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The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005

Type Ni-Statutory-Rule
Publication 2005-12-16
Last updated 2024-04-06
State In force
Jurisdiction Northern Ireland
Department Government Printer for Northern Ireland
Source legislation.gov.uk
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articles 7
Reform history JSON API
Column (1) Column (2) Column (3)
Citation Reference Extent of Revocation
The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations Regulations) (Northern Ireland) 1996 S.R. 1996 No. 570 The whole Regulations
The Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 1996 S.R. 1996 No. 584 Regulation 12
The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1997 S.R. 1997 No. 160 In the Schedule, paragraph 7
The Personal and Occupational Pension Schemes (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 1997 S.R. 1997 No. 544 Regulation 3
The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1999 S.R. 1999 No. 486 Regulation 6
The Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2000 S.R. 2000 No. 69 Regulation 3
The Pension Sharing (Consequential and Miscellaneous Amendments) Regulations (Northern Ireland) 2000 S.R. 2000 No. 335 Regulation 3
The Occupational Pension Schemes (Minimum Funding Requirement and Miscellaneous Amendments) Regulations (Northern Ireland) 2002 S.R. 2002 No. 64 Regulation 2
The Social Security and Pensions (Financial Services and Markets Act 2000) (Consequential Amendments) Regulations (Northern Ireland) 2003 S.R. 2003 No. 256 Regulation 7
The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) (Amendment) Regulations (Northern Ireland) 2004 S.R. 2004 No. 481 The whole Regulations
The Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 S.R. 2005 No. 168 In Schedule 2, paragraph 1
The Occupational Pension Schemes (Winding up, etc.) Regulations (Northern Ireland) 2005 S.R. 2005 No. 171 In the Schedule, paragraph 9
The Occupational Pension Schemes (Winding Up) (Modification for Multi-employer Schemes and Miscellaneous Amendments) Regulations (Northern Ireland) 2005 S.R. 2005 No. 363 Regulation 3
The Occupational Pension Schemes (Employer Debt, etc.) (Amendment) Regulations (Northern Ireland) 2005 S.R. 2005 No. 387 Regulation 4

Signed

Sealed with the Official Seal of the Department for Social Development on 16th December 2005.

John O'Neill — A senior officer of the — Department for Social Development

Explanatory note

(This note is not part of the Regulations)

These Regulations together with Part IV of the Pensions (Northern Ireland) Order 2005 (“the Order”) implement Articles 15 and the funding requirements in Article 16 of European Union Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision (OJ No. L 235, 23.9.03, p.10) (“the Directive”). They replace the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations (Northern Ireland) 1996, which are revoked together with provisions that amend those Regulations.

Article 201 of the Order imposes on every occupational pension scheme a requirement, derived from Article 16 the Directive, to hold sufficient and appropriate assets to cover the scheme’s “technical provisions” - the amount required, on an actuarial calculation, to make provision for its liabilities. Regulation 3 identifies the assets and liabilities to be taken into account in determining whether this requirement (“the statutory funding objective”) is met. Regulation 4 makes provision in respect of the valuation of the assets and the determination of the amount of the liabilities and regulation 5 prescribes matters to be taken into account and principles to be followed in calculating a scheme’s technical provisions.

Article 202 of the Order requires the trustees or managers of a scheme to maintain a statement of their policy for securing that the statutory funding objective is met. Regulation 6 prescribes other matters to be covered in the statement. Articles 203 and 204 of the Order provide for actuarial valuations calculating a scheme’s technical provisions, actuarial reports at intervals between valuations, and for the calculation of technical provisions to be certified by the scheme actuary. Regulation 7 includes provision about the circumstances in which “out-of-cycle” valuations are required, the content of valuations and reports and the form of the actuary’s certification.

Article 205 of the Order and regulation 8 implement provisions in Article 16 of the Directive for schemes to adopt a recovery plan where a valuation indicates that the statutory funding objective was not met. Article 206 of the Order provides for trustees or managers to maintain a schedule of contributions payable towards a scheme. Regulation 9 imposes time limits in respect of the preparation and review of such schedules and regulation 10 requirements as to their content and certification. Regulation 11 requires trustees or managers to keep records of contributions made to a scheme. Regulation 12 sets out exceptions to the requirement in Article 207 of the Order that any failure to pay contributions due which is likely to be of material significance must be reported to the Pensions Regulator (“the Regulator”).

Under Article 208 of the Order trustees or managers are required to obtain the agreement of the employer contributing towards a scheme with regard to the calculation of technical provisions, the statement of funding principles, the recovery plan and the schedule of contributions. Regulation 13 imposes a time limit for this. Article 210 of the Order sets out powers relating to the funding of a scheme which are exercisable by the Regulator in particular circumstances. Regulation 14 provides that, where the contribution rate is set by someone other than the trustees or managers, such as the scheme actuary, the Regulator must take account of that person’s recommendations in determining whether to exercise any of these powers.

Regulation 15 requires scheme actuaries to take account of professional guidance approved for the purposes of these Regulations. Regulation 16 enables the trustees of certain schemes to modify the terms of the scheme where additional contributions are required in order to give effect to a recovery plan. Regulation 17 exempts certain schemes from Part IV of the Order; these are either schemes to which the Directive does not apply or schemes that may be exempted from the requirements of the Directive under Article 5 of the Directive because they are guaranteed statutory schemes or because they have fewer than 100 members. The schemes exempted include schemes in the course of winding up; where the winding up begins after the Regulations come into operation, regulation 18 makes the exemption conditional upon annual estimates of solvency. The remaining regulations give effect to Schedules.

Schedule 1 prescribes the form in which a scheme actuary is required to certify the calculation of technical provisions in respect of the scheme and its schedule of contributions. The terms in which the certification of a schedule of contributions is given, set out in Article 206(6) of the Order, are modified in particular circumstances by paragraphs 6 and 11 of Schedule 2. Schedule 2 contains other modifications of provisions of Part IV of the Order and provisions of these Regulations which apply in relation to particular kinds of scheme.

Schedule 3 to the Regulations makes consequential amendments to other secondary legislation. It also includes, in paragraphs 6 and 7, provisions which supplement the Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997 by requiring that scheme members and beneficiaries receive a summary funding statement following actuarial valuations and reports. The statement must include specified information relating to the funding of the scheme and, where applicable, information about its recovery plan, interventions by the Regulator and the payment of surplus funds to the employer.

Schedule 4 contains transitional provisions, which determine the period within which the trustees or managers of a scheme have to obtain the first actuarial valuation under the Order and to prepare the first schedule of contributions. It also contains savings, which preserve the application of provisions of the Pensions (Northern Ireland) Order 1995 (“the 1995 Order”) and regulations during the transitional period.

Article 64 (2), Articles contained in Part IV and Article 287(4) of the Order, are some of the enabling provisions under which these Regulations are made. The Pensions (2005 Order) (Commencement No. 1 and Consequential and Transitional Provisions) Order (Northern Ireland) 2005 ([S.R. 2005 No. 48 (C. 5)](https://www.legislation.gov.uk/nisr/2005/48)) provides for the coming into operation of Article 64(2) of the Order to be brought fully into operation on 6th April 2005. The Pensions (2005 Order) (Commencement No. 7) Order (Northern Ireland) 2005 ([S.R. 2005 No. 543 (C. 37)](https://www.legislation.gov.uk/nisr/2005/543)) provides for the coming into operation of Articles 200 to 203, 205 to 211 and 287(4) of the Order, for the purpose of authorising the making of regulations, on 6th December 2005, and for all other purposes, on 30th December 2005.

As these Regulations make, in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement for consultation under Article 117(1) of the 1995 Order does not apply by virtue of paragraph (2)(e) of that Article and the requirement for consultation under Article 289(1) of the Order does not apply by virtue of paragraph (2)(e) of that Article.

The transposition of Articles 15 and 16 of the Directive is detailed in the Transposition Note, a copy of which has been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of the Note are available from the Department for Social Development, Social Security Policy and Legislation Division, Level 1, James House, 2-4 Cromac Avenue, Gasworks Business Park, Ormeau Road, Belfast, BT7 2JA.

Footnotes

2

See Article 8(b) of S.R. 1999 No. 481

5

The definition of “pension credit rights” was inserted by paragraph 50(3) of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))

6

See section 1 of the Pensions Act 2004 (c. 35)

7

Article 41 was amended by paragraph 10 of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4 (N.I.)) and is amended by paragraph 46 of Schedule 10 to the Pensions (Northern Ireland) Order 2005

8

Article 75 was amended by Article 248 of the Pensions (Northern Ireland) Order 2005

9

Article 74(3)(c) was amended by Article 60 of S.I. 2002/1555

10

Article 49(9)(b) was inserted by Article 11(1) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))

14

Article 23 was substituted by Article 32(3) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))

16

The definition of “relevant benefits” was amended by paragraph 10(1) of Schedule 10 to the Finance Act 1999 (c. 16). Section 612(1) is repealed by Part 3 of Schedule 42 to the Finance Act 2004 (c. 12) with effect from 6th April 2006

17

2003 c. 1; section 393B is inserted by section 249(3) of the Finance Act 2004 with effect from 6th April 2006

18

Section 611A was inserted by paragraph 15 of Schedule 6 to the Finance Act 1989 (c. 26) and subsection (1) was substituted by paragraph 5 of Schedule 5 to the Finance Act 1999. The section is repealed by Part 3 of Schedule 42 to the Finance Act 2004 with effect from 6th April 2006

19

Section 615(6) was amended by paragraph 11 of Schedule 10 to the Finance Act 1999

20

Section 590 was amended by paragraph 3 of Schedule 6 to the Finance Act 1989

23

Article 74(3)(c) was amended by Article 60 of S.I. 2002/1555

24

Section 611 is repealed by Part 3 of Schedule 42 to the Finance Act 2004 (c. 12) with effect from 6th April 2006

25

S.R. 1996 No. 493; relevant amending regulations are S.R. 1997 No. 160 and S.R. 2002 No. 109

26

S.R. 1996 No. 619; relevant amending regulations are S.R. 1997 No. 160 and S.R. 2005 No. 171

27

Regulation 7(3) was amended by paragraph 11(4) of the Schedule to S.R. 1997 No. 160

28

Paragraphs (4) to (4L) were substituted for paragraphs (4) to (4B) by regulation 15(3) of S.R. 2005 No. 171

29

Paragraph (5) was amended by regulation 15(4) of S.R. 2005 No. 171

30

S.R. 1996 No. 621, to which there are amendments not relevant to these Regulations

31

S.R. 1997 No. 94; relevant amending regulations are S.R. 2000 No. 69, S.R. 2003 No. 256 and S.R. 2005 No. 421

32

The definition of “the 2000 Act” was inserted by regulation 11(2) of S.R. 2003 No. 256

33

S.R. 2000 No. 144; relevant amending regulations are S.R. 2000 No. 335 and S.R. 2005 No. 171

34

Paragraphs (3) to (3L) were substituted for paragraphs (3) to (3B) by regulation 16(3) of S.R. 2005 No. 171

35

Paragraph (4) was amended by regulation 16(4) of S.R. 2005 No. 171

36

Paragraph (5) was substituted by regulation 10(4) of S.R. 2000 No. 335 and amended by regulation 16(5) of S. R. 2005 No. 171

37

S.R. 2000 No. 145; relevant amending regulations are S.R. 2003 No. 256 and S.R. 2005 No. 171

38

The definition of “the 2000 Act” was inserted by regulation 15(2)(a)(i) of S.R. 2003 No. 256

39

Paragraphs (2) to (2L) were substituted for paragraphs (2) to (2B) by regulation 17(2) of S.R. 2005 No. 171

40

Paragraph (3) was amended by regulation 17(3) of S.R. 2005 No. 171

41

S.R. 2000 No. 146; relevant amending regulations are S.R. 2003 No. 256 and S.R. 2005 No. 171

42

The definition of “the 2000 Act” was inserted by regulation 16(2)(a)(i) of S.R. 2003 No. 256

43

Paragraphs (4) to (4M) were substituted for paragraphs (4) to (4B) by regulation 18(5) of S.R. 2005 No. 171

44

Paragraph (5) was amended by regulation 18(6) of S. R. 2005 No. 171

45

S.R. 2000 No. 262, to which there are amendments not relevant to these Regulations

46

S.R. 1996 No. 570; relevant amending regulations are S.R. 1997 Nos. 160 and 544

47

S.R. 1996 No. 493; relevant amending regulations are S.R. 1997 No. 160 and S.R. 2002 No. 109

49

S.R. 1997 No. 39, to which there are amendments not relevant to these Regulations

Editorial notes

53

Reg. 1 in operation at 30.12.2005, see reg. 1

54

Reg. 2 in operation at 30.12.2005, see reg. 1

55

Reg. 3 in operation at 30.12.2005, see reg. 1

56

Reg. 4 in operation at 30.12.2005, see reg. 1

57

Reg. 5 in operation at 30.12.2005, see reg. 1

58

Reg. 6 in operation at 30.12.2005, see reg. 1

59

Reg. 7 in operation at 30.12.2005, see reg. 1

60

Reg. 8 in operation at 30.12.2005, see reg. 1

61

Reg. 9 in operation at 30.12.2005, see reg. 1

62

Reg. 10 in operation at 30.12.2005, see reg. 1

63

Reg. 11 in operation at 30.12.2005, see reg. 1

64

Reg. 12 in operation at 30.12.2005, see reg. 1

65

Reg. 13 in operation at 30.12.2005, see reg. 1

66

Reg. 14 in operation at 30.12.2005, see reg. 1

67

Reg. 16 in operation at 30.12.2005, see reg. 1

68

Reg. 17 in operation at 30.12.2005, see reg. 1

69

Reg. 18 in operation at 30.12.2005, see reg. 1

70

Reg. 19 in operation at 30.12.2005, see reg. 1

71

Reg. 20 in operation at 30.12.2005, see reg. 1

72

Reg. 21 in operation at 30.12.2005, see reg. 1

73

Sch. 2 para. 1 in operation at 30.12.2005, see reg. 1

74

Sch. 2 para. 2 in operation at 30.12.2005, see reg. 1

75

Sch. 2 para. 4 in operation at 30.12.2005, see reg. 1

76

Sch. 2 para. 5 in operation at 30.12.2005, see reg. 1

77

Sch. 2 para. 7 in operation at 30.12.2005, see reg. 1

78

Sch. 2 para. 8 in operation at 30.12.2005, see reg. 1

79

Sch. 2 para. 9 in operation at 30.12.2005, see reg. 1

80

Sch. 2 para. 10 in operation at 30.12.2005, see reg. 1

81

Sch. 2 para. 11 in operation at 30.12.2005, see reg. 1

82

Sch. 3 para. 1 in operation at 30.12.2005, see reg. 1

83

Sch. 3 para. 2 in operation at 30.12.2005, see reg. 1

84

Sch. 3 para. 3 in operation at 30.12.2005, see reg. 1

85

Sch. 3 para. 5 in operation at 30.12.2005, see reg. 1

86

Sch. 3 para. 8 in operation at 30.12.2005, see reg. 1

87

Sch. 3 para. 9 in operation at 30.12.2005, see reg. 1

88

Sch. 3 para. 10 in operation at 30.12.2005, see reg. 1

89

Sch. 3 para. 11 in operation at 30.12.2005, see reg. 1

90

Sch. 4 para. 1 in operation at 30.12.2005, see reg. 1

91

Sch. 4 para. 2 in operation at 30.12.2005, see reg. 1

92

Sch. 4 para. 3 in operation at 30.12.2005, see reg. 1

93

Sch. 4 para. 4 in operation at 30.12.2005, see reg. 1

94

Sch. 4 para. 5 in operation at 30.12.2005, see reg. 1

95

Sch. 4 para. 6 in operation at 30.12.2005, see reg. 1

96

Sch. 4 para. 7 in operation at 30.12.2005, see reg. 1

97

Sch. 4 para. 8 in operation at 30.12.2005, see reg. 1

98

Sch. 4 para. 9 in operation at 30.12.2005, see reg. 1

99

Sch. 4 para. 10 in operation at 30.12.2005, see reg. 1

100

Sch. 4 para. 11 in operation at 30.12.2005, see reg. 1

101

Sch. 4 para. 12 in operation at 30.12.2005, see reg. 1

102

Sch. 4 para. 13 in operation at 30.12.2005, see reg. 1

103

Sch. 4 para. 14 in operation at 30.12.2005, see reg. 1

104

Sch. 4 para. 15 in operation at 30.12.2005, see reg. 1

105

Sch. 4 para. 16 in operation at 30.12.2005, see reg. 1

106

Sch. 4 para. 17 in operation at 30.12.2005, see reg. 1

107

Sch. 4 para. 18 in operation at 30.12.2005, see reg. 1

108

Sch. 4 para. 19 in operation at 30.12.2005, see reg. 1

109

Sch. 1 in operation at 30.12.2005, see reg. 1

110

Sch. 5 in operation at 30.12.2005, see reg. 1

Amendment of the Pension Sharing (Valuation) Regulations 2000

Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations

Amendment of the Pension Sharing (Pension Credit Benefit) Regulations

Amendment of the Stakeholder Pension Schemes Regulations

Amendment of the Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations

Employers in periods of grace

3A
  • (1) This paragraph applies where an employer is treated under regulation 6A(1) of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 (employment-cessation events: periods of grace) as if that employer employed at least one person who is an active member of a scheme.
  • (2) Where this paragraph applies, Part IV of the Order and these Regulations are modified so that references to “employer” include a reference to the employer referred to in sub-paragraph (1).
  • (3) This paragraph ceases to apply where the period of grace referred to in regulation 6A of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 in respect of the employer comes to an end in accordance with that regulation.

Period of grace followed by a deferred debt arrangement

3B

In a case where a period of grace is immediately followed by a deferred debt arrangement as the result of the trustees or managers of the scheme being satisfied that the conditions in regulation 6F(2)(b) and (3) of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 are met, the period of grace and the deferred debt arrangement are to be treated as one continuous period of time for the purposes of Part IV of the Order and these Regulations.

Employers in deferred debt arrangements

3C
  • (1) This paragraph applies where a deferred employer is treated under regulation 6F(4) of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 as if it employed at least one person who is an active member of a scheme.
  • (2) Where this paragraph applies, Part IV of the Order and these Regulations are modified so that references to “employer” include a reference to a deferred employer.
  • (3) This paragraph ceases to apply where the deferred debt arrangement referred to in regulation 6F of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 in respect of the deferred employer comes to an end in accordance with that regulation.
3D

For the purposes of paragraphs 3B and 3C, “deferred debt arrangement” and “deferred employer” have the meanings given in regulation 2 of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005.

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