The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006

[F1 Fund depletion U.K.

4ZA.— (1) This regulation applies to determine when a member’s UK tax-relieved fund, RTF, taxable asset transfer fund (“TATF)”, RFTF and RFTATF will be reduced.

(2) In this regulation, and in regulations 4ZB to 4ZF, for the purposes of determining if a payment is of a particular type, a RNUKS is to be treated as a registered pension scheme.

(3) The funds referred to in paragraph (1) will be reduced when—

(a) the following payments are made (or treated as made under Part 4 of the Act) on or after 6th April 2017 to or in respect of a member—

(i) an unauthorised payment,

(ii) a recognised transfer,

(iii) the purchase of a lifetime annuity where the member has reached normal minimum pension age or meets the ill-health condition,

(iv) the purchase of a lifetime annuity where the member has not reached normal minimum pension age and does not meet the ill-health condition and the contract does not provide for payment, and is not able to be amended to provide for payment before normal minimum pension age (unless the ill-health condition is met),

(v) the purchase of a dependants’ or nominees’ annuity,

(vi) a payment pursuant to a pension sharing order or provision,

(vii) a defined benefits lump sum death benefit,

(viii) an uncrystallised funds lump sum death benefit,

(ix) so much of a charity lump sum death benefit paid from a relevant uncrystallised fund as defined in paragraph 15(2) of Schedule 29,

(x) a payment that is an authorised lump sum payment under section 166,

(xi) an authorised lump sum under regulations 11, 11A or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009,

(xii) a tax liability of the scheme manager, and

(b) the following crystallisation events occur on or after 6th April 2017—

(i) an individual, who has reached normal minimum pension age or meets the ill-health condition, designates sums or assets held for the purposes of a money purchase arrangement as available for payment of a drawdown pension to that individual,

(ii) the designation of sums or assets as available for the payment of dependants’ drawdown pension or nominees’ drawdown pension following the death of the member,

(iii) an individual, who has reached normal minimum pension age or meets the ill-health condition, becomes entitled to a scheme pension the member’s funds will be reduced on the first date of payment of that scheme pension,

(iv) an individual becoming entitled to a dependants’ scheme pension following the death of a member.]

Textual Amendments

F1 Regs. 4ZA-4ZF inserted (retrospective to 6.4.2017) by The Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2018 (S.I. 2018/373), regs. 1, 3, 8