
1 

(1) These Regulations may be cited as the Occupational and Personal Pension Schemes (Authorised Payments) Regulations (Northern Ireland) 2009 and shall come into operation on 1st December 2009.
(2) The Interpretation Act (Northern Ireland) 1954 shall apply to these Regulations as it applies to an Act of the Assembly.
2 
For regulation 5 of the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991 (short service benefit in lump sum form) substitute—“
5. 
For the purposes of section 67(6) of the Act (basic principle as to short service benefit), the circumstances in which the trustees or managers of a scheme may provide for payment of short service benefit in the form of a lump sum before normal pension age are that the payment of a lump sum—
(a) to the member is permitted in accordance with paragraph (a), (b), (e), (f) or (g) of the lump sum rule in section 166(1) of the Finance Act 2004; or
(b) is—
(i) made by a registered pension scheme (within the meaning given in section 150(2) of the Finance Act 2004);
(ii) a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments); and
(iii) made to or in respect of a member.”.
3 
In regulation 5 of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 1996 (conditions upon which appropriate policies of insurance may be commuted)—
(a) in paragraph (1) for “paragraph (2)” substitute “paragraph (2), (2A)”;
(b) after paragraph (2) insert—“
(2A) This paragraph is satisfied if the lump sum payment is—
(a) made by a registered pension scheme (within the meaning given in section 150(2) of the Finance Act 2004);
(b) a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments), and
(c) made to or in respect of a member.”.
4 

(1) The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 are amended in accordance with paragraphs (2) and (3).
(2) In regulation 20(1) (payment of a lump sum instead of a pension payable under a relevant scheme)—
(a) omit “is permitted either”;
(b) in sub-paragraphs (a) and (b) at the beginning insert “is permitted”;
(c) at the end of sub-paragraph (a) omit “or”;
(d) after sub-paragraph (b) add—“or
(c) is—
(i) made by a registered pension scheme (within the meaning given in section 150(2) of the 2004 Act);
(ii) a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments), and
(iii) made to or in respect of a member.”.
(3) In regulation 60(1)(b)(i) (payment of a guaranteed minimum pension as a lump sum)—
(a) omit “qualifies as”;
(b) in sub-heads (aa) and (bb) at the beginning insert “qualifies as”;
(c) at the end of sub-head (aa) omit “or”;
(d) after sub-head (bb) add—“(cc) is made by a registered pension scheme (within the meaning given in section 150(2) of the 2004 Act), is a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments) and is made to or in respect of a member, or”.
5 
In regulation 8(6)(b) of the Occupational Pension Schemes (Winding Up) Regulations (Northern Ireland) 1996 (requirements to be satisfied by transferee schemes, annuities, etc.) for head (i) substitute—“
(i) of a lump sum—(aa) that is a trivial commutation lump sum or a winding up lump sum for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (registered pension schemes: authorised lump sums – lump sum rule) is made to a member, or(bb) is made by a registered pension scheme (within the meaning given in section 150(2) of the Finance Act 2004), is a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments) and is made to or in respect of a member, and”.
6 
In regulation 8 of the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997 (giving effect to protected rights by the provision of a lump sum)—
(a) in paragraph (1) for “either paragraph (1A)” substitute “paragraph (1A), (1AA)”;
(b) after paragraph (1A) insert—“
(1AA) This paragraph is satisfied if the lump sum payment is—
(a) made by a registered pension scheme (within the meaning given in section 150(2) of the Finance Act 2004);
(b) a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments), and
(c) made to or in respect of a member.”.
7 
In regulation 2(1)(a) of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997 (commutation of a pension under an occupational pension scheme)—
(a) at the end of head (i) omit “or”;
(b) after head (ii) add—“
(iii) the earner or the earner’s widow, widower or surviving civil partner is a payment—(aa) by a registered pension scheme (within the meaning given in section 150(2) of the 2004 Act), and(bb) that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments), or”.
8 
In regulation 15 of the Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000 (disqualification as a destination for pension credit – annuity contracts and insurance policies)—
(a) in paragraph (4)—
(i) omit “either”;
(ii) at the end of sub-paragraph (a) omit “or”;
(iii) after sub-paragraph (a) insert—“
(aa) the condition set out in paragraph (5A) is satisfied, or”;
(b) after paragraph (5) insert—“
(5A) The condition referred to in paragraph (4)(aa) is that the lump sum payment is—
(a) made by a registered pension scheme (within the meaning given in section 150(2) of the Finance Act 2004);
(b) a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments), and
(c) made to or in respect of a member.”.
9 
For regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000 (pension credit benefit in lump sum form) substitute—“
3. 
For the purposes of section 97C(2) (basic principle as to pension credit benefit), the circumstances in which the trustees or managers of a scheme may provide for payment of pension credit benefit in the form of a lump sum before normal benefit age are—
(a) those which permit payment of a lump sum in accordance with paragraph (a), (b), (e), (f) or (g) of the lump sum rule in section 166(1) of the Finance Act 2004, or
(b) that the lump sum payment is—
(i) made by a registered pension scheme (within the meaning given in section 150(2) of the Finance Act 2004);
(ii) a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (commutation payments), and
(iii) made to or in respect of a member.”.
10 
The following regulations are revoked—
(a) regulation 3(2) of the Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2007;
(b) regulation 2 of the Occupational Pension Schemes (Winding Up, Winding Up Notices and Reports, etc.) (Amendment) Regulations (Northern Ireland) 2007;
(c) regulation 14(3) of the Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 2009.
Sealed with the Official Seal of the Department for Social Development on 10th November 2009
(L.S.)B McGahan
A senior officer of the Department for Social Development
