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SOCIAL SECURITY PENSIONS (NORTHERN IRELAND) ORDER 1975 - SECT 47

47.(1) Where an earner's service in contracted-out employment by reference to
an occupational pension scheme is terminated before he attains [pensionable
age] and the weekly rate of the guaranteed minimum pensions to which he has
accrued rights under the scheme will fall to be determined in accordance with
provisions included in the scheme by virtue of Article 37(7), then, unless
either

(a)a state scheme premium is payable in respect of him under Article 44 or 46;
or

(b)those provisions conform with such additional requirements as may be
prescribed,

(2) Such a premium shall be paid to the Department within the prescribed
period; and its amount shall be the difference, as certified by the
Department, between the cost of providing the guaranteed minimum pensions in
accordance with the provisions included in the scheme by virtue of Article
37(7) and what would have been the cost of providing them if no such provision
had been included.

(3) Where a state scheme premium is payable in respect of an earner under this
Article, and the case is one in which his service in contracted-out employment
is terminated in consequence of the relevant scheme ceasing to be
contracted-out, the costs referred to in paragraph (2) shall, [unless the
person liable for the premium elects in the prescribed manner that this
paragraph shall not apply, be calculated as follows

(a)any order made under Article 23 increasing an earnings factor and made in
any of the five tax years ending with the tax year in which the scheme ceases
to be contracted-out shall be disregarded (but without prejudice to any
increase made by the last order made under that Article before the beginning
of those five tax years); and

(b)any relevant earnings factor derived from contributions in respect of any
year (hereafter in this paragraph referred to as "the relevant contributions
year") shall be treated as increased by 12 per cent. compound for each of
those five tax years, other than any of those years which constitutes or
begins before the relevant contributions year.]

(4) In calculating the costs referred to in paragraph (2), the Department
shall apply whichever of the prescribed actuarial tables (as in force at the
time when the earner's service in contracted-out employment is terminated) is
applicable in accordance with the regulations prescribing the tables; and

(a)the tables shall be so framed as to embody the assumption that the increase
of weekly equivalent required by Article 37(7) is 5 per cent. compound for
each relevant year after that in which the earner's service is terminated; and

(b)that assumption shall prevail over any different provision made by the
scheme.

(5) In certifying any amount under paragraph (2) the Department may make such
adjustments as it considers necessary for avoiding fractional amounts.

(6) References in this Article to the termination of an earner's employment do
not include references to its termination by his death; and, subject to
regulations made under paragraph 1 of Schedule 2, an employment which is
terminated by the death of the employer shall be treated for the purposes of
this Article as terminated immediately before the death.

© 1975 Crown Copyright

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