Part D Retirement Benefits

Overriding provisions (contracting-out and Finance Act requirements, etc.)

D16 Guaranteed minimum pensions for members in contracted-out employment, etc.
1 Where—
(a) the employment of a member in any local government employment is contracted-out employment; and
(b) the member has a guaranteed minimum pension under section 10 of the Pension Schemes (Northern Ireland) Act 1993 in relation to benefits under these regulations,
then paragraphs (2) to (4) apply as respects the member’s employment.
2 The member who ceases to hold his local government employment is from the date on which he attains state pensionable age entitled to a pension at a weekly rate equal to that guaranteed minimum (unless on ceasing to hold his local government employment he is entitled to a retirement pension at a higher rate).
3 If the member—
(a) attains state pensionable age while in local government employment;
(b) continues in the same employment for a further period of 5 years; and
(c) does not then cease to hold it,
then he is entitled from the end of that period to so much of his retirement pension as equals that guaranteed minimum (unless he consents to a postponement of the entitlement).
4 The guaranteed minimum referred to in paragraphs (2) and (3) shall, so far as it is attributable to earnings factors for the tax year 1988-89 or for subsequent tax years, be increased in accordance with the requirements of section 105 of the Pension Schemes (Northern Ireland) Act 1993.
5 A person’s retirement pension is not to be reduced under regulation D13 to less than the aggregate of—
(a) any minimum rate of equivalent pension benefits applicable under the Insurance Act, and
(b) the annual rate obtained by multiplying one eightieth of the person’s pensionable remuneration by the length in years of the whole period of the person’s membership in contracted-out employment during the period beginning with the relevant date and ending with 30th April 1995.
6 In paragraph (5) “the relevant date” means—
(a) in the case of a man, 17th May 1990; and
(b) in the case of a woman, 6th April 1978.
7 Where—
(a) if these regulations had come into force on 17th May 1990, a man would have been entitled to make an election under regulation D9(3), and
(b) he gives notice of such election within six months of the commencement date,
the election may be expressed to have the effect as if these regulations had commenced on 17th May 1990 and the notice had been given on the first day on which he would in that case have been entitled to give notice of the election.
8 Where a person’s local government employment is or was contracted-out employment, a surrender under regulation D14 (together with any previous surrenders) shall not result—
(a) in the annual rate of the retirement pension being less than one eightieth of the pensionable remuneration, multiplied by the length in years of the whole period of his membership in contracted-out employment after 5th April 1978, or
(b) (disregarding the effect of the preceding paragraphs) in the weekly rate of the retirement pension being less than his guaranteed minimum, if any.
9 Where a person making a surrender under regulation D14—
(a) is in local government employment,
(b) has attained normal retirement age, and
(c) has a statutory pension entitlement,
references in paragraph (8) to the retirement pension are references to the retirement pension which would become payable if he were to cease to hold his employment on the day on which the surrender takes effect.
10 Where this regulation applies it overrides any provision in these regulations to the extent to which it conflicts with it, except—
(a) regulation D15 and Part I of Schedule D5 (reduction of retirement pension in the case of certain re-employed pensioners);
(b) regulation H4 (forfeiture of rights); and
(c) regulation H5 (commutation of small pensions).

D17 Revaluation of guaranteed minimum in certain cases
1 This regulation applies where—
(a) a person has ceased to be a member; and
(b) the guaranteed minimum in relation to his pension is appropriately secured (within the meaning of section 15 of the Pension Schemes (Northern Ireland) Act 1993).
2 The earnings factors of such a person shall be determined for the purposes of section 10(2) of that Act—
(a) by reference to the last order under article 23 of the Social Security Pensions (Northern Ireland) Order 1975 or section 130 of the Social Security Administration (Northern Ireland) Act 1992 to come into force before the end of the tax year in which he ceased to be a member, and
S.I. 1975/1503 (N.I. 15); Article 23 was repealed by the Social Security (Consequential Provisions) (Northern Ireland) Act (1992 c. 9)
1992 c. 8
(b) without reference to the last such order to come into force before the end of the final relevant year.
3 In this regulation “final relevant year” has the meaning given in section 12(5) of the Pension Schemes (Northern Ireland) Act 1993.

D18 Equivalent pension benefits
1 If when a member ceased to hold a local government employment—
(a) he was not entitled in relation to that employment to a retirement pension under regulation D5, D6, D7, D9 or D11, and he receives a return of contributions;
(b) the whole or some part of his period of membership was in service in a non-participating employment or in service which relates to employment with a non-local government employer in a non-participating employment;
(c) a period of his service in a non-participating employment came to an end by reason—
(i) of the repeal of section 55(1) of the Insurance Act; or
1966 c. 6 (N.I); section 55(1) was repealed by the Social Security Act 1973 (c. 38), section 100(2)(b), Schedule 28
(ii) of the provisions of regulation 2(2) of the National Insurance (Non-Participation — Assurance of Equivalent Pension Benefits) Regulations (Northern Ireland) 1960 (as modified by regulation 10(2)(a) or (b) of the Transitional Provisions Regulations); and
S.R. & O. (N.I.) 1960 No. 181
(d) at some time during the settlement period (within the meaning of regulation 2 of the Transitional Provisions Regulations) he became, and has remained, assured of equivalent pension benefits;
then he is entitled in relation to that employment to an annual retirement pension payable at the rate of the equivalent pension benefits applicable to him in respect of any period of membership in service in a non-participating employment or which relates to service with a non-local government employer in a non-participating employment.
2 A retirement pension to which a person has become entitled by virtue of paragraph (1) is payable from the first date on which he—
(a) has attained state pensionable age, and
(b) is no longer in any local government employment.
3 For the purposes of these regulations a member to whom this regulation applies shall be treated as having ceased to hold the employment in respect of which he receives a return of contributions on the day before the date of receipt.

D19 National insurance
1 Subject to paragraph (2), where a pension is payable to a member who attains state pensionable age in respect of a period of service in a non-participating employment, which counts for the purpose of calculating any benefits payable to the member (other than excepted service), no provision in these regulations—
(a) for the surrender or assignment of a pension, or
(b) for the reduction, termination or suspension of a pension,
shall apply so as to reduce the pension below the minimum rate of equivalent pension benefits applicable in respect of that period of service under the Insurance Act.
2 Paragraph (1) does not apply to any provision for the reduction, termination or suspension of a pension, which is used for a purpose prescribed by regulations made, or deemed to have been made, under section 56(1)(c) of the Insurance Act (equivalent pension benefits).
3 For the purposes of paragraph (1) “excepted service”, in relation to any person, means any earlier period of such service as there mentioned, being service in respect of which—
(a) a payment in lieu of contributions has been made, or
(b) equivalent pension benefits satisfying the requirements of the Insurance Act have already been assured to him.

D20 Limitations on benefits etc.
The provisions of this Part are subject to Schedule C4 (limitations on contributions and benefits) and to the general provisions in Part H.