The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024

PART 4 N.I. AMENDMENTS TO REGULATIONS

Amendments to the Occupational Pension Schemes (Scheme Funding) Regulations N.I.

19.—(1) The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005(1) are amended in accordance with paragraphs (2) to (5).

(2) In regulation 2(1) (interpretation)—

(a) after the definition of “the commencement date” insert—

““the Funding and Investment Strategy Regulations” means the Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024;”;

(b) in the definition of “the relevant accounts” in paragraph (b) for “valuation.” substitute “valuation;”;

(c) after the definition of “the relevant accounts” add—

““relevant date” has the meaning given by regulation 2(1) of the Funding and Investment Strategy Regulations.”.

(3) In regulation 7 (actuarial valuations and reports)—

(a) in paragraph (4)—

(i) in sub-paragraph (a) for “Schedule 1, and” substitute “Schedule 1;”;

(ii) in sub-paragraph (b) for “scheme.” substitute “scheme, and”;

(iii) after sub-paragraph (b) add—

“(c) the actuary’s estimate of—

(i) the maturity of the scheme as at the effective date of the valuation;

(ii) the maturity of the scheme as at the relevant date, where the relevant date is different from the effective date of the valuation;

(iii) the date on which the scheme is expected to (or, if applicable, did) reach significant maturity, and

(iv) the funding level(2) of the scheme as at the effective date of the valuation, calculated in accordance with the requirements in regulation 8(2) of the Funding and Investment Strategy Regulations (actuarial methods and assumptions for purposes of funding level) and expressed as a ratio.”;

(b) after paragraph (4) insert—

“(4A) Where, for the purposes of the actuary’s estimates in paragraph (4)(c), the actuary is required to use actuarial assumptions, the actuary must use the assumptions chosen by the trustees or managers of the scheme, in accordance with the Funding and Investment Strategy Regulations, for the purposes of the determination or revision of the funding and investment strategy for which the actuarial valuation is the actuarial valuation to which the funding and investment strategy relates.”;

(c) in paragraph (6) for “paragraph (4)” substitute “paragraph (4)(b)”;

(d) after paragraph (7) add—

“(8) For the purposes of paragraph (4)(c)(i) to (iii), the estimates are to be determined in accordance with the principles in regulation 3(1) to (4) of the Funding and Investment Strategy Regulations (scheme maturity).

(9) In paragraph (4A), “the actuarial valuation to which the funding and investment strategy relates” has the meaning given by regulation 2(1) of the Funding and Investment Strategy Regulations.

(10) Paragraphs (4)(c), (4A) and (8) apply only in relation to actuarial valuations with an effective date on or after 22nd September 2024.”.

(4) In regulation 8(3) (recovery plan)—

(a) after paragraph (1) insert—

“(1A) For the purposes of Article 205(3A)(4), in determining whether a recovery plan is appropriate having regard to the nature and circumstances of the scheme, the trustees or managers must follow the principle that the period specified for the purposes of Article 205(2)(b) must be as soon as the employer can reasonably afford.”;

(b) in paragraph (2)—

(i) in sub-paragraph (d) for “members, and” substitute “members;”;

(ii) in sub-paragraph (e) for “that person.” substitute “that person, and”;

(iii) after sub-paragraph (e) add—

“(f) the impact of the recovery plan on the sustainable growth of the employer.”;

(c) after paragraph (7) insert—

“(7A) The requirement in paragraph (7)(a) does not apply where the effective date of the actuarial valuation to which the recovery plan relates is on or after 22nd September 2024.

(7B) Paragraphs (1A) and (2)(f) apply only in relation to recovery plans where the effective date of the actuarial valuation to which the recovery plan relates is on or after 22nd September 2024.”.

(5) In Schedule 2 (modifications of the Order and Regulations) in paragraphs 1(1), (4) and (6), 4(4), 5(3), 7 and 9 after “Part IV of the Order” insert “, the Funding and Investment Strategy Regulations”.

Commencement Information

I1 Reg. 19 in operation at 6.4.2024, see reg. 1

(1)

S.R. 2005 No. 568; relevant amending Regulations are S.R. 2006 No. 297

(2)

See the definition of “funding level” in Article 200A(3)(a) of the Pensions (Northern Ireland) Order 2005 as inserted by paragraph 2 of Schedule 11 to the Pension Schemes Act 2021

(3)

Regulation 8 was amended by regulation 5(2) of S.R. 2006 No. 297

(4)

Article 205(3A) was inserted by paragraph 5 of Schedule 11 to the Pension Schemes Act 2021