Dependants' drawdown pensionU.K.
11(1)In Part 4 of FA 2004, section 167 (pension death benefit rules) is amended as follows.U.K.
(2)In subsection (1)—
(a)in pension death benefit rule 3—
(i)for “If a dependant has not reached the age of 75, no payment of pension death benefit to the dependant” substitute “ No payment of pension death benefit ”,
(ii)for paragraph (c) substitute—
“(c)dependants' drawdown pension,”, and
(iii)for “the dependant” substitute “ a dependant ”;
(b)for pension death benefit rule 4 substitute— “ Pension death benefit rule 4 The total amount of dependants' drawdown pension paid to a dependant in each drawdown pension year in respect of a money purchase arrangement must not exceed 100% of the basis amount for the drawdown pension year. But this limit does not apply in relation to an arrangement to which subsection (2A) applies. ”;
(c)omit pension death benefit rules 5 and 6.
(3)After subsection (2) insert—
“(2A)This subsection applies to an arrangement if—
(a)the dependant meets the flexible drawdown conditions,
(b)the dependant makes a valid declaration to the scheme administrator to that effect, and
(c)the declaration is accepted by the scheme administrator.
(2B)The dependant meets the flexible drawdown conditions if—
(a)the dependant satisfied the minimum income requirement on the relevant day,
(b)no relevant contributions are paid under any money purchase arrangement (other than a cash balance arrangement) relating to the dependant under a registered pension scheme in the tax year in which the declaration is made, and
(c)at the time of the declaration the dependant is not an active member of any registered pension scheme under which there is a defined benefits or cash balance arrangement relating to the dependant.”