SOCIAL SECURITY PENSIONS (NORTHERN IRELAND) ORDER 1975

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SOCIAL SECURITY PENSIONS (NORTHERN IRELAND) ORDER 1975 - SECT 46



46.(1) In the case of an occupational pension scheme which is contracted-out,
the Occupational Pensions Board may, for the event of its ceasing to be
contracted-out, approve any arrangements made or to be made in relation to the
scheme, or for its purposes, for the preservation or transfer

(a)of earners' accrued rights to guaranteed minimum pensions under the scheme;

(b)of the liability for the payment of guaranteed minimum pensions thereunder
in respect of persons who have then become entitled to receive them.

(2) If the scheme ceases to be a contracted-out scheme (whether by being wound
up or otherwise) then

(a)in respect of each earner whose accrued rights to guaranteed minimum
pensions under the scheme are not subject to approved arrangements; and

(b)in respect of each person who has then become entitled to receive a
guaranteed minimum pension under the scheme and whose guaranteed minimum
pension rights are not so subject,

(3) A premium under paragraph (2)(a) may be referred to as an "accrued rights
premium"; and a premium under paragraph (2)(b) may be referred to as a
"pensioner's rights premium"; and in each case the premium shall be paid
within the prescribed period to the Department.

(4) For the purposes of paragraph (2), an earner's accrued rights or, as the
case may be, a person's guaranteed minimum pension rights are subject to
approved arrangements if (either before or after the scheme ceased to be
contracted-out) the Occupational Pensions Board have approved arrangements
under paragraph (1) which operate as respects him and the rights in question,
and have not since withdrawn their approval.

(5) The amount

(a)of an accrued rights premium shall be the cost (as certified by the
Department) of providing guaranteed minimum pensions for the earner and his
widow in accordance with his accrued rights under the scheme; and

(b)of a pensioner's rights premium shall be the cost (as so certified) of
providing or continuing to provide any guaranteed minimum pension thereunder,
whether for the earner (or former earner) or for his widow.

[(6) In determining the amount of any state scheme premium payable under this
Article where one or more of the five tax years ending with the tax year in
which the scheme ceases to be contracted-out is a relevant year in relation to
the earner, the costs referred to in paragraph (5)(a) and (b) 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 in any of those five tax years increasing a
relevant earnings factor 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

(i)constitutes or begins before the relevant contributions year, or

(ii)begins after the final relevant year in relation to the earner;

(7) In calculating those costs, the Department shall apply whichever of the
prescribed actuarial tables (as in force at the time when the scheme ceases to
be contracted-out) is applicable in accordance with the regulations
prescribing the tables.

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

(9) Payment of an accrued rights premium shall extinguish the earner's accrued
rights to guaranteed minimum pensions under the scheme; and payment of a
pensioner's rights premium shall extinguish any right to receive guaranteed
minimum pensions thereunder, whether for the earner (or former earner) or for
his widow.

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Northern Irish Legislation

SOCIAL SECURITY PENSIONS (NORTHERN IRELAND) ORDER 1975 - SECT 46