Public Service Pensions Act (Northern Ireland) 2014
| Year | 2014 |
Public Service Pensions Act (Northern Ireland) 2014
2014 CHAPTER 2
An Act to make provision for public service pension schemes; and for connected purposes.
[11th March 2014]
BE IT ENACTED by being passed by the Northern Ireland Assembly and assented to by Her Majesty as follows:
Establishment of new schemes
1 Schemes for persons in public service
(1) Regulations may establish schemes for the payment of pensions and other benefits to or in respect of persons specified in subsection (2).
(2) Those persons are-
(a) civil servants;
(b) holders of judicial office;
(c) local government workers;
(d) teachers;
(e) health service workers;
(f) fire and rescue workers;
(g) members of the police service.
(3) These terms are defined in Schedule 1.
(4) In this Act, regulations under this section are called "scheme regulations".
2 Responsible authority for schemes
(1) The persons who may make scheme regulations are set out in Schedule 2.
(2) In this Act, the person who may make scheme regulations for any description of persons specified in section 1(2) is called the "responsible authority" for the scheme for those persons.
3 Scheme regulations
(1) Scheme regulations may, subject to this Act, make such provision in relation to a scheme under section 1 as the responsible authority considers appropriate.
(2) That includes in particular-
(a) provision as to any of the matters specified in Schedule 3;
(b) consequential, supplementary, incidental or transitional provision in relation to the scheme or any provision of this Act.
(3) Scheme regulations may-
(a) make different provision for different purposes or cases (including different provision for different descriptions of persons);
(b) make retrospective provision (but see section 23);
(c) allow any person to exercise a discretion.
(4) The consequential provision referred to in subsection (2)(b) includes consequential provision amending any primary legislation made or passed before or within the period of 12 months from the date on which this Act receives Royal Assent (as well as consequential provision amending any secondary legislation).
(5) Scheme regulations require the consent of the Department of Finance and Personnel before being made, unless they are to be made by that Department.
Governance
4 Scheme manager
(1) Scheme regulations for a scheme under section 1 must provide for a person to be responsible for managing or administering-
(a) the scheme, and
(b) any statutory pension scheme that is connected with it.
(2) In this Act, that person is called the "scheme manager" for the scheme (or schemes).
(3) The scheme manager may in particular be the responsible authority.
(4) Subsection (1) does not apply to a scheme under section 1 which is an injury or compensation scheme.
(5) Scheme regulations may comply with the requirement in subsection (1)(a) or (b) by providing for different persons to be responsible for managing or administering different parts of a scheme (and references in this Act to the "scheme manager", in such a case, are to be construed accordingly).
(6) For the purposes of this Act, a scheme under section 1 and another statutory pension scheme are connected if and to the extent that the schemes make provision in relation to persons of the same description.
(7) Scheme regulations may specify exceptions to subsection (6).
5 Pension board
(1) Subject to subsection (2), scheme regulations for a scheme under section 1 must provide for the establishment of a pension board for the scheme.
(2) Scheme regulations for a scheme under section 1, which is a scheme made by virtue of section 1(2)(c), may make the provision required under subsection (1) above by providing for the appointment of the Northern Ireland Local Government Officers' Superannuation Committee as the pension board for that scheme.
(3) It is the responsibility of the pension board for a scheme to assist the scheme manager (or each scheme manager) in relation to the following matters-
(a) securing compliance with the scheme regulations and other legislation relating to the governance and administration of the scheme and any statutory pension scheme that is connected with it;
(b) securing compliance with requirements imposed in relation to the scheme and any connected scheme by the Pensions Regulator;
(c) such other matters as the scheme regulations may specify.
(4) In making the regulations the responsible authority must have regard to the desirability of securing the effective and efficient governance and administration of the scheme and any connected scheme.
(5) The regulations must include provision-
(a) requiring the scheme manager-
(i) to be satisfied that a person to be appointed as a member of the board does not have a conflict of interest, and
(ii) to be satisfied from time to time that none of the members of the board has a conflict of interest;
(b) requiring a member of the board, or a person proposed to be appointed as a member of the board, to provide the scheme manager with such information as the scheme manager rea sonably requires for the purposes of provision under paragraph (a);
(c) requiring the board to include employer representatives and member representatives in equal numbers.
(6) In subsection (5)(a) "conflict of interest", in relation to a person, means a financial or other interest which is likely to prejudice the person's exercise of functions as a member of the board (but does not include a financial or other interest arising merely by virtue of membership of the scheme or any connected scheme).
(7) In subsection (5)(c)-
(a) "employer representatives" means persons appointed to the board for the purpose of representing employers for the scheme and any connected scheme;
(b) "member representatives" means persons appointed to the board for the purpose of representing members of the scheme and any connected scheme.
(8) In this Act, "pension board" means a board established or appointed under this section.
(9) This section does not apply to a scheme under section 1 which is an injury or compensation scheme.
6 Pension board: information
(1) The scheme manager for a scheme under section 1 and any statutory pension scheme that is connected with it must publish information about the pension board for the scheme or schemes (and keep that information up-to-date).
(2) That information must include information about-
(a) who the members of the board are,
(b) representation on the board of members of the scheme or schemes, and
(c) the matters falling within the board's responsibility.
(3) This section does not apply to a scheme under section 1 which is an injury or compensation scheme.
7 Scheme advisory board
(1) Scheme regulations for a scheme under section 1 which is a defined benefits scheme must provide for the establishment of a board with responsibility for providing advice to the responsible authority, at the authority's request, on the desirability of changes to the scheme.
(2) Where by virtue of section 4(5), there is more than one scheme manager for a scheme mentioned in subsection (1) (and accordingly there is more than one pension board for the scheme), the regulations may also provide for the board to provide advice (on request or otherwise) to the scheme managers or the scheme's pension boards in relation to the effective and efficient administration and management of-
(a) the scheme and any statutory pension scheme that is connected with it, or
(b) any pension fund of the scheme and any connected scheme.
(3) A person to whom advice is given by virtue of subsection (1) or (2) must have regard to the advice.
(4) The regulations must include provision-
(a) requiring the responsible authority-
(i) to be satisfied that a person to be appointed as a member of the board does not have a conflict of interest, and
(ii) to be satisfied from time to time that none of the members of the board has a conflict of interest;
(b) requiring a member of the board, or a person proposed to be appointed as a member of the board, to provide the responsible authority with such information as the authority reasonably requires for the purposes of provision under paragraph (a).
(5) In subsection (4)(a) "conflict of interest", in relation to a person, means a financial or other interest which is likely to prejudice the person's exercise of functions as a member of the board (but does not include a financial or other interest arising merely by virtue of membership of the scheme or any connected scheme).
(6) In this Act, a board established under this section is called a "scheme advisory board".
Design
8 Types of scheme
(1) Scheme regulations may establish a scheme under section 1 as-
(a) a defined benefits scheme,
(b) a defined contributions scheme, or
(c) a scheme of any other description.
(2) A scheme under section 1 which is a defined benefits scheme must be-
(a) a career average revalued earnings scheme, or
(b) a defined benefits scheme of such other description as regulations made by the Department of Finance and Personnel may specify.
(3) Such regulations may not specify a final salary scheme under subsection (2)(b).
(4) A scheme under section 1 is a "career average revalued earnings scheme" if-
(a) the pension payable to or in respect of a person, so far as it is based on the person's pensionable service, is determined by reference to the person's pensionable earnings in each year of pensionable service, and
(b) those earnings, or a proportion of those earnings accrued as a pension, are under the scheme revalued each year until the person leaves pensionable service.
(5) Regulations made by the Department of Finance and Personnel under subsection (2)(b) are...
To continue reading
Request your trial