Amendment of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations2
1
The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations (Northern Ireland) 2010 M1 are amended in accordance with paragraphs (2) to (5).
2
In regulation 5E(1) M2 (winding-up lump sum) for sub-paragraph (c) substitute—
c
during the period of 12 months beginning with the date on which the winding-up lump sum was paid—
i
the worker has ceased to be employed and been re-employed by that person, and
3
After regulation 5E insert—
Company directors5EA
1
This regulation applies to a jobholder who holds office as a director of the company by which that jobholder is employed.
2
In relation to the jobholder to whom this regulation applies, sections 3(2) (automatic enrolment) and 5(2) (automatic re-enrolment) are to be read as if for “must” there were substituted
“ may ”.Limited liability partnerships5EB
1
This regulation applies where a person (P) is a jobholder and—
a
P is a member of a limited liability partnership;
b
qualifying earnings are payable to P by that limited liability partnership, and
c
P is not treated for income tax purposes as being employed by that limited liability partnership under section 863A of the Income Tax (Trading and other Income) Act 2005 M5 (limited liability partnerships: salaried members).
2
Where this regulation applies, in relation to the jobholder referred to in paragraph (1), sections 3(2) (automatic enrolment) and 5(2) (automatic re-enrolment) are to be read as if for “must” there were substituted
“ may ”.
4
In regulation 5F(1)(a) (effect of exercise of discretion) for “or 5E” substitute “
, 5E, 5EA or 5EB
”
.
5
In regulation 32M M6 (alternative quality requirements for UK defined benefits schemes)—
a
in paragraph (3) after “(4)” insert “
, (5A)
”
;
b
at the beginning of paragraph (4) insert “
Subject to paragraph (5A),
”
;
c
after paragraph (5) insert—
5A
Subject to paragraph (5C), where the conditions in paragraph (5B) are met, the employer of the jobholder may choose, notwithstanding paragraph (4), that the relevant members are the members of the scheme who were active members and in contracted-out employment on the effective date of the most recent written report from an actuary.
5B
The conditions to be met for the purposes of paragraph (5A) are—
a
the jobholder was in contracted-out employment on 5th April 2016, and
b
the rules of the scheme of which the jobholder is a member have not been amended, on or after the coming into operation of these Regulations, in any way which would mean that the rules of the scheme would not satisfy the contracting-out requirements if those requirements were still in operation.
5C
Paragraph (5A) applies until the earlier of—
a
the date the first written report determining whether there is, or was, a material difference in the cost of providing the benefits accruing for different groups of relevant members over the relevant period, taking into account the criteria mentioned in paragraph (4), is signed by an actuary after 5th April 2016;
b
5th April 2019.
5D
For the purposes of paragraph (5A), the effective date of the most recent written report is the date by reference to which the information in that report is stated.
d
in paragraph (6) for “paragraph (4)” substitute “
paragraphs (4) and (5A)
”
;
e
in paragraph (9) —
i
after “they are” insert “
equal to or more than
”
;
ii
for sub-paragraph (b) substitute—
b
basic pay;
iii
in sub-paragraph (c) omit the words from “pensionable earnings” to “that member's”;
iv
for sub-paragraph (d) substitute—
d
earnings, or
f
in paragraph (12) after the definition of “basic pay” insert—
“contracted-out employment” has the meaning given in section 4(1) of the 1993 Act M7 (meaning of “contracted-out” employment);
“contracting-out requirements” means the requirements set out in section 5 of the 1993 Act M8 (requirements for certification of schemes: general) as they had effect immediately before 6th April 2016;