Legalize / United Kingdom / Public General Act

Pension Schemes (Northern Ireland) Act 1993

Type Public General Act

Publication 1993-11-05

Last updated 2025-04-07

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) Except in such cases as may be prescribed, the prescribed person shall not, in making or abstaining from making elections under that section, discriminate between different earners on any grounds other than their respective lengths of relevant service.

(3) In subsection (2) “relevant service” means service in contracted-out employment by reference to the scheme, together with any service in contracted-out employment which in relation to service in that employment is linked qualifying service.

(4) If the Inland Revenue consider that the prescribed person is contravening subsection (2), they may cancel any contracting-out certificate held by the earner’s employer in respect of the scheme in question.

(5) In this section “prescribed” means prescribed by regulations made by the Secretary of State.

Amount of premiums payable under s. 51

54

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

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

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

(4) Subject to subsection (4A), the amount of the contributions equivalent premium shall be equal to the sum of the following amounts—

(a) the amount of every reduction made under section 37 (as from time to time in force) in the amount of Class 1 contributions payable in respect of the earner’s employment in employment which was contracted-out by reference to the scheme; and

(b) the total amount by which the reductions falling within paragraph (a) would have been larger if the amount of the contributions falling to be reduced had in each case been at least equal to the amount of the reduction of those contributions provided for by section 37.

(4A) The amounts brought into account in accordance with subsection (4)(b) shall not include any amount which, by virtue of regulations made under section 37(1D) so as to avoid the payment of trivial or fractional amounts, is an amount that was not payable by the Inland Revenue to the secondary contributor.

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

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) Section 52(4) applies for the purposes of subsection (4) as it applies for the purposes of section 51(2).

Alternative basis for revaluation of earnings factors for calculation of certain premiums

55

Effect of payment of premiums on rights

56

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

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

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

(4) Payment of a contributions equivalent premium in the circumstances mentioned in section 51(2A)(a) and (b), (d) and (e) shall extinguish the earner’s accrued rights to guaranteed minimum pensions under the relevant scheme or (in relation to service on or after the principal appointed day( rights to pensions under the scheme so far as attributable to the amount of the premium.

(5) Payment of a contributions equivalent premium in the circumstances mentioned in section 51(2A)(c) shall extinguish any such accrued rights in respect of the earner’s widow, widower or surviving civil partner .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deduction of contributions equivalent premium from refund of scheme contributions

57

(1) This section applies where—

(a) an earner’s service in contracted-out employment ceases or his employment ceases to be contracted-out employment, and

(b) he (or, by virtue of a connection with him, any other person) is entitled to a refund of any payments made by or in respect of him towards the provision of benefits under the scheme by reference to which that employment was contracted-out; and

(2) Where this section applies, then, subject to the following provisions of this section, the person by whom the premium falls to be paid shall be entitled on paying it to recover an amount equal to so much of the premium as is attributable to any actual reductions of primary Class 1 contributions (and on paying any part of it to recover a proportionate part of that amount) from the person liable for the refund.

(3) The amount recoverable under this section shall not exceed the amount of the refund or so much of it as has not been made.

(4) Where the period taken into account in arriving at the amount mentioned in subsection (2) does not coincide with that in respect of which the refund is to be made, the sum recoverable under this section shall be determined by reference to so much of that amount and of the refund as are referable to the same period.

(5) Where the refund—

(a) is made in respect of more than one period of service, and one or more of those periods is a period of previous linked qualifying service; and

(b) includes any amount paid under a contracted-out scheme in relation to that service on or in connection with a transfer of accrued rights to another scheme,

the amount which may be recovered under this section shall be increased by such amount as may be prescribed.

(6) Where the person liable for the premium is himself liable for the refund, he shall be entitled to retain out of the refund the amount which he could recover under this section from another person liable for the refund.

(7) The amount of the refund shall be reduced by the amount recovered or retained under this section; and provision shall be made by regulations for requiring the making of refunds to be delayed for the purpose of enabling any right of recovery or retainer conferred by this section to be exercised, notwithstanding anything in any enactment relating to the making of the refund.

(8) Where—

(a) an earner’s service in contracted-out employment ceases or his employment ceases to be contracted-out employment,

(b) he (or, by virtue of a connection with him, any other person) is entitled to a refund of any payments made by or in respect of him under the scheme by reference to which that employment was contracted-out in relation to any previous contracted-out employment of his, being payments towards the provision of benefits under that scheme;

(d) the period taken into account in arriving at the amount mentioned in subsection (2) includes the period of the previous contracted-out employment,

then the person liable for that premium shall have the like right of recovery from that refund (so far as the premium is not recoverable or retainable out of a refund in respect of a later employment) as a person has under this section where the refund relates to service in the employment on the cessation of which the premium falls to be paid (and subsection (7) shall apply accordingly).

(9) This section shall apply in relation to such a refund as is referred to in subsection (1)(b) which becomes payable after the cessation of an earner’s service in contracted-out employment as it applies to such a refund becoming payable on the cessation of an earner’s service in such employment.

(9A) Where under section 97AH the trustees or managers of an occupational pension scheme may pay a contribution refund to a member of the scheme, the member is to be treated for the purposes of this section as being entitled to the contribution refund.

(10) Where the earner (or, by virtue of a connection with him, any other person) becomes entitled to any payment in lieu of benefit, this section shall apply in relation to the payment as if it were such a refund as is referred to in subsection (1)(b).

(11) For the purposes of subsection (10), a payment in lieu of benefit is any payment falling to be made to or for the benefit of, or in respect of, a person by virtue of his being or having been a member of an occupational pension scheme, being a payment which either—

(a) is made or to be made otherwise than out of the resources of the scheme; or

(b) is made or to be made out of those resources but by way of distribution on a winding up; or

(12) In this section “prescribed” means prescribed by regulations made by the Secretary of State.

No recovery of state scheme premiums from earners, etc

58

(1) Notwithstanding any contract to the contrary, a person shall not be entitled—

(a) to recover any part of a contributions equivalent premium from any earner in respect of whom it is payable; or

(b) except in accordance with section 57, to recover or retain any part of such a premium out of any money payable to or for the benefit of the earner or any other person.

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

Further provisions concerning calculations relating to premiums

59

(1) The following amounts shall be certified by the Inland Revenue—

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

(b) the sum of the amounts specified in section 54(4);

(d) the amount mentioned in section 57(2).

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

(3) If the Inland Revenue—

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

(b) are satisfied that records of earnings relevant for determining the amount mentioned in section 54(4) have not been maintained or retained or are otherwise unobtainable,

then the Inland Revenue may for that purpose—

(i) compute, in such manner as they think fit, an amount which shall be regarded as the amount of those earnings; or

(ii) take their amount to be such sum as they may specify in the particular case,

. . ..

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

(5) For the purposes of subsection (1) the Inland Revenue may make such adjustments as they think necessary for avoiding fractional amounts.

Actuarial tables for purposes of calculations relating to premiums

60

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Inclusion of former and future earners for some purposes of this Chapter

61

Power to apply certain provisions to widowers

62

Non-payment of state scheme premiums

63

(1) If a person fails to pay any contributions equivalent premium which is payable by him at or within the time prescribed for the purpose, he shall be liable on summary conviction to a fine of not more than level 3 on the standard scale.

(2) Where—

(a) a person is convicted of the offence under subsection (1) of failing to pay a premium, and

(b) the premium remains unpaid at the date of the conviction,

he shall be liable to pay to the Inland Revenue a sum equal to the amount which he failed to pay.

(3) Subject to subsection (4), where a person is convicted of an offence mentioned in subsection (2), evidence may be given of any previous failure by him to pay contributions equivalent premiums within the time prescribed for the purpose; and in that subsection “the conviction” and “the offence” mean respectively the conviction referred to in this subsection and the offence of which the person is convicted.

(4) Such evidence may be given only if notice of intention to give it is served with the summons or warrant on which the person appeared before the court which convicted him.

Unpaid premiums: supplementary

64

(1) Where a person charged with an offence to which section 63(2) applies is convicted of that offence in his absence under Article 24(2) of the Magistrates’ Courts (Northern Ireland) Order 1981, then if—

(a) it is proved to the satisfaction of the court, on oath or by affidavit or in the manner prescribed by magistrates’ courts rules, that notice under section 63(4) has been duly served specifying the other premiums in respect of which the complainant intends to give evidence; and

(b) the clerk of petty sessions has received a statement in writing purporting to be made by the accused or by a solicitor acting on his behalf to the effect that if the accused is convicted in his absence of the offence charged he desires to admit failing to pay the other premiums so specified or any of them,

section 63(3) and (4) shall have effect as if the evidence had been given and the failure so admitted had been proved, and the court shall proceed accordingly.

(2) Where—

(a) a person is convicted of an offence to which section 63(2) applies; and

(b) an order is made under the Probation Act (Northern Ireland) 1950 placing the offender on probation or discharging him absolutely or conditionally,

subsection (1) and section 63(2) to (4) shall apply as if it were a conviction for all purposes.

(3) Any sum which a person is liable to pay under subsection (1) or section 63(2) to (4) shall be recoverable from him as a penalty.

(4) contributions equivalent premiums recovered by the Inland Revenue under those provisions shall be treated for all purposes as premiums paid to the Inland Revenue in respect of the person in respect of whom they were originally payable.

Part IV — Protection for Early Leavers

Chapter I — Preservation of Benefit Under Occupational Schemes

Scope of Chapter I: the preservation requirements

65

(1) This Chapter has effect in relation to the preservation of benefit under occupational pension schemes to which it applies.

(2) In this Act “the preservation requirements” means the requirements specified in or under sections 67 to 78.

(3) This Chapter applies to any occupational pension scheme whose resources are derived in whole or in part from—

(a) payments made or to be made by one or more employers of earners to whom the scheme applies, being payments either—

(i) under an actual or contingent legal obligation; or

(ii) in the exercise of a power conferred, or the discharge of a duty imposed, on a Minister of the Crown, government department or any other person, being a power or duty which extends to the disbursement or allocation of public money; or

(b) such other payments by the earner or his employer, or both, as may be prescribed for different categories of scheme.

Interpretation (Part IV)

66

(1) In this Chapter—

“scheme” means an occupational pension scheme to which this Chapter applies;

“relevant employment”, in relation to a scheme, means any employment to which the scheme applies;

“long service benefit”, in relation to a scheme, means the benefits which will be payable under the scheme, in accordance with legal obligation, to or in respect of a member of the scheme on the assumption—that he remains in relevant employment, andthat he continues to render service which qualifies him for benefits,until he attains normal pension age; and in this definition “benefits” means—retirement benefit for the member himself at normal pension age, orbenefit for the member’s wife, husband, civil partner, widow, widower or surviving civil partner, or dependants, or others, on his attaining that age or his later death, orboth such descriptions of benefit.

(2) In this Act “pensionable service”, in relation to a scheme and a member of it, means, subject to subsection (3), service in relevant employment which qualifies the member (on the assumption that it continues for the appropriate period) for long service benefit under the scheme.

(3) There shall be taken into account as pensionable service only actual service, that is to say—

(a) service notionally attributable for any purposes of the scheme is not to be regarded as pensionable service; and

(b) no account is to be taken of scheme rules by which a period of service can be treated for any purpose as being longer or shorter than it actually is.

Basic principle as to short service benefit

67

(1) A scheme must make such provision that where a member’s pensionable service is terminated before normal pension age and—

(a) he has at least 2 years’ qualifying service,

(aa) he has at least 30 days' qualifying service and, if he were entitled to benefit because of this paragraph, all of it would necessarily be money purchase benefit, or

(b) a transfer payment in respect of his rights under a personal pension scheme has been made to the scheme,

he is entitled to benefit consisting of or comprising benefit of any description which would have been payable under the scheme as long service benefit, whether for himself or others, and calculated in accordance with this Chapter.

(2) The benefit to which a member is entitled under subsection (1) is referred to in this Act as “short service benefit”.

(3) Subject to subsections (4) and (5A), short service benefit must be made payable as from an age which is no greater than—

(a) the age of 65, or

(b) if in the member's case normal pension age is greater than 65, normal pension age.

(4) Short service benefit payable on or in respect of the member’s death after normal pension age must be made payable as from his death or within such time after it as long service benefit payable on or in respect of his death would be payable.

(5) In applying subsections (3) and (4), no regard is to be had to the operation of any scheme rule, taking effect at any time after termination of the member’s pensionable service, as to what is normal pension age under the scheme.

(5A) Subsection (3) does not apply in relation to a scheme under section 1 of the Public Service Pensions Act (Northern Ireland) 2014.

(6) A scheme must not provide for payment of short service benefit in the form of a lump sum at any time before normal pension age, except in such circumstances as may be prescribed.

(7) In subsection (1) “2 years’ qualifying service” means 2 years (whether a single period of that duration or two or more periods, continuous or discontinuous, totalling 2 years) in which the member was at all times employed either—

(a) in pensionable service under the scheme; or

(b) in service in employment which was contracted-out by reference to the scheme; or

(8) For the purposes of subsection (7), no regard shall be had to whether or not the service was of the same description in the whole of the 2 years.

(9) A period of service previously terminated is not to count towards the 2 years’ qualifying service unless it counts towards qualification for long service benefit, and need then count only to the same extent and in the same way.

(10) Subsections (7) to (9) apply, with the substitution for references to 2 years of references to 30 days, for determining whether a person has at least 30 days' qualifying service for the purposes of subsection (1).

(11) Subsection (1)(aa) does not apply in relation to a person's membership of a scheme if any period of relevant service began before the day on which section35 of the Pensions Act (Northern Ireland) 2015 came into operation (whether or not it also ended before that date).

No discrimination between short service and long service beneficiaries

68

(1) A scheme must not contain any rule which results, or can result, in a member being treated less favourably for any purpose relating to short service benefit than he is, or is entitled to be, treated for the corresponding purpose relating to long service benefit.

(2) Subsection (1) does not apply to any rule in its application to members whose pensionable service terminated before the rule came into force, unless the rule—

(a) was made after the termination of a member’s pensionable service; and

(b) results, or is capable of resulting, in any treatment less favourable for him than that to which he would have been entitled but for the rule.

(3) Subsection (1) does not apply to a rule which merely confers discretion on the scheme’s trustees or managers, or others, so long as it is not a rule requiring the discretion to be exercised in any discriminatory manner against members in respect of their short service benefit.

(4) This section is subject to subsections (3) and (6) of section 67 (age at which short service benefit is to be payable).

Form of short service benefit and its alternatives

69

(1) Subject to subsection (2) and section 77, a member’s short service benefit must be—

(a) payable directly out of the resources of the scheme; or

(b) assured to him by such means as may be prescribed.

(2) Subject to subsections (3) to (5), a scheme may, instead of providing short service benefit, provide—

(a) for the member’s accrued rights (including any transfer credits allowed under the scheme)—

(i) to be transferred to another occupational pension scheme with a view to acquiring transfer credits for the member under the other scheme, or

(ii) to be transferred to a personal pension scheme . . . with a view to acquiring rights for the member under the rules of the scheme . . .; or

(b) for such alternatives to short service benefit as may be prescribed.

(3) The option conferred by subsection (2)(a) is additional to any obligation imposed by Chapter 1 of Part 4ZA .

(4) The alternatives specified in subsection (2)(a) and (b) may only be by way of complete or partial substitute for short service benefit—

(a) if the member consents; or

(b) in such other cases as may be prescribed.

(5) An alternative prescribed under subsection (2)(b) may only include payment by way of return of contributions—

(a) if they relate to a period of service before 6th April 1975; or

(b) if there has been such a payment relating to a period of service before that date and the contributions relate to a period of service of less than 5 years after that date.

Computation of short service benefit

70

(1) Subject to the provisions of this section, a scheme must provide for short service benefit to be computed on the same basis as long service benefit.

(2) For that purpose, no account is to be taken of any rule making it (directly or indirectly) a condition of entitlement to benefit that pensionable service shall have been of any minimum duration.

(3) Subsection (1) does not apply to so much of any benefit as accrues at a higher rate, or otherwise more favourably, in the case—

(a) of members with a period of pensionable service of some specified minimum length, or

(b) of members remaining in pensionable service up to some specified minimum age.

(4) Subsection (1) does not apply to so much of any benefit as is of an amount or at a rate unrelated to length of pensionable service or to the number or amount of contributions paid by or for the member.

(5) Regulations may provide that subsection (1) shall not apply to any category of schemes or members, or description of benefit.

(6) So far as any short service benefit is not required to be computed in accordance with subsection (1), it must be computed on the basis of uniform accrual, so that at the time when pensionable service is terminated, it bears the same proportion to long service benefit as the period of that service bears to the period from the beginning of that service to the time when the member would attain normal pension age or such lower age as may be prescribed.

(7) Where long service benefit is related to a member’s earnings at, or in a specified period before, the time when he attains normal pension age, short service benefit must be related, in a corresponding manner, to his earnings at, or in the same period before, the time when his pensionable service is terminated.

(8) A scheme must comply with any regulations relating to the basis of computation of short service benefit, including regulations providing for the avoidance of fractional amounts and otherwise to facilitate computation.

Credits

71

(1) In this section—

“supplementary credits”, in relation to a scheme and a member’s entitlement to its benefits, means any increase of benefit or additional benefit to which the member may become entitled—in consequence of any provision made by or under the scheme after he becomes a member of it (to the extent that it applies to any previous pensionable service of his); orby reference to previous service of his (whether or not pensionable service); orin such other circumstances as may be prescribed,including under paragraph (b) any transfer credits;

“purchased credits” means supplementary credits for which, under the rules of the scheme, a member may or must make a payment in whole or in part (whether by means of additional contributions, or of deduction from benefit, or otherwise, and whether separately for each credit or by one or more payments for one or more credits);

“bonus credits” means supplementary credits other than purchased credits or transfer credits.

(2) Subject to subsections (3) to (7), if a scheme provides for long service benefit to include supplementary credits, it must—

(a) provide for such credits to be included in short service benefit, and

(b) provide for all credits to be so included.

(3) Where purchased credits have not been paid for in full at or before termination of pensionable service, the short service benefit must include the appropriate proportion of the credits.

(4) In subsection (3) “the appropriate proportion of the credits” means—

(a) if they were to be paid for by a fixed amount, the same proportion as the amount paid bears to the full amount payable; and

(b) otherwise, the same proportion as the period between the time when the first payment became due and the termination of the member’s pensionable service bears to the whole period over which payment was to be made.

(5) If the benefit includes bonus credits, or credits for which payment is to be made by deduction from that or another benefit, the credits to be included in the benefit and (where applicable) the amount of the deduction must be computed on the assumption—

(a) that the credits accrue in full only to a member remaining in pensionable service until normal pension age; and

(b) that the amount of any such credit, and also of any relevant deduction, accrues at a uniform rate from the time when the credit was awarded up to the time of his attaining that age.

(6) Where any such deduction is a percentage of benefit, the percentage must be the same for short service as for long service benefit.

(7) A scheme must comply with any regulations made with respect to the manner in which supplementary credits are to be included in short service benefit, including regulations providing for the avoidance of fractional amounts and otherwise to facilitate computation.

Pension increases

72

(1) A scheme which by its rules provides for increases of long service benefit from time to time (whether by way of upwards revaluation or otherwise) must provide for corresponding increases of short service benefit in the case of members whose pensionable service terminates at any time after the coming into force of any such rule.

(2) Where the provision for increasing long service benefit involves the exercise of a discretion, a corresponding discretion must be conferred in relation to short service benefit.

(3) If an increase of long service benefit is to take effect at a specified time after termination of service, the corresponding increase of short service benefit must take effect at the same time after the time when short service benefit becomes payable.

(4) Where provision is made for increase of long service benefit otherwise than at a fixed rate, short service benefit may nevertheless be subject to increase at a fixed rate, if the rate is at least 3 per cent. a year compound.

Assignment, surrender and commutation of benefit

73

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Forfeiture, etc

74

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Charges, liens and set-offs

75

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Power to modify ss. 73 to 75 as respects alternative benefits

76

Discharge of liability where short service or alternative benefits secured by insurance policies or annuity contracts

77

A transaction to which section 15 applies discharges the trustees or managers of an occupational pension scheme from their liability to provide for or in respect of any person short service benefit or any alternative to short service benefit—

(a) if it is carried out not earlier than the time when that person’s pensionable service terminates; and

(b) if and to the extent that it results in short service benefit or any alternative to short service benefit for or in respect of that person being appropriately secured (within the meaning of that section); and

Supplementary regulations

78

(1) Regulations may provide that a scheme is not to be treated as conforming with the preservation requirements unless it contains express rules to the effect (but not necessarily in the words) of any specified provision contained in sections 67 to 72.

(2) Regulations may make provision as to the circumstances in which, for the purposes of sections 66 to 72—

(a) a period of a person’s service in two or more different employments is to be treated as a period of service in one or more of those employments; or

(b) a person’s service in any employment is to be treated as terminated or not terminated.

Chapter II — Revaluation of Accrued Benefits (Excluding Guaranteed Minimum Pensions)

Scope of Chapter II

79

(1) This Chapter applies for the purpose of revaluing—

(a) relevant benefits payable to or in respect of a member of an occupational pension scheme where—

(i) his pensionable service ends on or after 1st January 1986;

(ii) on the date on which his pensionable service ends (in this Chapter referred to as “the termination date”) he has accrued rights to benefit under the scheme;

(iii) the period beginning with the day after the termination date and ending with the date on which he attains normal pension age (in this Chapter referred to as “the pre-pension period”) is at least 365 days; and

(iv) in the case of benefit payable to any other person in respect of the member, the member dies after attaining normal pension age; and

(b) relevant benefits payable to or in respect of a member of a personal pension scheme—

(i) in respect of whom contributions to the scheme have ceased to be paid; and

(ii) who has accrued rights to benefit under the scheme.

(1A) The following are relevant benefits for the purposes of subsection (1)—

(a) any benefits payable otherwise than by virtue of rights which are attributable (directly or indirectly) to a pension credit, and

(b) in the case of a salary related occupational pension scheme, any benefits payable by virtue of such rights, to the extent that the rights involve the member being credited by the scheme with notional pensionable service.

(1B) The reference in subsection (1)(a)(iii) to normal pension age is to be read, in relation to a person who is an active or deferred member of a scheme under section 1 or section 32(7) of the Public Service Pensions Act (Northern Ireland) 2014, as—

(a) the member's normal pension age within the meaning of that Act, or

(b) the member's deferred pension age within the meaning of that Act, if that is later.

In this subsection “active member” and “deferred member”, in relation to such a scheme, have the meanings given by Article 121(1) of the Pensions (Northern Ireland) Order 1995.

(2) In calculating 365 days for the purpose of subsection (1)(a)(iii), any day which is 29th February shall be disregarded.

(3) In subsection (1)(b)—

(a) the reference to a personal pension scheme does not include a scheme which is comprised in an annuity contract made before 4th January 1988; and

(b) the reference to contributions includes any minimum contributions.

(4) For the purposes of this section, an occupational pension scheme is salary related if—

(a) it is not a money purchase scheme, and

(b) it does not fall within a prescribed class.

Basis of revaluation

80

(1) Subject to subsections (2) to (3B), in the case of such benefits as are mentioned in section 79(1)(a), any pension or other retirement benefit payable under the scheme in question to the member and any pension or other benefit payable under it to any other person in respect of him, is to be revalued by the final salary method.

(2) If—

(a) any such benefit is an average salary benefit or flat rate benefit; and

(b) it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue the benefit by the average salary method or, as the case may be, the flat rate method,

then the benefit shall be revalued using that method.

(3) If any benefit such as is mentioned in paragraph (a) of section 79(1) is a money purchase benefit other than a collective money purchase benefit, and in the case of such benefit as is mentioned in paragraph (b) of that section, the benefit shall be revalued using the money purchase method.

(3A) If—

(a) any such benefit as is mentioned in section 79(1)(a) is a cash balance benefit in respect of which the available sum is not calculated by reference to final salary;

(b) the benefit is attributable to periods of pensionable service falling on or after the day on which section 27 of the Pensions Act (Northern Ireland) 2012 (definition of money purchase benefits) comes into operation; and

(c) it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue the benefit by the cash balance method,

then the benefit shall be revalued using that method.

(3AA) If any such benefit as is mentioned in section 79(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.

(3B) Where a cash balance benefit in respect of which the available sum is not calculated by reference to final salary—

(a) is attributable to periods of pensionable service falling partly before and partly on or after the day on which section 27 of the Pensions Act (Northern Ireland) 2012 comes into operation; and

(b) it appears to the trustees or managers of the scheme under which it is payable that it is appropriate to revalue so much of the benefit as is attributable to the member’s pensionable service falling on or after that day by the cash balance method,

then so much of the benefit as is attributable to the member’s pensionable service falling on or after that day shall be revalued using that method.

(4) In this section—

“average salary benefit” means benefit 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 benefit is based;

“cash balance benefit” has the meaning given by regulation 2 of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014;

“final salary”, in relation to a member to or in respect of whom benefits under a pension scheme are payable, means the member’s pensionable earnings, or highest, average or representative pensionable earnings, in a specified period ending at, or defined by reference to, the time when the member’s pensionable service in relation to that scheme ends;

“flat rate benefit” means any benefit the rate or amount of which is calculated by reference solely to the member’s length of service;

“average salary method”, “cash balance method”, “final salary method”, “flat rate method” and “money purchase method” have the meanings given in Schedule 2.

“pensionable earnings”, in relation to a member of a pension scheme, means earnings by reference to which benefits under the scheme are calculated.

(5) The fact that a scheme provides for the amount of the pension or other benefit for a member or for any other person in respect of him to be increased during the pre-pension period—

(a) by the percentages specified during that period under section 132 of the Social Security Administration (Northern Ireland) Act 1992; . . . or

(b) under any arrangement which maintains the value of the pension or other benefit by reference to the rise in the general level of prices during that period,

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

does not in itself result in conflict with this section, if the increase falls to be determined by reference to an amount from which the guaranteed minimum for a member or a member’s widow, widower , surviving same sex spouse or surviving civil partner has not been deducted.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Revaluation not to apply to substituted benefit

81

Nothing in this Chapter is to be construed as requiring the revaluation of any pension or other benefit provided by virtue of section 69(2)(b) or 97D(2)(b) by way of complete substitute for another pension or benefit.

Supplementary provisions

82

(1) In making any calculation for the purposes of this Chapter in relation to any occupational pension scheme—

(a) any commutation, forfeiture or surrender of,

(b) any charge or lien on, and

the whole or part of a pension shall be disregarded.

(2) The same money may not be treated as providing both the increase in benefit required by this Chapter and the benefit required by Chapter III.

Chapter III — Protection of Increases in Guaranteed Minimum Pensions (“Anti-franking”)

General protection principle

83

(1) This subsection applies where—

(a) there is an interval between—

(i) the date on which an earner ceases to be in employment which is contracted-out by reference to an occupational pension scheme that satisfies the requirements of section 5(2) (“the cessation date”); and

(ii) the date on which his guaranteed minimum pension under that scheme commences (“the commencement of payment date”);

(b) the relevant sum exceeds his guaranteed minimum on the day after the cessation date; and

(c) on the commencement of payment date or at any time after it his guaranteed minimum pension under the scheme exceeds the amount of his guaranteed minimum under it on the day after the cessation date.

(2) This subsection applies where—

(a) there is an interval between the earner’s cessation date and whichever of the following is the earlier—

(i) the date of his death; or

(ii) his commencement of payment date; and

(b) the relevant sum exceeds one half of the earner’s guaranteed minimum on the day after the cessation date; and

(c) at any time when a pension under the occupational pension scheme is required to be paid to the earner’s widow, widower or surviving civil partner, the widow's, widower’s or surviving civil partner’s (as the case may be) guaranteed minimum pension under the scheme exceeds one half of the earner’s guaranteed minimum on the day after the cessation date.

(3) Where subsection (1) or (2) applies, the weekly rate of the pension payable to the member at any time when that pension is required to be paid or, as the case may be, payable to the widow, widower or surviving civil partner at any such time as is mentioned in subsection (2)(c) shall be an amount not less—

(a) in a case where by virtue of section 69(2)(b) a pension is provided by way of complete substitute for short service benefit or, as the case may be, for widow's, widower’s or surviving civil partner's pension, than the weekly rate of that pension; and

(b) in any other case, than the relevant aggregate.

(4) In subsection (3) “the relevant aggregate” means the aggregate of the following—

(a) the relevant sum;

(b) the excess mentioned in subsection (1)(c) or, as the case may be, subsection (2)(c);

(d) where the scheme provides that part of the earner’s or, as the case may be, the widow's, widower’s or surviving civil partner's pension shall accrue after the cessation date by reason of the earner’s employment after that date, the later earnings addition.

(5) To the extent that amounts attributable to transfer credits have accrued by reason of any transfer before 1st January 1985, they are to be disregarded for the purposes of subsections (1)(c), (2)(c) and (4)(b).

(6) Nothing in this section shall be construed as entitling an earner who has not reached normal pension age to any portion of a pension under a scheme to which he would not otherwise be entitled.

(7) This section does not apply to a pension to which a person is entitled in respect of employment if—

(a) the earner left the employment or left it for the last time before 1st January 1985; or

(b) the employment ceased, or ceased for the last time, to be contracted-out in relation to him before that date.

The relevant sum

84

(1) For the purposes of this Chapter “the relevant sum” means—

(a) in a case where subsection (1) of section 83 applies—

(i) if the earner reaches normal pension age on or before the cessation date, an amount equal to the weekly rate of his pension on the day after the cessation date; and

(ii) if he reaches normal pension age after the cessation date, an amount equal to the weekly rate of any short service benefit which has accrued to him on the cessation date or, where no such benefit has then accrued, any other benefit to which this sub-paragraph applies and which has then accrued to him; and

(b) in a case where subsection (2) of that section applies, an amount equal to the weekly rate at which, on the prescribed assumptions, a pension would have begun to be paid to the widow, widower or surviving civil partner if that person had satisfied the conditions for entitlement to a pension which are specified in the scheme.

(2) Paragraph (a) of subsection (1) has effect subject to subsection (5) and to sections 83(5) and 87(1), and paragraph (b) of subsection (1) has effect subject to section 83(5).

(3) The benefit other than short service benefit to which subsection (1)(a)(ii) applies is benefit—

(a) which would have been provided as either the whole or part of the earner’s short service benefit; or

(b) of which the earner’s short service benefit would have formed part,

if section 67(1)(a) had effect with the substitution of a reference to the service which the earner had on the cessation date for the reference to 2 years’ qualifying service.

(4) Any such benefit is only to be included in the relevant sum to the extent that it does not exceed the amount which the scheme would have had to provide as short service benefit if section 67(1) had effect as mentioned in subsection (3).

(5) If the payment of any part of the earner’s pension is postponed beyond the cessation date, the relevant sum is an amount equal to what would have been the weekly rate of his pension on the day after the cessation date if there had been no such postponement.

The appropriate addition

85

(1) For the purposes of this Chapter “appropriate addition” means—

(a) where a scheme provides that part of an earner’s or, as the case may be, a widow's, widower’s or surviving civil partner's pension shall accrue after the cessation date by reason of the earner’s employment after that date, an amount equal to the part which has so accrued; and

(b) where a scheme provides that an earner’s or, as the case may be, a widow's, widower’s or surviving civil partner's pension which has accrued before that date shall be enhanced after that date if payment of the earner’s pension is postponed, the amount by which the unguaranteed element of the pension has been enhanced by reason of the postponement.

(2) For the purposes of subsection (1)(b) the unguaranteed element of a pension is—

(a) in the case of an earner’s pension, the excess of the pension on the day after the cessation date over the earner’s guaranteed minimum on that day; and

(b) in the case of the widow's, widower’s or surviving civil partner's pension, the excess of that pension on that day over one half of the earner’s guaranteed minimum on that day.

The later earnings addition

86

(1) For the purposes of this Chapter “the later earnings addition” means the amount (if any) by which the assumed later unguaranteed element exceeds the unguaranteed element.

(2) In subsection (1)—

(a) “the unguaranteed element” means the amount by which the relevant sum exceeds the earner’s guaranteed minimum on the day after his cessation date or, in the case of a widow's, widower’s or surviving civil partner's pension, one half of that minimum; and

(b) “the assumed later unguaranteed element” means the amount by which the relevant sum would exceed the earner’s guaranteed minimum (or, in the case of a widow's, widower’s or surviving civil partner's pension, one half of that minimum) on the assumptions mentioned in subsection (3).

(3) The assumptions mentioned in subsection (2) are—

(a) that the relevant sum were calculated on the basis that the weekly rate of the pension or benefit which determines that sum had been calculated by reference to the level of earnings by reference to which that rate would have been calculated if the earner’s cessation date had fallen on the earlier of—

(i) the earner’s commencement of payment date, or

(ii) the date on which the earner ceased to be in pensionable service under the scheme; and

(b) that the earner’s guaranteed minimum were such sum as bears the same proportion to the assumed later unguaranteed element as the guaranteed minimum mentioned in subsection (2)(a) bears to the unguaranteed element.

Special provision where employment continues after it ceases to be contracted-out by reference to scheme

87

(1) If—

(a) an earner’s employment ceases to be contracted-out by reference to an occupational pension scheme but the scheme continues to apply to it; or

(b) an earner transfers from employment which is contracted-out by reference to an occupational pension scheme to employment to which the scheme applies but which is not contracted-out by reference to it,

the amount of any short service or other benefit which has accrued to the earner shall be computed for the purposes of section 84(1)(a)(ii) as it would be computed if he had ceased on the cessation date to be in employment to which the scheme applies.

(2) If—

(a) a benefit under a scheme is conditional on an earner attaining a particular age or having a particular length of service; and

(b) one of the events mentioned in subsection (1) occurs before he has fulfilled the condition; but

the earner shall be treated for the purposes of the previous provisions of this Chapter as if that benefit had accrued to him.

Supplementary provisions

88

(1) In making any calculation for the purposes of this Chapter—

(a) any commutation, forfeiture or surrender of,

(b) any charge or lien on, and

the whole or part of a pension shall be disregarded.

(2) In calculating an earner’s guaranteed minimum for the purposes of this Chapter his earnings factor shall be taken to be that factor as increased, except as provided by subsection (3), by the last order under Article 23 of the Social Security Pensions (Northern Ireland) Order 1975 or section 130 of the Social Security Administration (Northern Ireland) Act 1992 to come into operation before the end of the tax year in which the cessation date falls.

(3) If an earner’s cessation date falls in the tax year in which he attains pensionable age, subsection (2) shall have effect in relation to him as if for the words from “tax year” onwards there were substituted the words “final relevant year”.

(4) In this section “final relevant year” has the same meaning as in section 12.

(5) Any reference in this Chapter to the weekly rate of a pension is to be construed, in relation to a pension payable otherwise than weekly, as a reference to the weekly sum which would be payable in respect of a pension of that amount payable weekly.

CHAPTER 1 — TRANSFER RIGHTS: GENERAL

Scope of Chapter IV

89

(1) This Chapter applies to a member of a pension scheme if all of the following conditions are met.

(2) Condition 1 is that the member has accrued rights to any category of benefits under the scheme rules.

(3) Condition 2 is that no crystallisation event has occurred in relation to the member's accrued rights to benefits in that category (see subsection (7)).

(4) Condition 3 is that—

(a) the member is no longer accruing rights to benefits in that category (see subsection (8)), and

(b) in the case of benefits that are not flexible benefits, the member stopped accruing those rights at least one year before normal pension age.

(5) But this Chapter does not apply to—

(a) a member of a salary related occupational pension scheme whose pensionable service terminated before 1 January 1986 and in respect of whom prescribed requirements are satisfied;

(b) a member of a personal pension scheme which is comprised in an annuity contract made before 4 January 1988.

(6) In this Chapter a reference to a “category” of benefits is to one of the following three categories—

(a) money purchase benefits;

(b) flexible benefits other than money purchase benefits;

(7) For the purposes of Condition 2 a crystallisation event occurs in relation to a member's accrued rights to benefits in a category when—

(a) payment of a pension in respect of any of the benefits has begun,

(b) in the case of money purchase benefits other than collective money purchase benefits, sums or assets held for the purpose of providing any of the benefits are designated as available for the payment of drawdown pension (as defined by paragraph 4 of Schedule 28 to the Finance Act 2004), or

(c) in the case of a personal pension scheme, sums or assets held for the purpose of providing any of the benefits are applied for purchasing an annuity or insurance policy.

(8) For the purposes of Condition 3 a member stops accruing rights to a category of benefits when there are no longer arrangements in place for the accrual of rights to benefits in that category for or in respect of the member.

(9) In this section a reference to accrued rights does not include pension credit rights.

(10) Regulations may—

(a) provide for this Chapter not to apply in relation to a person of a prescribed description;

(b) 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;

(c) modify the application of this Chapter in relation to a member who has accrued rights to benefits of a prescribed description.

(10A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated as a separate scheme for the purposes of this Chapter.

(11) In the following provisions of this Chapter—

(a) a reference to a “member” of a pension scheme is a reference to a member to whom this Chapter applies, and

(b) a reference to a member's “transferrable rights” are to any rights in relation to a category of benefits by virtue of which this Chapter applies to the member.

Right to cash equivalent

90

(1) A member of a pension scheme who has received a statement of entitlement under section 89A acquires a right to take the cash equivalent shown in that statement in accordance with this Chapter.

(2) A member of a pension scheme who has transferrable rights in relation to money purchase benefits acquires a right to take their cash equivalent in accordance with this Chapter.

Ways of taking right to cash equivalent

91

(1) A member of a pension scheme who has acquired a right to take a cash equivalent in accordance with this Chapter may only take it by making an application in writing to the trustees or managers of the scheme requiring them to use the cash equivalent in one of the ways specified below.

(1A) In the case of a right acquired under section 90(1), the application must be made—

(a) within the period of 3 months beginning with the guarantee date shown in the relevant statement of entitlement, and

(b) if the cash equivalent relates to benefits that are not flexible benefits, by no later than the date that falls one year before the member attains normal pension age.

(2) In the case of a member of an occupational pension scheme that is not an unfunded public service defined benefits scheme, the ways referred to in subsection (1) are—

(a) for acquiring transfer credits allowed under the rules of another occupational pension scheme—

(i) the trustees or managers of which are able and willing to accept payment in respect of the member’s transferrable rights, and

(ii) which satisfies prescribed requirements;

(b) for acquiring rights allowed under the rules of a personal pension scheme—

(i) the trustees or managers of which are able and willing to accept payment in respect of the member’s transferrable rights, and

(ii) which satisfies prescribed requirements;

(c) for purchasing from one or more insurer such as are mentioned in section 15(4)(a), chosen by the member and willing to accept payment on account of the member from the trustees or managers, one or more annuities which satisfy prescribed requirements;

(d) for subscribing to other pension arrangements which satisfy prescribed requirements.

(2A) In the case of a member of an occupational pension scheme that is an unfunded public service defined benefits scheme, the ways referred to in subsection (1) are—

(a) for acquiring transfer credits allowed under the rules of another occupational pension scheme if—

(i) the benefits that may be provided under the other scheme by virtue of the transfer credits are not flexible benefits,

(ii) the trustees or managers of the other scheme are able and willing to accept payment in respect of the member's transferrable rights, and

(iii) the other scheme satisfies requirements prescribed in regulations made by the Department or the Department of Finance and Personnel;

(b) for acquiring rights allowed under the rules of a personal pension scheme if—

(i) the benefits that may be provided under the personal pension scheme by virtue of the acquired rights are not flexible benefits,

(ii) the trustees or managers of the personal pension scheme are able and willing to accept payment in respect of the member's transferrable rights, and

(iii) the personal pension scheme satisfies requirements prescribed in regulations made by the Department or the Department of Finance and Personnel;

(c) for purchasing from one or more insurers such as are mentioned in section 15(4)(a), chosen by the member and willing to accept payment on account of the member from the trustees or managers, one or more annuities which satisfy requirements prescribed in regulations made by the Department or the Department of Finance and Personnel;

(d) for subscribing to other pension arrangements which satisfy requirements prescribed in regulations made by the Department or the Department of Finance and Personnel.

(2B) The Department of Finance and Personnel may by regulations provide for sub-paragraph (i) of subsection (2A)(a) or (b) not to apply in specified circumstances or in relation to specified schemes or schemes of a specified description.

(2C) In subsections (2) and (2A) “unfunded public service defined benefits scheme” means a public service pension scheme that—

(a) is a defined benefits scheme within the meaning given by section 34 of the Public Service Pensions Act (Northern Ireland) 2014, and

(b) meets some or all of its liabilities otherwise than out of a fund accumulated for the purpose during the life of the scheme.

(3) In the case of a member of a personal pension scheme, the ways referred to in subsection (1) are—

(a) for acquiring transfer credits allowed under the rules of an occupational pension scheme—

(i) the trustees or managers of which are able and willing to accept payment in respect of the member’s transferrable rights, and

(ii) which satisfies prescribed requirements;

(b) for acquiring rights allowed under the rules of another personal pension scheme—

(i) the trustees or managers of which are able and willing to accept payment in respect of the member’s transferrable rights, and

(ii) which satisfies prescribed requirements;

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

(5) Except in such circumstances as may be prescribed—

(a) subsection (2) is to be construed as if paragraph (d) were omitted; and

(b) subsection (3) is to be construed as if paragraph (c) were omitted.

(5A) Except in such circumstances as may be prescribed in regulations made by the Department or the Department of Finance and Personnel, subsection (2A) is to be construed as if paragraph (d) were omitted.

(6) Without prejudice to the generality of subsections (2) , (2A) and (3), the powers conferred by those subsections include power to provide that a scheme or pension arrangement or, in the case of subsection (2) or (2A), an annuity must satisfy requirements of the Inland Revenue.

(6ZA) The trustees or managers of the scheme may not use the cash equivalent in a way specified in subsection (2)(a), (b) or (d), (2A)(a), (b) or (d) or (3) unless prescribed conditions are satisfied.

(6ZB) The conditions that may be prescribed by regulations under subsection (6ZA) include (but are not limited to) conditions about—

(a) the member's employment or place of residence;

(b) providing the trustees or managers with information or evidence about the member's employment or place of residence;

(c) the member obtaining information or guidance about exercising the option conferred by subsection (1) from a prescribed person in a prescribed case;

(d) providing the trustees or managers with evidence that—

(i) the member has complied with a prescribed condition about obtaining such information or guidance from a prescribed person, or

(ii) the member is not subject to such a prescribed condition.

(6ZC) Regulations may make provision requiring the trustees or managers of a pension scheme to notify a member who makes an application under subsection (1) of conditions prescribed under subsection (6ZA).

(6A) Regulations may extend the period specified in subsection (1A)(a) in prescribed circumstances.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) An application to the trustees or managers of the scheme under subsection (1) is to be taken to have been made if it is delivered to them personally, or sent by post in a registered letter or by the recorded delivery service.

Further provisions concerning exercise of option under s. 91

92

(1) A member who has acquired a right to take a cash equivalent under section 90(1) or (2) may exercise the option conferred by section 91(1) in relation to different portions of that cash equivalent in different ways, but a member who exercises that option must do so—

(a) in relation to the whole of that cash equivalent, or

(b) if subsection (2) applies, in relation to the whole of the balance mentioned in subsection (3).

(2) This subsection applies where—

(a) the trustees or managers—

(i) of an occupational pension scheme ... , or

(ii) of a personal pension scheme ..., ...

(iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

are able or willing to accept a transfer payment only in respect of a member’s rights other than his transferrable rights to guaranteed minimum pensions his accrued rights so far as attributable to service in contracted-out employment on or after the principal appointed day ...; and

(b) the member has not required the trustees or managers of the scheme from which he is being transferred to use the portion of his cash equivalent which represents those transferrable rights in any of the ways specified in subsection (2) , subsection (2A) or, as the case may be, subsection (3) of section 91.

(3) Where subsection (2) applies this section and sections 90, 91 and 93 are to be construed as conferring on the member an option only in respect of the balance of the cash equivalent to which the member would otherwise be entitled, after deduction of an amount sufficient for the trustees or managers of the scheme from which he is being transferred to meet their liability—

(a) in the case of a transfer from an occupational pension scheme, in respect of the member’s and the member’s widow's, widower’s or surviving civil partner’s (as the case may be) pensions, being guaranteed minimum pensions or pensions so far as attributable to service in contracted-out employment on or after the principal appointed day ... ; ...

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

(4) Where a member of a pension scheme—

(a) is entitled to make an application under section 91(1) in relation to any category of benefits, and

(b) is also entitled to give a transfer notice under section 97F(1) to the trustees or managers of the scheme in relation to benefits in the same category (or would be entitled to do so but for section 97G(2)),

the member may not, if the scheme so provides, make an application under section 91(1) in relation to that category of benefits without also giving a transfer notice under section 97F(1) in relation to that category of benefits.

Calculation of cash equivalents

93

(1) Cash equivalents are to be calculated and verified —

(a) in the prescribed manner, and

(b) where a designation has been made under section 93A, in accordance with regulations under section 93B.

(1A) Where a member applies under section 91 to take a cash equivalent that relates to money purchase benefits, the cash equivalent is to be calculated by reference to the date of the application.

(2) Regulations may provide—

(a) that in calculating cash equivalents that relate to money purchase benefits account shall be taken—

(i) of any surrender, commutation or forfeiture of the whole or part of a member’s pension which occurs before the trustees or managers of the scheme of which he is a member do what is needed to comply with what he requires under section 91;

(ii) in a case where subsection (2) of section 92 applies, of the need to deduct an appropriate amount to provide for the liabilities mentioned in subsection (3) of that section;

(aa) for a cash equivalent that relates to any category of benefits to be reduced so as to take account of the extent (if any) to which an entitlement has arisen under the scheme to the present payment of the whole or any part of—

(i) any pension; or

(ii) any benefit in lieu of pension; and

(b) that in prescribed circumstances a cash equivalent shall be increased or reduced.

(3) Without prejudice to the generality of subsection (2), the circumstances that may be specified by virtue of paragraph (b) of that subsection include—

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

(b) failure by the trustees or managers of the scheme to do what is needed to carry out what a member of the scheme requires within 6 months of the appropriate date

(3ZA) Where, in the case of an application from a member under section 91 that relates to money purchase benefits that are collective money purchase benefits, regulations under section 95(2)(c) provide for a period longer than 6 months, subsection (3)(b) is to be read as if the reference to 6 months were a reference to that longer period.

(3A) For the purposes of subsection (3), the “appropriate date”—

(a) in relation to a cash equivalent that relates to benefits other than money purchase benefits, means the guarantee date for the purposes of the relevant statement of entitlement under section 89A, and

(b) in relation to a cash equivalent that relates to money purchase benefits, means the date on which the trustees or managers receive an application from the member under section 91.

(3B) Where regulations under subsection (2)(b) provide for the cash equivalent shown in a statement of entitlement to be increased or reduced after the member has made an application under section 91, the regulations may provide for the application under section 91 to lapse (but this does not prevent the member making a fresh application in respect of the increased or reduced cash equivalent).

(4) Regulations under subsection (2) may specify as the amount by which a cash equivalent is to be reduced such an amount that a member has no right to receive anything.

Variation and loss of rights under s. 90

94

(1) A member of a pension scheme who acquires the right to take a cash equivalent under section 90(1) loses that right if no application to take the cash equivalent is made within the period required by section 91(1A) or (6A).

(2) A member of a pension scheme loses the right to take a cash equivalent in accordance with this Chapter if, after the member makes an application under section 91, the duty of the trustees or managers to do what is needed to carry out what the member requires is extinguished by section 95(2ZA) or (2A).

(3) Nothing in subsection (1) or (2) prevents the member from later acquiring a new right to take a cash equivalent in relation to the same benefits.

(4) A member of a pension scheme loses the right to take a cash equivalent in accordance with this Chapter if the scheme is wound up.

Trustees' duties after exercise of option

95

(1) Where—

(a) a member has exercised the option conferred by section 91; and

(b) the trustees or managers of the scheme have done what is needed to carry out what the member requires,

the trustees or managers shall be discharged from any obligation to provide benefits to which the cash equivalent related except, in such cases as are mentioned in section 92(2), to the extent that an obligation to provide such guaranteed minimum pensions ... continues to subsist.

(2) Subject to the following provisions of this section, if the trustees or managers of a scheme receive an application under section 91 they must do what is needed to carry out what the member requires—

(a) in the case of an application that relates to benefits other than money purchase benefits, within 6 months beginning with the guarantee date shown in the relevant statement of entitlement, and

(b) in the case of an application that relates to money purchase benefits other than collective money purchase benefits, within 6 months beginning with the date of the application, and

(c) in the case of an application which relates to money purchase benefits that are collective money purchase benefits, within 6 months beginning with the date of the application or such longer period beginning with that date as may be prescribed.

(2ZA) Subsection (2) does not apply if the trustees or managers have been unable to carry out what the member requires because a condition prescribed by regulations under section 91(6ZA) has not been satisfied.

(2ZB) Subsection (2) does not apply if—

(a) the member was required by section 92(4) to give a transfer notice under section 97F(1) in addition to making an application, and

(b) the trustees or managers have been unable to carry out what the member required in the transfer notice under section 97F(1) because a condition prescribed by regulations under section 97F(5A) has not been satisfied.

(2A) Subsection (2) does not apply if—

(a) the trustees or managers have been unable to carry out the check required by section 51 of the Pension Schemes Act 2015 by reason of factors outside their control, or

(b) the trustees or managers have carried out the check required by section 51 of the Pension Schemes Act 2015 but the check did not confirm that the member had received appropriate independent advice.

(3) If—

(a) disciplinary proceedings or proceedings before a court have been begun against a member of an occupational pension scheme ...; and

(b) it appears to the trustees or managers of the scheme that the proceedings may lead to the whole or part of the pension or benefit in lieu of a pension payable to the member or the member’s surviving spouse or civil partner being forfeited; and

(c) the date before which they would (apart from this subsection) be obliged under subsection (2) to carry out what the member requires is earlier than the end of the period of 3 months after the conclusion of the disciplinary or court proceedings (including any proceedings on appeal),

then, subject to the following provisions of this section, they must instead do so before the end of that period of 3 months.

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

(4) The Regulatory Authority may, in prescribed circumstances, by direction, grant an extension of the period within which the trustees or managers of the scheme are obliged to do what is needed to carry out what a member of the scheme requires.

(4A) Regulations may make provision requiring applications for extensions under subsection (4) to meet prescribed requirements .

(4B) Regulations may extend the period for compliance under subsection (2) or (3) in prescribed circumstances.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) Where the trustees or managers of an occupational pension scheme have not done what is needed to carry out what a member of the scheme requires within 6 months of the date mentioned in paragraph (a) or (b) of subsection (2)—

(a) they must, except in prescribed cases, notify the Regulatory Authority of that fact within the prescribed period, and

(b) Article 10 of the Pensions (Northern Ireland) Order 1995 (power of the Regulatory Authority to impose civil penalties) shall apply to any trustee or manager who has failed to take all such steps as are reasonable to ensure that it was so done.

(8) Regulations may provide that in prescribed circumstances subsection (7) shall not apply in relation to an occupational pension scheme.

Withdrawal of applications

96

(1) Subject to subsections (2) and (2A), a member of a scheme may withdraw an application under section 91 by giving the trustees or managers of the scheme notice in writing that he no longer wishes them to do what is needed to carry out what he previously required.

(2) Such a notice shall be of no effect if it is given to the trustees or managers at a time when, in order to comply with what the member previously required, they have already entered into an agreement with a third party to use the whole or part of the member’s cash equivalent in a way specified in subsection (2), subsection (2A) or, as the case may be, subsection (3) of section 91.

(2A) If the making of the application depended on the giving of a notice under section 97F(1), the application may only be withdrawn if the notice is also withdrawn.

(3) A member who withdraws an application may make another.

(4) A notice to the trustees or managers of a scheme under this section is to be taken to have been given if it is delivered to them personally, or sent by post in a registered letter or by recorded delivery service.

Supplementary provisions

97

In making any calculation for the purposes of this Chapter—

(a) any charge or lien on, and

(b) any set-off against,

the whole or part of a pension shall be disregarded.

Part V — Annual Increases of Pensions in Payment

Chapter I — Pensions under Final Salary Schemes, etc.

Scope of Chapter I: annual increase of certain occupational pensions

98

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

Annual increase of later service component

99

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

Annual increase of earlier service component where scheme is in surplus

100

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

Proportional increase where first period is less than 12 months

101

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

Restriction on increase where member is under 55

102

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

Application of Chapter I to pensions not attributable to pensionable service

103

No payments to employers from non-complying schemes

104

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

Chapter II — Guaranteed Minimum Pensions

Annual increase of guaranteed minimum pensions

105

(1) Whenever the Secretary of State makes an order under section 109 of the Pension Schemes Act 1993 specifying a percentage by which there is to be an increase of the rate of that part of guaranteed minimum pensions which is attributable to earnings factors for the tax years in the relevant period as defined in that section for—

(a) earners who have attained pensionable age; and

(b) widows, widowers and surviving civil partners,

the Department may make a corresponding order for Northern Ireland.

(2) Where the benefits mentioned in section 42(1) to (7) are not increased on the day on which an order under this section takes effect, the order shall be treated for the purposes of that section as not taking effect until the day on which those benefits are next increased.

Requirement as to resources for annual increase of guaranteed minimum pensions

106

(1) Except as permitted by Article 53 of the Pensions (Northern Ireland) Order 1995, the trustees or managers of a scheme may not make an increase in a person’s pension which is required by virtue of section 105 out of money which would otherwise fall to be used for the payment of benefits under the scheme to or in respect of that person unless—

(a) the payment is to an earner in respect of the tax year in which he attains pensionable age and the increase is the one required to be made in the next tax year; or

(b) the payment is to a person as the widow, widower or surviving civil partner of an earner who died before attaining pensionable age and is in respect of the tax year in which the person became a widow, widower or surviving civil partner, and the increase is the one required to be made in the next tax year.

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

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

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

Part VI — Further Requirements for Protection of Scheme Members

Voluntary contributions

107

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

108

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

Disclosure of information about schemes to members, etc

109

(1) The Department may by regulations specify requirements to be complied with in the case of an occupational pension scheme or a personal pension scheme with respect to keeping the persons mentioned in subsection (2) informed—

(a) of its constitution;

(b) of its administration and finances;

(ca) of the pensions and other benefits an entitlement to which would be likely to accrue to the member, or be capable of being secured by him, in respect of the rights that may arise under it; and

(d) of any other matters that appear to the Department to be relevant to occupational pension schemes or personal pension schemes in general or to schemes of a description to which the scheme in question belongs.

(2) The persons referred to in subsection (1) are—

(a) members and, in the case of an occupational pension scheme, prospective members of the scheme;

(b) spouses or civil partners of members and, in the case of an occupational pension scheme, of prospective members;

(d) in the case of an occupational pension scheme, independent trade unions recognised to any extent for the purposes of collective bargaining in relation to members and to prospective members of the scheme.

(e) persons of prescribed descriptions.

(2A) In complying with requirements specified in the regulations, a person must have regard to any guidance prepared from time to time by the Department.

(3) Without prejudice to the generality of section 177(2), the regulations may distinguish between—

(a) cases in which information is to be given as of course; and

(b) cases in which information need only be given on request or in other prescribed circumstances.

(3A) The regulations may provide for the information that must be given to be determined, in whole or part, by reference to guidance which is prepared and from time to time revised by a prescribed body.

(3B) The regulations may, in relation to cases where a scheme is being wound up, contain—

(a) provision conferring power on the Regulatory Authority, at times before the period expires, to extend any period specified in the regulations as the period within which a requirement imposed by the regulations must be complied with; and

(b) provision as to the contents of any application for the exercise of such a power and as to the form and manner in which, and the time within which, any such application must be made.

(4) The regulations shall make provision for referring to an industrial tribunal any question whether an organisation is such a trade union as is mentioned in subsection (2)(d).

(5) The Department must make regulations under subsection (1) requiring information about some or all of the transaction costs of a relevant scheme to be given to some or all of the persons mentioned in subsection (2).

(6) The Department must by regulations make provision requiring the publication of information about—

(a) some or all of the transaction costs of a relevant scheme, and

(b) some or all of the other administration charges imposed on members of a relevant scheme.

(7) Regulations under subsection (6) may require other relevant information to be published along with information about transaction costs or other administration charges in relation to a scheme.

(8) “Other relevant information” means other information which would or may assist in making comparisons between those costs or charges and costs or charges in relation to other schemes.

(9) In this section—

“administration charge” has the meaning given by paragraph 1(5) of Schedule 18 to the Pensions Act (Northern Ireland) 2015;

“relevant scheme” means a money purchase scheme that is an occupational pension scheme.

Additional documents for members, etc. and Registrar

110

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

Powers as respects failure to comply with information requirements

111

(1) If the trustees or managers of an occupational pension scheme or a personal pension scheme, having made default in complying with regulations under section 109 or 109B . . ., fail to make good the default within 14 days after the service on them of a notice requiring them to do so, an order may be made under this subsection.

(2) The Department may by regulations specify forms for notices under subsection (1).

(3) An order under subsection (1) is an order directing the trustees or managers to make good the default within such time as may be specified in the order.

(4) The power to make such an order shall be exercisable by a county court on the application of any person mentioned in subsection (5).

(5) The persons referred to in subsection (4) are—

(a) the Department;

(b) any person authorised by the Department to make an application under this section; and

(6) An order under this section may provide that all costs of and incidental to the application shall be borne personally by any of the trustees or managers of the scheme.

Regulations as to auditors

112

Regulations as to form and content of advertisements

113

Regulations may be made relating to the form and content of advertisements and such other material as may be prescribed issued by or on behalf of the trustees or managers of a personal or occupational pension scheme for the purposes of the scheme.

Equal access requirements

114

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

Part VII — Insolvency of Employers

VII — Independent Trustees

Requirement for independent trustee where employer becomes insolvent, etc

115

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

Members' powers to apply to court to enforce duty under s. 115

116

Further provisions as to appointment and powers of independent trustees

117

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

Duty of insolvency practitioner or official receiver to give information to scheme trustees

118

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

Chapter II — Payment by the Department of Unpaid Scheme Contributions

Interpretation of Chapter II

119

(1) For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in Northern Ireland—

(a) he has been adjudged bankrupt or has made a composition or arrangement with his creditors;

(b) he has died and his estate falls to be administered in accordance with an order under Article 365 of the Insolvency (Northern Ireland) Order 1989; ...

(i) a winding-up order ... is made or a resolution for voluntary winding up is passed with respect to it or the company enters administration,

(ii) a receiver or manager of its undertaking is duly appointed,

(iii) possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge, or

(iv) a voluntary arrangement proposed for the purpose of Part II of the Insolvency (Northern Ireland) Order 1989 is approved under that Part ; or

(d) subsection (1ZA) or (1A) is satisfied.

(1ZA) This subsection is satisfied in the case of an employer if—

(a) the employer is a legal person,

(b) a request has been made for the first opening of collective proceedings—

(i) based on the insolvency of the employer, as provided for under the law of any part of the United Kingdom, and

(ii) involving the partial or total divestment of the employer's assets and the appointment of a liquidator or a person performing a similar task, and

(i) a court,

(ii) a meeting of creditors, or

(iii) the creditors by a decision procedure.

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