BAILII is celebrating 24 years of free online access to the law! Would you
consider making a contribution?
No donation is too small. If every visitor before 31 December gives just £1, it
will have a significant impact on BAILII's ability to continue providing free
access to the law.
Thank you very much for your support!
[New search]
[Help]
STATUTORY RULES OF NORTHERN IRELAND
2005 No. 137
PENSIONS
The Occupational Pension Schemes (Modification of Pension Protection Provisions) Regulations (Northern Ireland) 2005
| |
Made |
18th March 2005 | |
| |
Coming into operation |
6th April 2005 | |
The Department for Social Development, in exercise of the powers conferred on it by Articles 151(1) and 287(3) of the Pensions (Northern Ireland) Order 2005[1] and of all other powers enabling it in that behalf, hereby makes the following Regulations:
Citation, commencement and interpretation
1.
- (1) These Regulations may be cited as the Occupational Pension Schemes (Modification of Pension Protection Provisions) Regulations (Northern Ireland) 2005 and shall come into operation on 6th April 2005.
(2) In these Regulations "the Order" means the Pensions (Northern Ireland) Order 2005.
Valuations of assets and liabilities for determining if the Board must assume responsibility for schemes
2.
- (1) Articles 127 (Board's obligation to obtain valuation of assets and protected liabilities) and 142 (duty to assume responsibility for closed schemes) of the Order shall be amended in accordance with paragraphs (2) and (3) respectively.
(2) In Article 127 -
(a) after paragraph (5) there shall be inserted the following paragraphs -
"
(5A) Paragraph (5B) applies if -
(a) during the pre-approval period any liability to provide pensions or other benefits to or in respect of any member or members under the scheme is discharged by virtue of regulations under Article 119(4) or the Board validating any action mentioned in Article 119(9), and
(b) at the relevant time the protected liabilities of the scheme include any cost within Article 115(1)(a) relating to compensation in respect of those pensions or other benefits.
(5B) If this paragraph applies, for the purposes mentioned in paragraph (2) -
(a) in determining that cost the effect of the discharge on the compensation payable in respect of those pensions or other benefits under paragraph 23A of Schedule 6 must be taken into account,
(b) in a case where assets of the scheme at the relevant time were transferred from the scheme during the pre-approval period in consideration for the discharge, those assets are not to be regarded as assets of the scheme at the relevant time, and
(c) in a case where assets that were not assets of the scheme at that time ("later-acquired assets") were so transferred, the value of the assets of the scheme at that time is to be reduced by the value of the later-acquired assets at the time of the discharge.";
(b) in paragraph (9) after "or (4)" there shall be inserted "or by virtue of paragraph (5B)".
(3) In Article 142(6)(a) after "(5)" there shall be inserted ", (5A), (5B)".
Effect of discharge of liability on compensation under Schedule 6 to the Order
3.
In Schedule 6 to the Order (pension compensation provisions) after paragraph 23 there shall be inserted the following paragraph -
"
Effect of discharge of liability during or immediately before assessment period
23A.
- (1) This paragraph applies if -
(a) at any time during the assessment period in relation to the scheme (or, if there has been more than one such assessment period, the last one) any liability to provide pensions or other benefits to or in respect of any member or members under the scheme is discharged by virtue of -
(i) regulations under Article 119(4), or
(ii) the Board validating any action mentioned in Article 119(9), or
(b) any such liability is discharged on the assessment date, but before the commencement of the assessment period,
and compensation is payable in accordance with this Schedule in respect of the pensions or other benefits (apart from this paragraph).
(2) Any entitlement to compensation under this Schedule in respect of the pensions or other benefits that arose before the discharge ceases on the discharge, except so far as the entitlement was to a payment falling to be made before the discharge.
(3) After the discharge any compensation payable under this Schedule in respect of the pensions or other benefits is determined on the basis that -
(a) the discharge occurred immediately before the assessment date, and
(b) the admissible rules of the scheme provided -
(i) for the discharge to occur at that time, and
(ii) accordingly, for entitlement under those rules to the pensions or other benefits then to cease or, as the case may be, to cease to the extent to which liability in respect of them is discharged.".
Sealed with the Official Seal of the Department for Social Development on
18th March 2005.
L.S.
John O'Neill
A senior officer of the Department for Social Development
EXPLANATORY NOTE
(This note is not part of the Regulations.)
These Regulations modify Chapter 3 of Part III of the Pensions (Northern Ireland) Order 2005 ("the Order") (pension protection provisions) as it applies where any liability to provide pensions or other benefits to or in respect of any member or members under an occupational pension scheme that is an eligible scheme (as defined in Article 110 of the Order) is discharged during an assessment period or on the day when that period will begin. An assessment period is defined in Article 116 of the Order and, broadly, is the period beginning with an insolvency event occurring in relation to a scheme's employer and ending with either the Board of the Pension Protection Fund ("the Board") assuming responsibility for the scheme or ceasing to be involved with it.
Most discharges of liability during an assessment period are prohibited under Article 119 of the Order. Regulations under Article 119(4) may allow transfers of, or transfer payments in respect of, members' rights and other steps to discharge liability in respect of rights to pensions or other benefits, and under Article 119(9) the Board may validate actions that would otherwise contravene Article 119. The modifications of the Order made by these Regulations apply in cases where a discharge occurs that is so allowed or validated ("a relevant discharge").
Regulation 1 provides for citation, commencement and interpretation.
Regulation 2 modifies Articles 127 and 142 of the Order so that the actuarial valuations that are used to determine if the Board is to assume responsibility for a scheme under Article 111, 112 or 142 of the Order must take into account the effect of a relevant discharge that occurs before the valuation is approved by the Board. Article 127 is also modified so that the Board need not obtain such valuations if it considers that a relevant discharge may occur.
Regulation 3 inserts paragraph 23A into Schedule 6 to the Order to provide that where a relevant discharge occurs the compensation payable under that Schedule is determined on the basis that the discharge occurred immediately before the assessment period began, and the scheme rules provided for it to occur, and hence for the rights corresponding to the discharged liabilities to cease. Compensation payable before the discharge will not be affected. Similar provision is made for discharges of liability occurring on the assessment date, but before the assessment period begins.
The Pensions (2005 Order) (Commencement No. 1 and Consequential and Transitional Provisions) Order (Northern Ireland) 2005 (S.R. 2005 No. 48 (C. 5)) provides for the coming into operation of Article 151(1) of the Order, one of the enabling provisions under which these Regulations are made, for the purpose of authorising the making of regulations on 25th February 2005 and for all other purposes on 6th April 2005.
As these Regulations are made before the end of the period of six months beginning with the coming into operation of the provisions of the Order by virtue of which they are made, the requirement to consult under Article 289(1) of the Order does not apply by virtue of paragraph (2)(c) of that Article.
Notes:
[1]
S.I. 2005/255 (N.I. 1)back
ISBN
0 337 95903 X
| © Crown copyright 2005 |
Prepared
15 April 2005
|
BAILII:
Copyright Policy |
Disclaimers |
Privacy Policy |
Feedback |
Donate to BAILII
URL: http://www.bailii.org/nie/legis/num_reg/2005/20050137.html
