Made | 16th December 2005 | ||
Coming into operation | 30th December 2005 |
1. | Citation and commencement |
2. | Interpretation |
3. | Determination of assets and liabilities |
4. | Valuation of assets and determination of the amount of liabilities |
5. | Calculation of technical provisions |
6. | Statement of funding principles |
7. | Actuarial valuations and reports |
8. | Recovery plan |
9. | Schedule of contributions |
10. | Content and certification of schedules of contributions |
11. | Records |
12. | Failure to make payments |
13. | Period for obtaining employer's agreement |
14. | Powers of the Regulator |
15. | Guidance relating to actuarial advice |
16. | Modification of shared cost schemes |
17. | Exemptions - general |
18. | Exemption connected with winding up |
19. | Modification of provisions of the Order |
20. | Supplementary, consequential and transitional provisions and savings |
21. | Revocations |
SCHEDULE 1— | Actuary's Certificates |
SCHEDULE 2— | Modifications of the Order and Regulations |
SCHEDULE 3— | Supplementary and Consequential Provisions |
SCHEDULE 4— | Transitional Provisions and Savings |
PART 1— | Transitional provisions |
PART 2— | Savings |
SCHEDULE 5— | Regulations revoked |
(2) In these Regulations "scheme" must be read in appropriate cases in accordance with the modifications of Part IV of the Order made by paragraphs 1, 4, 5 and 7 of Schedule 2 (multi-employer sectionalised schemes, partly foreign schemes and schemes with a partial government guarantee), and "employer" and "member" must be construed accordingly.
Determination of assets and liabilities
3.
—(1) The assets of a scheme to be taken into account for the purposes of Part IV of the Order are the assets attributed to the scheme in the relevant accounts, excluding—
(2) The liabilities of a scheme to be taken into account for the purposes of Part IV of the Order are any liabilities—
(b) in relation to the survivor of a member of the scheme, by virtue of any entitlement to benefits, or right to future benefits which he has under the scheme rules in respect of the member.
(3) For the purposes of paragraph (2)—
(4) Where rights under an insurance policy are excluded under paragraph (1)(c), the liabilities secured by the policy shall be disregarded for the purposes of paragraph (2).
(5) Where arrangements are being made by the scheme for the transfer to or from it of accrued rights and any pension credit rights, until such time as the trustees or managers of the scheme to which the transfer is being made ("the receiving scheme") have received assets of the full amount agreed by them as consideration for the transfer, it shall be assumed—
Valuation of assets and determination of the amount of liabilities
4.
—(1) Subject to paragraph (2), the value to be given to the assets of a scheme for the purposes of Part IV of the Order is the value given to those assets in the relevant accounts, less the amount of the external liabilities.
(2) The value to be given to any rights under an insurance policy taken into account under regulation 3(1) is the value the actuary considers appropriate in the circumstances of the case.
(3) In paragraph (1), "the external liabilities" of a scheme are such liabilities of the scheme (other than liabilities within regulation 3(2)) as are shown in the net assets statement in the relevant accounts, and their amount shall be taken to be the amount shown in that statement in respect of them.
(4) The assets of the scheme shall be valued, and the amount of the liabilities determined, by reference to the same date.
Calculation of technical provisions
5.
—(1) Subject to paragraphs (2) and (3), it is for the trustees or managers of a scheme to determine which method and assumptions are to be used in calculating the scheme's technical provisions.
(2) The method used in calculating a scheme's technical provisions must be an accrued benefits funding method.
(3) In determining which accrued benefits funding method and which assumptions are to be used, the trustees or managers must—
take account of the recommendations of that person.
(4) The principles to be followed under paragraph (3) are—
(c) the mortality tables used and the demographic assumptions made must be based on prudent principles, having regard to the main characteristics of the members as a group and expected changes in the risks to the scheme, and
(d) any change from the method or assumptions used on the last occasion on which the scheme's technical provisions were calculated must be justified by a change of legal, demographic or economic circumstances.
Statement of funding principles
6.
—(1) A statement under Article 202 must include the following matters, in addition to those specified in that Article—
(2) The first statement under Article 202 in respect of a scheme must be prepared by the trustees or managers within 15 months after the effective date of the first actuarial valuation obtained by them under Article 203.
(3) A statement under Article 202 must be reviewed, and if necessary revised—
(4) A statement under Article 202 must specify the date on which it was prepared, or, if it has been revised, the date on which it was last revised.
Actuarial valuations and reports
7.
—(1) In addition to the regular valuations provided for in Article 203(1)(a), the trustees or managers of a scheme must obtain an actuarial valuation where the Regulator has given directions under Article 210(2)(b)(i) as to the manner in which the scheme's technical provisions are to be calculated.
(2) Where the trustees or managers have obtained an actuarial valuation or an actuarial report, they must ensure that it is received by them—
(c) in the case of a report, within 12 months after its effective date.
(3) Where the assets taken into account in an actuarial valuation include rights under an insurance policy, the valuation must state the reason why the value given to such rights is considered appropriate in the circumstances of the case.
(4) An actuarial valuation must include—
(5) An actuarial report must include an assessment by the actuary of changes in the value of the scheme's assets since the last actuarial valuation was prepared.
(6) In paragraph (4), "the actuary's estimate of the solvency of the scheme" means—
and the amount of the excess or, as the case may be, the shortfall, and
(b) where the actuary considers that it is not practicable to make an estimate in accordance with paragraph (a), an estimate of the solvency of the scheme on the effective date of the valuation made in such manner as the actuary considers appropriate in the circumstances of the case.
(7) Where the actuary's estimate of solvency is made under paragraph (6)(b), the valuation must include a brief account of the principles adopted in making the estimate.
Recovery plan
8.
—(1) Where Article 205(1) applies, and the trustees or managers of a scheme are required, following an actuarial valuation, either to prepare a recovery plan or to review and, if necessary, revise an existing recovery plan, they must do so—
(2) In preparing or revising a recovery plan, the trustees or managers must take account of the following matters—
the recommendations of that person.
(3) A recovery plan must be reviewed, and if necessary revised, where the Regulator has given directions under Article 210(2)(b)(ii) as to the period within which, and manner in which, a failure to meet the statutory funding objective is to be remedied.
(4) Where paragraph (3) applies, the review and any necessary revision must be completed within a reasonable period after the date of the Regulator's directions.
(5) A recovery plan may be reviewed and, if necessary, revised where the trustees or managers consider that there are reasons that may justify a variation to it.
(6) A recovery plan must specify the date on which it was prepared, or, if it has been revised, the date on which it was last revised.
(7) A copy of any recovery plan sent to the Regulator by the trustees or managers of a scheme must be accompanied—
(8) The commencement of the winding up of an eligible scheme, as defined in Article 110 (eligible schemes), during the recovery period specified in the scheme's recovery plan is a notifiable event for the purposes of Article 64(2)(a).
Schedule of contributions
9.
—(1) A schedule of contributions for a scheme must be prepared within 15 months after the effective date of the first actuarial valuation following the establishment of the scheme.
(2) Where a schedule of contributions has been prepared, it must be reviewed and, if necessary, revised—
Content and certification of schedules of contributions
10.
—(1) A schedule of contributions must show the rates and due dates of all contributions (other than voluntary contributions) payable towards the scheme by, or on behalf of, the employer and the active members during the relevant period.
(2) In this regulation, "the relevant period" means the period of five years after the date on which the schedule is certified or, in a case where—
that longer period.
(3) The schedule must show separately—
(4) Where additional contributions are required in order to give effect to a recovery plan, the rates and dates of those contributions must be shown separately from the rates and dates of contributions otherwise payable.
(5) The schedule must be signed by the trustees or managers of the scheme, and make provision for signature by the employer in order to signify his agreement to the matters included in it.
(6) The schedule must incorporate the actuary's certification, in the relevant form set out in Schedule 1.
Records
11.
—(1) The trustees or managers of a scheme to which Part IV of the Order applies must keep records of all contributions made to the scheme by any person, showing separately—
(2) The trustees or managers must also keep records of any action taken by them to recover—
Failure to make payments
12.
The trustees or managers of a scheme are not required to give notice, under Article 207(2) (requirement to notify Regulator of failure likely to be of material significance), of a failure to make a payment in accordance with the schedule of contributions where they have given the Regulator notice of the failure under—
Period for obtaining employer's agreement
13.
Where, following an actuarial valuation, the trustees or managers of a scheme are required under Article 208(1) to obtain the agreement of the employer to any of the matters mentioned in sub-paragraphs (a) to (d) of that provision, they must do so within 15 months after the effective date of the valuation.
Powers of the Regulator
14.
—(1) In exercising any of the powers conferred by Article 210 in the case of a scheme of the kind referred to in regulations 5(3)(b) and 8(2)(e), the Regulator must take into account any relevant recommendations made to the trustees or managers under those regulations.
(2) In exercising the power in Article 210(2)(b)(i) to give directions as to the manner in which a scheme's technical provisions are to be calculated, the Regulator must include a direction specifying the effective date by reference to which assets are valued and the amount of liabilities is determined.
Guidance relating to actuarial advice
15.
When advising the trustees or managers of a scheme on any of the matters specified in Article 209(1), the actuary shall have regard to the guidance note "Occupational Pension Schemes – scheme funding matters on which advice of actuary must be obtained" (GN 49) prepared and published by the Institute of Actuaries and the Faculty of Actuaries and approved for the purposes of these Regulations by the Department, with such revisions as have been so approved[11].
Modification of shared cost schemes
16.
—(1) The trustees of a shared cost scheme to which Part IV of the Order applies may by resolution modify the scheme with a view to making such provision that, where any additional contributions are required to give effect to a recovery plan, those contributions are payable by the employer and the members in the appropriate proportions, unless the employer and the trustees or managers agree—
(2) In paragraph (1)—
that otherwise the assets of the scheme will (or are likely to) fall short of its technical provisions, the rates of contributions payable by both the active members and the employer may be increased in specified proportions, and
(3) For the purposes of paragraph (2) there shall be disregarded—
Exemptions - general
17.
—(1) Part IV of the Order does not apply to—
(b) a pay-as-you-go scheme;
(c) a scheme which is established under section 48 of the Northern Ireland Act 1998[12] (pensions of members), or which was established under Part II of the Ministerial Salaries and Members' Pensions Act (Northern Ireland) 1965[13] or Article 3 of the Assembly Pensions (Northern Ireland) Order 1976[14];
(d) a section or part of a scheme which is treated as a scheme by virtue of paragraph 4 or 5, as the case may be, of Schedule 2 and—
(e) a scheme which—
(f) a section 615(6) scheme which has fewer than 100 members;
(g) a scheme which has fewer than two members;
(h) a scheme which has fewer than 12 members, where all the members are trustees of the scheme and either—
(i) a scheme which has fewer than 12 members, where a company is a trustee of the scheme and all the members of the scheme are directors of the company and either—
(j) a scheme under which the only benefits provided for (other than money purchase benefits) are death benefits, if the death benefits are secured by insurance policies or annuity contracts;
(k) a scheme which is the subject of a scheme failure notice under Article 106 or 114, or
(l) subject to regulation 18, a scheme which is being wound up.
(2) In paragraph (1)—
(3) In paragraph (2), "local authority" has the meaning given by Article 2(2) of the Superannuation (Northern Ireland) Order 1972[23].
(4) Where Part IV of the Order ceases to apply to a scheme to which it previously applied, because the scheme satisfies any of the criteria for exemption in paragraph (1), that does not affect any rights or obligations arising before that Part ceased to apply.
Exemption connected with winding up
18.
—(1) Where the winding up of a scheme begins on or after the commencement date, the exemption provided for in regulation 17(1)(l) is subject to the condition set out in paragraph (2).
(2) The condition referred to in paragraph (1) is that the trustees or managers of the scheme ensure that they receive, before the end of each scheme year following the scheme year in which the winding up of the scheme begins, the actuary's estimate of the solvency of the scheme as at the end of the preceding scheme year.
(3) In paragraph (2)—
and the amount of the excess or, as the case may be, the shortfall;
(b) where the actuary considers that it is not practicable to make an estimate in accordance with paragraph (a), an estimate of the solvency of the scheme at the end of the relevant scheme year made in such manner as the actuary considers appropriate in the circumstances of the case;
(b) such other period (if any) exceeding six months but not exceeding 18 months as is selected by the trustees or managers in connection with—
Modification of provisions of the Order
19.
Schedule 2 has effect for the purpose of modifying Part IV of the Order and these Regulations as they apply in the circumstances specified in that Schedule.
Supplementary, consequential and transitional provisions and savings
20.
—(1) Schedule 3 has effect for the purpose of making supplementary provisions and consequential amendments connected with the commencement of Part IV of the Order and the coming into operation of these Regulations.
(2) Schedule 4 has effect for the purpose of making transitional modifications of the Order and these Regulations, and saving the effect of repealed provisions of the 1995 Order and provisions revoked by these Regulations.
Revocations
21.
The regulations specified in column (1) of Schedule 5 are revoked to the extent specified in column (3), subject to the savings in Schedule 4.
Sealed with the Official Seal of the Department for Social Development on
16th December 2005.
L.S.
John O'Neill
A senior officer of the Department for Social Development
Signature | Date |
Name | Qualification |
Address | Name of employer (if applicable) |
Adherence to statement of principles
2.
I hereby certify that, in my opinion, this schedule of contributions is consistent with the Statement of Funding Principles dated [dd/mm/yyyy].
The certification of the adequacy of the rates of contributions for the purpose of securing that the statutory funding objective can be expected to be met is not a certification of their adequacy for the purpose of securing the scheme's liabilities by the purchase of annuities, if the scheme were to be wound up.
Signature | Date |
Name | Qualification |
Address | Name of employer (if applicable) |
(2) Condition A is that contributions payable to the scheme by an employer, or by a member in employment under that employer, are allocated to that employer's section (or, if more than one section applies to the employer, to the section which is appropriate in respect of the employment in question).
(3) Condition B is that a specified part or proportion of the assets of the scheme is attributable to each section and cannot be used for the purposes of any other section.
(4) In their application to a scheme—
Part IV of the Order and these Regulations shall apply as if the section in relation to which those conditions have ceased to be satisfied were a separate scheme.
(5) For the purposes of sub-paragraphs (1) to (4), any provisions of the scheme by virtue of which contributions or transfers of assets may be made to make provision for death benefits are disregarded.
(6) Where sub-paragraph (1) or (4) applies and, by virtue of any provisions of the scheme, contributions or transfers of assets to make provision for death benefits are made to a section ("the death benefits section") the assets of which may only be applied for the provision of death benefits, the death benefits section shall be treated as if it were a separate scheme for the purpose of Part IV of the Order and these Regulations.
(7) For the purpose of this paragraph, any provisions of a scheme by virtue of which assets attributable to one section may on the winding up of the scheme or a section be used for the purposes of another section are disregarded.
(8) In their application in a case of the kind described in sub-paragraph (1) or (4), the forms set out in Schedule 1 are modified as follows—
2.
In the application of Article 208 (matters requiring agreement of the employer) to a scheme in relation to which there is more than one employer, references to the employer shall have effect as if they were references to a person nominated by the employers, or by the rules of the scheme, to act as the employers' representative for the purposes of the section or, if no such nomination is made—
3.
In the application of Part IV of the Order and these Regulations to a scheme which has no active members, references to the employer have effect as if they were references to the person who was the employer immediately before the occurrence of the event after which the scheme ceased to have any such members.
(3) The second case referred to in sub-paragraph (1) is where a scheme—
(4) Subject to regulation 17, where this paragraph applies, Part IV of the Order and these Regulations shall apply as if each section of the scheme were a separate scheme.
5.
—(1) This paragraph applies in the case described in sub-paragraph (2).
(2) The case referred to in sub-paragraph (1) is where a scheme either—
and part of the scheme is or was treated as a separate scheme under section 611(3) of the Taxes Act 1988[27].
(3) Subject to regulation 17, where this paragraph applies, Part IV of the Order and these Regulations shall apply as if the separated parts of the scheme were separate schemes.
shall be omitted;
(b) in Article 205—
(c) in Article 206(6)(b)(i) for "by the end of the period specified in the recovery plan" there shall be substituted "within two years after that date";
(d) in Article 210(1)(d) the words from "with respect to" to the end shall be omitted;
(e) in regulations 6(2) and (3)(a), 7(2)(a), 9(1) and (2)(a) and 13 for "15 months" there shall be substituted "12 months";
(f) in regulation 7(2) the words "or an actuarial report" shall be omitted;
(g) regulations 7(2)(c) and (5), 8, 9(2)(c) and 17(1)(a) and (e) to (i) shall be omitted;
(h) in regulation 10—
(ii) in paragraph (4) for "give effect to a recovery plan" there shall be substituted "comply with Article 205", and
(i) in Schedule 1, in the first of the alternative statements in the form of certification of the adequacy of the rates of contributions for "by the end of the period specified in the recovery plan dated [dd/mm/yyyy]" there shall be substituted "within two years after the effective date of the last actuarial valuation".
(3) In the case of a pre-23rd September 2005 scheme—
(ii) paragraphs (2) to (6) shall be omitted, and
(b) these Regulations apply as if, in addition to the modifications in sub-paragraph (2)(e) to (i), paragraph 2(a)(i) of Schedule 4 were modified so that, after "this Schedule" there were inserted "and, without prejudice to any of those requirements, by reference to an effective date which is no later than 22nd September 2006".
(4) In sub-paragraph (3), "pre-23rd September 2005 scheme" has the meaning given by Article 3 of the Pensions (2005 Order) (Commencement No. 7) Order (Northern Ireland) 2005[28].
Article 208 and regulation 13 shall apply as if they were subject to the modifications set out in sub-paragraphs (2) and (3).
(2) The modifications of Article 208 are as follows—
(3) The modifications of regulation 13 are as follows—
(4) Where the power of the trustees or managers to determine the rates of contributions payable by the employer without the employer's agreement is subject to conditions, the modifications provided for in sub-paragraphs (2) and (3) have effect only in circumstances where the conditions are satisfied.
(5) In the case of a scheme under which the rates of contributions payable by the employer are determined by the actuary without the agreement of the employer, Article 206(6) shall apply as if it required that, in addition to the matters specified there, the actuary's certificate must state that the rates shown in the schedule of contributions are not lower than the rates he would have provided for if he, rather than the trustees or managers of the scheme, had the responsibility of preparing or revising the schedule, the statement of funding principles and any recovery plan.
(6) In the case to which sub-paragraph (5) applies, regulation 10(6) and Schedule 1 apply as if the form of certification of the adequacy of the rates of contributions shown in the schedule of contributions included an additional statement that—
(7) Where the power of the actuary to determine the rates of contributions payable by the employer without the employer's agreement is subject to conditions, the modifications provided for in sub-paragraphs (5) and (6) have effect only in circumstances where the conditions are satisfied.
(2) Where this paragraph applies—
11.
—(1) In circumstances where the actuary considers that, because of the possibility of significant changes in the value of the assets of the scheme or in the scheme's technical provisions since the effective date of the last actuarial valuation, he is unable to certify the schedule of contributions in the terms set out in sub-paragraph (b) of Article 206(6), that sub-paragraph shall apply as if it provided for a statement that the rates shown in that schedule are such that—
(2) In circumstances where the statutory funding objective was met on the effective date of the last actuarial valuation but the actuary considers that, having regard to—
he is unable to certify the schedule of contributions in the terms set out in sub-paragraph (b)(ii) of Article 206(6), that sub-paragraph shall apply as if it provided for a statement that the rates shown in that schedule are such that the statutory funding objective could have been expected on that date to be met by the end of the period for which the schedule is to be in force.
(3) In the case to which sub-paragraph (1) applies, regulation 10(6) and Schedule 1 apply as if for the alternative statements in the form of certification of the adequacy of the rates of contributions shown in the schedule of contributions there were substituted—
(4) In the case to which sub-paragraph (2) applies, regulation 10(6) and Schedule 1 apply as if for the alternative statements in the form of certification of the adequacy of the rates of contributions shown in the schedule of contributions there were substituted—
(5) Where paragraph 6 applies, sub-paragraphs (1) and (3) of this paragraph apply as if the references to the period specified in the recovery plan were to the period of two years from the effective date of the last actuarial valuation.
(3) In regulation 6(2) (information to be included in an election) for sub-paragraph (g) there shall be substituted the following sub-paragraph—
(4) In regulation 18 (requirement as to resources of the scheme)—
(5) In regulation 72 (transitional requirements as to sufficiency of resources of salary-related schemes)—
(6) The amendments in this paragraph have effect subject to paragraph 17 of Schedule 4.
Amendment of the Occupational Pension Schemes (Transfer Values) Regulations
2.
—(1) The Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996[33] shall be amended in accordance with sub-paragraphs (2) to (4).
(2) In regulation 1(2) (interpretation) after the definition of "the 1985 Regulations" there shall be inserted the following definition—
(3) In regulation 7[34] (manner of calculation and verification of cash equivalents)—
shall be omitted.
(4) In regulation 8 (further provisions as to calculation of cash equivalents and increases and reductions of cash equivalents (other than guaranteed cash equivalents))—
Amendment of the Occupational Pension Schemes (Winding Up) Regulations
3.
—(1) The Occupational Pension Schemes (Winding Up) Regulations (Northern Ireland) 1996[37] shall be amended in accordance with sub-paragraphs (2) and (3).
(2) In regulation 12(3) (winding up of sectionalised schemes, etc.)—
(3) In regulation 13 (hybrid schemes) paragraphs (6) and (7) shall be omitted.
Amendment of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations
4.
In regulation 4(2) of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations (Northern Ireland) 1997[38] (exclusions from jurisdiction), after sub-paragraph (g) there shall be added "or the requirements under Part IV of the Pensions (Northern Ireland) Order 2005 (scheme funding).".
Amendment of the Occupational Pension Schemes (Scheme Administration) Regulations
5.
—(1) The Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997[39] shall be amended in accordance with sub-paragraphs (2) and (3).
(2) In regulation 1(2) (interpretation) after the definition of "the 2000 Act"[40] there shall be inserted the following definition—
(3) In regulation 16A(2)[41] (circumstances in which notice of an employer's failure to make payments to trustees or managers need not be given) for sub-paragraph (b) there shall be substituted the following sub-paragraph—
Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations
6.
—(1) Subject to paragraph 7, the Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997[42] ("the Disclosure Regulations") shall be amended in accordance with sub-paragraphs (2) to (6).
(2) In regulation 1(2) (interpretation)—
(3) In regulation 5 (information to be made available to individuals)—
(4) In regulation 6(1)(c)[45] (availability and content of annual report)—
(5) In regulation 7 (availability of actuarial valuation, schedule of contributions, payment schedule and statement of investment principles)—
(6) In Schedule 2 (information to be made available to individuals) after paragraph 16 there shall be added the following paragraphs—
19.
The actuary's estimate of solvency contained in the last actuarial valuation under Article 203 of the 2005 Order received by the trustees.
20.
A summary of any recovery plan prepared under Article 205 of the 2005 Order which is currently in force.
21.
Whether the scheme has been modified under Article 210(2)(a) of the 2005 Order, is subject to directions under Article 210(2)(b) of that Order or bound by a schedule of contributions imposed under Article 210(2)(c) of that Order, and if so an account of the circumstances in which the modification was made, the direction given or the schedule of conditions imposed.
22.
Whether any payment has been made to the employer under Article 37 (payment of surplus to employer)—
and, if so, the amount of the payment.".
7.
—(1) Until the trustees or managers of a scheme have prepared a schedule of contributions under Article 206 (in accordance with regulation 9(1) or paragraph 5 of Schedule 4), the Disclosure Regulations have effect in relation to a scheme to which Part IV of the Order applies as if—
(2) The requirement referred to in sub-paragraph (1)(b) is that, before 22nd September in 2006 and each subsequent year the trustees or managers of the scheme furnish all members and beneficiaries (except excluded persons) with the following information, in the form of a summary funding statement—
(c) any estimate by the actuary of the solvency of the scheme, or, if the actuary has made more than one estimate of solvency, the latest such estimate;
(d) whether any payment has been made to the employer under Article 37 of the 1995 Order—
and if so, the amount of the payment.
(3) The trustees or managers of a scheme are not required to comply with the requirement in sub-paragraph (2) in any year if the scheme had fewer than 100 members during the 12 months ending on 31st August in that year.
(4) A summary funding statement furnished under sub-paragraph (2) must be accompanied by a written statement that further information about the scheme is available, giving the address to which enquiries about it should be sent.
Amendment of the Pension Sharing (Valuation) Regulations 2000
8.
—(1) The Pension Sharing (Valuation) Regulations (Northern Ireland) 2000[47] shall be amended in accordance with sub-paragraphs (2) to (4).
(2) In regulation 1(2) (interpretation) after the definition of "the 1999 Order" there shall be inserted the following definition—
(3) In regulation 4 (occupational pension schemes: manner and calculation and verification of cash equivalents)—
shall be omitted.
(4) In regulation 5 (occupational pension schemes: further provisions as to calculation of cash equivalents and increases and reductions of cash equivalents)—
(e) in paragraph (5)[50] for "paragraphs (3) and (3F)" there shall be substituted "paragraph (3)".
Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations
9.
—(1) The Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000[51] shall be amended in accordance with sub-paragraphs (2) and (3).
(2) In regulation 1(2) (interpretation) after the definition of "the 2000 Act"[52] there shall be inserted the following definition—
(3) In regulation 16 (adjustments to the amount of pension credit - occupational pension schemes which are underfunded on the valuation day)—
Amendment of the Pension Sharing (Pension Credit Benefit) Regulations
10.
—(1) The Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000[55] shall be amended in accordance with sub-paragraphs (2) to (4).
(2) In regulation 1(2) (interpretation) after the definition of "the 2000 Act"[56] there shall be inserted the following definition—
(3) In regulation 24 (manner of calculation and verification of cash equivalents)—
shall be omitted.
(4) In regulation 27 (increases and reductions of cash equivalents before a statement of entitlement has been sent to the eligible member)—
Amendment of the Stakeholder Pension Schemes Regulations
11.
In regulation 19 of the Stakeholder Pension Schemes Regulations (Northern Ireland) 2000[59] (requirement for trustees of a stakeholder pension scheme established under a trust) the words "except the reference to Article 56 (minimum funding requirement) in Article 35(2) and Article 35(5)(b) of that Order" shall be omitted.
Amendment of the Occupational Pension Schemes (Republic of Ireland Schemes Exemption) Regulations
12.
—(1) The Occupational Pension Schemes (Republic of Ireland Schemes Exemption) Regulations (Northern Ireland) 2000[60] shall be amended in accordance with sub-paragraphs (2) to (4).
(2) In regulation 1(2) (interpretation) after the definition of "the Order" there shall be inserted the following definition—
(3) In regulation 2(a) (exemption of Republic of Ireland schemes - general provision) after "the Order" there shall be inserted "or the 2005 Order".
(4) In the Schedule (legislation from which the Republic of Ireland schemes are exempt) at the end there shall be added—
Part IV of the 2005 Order | Scheme funding". |
Amendment of the Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations
13.
In regulation 4(5) of the Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations (Northern Ireland) 2005[61] (circumstances in which trustees or managers do not need to notify failure to pay contributions), in the substituted regulation 16A of the Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997, for paragraph (d) there shall be substituted the following paragraph—
immediately before the commencement date, and
(b) becomes subject to Part IV of the Order (scheme funding) on that date.
2.
Article 203 (actuarial valuations and reports) shall apply to the scheme as if—
(b) neither paragraph (1)(a) nor paragraph (4) applied in relation to the first valuation under the Order, and
(c) paragraph (3)(a) were omitted.
3.
—(1) Except where sub-paragraph (3), (5) or (7) applies, the trustees or managers of the scheme must obtain the first valuation under the Order by reference to an effective date not more than one year after the commencement date.
(2) Sub-paragraph (3) applies where—
in accordance with any such provisions which continue in operation under Part 2 of this Schedule, an actuarial valuation by reference to an effective date on or after 21st September 2002, and
(b) where neither sub-paragraph (5) nor sub-paragraph (7) applies.
(3) Where this sub-paragraph applies, the trustees or managers must obtain the first actuarial valuation under the Order by reference to an effective date which is—
(4) Subject to sub-paragraph (8), sub-paragraph (5) applies where—
and the trustees or managers have determined before that date, or determine subsequently, that the valuation should be obtained by reference to 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.
(5) Where this sub-paragraph applies, the trustees or managers must obtain the first valuation under the Order by reference to the effective date they have determined.
(6) Subject to sub-paragraph (8), sub-paragraph (7) applies where—
(7) Where this sub-paragraph applies, the trustees or managers must obtain the first valuation under the Order by reference to the effective date they have determined.
(8) In a case where, but for this provision, sub-paragraph (5) would apply, by virtue of the receipt by the trustees or managers of a certificate in the terms set out in Article 57(2)(a) of the 1995 Order, and sub-paragraph (7) would also apply, by virtue of the occurrence of an event of the kind described in regulation 13 of the 1996 Regulations, sub-paragraph (5) applies only if the certificate was received before the event occurred and sub-paragraph (7) applies only if the event occurred before the certificate was received.
4.
The trustees or managers must ensure that the first valuation under the Order is received by them—
5.
Article 206 (schedule of contributions) shall apply to the scheme as if it included a requirement for the trustees or managers of the scheme to prepare a schedule of contributions ("the first schedule of contributions under the Order") within the same period as that within which they are required by paragraph 4 of this Schedule to ensure that they receive the first valuation under the Order.
6.
In the circumstances described in paragraph 4(b), (c), and (d), regulation 6(2) (first statement of funding principles) applies to the scheme, and regulations 8(1)(a) (recovery plan) and 13 (period for obtaining employer's agreement) apply in relation to the first valuation under the Order, as if the period there referred to were the same period as that within which the trustees or managers are required by paragraph 4 to ensure that they receive the first valuation under the Order.
7.
References in Articles 203 to 210 to actuarial valuations or schedules of contributions shall be taken to exclude any such valuation or schedule of contributions under the 1995 Order as in force before the commencement date or as continued in force by paragraphs 9 to 16.
9.
Articles 56 and 58 to 60 of the 1995 Order and regulations 15 to 17 and 19 to 27 of, and Schedules 2 and 4 to, the 1996 Regulations continue to apply in relation to the scheme from the commencement date until the date on which the first schedule of contributions under the Order comes into force.
10.
Where—
those provisions shall apply to the scheme on and after the commencement date in respect of that valuation.
11.
Where—
those provisions shall apply to the scheme on and after the commencement date in respect of that valuation.
12.
Where—
those provisions shall apply to the scheme on and after the commencement date in respect of that valuation, subject to the modification that the valuation must be obtained within the period of six months beginning with the date on which the relevant event occurred.
13.
Where—
those provisions shall apply to the scheme on and after the commencement date in respect of that valuation and statement.
14.
Where a requirement to obtain a valuation is preserved by any of paragraphs 10 to 13, Article 57(5) to (7) of the 1995 Order, regulations 3 to 9 of the 1996 Regulations and (except in the case to which paragraph 13 applies) regulation 14 of, and Schedule 1 to, those Regulations shall apply in respect of that valuation.
15.
Where, immediately before the commencement date, the trustees or managers of the scheme were required under Article 57(1)(b) of the 1995 Order and regulation 18 of the 1996 Regulations (occasional and periodic certification of adequacy of contributions) to obtain annual certificates as to the adequacy of contributions payable towards the scheme, those provisions, Article 57(5) to (7) of that Order and Schedule 3 to those Regulations shall apply to the scheme until the effective date of the first valuation under the Order relating to the scheme.
16.
Article 61 of the 1995 Order (supplementary), regulations 2 (interpretation) and 29 of, and Schedule 5 to, the 1996 Regulations (modifications) shall apply, so far as material, on and after the commencement date in relation to the provisions of that Order and those Regulations saved by paragraphs 9 to 15.
17.
Where any provision of the 1995 Order or the 1996 Regulations applies to the scheme on or after the commencement date by virtue of this Schedule, any reference to that provision in the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996[63] ("the Contracting-out Regulations") shall apply in relation to the scheme on and after the commencement date as if—
18.
Where any provision of the 1995 Order or the 1996 Regulations applies to the scheme on or after the commencement date by virtue of this Schedule, regulation 4(2) of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations (Northern Ireland) 1997[65] shall be taken to include a reference to that provision notwithstanding its repeal by the Order in accordance with the Commencement Order or the revocation of the 1996 Regulations by regulation 21.
19.
Any reference to the 1995 Order or the 1996 Regulations in—
shall apply to the scheme on and after the commencement date as if, where the reference is to a provision of the 1995 Order, the repeal of that provision by the Order had not come into operation on that date in accordance with the Commencement Order, and, where the reference is to a provision in the 1996 Regulations, those Regulations had not been revoked by regulation 21.
Column (1) | Column (2) | Column (3) |
Citation | Reference | Extent of Revocation |
The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations Regulations) (Northern Ireland) 1996 | S.R. 1996 No. 570 | The whole Regulations |
The Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 1996 | S.R. 1996 No. 584 | Regulation 12 |
The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1997 | S.R. 1997 No. 160 | In the Schedule, paragraph 7 |
The Personal and Occupational Pension Schemes (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 1997 | S.R. 1997 No. 544 | Regulation 3 |
The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1999 | S.R. 1999 No. 486 | Regulation 6 |
The Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2000 | S.R. 2000 No. 69 | Regulation 3 |
The Pension Sharing (Consequential and Miscellaneous Amendments) Regulations (Northern Ireland) 2000 | S.R. 2000 No. 335 | Regulation 3 |
The Occupational Pension Schemes (Minimum Funding Requirement and Miscellaneous Amendments) Regulations (Northern Ireland) 2002 | S.R. 2002 No. 64 | Regulation 2 |
The Social Security and Pensions (Financial Services and Markets Act 2000) (Consequential Amendments) Regulations (Northern Ireland) 2003 | S.R. 2003 No. 256 | Regulation 7 |
The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) (Amendment) Regulations (Northern Ireland) 2004 | S.R. 2004 No. 481 | The whole Regulations |
The Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 | S.R. 2005 No. 168 | In Schedule 2, paragraph 1 |
The Occupational Pension Schemes (Winding up, etc.) Regulations (Northern Ireland) 2005 | S.R. 2005 No. 171 | In the Schedule, paragraph 9 |
The Occupational Pension Schemes (Winding Up) (Modification for Multi-employer Schemes and Miscellaneous Amendments) Regulations (Northern Ireland) 2005 | S.R. 2005 No. 363 | Regulation 3 |
The Occupational Pension Schemes (Employer Debt, etc.) (Amendment) Regulations (Northern Ireland) 2005 | S.R. 2005 No. 387 | Regulation 4 |
[2] See Article 8(b) of S.R. 1999 No. 481back
[3] S.I. 2005/255 (N.I. 1)back
[5] The definition of "pension credit rights" was inserted by paragraph 50(3) of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))back
[6] See section 1 of the Pensions Act 2004 (c. 35)back
[7] Article 41 was amended by paragraph 10 of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4 (N.I.)) and is amended by paragraph 46 of Schedule 10 to the Pensions (Northern Ireland) Order 2005back
[8] Article 75 was amended by Article 248 of the Pensions (Northern Ireland) Order 2005back
[9] Article 74(3)(c) was amended by Article 60 of S.I. 2002/1555back
[10] Article 49(9)(b) was inserted by Article 11(1) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))back
[11] Copies of GN 49 may be obtained from the Institute of Actuaries, Staple Inn Hall, High Holburn, London WC1V 7QJ and from the Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PPback
[15] Article 23 was substituted by Article 32(3) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))back
[17] The definition of "relevant benefits" was amended by paragraph 10(1) of Schedule 10 to the Finance Act 1999 (c.16). Section 612(1) is repealed by Part 3 of Schedule 42 to the Finance Act 2004 (c. 12) with effect from 6th April 2006back
[18] 2003 c. 1; section 393B is inserted by section 249(3) of the Finance Act 2004 with effect from 6th April 2006back
[19] Section 611A was inserted by paragraph 15 of Schedule 6 to the Finance Act 1989 (c. 26) and subsection (1) was substituted by paragraph 5 of Schedule 5 to the Finance Act 1999. The section is repealed by Part 3 of Schedule 42 to the Finance Act 2004 with effect from 6th April 2006back
[20] Section 615(6) was amended by paragraph 11 of Schedule 10 to the Finance Act 1999back
[21] Section 590 was amended by paragraph 3 of Schedule 6 to the Finance Act 1989back
[23] S.I. 1972/1073 (N.I. 10)back
[24] Article 74(3)(c) was amended by Article 60 of S.I. 2002/1555back
[25] This applies where the statutory funding objective was not met on the effective date of the last actuarial valuationback
[26] This applies where the statutory funding objective was met on the effective date of the last actuarial valuationback
[27] Section 611 is repealed by Part 3 of Schedule 42 to the Finance Act 2004 (c. 12) with effect from 6th April 2006back
[28] S.R. 2005 No. 543 (C. 37)back
[29] S.R. 1996 No. 493; relevant amending regulations are S.R. 1997 No. 160 and S.R. 2002 No. 109back
[30] Paragraph (1A) was inserted by regulation 2(16)(b) of S.R. 2002 No. 109back
[31] Paragraph (3) was amended by paragraph 5(13)(b) of the Schedule to S.R. 1997 No. 160back
[32] Paragraph (6) was amended by regulation 2(16)(c) of S.R. 2002 No. 109back
[33] S.R. 1996 No. 619; relevant amending regulations are S.R. 1997 No. 160 and S.R. 2005 No. 171back
[34] Regulation 7(3) was amended by paragraph 11(4) of the Schedule to S.R. 1997 No. 160back
[35] Paragraphs (4) to (4L) were substituted for paragraphs (4) to (4B) by regulation 15(3) of S.R. 2005 No. 171back
[36] Paragraph (5) was amended by regulation 15(4) of S.R. 2005 No. 171back
[37] S.R. 1996 No. 621, to which there are amendments not relevant to these Regulationsback
[38] S.R. 1997 No. 39, to which there are amendments not relevant to these Regulationsback
[39] S.R. 1997 No. 94; relevant amending regulations are S.R. 2000 No. 69, S.R. 2003 No. 256 and S.R. 2005 No. 421back
[40] The definition of "the 2000 Act" was inserted by regulation 11(2) of S.R. 2003 No. 256back
[41] Regulation 16A was inserted by regulation 2(3) of S.R. 2000 No. 69 and amended by regulation 3(7) of S.R. 2005 No. 421back
[42] S.R. 1997 No. 98; relevant amending regulations are S.R. 1997 No. 160, S.R. 2000 No. 262 and S.R. 2002 No. 74back
[43] Paragraph (12AA) was inserted by regulation 14(3) of S.R. 2002 No. 74back
[44] Paragraph (12A) was inserted by paragraph 19(4)(d) of the Schedule to S.R. 1997 No. 160back
[45] Sub-paragraph (c) was substituted by paragraph 19(5) of the Schedule to S.R. 1997 No. 160back
[46] S.R. 1996 No. 570; regulation 30 was amended by regulation 7(8) of S.R. 1997 No. 160back
[47] S.R. 2000 No. 144; relevant amending regulations are S.R. 2000 No. 335 and S.R. 2005 No. 171back
[48] Paragraphs (3) to (3L) were substituted for paragraphs (3) to (3B) by regulation 16(3) of S.R. 2005 No. 171back
[49] Paragraph (4) was amended by regulation 16(4) of S.R. 2005 No. 171back
[50] Paragraph (5) was substituted by regulation 10(4) of S.R. 2000 No. 335 and amended by regulation 16(5) of S. R. 2005 No. 171back
[51] S.R. 2000 No. 145; relevant amending regulations are S.R. 2003 No. 256 and S.R. 2005 No. 171back
[52] The definition of "the 2000 Act" was inserted by regulation 15(2)(a)(i) of S.R. 2003 No. 256back
[53] Paragraphs (2) to (2L) were substituted for paragraphs (2) to (2B) by regulation 17(2) of S.R. 2005 No. 171back
[54] Paragraph (3) was amended by regulation 17(3) of S.R. 2005 No. 171back
[55] S.R. 2000 No. 146; relevant amending regulations are S.R. 2003 No. 256 and S.R. 2005 No. 171back
[56] The definition of "the 2000 Act" was inserted by regulation 16(2)(a)(i) of S.R. 2003 No. 256back
[57] Paragraphs (4) to (4M) were substituted for paragraphs (4) to (4B) by regulation 18(5) of S.R. 2005 No. 171back
[58] Paragraph (5) was amended by regulation 18(6) of S. R. 2005 No. 171back
[59] S.R. 2000 No. 262, to which there are amendments not relevant to these Regulationsback
[60] S.R. 2000 No. 382, to which there are amendments not relevant to these Regulationsback
[62] S.R. 1996 No. 570; relevant amending regulations are S.R. 1997 Nos. 160 and 544back
[63] S.R. 1996 No. 493; relevant amending regulations are S.R. 1997 No. 160 and S.R. 2002 No. 109back
[64] S.R. 2005 No. 543 (C. 37)back
[65] S.R. 1997 No. 39, to which there are amendments not relevant to these Regulationsback
[66] S.R. 1996 No. 621, amended by S.R. 1997 No. 160, S.R. 1999 No. 486, S.R. 2000 No. 335, S.R. 2002 No. 64, S.R. 2004 Nos. 60.and 187, S.R. 2005 Nos. 20, 168 and 171back
[67] S.R. 1996 No. 585; relevant amending regulations are S.R. 1997 Nos. 160 and 544, S.R. 2002 No. 64, S.R. 2004 No. 60 and S.R. 2005 No. 20back
[68] S.R. 2005 No. 168, amended by S.R. 2005 No. 387back