The Building Societies (Provision of Services) (No. 4) Order 1987
The Order varies Schedule 8 to the Building Societies Act 1986 by amending the definition of pension schemes which building societies are empowered to establish so as to follow the definitions in taxation rather than social security legislation. This follows the Building Societies (Designation of Pension Companies) Order 1987 (S.I. 1987/1871), which empowered building societies to invest in or support companies acting as trustees of pension schemes as defined in taxation legislation. An effect of the variation is that the power to establish personal as well as occupational schemes will apply to Northern Ireland. Societies also have a power under Schedule 8, by means of a subsidiary, to establish and manage unit trust schemes for provision of “money purchase benefit” pensions (ie pensions based on contributions to the scheme rather than average salaries). “Money purchase benefit” is a social security legislation definition, and this survives in relation to the unit trust power and is also extended by this Order to Northern Ireland.