Finance Act 2004 (c. 12)

Part 4 U.K. Pension schemes etc

Modifications etc. (not altering text)

C1 Pt. 4 modified (N.I.) (1.4.2006) by The Firemens Pension Scheme Order (Northern Ireland) 2006 (S.R. 2006/210), arts. 1(2), 103

C2 Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10

C3 Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 12

C4 Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)

C5 Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26

C6 Pt. 4 modified (31.12.2007) by Police and Justice Act 2006 (c. 48), s. 53(1), Sch. 3 para. 7; S.I. 2007/3203, art. 3(b)

C7 Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C8 Pt. 4 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), reg. 5A (as inserted (6.4.2006) by S.I. 2008/2990, arts. 1(1), 3)

C9 Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

Chapter 3 U.K. Payments by registered pension schemes

Unauthorised member payments U.K.

[F1 [F2 172BA Increase in rights on death arising from alternatively secured pension fund etc U.K.

(1) This section applies if, at any time (“the relevant time”) after the death of a member of a registered pension scheme, another member of the pension scheme becomes entitled to alternatively secured rights.

(2) “Alternatively secured rights” are rights representing the whole or part of the dead member’s alternatively secured pension fund, or dependant’s alternatively secured pension fund, in respect of an arrangement under the pension scheme.

(3) The pension scheme is to be treated as making an unauthorised payment to the other member (or to the other member’s personal representatives).

(4) Subject to subsection (5), the amount of the unauthorised payment is the amount by which—

(a) the consideration which might be expected to be received in respect of an assignment (or assignation) of the benefits to which the other member is actually or prospectively entitled under the pension scheme immediately after the relevant time, exceeds

(b) the consideration which might be expected to be received in respect of such an assignment (or assignation) immediately before the relevant time.

(5) But that amount is to be reduced by so much (if any) of the excess as arises from the other member becoming entitled to pension death benefits or lump sum death benefits in respect of the dead member.

(6) This section does not apply if the other member’s entitlement to the alternatively secured rights is brought about by an assignment (or agreement to assign) within section 172.

(7) Rights representing the member’s unsecured pension fund are alternatively secured rights for the purposes of this section if they would be rights representing the member’s alternatively secured pension fund but for paragraph 11(6) and (7) of Schedule 28.]]

Textual Amendments

F1 Ss. 172A-172D inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 38, 64(1)

F2 S. 172BA inserted (19.7.2007) (with effect in accordance with Sch. 19 para. 29(5) of the amending Act) by Finance Act 2007 (c. 11), Sch. 19 para. 13