Schedule 2: Additional Pension Consolidation
Schedule 2 inserts a new Schedule 4C into the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
Paragraph 1 of the inserted Schedule 4C specifies that the consolidation date will be a fixed date, the first day of the Flat Rate Introduction Year, regardless of the date when the person reaches state pension age.
Paragraphs 2 and 3 of the inserted Schedule 4C stipulate that a person’s consolidated amount must be calculated before they reach state pension age.
Paragraph 4 of the inserted Schedule 4C ensures that the existing appeals process under Chapter 2 of Part 2 of the Social Security (Northern Ireland) Order 1998 is applied to the consolidated amount.
Paragraph 5 of the inserted Schedule 4C defines the consolidated amount as the sum of the person’s Graduated Retirement Benefit and Additional Pension accruals.
Paragraphs 6 to 8 of the inserted Schedule 4C specify that Graduated Retirement Benefit and Additional Pension will be calculated using legislation in force at the time consolidation takes place.
Paragraph 9 of the inserted Schedule 4C provides that the consolidated amount, including Graduated Retirement Benefit, will be revalued annually by earnings.