The Personal Pension Schemes (Transfer Payments) (Amendment) Regulations 1989

Amendments to the Principal Regulations

6.  After regulation 4 of the Principal Regulations there shall be inserted–

“4A.— (1) If a transfer payment is made to a retirement benefits scheme or a relevant statutory scheme, and the payment or any part of it had its origin in a previous transfer payment from a retirement benefits scheme or a statutory scheme, the administrator of the personal pension scheme from which the payment is made (in this regulation referred to as “the paying scheme”) shall, within 30 days after the date on which it is made, provide the administrator of the scheme which receives it with a certificate signed by him which shows separately the maximum amount of the transfer payment, calculated in accordance with paragraphs (2) and (3), which is payable to the individual by way of lump sum.

(2) The maximum amount of a transfer payment which is payable to the individual by way of lump sum is the sum of–

(a) the amount of any previous transfer payment in respect of that individual from a retirement benefits scheme or statutory scheme which has been certified to the administrator of the paying scheme as the amount of that payment which was payable under the rules of the scheme to the individual by way of lump sum together with any amount by which that amount has been enhanced at the date of the transfer payment by virtue of regulation 11; and

(b) the amount of the balance (if any) of the transfer payment which is payable to the individual by way of lump sum in accordance with section 635 of the Act.

(3) Where a previous transfer payment referred to in paragraph (2)(a) was made before the coming into force of these Regulations, that sub-paragraph shall apply as if the scheme from which the previous transfer payment was made was one to which section 635 of the Act applied and the amounts certified were the amounts payable in accordance with those sections.”