The Occupational Pension Schemes (Contracting-out) (Amendment) Regulations (Northern Ireland) 2011

Made: 9th September 2011

Coming into operation: 1st October 2011

The Department for Social Development makes the following Regulations in exercise of the powers conferred by sections 8A(4) and (5), 177(2) to (4) and 178(1) of the Pension Schemes (Northern Ireland) Act 1993[^f00001] and now vested in it[^f00002].

Citation, commencement and interpretation

1

• (1) These Regulations may be cited as the Occupational Pension Schemes (Contracting-out) (Amendment) Regulations (Northern Ireland) 2011 and shall come into operation on 1st October 2011.

• (2) The Interpretation Act (Northern Ireland) 1954[^f00003] shall apply to these Regulations as it applies to an Act of the Assembly.

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations

2

• (1) The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996[^f00004] are amended in accordance with paragraphs (2) and (3).

• (2) In regulation 23 (requirements for meeting the statutory standard)—

• (a) for paragraph (a)[^f00005] substitute—

(a) must comply with any standards adopted or prepared, and from time to time revised, by the Board for Actuarial Standards[^f00006] which are relevant to the matters specified in section 8A(4) of the Act;

• (b) in paragraph (f)[^f00007] after “payment of a lump sum” insert “but may not have regard to any payment of a lump sum made as a result of the death of an earner”;

• (c) at the end of paragraph (f) omit “and”;

• (d) after paragraph (g) add—

(h) must not have regard to any discretionary benefits, and (i) must comply with the further requirements set out in Schedule 3.

• (3) After Schedule 2 (revocations) add Schedule 3 as set out in the Schedule to these Regulations.

Revocations

3

The following provisions are revoked—

• (a) paragraph 3(b) of the Schedule to the Occupational and Personal Pension Schemes (Prescribed Bodies) Regulations (Northern Ireland) 2007[^f00008];

• (b) paragraph 2 of the Schedule to the Pensions (2008 Act) (Actuarial Guidance) (Consequential Provisions) Order (Northern Ireland) 2008[^f00009].

SCHEDULE — Schedule to be added to the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

Signed

Sealed with the Official Seal of the Department for Social Development on 9th September 2011

Anne McCleary — A senior officer of the Department for Social Development

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations amend the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (“the 1996 Regulations”) to make provision in relation to salary related occupational pension schemes which meet the reference scheme test (“the test”). Persons can contract out of the state additional pension into such a scheme.

The Board for Actuarial Standards is withdrawing Guidance Note 28: Retirement Benefit Schemes – Adequacy of Benefits for Contracting-out (“GN28”) which contains detailed guidance for actuaries on the test. In order for an occupational pension scheme to meet the test, an actuary must be satisfied that the pension rights under the scheme are broadly equal to (or better than) the minimum rights referred to in the test. Actuaries are required by the 1996 Regulations to follow the guidance in GN28.

As a result of the withdrawal of GN28, these Regulations insert the guidance for actuaries into the 1996 Regulations.

Regulation 2 inserts some of the guidance into the 1996 Regulations. It also inserts a requirement for actuaries to comply with any relevant standards issued by the Board for Actuarial Standards. The Schedule inserts the majority of the guidance into the 1996 Regulations.

Regulation 3 makes consequential revocations.

Footnotes

[^f00001]: 1993 c. 49; section 8A was inserted by Article 133(5) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I.22)) and subsection (5) was amended by Part 8 of Schedule 6 to the Pensions Act (Northern Ireland) 2008 (c. 1 (N.I.)); section 178(1) was amended by Parts III and IV of Schedule 5 to the Pensions (Northern Ireland) Order 1995

[^f00002]: See Article 8(b) of S.R. 1999 No. 481

[^f00003]: 1954 c. 33 (N.I.)

[^f00004]: S.R. 1996 No. 493; relevant amending provisions are S.R. 2002 No. 109, S.R. 2007 No. 64 and S.R. 2008 No. 365

[^f00006]: The definition of “the Board for Actuarial Standards” was inserted by paragraph 3(a) of the Schedule to S.R. 2007 No. 64

[^f00008]: S.R. 2007 No. 64

[^f00009]: S.R. 2008 No. 365

[^f00010]: Section 8B was inserted by Article 133(5) of the Pensions (Northern Ireland) Order 1995 and subsection (5) was amended by paragraph 33(a) of Schedule 1 to the Pensions Act (Northern Ireland) 2008

[^f00011]: The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 11); see also section 50(1) of that Act in relation to the construction of references to the Commissioners of Inland Revenue in other enactments