PART VN.I.PENSION SHARING

CHAPTER IIN.I.SHARING OF STATE SCHEME RIGHTS

Shareable state scheme rightsN.I.

44.—(1) Pension sharing is available under this Chapter in relation to a person's shareable state scheme rights.

(2) For the purposes of this Chapter, a person's shareable state scheme rights are—

(a)his entitlement, or prospective entitlement to a Category A retirement pension by virtue of section 44(3)(b) of the Contributions and Benefits Act (earnings-related additional pension), and

(b)his entitlement, or prospective entitlement, to a pension under section 55A of that Act (shared additional pension).

Activation of benefit sharingN.I.

45.—(1) [F1Article 46 or 46A applies where any of the following has taken effect in relation to a person's shareable state scheme rights] —

(a)a pension sharing order under the Matrimonial Causes Order;

[F2(aa)a pension sharing order under Schedule 15 to the Civil Partnership Act 2004,]

(b)an order under Part IV of the [1989 NI 4.] Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (financial relief in Northern Ireland in relation to overseas divorce etc.) corresponding to such an order mentioned in sub-paragraph (a);

[F2(ba)an order under Schedule 17 to the 2004 Act (financial relief in Northern Ireland after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (aa),]

(c)an order or provision to which any of paragraphs (a) to (g) of subsection (1) of section 48 of the Welfare Reform Act applies (pension sharing orders under the [1973 c. 18.] Matrimonial Causes Act 1973 and the [1985 c. 37.] Family Law (Scotland) Act 1985 and other provisions and orders in Great Britain corresponding to pension sharing orders under those Acts).

(2) The reference in paragraph (1) to paragraphs (a) to (g) of subsection (1) of section 48 of the Welfare Reform Act is to those paragraphs as they have effect subject to the provisions of that section and section 85(5) of that Act.

Creation of state scheme pension debits and creditsN.I.

46.—(1) On the application of this Article—

(a)the transferor becomes subject, for the purposes of Part II of the Contributions and Benefits Act (contributory benefits), to a debit of the appropriate amount, and

(b)the transferee becomes entitled, for those purposes, to a credit of that amount.

(2) Where the relevant order or provision specifies a percentage value to be transferred, the appropriate amount for the purposes of paragraph (1) is the specified percentage of the cash equivalent on the transfer day of the transferor's shareable state scheme rights immediately before that day.

(3) Where the relevant order or provision specifies an amount to be transferred, the appropriate amount for the purposes of paragraph (1)is the lesser of—

(a)the specified amount, and

(b)the cash equivalent on the transfer day of the transferor's relevant state scheme rights immediately before that day.

[F3(4) The Department may by regulations make provision for the calculation and verification of cash equivalents for the purposes of this Article.

(4A) The power conferred by paragraph (4) includes power to provide—

(a)for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b)for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations.]

(5) In determining prospective entitlement to a Category A retirement pension for the purposes of this Article, only tax years before that in which the transfer day falls shall be taken into account.

(6) In this Article—

• “relevant order or provision” means the order or provision by virtue of which this Article applies;

• “transfer day” means the day on which the relevant order or provision takes effect;

• “transferor” means the person to whose rights the relevant order or provision relates;

• “transferee” means the person for whose benefit the relevant order or provision is made.

Effect of state scheme pension debits and creditsN.I.

47.—(1) Schedule 6 (which amends the Contributions and Benefits Act for the purpose of giving effect to debits and credits under Article 46(1)) shall have effect.

(2) F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Chapter IIN.I.

48.  In this Chapter—

• “shareable state scheme rights” has the meaning given by Article 44(2); and

• “tax year” has the meaning given by section 121(1) of the Contributions and Benefits Act.