The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2007

Made: 20th March 2007

Coming into operation: 6th April 2007

The Department for Social Development, being a Department designated[^f00001] for the purposes of section 2(2) of the European Communities Act 1972[^f00002], in relation to personal and occupational pensions makes the following Regulations in exercise of the powers conferred by that section, sections 1(1), 5(2B)(c), 8C(1)(a), 12(3), 16(1), 24(2)(b) and (4), 67(6), 109(1) and (2) and 177(2) to (4) of the Pension Schemes (Northern Ireland) Act 1993[^f00003], Articles 35(7), 40(1), 66A(3), 73(2)(b), 73B(8) and 166(1) to (3) of the Pensions (Northern Ireland) Order 1995[^f00004], Articles 3(5)(c) and 73(4) of the Welfare Reform and Pensions (Northern Ireland) Order 1999[^f00005], and now vested in it[^f00006], and Articles 165(1)(a), 200(1)(b) and (2), 203(1)(b), 206(4), 218(8)(c), 219(10), 226(2)(a), 236(1), 263(6), 264(1), 265(1), 268(1) and 287(3) of the Pensions (Northern Ireland) Order 2005[^f00007].

Citation, commencement and interpretation

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• (1) These Regulations may be cited as the Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2007 and shall come into operation on 6th April 2007.

• (2) The Interpretation Act (Northern Ireland) 1954[^f00008] shall apply to these Regulations as it applies to an Act of the Assembly.

Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations

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Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations

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• (1) The Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991[^f00012] shall be amended in accordance with paragraphs (2) and (3).

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

• (3) In regulation 8 (early retirement or deferred retirement) for paragraph (2) substitute—

(2) The member’s benefit must not be payable before normal pension age except in the circumstances where the member has either— (a) met the ill-health condition specified in paragraph 1 of Schedule 28 to the Finance Act 2004 (registered pension schemes – defined benefits and money purchase arrangements – ill health condition) immediately before he became entitled to the benefit under the scheme, or (b) attained normal minimum pension age as defined in section 279 of that Act (other definitions).

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

4

• (1) The Occupational Pension Schemes (Contracting-out) Regulations 1996[^f00015] shall be amended in accordance with paragraphs (2) and (3).

• (2) In regulation 1(2) (interpretation) for the definition of “overseas scheme”[^f00016] substitute—

• “overseas scheme” means an occupational pension scheme which has its main administration outside the member States but does not include a scheme which is contracted-out in the Isle of Man by virtue of satisfying section 9(2) or (3) of the Pension Schemes Act 1993 as it has effect in the Isle of Man[^f00017];

• (3) In regulation 62(2) (fixed rate revaluation of guaranteed minimum pensions for early leavers)—

• (a) in sub-paragraph (e)[^f00018] for “6th April 2002, 4.5 per cent.” substitute “6th April 2002 but before 6th April 2007, 4.5 per cent. ”, and

• (b) after sub-paragraph (e) add —

(f) where that period of service terminates on or after 6th April 2007, 4 per cent. compound.

Amendment of the Protected Rights (Transfer Payment) Regulations

5

In regulation 1(2) of the Protected Rights (Transfer Payment) Regulations (Northern Ireland) 1996[^f00019] (interpretation) for the definition of “overseas scheme”[^f00020] substitute—

• “overseas scheme” means— an occupational pension scheme which has its main administration outside the member States, or a European pensions institution as defined in Article 269(8) of the Pensions (Northern Ireland) Order 2005 (functions of Regulator in relation to institutions administered in other member States), but does not include one which is contracted-out within the meaning of section 3(3) nor one in respect of which section 49[^f00021] (supervision: former contracted-out schemes) applies by virtue of section 48(1) (supervision of schemes which have ceased to be certified);

Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations

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In regulation 1(2) of the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996[^f00022] (interpretation) for the definition of “overseas scheme”[^f00023] substitute—

• “overseas scheme” means— an occupational pension scheme which has its main administration outside the member States, or a European pensions institution as defined in Article 269(8) of the Pensions (Northern Ireland) Order 2005 (functions of Regulator in relation to institutions administered in other member States), but does not include a salary-related contracted-out scheme nor one in respect of which section 49 (supervision: former contracted-out schemes) applies by virtue of section 48(1) (supervision of schemes which have ceased to be certified);

Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations

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In regulation 8 of the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997[^f00024] (giving effect to protected rights by the provision of a lump sum) omit paragraph (2).

Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations

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Amendment of the Stakeholder Pension Schemes Regulations

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In regulation 14 of the Stakeholder Pension Schemes Regulations (Northern Ireland) 2000[^f00028] (charges etc. - permitted reductions in members’ rights)—

• (a) in paragraph (1) for “paragraphs (2) to (5)” substitute “paragraphs (2) to (5A)”, and

• (b) after paragraph (5) insert—

(5A) The value of a member’s rights under the scheme may be reduced by the amount of any payment made to discharge the liability of the trustees or managers in respect of any tax liability under the Finance Act 2004 in relation to that member.

Amendment of the Occupational Pension Schemes (Winding up, etc.) Regulations

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• (1) The Occupational Pension Schemes (Winding up, etc.) Regulations (Northern Ireland) 2005[^f00029] shall be amended in accordance with paragraphs (2) and (3).

• (2) In regulation 3(1) (schemes to which Article 73 of the 1995 Order does not apply)—

• (a) in sub-paragraph (j) for head (i) substitute—

(i) the provisions of the scheme provide that any decision made by the trustees is made by the unanimous agreement of the trustees who are members of the scheme, or

• (b) in sub-paragraph (k) for head (i) substitute—

(i) the provisions of the scheme provide that any decision made by the company in its capacity as trustee is made by the unanimous agreement of the directors who are members of the scheme; or

, and

• (c) omit sub-paragraph (l).

• (3) In regulation 8(4)(a) (entitlement to death benefits treated as arising before commencement of winding up period) for “former spouse” substitute “former spouse, former civil partner”.

Amendment of the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations

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In regulation 2 of the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations (Northern Ireland) 2005[^f00030] (prescribed schemes)—

• (a) in paragraph (1)—

• (i) in sub-paragraph (f)(i) for “all decisions which fall to be made by the trustees are made by unanimous agreement by” substitute “any decision made by the trustees is made by the unanimous agreement of”;

• (ii) in sub-paragraph (g)—

• (aa) for “where a company is a trustee” substitute “where a company is the sole trustee”;

• (bb) in head (i) for “are made by the unanimous agreement of all the directors” substitute “is made by the unanimous agreement of the directors”, and

• (cc) in head (ii) for “one of the directors is a trustee who” substitute “one of the directors of the company”, and

• (iii) omit sub-paragraph (k), and

• (b) in paragraph (2) for “within paragraph (1)(a) to (k)” substitute “within paragraph (1)(a) to (j)”.

Amendment of the Pension Schemes (Categories) Regulations

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In regulation 2 of the Pension Schemes (Categories) Regulations (Northern Ireland) 2005[^f00031] (prescription of certain pension schemes as occupational pension schemes) after paragraph (5) add—

(6) This regulation applies to the Pilots’ National Pension Fund which is a pilots’ benefit fund established under byelaws made by the Trinity House of Deptford Strond under section 15(1)(i) of the Pilotage Act 1983[^f00032].

Amendment of the Occupational Pension Schemes (Scheme Funding) Regulations

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• (1) The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005[^f00033] shall be amended in accordance with paragraphs (2) to (4).

• (2) In regulation 17(1)[^f00034] (exemptions - general)—

• (a) in sub-paragraph (h)—

• (i) for “a scheme which has” substitute “a scheme with”;

• (ii) in head (i) for “all decisions which fall to be made by the trustees are” substitute “any decision made by the trustees is”, and

• (iii) in head (ii) for “who is an independent trustee” substitute “who is independent”, and

• (b) in sub-paragraph (i)—

• (i) for “a scheme which has” substitute “a scheme with”;

• (ii) for “where a company is a trustee” substitute “where a company is the sole trustee”;

• (iii) in head (i) for “is made only by the unanimous agreement” substitute “is made by the unanimous agreement”, and

• (iv) in head (ii) for “one of the directors is a trustee who” substitute “one of the directors of the company”.

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

• (4) In Schedule 4 (transitional provisions and savings) in paragraph 3—

• (a) in sub-paragraph (4) omit the words from “and the trustees or managers have determined before that date” to the end of that sub-paragraph, and

• (b) in sub-paragraph (5) for “the effective date they have determined” substitute “an effective date which is no earlier than 22nd September 2005 and not more than three years after the effective date of the last valuation they received under the 1995 Order”.

Amendment of the Occupational Pension Schemes (Investment) Regulations

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• (1) The Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 2005[^f00035] shall be amended in accordance with paragraphs (2) and (3).

• (2) In regulation 1(2) (interpretation) in the definition of “small scheme” in paragraph (a)(i) for “by unanimous agreement by” substitute “by the unanimous agreement of ”.

• (3) In regulation 12(1) (restrictions on employer-related investments) for “applies to trust schemes” substitute “applies to schemes”.

Amendment of the Occupational Pension Schemes (Regulatory Own Funds) Regulations

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• (1) The Occupational Pension Schemes (Regulatory Own Funds) Regulations (Northern Ireland) 2005[^f00036] shall be amended in accordance with paragraphs (2) to (4).

• (2) In regulation 10(8) (postponement) for “given in regulation 11” substitute “given in regulation 3 of the Occupational Pension Schemes (Cross-border Activities) Regulations (Northern Ireland) 2005[^f00037] (meaning of “European employer” and “host member State” in Part VII of the Order)”.

• (3) Omit regulation 11 (meaning of “European employer”).

• (4) In regulation 15(1) (exemptions)—

• (a) in sub-paragraph (h)—

• (i) for “a scheme which has” substitute “a scheme with”;

• (ii) in head (i) for “all decisions which fall to be made by the trustees are” substitute “any decision made by the trustees is”, and

• (iii) in head (ii) for “who is an independent trustee” substitute “who is independent”, and

• (b) in sub-paragraph (i)—

• (i) for “a scheme which has” substitute “a scheme with”;

• (ii) for “where a company is a trustee” substitute “where a company is the sole trustee”;

• (iii) in head (i) for “is made only by the unanimous agreement” substitute “is made by the unanimous agreement”, and

• (iv) in head (ii) for “one of the directors is a trustee who” substitute “one of the directors of the company”.

Amendment of the Occupational Pension Schemes (Cross-border Activities) Regulations

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• (1) The Occupational Pension Schemes (Cross-border Activities) Regulations (Northern Ireland) 2005[^f00038] shall be amended in accordance with paragraphs (2) to (9).

• (2) In regulation 2 (interpretation)—

• (a) in paragraph (1) in the definition of “segregated multi-employer scheme” in paragraph (b) for “a specified part or proportion” substitute “a specified proportion”;

• (b) in paragraph (3) for “Where a scheme is a segregated multi-employer scheme” substitute “Subject to paragraph (4), where a scheme is a segregated multi-employer scheme”, and

• (c) after paragraph (3) add—

(4) This paragraph applies where— (a) a European employer is an employer in relation to a segregated multi-employer scheme; (b) that European employer is an associate of one or more employers in relation to that scheme. (5) Where paragraph (4) applies, all sections of the scheme that receive contributions from at least one of the employers referred to in that paragraph are together to be treated as a separate scheme for the purposes of regulations 7(2)(d) and 8(5). (6) In paragraph (4)(b) “associate” has the meaning given in Article 4[^f00039] of the Insolvency Order (associated employer).

• (3) In regulation 3 (meaning of “European employer” and “host member State” in Part VII of the Order) for paragraph (1) substitute—

(1) Subject to paragraphs (2) to (4), in Part VII of the Order “European employer” means a person who in relation to a host member State either— (a) employs qualifying persons in that member State, or (b) is a qualifying self-employed person in that member State, and is making (or proposes to make) contributions to a scheme either in respect of a qualifying person or in respect of himself as a qualifying self-employed person.

• (4) In regulation 5 (applications for general authorisation to accept contributions from European employers: established schemes which are carrying on cross-border activity)—

• (a) in paragraph (1)—

• (i) at the end of sub-paragraph (b) insert “or”, and

• (ii) after that sub-paragraph add—

(c) the trustees or managers of that scheme apply, on or after 6th April 2007, to the Regulator for authorisation under Article 264.

• (b) in paragraph (2)[^f00040] for “Subject to paragraph (3), such” substitute “Subject to paragraph (3) or (4), where the application is made before 22nd September 2008, such”, and

• (c) after paragraph (3)[^f00041] add—

(4) In a case where the trustees or managers of a pre-23rd September 2005 scheme make an application on or after 22nd September 2008— (a) where the scheme is a money purchase scheme, such an application shall be made in a form which provides the information described in paragraphs 2 and 3 of Schedule 1, or (b) where the scheme is not a money purchase scheme, such an application shall be made in a form which provides the information described in paragraphs 2 and 4 of that Schedule.

• (5) In regulation 7(2) (conditions for general authorisation to accept contributions from European employers) in sub-paragraph (d) for head (ii) substitute—

(ii) where the application is made under regulation 5— (aa) in a case where the application is made on or after 6th April 2007 but before 22nd September 2008, that the scheme to which the application relates will, in the opinion of the Regulator, meet the statutory funding objective by 22nd September 2008, or (bb) in a case where the application is made on or after 22nd September 2008, that the scheme to which the application relates meets the statutory funding objective, or

• (6) In regulation 10 (applications for approval in relation to particular European employer: established schemes which are carrying on cross-border activity)—

• (a) in paragraph (1)—

• (i) at the end of sub-paragraph (b) insert “or”, and

• (ii) after that sub-paragraph add—

(c) the trustees or managers of that scheme make an application for approval under Article 265 in relation to one or more European employers on or after the end of that period.

• (b) in paragraph (2)[^f00042] for “Subject to paragraph (3), the information to be contained in the notice of intention relating to such an application,” substitute “Subject to paragraph (3) or (4), the information to be contained in the notice of intention relating to such an application, where the application is made before 22nd September 2008”, and

• (c) after paragraph (3)[^f00043] add—

(4) In a case where an application is made on or after 22nd September 2008— (a) where the scheme is a money purchase scheme, such an application shall be made in accordance with the provisions of paragraph 6(1), (2), (3) and (7) of Schedule 1, or (b) where the scheme is not a money purchase scheme, such an application shall be made in accordance with the provisions of paragraph 6(1), (2), (4) and (7) of that Schedule.

• (7) In regulation 15(3) (ring-fencing of assets) at the beginning of sub-paragraph (b)(ii) insert “within a time specified by the Regulator (subject to any extension the Regulator may subsequently grant),”.