The Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2005 No. 357

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STATUTORY RULES OF NORTHERN IRELAND

2005 No. 357
PENSIONS
The Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2005

	Made	29th July 2005
	Coming into operation in accordance with regulation 1(1)

The Department for Social Development, in exercise of the powers conferred on it by Articles 2(5)(a), 7(5)(a) and (7)(a), 64(2), 188(4)(a), 189(2), 280(1)(b) and (2)(b) and 287(2) and (3) of, and paragraph 23 of Schedule 6 to, the Pensions (Northern Ireland) Order 2005[1], and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Citation, commencement and interpretation
1. —(1) These Regulations may be cited as the Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2005 and shall come into operation on 19th August 2005 except—

    (2) In these Regulations "the Order" means the Pensions (Northern Ireland) Order 2005.

Amendment of the Order
     2. —(1) The Order shall be amended in accordance with paragraphs (2) to (4).

    (2) In Article 7(6) (functions exercisable by the Determinations Panel) after sub-paragraph (h) there shall be inserted the following sub-paragraphs—

" (ha) Article 58(7) of that Order (power of the Regulator in prescribed circumstances to extend or further extend the period referred to in Article 58(6) of that Order[

(3) In Schedule 2 (the reserved regulatory functions) after paragraph 15 there shall be inserted the following paragraphs—

15A.

15B.

The power under Article 60(7) to extend or further extend the period applicable under Article 60(3) of that Order in relation to securing an increase in the value of the assets of an occupational pension scheme.".

(4) In Schedule 8 (reviewable matters) after paragraph 7 there shall be inserted the following paragraph—

" 7A. Any determination by the Board under Article 125(2) (determination on a review of an ill health pension that compensation in respect of the pension is to be determined in the prescribed manner).".

    (5) Article 7(6)(ha) and (hb) of, and paragraphs 15A and 15B of Schedule 2 to, the Order (as inserted by paragraphs (2) and (3)) shall only have effect in the case of applications made by virtue of Articles 58(7) and 60(7) of the Pensions (Northern Ireland) Order 1995[3] on or after the date on which these Regulations come into operation for the exercise of the power to extend or further extend under Article 58(7) or 60(7) of that Order.

Amendment of the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations
     3. —(1) The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations (Northern Ireland) 2005[4] shall be amended in accordance with paragraphs (2) to (4).

    (2) In regulation 1 (citation, commencement and interpretation)—

" "the assessment date" means the date on which the assessment period in relation to the scheme or section, or (where there has been more than one such assessment period) the last one, began;

"employer", in relation to a single-employer section of a segregated scheme which has no active members, includes the person who was the employer of persons in the description of employment to which the scheme or section relates immediately before the time at which the scheme or section ceased to have any active members in relation to it;"; and

(iii) condition C is that such a debt became due but before the assessment date it is excluded from the value of the assets of the scheme or section because it is unlikely to be recovered without disproportionate costs or within a reasonable time;

(iv) condition D is that at the time at which any such person ceased to be the employer of persons in the description of employment to which the scheme or section relates the value of the assets of the scheme or section was such that no such debt was treated as becoming due;

(b) in any other case, includes any person who before the assessment date has ceased to be the employer of persons in the description of employment to which the scheme or section relates unless condition A, B, C or D is satisfied where—

(3) For Part III (segregated schemes: multi-employer sections without requirement for partial wind up on withdrawal of participating employer) there shall be substituted the following Part—

" PART III

SEGREGATED SCHEMES: MULTI-EMPLOYER SECTIONS WITHOUT REQUIREMENT FOR PARTIAL WIND UP ON WITHDRAWAL OF A PARTICIPATING EMPLOYER

Application and effect

14.

—(1) This regulation applies to a multi-employer section of a segregated scheme the rules of which do not provide for the partial winding up of the section when an employer in relation to the section ceases to participate in the scheme.

(2) Except as otherwise provided in this Part, in the case of a section of a scheme to which this regulation applies—

(3) Paragraph (2) shall not have effect in relation to Article 157 (initial levy).

Notification of insolvency events, confirmation of scheme status etc.
15. —(1) Article 104 (duty to notify insolvency events in respect of employers) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where, in the case of a section of a multi-employer scheme which is divided into two or more sections ("a segregated scheme") with at least two employers in relation to that section of the scheme ("a multi-employer section"), an insolvency event occurs in relation to any employer in relation to that section."; and

(b) after paragraph (2) there were inserted the following paragraph—

" (2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from an insolvency practitioner under paragraph (2), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(2) Article 106 (insolvency practitioner's duty to issue notices confirming status of scheme) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where an insolvency event has occurred in relation to any employer in relation to a multi-employer section of a segregated scheme.";

(b) in paragraph (2)—

(e) in paragraph (5)—

(f) in paragraph (6) for "the employer" there were substituted "an employer"; and

(g) after paragraph (6) there were inserted the following paragraph—

" (6A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice issued by an insolvency practitioner or former insolvency practitioner under paragraph (6), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(3) Article 107 (approval of notices issued under Article 106) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where the Board receives a notice under Article 106(6) ("the Article 106 notice") in relation to any employer in relation to a multi-employer section of a segregated scheme at a time when the Board has previously received such a notice in relation to all other employers in relation to that section of the scheme.";

(b) for paragraph (2) there were substituted the following paragraph—

" (2) The Board must determine whether to approve the Article 106 notice received in relation to that employer."; and

" (4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice issued by the Board under paragraph (4), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(4) Article 108 (Board's duty where there is a failure to comply with Article 106) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (1)—

(b) in paragraph (4)—

" (4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a notice issued by the Board under Article 106 by virtue of this Article, they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(5) Article 109 (binding notices confirming status of scheme) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if after paragraph (3) there were inserted the following paragraph—

" (3A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (3) together with a copy of the binding notice, they must send a copy of the notice and the binding notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

Eligible schemes
16. —(1) Except as otherwise provided in this Part, for the purposes of Part III of the Order, except Chapter 4, as it applies to a section of a scheme to which regulation 14 applies, references to "an eligible scheme" shall be read as if they were references to a multi-employer section of a segregated scheme where that section, if it were a scheme, would not be—

(a) a money purchase scheme; or

(b) a scheme which is a prescribed scheme or a scheme of a prescribed description under Article 110(1)(b).

(2) Paragraph (1) shall not apply for the purposes of Articles 157 to 164 (the levies).

Duty to assume responsibility for schemes
17. —(1) Article 111 (duty to assume responsibility for schemes following insolvency event) shall have effect in relation to a section of a scheme to which regulation 14 applies and, for this purpose, shall be modified so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where a qualifying insolvency event has occurred in relation to an employer in relation to a multi-employer section of a segregated scheme.";

(b) for paragraph (3) there were substituted the following paragraph—

" (3) For the purposes of this Article, an insolvency event ("the current event") in relation to an employer in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, is a qualifying insolvency event if—

(b) it occurs on or after the day appointed under Article 110(2), and

(c) it—

(2) Article 112 (duty to assume responsibility for schemes following application or notification) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where, in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme—

(3) Article 113 (applications and notifications for the purposes of Article 112) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) Where the trustees or managers of a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme—

(ii) received a notice given by the Board under paragraph (5) by virtue of a notice given by the Regulator under paragraph (4)(a) in respect of an employer in relation to the section at a time when all other employers in relation to that section have either had—

(b) are aware that a person is no longer an employer, or that persons are no longer employers, in relation to the section at a time when—

(ii) at least one such insolvency event occurred, or at least one such notice was given under paragraph (1A) or (5) by virtue of a notice given by the Regulator under paragraph (4)(a), on or after 6th April 2005 in relation to an employer in relation to that section,

they must, except where an assessment period has already begun in relation to that section of the scheme, make an application to the Board for it to assume responsibility for the section under Article 112.";

(b) after paragraph (1) there were inserted the following paragraphs—

" (1A) Where the trustees or managers of a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme become aware that an employer in relation to that section—

they must give the Board a notice to that effect.

(1B) The notice which must be given to the Board in accordance with paragraph (1A) must be in writing and must contain the following information—

(1C) Where the trustees or managers of a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme make an application to the Board under paragraph (1)(a) or (b), they must as soon as practicable notify that fact to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).";

" (4) Where, in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, the Regulator—

(b) is aware that a person is no longer an employer, or that persons are no longer employers, in relation to that section of the scheme at a time when—

it must, except where an assessment period has already begun in relation to that section of the scheme, give the Board a notice to that effect."; and

(d) after paragraph (5) there were inserted the following paragraph—

" (5A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (5), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

Board's duty where application or notification received under Article 113
18. Article 114 (Board's duty where application or notification received under Article 113) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where the Board—

(b) in paragraph (2) after "a scheme rescue is not possible" there were inserted "in relation to a multi-employer section of a segregated scheme";

(c) in paragraph (3) after "a scheme rescue has occurred" there were inserted "in relation to that section";

(d) after paragraph (4) there were inserted the following paragraph—

" (4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a notice from the Board under paragraph (4), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).";

(e) in paragraph (5)—

(f) after paragraph (7) there were inserted the following paragraph—

" (7A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (7) together with a copy of the binding notice, they must send a copy of the notice and the binding notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

Protected liabilities
19. Article 115 (protected liabilities) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if for paragraph (1) there were substituted the following paragraph—

" (1) For the purposes of this Chapter the protected liabilities, in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, at a particular time ("the relevant time") are—

Assessment periods
20. Article 116 (assessment periods) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (2)—

(b) in paragraph (4) for "in relation to an eligible scheme, an application is made under Article 113(1) or a notification is received under Article 113(5)(a), an assessment period" there were substituted "in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, an application is made under Article 113(1)(a) or (b) or a notification is received under Article 113(4)(b), an assessment period in relation to that section of the scheme"; and

(c) in paragraph (5) for "paragraph 113(5)(a)" there were substituted "paragraph 113(4)(b)".

Directions
21. Article 118 (directions) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (2)—

(b) in paragraph (3)(a)(i) for "the trustees or managers" there were substituted "any trustees or managers".

Power to validate contraventions of Article 119 and Board to act as creditor of the employer
22. —(1) Article 120 (power to validate contraventions of Article 119) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (2)(c) for "in relation to the employer, or if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer, or if there is no such insolvency practitioner, that employer"; and

(b) after paragraph (2) there were inserted the following paragraph—

" (2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a notice from the Board under paragraph (2), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

    (2) Article 121(2) (Board to act as creditor of the employer) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if for "the employer" there were substituted "an employer".

Valuation of assets
     23. —(1) Article 127 (Board's obligation to obtain valuation of assets and protected liabilities) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if for "the scheme" there were substituted "the relevant section of the scheme".

    (2) Article 128 (approval of valuation) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (1) for "obtains a valuation in respect of a scheme" there were substituted "obtains a valuation in respect of the relevant section of the scheme";

(b) in paragraph (2)(b)(iii) for "in relation to the employer or, if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer or, if there is no such insolvency practitioner, that employer"; and

(c) after paragraph (2) there were inserted the following paragraph—

" (2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a valuation from the Board under paragraph (2), they must send a copy of that valuation as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(3) Article 129 (binding valuations) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (2) for "in relation to a scheme" there were substituted "in relation to the relevant section of the scheme";

(b) in paragraph (3)(c) for "in relation to the employer or, if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer or, if there is no such insolvency practitioner, that employer"; and

(c) after paragraph (3) there were inserted the following paragraph—

" (3A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (3) together with a copy of a binding valuation, they must send a copy of the notice and the binding valuation as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

Refusal to assume responsibility for a scheme
24. —(1) Article 130 (schemes which become eligible schemes) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) Regulations may provide that where the Board is satisfied that any multi-employer section of a segregated scheme is not, for the purposes of this Part, an eligible scheme throughout such a period as may be prescribed, the Board must refuse to assume responsibility for that section under this Chapter.";

(b) in paragraph (2)—

" (2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a withdrawal notice from the Board under paragraph (2), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).";

(d) in paragraph (4)(c) for "in relation to the employer or, if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer or, if there is no such insolvency practitioner, that employer"; and

(e) after paragraph (4) there were inserted the following paragraph—

" (4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (4) together with a copy of the binding notice, they must send a copy of the notice and the binding notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(2) Article 131 (new schemes created to replace existing schemes) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) The Board must refuse to assume responsibility for a new multi-employer section of a segregated scheme ("the new section") under this Chapter where it is satisfied that—

(b) in paragraph (2)(b)(iii) for "in relation to the employer or, if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer or, if there is no such insolvency practitioner, that employer";

(c) after paragraph (2) there were inserted the following paragraph—

" (4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (4) together with a copy of the binding notice, they must send a copy of the notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(3) Article 132 (withdrawal following issue of Article 106(4) notice) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (5)(c) for "the employer" there were substituted "any employer";

(b) after paragraph (5) there were inserted the following paragraph—

" (5A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a withdrawal notice issued by the Board under this section, they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).";

(c) in paragraph (7)(c) for "the employer" there were substituted "any employer"; and

(d) after paragraph (7) there were inserted the following paragraph—

Reconsideration, closed schemes and requirement to wind up schemes with sufficient assets to meet protected liabilities
25. —(1) Article 135(8) (application for reconsideration) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if in the definition of "protected benefits quotation" for the words from ""protected benefits quotation", in relation to a scheme, means" to "from the reconsideration time—" there were substituted—

" "protected benefits quotation", in relation to a section of a segregated scheme, means a quotation for one or more annuities from one or more insurers, being companies willing to accept payment in respect of the members of the section from the trustees or managers of the scheme, which would provide in respect of each member of the section from the reconsideration time—".

(2) Article 136 (duty to assume responsibility following reconsideration) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for paragraph (2) there were substituted the following paragraph—

" (2) The Board must assume responsibility in accordance with this Chapter for a multi-employer section of a segregated scheme if it is satisfied that the value of the assets of the section at the reconsideration time is less than the aggregate of—

(b) after paragraph (3) there were inserted the following paragraph—

" (3A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice from the Board under paragraph (3), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different)."; and

" (7A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (7), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(3) Article 137 (closed schemes) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraphs (2) and (5) for "a closed scheme" there were substituted "a closed section of the scheme"; and

(b) after paragraph (6) there were inserted the following paragraph—

" (6A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice from the Board under paragraph (6), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

(4) Article 138 (requirement to wind up schemes with sufficient assets to meet protected liabilities) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (2)(a) for "(scheme rescue not possible but scheme has sufficient assets to meet the protected liabilities)" there were substituted "(scheme rescue not possible in relation to a multi-employer section of a segregated scheme but section has sufficient assets to meet the protected liabilities)";

(b) in paragraph (6) for "a scheme is wound up" there were substituted "a multi-employer section of a segregated scheme is wound up";

(c) in paragraph (11) for "winding up of a scheme" there were substituted "winding up of a multi-employer section of a segregated scheme"; and

(d) in paragraph (12) for "in relation to a scheme" there were substituted "in relation to a multi-employer section of a segregated scheme".

(5) Article 139 (treatment of closed schemes) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if for paragraph (1) there were substituted the following paragraph—

" (1) In this Article "closed scheme" means a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme which is authorised under Article 137 to continue as a closed section of the scheme.".

(6) Article 141 (applications and notifications where closed schemes have insufficient assets) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if after paragraph (4) there were inserted the following paragraph—

" (4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under paragraph (4), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).".

Transfer notice and assumption of responsibility for a scheme
26. —(1) Article 144 (transfer notice) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (1) for "required to assume responsibility for a scheme" there were substituted "required to assume responsibility for a multi-employer section of a segregated scheme";

(b) after paragraph (2) there were inserted the following paragraph—

" (2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a transfer notice from the Board under paragraph (2), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different)."; and

" (6) The Board must give a copy of the transfer notice given under paragraph (2) to—

(2) Article 145 (effect of Board assuming responsibility for a scheme) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) in paragraph (2)(b) after "obligations" there were inserted "to or in respect of members of that section"; and

(b) in paragraph (4)(a) after "to or in respect of persons" there were inserted "who are or were members of that section".

(3) Schedule 5 to the Order (transfer of property, rights and liabilities to the Board) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if in paragraph 1 for "an occupational pension scheme" there were substituted "a multi-employer section of a segregated multi-employer scheme".

The pension compensation provisions
27. —(1) Article 146(1) (the pension compensation provisions) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—

(a) for "in relation to a scheme" there were substituted "in relation to a multi-employer section of a segregated scheme";

(b) in sub-paragraphs (a) and (b) after "members" there were inserted "of that section";

(c) in sub-paragraph (c) after "payable" there were inserted "to or in respect of members of that section"; and

(d) in sub-paragraph (d) at the end there were added "payable to or in respect of members of that section".

(2) Article 147(2) (adjustments to be made where the Board assumes responsibility for a scheme) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if in sub-paragraph (a) after "to any member" there were inserted "of that section".

(3) Article 150(1) (duty to pay scheme benefits unpaid at assessment date etc.) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if for "assumes responsibility for a scheme" there were substituted "assumes responsibility for a multi-employer section of a segregated scheme".".

(4) For Part VI (non-segregated schemes: schemes without provision for partial wind up on withdrawal of a participating employer) there shall be substituted the following Part—

" PART VI
NON-SEGREGATED SCHEMES: SCHEMES WITHOUT PROVISION FOR PARTIAL WIND UP ON WITHDRAWAL OF A PARTICIPATING EMPLOYER
Application and effect

61.

This regulation applies to a multi-employer scheme which is not divided into two or more sections (a "non-segregated scheme") the rules of which do not provide for the partial winding up of the scheme when an employer in relation to the scheme ceases to participate in the scheme.

Notification of insolvency events, confirmation of scheme status etc.

62.

—(1) Article 104 (duty to notify insolvency events in respect of employers) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(2) Article 106 (insolvency practitioner's duty to issue notices confirming status of the scheme) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(3) Article 107 (approval of notices issued under Article 106) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(4) Article 108 (Board's duty where there is a failure to comply with Article 106) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(b) in paragraph (4)—

(5) Article 109 (binding notices confirming status of scheme) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(b) after paragraph (3) there were inserted the following paragraph—

Eligible schemes
     63. —(1) Article 110(1) (eligible schemes) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if for "an occupational pension scheme" there were substituted "a non-segregated scheme".

    (2) Paragraph (1) shall not have effect in relation to Articles 157 to 164 (the levies).

Duty to assume responsibility for schemes
     64. —(1) Article 111 (duty to assume responsibility for schemes following insolvency event) shall have effect in relation to a scheme to which regulation 61 applies and, for this purpose, shall be modified so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where a qualifying insolvency event has occurred in relation to an employer in relation to a non-segregated scheme."; and

(b) for paragraph (3) there were substituted the following paragraph—

" (3) For the purposes of this Article, an insolvency event ("the current event") in relation to an employer in relation to an eligible scheme is a qualifying insolvency event if—

(b) it occurs on or after the day appointed under Article 110(2), and

(c) it—

(2) Article 112 (duty to assume responsibility for schemes following application or notification) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where, in relation to a non-segregated scheme which is, for the purposes of this Part, an eligible scheme—

Applications and notifications and Board's duty where application or notification received under Article 113
65. —(1) Article 113 (applications and notifications for the purposes of Article 112) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) Where the trustees or managers of a non-segregated scheme which is, for the purposes of this Part, an eligible scheme—

(ii) received a notice given by the Board under paragraph (5) by virtue of a notice given by the Regulator under paragraph (4)(a) in respect of an employer in relation to the scheme at a time when all other employers in relation to the scheme have either had—

(b) are aware that a person is no longer an employer, or that persons are no longer employers, in relation to the scheme at a time when—

they must, except where an assessment period has already begun in relation to that scheme, make an application to the Board for it to assume responsibility for the scheme under Article 112."; and

(b) after paragraph (1) there were inserted the following paragraphs—

" (1A) Where the trustees or managers of a non-segregated scheme which is, for the purposes of this Part, an eligible scheme become aware that an employer in relation to the scheme—

they must give the Board a notice to that effect.

(1B) The notice which must be given to the Board in accordance with paragraph (1A) must be in writing and must contain the following information—

(1C) Where the trustees or managers of a non-segregated scheme which is, for the purposes of this Part, an eligible scheme make an application to the Board under paragraph (1)(a) or (b), they must as soon as practicable notify that fact to all the employers in relation to the scheme.";

" (4) Where, in relation to a non-segregated scheme which is, for the purposes of this Part, an eligible scheme, the Regulator—

(b) is aware that a person is no longer an employer, or that persons are no longer employers, in relation to the scheme at a time when—

it must, except where an assessment period has already begun in relation to the scheme, give the Board a notice to that effect."; and

(d) after paragraph (5) there were inserted the following paragraph—

" (5A) Where the trustees or managers of a non-segregated scheme receive a copy of a notice from the Board under paragraph (5), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.".

(2) Article 114 (Board's duty where application or notification received under Article 113) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(a) for paragraph (1) there were substituted the following paragraph—

" (1) This Article applies where the Board—

(b) after paragraph (4) there were inserted the following paragraph—

" (4A) Where the trustees or managers of a non-segregated scheme receive a copy of a notice from the Board under paragraph (4), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme."; and

" (7A) Where the trustees or managers of a non-segregated scheme receive a notice from the Board under paragraph (7) together with a copy of the binding notice, they must send a copy of the notice and the binding notice as soon as practicable to all the employers in relation to the scheme.".

Assessment periods
66. Article 116 (assessment periods) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(a) in paragraph (2)—

(b) in paragraph (4) for "in relation to an eligible scheme, an application is made under Article 113(1) or a notification is received under Article 113(5)(a), an assessment period" there were substituted "in relation to a non-segregated scheme which is, for the purposes of this Part, an eligible scheme, an application is made under Article 113(1)(a) or (b) or a notification is received under Article 113(4)(b), an assessment period in relation to the scheme"; and

(c) in paragraph (5) for "paragraph 113(5)(a)" there were substituted "paragraph 113(4)(b)".

Power to validate contraventions of Article 119 and Board to act as creditor of the employer
     67. —(1) Article 120(2)(c) (power to validate contraventions of Article 119) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if for "in relation to the employer, or if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer or, if there is no such insolvency practitioner, that employer".

    (2) Article 121(2) (Board to act as creditor of the employer) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if for "the employer" there were substituted "an employer".

Valuation of assets
     68. Articles 128(2)(b)(iii) (approval of valuation) and 129(3)(c) (binding valuations) shall be modified in their application to a scheme to which regulation 61 applies so that they shall be read as if for "in relation to the employer or, if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer or, if there is no such insolvency practitioner, that employer".

Refusal to assume responsibility
     69. —(1) Articles 130(2)(b)(iii) and (4)(c) (schemes which become eligible schemes) and 131(2)(b)(iii) and (4)(c) (new schemes created to replace existing schemes) shall be modified in their application to a scheme to which regulation 61 applies so that they shall be read as if for "in relation to the employer or, if there is no such insolvency practitioner, the employer" there were substituted "in relation to an employer or, if there is no such insolvency practitioner, that employer".

    (2) Article 132(5)(c) and (7)(c) (withdrawal following issue of Article 106(4) notice) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if for "the employer" there were substituted "any employer".

Transfer notice and the pension compensation provisions
     70. —(1) Article 144 (transfer notice) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if—

(a) in paragraph (1) for "where the Board is required to assume responsibility for a scheme" there were substituted "where the Board is required to assume responsibility for a non-segregated scheme";

(b) after paragraph (2) there were inserted the following paragraph—

" (2A) Where the trustees or managers of a non-segregated scheme receive a transfer notice from the Board under paragraph (2), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme."; and

" (6) The Board must give a copy of the transfer notice given under paragraph (2) to—

(2) Schedule 5 to the Order (transfer of property, rights and liabilities to the Board) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if in paragraph 1 for "an occupational pension scheme" there were substituted "a non-segregated multi-employer scheme".

(3) Schedule 6 to the Order (pension compensation provisions) shall be modified in its application to a scheme to which regulation 61 applies so that it shall be read as if in paragraph 1 for "an eligible scheme" there were substituted "a non-segregated multi-employer scheme which is, for the purposes of Part III, an eligible scheme".".

Amendment of the Pension Protection Fund (Entry Rules) Regulations
4. In regulation 1 of the Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005[7] (citation, commencement and interpretation)—

" "the assessment date" means the date on which the assessment period in relation to the scheme or section, or (where there has been more than one such assessment period) the last one, began;"; and

which has no active members, includes the person who was the employer of persons in the description of employment to which the scheme or section relates immediately before the time at which the scheme or section ceased to have any active members in relation to it.

(4) In these Regulations, "employer", in relation to a non-segregated scheme or a multi-employer section of a segregated scheme—

(b) in any other case, includes any person who has ceased to be the employer of persons in the description of employment to which the scheme or section relates unless condition A, B, C or D is satisfied where—

(iii) condition C is that such a debt became due but it is excluded from the value of the assets of the scheme or section because it is unlikely to be recovered without disproportionate costs or within a reasonable time;

(iv) condition D is that at the time at which any such person ceased to be the employer of persons in the description of employment to which the scheme or section relates the value of the assets of the scheme or section was such that no such debt was treated as becoming due.".

Amendment of the Pension Protection Fund (Provision of Information) Regulations
5. —(1) The Pension Protection Fund (Provision of Information) Regulations (Northern Ireland) 2005[8] shall be amended in accordance with paragraphs (2) and (3).

(2) In regulation 2 (interpretation)—

" "the assessment date" means the date on which the assessment period in relation to the scheme or section, or (where there has been more than one such assessment period) the last one, began;";

" "non-segregated scheme" means a multi-employer scheme which is not a segregated scheme;";

" "segregated scheme" means a multi-employer scheme which is divided into two or more sections where—

(b) for paragraphs (2) and (3) there shall be substituted the following paragraphs—

which has no active members, includes the person who was the employer of persons in the description of employment to which the scheme or section relates immediately before the time at which the scheme or section ceased to have any active members in relation to it.

(3) In these Regulations, "employer", in relation to a non-segregated scheme or a multi-employer section of a segregated scheme—

(3) In paragraph 1(1) of Schedule 2 (information to be provided by trustees or managers) the definition of "assessment date" shall be omitted.

Amendment of the Pension Protection Fund (Valuation) Regulations
6. In regulation 1(2) of the Pension Protection Fund (Valuation) Regulations (Northern Ireland) 2005[9] (interpretation)—

" "the assessment date" means the date on which the assessment period in relation to the scheme or section, or (where there has been more than one such assessment period) the last one, began;";

" "employer", in relation to—

"employer", in relation to a non-segregated scheme or a multi-employer section of a segregated scheme—

" "non-segregated scheme" means a multi-employer scheme which is not a segregated scheme;";

" "segregated scheme" means a multi-employer scheme which is divided into two or more sections where—

Amendment of the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations
7. —(1) The Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations (Northern Ireland) 2005[10] shall be amended in accordance with paragraphs (2) to (4).

(2) In regulation 1(2) (interpretation)—

" "the assessment date" means the date on which the assessment period in relation to the scheme or section, or (where there has been more than one such assessment period) the last one, began;";

" "employer", in relation to—

"employer", in relation to a non-segregated scheme or a multi-employer section of a segregated scheme—

(c) in the definition of "interested person" for "regulation 28." there shall be substituted "regulation 27;" and after that definition there shall be added the following definitions—

" "non-segregated scheme" means a multi-employer scheme which is not a segregated scheme;

"segregated scheme" means a multi-employer scheme which is divided into two or more sections where—

(3) In regulation 7(2) (notice of reviews other than on application) for "regulation 28" there shall be substituted "regulation 27".

(4) In the Schedule after paragraph 7 there shall be inserted the following paragraph—

7A. Paragraph 7A. 7A. The member in respect of whom a determination under Article 125(2) is made.".

Amendment of the Pension Protection Fund (Compensation) Regulations
8. —(1) The Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005[11] shall be amended in accordance with paragraphs (2) to (7).

(2) In regulation 1 (citation, commencement and interpretation) —

" "the assessment date" means the date on which the assessment period in relation to the scheme or section, or (where there has been more than one such assessment period) the last one, began;";

" "non-segregated scheme" means a multi-employer scheme which is not a segregated scheme;";

"relevant partner" means a person of either sex who was not married to, or in a civil partnership with, the member and who was living with the member as if that person and the member were husband and wife; and, for the purposes of these Regulations, two adults of the same sex are to be regarded as living together as husband and wife if, but only if, they would be regarded as living together as husband and wife were they instead two adults of opposite sex;";

" "segregated scheme" means a multi-employer scheme which is divided into two or more sections where—

(b) for paragraphs (3) and (4) there shall be substituted the following paragraphs—

which has no active members, includes the person who was the employer of persons in the description of employment to which the scheme or section relates immediately before the time at which the scheme or section ceased to have any active members in relation to it.

(4) In these Regulations "employer", in relation to a non-segregated scheme or a multi-employer section of a segregated scheme—

(3) In regulation 3 (circumstances where a widow or widower is not entitled to periodic compensation) for "where there is no provision to pay a survivor's pension under the admissible rules of the scheme." there shall be substituted—

" where there is—

to pay a survivor's pension to a relevant partner, or

(b) no provision to pay a survivor's pension under the admissible rules of the scheme.".

(4) In regulation 4 (compensation for surviving dependants)—

(2C) No compensation may be paid under paragraph (2B) where there is a valid nomination made by the member in accordance with either—

to pay a survivor's pension to a relevant partner.".

    (5) In regulation 5 (amount and duration of periodic compensation in the case of relevant partners) after "compensation is payable to a relevant partner" there shall be inserted "or civil partner,".

    (6) In regulation 6(2) and (3) (amount of periodic compensation that can be paid in the case of surviving dependants) for "surviving spouse or relevant partner" there shall be substituted "surviving spouse, relevant partner or civil partner".

    (7) In regulation 7 (period of payment) for "25", in each place where it occurs, there shall be substituted "23".

Amendment of the Pensions Regulator (Notifiable Events) Regulations
     9. In regulation 2 of the Pensions Regulator (Notifiable Events) Regulations (Northern Ireland) 2005[13] (notifiable events)—

(b) in paragraph (2)—

Revocation
10. Regulation 2(2) and (7) of the Pension Protection Fund and Pensions Regulator (Amendment) Regulations (Northern Ireland) 2005[14] is hereby revoked.

Sealed with the Official Seal of the Department for Social Development on

29th July 2005.

L.S.

John O'Neill
A senior officer for the Department for Social Development

paragraph (2) substitutes the definitions of "employer" in relation to an occupational pension scheme with no active members and a multi-employer scheme or a section of a multi-employer scheme and makes a minor consequential amendment;

paragraph (3) substitutes Part III, which modifies Part III of the Order, as it applies to a section of a segregated scheme with at least two employers in relation to that section. The substituted Part III broadens the circumstances in which an application can be made to the Board under Article 113(1) of the Order for it to assume responsibility for a section of a scheme to which Part III applies; and

paragraph (4) substitutes Part VI, which modifies Part III of the Order, as it applies to certain multi-employer schemes which are not divided into two or more sections in specified circumstances. The substituted Part VI broadens the circumstances in which an application can be made to the Board under Article 113(1) of the Order for it to assume responsibility for a scheme to which Part VI applies.

Regulations 4 to 6 amend respectively the Entry Rules Regulations, the Provision of Information Regulations and the Valuation Regulations by substituting new definitions of "employer" where certain occupational pension schemes have no active members and in relation to a multi-employer scheme or a multi-employer section of a segregated scheme. They also make minor consequential amendments.

Regulation 7 amends the Review and Reconsideration Regulations by substituting new definitions of "employer" where certain occupational pension schemes have no active members and in relation to a multi-employer scheme or a multi-employer section of a segregated scheme and makes minor consequential amendments. It also prescribes the interested person for the reviewable matters specified in paragraph 7A of Schedule 8 to the Order and corrects typographical errors.

Regulation 8 amends the Compensation Regulations—

by substituting new definitions of "employer" where certain occupational pension schemes have no active members and in relation to a multi-employer scheme or a multi-employer section of a segregated scheme and makes minor consequential amendments; and

to provide that the maximum age at which dependant's compensation can be paid is reduced from 25 to 23, although a person entitled to dependant's compensation prior to 6th April 2006 will continue to receive such compensation until the age of 25.

It also extends those Regulations to civil partners by providing that—

a civil partner will be entitled to receive a survivor's pension where the admissible rules of the scheme allow for such a payment to be made and for the amount of such compensation both where there are dependants of the civil partnership and where there are not;

where a member has nominated a relevant partner to receive a survivor's pension under the admissible rules of the scheme, then a surviving spouse or civil partner shall not be entitled to compensation; and

where a surviving spouse or civil partner is entitled to compensation and there is no nomination in place in favour of a relevant partner, then the relevant partner shall not be entitled to compensation.

Regulation 9 amends the Notifiable Events Regulations to expand certain events which involve the taking of a decision about a certain action to include a requirement to notify the Pensions Regulator when the action itself occurs in circumstances where a decision about that action was not required to be taken.

Regulation 10 makes a consequential revocation.

The Pensions (2005 Order) (Commencement No. 1 and Consequential and Transitional Provisions) Order (Northern Ireland) 2005 (S.R. 2005 No. 48 (C. 5)) provides for some of the enabling provisions under which these Regulations are made to be brought fully into operation as follows—

Article 280(1)(b) and (2)(b) on 8th March 2005; and

Articles 2(5)(a), 7(5)(a) and (7)(a), 64(2), 109(4)(a), 188(4)(a) and 189(2) and paragraph 23 of Schedule 6 on 6th April 2005.

As these Regulations are made before the end of the period of six months beginning with the coming into operation of the provisions of the Order by virtue of which they are made, the requirement to consult under Article 289(1) of the Order does not apply by virtue of paragraph (2)(c) of that Article.

Notes:

[1] S.I. 2005/255 (N.I. 1); Part III is modified in its application to partially guaranteed schemes by S.R. 2005 No. 55, in its application to hybrid schemes by S.R. 2005 No. 84, and in its application to multi-employer schemes by S.R. 2005 No. 91 back

[2] Article 58(6) was amended by paragraph 12(1) of Schedule 2 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)). See also S.R. 1996 No. 570 back

[3] S.I. 1995/3213 (N.I. 22); Article 60 was amended by S.R. 2002 No. 64. See also S.R. 1996 No. 570 back

[4] S.R. 2005 No. 91; relevant amending regulations are S.R. 2005 No. 194 back

[5] Paragraph (3) was amended by regulation 2(2) of S.R. 2005 No. 194 back

[6] Article 75 was amended by Article 248 of the Pensions (Northern Ireland) Order 2005 back

[7] S.R. 2005 No. 126, to which there are amendments not relevant to these regulations back

[8] S.R. 2005 No. 129 back

[9] S.R. 2005 No. 131 back

[10] S.R. 2005 No. 138, to which there are amendments not relevant to these regulations back

[11] S.R. 2005 No. 149 back

[12] 2004 c. 33 back

[13] S.R. 2005 No. 172 back

[14] S.R. 2005 No. 194 back

ISBN 0 337 96107 7

Prepared 6 September 2005

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You are here: BAILII >> Databases >> Statutory Rules of Northern Ireland >> The Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2005 No. 357 URL: http://www.bailii.org/nie/legis/num_reg/2005/20050357.html