Part IV Protection for Early Leavers

C4C6C2C1C8C3C7Chapter I Preservation of Benefit Under Occupational Schemes

Annotations:
Modifications etc. (not altering text)
C7

Pt. IV Ch. I: power to modify conferred (16.3.2022 for specified purposes, 6.4.2022 in so far as not already in force) by Pension Schemes Act (Northern Ireland) 2021 (c. 6), s. 44(2), Sch. 1 para. 1(6)(a); S.R. 2022/110, art. 2(a)(b)

C569 Form of short service benefit and its alternatives.

1

Subject to subsection (2) and section 77, a member’s short service benefit must be—

a

payable directly out of the resources of the scheme; or

b

assured to him by such means as may be prescribed.

2

Subject to subsections (3) to (5), a scheme may, instead of providing short service benefit, provide—

a

for the member’s accrued rights (including any transfer credits allowed under the scheme)—

i

to be transferred to another occupational pension scheme with a view to acquiring transfer credits for the member under the other scheme, or

ii

to be transferred to a personal pension scheme F1. . . with a view to acquiring rights for the member under the rules of the scheme F2. . .; or

b

for such alternatives to short service benefit as may be prescribed.

3

The option conferred by subsection (2)(a) is additional to any obligation imposed by F3Chapter 1 of Part 4ZA .

4

The alternatives specified in subsection (2)(a) and (b) may only be by way of complete or partial substitute for short service benefit—

a

if the member consents; or

b

in such other cases as may be prescribed.

5

An alternative prescribed under subsection (2)(b) may only include payment by way of return of contributions—

a

if they relate to a period of service before 6th April 1975; or

b

if there has been such a payment relating to a period of service before that date and the contributions relate to a period of service of less than 5 years after that date.