Session 2014 - 15
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Notices of Amendments:                               

1051

 

, continued

 
 

(vi)    

Article 28 of the Welfare Reform and Pensions

 

(Northern Ireland) Order 1999;

 

(vii)    

any provision mentioned in Article 279(2) of the

 

Pensions (Northern Ireland) Order 2005;

 

(b)    

a relevant legislative provision is to be taken to override any

 

of the provisions of the scheme if, and only if, it does so by

 

virtue of any of the following provisions—

 

(i)    

paragraph 3 of Schedule 5 to the Social Security

 

(Northern Ireland) Order 1989;

 

(ii)    

section 125(1);

 

(iii)    

Article 114(1) of the Pensions (Northern Ireland)

 

Order 1995;

 

(iv)    

Article 28(4) of the Welfare Reform and Pensions

 

(Northern Ireland) Order 1999;

 

(v)    

Article 279(1) of the Pensions (Northern Ireland)

 

Order 2005.

 

96C    

Meaning of “normal pension age” in this Chapter

 

(1)    

In this Chapter “normal pension age”, in relation to a category of

 

benefits under a pension scheme, means—

 

(a)    

in a case where the scheme is an occupational pension scheme

 

and those benefits consist only of a guaranteed minimum

 

pension, the earliest age at which the member is entitled to

 

receive the guaranteed minimum pension on retirement from

 

any employment to which the scheme applies,

 

(b)    

in a case where the scheme is an occupational pension scheme

 

and the scheme provides for the member to become entitled to

 

receive any of those benefits at a particular age on retirement

 

from any employment to which the scheme applies, the

 

earliest age at which the member becomes entitled to receive

 

any of the benefits, and

 

(c)    

in any other case, normal minimum pension age as defined by

 

section 279(1) of the Finance Act 2004.

 

(2)    

For the purposes of subsection (1) any scheme rule making special

 

provision as to early retirement on grounds of ill-health or otherwise

 

is to be disregarded.

 

96D    

Interpretation of Chapter

 

In this Chapter—

 

“accrued rights”, in relation to a member of a pension scheme,

 

means rights that have accrued to or in respect of the member to

 

benefits under the scheme;

 

“category”, in relation to benefits, has the meaning given by section

 

89(6);

 

“flexible benefit” has the meaning given by section (Meaning of

 

“flexible benefit”) of the Pension Schemes Act 2014;

 

“guarantee date”, in relation to a member who has received a

 

statement of entitlement, has the meaning given by section 89A;

 

“member” is to be read in accordance with section 89(11);

 

“normal pension age” has the meaning given by section 96C;


 
 

Notices of Amendments:                               

1052

 

, continued

 
 

“pension credit rights”, in relation to a member of a pension

 

scheme, means rights to benefits under the scheme which are

 

attributable (directly or indirectly) to a pension credit;

 

“salary related occupational pension scheme”: an occupational

 

pension scheme is “salary related” if—

 

(ad)    

the scheme is not a scheme under which all the benefits that may

 

be provided are money purchase benefits, and

 

(ae)    

the scheme does not fall within a prescribed class;

 

“scheme rules”, in relation to an occupational pension scheme, has

 

the meaning given by section 96B;

 

“statement of entitlement” has the meaning given by section 89A;

 

“transferrable rights” is to be read in accordance with section

 

89(11).””

 

52  (1)  

In section 97F (power to give transfer notice) is amended as follows.

 

      (2)  

In subsection (1), for “pension credit benefit” substitute “pension credit

 

rights”.

 

      (3)  

After subsection (3) insert—

 

“(3A)    

An eligible member who has pension credit rights in relation to more

 

than one category of benefits under the scheme may exercise the

 

power to give a transfer notice in relation to the pension credit rights

 

in relation to any one or more of those categories.”

 

      (4)  

For subsection (4) substitute—

 

“(4)    

The cash equivalent for the purposes of subsection (1) shall—

 

(a)    

in a case where the pension credit rights relate to a category of

 

benefits other than money purchase benefits, be taken to be

 

the amount shown in the relevant statement under section

 

97H, and

 

(b)    

in a case where the pension credit rights relate to money

 

purchase benefits, be determined by reference to the date the

 

notice under that subsection is given.”

 

      (5)  

For subsection (6A) substitute—

 

“(6A)    

Regulations may—

 

(a)    

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;

 

(b)    

modify the application of this Chapter in relation to a member

 

who has accrued rights to benefits of a prescribed description.

 

(6B)    

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;

 

(c)    

benefits that are not flexible benefits.”

 

53         

For section 97G (restrictions on power to give transfer notice) substitute—

 

“97G  

Restrictions on power to give transfer notice

 

(1)    

An eligible member may not give a transfer notice in relation to a

 

category of benefits if a crystallisation event has occurred in relation

 

to any of the member’s pension credit rights to benefits in that

 

category.


 
 

Notices of Amendments:                               

1053

 

, continued

 
 

(2)    

An eligible member may give a transfer notice in relation to a category

 

of benefits other than money purchase benefits only if—

 

(a)    

the member has been provided with a statement under section

 

97H in relation to benefits in that category, and

 

(b)    

not more than 3 months have passed since the date by

 

reference to which the amount shown in the statement is

 

determined.

 

(3)    

An eligible member may not give a transfer notice in relation to

 

benefits other than flexible benefits if there is less than one year to go

 

until the member reaches normal benefit age.

 

(4)    

Where an eligible member of a qualifying scheme—

 

(a)    

is entitled to give a transfer notice in relation to any category

 

of benefits, and

 

(b)    

is also entitled to make an application to the trustees or

 

managers of the scheme under section 91(1) in relation to

 

benefits in the same category (or would be entitled to do so but

 

for section 91(1A)(a)),

 

    

the member may not, if the scheme so provides, give a transfer notice

 

in relation to that category of benefits without also making an

 

application under section 91(1) in relation to that category of benefits.

 

(5)    

A transfer notice may not be given if a previous transfer notice given

 

by the member to the trustees or managers of the scheme is

 

outstanding.

 

(6)    

For the purposes of subsection (1) a crystallisation event occurs in

 

relation to a member’s pension credit 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, 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.”

 

54  (1)  

Section 97H (salary related schemes: statements of entitlement) is amended as

 

follows.

 

      (2)  

For subsection (1) substitute—

 

“(1)    

The trustees or managers of a qualifying scheme must, on the

 

application of an eligible member, provide the member with a written

 

statement of the amount of the cash equivalent of the member’s

 

pension credit rights in relation to categories of benefits other than

 

money purchase benefits.

 

(1A)    

In the case of a member with pension credit rights in relation to two

 

categories of benefits other than money purchase benefits, the

 

application may relate to pension credit rights in relation to either or

 

both of those categories.”

 

      (3)  

In the heading for “Salary related schemes” substitute “Benefits other than

 

money purchase”.

 

55  (1)  

Section 97J (time for compliance with transfer notice) is amended as follows.


 
 

Notices of Amendments:                               

1054

 

, continued

 
 

      (2)  

In subsection (1), for paragraphs (a) and (b) substitute—

 

“(a)    

in the case of an application that relates to benefits other than

 

money purchase benefits, within 6 months beginning with the

 

valuation date, and

 

(b)    

in the case of an application that relates to money purchase

 

benefits, within 6 months of the date on which the notice is

 

given.”

 

      (3)  

For subsection (7) substitute—

 

“(7)    

In subsection (1)(a), “valuation date” means the date by reference to

 

which the amount shown in the relevant statement under section 97H

 

is determined.”

 

56         

After section 97N insert—

 

“97NA

 Prohibition on excluding transfers of some rights without others etc

 

Except as mentioned in sections 92(4) and 97G(4), a pension scheme

 

may not contain rules that would have the effect of—

 

(a)    

preventing a member from exercising a right under this

 

Chapter in relation to a category of benefits without also

 

exercising a right under this Chapter or otherwise to require a

 

transfer payment to be made in respect of another category of

 

benefits, or

 

(b)    

preventing a member who exercises a right under this Chapter

 

in relation to a category of benefits from accruing rights to

 

benefits in another category.”

 

57  (1)  

Section 97P (interpretation) is amended as follows.

 

      (2)  

In subsection (1), at the appropriate places insert—

 

““category”, in relation to benefits, has the meaning given by section

 

97F(6B);”

 

““flexible benefit” has the meaning given by section (Meaning of

 

“flexible benefit”) of the Pension Schemes Act 2014;”.

 

      (3)  

Omit subsection (2).

 

      (4)  

In subsection (3), for “given to the trustees or managers of a salary related

 

occupational pension scheme” substitute “in relation to benefits other than

 

money purchase benefits”.”

 

58         

Omit section 97Q.

 

59         

In section 125 (overriding requirements) for “Chapters II, III, IV and V of Part

 

IV” substitute “Chapters 2 and 3 of Part 4, Chapters 1 and 2 of Part 4ZA”.

 

60         

In section 126 (extra-statutory benefits), in paragraph (b), for “Chapter II, IV

 

or V of Part IV” substitute “Chapter 2 of Part 4 or Chapter 1 or 2 Part 4ZA”.

 

61         

In section 149 (power to modify certain provisions), in subsection (1), for

 

“Chapters II, III and IV of Part IV” substitute “Chapters 2 and 3 of Part 4 and

 

Chapter 1 of Part 4ZA”.

 

62         

In section 174 (linked qualifying service), in subsection (1)(a)—

 

(a)    

in the opening words, for “Chapter 4 or 5 of Part IV” substitute

 

“Chapter 1 or 2 of Part 4ZA”;

 

(b)    

in sub-paragraph (iii)—

 

(i)    

for “Chapter 4 of Part IV” substitute “Chapter 1 of Part 4ZA”;

 

(ii)    

for “Chapter 5” substitute “Chapter 2”.

 

63         

In section 176 (interpretation), in subsection (1), in paragraph (b) of the

 

definition of “transfer credits”, for “Chapter 5 of Part IV” substitute “Chapter

 

2 of Part 4ZA”.


 
 

Notices of Amendments:                               

1055

 

, continued

 
 

Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))

 

64         

The Pensions (Northern Ireland) Order 1995 is amended as follows.

 

65         

In Article 67A (the subsisting rights provisions: interpretation), in paragraph

 

(9)(a), for head (ii) substitute—

 

“(ii)    

Chapter 2 or 3 of Part 4 of the Pension Schemes Act

 

(certain protection for early leavers) or regulations

 

made under either of those Chapters;

 

(iia)    

Chapter 1 or 2 of Part 4ZA of that Act (transfers and

 

contribution refunds) or regulations made under

 

either of those Chapters;”.

 

66         

In Article 73 (preferential liabilities on winding up), in paragraph (9), for

 

“Chapter 5 of Part IV” substitute “Chapter 2 of Part 4ZA”.

 

67         

In Article 73B (Article 73 and 73A: supplementary), in paragraph (7), for

 

“Chapter 4 of Part IV” substitute “Chapter 1 of Part 4ZA”.

 

Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))

 

68         

The Pensions (Northern Ireland) Order 2005 is amended as follows.

 

69         

In Article 2 (interpretation), in paragraph (4)(a), for head (ii) substitute—

 

“(ii)    

Chapter 2 or 3 of Part 4 of the Pension Schemes Act

 

(certain protection for early leavers) or regulations

 

made under either of those Chapters;

 

(iia)    

Chapter 1 or 2 of Part 4ZA of that Act (transfers and

 

contribution refunds) or regulations made under

 

either of those Chapters;”.

 

70  (1)  

Article 14 (pension liberation: interpretation) is amended as follows.

 

      (2)  

In paragraph (2)(a)—

 

(a)    

after “accrued rights” insert “or an entitlement”;

 

(b)    

in head (ii), for “the applicable rules” substitute “the scheme rules”.

 

      (3)  

In paragraph (3)—

 

(a)    

for sub-paragraph (a) substitute—

 

“(a)    

section 90 of the Pension Schemes Act (right to cash

 

equivalent under Chapter 1 of Part 4ZA of that Act)”;

 

(b)    

in sub-paragraph (b), for “Chapter 5 of Part IV” substitute “Chapter 2

 

of Part 4ZA”.

 

      (4)  

In paragraph (4)(d), for “the applicable rules” substitute “the scheme rules”.

 

      (5)  

Omit paragraph (5).

 

71         

In Article 19 (freezing orders), in paragraph (4)(g), for “salary related

 

schemes” substitute “benefits other than money purchase”.

 

72         

In Article 20 (consequences of freezing order), in paragraph (7), for sub-

 

paragraphs (a) and (b) substitute—

 

“(a)    

Chapter 1 of Part 4ZA of the Pension Schemes Act (transfer

 

rights: general), or

 

(b)    

Chapter 2 of that Part (early leavers: cash transfer sums and

 

contribution refunds).”

 

73         

In Article 68 (inspection of premises), in paragraph (2)(d)—

 

(a)    

for “Chapter 4 of Part IV” substitute “Chapter 1 of Part 4ZA”;

 

(b)    

for “Chapter 5 of Part IV” substitute “Chapter 2 of Part 4ZA”.


 
 

Notices of Amendments:                               

1056

 

, continued

 
 

74         

In Article 119 (restrictions on winding up, discharge of liabilities etc.), in

 

paragraph (6)(b), for “Chapter 5 of Part IV” substitute “Chapter 2 of Part

 

4ZA”.

 

75         

In Article 122 (payment of scheme benefits), in paragraph (3)(b), for “Chapter

 

5 of Part IV” substitute “Chapter 2 of Part 4ZA”.

 

76  (1)  

Schedule 6 (pension compensation provisions) is amended as follows.

 

      (2)  

In paragraph 20(1)(c), for “Chapter 5 of Part IV” substitute “Chapter 2 of Part

 

4ZA”.

 

      (3)  

In paragraph 32(1)(b), for “Chapter 5 of Part IV” substitute “Chapter 2 of Part

 

4ZA”.”

 

Member’s explanatory statement

 

This Schedule amends the transfer provisions, providing rights to transfer specific categories of

 

accrued rights to benefit, where two or more categories are held and accrual of the benefits to be

 

transferred has ceased. It also provides rights to transfer flexible benefits up to and beyond normal

 

retirement age.

 


 

Secretary Iain Duncan Smith

 

Page  28,  line  4,  leave out Schedule 2

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 28.

 

Secretary Iain Duncan Smith

 

Schedule  3,  page  32,  line  10,  leave out paragraphs 3 to 5

 

Member’s explanatory statement

 

The paragraphs left out by this amendment are superseded by NC24 and NS1.

 

Secretary Iain Duncan Smith

 

Schedule  3,  page  36,  line  2,  at end insert—

 

“26A      

In section 13 (improvement notices), in subsection (7)—

 

(a)    

omit the “or” at the end of paragraph (d);

 

(b)    

after paragraph (e) insert “, or

 

(f)    

the Pension Schemes Act 2014.”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 32.

 

Secretary Iain Duncan Smith

 

Schedule  3,  page  38,  line  14,  leave out “In section 90 (codes of practice)” and

 

insert—

 

    “(1)  

Section 90 (codes of practice) is amended as follows.

 

      (2)  

.”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 32.


 
 

Notices of Amendments:                               

1057

 

, continued

 
 

Secretary Iain Duncan Smith

 

Schedule  3,  page  38,  line  15,  at end insert—

 

    “(3)  

In subsection (6), in the definition of “the pensions legislation”—

 

(a)    

omit the “or” at the end of paragraph (c);

 

(b)    

after paragraph (d) insert—

 

“(e)    

Schedule 18 to the Pensions Act 2014, or

 

(f)    

the Pension Schemes Act 2014.”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 32.

 

Secretary Iain Duncan Smith

 

Schedule  3,  page  39,  line  20,  at end insert—

 

“34A      

In section 254 (representative of non-European scheme to be treated as

 

trustee), in subsection (3)—

 

(a)    

omit the “or” at the end of paragraph (c);

 

(b)    

after paragraph (d) insert “, or

 

(e)    

the Pension Schemes Act 2014.”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 32.

 

Secretary Iain Duncan Smith

 

Schedule  3,  page  39,  line  34,  at end insert—

 

“36A      

In section 291 (duty of trustees or managers to act consistently with law of host

 

member state), in subsection (4)—

 

(a)    

omit the “or” at the end of paragraph (c);

 

(b)    

after paragraph (d) insert “, or

 

(e)    

the Pension Schemes Act 2014.”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 32.

 

Secretary Iain Duncan Smith

 

Schedule  4,  page  43,  line  30,  leave out “cash balance benefits or other money

 

purchase” and insert “flexible”

 

Member’s explanatory statement

 

This amendment provides for the definition of “pensions guidance” to reflect the new language of

 

“flexible benefits” introduced by amendment NC31.

 

Secretary Iain Duncan Smith

 

Schedule  4,  page  43,  leave out lines 33 to 36 and insert—

 

““flexible benefit” has the meaning given by section (Meaning of

 

“flexible benefit”) of the Pension Schemes Act 2014;”

 

Member’s explanatory statement

 

This amendment provides that “flexible benefit” in Part 20A of the Financial Services and Markets

 

Act 2000 will have the same meaning as in the Bill - see NC31.


 
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