “worker” and related expressions

70

Agency workers

71

Directors

72

Crown employment

73

Armed forces

74

Police

75

Persons working on vessels

76

Extension of definition of worker

77

General

Interpretation of Part

78

PART 2 — SIMPLIFICATION ETC.

Private pensions

Abolition of safeguarded rights

79

Revaluation of accrued benefits etc.

80

State pensions etc.

Consolidation of additional pension

81

Effect of entitlement to guaranteed minimum pension

82

Additional State Pension etc.: minor and consequential amendments

83

State pension credit: extension of assessed income period for those aged 75 or over

84

Contracting-out: abolition of all protected rights

85

PART 3 — PENSION COMPENSATION

CHAPTER 1 — PENSION COMPENSATION ON DIVORCE ETC.

Scope of mechanism

86

Interpretation

87

Activation of pension compensation sharing

88

Creation of pension compensation debits and credits

89

Cash equivalents

90

Reduction of compensation

91

Time for discharge of liability

92