PENSIONS Citation and commencement 1 These Regulations may be cited as the Occupational Pension Schemes (Minimum Funding Requirement and Miscellaneous Amendments) Regulations (Northern Ireland) 2002 and shall come into operation on 19th March 2002. Amendment of the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of the Occupational Pension Schemes (Deficiency on Winding Up, etc. ) Regulations 3 1 The Occupational Pension Schemes (Deficiency on Winding Up, etc.) Regulations (Northern Ireland) 1996 shall be amended in accordance with paragraphs (2) to (4). 2 In regulation 3(1) (calculation of the value of scheme liabilities and assets) for “The liabilities” there shall be substituted “Subject to regulation 3A, the liabilities”. 3 After regulation 3 there shall be inserted the following regulation— Valuation of liabilities where employer not insolvent 3A 1 Where a scheme (including a section of a scheme in relation to which there is more than one employer which is treated as a separate scheme for the purposes of Article 75) is being wound up and the employer was not insolvent immediately before the winding up of the scheme commenced, regulation 3 shall have effect as if— a in paragraph (1)— i at the beginning of sub-paragraph ( a ) there were inserted “except to the extent that the liabilities are in respect of any entitlement to a pension or other benefit that has arisen under the scheme and in respect of which paragraph (1B) applies,”; ii in sub-paragraph ( a ) for “regulation 3(2) and (3)” there were substituted “regulation 3(2)( a ) to ( c ) and (3)”; iii in sub-paragraph ( b ) for “paragraphs (3) and (4)” there were substituted “paragraphs (1B), (3) and (4)”; iv in sub-paragraph ( c ) for “regulations 3(2) and (3)” there were substituted “regulations 3(2)( a ) to ( c ) and (3)”, and after “4 to 8 of the MFR Regulations” there were inserted “or as respects paragraphs (1A) and (1B)”; b after paragraph (1) there were inserted the following paragraphs— 1A The liabilities of a scheme which are to be taken into account under paragraph (1) shall include all expenses (except the cost of annuities taken into account by virtue of paragraph (1B)) which, in the opinion of the trustees or managers of the scheme, are likely to be incurred in connection with the winding up of the scheme. 1B When calculating the liabilities of the scheme in respect of any entitlement to the payment of any pension or other benefit (including any increase in a pension) that has arisen under the scheme on or before the applicable time, it shall be assumed that all such liabilities will be discharged by the purchase of annuities of a kind described in Article 74(3)( c ) (discharge of liabilities by insurance—annuity purchase) and, for the purposes of the calculation, the actuary shall estimate the cost of purchasing any such annuities. . 2 Where a scheme to which regulation 4 (multi-employer schemes) applies (including a section of a scheme in relation to which there is more than one employer which is treated as a separate scheme for the purposes of Article 75) is being wound up in circumstances where— a an employer in relation to the scheme ceases to employ persons in the description or category of employment to which the scheme relates at a time when there are no other employers in relation to the scheme continuing to employ such persons, and b that employer was not insolvent immediately before the winding up commenced, regulation 3 shall have effect with the modifications set out in paragraph (1). 3 For the purposes of paragraphs (1) and (2), an employer is insolvent if a relevant insolvency event has occurred in relation to that employer. . 4 In Schedule 1, in the Note at the end of the form of certificate (form of actuary’s certificate), after “securing” there shall be inserted “all of”. Amendment of the Occupational Pension Schemes (Winding Up) Regulations 4 1 The Occupational Pension Schemes (Winding Up) Regulations (Northern Ireland) 1996 shall be amended in accordance with paragraphs (2) to (4). 2 In regulation 4(1) (calculation of amounts of liabilities) after “Subject to” there shall be inserted “regulation 4A and”. 3 After regulation 4 there shall be inserted the following regulation— Calculation of liabilities where employer not insolvent 4A 1 In the case of a scheme in respect of which the employer was not insolvent at the time the winding up of the scheme commenced, regulation 4 shall have effect as if— a in paragraph (1)( c ) for “paragraph (3)” there were substituted “paragraphs (2A) and (3)”; b after paragraph (2) there were inserted the following paragraph— 2A For the purpose of calculating the amount of the liabilities in respect of any entitlement to the payment of any pension or other benefit (including any increase in a pension) that has arisen under the scheme on or before the crystallisation date— a it shall be assumed that all such liabilities will be discharged by the purchase of annuities of a kind described in Article 74(3)( c ), and b paragraph (1)( b ) shall not have effect. , and c for paragraph (5) there were substituted the following paragraph— 5 If, when the assets of the scheme are applied in accordance with Article 73(2) towards satisfying the liabilities mentioned in sub-paragraphs ( aa ) or ( b ) of Article 73(3) and towards satisfying any liability for an increase to a pension or other benefit to which those sub-paragraphs of that Article apply, those liabilities, as calculated in accordance with the rules of the scheme (without any reduction by reason of their falling within a class of liability which is to be satisfied after another class), cannot in the opinion of the actuary be fully satisfied by applying assets of a value equal to the amount of those liabilities calculated in accordance with paragraph (1), then the amount to be taken as the amount of those liabilities for the purposes of Article 73(2) shall be increased accordingly. . 2 For the purposes of paragraph (1), an employer is insolvent if a relevant insolvency event within the meaning given by Article 75(4) has occurred in relation to that employer. . 4 In regulation 13(4) (hybrid schemes) after “that regulation)” there shall be inserted “, but regulation 4A shall not apply for that purpose”. Amendment to Article 60(7A) of the Pensions (Northern Ireland) Order 1995 5 1 Article 60(7A) of the Pensions (Northern Ireland) Order 1995 shall be amended in accordance with paragraphs (2) to (4). 2 In sub-paragraph ( b ) for “on the date he signs the certificate” there shall be substituted “on the date seven days before the date on which he signs the certificate”. 3 In sub-paragraph ( b )(i) for “is” there shall be substituted “was”. 4 In sub-paragraph ( b )(ii) for “is” and “has” there shall be substituted “was” and “had” respectively. Sealed with the Official Seal of the Department for Social Development on 25th February 2002. John O'Neill Senior Officer of the Department for Social Development