Pensions: key differences in Scotland and Northern Ireland
Updating authors Ian Holloway, consultant editor (Scotland): Gillian MacLellan, consultant editor (Northern Ireland): Gareth Walls
Future developments
Scotland
There are no future developments specific to Scotland.
Northern Ireland
Occupational pensions: On 17 July 2024, it was announced in the King's Speech that a Pensions Schemes Bill will make various changes to occupational pension schemes and their administration in Great Britain (see Workplace pensions for further details). There is no corresponding legislation in Northern Ireland. However, to maintain a UK-wide operation of the pension system, although occupational pensions are a devolved matter for Northern Ireland, it is expected that they will follow the same approach as Great Britain.
On 14 November 2024, the Government launched a consultation Pensions Investment Review: Unlocking the UK pensions market for growth (see Workplace pensions for further details). While the outcomes, including those for auto-enrolment pension schemes, will apply in Great Britain, it is expected that Northern Ireland will legislate similarly so UK-wide employers have the same duties imposed.
Pensions auto-enrolment review: In Great Britain, the Pensions (Extension of Automatic Enrolment) Act 2023 will make changes to the auto-enrolment/re-enrolment rules (see Pensions auto-enrolment for more information). However, s.87 of the Northern Ireland Act 1998 imposes a statutory duty on the DWP Secretary of State and Northern Ireland Minister to consult with each other with a view to securing a single system of legislation for pensions in the United Kingdom. The Pensions (Extension of Automatic Enrolment) Bill (Northern Ireland) 2024 from the Department for Communities will make mirroring changes in Northern Ireland and require them to make regulations to bring the provisions into force.
Scotland
The law relating to pensions that applies in England and Wales extends to Scotland.
The HMRC Pension Tax Manual (PTM044220) confirms the arrangements for pension contributions tax relief under relief at source arrangements.
Northern Ireland
Pensions law is devolved to Northern Ireland but generally mirrors that for the rest of the UK.
Occupational pensions and employment law
The Equality Act 2010 does not extend to Northern Ireland. Protection against discrimination in the provision of occupational pension schemes is largely covered by Northern Ireland's own discrimination legislation.
Pensions auto-enrolment
The provisions relating to pensions auto-enrolment in Northern Ireland largely mirror those for the rest of the UK. The relevant primary legislation is the Pensions (No.2) Act (Northern Ireland) 2008 and the Pensions Act (Northern Ireland) 2012. Secondary legislation supporting auto-enrolment is the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations (Northern Ireland) 2010 (SR 2010/122), as amended by the Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations (Northern Ireland) (NISR 2012/237) and the Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment No.2) Regulations (Northern Ireland) (NISR 2012/238).
State pension
Legislation relating to the state pension in Northern Ireland largely mirrors that for the rest of the UK. The Pensions Act (Northern Ireland) 2015 introduced the single-tier state pension (new state pension).
Workplace pensions
Workplace (including stakeholder and personal) pensions in Northern Ireland generally operate in line with corresponding provisions for the rest of the UK.
Key references
Legislation
Pensions (No.2) Act (Northern Ireland) 2008
Pensions Act (Northern Ireland) 2012
Pensions Act (Northern Ireland) 2015
Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (SR 1996/493)
Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations (Northern Ireland) 2010 (NISR 2010/122)
The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment No.2) Regulations (Northern Ireland) 2012 (NISR 2012/238)State Pension Regulations (Northern Ireland) 2015 (SR 2015/315)
