PART 4Modification of schemes
Money purchase underpin benefits and top-up benefits8
1
This regulation applies in relation to any time on or after the appointed day when a member of an occupational pension scheme or a survivor of a member has under the scheme a right or entitlement to—
a
money purchase underpin benefits, or
b
money purchase benefits, where, under the scheme, the member has a contingent right to a top-up benefit if the amount of the member's rights to money purchase benefits falls short of a defined benefit minimum promised to the member.
2
Where this regulation applies, Article 67A of the 1995 Order applies as if—
a
in paragraph (6)—
i
in sub-paragraph (a)(i) the second “or” were omitted, and
ii
after sub-paragraph (a)(i) there were inserted—
ia
any contingent right under the scheme rules to a defined benefit minimum (in relation to money purchase underpin benefits) or to a top-up benefit (to which, under the scheme, a member has rights only where the amount of the member's rights to money purchase benefits falls short of a defined benefit minimum promised to the member), or
b
after paragraph (6) there were inserted—
6A
In paragraph (6)—
a
“defined benefit minimum” and “top-up benefit” have the meanings given by regulation 3(2) of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014, and
b
“money purchase underpin benefits” has the meaning given by regulation 1(2) of those Regulations.
c
in paragraph (7) after “At any time when the pensionable service of a member of an occupational pension scheme is continuing,” there were inserted “
subject to paragraph (7A)
”
;
d
after paragraph (7) there were inserted—
7A
Where a contingent right specified in paragraph (6)(a)(ia) would be extinguished if a member had opted to terminate pensionable service under the scheme, the member's subsisting right to that contingent benefit is to be determined as if the member had not opted to terminate that pensionable service.
3
In this regulation “defined benefit minimum” and “top-up benefit” have the meanings given by regulation 3(2).