PART 6Retirement benefits
CHAPTER 6Allocation of part of pension
Effect of allocation electionI189
1
If an allocation election takes effect—
a
the member’s pension is reduced accordingly (and this reduction applies even if the beneficiary predeceases the member); and
b
if the beneficiary survives the member, on the member’s death the beneficiary becomes entitled to the payment of a pension for life (“allocated pension”) of an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to—
i
the amount of retirement pension allocated under the election, and
ii
the beneficiary’s age and gender.
2
F2The scheme manager may withhold payment from the beneficiary if—
a
the member dies before the end of the period of 2 years beginning with the date on which the election takes effect; and
b
the scheme manager is satisfied that the member made a false declaration about the member’s state of health when making the election.
3
An allocation election in relation to a retirement pension has no effect if it would result in an allocated pension being paid—
a
on the member becoming entitled to the retirement pension, to a person who is not—
i
the member’s spouse or civil partner;
ii
financially wholly or mainly dependent on F1the member ; or
iii
financially interdependent with F1the member ;
b
on the death of the member, to a person who is not—
i
the member’s surviving adult; or
ii
a dependant of the member for the purposes of paragraph 15(2) or (3) of Schedule 28 (registered pension schemes: authorised pensions – supplementary) to the 2004 Act.