Source: http://www.legislation.gov.uk/nisi/2005/255/schedules/made
Timestamp: 2018-09-23 01:44:36
Document Index: 650420361

Matched Legal Cases: ['ART 1', 'ART 2', 'ART 3', 'ART 4', 'ART 1', 'art 1']

SCHEDULE 2THE RESERVED REGULATORY FUNCTIONS
PART 1FUNCTIONS UNDER THE PENSION SCHEMES ACT
1. The power by direction under section 95(4) to grant an extension of the period within which the trustees or managers of a scheme are to carry out certain duties.
2. The power by direction under section 97J(2) to extend the period for compliance with a transfer notice.
3. The power under regulations made by virtue of section 164(4) to require a person to pay a penalty.
PART 2FUNCTIONS UNDER THE 1995 ORDER
4. The power to make an order under Article 3(1) prohibiting a person from being a trustee.
PART 3FUNCTIONS UNDER THE 1999 ORDER
20. The power by direction under Article 4(3)(b) to remove a scheme from the register of stakeholder pension schemes.
PART 4FUNCTIONS UNDER THIS ORDER
21. The power to make or extend a restraining order under Article 16.
24. The power to make a freezing order under Article 19.
25. The power to make an order under Article 21(3) extending the period for which a freezing order has effect.
26. The power to make an order under Article 22 validating action taken in contravention of a freezing order.
27. The power to make an order under Article 24 directing that specified steps are taken.
28. The power to make an order under Article 26 giving a direction where a freezing order ceases to have effect.
29. The power to make an order under Article 27(3) directing the notification of members.
30. The power to issue a contribution notice under Article 34.
31. The power to issue a direction under Article 37(4) to the trustees or managers of an occupational pension scheme.
32. The power to issue a revised contribution notice under Article 37(9).
33. The power to issue a financial support direction under Article 39.
34. The power to issue a contribution notice under Article 43.
35. The power to issue a direction under Article 46(4) to the trustees or managers of an occupational pension scheme.
36. The power to issue a revised contribution notice under Article 46(9).
37. The power to make a restoration order under Article 48.
38. The power to issue a contribution notice under Article 51.
39. The power to issue a notice under Article 66 requiring a report to be provided to the Regulator.
40. The power to make a direction under Article 71(8) extending the retention period for documents taken into possession under Article 70.
41. The power to make a direction under Article 73(10) extending the retention period for documents taken into possession under that Article.
42. The power to make an order under Article 210 modifying a scheme, giving directions or imposing a schedule of contributions.
43. The power to issue a ring-fencing notice under Article 268.
44. The power to vary or revoke under Article 96—
(ii)by the Regulator in compliance with a direction of the Tribunal under Article 97.
SCHEDULE 3RESTRICTED INFORMATION HELD BY THE REGULATOR: CERTAIN PERMITTED DISCLOSURES TO FACILITATE EXERCISE OF FUNCTIONS
the Charities Act (Northern Ireland) 1964 (c. 33);
Part III of the Pension Schemes Act; or
The Department of Enterprise, Trade and Investment.
Part XV of the Companies Order,
the Insolvency Order, or
Part II of the Companies (No. 2) (Northern Ireland) Order 1990 (NI 10).
Part XIV of the Companies Act 1985 (c. 6),
Part III of the Companies Act 1989 (c. 40),
Part I of the Export and Investment Guarantees Act 1991 (c. 67) (apart from sections 5 and 6),
Part III of the Pension Schemes Act 1993 (c. 48),
Part V of the Police Act 1997 (c. 50),
the Pensions Act 2004 (c. 35),
the Financial Services and Markets Act 2000 (c. 8).
The Charity Commissioners. The Pensions Regulator Tribunal. Functions under the Charities Act 1993 (c. 10). Any of its functions.
the Pension Schemes Act, or
the Pension Schemes Act 1993 (c. 48).
Part III of the Pension Schemes Act 1993,
Part III of the Pension Schemes Act, or
The Official Receiver for Northern Ireland or the Official Receiver in England and Wales. Functions under the enactments relating to insolvency.
An inspector appointed by the Department of Enterprise, Trade and Investment. Functions under Part XV of the Companies Order.
An inspector appointed by the Secretary of State. Functions under Part XIV of the Companies Act 1985 (c. 6).
Article 440 of the Companies Order, or
section 168(3) or (5) of that Act, or
A body designated under section 326(1) of that Act. Functions in its capacity as a bodys designated under that section.
A recognised professional body (within the meaning of Article 350 of the Insolvency Order). Functions in its capacity as such a body under that Order.
SCHEDULE 4THE BOARD OF THE PENSION PROTECTION FUND
1.—(1) Subject to sub-paragraph (2), the Board may authorise—
(c)any of its committees or sub-committees (other than the committee established under section 112 of the Pensions Act 2004 (c. 35) or any of its sub-committees),
(2) Sub-paragraph (1) does not apply to the non-executive functions of the Board (which must, by virtue of section 112(2) of the Pensions Act 2004, be discharged by the committee established under that section).
3.—(1) Where the Board makes arrangements under paragraph 2(1) for any of its functions to be exercised by a person on its behalf, those arrangements may also provide for that person to exercise on behalf of the Board any delegable review function.
(2) Where the Regulator is required to or may exercise any function on behalf of the Board by virtue of—
(a)Article 164(4) or 171(8) (administrative functions relating to levies),
(b)Article 164(7)(b) or 171(10)(b) (recovery of levies), or
(c)regulations under Article 164(8) or 171(11) (collection, recovery and waiver of levies),
(3) In this paragraph, “delegable review function”, in relation to a delegated function, means—
(a)any function, by virtue of Article 189(1)(a) or (3)(a), to give a review decision in respect of any reviewable matter arising from the exercise of the delegated function;
(b)in relation to any function exercisable by virtue of paragraph (a), any other function under regulations under Article 189(1) in connection with the giving of a review decision;
(c)any function conferred by paragraph (2) of Article 101 (supplementary powers), so far as that paragraph relates to any function mentioned in paragraph (a) or (b).
“executive member” has the meaning given by section 108(7)(a) of the Pensions Act 2004 (c. 35);
“review decision” has the meaning given by Article 189(1).
SCHEDULE 5TRANSFER OF PROPERTY, RIGHTS AND LIABILITIES TO THE BOARD
2.—(1) Subject to sub-paragraph (2), the property, rights and liabilities so transferred include—
3.—(1) Without prejudice to the generality of Article 145 and subject to sub-paragraph (2), any legal proceedings or applications to any authority pending immediately before the transfer by or against any of the trustees or managers of the scheme in their capacity as trustees or managers shall be continued by or against the Board.
4. The transfer is binding on all persons, even if, apart from this paragraph, it would have required the consent or concurrence of any person.
5. No person shall have any power, in consequence of the transfer, to terminate or modify any interest or right which was vested in the trustees or managers of the scheme.
6. Any reference in any agreement, document or instrument of any description to the trustees or managers of the scheme shall have effect so far as necessary for the purposes of giving effect to the transfer as a reference to the Board.
7.—(1) The Board must take all such steps as may be required to secure that the vesting in the Board, by virtue of Article 145, of any foreign property, right or liability is effective under the relevant foreign law.
SCHEDULE 6PENSION COMPENSATION PROVISIONS
1. This Schedule applies for the purposes of determining the compensation payable where the Board assumes responsibility for an eligible scheme (“the scheme”) in accordance with this Chapter.
3.—(1) Compensation is payable in accordance with this paragraph where, immediately before the assessment date, a person is entitled to present payment of a pension under the admissible rules of the scheme.
(i)to the pensioner’s pensionable service, or
(ii)(directly or indirectly) to a pension credit to which the pensioner became entitled under Article 26(1)(b) of the 1999 Order.
(2) Subject to sub-paragraph (4), the pensioner’s widow or widower is entitled to periodic compensation commencing on the day following the pensioner’s death and continuing for life.
(3) The annual rate of the periodic compensation at any time is half of the annual rate of the periodic compensation (including any increases under paragraph 28) to which the pensioner would at that time have been entitled under paragraph 3 in respect of the pension had the pensioner not died.
(4) The pensioner’s widow or widower is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.
(5) In this paragraph “the pension” and “the pensioner” are to be construed in accordance with paragraph 3.
5.—(1) Compensation is payable in accordance with this paragraph where immediately before the assessment date—
(a)a person is entitled to present payment of a pension under the admissible rules of the scheme,
(b)payment of that pension is postponed, and
(c)he has attained normal pension age in relation to the pension.
(2) That person (“the postponed pensioner”) is entitled to periodic compensation in respect of that pension (“the pension”) commencing at the assessment date and continuing for life or, in a case to which sub-paragraph (7) applies, until such time as entitlement to the pension would have ceased under the admissible rules.
(4) In sub-paragraph (3) “the protected pension rate” means what would have been the annual rate of the pension, under the admissible rules, if the postponement of payment had ceased immediately before the assessment date.
(5) In determining for the purposes of sub-paragraph (4) the annual rate of the pension immediately before the assessment date, any recent discretionary increase is to be disregarded if paragraph 35(3) applies.
(6) Where the pension is attributable (directly or indirectly) to a pension credit, the reference in sub-paragraph (1)(c) to “normal pension age” is to be read as a reference to “normal benefit age”.
(7) This sub-paragraph applies where the pension was not attributable to—
(a)the postponed pensioner’s pensionable service, or
(b)(directly or indirectly) to a pension credit to which the postponed pensioner became entitled under Article 26(1)(b) of the 1999 Order.
(a)paragraph 24 (commutation), and
7.—(1) Compensation is payable in accordance with this paragraph where immediately before the assessment date—
(2) That person is entitled to compensation in the form of a lump sum of an amount equal to 100% of the amount of the scheme lump sum which would have been payable had the postponement ceased immediately before the assessment date.
(4) Where the scheme lump sum is attributable (directly or indirectly) to a pension credit, the reference in sub-paragraph (1)(c) to “normal pension age” is to be read as a reference to “normal benefit age”.
(5) This paragraph does not apply in relation to a lump sum to which a person is entitled by reason of commuting any part of a pension under the scheme.
Active members who have not attained normal pension age at assessment date
11.—(1) Compensation is payable in accordance with this paragraph where a person who, under the admissible rules, is (immediately before the assessment date) an active member of the scheme has not, before that date, attained normal pension age in respect of his rights under the admissible rules of the scheme to a pension.
(2) If the active member survives to attain normal pension age in respect of that pension (“the pension”), he is entitled to periodic compensation in respect of the pension commencing at that age and continuing for life.
For this purpose the references in sub-paragraph (5) to the active member’s pensionable service, accrual rate and pensionable earnings are to be read as references to the part of his pensionable service in question and to his accrual rate and pensionable earnings in respect of that part.
(d)paragraph 30 (power of Department to change percentage rates by order).
12.—(1) This paragraph applies for the purposes of paragraph 11(4)(b).
(b)in any other case, the revaluation percentage of the accrued amount.
(a)the percentage increase referred to in paragraph 12(4)(a) of Schedule 7 to the Pensions Act 2004 (c. 35), and
(5) For the purposes of sub-paragraph (4)(b) “the maximum revaluation rate” in relation to the revaluation period is—
(b)in any other case, the percentage referred to in paragraph 12(5)(b) of Schedule 7 to the Pensions Act 2004.
This is subject to paragraph 29 (power of Board to determine maximum revaluation rate etc.).
13.—(1) This paragraph applies where the active member dies on or after the assessment date.
(2) Subject to sub-paragraph (4), the widow or widower of the active member is entitled to periodic compensation commencing on the day following the active member’s death and continuing for life.
(a)where the active member died after attaining normal pension age, half of the annual rate of the periodic compensation (including any increases under paragraph 28) to which the member would at that time have been entitled under paragraph 11 in respect of the pension had the member not died, and
(i)normal pension age had been the member’s actual age immediately before the date of the member’s death, and
(ii)the member had not died.
14.—(1) Compensation is payable in accordance with this paragraph where immediately before the assessment date, under the admissible rules of the scheme, an active member of the scheme has not attained normal pension age in respect of his rights to a lump sum (“the scheme lump sum”).
(6) If the accrual rates or pensionable earnings differ in respect of different parts of the active member’s pensionable service relating to the scheme lump sum, an amount is calculated in accordance with the formula in sub-paragraph (5) in respect of each of those parts and the accrued amount is the aggregate of those amounts.
Pension credit members who have not attained normal benefit age at assessment date
21.—(1) Paragraphs 15, 18 and 19 apply in relation to a pension credit member of the scheme who has not attained normal benefit age at the assessment date as they apply to a deferred member who has not attained normal pension age at that date, subject to the modifications in sub-paragraph (2).
(2) The modifications are as follows—
(a)in paragraph 15(1) and (2) the references to normal pension age are to be read as references to normal benefit age,
(b)in paragraph 15(4) for the words from “the aggregate of” to the end substitute “the accrued amount”,
(c)for paragraph 15(5) substitute—
“(5) In sub-paragraph (4) “the accrued amount” means an amount equal to the initial annual rate of the pension which, under the admissible rules, the deferred member is entitled to receive at normal benefit age by virtue of his pension credit rights.”,
(d)for paragraph 18(1)(b) substitute—
“(b)the pension was attributable (directly or indirectly) to a pension credit to which the deferred pensioner became entitled under Article 26(1)(b) of the 1999 Order.”,
(e)in paragraph 19(1) and (2) the references to normal pension age are to be read as references to normal benefit age,
(f)in paragraph 19(4) for the words “from the aggregate of” to the end substitute “the accrued amount”,
(g)for paragraph 19(5) substitute—
“(5) In sub-paragraph (4) “the accrued amount” means an amount equal to the amount of the scheme lump sum which, under the admissible rules, the deferred member is entitled to receive at normal benefit age by virtue of his pension credit rights.”, and
(h)paragraph 19(6) does not apply.
Compensation in form of dependants' benefits
23.—(1) Regulations may provide for compensation to be payable, in such circumstances as may be prescribed, to or in respect of—
(a)partners of prescribed descriptions of persons of prescribed descriptions who were members of the scheme immediately before the assessment date,
(b)dependants of prescribed descriptions of persons of prescribed descriptions who—
(i)were members of the scheme, or had rights to benefits payable under the scheme rules in respect of a member, immediately before the assessment date,
(ii)became entitled to benefits under the scheme rules in respect of a member on or after the assessment date but before the time the trustees or managers of the scheme received a transfer notice under Article 144, or
(iii)have become entitled to compensation under paragraph 22 (survivors who do not meet conditions for scheme benefits at assessment date), in relation to the scheme.
(2) Regulations may in particular—
(a)provide for compensation in the form of periodic or lump sum payments,
(b)provide for periodic compensation to be payable for a prescribed period,
(c)apply paragraphs 28 and 29(2) (annual increases in respect of periodic compensation) in respect of compensation in the form of periodic payments (with or without modifications).
24.—(1) In prescribed circumstances, a person entitled to periodic compensation under paragraph 5, 8, 11 or 15 may opt to commute for a lump sum a portion of the periodic compensation with effect from the time it becomes payable.
(2) Except in such circumstances as may be prescribed, the portion commuted under sub-paragraph (1) must not exceed 25%.
(3) Any reduction required to be made under paragraph 26 (compensation cap) must be made before determining the amount of a person’s periodic compensation which may be commuted under this paragraph.
25.—(1) Regulations may prescribe circumstances in which, and conditions subject to which, a person may become entitled to—
(2) The Board must determine the amount of the actuarial reduction to be applied to compensation where a person becomes so entitled by virtue of regulations under this paragraph.
(3) Where, by virtue of this paragraph, periodic compensation is payable to a person under paragraph 11 or 15 before that person attains normal pension age—
(a)a person becomes entitled to relevant compensation in respect of a benefit (“benefit A”) under the scheme, and
(b)sub-paragraph (2)(a) or (b) applies,
the amount of the compensation must be restricted in accordance with sub-paragraph (3).
(a)this paragraph applies if—
(i)the annual value of benefit A exceeds the compensation cap, and
(ii)paragraph (b)(i) does not apply, and
(b)this paragraph applies if—
(i)at the same time as the person becomes entitled to relevant compensation in respect of benefit A he also becomes entitled to relevant compensation in respect of one or more other benefits under the scheme or a connected occupational pension scheme (“benefit or benefits B”), and
(ii)the aggregate of the annual values of benefit A and benefit or benefits B exceeds the compensation cap.
(3) Where the relevant compensation in respect of benefit A is required to be restricted in accordance with this sub-paragraph—
(a)if that compensation is within sub-paragraph (4)(a), the protected pension rate for the purposes of paragraph 3(3)(a) is the cap fraction of the rate determined in accordance with paragraph 3(5);
(b)if that compensation is within sub-paragraph (4)(b), the protected notional pension for the purposes of paragraph 11(3)(a) is the cap fraction of the rate determined in accordance with paragraph 11(4);
(c)if that compensation is within sub-paragraph (4)(c), the protected amount for the purposes of paragraph 14(3) is the cap fraction of the amount determined in accordance with paragraph 14(4);
(d)if that compensation is within sub-paragraph (4)(d), the protected pension rate for the purposes of paragraph 15(3)(a) is the cap fraction of the rate determined in accordance with paragraph 15(4);
(e)if that compensation is within sub-paragraph (4)(e), the protected amount for the purposes of paragraph 19(3) is the cap fraction of the amount determined in accordance with paragraph 19(4).
(4) For the purposes of this paragraph “relevant compensation” means—
(a)periodic compensation under paragraph 3 (in a case to which sub-paragraph (7) of that paragraph applies),
(b)periodic compensation under paragraph 11,
(c)compensation under paragraph 14,
(d)periodic compensation under paragraph 15, or
(e)compensation under paragraph 19.
(5) For the purposes of this paragraph, “the cap fraction” means—
C is the compensation cap, and
V is the annual value of benefit A or, in a case to which sub-paragraph (2)(b) applies, the aggregate of the annual values of benefit A and benefit or benefits B.
(6) For the purposes of this paragraph the “annual value” of a benefit in respect of which a person has become entitled to relevant compensation means—
(a)if the relevant compensation is within sub-paragraph (4)(a) and neither paragraph (b) nor (c) applies, the amount of the protected pension rate for the purposes of paragraph 3(3)(a);
(b)if the relevant compensation is within sub-paragraph (4)(a) and is in respect of a pension of which a portion has been commuted for a lump sum, the amount which would have been the protected pension rate for those purposes had that portion not been commuted;
(c)if the relevant compensation is within sub-paragraph (4)(a) and the person became entitled to a relevant lump sum under the scheme at the same time as he became entitled to the pension to which that compensation relates, an amount equal to the aggregate of—
(i)the protected pension rate for the purposes of paragraph 3(3)(a), and
(ii)the annualised value of the relevant lump sum;
(d)if the relevant compensation is within sub-paragraph (4)(b), the amount of the protected notional pension for the purposes of paragraph 11(3)(a);
(e)if the relevant compensation is within sub-paragraph (4)(c), the annualised value of the protected amount for the purposes of paragraph 14(3);
(f)if the relevant compensation is within sub-paragraph (4)(d), the amount of the protected pension rate for the purposes of paragraph 15(3)(a);
(g)if the relevant compensation is within sub-paragraph (4)(e), the annualised value of the protected amount for the purposes of paragraph 19(3);
and for the purposes of determining the annual value of a benefit any reduction required to be made by this paragraph is to be disregarded.
“annualised value” of a lump sum or amount means the annualised actuarially equivalent amount of that sum or amount determined in accordance with actuarial factors published by the Board;
“the compensation cap”, in relation to the person who becomes entitled to relevant compensation in respect of benefit A, means—
the amount specified by the Department by order, or
has not attained the age of 65, or
has attained the age of 66,
at the time he first becomes entitled to that compensation, that amount as adjusted by the Board in accordance with actuarial adjustment factors published by it;
and for the purposes of this paragraph, except in prescribed circumstances, the scheme is connected with another occupational pension scheme if the same person is or was an employer in relation to both schemes.
(8) For the purposes of sub-paragraph (6)(c) a lump sum under the scheme is a relevant lump sum if the person’s entitlement to the lump sum—
(9) Regulations may provide for this paragraph to apply with prescribed modifications where a person becomes entitled to relevant compensation in respect of a benefit and he has previously—
(a)become entitled to relevant compensation in respect of a benefit or benefits under the scheme or a connected occupational pension scheme, or
(b)become entitled to one or more lump sums under the scheme or a connected occupational pension scheme.
(10) Regulations may prescribe sums which are to be disregarded for the purposes of this paragraph.
Increasing the compensation cap in line with earnings
27. Where, pursuant to paragraph 27 of Schedule 7 to the Pensions Act 2004, the Secretary of State makes an order under paragraph 26(7) of that Schedule, the Department may make a corresponding order for Northern Ireland.
Board’s powers to alter rates of revaluation and indexation
29.—(1) The Board may determine the percentage that is to be the maximum revaluation rate for the purposes of paragraphs 12(4) and 17(4), and where it does so paragraphs 12(5) and 17(5) do not apply.
Department’s powers to vary percentage paid as compensation
31.—(1) The powers conferred by this paragraph are exercisable in relation to cases where—
Power to modify Schedule in its application to certain schemes
33. Where the scheme is a prescribed scheme or a scheme of a prescribed description, this Schedule applies with such modifications as may be prescribed.
34.—(1) In this Schedule “normal pension age”, in relation to the scheme and any pension or lump sum under it, means the age specified in the admissible rules as the earliest age at which the pension or lump sum becomes payable without actuarial adjustment (disregarding any admissible rule making special provision as to early payment on the grounds of ill health).
(2) Where different ages are specified in relation to different parts of a pension or lump sum—
(a)this Schedule has effect as if those parts were separate pensions or, as the case may be, lump sums, and
(b)references in relation to a part of the pension or lump sum to the normal pension age are to be read as references to the age specified in the
admissible rules as the earliest age at which that part becomes payable under the scheme without actuarial adjustment (disregarding any special provision as to early payment on grounds of ill health or otherwise).
(3) In any case where the Board is satisfied that it is not possible to identify the normal pension age from the admissible rules of the scheme, it may, having regard to those rules, determine how the normal pension age is to be determined.
Scheme rules, admissible rules etc.
35.—(1) In this Schedule, in relation to the scheme, each of the following expressions has the meaning given by this paragraph—
“admissible rules”,
“recent rule changes”, and
“recent discretionary increase”.
(2) “The admissible rules” means the scheme rules disregarding—
(a)in a case where sub-paragraph (3) applies, the recent rule changes, and
(b)in any case, any scheme rule which comes into operation on, or operates by reference to, the winding up of the scheme or any associated event.
(3) This sub-paragraph applies if the combined effect of the recent rule changes and recent discretionary increases is such that, if account were taken of those changes and increases in calculating the protected liabilities in relation to the scheme at the relevant time, those protected liabilities would be greater than they would be if all those changes and increases were disregarded.
(4) In sub-paragraph (3) “the relevant time” means the time immediately before the assessment period which begins on the assessment date.
(5) Subject to sub-paragraph (6), “recent rule changes” means—
(a)changes to the scheme rules which took effect in the period of three years ending with the assessment date, or were made in that period and took effect by reference to an earlier time, and
(b)any scheme rules which come into operation on, or operate by reference to—
(i)an insolvency event in relation to the employer or any associated event, or
(ii)any prescribed event relating to the future of the employer as a going concern.
(6) “Recent rule changes” does not include—
(a)any scheme rules or changes attributable to paragraph 3 of Schedule 5 to the Social Security (Northern Ireland) Order 1989 (NI 13), section 125 of the Pension Schemes Act, Article 114 of the 1995 Order, Article 28(4) of the 1999 Order or Article 279 of this Order (overriding requirements),
(b)any statutory provision, or any scheme rules or changes which are required or reasonably necessary to comply with a statutory provision,
(c)any scheme rules or changes that come into operation on, or operate by reference to, the winding up of the scheme, or any associated event, and
(d)any scheme rules or changes of a prescribed description.
(7) “Recent discretionary increase” means an increase in the rate of any pension in payment or postponed pension under the scheme rules which took effect in the period mentioned in sub-paragraph (5)(a).
(8) For the purposes of sub-paragraph (7) an increase (“the relevant increase”) in the rate of a pension in payment or postponed pension is to be disregarded to the extent that it does not exceed—
(a)the amount by which the pension in question is required to be increased by virtue of—
(i)the admissible rules, or
(ii)sections 9(1) and 105 of the Pension Schemes Act (requirement to index and pay guaranteed minimum pensions), or
(b)if greater, the appropriate percentage of the rate of that pension.
(9) For the purposes of sub-paragraph (8)(a), no increase in the rate of a pension which is made at the discretion of the trustees or managers of the scheme, the employer or any other person is to be regarded as an increase required by virtue of the admissible rules.
(10) For the purposes of sub-paragraph (8)(b), “the appropriate percentage” is the percentage increase referred to in paragraph 35(10) of Schedule 7 to the Pensions Act 2004.
Accrual rate, pensionable service and pensionable earnings
36.—(1) In this Schedule, in relation to a member’s entitlement to benefits under the scheme, each of the following expressions has the meaning given by this paragraph—
“accrual rate”,
“pensionable earnings”, and
(2) “Accrual rate” means the rate at which under the admissible rules rights to the benefits accrue over time by reference to periods of pensionable service.
(3) “Pensionable earnings” means the earnings by reference to which the benefits are calculated under the admissible rules.
(4) Subject to sub-paragraph (5), “pensionable service” means—
(a)actual service in any description of employment to which the scheme applies which qualifies the member for benefits under the scheme, and
(b)any notional service allowed in respect of the member under the admissible rules which qualifies the member for such benefits.
(5) The service within sub-paragraph (4)(b) does not include—
(a)service attributable (directly or indirectly) to a pension credit, or
(b)service of a prescribed description.
37.—(1) In this Schedule—
SCHEDULE 7RESTRICTED INFORMATION HELD BY THE BOARD: CERTAIN PERMITTED DISCLOSURES TO FACILITATE EXERCISE OF FUNCTIONS
the Charities Act (Northern Ireland) 1964 (c. 33),
the Pension Schemes Act 1993.
Part III of the Pension Schemes Act,
Part III of the Pension Schemes Act 1993 (c. 48), or
A recognised professional body (within the meaning of section 391 of the Insolvency Act 1986 (c. 45)). under that Act. Functions in its capacity as such a body
SCHEDULE 8REVIEWABLE MATTERS
1. The issue of a determination notice under Article 107 approving a notice issued under Article 106.
2. The failure to issue a determination notice under Article 107.
3. The issue of, or failure to issue, a notice under Article 106 by the Board by virtue of Article 108 (Board’s duty where failure to comply with Article 106).
4. The issue of, or failure to issue—
(a)a scheme failure notice under paragraph (2) of Article 114 (scheme rescue not possible), or
(b)a withdrawal notice under paragraph (3) of that Article (scheme rescue has occurred).
5. Any direction given under paragraph (2) of Article 118 (directions during an assessment period) or any variation or revocation of such a direction under paragraph (4) of that Article.
6. The issue of a notice under Article 120(2) (power to validate contraventions of Article 119).
9. The approval of, or failure to approve, a valuation in respect of an eligible scheme under Article 128(2).
10. The issue of, or failure to issue, a withdrawal notice under or by virtue of—
12. The issue of, or failure to issue, a determination notice under Article 136(3) (whether value of scheme assets less than aggregate of liabilities etc.).
13. The issue of, or failure to issue, a determination notice under Article 137(6) (authorisation to continue as closed scheme).
14. Any direction given under Article 138(7) (directions about winding up of scheme with sufficient assets to meet protected liabilities) and any variation or revocation of such a direction.
15. The failure by the Board to give a transfer notice under Article 144.
16. Any determination by the Board of a person’s entitlement to compensation under the pension compensation provisions or the failure in any case to make such a determination.
17. Any failure by the Board to make a payment required by Article 147(4)(b) (adjustments to be made where Board assumes responsibility for a scheme).
18. Any determination by the Board under Article 164(3)(a) (the eligible schemes in respect of which the initial levy or the pension protection levy is imposed) or the failure to make such a determination.
20. The making of a fraud compensation payment under Article 165(1), the amount of any such payment or the failure to make such a payment.
21. The issue of, or failure to issue, a notice under Article 166(2) (scheme rescue not possible or having occurred in case of scheme which is not eligible etc.).
22. Any settlement date determined by the Board under Article 167(2) (recovery of value) or the failure to determine a settlement date under that provision.
23. Any determination by the Board under Article 167(4) (recovery of value: whether amount received in respect of particular act or omission) or the failure to make such a determination.
24. The making of a payment under Article 169(1) (interim payments), the amount of any such payment or the failure to make such a payment.
25. Any term or condition imposed by the Board—
(a)under Article 168(2) on the making of a fraud compensation payment; or
(b)under paragraph (4) of Article 169 (interim payments) on the making of a payment under paragraph (1) of that Article.
26. Any determination by the Board under Article 169(3)(b) (interim payments) that the amount of a payment was excessive.
27. Any date determined by the Board under Article 170(4) (earliest date for making a fraud compensation transfer payment).
28. Any determination by the Board under Article 170(6) (fraud compensation transfer payments: whether payment is received in respect of particular act or omission).
29. Any determination by the Board under Article 171(7)(a) (occupational pension schemes in respect of which any fraud compensation levy is imposed) or the failure to make such a determination.
30. The amount of any fraud compensation levy payable in respect of an occupational pension scheme determined by the Board under Article 171(7)(b).
SCHEDULE 9DEFERRAL OF RETIREMENT PENSIONS AND SHARED ADDITIONAL PENSIONS
PART 1PRINCIPAL AMENDMENTS OF CONTRIBUTIONS AND BENEFITS ACT
1. Schedule 5 to the Contributions and Benefits Act (increase of pension where entitlement is deferred) is amended as follows.
2. For the heading, substitute “PENSION INCREASE OR LUMP SUM WHERE ENTITLEMENT TO RETIREMENT PENSION IS DEFERRED”.
3. Before paragraph 1 insert—
“Choice between increase of pension and lump sum where pensioner’s entitlement is deferred
A1.—(1) Where a person’s entitlement to a Category A or Category B retirement pension is deferred and the period of deferment is at least 12 months, the person shall, on claiming his pension or within a prescribed period after claiming it, elect in the prescribed manner either—
(a)that paragraph 1 (entitlement to increase of pension) is to apply in relation to the period of deferment, or
(b)that paragraph 3A (entitlement to lump sum) is to apply in relation to the period of deferment.
(2) If no election under sub-paragraph (1) is made within the period prescribed under that sub-paragraph, the person is to be treated as having made an election under sub-paragraph (1)(b).
(b)if they enable a person to make an election under sub-paragraph (1)(b) in respect of a period of deferment after receiving any increase of pension under paragraph 1 by reference to that period, may for the purpose of avoiding duplication of payment—
(ii)provide for an amount determined in accordance with the regulations to be treated as having been paid on account of the amount to which the person is entitled under paragraph 3A.
(4) Where the Category A or Category B retirement pension includes any increase under paragraphs 5 to 6, no election under sub-paragraph (1) applies to so much of the pension as consists of that increase (an entitlement to an increase of pension in respect of such an increase after a period of deferment being conferred either by paragraphs 1 and 2 or by paragraph 2A).”.
4. For paragraph 1 (increase of pension where pensioner’s entitlement is deferred) substitute—
“1.—(1) This paragraph applies where a person’s entitlement to a Category A or Category B retirement pension is deferred and one of the following conditions is met—
(b)the person has made an election under paragraph A1(1)(a) in relation to the period of deferment.
(2) The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 2, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.”.
6. After paragraph 2 insert—
“2A.—(1) This paragraph applies where—
(a)a person’s entitlement to a Category A or Category B retirement pension is deferred,
(b)the pension includes an increase under paragraphs 5 to 6, and
(c)the person has made (or is treated as having made) an election under paragraph A1(1)(b) in relation to the period of deferment.
(2) The rate of the person’s Category A or Category B retirement pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under sub-paragraph (3).
(3) For each complete incremental period in the person’s period of deferment, the amount of the increment shall be 1/5th per cent. of the weekly rate of the increase to which the person would have been entitled under paragraphs 5 to 6 for the period if his entitlement to the Category A or Category B retirement pension had not been deferred.”.
8. After paragraph 3B (inserted by paragraph 7) insert—
“Choice between increase of pension and lump sum where pensioner’s deceased spouse has deferred entitlement
3C.—(1) Subject to paragraph 8, this paragraph applies where—
(2) W shall within the prescribed period elect in the prescribed manner either—
(3) If no election under sub-paragraph (2) is made within the period prescribed under that sub-paragraph, W is to be treated as having made an election under sub-paragraph (2)(b).
(5) The making of an election under sub-paragraph (2)(b) does not affect the application of paragraphs 5 to 6 (which relate to an increase in pension where the pensioner’s deceased spouse had deferred an entitlement to a guaranteed minimum pension).”.
9.—(1) Paragraph 4 (increase of pension where pensioner’s deceased spouse has deferred entitlement) is amended as follows.
“(1) Subject to paragraph 8, this paragraph applies where a widow or widower (“W”) is entitled to a Category A or Category B retirement pension and was married to the other party to the marriage (“S”) when S died and one of the following conditions is met—
(a)S was entitled to a Category A or Category B retirement pension with an increase under this Schedule,
(b)W is a widow or widower to whom paragraph 3C applies and has made an election under paragraph 3C(2)(a), or
(c)paragraph 3C would apply to W but for the fact that the condition in sub-paragraph (1)(d) of that paragraph is not met.
(1A) Subject to sub-paragraph (3), the rate of W’s pension shall be increased—
(a)in a case falling within sub-paragraph (1)(a), by an amount equal to the increase to which S was entitled under this Schedule, apart from paragraphs 5 to 6,
(b)in a case falling within sub-paragraph (1)(b), by an amount equal to the increase to which S would have been entitled under this Schedule, apart from paragraphs 5 to 6, if the period of deferment had ended immediately before S’s death and S had then made an election under paragraph A1(1)(a), or
(c)in a case falling within sub-paragraph (1)(c), by an amount equal to the increase to which S would have been entitled under this Schedule, apart from paragraphs 5 to 6, if the period of deferment had ended immediately before S’s death.”.
10.—(1) After paragraph 7 insert—
“Entitlement to lump sum where pensioner’s deceased spouse has deferred entitlement
7A.—(1) This paragraph applies where a person to whom paragraph 3C applies (“W”) has made (or is treated as having made) an election under paragraph 3C(2)(b).
(2) W is entitled to an amount calculated in accordance with paragraph 7B (a “widowed person’s lump sum”).
Calculation of widowed person’s lump sum
7B.—(1) The widowed person’s lump sum is the accrued amount for the last accrual period beginning during the period which—
(a)began at the beginning of S’s period of deferment, and
(b)ended on the day before S’s death.
“S” means the other party to the marriage;
“accrual period” means any period of seven days beginning with a prescribed day of the week, where that day falls within S’s period of deferment.
(3) The accrued amount for an accrual period for W is—
A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period mentioned in sub-paragraph (1), zero);
the basic pension, and
half of the additional pension,
to which S would have been entitled for the accrual period if his entitlement had not been deferred during the period mentioned in sub-paragraph (1);
such higher rate as may be prescribed in regulations made under paragraph 7C(2).
(5) For the purposes of the calculation of the widowed person’s lump sum, the amount of Category A or Category B retirement pension to which S would have been entitled for an accrual period—
(6) The reference in sub-paragraph (5)(a) to any increase under subsection (1) of section 47 shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and section 42(5) of the Pensions Act were disregarded.
(a)there is a period between the death of S and the date on which W becomes entitled to a Category A or Category B retirement pension, and
the amount of the lump sum shall be increased in accordance with that order or those orders.”.
(2) In relation to any accrual period (within the meaning of Schedule 5 to the Contributions and Benefits Act) ending before 6th April 2010 the reference in paragraph 7B(5)(b) of that Schedule to section 83A of that Act is to be read as a reference to section 83 or 84 of that Act.
11. After paragraph 7B (inserted by paragraph 10) insert—
7C.—(1) Any lump sum calculated under paragraph 3B or 7B must be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.
(2) Where the Secretary of State makes regulations prescribing a percentage rate for the purposes of paragraphs 3B and 7B of Schedule 5 to the Great Britain Contributions and Benefits Act, the Department may make corresponding regulations for Northern Ireland.”.
12. For the heading immediately preceding paragraph 8 substitute “Married couples”.
13. In paragraph 8 (married couples)—
(a)in sub-paragraph (3) for “the reference in paragraph 2(3) above” substitute “the references in paragraphs 2(3) and 3B(3) and (5)”, and
“(4) The conditions in paragraph 3C(1)(c) and 4(1)(a) are not satisfied by a Category B retirement pension to which S was or would have been entitled by virtue of W’s contributions.
(5) Where the Category A retirement pension to which S was or would have been entitled includes an increase under section 51A(2) attributable to W’s contributions, the increase or lump sum to which W is entitled under paragraph 4(1A) or 7A(2) is to be calculated as if there had been no increase under that section.
(6) In sub-paragraphs (4) and (5), “W” and “S” have the same meaning as in paragraph 3C, 4 or 7A, as the case requires.”.
14. After Schedule 5 to the Contributions and Benefits Act insert—
“SCHEDULE 5APENSION INCREASE OR LUMP SUM WHERE ENTITLEMENT TO SHARED ADDITIONAL PENSION IS DEFERRED
Choice between pension increase and lump sum where entitlement to shared additional pension is deferred
1.—(1) Where a person’s entitlement to a shared additional pension is deferred and the period of deferment is at least 12 months, the person shall, on claiming his pension or within a prescribed period after claiming it, elect in the prescribed manner either—
Increase of pension where entitlement deferred
2.—(1) This paragraph applies where a person’s entitlement to a shared additional pension is deferred and either—
(2) The rate of the person’s shared additional pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under paragraph 3, but only if that amount is enough to increase the rate of the pension by at least 1 per cent.
Calculation of increment
3.—(1) A person is entitled to an increment under this paragraph for each complete incremental period in his period of deferment.
(2) The amount of the increment for an incremental period shall be 1/5th per cent. of the weekly rate of the shared additional pension to which the person would have been entitled for the period if his entitlement had not been deferred.
(3) Amounts under sub-paragraph (2) shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.
(4) Where an amount under sub-paragraph (2) would, apart from this sub-paragraph, be a sum less than 1/2p, the amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act or the Administration Act.
(5) In this paragraph “incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this paragraph in relation to the person and pension in question.
(6) Where one or more orders have come into force under section 132 of the Administration Act during the period of deferment, the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the period of deferment.
(7) The sums which are the increases in the rates of shared additional pension under this paragraph are subject to alteration by order made by the Department under section 132 of the Administration Act.
Lump sum where entitlement to shared additional pension is deferred
(2) The person is entitled to an amount calculated in accordance with paragraph 5 (a “lump sum”).
5.—(1) The lump sum is the accrued amount for the last accrual period beginning during the period of deferment.
if a higher rate is prescribed for the purposes of paragraphs 3B and 7B of Schedule 5 to this Act, that higher rate.
(5) For the purposes of the calculation of the lump sum, the amount of the shared additional pension to which the person would have been entitled for an accrual period does not include, in prescribed circumstances, such amount as may be prescribed.
(6) The lump sum must be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.”.
15. The Contributions and Benefits Act is amended as follows.
16. In section 62(1) (graduated retirement benefit)—
(a)in paragraph (a), for “paragraphs 1 to 3” substitute “paragraphs A1 to 3B and 7C”, and
“(c)for amending that section in order to make provisions corresponding to those of paragraphs 3C, 4(1) and (1A) and 7A to 7C of Schedule 5 to this Act enabling a widowed person to elect to receive a lump sum, rather than an increase in the weekly rate of retirement pension, in respect of the graduated retirement benefit of his or her deceased spouse.”.
17. In section 121(1) (interpretation of Parts I to VI)—
(a)before the definition of “beneficiary” insert—
““Bank of England base rate” means—
the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or
where an order under section 19 of the Bank of England Act 1998 is in force, any equivalent rate determined by the Treasury under that section;”; and
(b)for the definitions of “deferred” and “period of deferment” substitute—
““deferred” and “period of deferment”—
in relation to a Category A or Category B retirement pension, have the meanings given by section 55(3), and
in relation to a shared additional pension, have the meanings given by section 55C(3);”.
18. The 1999 Order is amended as follows.
19. In Article 47, omit paragraph (2) (which amends provisions relating to the deferment of shared additional pensions and is superseded by Part 1 of this Schedule).
20. In Article 49(2) (power to make regulations preserving rights in respect of additional pensions), in sub-paragraph (b)—
(a)after “increase of pension” insert “or payment of lump sum”, and
(b)after “constituent element of an increase” insert “or of a lump sum”.
Widowers' entitlement to increase of pension or widowed person’s lump sum
21. In the case of a widower who attains pensionable age before 6th April 2010, paragraphs 3C, 4 and 7A of Schedule 5 to the Contributions and Benefits Act (entitlement to increase of pension or widowed person’s lump sum) shall not apply unless he was over pensionable age when his wife died.
22.—(1) The Department may by regulations make such transitional provision as it thinks fit in connection with the coming into operation of this Schedule.
(2) Regulations under this paragraph may, in particular, modify the preceding provisions of this Schedule in relation to cases where the retirement pension or shared additional pension of a person is deferred and the period of deferment begins before 6th April 2005 and continues on or after that day.
(3) In this paragraph “deferred” and “period of deferment” are to be read in accordance with section 55 or 55C of the Contributions and Benefits Act, as the case requires.