28 Ways of giving effect to protected rights.E+W+S
(1)The rules of the scheme must provide for effect to be given to the protected rights of a member—
(a)in any case where subsection (3) so requires, by the purchase of such an annuity as is mentioned in that subsection, and
F1(aa). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)in any other case, in such of the ways [F2provided for] by the following subsections as the rules may specify,
and they must not provide for any part of a member’s protected rights to be discharged otherwise than in accordance with those subsections.
(1A)[F3Where the scheme is a personal pension scheme which provides for the member to elect to receive payments in accordance with this subsection, and the member so elects, effect shall be given to his protected rights during the interim period by the making of payments under an interim arrangement which—
(a)complies with section 28A, and
(b)satisfies such conditions as may be prescribed;
and in such a case subsections (2) to (4) accordingly apply as regards giving effect to his protected rights as from the end of that period.]
(2)Effect may be given to protected rights—
(a)by the provision by the scheme of a pension which—
(i)complies with the pension requirements (within the meaning of section 29(1)), and
(ii)satisfies such conditions as may be prescribed; or
(b)in such circumstances and subject to such conditions as may be prescribed, by the making of a transfer payment—
(i)in the case of an occupational pension scheme, to another occupational pension scheme [F4, to a personal pension scheme or to an overseas arrangement], and
(ii)in the case of a personal pension scheme, to another personal pension scheme [F5, to an occupational pension scheme or to an overseas arrangement],
where the scheme to which the payment is made satisfies such requirements as may be prescribed.
(3)Subject to subsections (5) and (7), if—
(a)the rules of the scheme do not provide for a pension; or
(b)the member [F6or, where section 28A(2) applies, the member’s [F7widow, widower or surviving civil partner]] so elects,
then, except to the extent that effect is given to protected rights in accordance with subsection [F8(1A)] [F9or (4)], effect shall be given to them by the purchase by the scheme of an annuity which—
(i)complies with the annuity requirements (within the meaning of section 29(3)), and
(ii)satisfies such conditions as may be prescribed.
(4)Effect may be given to protected rights by the provision of a lump sum [F10, subject to such restrictions as may be prescribed,] if—
F11(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)the circumstances are such as may be prescribed; and
[F12(d)the amount of the lump sum is equal to the value on that date of the protected rights to which effect is being given][F13; and
(e)such other conditions as may be prescribed are satisfied.]
F14(4A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F14(4B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)If the member has died without effect being given to protected rights under subsection [F15(1A)] (2), (3) [F16or (4)], effect may be given to them in such manner as may be prescribed.
(6)No transaction is to be taken to give effect to protected rights unless it falls within this section.
F17(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F18(8)In this section and sections 28A, 28B and 29—
“the interim period” means the period beginning with the starting date in relation to the member in question and ending with the termination date;
“the starting date” means the date F19... by reference to which the member elects to begin to receive payments under the interim arrangement;
“the termination date” means the date by reference to which the member (or, where section 28A(2) applies, the member’s [F20widow, widower or surviving civil partner]) elects to terminate the interim arrangement F21... .]
[F22(9)This section is subject to section 32A]
Textual Amendments
F1S. 28(1)(aa) repealed (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(2)(a), Sch. 13 Pt. I; S.I. 2001/4049, art. 2(1)(a)
F2Words in s. 28(1)(b) substituted (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(2)(b); S.I. 2001/4049, art. 2(1)(a)
F3S. 28(1A) substituted (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(3); S.I. 2001/4049, art. 2(1)(a)
F4Words in s. 28(2)(b)(i) substituted (1.1.2001) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(b)(2), Sch. 5 para. 2(2)(a) (with s. 83(6)); S.I. 2000/3166, art. 2(3)(b)(ii)
F5Words in s. 28(2)(b)(ii) substituted (1.1.2001) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(b)(2), Sch. 5 para. 2(2)(b) (with s. 83(6)); S.I. 2000/3166, art. 2(3)(b)(ii)
F6Words in s. 28(3)(b) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 142(4)(a), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2
F7Words in s. 28(3)(b) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(2)(3), Sch. 1 para. 9(a)
F8Words in s. 28(3) substituted (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(4); S.I. 2001/4049, art. 2(1)(a)
F9Words in s. 28(3) substituted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(5), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2
F10Words in s. 28(4) inserted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(3)(a), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2
F11S. 28(4)(a)(b) repealed (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(3)(b), 322(1), Sch. 13 (with s. 313); S.I. 2005/1720, art. 2(13)(15)(a)(b), Sch. Pt. 2
F12S. 28(4)(d) substituted (1.1.2001) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(b)(2), Sch. 5 para. 3(2) (with s. 83(6)); S.I. 2000/3166, art. 2(3)(b)(iii)
F13S. 28(4)(e) and preceding word inserted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(3)(c), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2
F14S. 28(4A)(4B) repealed (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(4), 322(1), Sch. 13 (with s. 313); S.I. 2005/1720, art. 2(13)(15)(a)(b), Sch. Pt. 2
F15Word in s. 28(5) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 142(6), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2
F16Words in s. 28(5) substituted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(5), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2
F17S. 28(7) omitted (6.4.1997) by virtue of Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 34(b), Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. 2
F18S. 28(8) added (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 142(7), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2
F19Words in s. 28(8) repealed (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(6), 322(1), Sch. 13 (with s. 313); S.I. 2005/1720, art. 2(13)(15)(a)(b), Sch. Pt. 2
F20Words in s. 28(8) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(2)(3), Sch. 1 para. 9(c)(i)
F21Words in s. 28(8) omitted (6.4.2006) by virtue of The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(3)
F22S. 28(9) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 146(2), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2
Modifications etc. (not altering text)
C1S. 28 extended (1.10.2000) by The Stakeholder Pension Schemes Regulations 2000 (S.I. 2000/1403), regs. 1(1), 3(7)
Commencement Information
I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2