Part II, Article 89 · The Pensions (Northern Ireland) Order 1995

Contents

Article 89Inalienability of occupational pension#

(1)Subject to paragraph (5), where a person is entitled to a pension under an occupational pension scheme or has a right to a future pension under such a scheme

(a)the entitlement or right cannot be assigned, commuted or surrendered,

(b)the entitlement or right cannot be charged or a lien exercised in respect of it, and

(c)no set-off can be exercised in respect of it,

and an agreement to effect any of those things is unenforceable.

(2)Where by virtue of this Article a person's entitlement to a pension under an occupational pension scheme, or right to a future pension under such a scheme, cannot, apart from paragraph (5), be assigned, no order can be made by any court the effect of which would be that he would be restrained from receiving that pension.

(4)Paragraph (2) does not prevent the making of—

(a)an attachment of earnings order under the Judgments Enforcement (Northern Ireland) Order 1981^note, or

(b)an income payments order under the Insolvency (Northern Ireland) Order 1989^note.

(5)In the case of a person ( “the person in question”) who is entitled to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme, paragraph (1) does not apply to any of the following, or any agreement to effect any of the following—

(a)an assignment in favour of the person in question's widow, widower, surviving civil partner or dependant,

(b)a surrender, at the option of the person in question, for the purpose of—

(i)providing benefits for that person's widow, widower, surviving civil partner or dependant, or

(ii)acquiring for the person in question entitlement to further benefits under the scheme,

(c)a commutation—

(i)of the person in question's benefit on or after retirement or in exceptional circumstances of serious ill health,

(ii)in prescribed circumstances, of any benefit for that person's widow, widower, surviving civil partner or dependant, or

(iii)in other prescribed circumstances,

(d)subject to paragraph (6), a charge or lien on, or set-off against, the person in question's entitlement, or right, (except to the extent that it includes transfer credits other than prescribed transfer credits) for the purpose of enabling the employer to obtain the discharge by him of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by him,

(e)subject to paragraph (6), except in prescribed circumstances a charge or lien on, or set-off against, the person in question's entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme and—

(i)arising out of a criminal, negligent or fraudulent act or omission by him, or

(ii)in the case of a trust scheme of which the person in question is a trustee, arising out of a breach of trust by him.

(f)subject to paragraph (6), a charge or lien on, or set-off against, the person in question's entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme arising out of a payment made in error in respect of the pension.

(6)Where a charge, lien or set-off is exercisable by virtue of paragraph (5)(d), (e) or (f)

(a)its amount must not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person in question's entitlement or accrued right, and

(b)the person in question must be given a certificate showing the amount of the charge, lien or set-off and its effect on his benefits under the scheme,

and where a dispute has arisen as to the amount of the monetary obligation in question, the charge, lien or set-off must not be exercised unless one of the following conditions is met.

(6A)The conditions mentioned in paragraph (6) are—

(a)that the dispute has been resolved by the parties to it;

(b)that the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes (Northern Ireland) Act 1993 or Part 10 of the Pension Schemes Act 1993 (investigations) as to the amount of the monetary obligation in question;

(c)that the monetary obligation in question has become enforceable—

(i)under an order of a competent court, or

(ii)in consequence of an award of an arbitrator.

(7)This Article is subject to section 155 of the Pension Schemes Act (inalienability of guaranteed minimum pension ^note...).

Contains public sector information licensed under the Open Government Licence v3.0.

Defined terms · 69

Show every defined term

actuarial equivalence statement
means a statement in writing which—
appointed day
means the day appointed under Article 110(2) of the 2005 Order (no pension protection under Chapter 3 of Part III of that Order if the scheme begins winding up before the day appointed by the Department),
appropriate rights
has the same meaning as in paragraph 5 of Schedule 5 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (pension credits: mode of discharge);
bankrupt
has the meaning given by Article 9 of the Insolvency (Northern Ireland) Order 1989, • “company” means a company as defined in section 1(1) of the Companies Act 2006 or a company which may be wound up under Part VI of the Insolvency (Northern Ireland) Order 1989 (unregistered companies).
company
means a company as defined in section 1(1) of the Companies Act 2006 or a company which may be wound up under Part VI of the Insolvency (Northern Ireland) Order 1989 (unregistered companies).
consumer prices index
means— (a) the general index of consumer prices (for all items) published by the Statistics Board, or (b) where that index is not published for a month, any substituted index or figures published by the Board;
Deposit taker
means—
Detrimental modification
means a modification, other than a prohibited modification, of an occupational pension scheme which on taking effect would or might adversely affect any subsisting right of—
discretionary award
means an award of a prescribed description;
employer-related investments
means— (a) shares or other securities issued by the employer or by any person who is connected with, or an associate of, the employer, (b) land which is occupied or used by, or subject to a lease in favour of, the employer or any such person, (c) property (other than land) which is used for the purposes of any business carried on by the employer or any such person, (d) loans to the employer or any such person, and (e) other prescribed investments, • Definition rep. by SI 2001/3649
enactment
includes any statutory provision (as defined by section 1 of the Interpretation Act (Northern Ireland) 1954);
equal treatment rule
has the meaning given by Article 62, • “firm” means a body corporate or a partnership, • “fund manager”, in relation to an occupational pension scheme, means a person who manages the investments held for the purposes of the scheme, • “government department” means a Northern Ireland department or a department of the government of the United Kingdom;
firm
means a body corporate or a partnership, • “fund manager”, in relation to an occupational pension scheme, means a person who manages the investments held for the purposes of the scheme, • “government department” means a Northern Ireland department or a department of the government of the United Kingdom;
government department
means a Northern Ireland department or a department of the government of the United Kingdom;
guaranteed minimum pension provisions
means so much of the Pension Schemes Act and of any other enactment as relates to guaranteed minimum pensions (within the meaning of that Act).
independent trustee
has the meaning given by Article 23(3), • “managers”, in relation to an occupational pension scheme other than a trust scheme, means the persons responsible for the management of the scheme, • “member”, in relation to an occupational pension scheme, means any active, deferred, pensioner or pension credit member (but see Article 122(4)), •................................ •................................ •................................ • “normal pension age” has the meaning given by section 175 of the Pension Schemes Act, • “payment schedule” has the meaning given by Article 85(2), • “pension credit” means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under section 29(1)(b) of the Welfare Reform and Pensions Act 1999, • “pension credit member”, in relation to an occupational pension scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit, • “pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit, • “pensionabl
multi-employer scheme
means a trust scheme which applies to earners in employments under different employers.
normal pension age
has the meaning given by section 175 of the Pension Schemes Act, • “payment schedule” has the meaning given by Article 85(2), • “pension credit” means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under section 29(1)(b) of the Welfare Reform and Pensions Act 1999, • “pension credit member”, in relation to an occupational pension scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit, • “pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit, • “pensionable service”, in relation to a member of an occupational pension scheme, means service in any description or category of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme, • “pensioner member”, in relation to an occupational pension scheme, means a person who, in respect of his pensionable service under the scheme or by reason of transfe
occupational pension scheme
has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993 and “equal treatment rule” has the meaning given by Article 62 of the Pensions (Northern Ireland) Order 1995.”
payment schedule
has the meaning given by Article 85(2), • “pension credit” means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under section 29(1)(b) of the Welfare Reform and Pensions Act 1999, • “pension credit member”, in relation to an occupational pension scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit, • “pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit, • “pensionable service”, in relation to a member of an occupational pension scheme, means service in any description or category of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme, • “pensioner member”, in relation to an occupational pension scheme, means a person who, in respect of his pensionable service under the scheme or by reason of transfer credits, is entitled to the present payment of pension or other benefits..., • “prescr
pension credit
means a credit under Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 or under section 29(1)(b) of the Welfare Reform and Pensions Act 1999, • “pension credit member”, in relation to an occupational pension scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit, • “pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit, • “pensionable service”, in relation to a member of an occupational pension scheme, means service in any description or category of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme, • “pensioner member”, in relation to an occupational pension scheme, means a person who, in respect of his pensionable service under the scheme or by reason of transfer credits, is entitled to the present payment of pension or other benefits..., • “prescribed” means prescribed by regulations, • “professional advise
pension scheme
means an occupational pension scheme or a personal pension scheme (applying the definitions in section 1 of the Pension Schemes (Northern Ireland) Act 1993, but as if the reference to employed earners in the definition of “personal pension scheme” were to any earners);
premium
means a contributions equivalent premium”,
prescribed
means prescribed by regulations, • “professional adviser”, in relation to a scheme, has the meaning given by Article 47, • “public service pension scheme” has the meaning given by section 1 of the Pension Schemes Act, • “resources”, in relation to an occupational pension scheme, means the funds out of which the benefits provided by the scheme are payable from time to time, including the proceeds of any policy of insurance taken out, or annuity contract entered into, for the purposes of the scheme, • “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988, • “transfer credits” means rights allowed to a member under the rules of an occupational pension scheme by reference to (a) a transfer to the scheme of, or transfer payment to the trustees or managers of the scheme in respect of, any of his rights (including transfer credits allowed) under another occupational pension scheme or a personal pension scheme, other than pension credit rights, or (b) a cash transfer sum paid under Chapter 2 of Part 4ZA of the Pension Schemes Act (transfers and contribution refunds) in respect of him, to the trustees or managers of the scheme, • “trustees or managers”, in relati
Prohibited modification
means a modification of an occupational pension scheme which on taking effect would or might result in any subsisting right of— which is not a right or entitlement to money purchase benefits becoming, or being replaced with, a right or entitlement to collective money purchase benefits under the scheme rules.
proper advice
means—
prospective member
means any person who, under the terms of his contract of service or the rules of the scheme—
protected liabilities
has the meaning given by Article 115 of the Pensions (Northern Ireland) Order 2005, and
Protected modification
means a modification, other than a prohibited modification, of an occupational pension scheme which—
public service pension scheme
has the meaning given by section 1 of the Pension Schemes Act, • “resources”, in relation to an occupational pension scheme, means the funds out of which the benefits provided by the scheme are payable from time to time, including the proceeds of any policy of insurance taken out, or annuity contract entered into, for the purposes of the scheme, • “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988, • “transfer credits” means rights allowed to a member under the rules of an occupational pension scheme by reference to (a) a transfer to the scheme of, or transfer payment to the trustees or managers of the scheme in respect of, any of his rights (including transfer credits allowed) under another occupational pension scheme or a personal pension scheme, other than pension credit rights, or (b) a cash transfer sum paid under Chapter 2 of Part 4ZA of the Pension Schemes Act (transfers and contribution refunds) in respect of him, to the trustees or managers of the scheme, • “trustees or managers”, in relation to an occupational pension scheme, means— (a) in the case of a trust scheme, the trustees of the scheme, and (b) in any other case, t
reference period
has the meaning given by paragraph 2 of Schedule 3 to the Pension Schemes Act 1993, • “revaluation order” means an order under paragraph 2(1) of Schedule 2 to the Pension Schemes Act, •................................ • “revaluation period” has the meaning given by paragraph 2(2) of Schedule 2 to the Pension Schemes Act.
registered pension scheme
means an occupational pension scheme registered under section 153 of the Finance Act 2004 (other than a public service pension scheme).
Regulated modification
means a modification which is— or is both.
regulations
means regulations made by the Lord Chancellor;
relevant legislative provision
means any provision contained in any of the following provisions—
relevant pre-1997 contract of insurance
means a contract of insurance which was entered into before 6th April 1997 with a view to securing the whole or part of the scheme's liability for— (a) any pension or other benefit payable to or in respect of one particular person whose entitlement to payment of a pension or other benefit has arisen, and (b) any benefit which will be payable in respect of that person on his death. • “assets” of a scheme to which this Article applies do not include any assets representing the value of any rights in respect of money purchase benefits under the scheme rules;
retail prices index
means— (a) the general index of retail prices (for all items) published by the Statistics Board, or (b) where that index is not published for a month, any substituted index or figures published by the Board.
retrospectively
means with effect from a date before that on which the power is exercised or, as the case may be, the order is made.
revaluation order
means an order under paragraph 2(1) of Schedule 2 to the Pension Schemes Act, •................................ • “revaluation period” has the meaning given by paragraph 2(2) of Schedule 2 to the Pension Schemes Act.
revaluation period
has the meaning given by paragraph 2(2) of Schedule 2 to the Pension Schemes Act.
scheme failure notice
means a scheme failure notice issued under Article 106(2)(a) or 114(2) of the 2005 Order (scheme rescue not possible).
scheme rules
has the same meaning as in the Pensions (Northern Ireland) Order 2005 ( “the 2005 Order”) (see Article 2 of that Order).
securities
means—
shareable rights
has the same meaning as in Chapter 1 of Part V of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (sharing of rights under pension arrangements);
Subsisting right
means—
the Administration Act
means the Social Security Administration (Northern Ireland) Act 1992;
the applicable rules
has the same meaning as in section 90;
the Authority
means the Pensions Regulator;
the commencement day
means the day appointed for the coming into operation of Article 255 of the Pensions (Northern Ireland) Order 2005 (amendments to Article 51);
the Compensation Board
means the Pensions Compensation Board. • “the compensation provisions” has the meaning given by Article 79(3), • “the Crown” means the Crown in right of Her Majesty's government in Northern Ireland or in right of Her Majesty's government in the United Kingdom;
the compensation provisions
has the meaning given by Article 79(3), • “the Crown” means the Crown in right of Her Majesty's government in Northern Ireland or in right of Her Majesty's government in the United Kingdom;
the Contributions and Benefits Act
means the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
the Crown
means the Crown in right of Her Majesty's government in Northern Ireland or in right of Her Majesty's government in the United Kingdom;
the Department
means the Department of Health and Social Services;
the guarantee date
means the date by reference to which the value of the cash equivalent is calculated, and must be— (a) within the prescribed period beginning with the date of the application, and (b) within the prescribed period ending with the date on which the statement of entitlement is provided to the member. 3 Regulations may make provision in relation to applications for a statement of entitlement, including, in particular, provision as to the period which must elapse after the making of such an application before a member may make a further such application. 4 If, in the case of any scheme, a statement of entitlement has not been provided under this section, Article 10 of the Pens
the maximum amount
means— and the Department may by order amend sub-paragraph (a) by substituting higher amounts for the amounts for the time being specified in that sub-paragraph.
the other party
means the other party to the marriage;
the Paris Agreement goal
means the goal of holding the increase in the average global temperature to well below 2°C above pre-industrial levels referred to in Article 2(1)(a) of the agreement done at Paris on 12 December 2015.
the party with pension rights
means the party to the marriage who has or is likely to have benefits under a pension scheme and “the other party” means the other party to the marriage;
the pension compensation provisions
has the same meaning as in Part III of the Pensions (Northern Ireland) Order 2005 (see Article 146 of that Order);
the Pension Schemes Act
means the Pension Schemes (Northern Ireland) Act 1993;
the percentage for non-contributing earners
means— (a) in relation to a salary related contracted-out scheme, 4.8 per cent, and (b) in relation to a money purchase contracted-out scheme, a percentage equal to the sum of the appropriate flat-rate percentages for primary and secondary Class 1 contributions;”
the relevant date
means the date appointed for the coming into operation of section 47 of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000.
the relevant time
means—
the responsible person
means—
the Taxes Act 1988
means the Income and Corporation Taxes Act 1988, • “transfer credits” means rights allowed to a member under the rules of an occupational pension scheme by reference to (a) a transfer to the scheme of, or transfer payment to the trustees or managers of the scheme in respect of, any of his rights (including transfer credits allowed) under another occupational pension scheme or a personal pension scheme, other than pension credit rights, or (b) a cash transfer sum paid under Chapter 2 of Part 4ZA of the Pension Schemes Act (transfers and contribution refunds) in respect of him, to the trustees or managers of the scheme, • “trustees or managers”, in relation to an occupational pension scheme, means— (a) in the case of a trust scheme, the trustees of the scheme, and (b) in any other case, the managers of the scheme, • “trust scheme” means an occupational pension scheme established under a trust.
transfer credits
means rights allowed to a member under the rules of an occupational pension scheme by reference to (a) a transfer to the scheme of, or transfer payment to the trustees or managers of the scheme in respect of, any of his rights (including transfer credits allowed) under another occupational pension scheme or a personal pension scheme, other than pension credit rights, or (b) a cash transfer sum paid under Chapter 2 of Part 4ZA of the Pension Schemes Act (transfers and contribution refunds) in respect of him, to the trustees or managers of the scheme, • “trustees or managers”, in relation to an occupational pension scheme, means— (a) in the case of a trust scheme, the trustees of the scheme, and (b) in any other case, the managers of the scheme, • “trust scheme” means an occupational pension scheme established under a trust.
trust scheme
means an occupational pension scheme established under a trust.
winding up provisions
means this Article and Articles 73, 73A and 74, and