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SOCIAL SECURITY PENSIONS (NORTHERN IRELAND) ORDER 1975 - SECT 36

36.(1) The requirements mentioned in Article 35(1)(a) are as follows.

(2) Subject to the provisions of this Article, the rules of the scheme must
provide for the annual rate of the earner's pension to be not less than 1 per
cent. of either

(a)his average annual salary in the whole period of his service in
contracted-out employment by reference to the scheme; or

(b)his final salary,

(3) Where it is a condition of the scheme that the earner shall complete a
specified minimum period of service before qualifying for requisite benefits
in excess of guaranteed minimum pensions, the scheme's rules need not provide
as in paragraph (2) for an earner whose service is terminated before
completion of that minimum period.

(4) The earner's pension need not be in accordance with paragraph (2) in case
of his service in the relevant employment being terminated before he attains
the scheme's normal pension age and when

(a)he has completed in that employment less than five years' qualifying
service for the purposes of Schedule 3; or

(b)he is under the age of 26 on termination of that employment.

(5) Where the scheme provides for the annual rate of the pension to be
calculated by reference to the earner's average annual salary,

(a)the method of computing average annual salary must be approved by the
Occupational Pensions Board; and

(b)the scheme must provide that earnings for any period falling within any tax
year shall, for the purposes of the calculation, be treated as increased by
the same percentage as that prescribed for the increase of earnings factors
for that year.

(6) In paragraph (5)(b), "prescribed" means prescribed by [the last order
under Article 23 to come into force] before the earner attains whatever is the
scheme's normal pension age or (if earlier) his service in the relevant
employment is terminated.

(7) Where the scheme provides for the annual rate of the pension to be
calculated by reference to the earner's final salary,

(a)the method of ascertaining final salary; and

(b)the scheme's provisions for calculating the rate of pension by reference to
it,

(8) In deciding whether or not to give their approval under paragraph (7)(b)
the Board shall have regard to any aspects of the scheme which appear to them
to be relevant, but in particular to the interval (if any) between the end of
the period by reference to which final salary is to be determined and the
scheme's normal pension age and to what provision (if any) is made for
revaluing the salary during any such interval.

(9) Subject to the foregoing provisions, the scheme may provide

(a)for excluding earnings of any kind from the salary by reference to which
the annual rate of the earner's pension is to be calculated; and

(b)for excluding any amount of earnings of the kind that are to constitute
that salary except so much (if any) as would, if expressed as a weekly rate,
exceed one and a half times the lower earnings limit but would not exceed the
upper earnings limit;

(10) In paragraph (9) references to the lower and upper earnings limits, in
relation to any earnings, are references to those limits as in force when the
earnings are paid.

(11) The scheme may, with the approval of the Occupational Pensions Board,
provide for a lower percentage than that specified in paragraph (2); but the
Board shall not approve any such provision unless they are satisfied that it
will not result in the benefits of the scheme, taken as a whole, being less
favourable to the earner than would otherwise have been the case; and in
deciding whether or not to give their approval the Board shall have regard to

(a)whether any lump sum payments are provided in addition to the pension;

(b)the extent, if any, to which earnings of any kind or amount are excluded
from the salary by reference to which the pension is to be calculated; and

(c)any other features of the scheme that appear to the Board to be relevant.

© 1975 Crown Copyright

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