97NA Prohibition on excluding transfers of some rights without others etc
Except as mentioned in sections 92(4) and 97G(4), a pension scheme may not contain rules that would have the effect of—
(a) preventing a member from exercising a right under this Chapter in relation to a category of benefits without also exercising a right under this Chapter or otherwise to require a transfer payment to be made in respect of another category of benefits, or
(b) preventing a member who exercises a right under this Chapter in relation to a category of benefits from accruing rights to benefits in another category.
A notice under section 97F(1) or 97K(1) shall be taken to have been given if it is delivered to the trustees or managers personally or sent by post in a registered letter or by recorded delivery service.
(1) In this Chapter—
“category”, in relation to benefits, has the meaning given by section 97F(6B);
“eligible member”, in relation to a qualifying scheme, means a member who has pension credit rights under the scheme;
“flexible benefit” has the meaning given by section 74 of the Pension Schemes Act 2015;
“normal benefit age”, in relation to an eligible member of a qualifying scheme, means the earliest age at which the member is entitled to receive a pension by virtue of his pension credit rights under the scheme (disregarding any scheme rule making special provision as to early payment of pension on grounds of ill-health or otherwise);
...
“pension credit rights”, in relation to a qualifying scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit;
“qualifying scheme” means a funded occupational pension scheme and a personal pension scheme;
“transfer notice” has the meaning given by section 97F(7).
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) In this Chapter, references to the relevant statement under section 97H, in relation to a transfer notice in relation to benefits other than money purchase benefits, are to the statement under that section on which the giving of the notice depended.
(4) For the purposes of this section, an occupational pension scheme is funded if it meets its liabilities out of a fund accumulated for the purpose during the life of the scheme.
105 Annual increase of guaranteed minimum pensions.
(1) Whenever the Secretary of State makes an order under section 109 of the Pension Schemes Act 1993 specifying a percentage by which there is to be an increase of the rate of that part of guaranteed minimum pensions which is attributable to earnings factors for the tax years in the relevant period as defined in that section for—
(a) earners who have attained pensionable age; and
(b) widows, widowers and surviving civil partners,
the Department may make a corresponding order for Northern Ireland.
(2) Where the benefits mentioned in section 42(1) to (7) are not increased on the day on which an order under this section takes effect, the order shall be treated for the purposes of that section as not taking effect until the day on which those benefits are next increased.
106 Requirement as to resources for annual increase of guaranteed minimum pensions.
(1) Except as permitted by Article 53 of the Pensions (Northern Ireland) Order 1995, the trustees or managers of a scheme may not make an increase in a person’s pension which is required by virtue of section 105 out of money which would otherwise fall to be used for the payment of benefits under the scheme to or in respect of that person unless—
(a) the payment is to an earner in respect of the tax year in which he attains pensionable age and the increase is the one required to be made in the next tax year; or
(b) the payment is to a person as the widow, widower or surviving civil partner of an earner who died before attaining pensionable age and is in respect of the tax year in which the person became a widow, widower or surviving civil partner, and the increase is the one required to be made in the next tax year.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
107A Monitoring of employers’ payments to personal pension schemes.
(1) This section applies where—
(a) an employee is a member of a personal pension scheme; and
(b) direct payment arrangements exist between the employee and his employer.
(2) In this section “direct payment arrangements” means arrangements under which contributions fall to be paid by or on behalf of the employer towards the scheme—
(a) on the employer’s own account (but in respect of the employee); or
(b) on behalf of the employee out of deductions from the employee’s earnings.
(3) The trustees or managers of the scheme must monitor the payment of contributions by or on behalf of the employer under the direct payment arrangements.
(4) The trustees or managers may request the employer to provide them, (or arrange for them to be provided) with the payment information specified in the request.
(5) For the purposes of subsection (4) “payment information” is information required by the trustees or managers to enable them to discharge the duty imposed by subsection (3).
(6) The employer must comply with a request under subsection (4) within a reasonable period.
(7) Where, as a result of the employer's failure to so comply, the trustees or managers are unable to discharge the duty imposed by subsection (3), they must give notice to that effect to the Regulatory Authority within a reasonable period.
(7A) Where—
(a) a contribution payable under the direct payment arrangements has not been paid on or before its due date, and
(b) the trustees or managers have reasonable cause to believe that the failure to pay the contribution is likely to be of material significance in the exercise by the Regulatory Authority of any of their functions,
they must give notice to that effect to the Regulatory Authority and the employee within a reasonable period after the due date.
(8) If—
(a) the employer fails to take all such steps as are reasonable to secure compliance with subsection (6) and as a result the trustees or managers of the scheme are unable to discharge the duty imposed by subsection (3) , or
(b) a contribution payable under the direct payment arrangements is not paid to the trustees or managers of the scheme on or before its due date,
Article 10 of the Pensions (Northern Ireland) Order 1995 (power of the Regulatory Authority to impose civil penalties) applies to the employer.
(9) If subsection (7) or (7A) is not complied with, Article 10 of the Pensions (Northern Ireland) Order 1995 applies to any trustee or manager of the scheme who has failed to take all such steps as are reasonable to secure compliance.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) A person shall not be required by virtue of subsection (8)(b) to pay a penalty under Article 10 of the Pensions (Northern Ireland) Order 1995 in respect of a failure if in respect of that failure he has been—
(a) required to pay a penalty under that Article by virtue of Article 5(7) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (failures in respect of stakeholder pensions), or
(b) convicted of an offence under subsection (12).
(12) A person is guilty of an offence if he is knowingly concerned in the fraudulent evasion of the direct payment arrangements so far as they are arrangements for the payment by him or any other person of any such contribution towards the scheme as is mentioned in subsection (2)(b).
(13) A person guilty of an offence under subsection (12) is liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum; and
(b) on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.
(14) No prosecution shall be brought against the Crown for an offence under subsection (12), but that subsection applies to persons in the public service of the Crown as to other persons.
(15) In this section “due date”, in relation to a contribution payable under the direct payment arrangements, means—
(a) if the contribution falls to be paid on the employer’s own account, the latest day under the arrangements for paying it;
(b) if the contribution falls to be paid on behalf of the employee, the last day of a prescribed period.
(16) Regulations may provide for this section to apply with such modifications as may be prescribed in a case where—
(a) the direct payment arrangements give effect to a requirement arising under paragraph (5) of Article 5 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (deduction and payment of employee’s contributions to stakeholder scheme), and
(b) in accordance with regulations under that paragraph, that requirement is for the employer to pay contributions to a person prescribed by such regulations (instead of to the trustees or managers of the scheme).
(17) Nothing in this section shall be taken as varying the provisions of the direct payment arrangements or as affecting their enforceability.
(18) In this section, “employee” includes a jobholder within the meaning of section 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 and “employer” is to be read accordingly.
109 Disclosure of information about schemes to members, etc.
(1) The Department may by regulations specify requirements to be complied with in the case of an occupational pension scheme or a personal pension scheme with respect to keeping the persons mentioned in subsection (2) informed—
(a) of its constitution;
(b) of its administration and finances;
(c) of the rights and obligations that arise or may arise under it;
(ca) of the pensions and other benefits an entitlement to which would be likely to accrue to the member, or be capable of being secured by him, in respect of the rights that may arise under it; and
(d) of any other matters that appear to the Department to be relevant to occupational pension schemes or personal pension schemes in general or to schemes of a description to which the scheme in question belongs.
(2) The persons referred to in subsection (1) are—
(a) members and, in the case of an occupational pension scheme, prospective members of the scheme;
(b) spouses or civil partners of members and, in the case of an occupational pension scheme, of prospective members;
(c) persons within the application of the scheme and qualifying or prospectively qualifying for its benefits;
(d) in the case of an occupational pension scheme, independent trade unions recognised to any extent for the purposes of collective bargaining in relation to members and to prospective members of the scheme.
(e) persons of prescribed descriptions.
(2A) In complying with requirements specified in the regulations, a person must have regard to any guidance prepared from time to time by the Department.
(3) Without prejudice to the generality of section 177(2), the regulations may distinguish between—
(a) cases in which information is to be given as of course; and
(b) cases in which information need only be given on request or in other prescribed circumstances.
(3A) The regulations may provide for the information that must be given to be determined, in whole or part, by reference to guidance which is prepared and from time to time revised by a prescribed body.
(3B) The regulations may, in relation to cases where a scheme is being wound up, contain—
(a) provision conferring power on the Regulatory Authority, at times before the period expires, to extend any period specified in the regulations as the period within which a requirement imposed by the regulations must be complied with; and
(b) provision as to the contents of any application for the exercise of such a power and as to the form and manner in which, and the time within which, any such application must be made.
(4) The regulations shall make provision for referring to an industrial tribunal any question whether an organisation is such a trade union as is mentioned in subsection (2)(d).
(5) The Department must make regulations under subsection (1) requiring information about some or all of the transaction costs of a relevant scheme to be given to some or all of the persons mentioned in subsection (2).
(6) The Department must by regulations make provision requiring the publication of information about—
(a) some or all of the transaction costs of a relevant scheme, and
(b) some or all of the other administration charges imposed on members of a relevant scheme.
(7) Regulations under subsection (6) may require other relevant information to be published along with information about transaction costs or other administration charges in relation to a scheme.
(8) “Other relevant information” means other information which would or may assist in making comparisons between those costs or charges and costs or charges in relation to other schemes.
(9) In this section—
“administration charge” has the meaning given by paragraph 1(5) of Schedule 18 to the Pensions Act (Northern Ireland) 2015;
“relevant scheme” means a money purchase scheme that is an occupational pension scheme.
109A Disclosure of information about transfers etc.
Regulations may provide that, where—
(a) a payment is made out of an occupational pension scheme to the trustees or managers of another occupational pension scheme, and
(b) transfer credits are allowed to a member of that other scheme in respect of the payment,
the trustees or managers of the first scheme must, in prescribed circumstances and in the prescribed manner, provide to the trustees or managers of the other scheme prescribed information relating to the payment.
109B Occupational pension schemes: requirements to refer members to guidance etc
(1) The Department must make regulations requiring the trustees or managers of an occupational pension scheme to take the steps mentioned in subsections (2) and (3) in relation to an application from a relevant beneficiary—
(a) to transfer any rights accrued under the scheme, or
(b) to start receiving benefits provided by the scheme.
(2) As part of the application process, the trustees or managers must ensure that—
(a) the beneficiary is referred to appropriate pensions guidance, and
(b) the beneficiary is provided with an explanation of the nature and purpose of such guidance.
(3) Before proceeding with the application, the trustees or managers must ensure that the beneficiary has either received appropriate pensions guidance or has opted out of receiving such guidance.
(4) The regulations may—
(a) specify what constitutes appropriate pensions guidance;
(b) make further provision about how the trustees or managers must comply with the duties in subsections (2) and (3) (such as provision about methods of communication and time limits);
(c) make further provision about how, and to whom, a beneficiary may indicate that they have received or opted out of receiving appropriate pensions guidance for the purposes of subsection (3);
(d) specify what the duties of the trustees or managers are in the situation where a beneficiary does not respond to a communication that is made for the purposes of complying with the duty in subsection (3);
(e) provide for exceptions to the duties in subsections (2) and (3) in specified cases;
(f) provide for the Department or another prescribed person to issue guidance for the purposes of this section, to which trustees or managers must have regard in complying with their duties under the regulations.
(5) In determining what provision to include in the regulations, the Department must have regard to any rules that are for the time being in force under section 137FB(1A) of the Financial Services and Markets Act 2000.
(6) In this section—
“relevant beneficiary”, in relation to a pension scheme, means—
a member of the scheme, or
another person of a prescribed description,
who has a right or entitlement to flexible benefits under the scheme;
“flexible benefits” has the meaning given by section 74 of the Pension Schemes Act 2015;
“pensions guidance” means information or guidance provided by any person in pursuance of the requirements mentioned in section 4 of the Financial Guidance and Claims Act 2018 (information etc about flexible benefits under pension schemes).
111 Powers as respects failure to comply with information requirements.
(1) If the trustees or managers of an occupational pension scheme or a personal pension scheme, having made default in complying with regulations under section 109 or 109B . . ., fail to make good the default within 14 days after the service on them of a notice requiring them to do so, an order may be made under this subsection.
(2) The Department may by regulations specify forms for notices under subsection (1).
(3) An order under subsection (1) is an order directing the trustees or managers to make good the default within such time as may be specified in the order.
(4) The power to make such an order shall be exercisable by a county court on the application of any person mentioned in subsection (5).
(5) The persons referred to in subsection (4) are—
(a) the Department;
(b) any person authorised by the Department to make an application under this section; and
(c) any aggrieved person.
(6) An order under this section may provide that all costs of and incidental to the application shall be borne personally by any of the trustees or managers of the scheme.
113 Regulations as to form and content of advertisements.
Regulations may be made relating to the form and content of advertisements and such other material as may be prescribed issued by or on behalf of the trustees or managers of a personal or occupational pension scheme for the purposes of the scheme.
(1) For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in Northern Ireland—
(a) he has been adjudged bankrupt or has made a composition or arrangement with his creditors;
(b) he has died and his estate falls to be administered in accordance with an order under Article 365 of the Insolvency (Northern Ireland) Order 1989; ...
(c) where the employer is a company—
(i) a winding-up order ... is made or a resolution for voluntary winding up is passed with respect to it or the company enters administration,
(ii) a receiver or manager of its undertaking is duly appointed,
(iii) possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge, or
(iv) a voluntary arrangement proposed for the purpose of Part II of the Insolvency (Northern Ireland) Order 1989 is approved under that Part ; or
(d) subsection (1ZA) or (1A) is satisfied.
(1ZA) This subsection is satisfied in the case of an employer if—
(a) the employer is a legal person,
(b) a request has been made for the first opening of collective proceedings—
(i) based on the insolvency of the employer, as provided for under the law of any part of the United Kingdom, and
(ii) involving the partial or total divestment of the employer's assets and the appointment of a liquidator or a person performing a similar task, and
(c) any of the following has decided to open the proceedings—
(i) a court,
(ii) a meeting of creditors, or
(iii) the creditors by a decision procedure.
(1A) This subsection is satisfied if—
(a) a request has been made for the first opening of collective proceedings—
(i) based on the insolvency of the employer, as provided for under the laws, regulations and administrative provisions of a member State; and
(ii) involving the partial or total divestment of the employer’s assets and the appointment of a liquidator or a person performing a similar task; and
(b) the competent authority has—
(i) decided to open the proceedings; or
(ii) established that the employer’s undertaking or business has been definitively closed down and the available assets of the employer are insufficient to warrant the opening of the proceedings.
(1B) For the purposes of this section—
(a) “liquidator or person performing a similar task” includes the official receiver or an administrator, trustee in bankruptcy, judicial factor, supervisor of a voluntary arrangement, or person performing a similar task;
(b) “competent authority” includes—
(i) a court,
(ii) a meeting of creditors,
(iii) a creditors’ committee,
(iv) the creditors by a decision procedure, and
(v) an authority of a member State empowered to open insolvency proceedings, to confirm the opening of such proceedings or to take decisions in the course of such proceedings.
(1C) An application under section 120 may only be made in respect of a worker who worked or habitually worked in Northern Ireland in that employment to which the application relates.
(2) In this Chapter—
“employer”, “employment”, “worker” and “worker's contract” and other expressions which are defined in the Employment Rights (Northern Ireland) Order 1996 have the same meaning as in that Order (see further subsections (2A) and (2B));
“holiday pay” means—
pay in respect of a holiday actually taken; or
any accrued holiday pay which under the worker's contract would in the ordinary course have become payable to him in respect of the period of a holiday if his employment with the employer had continued until he became entitled to a holiday;
...
(2A) Section 71 of the Pensions (No. 2) Act (Northern Ireland) 2008 (agency workers) applies for the purposes of this Chapter as it applies for the purposes of Part 1 of that Act.
(2B) References in this Chapter to a worker include references to an individual to whom Part 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 applies as if the individual were a worker because of regulations made under section 77 of that Act; and related expressions are to be read accordingly.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Any reference in this Chapter to the resources of a scheme is a reference to the funds out of which the benefits provided by the scheme are from time to time payable.
120 Duty of Department to pay unpaid contributions to schemes.
(1) If, on an application made to it in writing by the persons competent to act in respect of an occupational pension scheme or a personal pension scheme, the Department is satisfied—
(a) that an employer has become insolvent; and
(b) that at the time he did so there remained unpaid relevant contributions falling to be paid by him to the scheme,
then, subject to the provisions of this section and section 121, the Department shall pay into the resources of the scheme the sum which in its opinion is payable in respect of the unpaid relevant contributions.
(2) In this section and section 121 “relevant contributions” means contributions falling to be paid by an employer to an occupational pension scheme or a personal pension scheme, either on his own account or on behalf of a worker; and for the purposes of this section a contribution shall not be treated as falling to be paid on behalf of a worker unless a sum equal to that amount has been deducted from the pay of the worker by way of a contribution from him.
(3) Subject to subsection (3A),The sum payable under this section in respect of unpaid contributions of an employer on his own account to an occupational pension scheme or a personal pension scheme shall be the least of the following amounts—
(a) the balance of relevant contributions remaining unpaid on the date when he became insolvent and payable by the employer on his own account to the scheme in respect of the 12 months immediately preceding that date;
(b) the amount certified by an actuary to be necessary for the purpose of meeting the liability of the scheme on dissolution to pay the benefits provided by the scheme to or in respect of the workers of the employer;
(c) an amount equal to 10 per cent. of the total amount of remuneration paid or payable to those workers in respect of the 12 months immediately preceding the date on which the employer became insolvent.
(3A) Where the scheme in question is a money purchase scheme, the sum payable under this section by virtue of subsection (3) shall be the lesser of the amounts mentioned in paragraphs (a) and (c) of that subsection.
(4) For the purposes of subsection (3)(c), “remuneration” includes holiday pay, statutory sick pay, statutory maternity pay under Part VI of the Social Security (Northern Ireland) Order 1986 or Part XII of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 and any such payment as is referred to in Article 229(2) of the Employment Rights (Northern Ireland) Order 1996 (guarantee payments, etc.).
(5) Any sum payable under this section in respect of unpaid contributions on behalf of a worker shall not exceed the amount deducted from the pay of the worker in respect of the worker's contributions to the scheme during the 12 months immediately preceding the date on which the employer became insolvent.
(6) In this section “on his own account”, in relation to an employer, means on his own account but to fund benefits for, or in respect of, one or more workers.
121 Certification of amounts payable under s. 120 by insolvency officers.
(1) This section applies where one of the officers mentioned in subsection (2) (“the relevant officer”) is acting or has been or is required to be appointed in connection with an employer’s insolvency.
(2) The officers referred to in subsection (1) are—
(a) the official receiver; or
(b) any such person as is referred to in paragraph (1) or (2) of Article 3 of the Insolvency (Northern Ireland) Order 1989 (insolvency practitioners), as read with paragraphs (3) and (4) of that Article.
(3) Subject to subsection (5), where this section applies the Department shall not make any payment under section 120 in respect of unpaid relevant contributions until it has received a statement from the relevant officer of the amount of relevant contributions which appear to have been unpaid on the date on which the employer became insolvent and to remain unpaid; and the relevant officer shall on request by the Department provide it as soon as reasonably practicable with such a statement.
(4) Subject to subsection (5), an amount shall be taken to be payable, paid or deducted as mentioned in subsection (3)(a) or (c) or (5) of section 120 only if it is so certified by the relevant officer.
(5) If the Department is satisfied—
(a) that it does not require a statement under subsection (3) in order to determine the amount of relevant contributions that was unpaid on the date on which the employer became insolvent and remains unpaid, or
(b) that it does not require a certificate under subsection (4) in order to determine the amounts payable, paid or deducted as mentioned in subsection (3)(a) or (c) or (5) of section 120,
it may make a payment under that section in respect of the contributions in question without having received such a statement or, as the case may be, such a certificate.
(1) Any persons who are competent to act in respect of an occupational pension scheme or a personal pension scheme and who have applied for a payment to be made under section 120 into the resources of the scheme may present a complaint to an industrial tribunal that—
(a) the Department has failed to make any such payment; or
(b) any such payment made by the Department is less than the amount which should have been paid.
(2) Such a complaint must be presented within the period of three months beginning with the date on which the decision of the Department on that application was communicated to the persons presenting it or, if that is not reasonably practicable, within such further period as is reasonable.
(3) Where an industrial tribunal finds that the Department ought to make a payment under section 120, it shall make a declaration to that effect and shall also declare the amount of any such payment which it finds that the Department ought to make.
123 Transfer to Department of rights and remedies.
(1) Where in pursuance of section 120 the Department makes any payment into the resources of an occupational pension scheme or a personal pension scheme in respect of any contributions to the scheme, any rights and remedies in respect of those contributions belonging to the persons competent to act in respect of the scheme shall, on the making of the payment, become rights and remedies of the Department.
(2) Where—
(a) the Department makes any such payment as is mentioned in subsection (1); and
(b) the sum (or any part of the sum) falling to be paid by the employer on account of the contributions in respect of which the payment is made constitutes a preferential debt within the meaning of the Insolvency (Northern Ireland) Order 1989 for the purposes of any provision of that Order (including any such provision as applied by an order made under that Order or any provision of the Companies Acts (as defined in section 2(1) of the Companies Act 2006)) ...,
then, without prejudice to the generality of subsection (1), there shall be included among the rights and remedies which become rights and remedies of the Department in accordance with that subsection any right arising under any such provision by reason of the status of that sum (or that part of it) as a preferential or preferred debt.
(3) In computing for the purposes of any provision referred to in subsection (2)(b) the aggregate amount payable in priority to other creditors of the employer in respect of—
(a) any claim of the Department to be so paid by virtue of subsection (2); and
(b) any claim by the persons competent to act in respect of the scheme,
any claim falling within paragraph (a) shall be treated as if it were a claim of those persons; but the Department shall be entitled, as against those persons, to be so paid in respect of any such claim of the Department (up to the full amount of the claim) before any payment is made to them in respect of any claim falling within paragraph (b).
Schedule 3 shall have effect for affording priority in cases of insolvency to liabilities in respect of contributions to occupational pension schemes and in respect of state scheme premiums.
(1) Subject to subsection (2), the provisions of Chapters 2 and 3 of Part 4, Chapters 1 and 2 of Part 4ZA Chapters I and II of Part IVA,, . . . section 106(1) . . . and any regulations made . . . under any of those Chapters or section 109 . . . override any provision of a scheme to which they apply to the extent that it conflicts with them.
(2) Chapter II of Part IV (as it applies to occupational pension schemes), and Chapter III of that Part do not override a protected provision of a scheme ....
(3) In subsection (2) “protected provision” means—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) any provision of a scheme which is included in it for the purpose of effecting a transfer of rights or liabilities authorised by regulations under section 16(1);
(d) any provision of a scheme to the extent that it deals with commutation, suspension or forfeiture of the whole or part of a pension; and
(e) any provision of a scheme whereby, as respects so much of a widow's, widower’s or surviving civil partner's pension as exceeds the guaranteed minimum pension—
(i) no pension or a pension at a reduced rate is payable if the earner and the widow, widower or surviving civil partner married or, as the case may be, formed a civil partnership not more than six months before the earner’s death;
(ii) the whole or any part of the pension is not paid to the widow, widower or surviving civil partner, but instead comparable benefits are provided for one or more dependants of the deceased earner; or
(iii) no pension, or a pension at a reduced rate, is payable to the widow, widower or surviving civil partner (or, where a provision such as is mentioned in sub-paragraph (ii) operates, to another dependant of the deceased earner) who was more than ten years younger than the deceased earner.
(4) For the purposes of the application of Chapter II of Part IV to schemes which are not contracted-out, subsection (3) shall have effect with the omission—
(a) from paragraph (c), of the words from “authorised” to the end; and
(b) from paragraph (e), of the words from “as respects” to “guaranteed minimum pension”.
It is hereby declared that—
(a) nothing in Part III precludes an occupational pension scheme from providing benefits that are more favourable than those required for contracting-out purposes and, in particular, nothing in section 12(3) is to be taken as preventing the scheme from providing increases above the alternative minima there mentioned; and
(b) nothing in the provisions of Chapter 2 of Part 4 or Chapter 1 or 2 of Part 4ZA precludes a scheme from being framed or managed more favourably to beneficiaries than is called for by those provisions.
127 Relationship of preservation requirements and scheme rules.
It is hereby declared that nothing in Chapter I of Part IV—
(a) applies with direct effect to any scheme, or to the rights or liabilities of any person in, under or by virtue of a scheme; or
(b) precludes a scheme from being so framed as to provide benefits on any ampler scale, or (subject to any express provision made in that Chapter) payable at any earlier time or otherwise more favourable to beneficiaries, than is called for by the preservation requirements.
128 Duty to bring schemes into conformity with indirectly-applying requirements.
Where the rules of an occupational pension scheme to which the preservation requirements, . . . ... apply do not comply with those requirements it shall be the responsibility of—
(a) the trustees and managers of the scheme; or
(b) in the case of a public service pension scheme, the Minister of the Crown, government department or other person or body concerned with its administration,
to take such steps as are open to them for bringing the rules of the scheme into conformity with those requirements.