Citation and commencement

1.  This Order may be cited as the Social Security (Reciprocal Agreements) Order (Northern Ireland) 2016 and shall come into operation on 6th April 2016.

Modification of legislation

2.  The Social Security Administration (Northern Ireland) Act 1992, the Social Security Contributions and Benefits (Northern Ireland) Act 1992, Part 1 of the Pensions Act (Northern Ireland) 2015 and regulations made under those Acts or that Part, shall be modified to such extent as may be required to give effect to-

(a)the alterations set out in Schedule 1 which are proposed to the agreements set out in the Schedules to the Orders in Council and Orders made by the Secretary of State specified in Schedule 2;

(b)the alterations set out in Schedule 3 which are proposed to the agreements set out in the Schedules to the Orders referred to in Schedule 3.

Article 2(a)

SCHEDULE 1PROPOSED ALTERATIONS TO EXISTING AGREEMENTS

1.  Subject to paragraphs 3 and 4 of this Schedule, where in the agreements set out in the Schedules to the Orders in Council and Orders made by the Secretary of State specified in Schedule 2 there are references to a retirement pension, an old age pension, a pension for old age, a basic retirement pension or a basic old age pension (or any equivalent terms) under the legislation of the United Kingdom, such references shall be altered to include a reference to a state pension under Part 1 (state pension) of the Pensions Act (Northern Ireland) 2015.

2.  Where in the agreements set out in the Schedules to the Orders in Council and Orders made by the Secretary of State specified in Schedule 2 to this Order, there are references to-

(a)the legislation to which the agreements apply, such references shall be altered to include a reference to Part 1 of the Pensions Act (Northern Ireland) 2015;

(b)any increase in the rate of a United Kingdom pension payable while in the territory of the other Party, such references shall be altered to include any increase in the rate of state pension under Part 1 of the Pensions Act (Northern Ireland) 2015.

3.  Where in the agreements set out in the Schedules to the Orders in Council and Orders made by the Secretary of State specified in Schedule 2 to this Order there are references to a person-

(a)who is entitled to an old age pension or basic retirement pension (or any equivalent terms) under the legislation of the United Kingdom otherwise than by virtue of the provisions of those agreements providing for the determination of entitlement to such pension, those references shall be altered to include a reference to a state pension under section 2 (entitlement to state pension at full or reduced rate) or 4 (entitlement to state pension at transitional rate) of the Pensions Act (Northern Ireland) 2015;

(b)who is entitled to a category B retirement pension under the legislation of the United Kingdom being also entitled to have any category A retirement pension entitlement calculated in accordance with any provision in the agreements providing for the determination of such entitlement-

(i)those references to a category B retirement pension shall be altered to include a reference to a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 other than a state pension under section 2 or 4 of the Pensions Act (Northern Ireland) 2015; and

(ii)those references to a category A retirement pension shall be altered to include a reference to a state pension under section 2 or 4 of the Pensions Act (Northern Ireland) 2015.

4.  Where in the agreements set out in the Schedules to the Orders in Council and Orders made by the Secretary of State specified in Schedule 2 to this Order, there are provisions for the determination of entitlement to an old age pension or basic retirement pension (or any equivalent terms), those provisions shall be altered so that they apply for the purposes of entitlement to a state pension under section 2 or 4 of the Pensions Act (Northern Ireland) 2015 in the following way-

(a)the United Kingdom shall take account of contribution periods or equivalent periods completed by a person under the legislation of the other Party or Parties only for the purpose of determining whether that person has the minimum number of qualifying years for entitlement to a state pension under section 2 or 4 of the Pensions Act (Northern Ireland) 2015;

(b)the United Kingdom shall pay to a person an amount of state pension under section 2 or 4 of the Pensions Act (Northern Ireland) 2015 based only on the contributions paid, credited or treated as paid under its legislation.

Article 2(a)

SCHEDULE 2SPECIFIED ORDERS IN COUNCIL AND ORDERS OF THE SECRETARY OF STATE

Article 2(b)

SCHEDULE 3PROPOSED ALTERATIONS TO EXISTING AGREEMENTS WITH CANADA AND NEW ZEALAND

Canada

1.  Where in the agreement set out in Schedule 1 to the Social Security (Canada) Order (Northern Ireland) 1995(4), there-

(a)are references to a retirement pension, such references shall be altered to include a reference to a state pension under Part 1 (state pension) of the Pensions Act (Northern Ireland) 2015;

(b)is a reference to the legislation to which the agreement applies, such reference shall be altered to include a reference to Part 1 of the Pensions Act (Northern Ireland) 2015.

New Zealand

2.  In the agreement set out in the Schedule to the Social Security (New Zealand) Order (Northern Ireland) 1983(5)-

(a)in Article 9(2) (United Kingdom retirement pension by virtue of residence in New Zealand), the reference to a basic retirement pension at the full standard rate under the legislation of the United Kingdom shall be altered to include a reference to a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015 payable at the full rate specified in regulations under section 3 (full and reduced rates of state pension) of that Act;

(b)in Article 9(3) to (6), the references to a basic retirement pension under the legislation of the United Kingdom shall be altered to include a reference to a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015;

(c)where there is a reference to the legislation to which the agreement applies, such reference shall be altered to include a reference to Part 1 of the Pensions Act (Northern Ireland) 2015.

Pensionable Age

3.  The agreements referred to in paragraphs 1 and 2 shall be altered so that any references to a specific age in connection with a claim for or entitlement to a pension under the legislation of the United Kingdom shall be treated as references to pensionable age, which has the meaning given by section 121(1) (interpretation of Parts I to VI and supplementary provisions) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992(6).

EXPLANATORY NOTE

(This note is not part of the Order)

Part 1 of the Pensions Act (Northern Ireland) 2015 creates a new benefit called state pension to which people reaching pensionable age on or after 6th April 2016 may be entitled.

This Order provides that Part 1 of the Pensions Act (Northern Ireland) 2015, regulations made under it and other social security legislation, are to be modified to give effect to the alterations in-

Schedule 1, which are proposed to the agreements in the Schedules to the Orders in Council and Orders listed in Schedule 2, and

Schedule 3, which are proposed to the agreements in the Schedules to the Orders referred to in Schedule 3.

These Orders in Council and Orders give effect to agreements made between the Government of the United Kingdom and governments of other countries providing for reciprocity in certain social security matters. These agreements are now altered because of a change in the law of Northern Ireland and will now include the state pension under Part 1 of the Pensions Act (Northern Ireland) 2015.

An impact assessment has not been produced for this Order as it has no impact on business or civil society organisations. A regulatory impact assessment for the changes made by the Pensions Act (Northern Ireland) 2015 is available from the Communications Team, Department for Social Development, 4th Floor, Lighthouse Building, Gasworks Business Park, Belfast BT7 2JB or

https://www.dsdni.gov.uk/publications/pensions-bill-draft-regulatory-impact-assessment-june-2015