PART 2AMENDMENTS RELATING TO INDEXATION

Discharge of Liability Regulations

Discharge of liability: pensions under a relevant scheme

13.  In regulation 11 of the Discharge of Liability Regulations(1) (conditions on which liability to provide pensions under a relevant scheme may be discharged) –

(a)in paragraph (3) –

(i)for sub-paragraph (c) there shall be substituted the following sub-paragraph –

(c)payments to a beneficiary, or to his widow or widower, under the policy or contract which derive from a pension or accrued rights under the relevant scheme shall be subject to such increase (if any) as is required by paragraph (4A);, and

(ii)sub-paragraph (e)(ii) shall be omitted;

(b)after paragraph (4) there shall be inserted the following paragraph –

(4A) For the purposes of paragraph (3)(c) –

(a)an increase is required if Articles 51 and 52, and regulations made under those Articles, would apply to payments under the policy or contract if those payments were benefits payable under an occupational pension scheme, and

(b)such an increase shall be payable at the same rate, and to the same extent, as would be required under those provisions.;

(c)in paragraph (6) for “For the purposes of paragraph (3)(e)” there shall be substituted “For the purposes of paragraphs (3)(e) and (4A)”.

(1)

Regulation 11 was amended by regulation 13 of S.R. 1999 No. 486