S.I. No. 238/1994:

OCCUPATIONAL PENSION SCHEMES (EXTERNAL SCHEMES) (UNITED KINGDOM) REGULATIONS, 1994.

OCCUPATIONAL PENSION SCHEMES (EXTERNAL SCHEMES) (UNITED KINGDOM) REGULATIONS, 1994.

The Minister for Social Welfare, in exercise of the powers conferred on him by section 5 and section 5A of the Pensions Act, 1990 (No. 25 of 1990), hereby makes the following Regulations:--

1. (1) These Regulations may be cited as the Occupational Pension Schemes (External Schemes) (United Kingdom) Regulations, 1994.

(2) These Regulations shall come into operation on the 31st day of July, 1994.

2. In these Regulations--

"the Act" means the Pensions Act, 1990 (No. 25 of 1990);

"the Funding Standard Regulations" means the Occupational Pension Schemes (Funding Standard) Regulations, 1993 ( S.I. No. 419 of 1993 );

"Irish benefits" means benefits payable by a UK scheme which relate to a period of Irish reckonable service, including--

( a ) additional benefit to which a member is entitled by virtue of the payment while in Irish reckonable service of additional voluntary contributions, and

( b ) additional benefit granted in respect of a transfer, made while the member concerned is in Irish reckonable service, of accrued rights from another scheme;

"Irish member" means a member of a UK scheme who has completed any Irish reckonable service;

"Irish reckonable service" means reckonable service given while in an employment in respect of which contributions are payable under the Social Welfare Acts, or would be payable were the employee between sixteen and sixty-six years of age;

"UK scheme" means an external scheme which is--

( a ) governed by the law of England and Wales, or of Scotland, or of Northern Ireland, and

( b ) managed and controlled in the United Kingdom;

"United Kingdom" means the United Kingdom of Great Britain and Northern Ireland.

3. Any function conferred on the trustees of a UK scheme by the Act or by any regulations made thereunder shall, in so far as it relates to any Irish member of the scheme, be conferred also on any employer of that Irish member who participates in the scheme.

4. Part III of, and the Second Schedule to, the Act shall apply to a UK scheme with and subject to the following modifications--

( a ) Notwithstanding section 28 (1), Part III and the Second Schedule shall not apply to a member of the scheme who is not an Irish member.

( b ) A preserved benefit payable under section 29 shall be calculated on the basis that:--

(i) the period B in paragraph 1 (1) of the Second Schedule shall be the period of Irish reckonable service completed after the commencement of Part III,

(ii) the period E in paragraph 1 (2) of the Second Schedule shall be the period of Irish reckonable service completed after the date on which the basis of the calculation was altered,

(iii) the amount X in paragraph 3 (1) of the Second Schedule shall be the amount of any additional long service benefit or increase in long service benefit to which a member is entitled by virtue of the payment of additional voluntary contributions while in Irish reckonable service,

(iv) the reference in paragraph 1 (3) of the Second Schedule to the period of reckonable service completed after the commencement of Part III shall be construed as a reference to the period of Irish reckonable service completed after the commencement of Part III, and

(v) section 29 (7) shall apply only to a transfer of accrued rights from another scheme made while the member concerned is in Irish reckonable service.

( c ) A preserved benefit payable under Section 30 shall be calculated on the basis that--

(i) for the purposes of section 30 (4) and (5) contributions paid otherwise than while in Irish reckonable service shall not be appropriate contributions, and

(ii) section 30 (6) shall apply only to a transfer of accrued rights from another scheme made while the member concerned is in Irish reckonable service.

5. Part IV of, and the Third Schedule to, the Act and the Funding Standard Regulations shall apply to a UK scheme with and subject to the following modifications--

( a ) Notwithstanding section 43 (2), an actuarial funding certificate in respect of the scheme which has an effective date before 1 January, 1995 shall be submitted to the Pensions Board within nine months of 1 January, 1995.

( b ) Notwithstanding section 44, the scheme shall satisfy the funding standard if, in the opinion of the actuary and having regard to the rules of the scheme and its governing law (including the rules of the scheme and the provisions of its governing law respecting the order of priority accorded to the liabilities of the scheme upon a winding up), the resources of the scheme at the effective date of the actuarial funding certificate would have been sufficient, if the scheme had been wound up on that date, to provide for

(i) the liabilities of the scheme consisting of

(A) Irish benefits in the course of payment to which paragraph 1 of the Third Schedule to the Act relates (the "paragraph 1 Irish benefits"),

(B) Irish benefits, other than paragraph 1 Irish benefits, which consist of additional benefits secured or granted under the scheme on behalf of the member concerned by way of additional voluntary contributions or a transfer of rights from another scheme to which paragraph 2 of the Third Schedule to the Act relates (the "paragraph 2 Irish benefits"),

(C) Irish benefits, other than paragraph 1 Irish benefits and paragraph 2 Irish benefits, payable in respect of reckonable service completed after the commencement of Part III of the Act to which paragraph 3 of the Third Schedule to the Act relates (the "paragraph 3 Irish benefits"), and

(D) the specified percentage of any Irish benefits, other than paragraph 1 Irish benefits, paragraph 2 Irish benefits and paragraph 3 Irish benefits, payable in respect of reckonable service completed prior to such commencement to which paragraph 4 of the Third Schedule to the Act relates (the "paragraph 4 Irish benefits"), and

(ii) the estimated expenses of administering the winding up of the scheme.

( c ) Notwithstanding section 45 of the Act, the specified percentage in respect of the scheme shall be determined as follows--

(i) the Actuary shall determine the percentages, if any, of the paragraph 4 Irish benefits that, in his opinion, could have been provided at the effective date of the first actuarial funding certificate in relation to the scheme from the resources of the scheme if--

(A) the scheme had been wound up on that date, and

(B) the resources of the scheme were applied in discharging its liabilities in accordance with the rules of the scheme and its governing law (including the rules of the scheme and the provisions of its governing law respecting the order of priority accorded to the liabilities of the scheme upon a winding up);

(ii) in determining the percentage referred to in subparagraph (i), the actuary may in any case determine different percentages for each category of membership in the rules of the scheme concerned;

(iii) the first actuarial funding certificate in relation to the scheme shall, in respect of the paragraph 4 Irish benefits, state percentages for each category of membership to which, pursuant to subparagraph (ii), different percentages apply (in this article referred to as "the certified percentage"), being the lesser of;

(A) the percentage determined by the actuary pursuant to subparagraphs (i) and (ii), and

(B) 100 per cent.; and

(iv) the specified percentage shall be--

(A) where an actuarial funding certificate relates to an effective date not more than 10 years after the commencement of Part IV, the certified percentage, and

(B) where an actuarial funding certificate relates to an effective date more than 10 years after such commencement and on such commencement the scheme concerned was a funded scheme, 100 per cent.

( d ) Section 46 of the Act shall apply to the scheme with and subject to the following modifications--

(i) Section 46 (1) (b) shall not apply to the scheme, and

(ii) Notwithstanding section 46 (2), in determining the benefits to be paid on the winding up of the scheme the actuary need not comply with section 48 of the Act.

( e ) Section 48 of the Act shall not apply to the scheme.

( f ) References in section 50 of the Act to members shall be construed as references to Irish members, and references to benefits shall be construed as references to Irish benefits.

( g ) Notwithstanding article 4 (1) of the Funding Standard Regulations, for the purposes of section 42 of the Act--

(i) an actuarial funding certificate in respect of the scheme shall, if it is the first actuarial funding certificate and if the scheme came into operation prior to 1 July, 1991, be in the form set out in Schedule A to these Regulations, or in a form substantially to the like effect, and

(ii) an actuarial funding certificate in respect of the scheme shall, in every other case, be in the form set out in Schedule B to these Regulations or in a form substantially to the like effect.

6. Part V of the Act shall not apply to a UK scheme so long as--

( a ) the trustees of the scheme comply with the requirements of the law by which it is governed as to the provision of reports, accounts and valuations and the disclosure of information concerning the scheme to beneficiaries, prospective beneficiaries and the trade unions representing them, and

( b ) whenever, in accordance with the law by which the scheme is governed, a copy of an annual report of the scheme or a document of the like nature is furnished to--

(i) an Irish member or a prospective Irish member,

(ii) the spouse of an Irish member or a prospective Irish member,

(iii) a person within the application of the scheme and qualifying or prospectively qualifying for its benefits as an Irish member or the spouse or dependent of an Irish member, or

(iv) an authorised trade union representing Irish members

there is also furnished a copy of the latest actuarial funding certificate (if any) prepared under section 42 of the Act.

7. Part VII of the Act shall apply to a UK scheme as though any reference therein to a rule of the scheme were a reference to a rule of the scheme in so far as that rule affects any Irish member.

SCHEDULE A

FIRST ACTUARIAL FUNDING CERTIFICATE FOR A UK SCHEME

THE CERTIFICATE HAS BEEN PREPARED UNDER THE PROVISIONS OF SECTION 42 of THE PENSIONS ACT, 1990 ("THE ACT") FOR SUBMISSION TO THE PENSIONS BOARD BY THE TRUSTEES OF THE SCHEME.

On the basis of the information supplied to me and having regard to the rules of the Scheme and its governing law and to such financial and other assumptions as I consider to be appropriate:--

(1) I hereby state the certified percentage(s) for the above scheme for the purposes of the Occupational Pension Schemes (External Schemes) (United Kingdom) Regulations 1994, (the External Schemes (UK) Regulations).

(2) I am of the opinion that the resources of the scheme at the effective date of this certificate *would/would not have been sufficient if the scheme had been wound up at that date to provide for--

(a) the liabilities of the scheme determined in accordance with Article 5 (b) (i) of the External Schemes (UK) Regulations, and

(b) the estimated expenses of administering the winding up of the scheme.

I therefore certify that as at the effective date of this certificate the scheme *satisfies/does not satisfy the funding standard provided for in Article 5 (b) of the External Schemes (UK) Regulations.

*Delete whichever is not applicable.

SCHEDULE B

ACTUARIAL FUNDING CERTIFICATE FOR A UK SCHEME

THIS CERTIFICATE HAS BEEN PREPARED UNDER THE PROVISIONS OF SECTION 42 of THE PENSIONS ACT, 1990 ("THE ACT") FOR SUBMISSION TO THE PENSIONS BOARD BY THE TRUSTEES OF THE SCHEME.

On the basis of the information supplied to me and having regard to the rules of the Scheme and its governing law and to such financial and other assumptions as I consider to be appropriate I am of the opinion that the resources of the scheme at the effective date of this certificate *would/would not have been sufficient if the scheme had been wound up at the date to provide for--

(a) the liabilities of the scheme determined in accordance with Article 5 (b) (i) of the occupational Pension Schemes (External Schemes) (United Kingdom) Regulations 1994, (the External Schemes (UK) Regulations, and

(b) the estimated expenses of administering the winding up of the scheme.

I therefore certify that as at the effective date of this certificate the scheme *satisfies/does not satisfy the funding standard provided for in Article 5 (b) of the External Schemes (UK) Regulations.

*Delete whichever is not applicable.

GIVEN under the Official Seal of the Minister for Social Welfare, this 21st day of July 1994.

MICHAEL WOODS,

Minister for Social Welfare.

EXPLANATORY NOTE.

These Regulations provide that in the case of U.K. occupational pension schemes with members who have reckonable Irish service, the provisions of the Pensions Act shall apply with certain modifications to the Irish members of the schemes in respect of such service.

The provisions of the Pensions Act which are modified by limiting their application in such cases include these relating to:

Preservation of benefit,

The funding standard,

Winding up of schemes,

Disclosure of information.

The Regulations also provide that functions conferred on the trustees of a U.K. scheme by the Pensions Act and regulations made thereunder in relation to such Irish members of the scheme are also conferred on the employer of those members.