Pension Schemes Act (Northern Ireland) 2016

JurisdictionNorthern Ireland
Citation2016 NI c 1
defined benefits scheme - see section 2;shared risk scheme (sometimes known as “defined ambition”) - see section 3;defined contributions scheme - see section 4.do not apply in any public service pensions legislation;apply in other legislation only where legislation expressly provides for the definitions to apply.(a) the scheme provides for all members to be paid retirement income beginning at normal pension age and continuing for life,(b) there is a full pensions promise in relation to the retirement income and any other retirement benefits that may be provided to members,(c) the normal pension age in relation to the retirement income and any other retirement benefits that may be provided to members is fixed, and(d) such other requirements as may be specified in regulations are met.(a) there is a pensions promise in relation to at least some of the retirement benefits that may be provided to each member, but(b) the scheme is not a defined benefits scheme.
  • A pension scheme is a “defined contributions scheme” if there is no pensions promise in relation to any of the retirement benefits that may be provided to the members.
  • the scheme provides for there to be a promise, at all times before the benefit comes into payment, about the level of the benefit, andthe level of the benefit is to be determined wholly by reference to that promise in all circumstances.(2) For the purposes of sections 3 and 4 there is a “pensions promise” in relation to a retirement benefit if the scheme provides for there to be a promise, at a time before the benefit comes into payment, about the level of the benefit.includes a promise about factors, other than longevity, that will be used to calculate the level of the benefit,does not include a promise if, or to the extent that, it consists merely of a promise that the level of the benefit will be calculated by reference to an amount available for its provision, andin the case of a benefit the level of which depends on the amount available for the provision of benefits to or in respect of the member and one or more other members collectively, does not include a promise about the factors used to determine what proportion of that amount is available for the provision of the particular benefit.sets out the promise, orrequires the promise to be obtained from a third party.the option of a promise from the scheme, orthe option of requiring a promise to be obtained from a third party, (whether or not the option is subject to conditions) .

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