Finance (No. 2) Act 2024

24 Collective money purchase arrangements U.K.

(1) Part 4 of FA 2004 (pension schemes) is amended as follows.

(2) In section 169(1F) (recognised transfers),

for “of a CMP-derived drawdown pension” substitute “of—

(a) sums or assets that—

(i) were transferred in accordance with section 36 of the Pension Schemes Act 2021 and regulations made under that section (collective money purchase scheme pursuing continuity option 1: discharge of liabilities and winding up (Great Britain)),

(ii) were transferred in accordance with section 87 of the Pension Schemes Act 2021 and regulations made under that section (collective money purchase scheme pursuing continuity option 1: discharge of liabilities and winding up (Northern Ireland)), or

(iii) are derived from sums or assets within sub-paragraph (i) or (ii);

(b) any pension or other benefits provided from sums or assets within paragraph (a).”

(3) In section 169(1G), for “held for the purposes of a CMP-derived drawdown pension” substitute “within paragraph (a) of that subsection”.

(4) In section 279 (other definitions) omit subsection (1F).

(5) In section 280 (abbreviations and general index), in subsection (2) omit the entry for “CMP-derived drawdown pension”.

(6) In Schedule 29 (authorised lump sums - supplementary), in paragraph 1 (pension commencement lump sums)—

(a) in sub-paragraph (1)(c), at the end insert “, and”;

(b) omit sub-paragraph (1)(f) and the “and” before it;

(c) omit sub-paragraph (4A).

(7) In Schedule 29, in paragraph 3C (pension commencement excess lump sum), in sub-paragraph (4) omit paragraph (b) and the “or” before it.