Pension Schemes Act 1993

[F1 Requirements for certification of occupational and personal money purchase schemes][F1 Requirements for schemes with members with protected rights] E+W+S

Textual Amendments

F1 S. 26 cross-heading substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 8 (with Sch. 4 Pt. 3)

[F2 25A Requirements for schemes with members with protected rights E+W+S

(1) This section applies to—

(a) an occupational pension scheme which ceased to be a money purchase contracted-out scheme by virtue of section 15(1) of the Pensions Act 2007,

(b) a personal pension scheme which ceased to be an appropriate scheme by virtue of section 15(1) of that Act, or

(c) a registered pension scheme under section 153 of the Finance Act 2004—

(i) which is not a scheme falling within paragraph (a) or (b), and

(ii) to which the rights of a person who was at any time a member of a scheme mentioned in either of those paragraphs have been transferred.

(2) For so long as there are persons who have protected rights under a scheme to which this section applies, or who are entitled to any benefit giving effect to such rights under it, the scheme must satisfy the requirements mentioned in subsection (3).

(3) Those requirements are—

(a) the requirements imposed by or by virtue of sections 26 to 32; and

(b) such other requirements as may be prescribed.

(4) Regulations made under subsection (3)(b) may contain provision framed by reference to whether or not a scheme is a registered pension scheme under section 153 of the Finance Act 2004.]

Textual Amendments

F2 S. 25A inserted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 9 (with Sch. 4 Pt. 3)

26 Persons who may establish scheme. E+W+S

The Secretary of State may prescribe descriptions of persons by whom or bodies by which the scheme may be established and, if he does so, the scheme may only be established by a person or body of a prescribed description.

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

27 Identification and valuation of protected rights. E+W+S

(1) Where the rules of the scheme make such provision as is mentioned in section 10(2) or (3), they must also make provision for the identification of the protected rights.

(2) The value of such protected rights as are mentioned in section 10(2) or (3) must be calculated in a manner no less favourable than that in which the value of any other rights of the member to money purchase benefits under the scheme are calculated.

(3) Subject to subsection (2), the value of protected rights must be calculated and verified in such manner as may be prescribed.

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

[F3 27A Requirements in relation to giving effect to protected rights E+W+S

(1) The rules of the scheme must provide that if, in the case of a member who is married or who has a civil partner, effect is to be given to the protected rights of the member by—

(a) the provision by the scheme of a pension, or

(b) the purchase by the scheme of an annuity,

the requirement set out in subsection (2) must be satisfied in relation to the pension or annuity.

(2) The requirement is that, in a case where—

(a) the member dies while the pension or annuity is payable to him or her, and

(b) the member is survived by a widow, widower or surviving civil partner (“the survivor”),

the pension or annuity is payable to the survivor in prescribed circumstances and for the prescribed period at an annual rate which at any given time is one-half of the rate at which it would have been payable to the member if the member had been living at that time.

(3) The rules of the scheme must provide that, if effect is to be given to a member's protected rights by the provision of a lump sum, the prescribed conditions must be satisfied.

(4) The rules of the scheme must provide that, if—

(a) a member has died without effect being given to his or her protected rights, and

(b) the member is survived by a widow, widower or surviving civil partner,

effect is to be given to the protected rights in such manner as may be prescribed.]

Textual Amendments

F3 S. 27A inserted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 10 (with Sch. 4 Pt. 3)

28 Ways of giving effect to protected rights. E+W+S

(1) The rules of the scheme must provide for effect to be given to the protected rights of a member—

(a) in any case where subsection (3) so requires, by the purchase of such an annuity as is mentioned in that subsection, and

F4 (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in any other case, in such of the ways [F5 provided for] by the following subsections as the rules may specify,

and they must not provide for any part of a member’s protected rights to be discharged otherwise than in accordance with those subsections.

(1A) [F6 Where the scheme is a personal pension scheme which provides for the member to elect to receive payments in accordance with this subsection, and the member so elects, effect shall be given to his protected rights during the interim period by the making of payments under an interim arrangement which—

(a) complies with section 28A, and

(b) satisfies such conditions as may be prescribed;

and in such a case subsections (2) to (4) accordingly apply as regards giving effect to his protected rights as from the end of that period.]

(2) Effect may be given to protected rights—

(a) by the provision by the scheme of a pension which—

(i) complies with the pension requirements (within the meaning of section 29(1)), and

(ii) satisfies such conditions as may be prescribed; or

(b) in such circumstances and subject to such conditions as may be prescribed, by the making of a transfer payment—

(i) in the case of an occupational pension scheme, to another occupational pension scheme [F7 , to a personal pension scheme or to an overseas arrangement], and

(ii) in the case of a personal pension scheme, to another personal pension scheme [F8 , to an occupational pension scheme or to an overseas arrangement],

where the scheme to which the payment is made satisfies such requirements as may be prescribed.

(3) Subject to subsections (5) and (7), if—

(a) the rules of the scheme do not provide for a pension; or

(b) the member [F9 or, where section 28A(2) applies, the member’s [F10 widow, widower or surviving civil partner]] so elects,

then, except to the extent that effect is given to protected rights in accordance with subsection [F11 (1A)] [F12 or (4)], effect shall be given to them by the purchase by the scheme of an annuity which—

(i) complies with the annuity requirements (within the meaning of section 29(3)), and

(ii) satisfies such conditions as may be prescribed.

(4) Effect may be given to protected rights by the provision of a lump sum [F13 , subject to such restrictions as may be prescribed,] if—

F14 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the circumstances are such as may be prescribed; and

[F15 (d) the amount of the lump sum is equal to the value on that date of the protected rights to which effect is being given][F16 ; and

(e) such other conditions as may be prescribed are satisfied.]

F17 (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17 (4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) If the member has died without effect being given to protected rights under subsection [F18 (1A)] (2), (3) [F19 or (4)], effect may be given to them in such manner as may be prescribed.

(6) No transaction is to be taken to give effect to protected rights unless it falls within this section.

F20 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F21 (8) In this section and sections 28A, 28B and 29—

• “the interim period” means the period beginning with the starting date in relation to the member in question and ending with the termination date;

• “the starting date” means the date F22 ... by reference to which the member elects to begin to receive payments under the interim arrangement;

• “the termination date” means the date by reference to which the member (or, where section 28A(2) applies, the member’s [F23 widow, widower or surviving civil partner]) elects to terminate the interim arrangement F24 ... .]

[F25 (9) This section is subject to section 32A]

Textual Amendments

F4 S. 28(1)(aa) repealed (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(2)(a), Sch. 13 Pt. I; S.I. 2001/4049, art. 2(1)(a)

F5 Words in s. 28(1)(b) substituted (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(2)(b); S.I. 2001/4049, art. 2(1)(a)

F6 S. 28(1A) substituted (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(3); S.I. 2001/4049, art. 2(1)(a)

F7 Words in s. 28(2)(b)(i) substituted (1.1.2001) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(b)(2), Sch. 5 para. 2(2)(a) (with s. 83(6)); S.I. 2000/3166, art. 2(3)(b)(ii)

F8 Words in s. 28(2)(b)(ii) substituted (1.1.2001) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(b)(2), Sch. 5 para. 2(2)(b) (with s. 83(6)); S.I. 2000/3166, art. 2(3)(b)(ii)

F9 Words in s. 28(3)(b) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 142(4)(a), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F10 Words in s. 28(3)(b) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(2)(3), Sch. 1 para. 9(a)

F11 Words in s. 28(3) substituted (11.11.1999 for specified purposes, 1.1.2002 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 2 para. 5(4); S.I. 2001/4049, art. 2(1)(a)

F12 Words in s. 28(3) substituted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(5), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F13 Words in s. 28(4) inserted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(3)(a), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F14 S. 28(4)(a)(b) repealed (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(3)(b), 322(1), Sch. 13 (with s. 313); S.I. 2005/1720, art. 2(13)(15)(a)(b), Sch. Pt. 2

F15 S. 28(4)(d) substituted (1.1.2001) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(b)(2), Sch. 5 para. 3(2) (with s. 83(6)); S.I. 2000/3166, art. 2(3)(b)(iii)

F16 S. 28(4)(e) and preceding word inserted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(3)(c), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F17 S. 28(4A)(4B) repealed (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(4), 322(1), Sch. 13 (with s. 313); S.I. 2005/1720, art. 2(13)(15)(a)(b), Sch. Pt. 2

F18 Word in s. 28(5) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 142(6), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F19 Words in s. 28(5) substituted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(5), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F20 S. 28(7) omitted (6.4.1997) by virtue of Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 34(b), Sch. 7 Pt. III; S.I. 1997/664, art. 2(3), Sch. Pt. 2

F21 S. 28(8) added (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 142(7), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F22 Words in s. 28(8) repealed (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(6), 322(1), Sch. 13 (with s. 313); S.I. 2005/1720, art. 2(13)(15)(a)(b), Sch. Pt. 2

F23 Words in s. 28(8) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(2)(3), Sch. 1 para. 9(c)(i)

F24 Words in s. 28(8) omitted (6.4.2006) by virtue of The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(3)

F25 S. 28(9) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 146(2), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

Modifications etc. (not altering text)

C1 S. 28 extended (1.10.2000) by The Stakeholder Pension Schemes Regulations 2000 (S.I. 2000/1403), regs. 1(1), 3(7)

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

[F26 28A Requirements for interim arrangements E+W+S

(1) An interim arrangement must provide for payments to be made to the member, and, where subsection (2) applies, to the member’s [F27 widow, widower or surviving civil partner], throughout the interim period, at intervals not exceeding twelve months [F28 but the member, widow, widower or surviving civil partner may forbear to receive such payments].

(2) This subsection applies where the member dies during the interim period and is survived by a [F29 widow, widower or surviving civil partner] F30 ... .

(3) The aggregate amount of payments made to a person under an interim arrangement in each successive period of twelve months [F31 (“the aggregate payment”) must not be greater than—

(a) the amount specified by pension rule 5 in subsection (1) of section 165 of the Finance Act 2004 (pension rules) for the [F32 drawdown pension year] which ends in that period of twelve months [F33 (disregarding the second sentence of pension rule 5)], [F34 or]

F35 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the amount specified by pension death benefit rule 4 in subsection (1) of section 167 of the Finance Act 2004 (pension death benefit rules) for the [F36 drawdown pension year] which ends in that period of twelve months [F37 (disregarding the second sentence of pension death benefit rule 4)], where subsection (2) applies F38 ...

F39 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

This is subject to subsection (3A).]

[F40 (3A) The proportion of the aggregate payment which gives effect to a person’s protected rights must not be greater than the proportion of the value of the rights to money purchase benefits under the scheme that is attributable to the protected rights.]

F41 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F26 Ss. 28A, 28B inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 143, 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F27 Words in s. 28A(1) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(2)(3), Sch. 1 para. 10

F28 Words in s. 28A(1) inserted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(4)(a)

F29 Words in s. 28A(2) substituted (26.7.2005 for specified purposes, 5.12.2005 in so far as not already in force) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(2)(3), Sch. 1 para. 10

F30 Words in s. 28A(2) omitted (6.4.2006) by virtue of The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(4)(b)

F31 Words in s. 28A(3) substituted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(4)(c)

F32 Words in s. 28A(3)(a) substituted (with effect for the tax year 2011-12 and subsequent tax years) by Finance Act 2011 (c. 11), Sch. 16 para. 58(a)(i) (with Sch. 16 para. 85)

F33 Words in s. 28A(3)(a) inserted (with effect for the tax year 2011-12 and subsequent tax years) by Finance Act 2011 (c. 11), Sch. 16 para. 58(a)(ii) (with Sch. 16 para. 85)

F34 Word in s. 28A(3) substituted (with effect for the tax year 2011-12 and subsequent tax years) by Finance Act 2011 (c. 11), Sch. 16 para. 58(a)(iii) (with Sch. 16 para. 85)

F35 S. 28A(3)(b) omitted (with effect for the tax year 2011-12 and subsequent tax years) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 58(c) (with Sch. 16 para. 85)

F36 Words in s. 28A(3)(c) substituted (with effect for the tax year 2011-12 and subsequent tax years) by Finance Act 2011 (c. 11), Sch. 16 para. 58(b)(i) (with Sch. 16 para. 85)

F37 Words in s. 28A(3)(c) inserted (with effect for the tax year 2011-12 and subsequent tax years) by Finance Act 2011 (c. 11), Sch. 16 para. 58(b)(ii) (with Sch. 16 para. 85)

F38 Words in s. 28A(3)(c) omitted (with effect for the tax year 2011-12 and subsequent tax years) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 58(b)(iii) (with Sch. 16 para. 85)

F39 S. 28A(3)(d) omitted (with effect for the tax year 2011-12 and subsequent tax years) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 58(c) (with Sch. 16 para. 85)

F40 S. 28A(3A) inserted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(4)(d)

F41 S. 28A(4)(5) omitted (6.4.2006) by virtue of The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(4)(e)

28B Information about interim arrangements E+W+S

(1) The trustees or managers of a personal pension scheme must, if required to do so by the [F42 Inland Revenue], produce any document relevant to—

(a) the level of payments made under any interim arrangement, or

(b) the value of protected rights to which such an arrangement gives effect,

or otherwise connected with the making of payments under such an arrangement.

(2) In this section, “document” includes information recorded in any form, and the reference to the production of a document, in relation to information recorded otherwise than in legible form, is a reference to producing a copy of the information in legible form.]

Textual Amendments

F26 Ss. 28A, 28B inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 143, 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F42 Words in s. 28B(1) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 41; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

29 The pension and annuity requirements. E+W+S

(1) For the purposes of section 28 a pension complies with the pension requirements if—

[F43 (a) in the case of an occupational pension scheme it commences on a [F44 date that is not later than the member’s 65th birthday, or on] such later date as has been agreed by him, and continues until the date of his death, or

(aa) in the case of a personal pension scheme—

(i) where the member has elected under section 28(1A) to receive payments under an interim arrangement, it commences on the termination date, and continues until the date of the member’s death or, where section 28A(2) applies, until the death of the member’s widow or widower, or

(ii) otherwise, it commences on such a date as has been agreed by the member F45 ... and continues until the date of his death;]

(b) in a case where the member dies while it is payable to him and is survived by a [F46 widow, widower or surviving civil partner]—

(i) it is payable to the [F46 widow, widower or surviving civil partner] in prescribed circumstances and for the prescribed period at an annual rate which at any given time is one-half of the rate at which it would have been payable to the member if the member had been living at that time; or

(ii) where that annual rate would not exceed a prescribed amount and the circumstances are such as may be prescribed, a lump sum calculated in [F47 the prescribed manner] is provided in lieu of it.

(2) As respects the period of 5 years beginning with the commencement of the pension referred to in subsection (1), that subsection shall have effect in relation to that pension as if the words “at least” were inserted immediately before the words “one-half” in paragraph (b)(i).

(3) For the purposes of section 28 an annuity complies with the annuity requirements if—

(a) it satisfies the requirements mentioned in subsections (1) and (2) (taking the references in those subsections to pensions as references to annuities); and

(b) it is provided by an [F48 insurer] which—

(i) satisfies prescribed conditions;

(ii) complies with such conditions as may be prescribed as to the calculation of annuities provided by it and as to the description of persons by or for whom they may be purchased; and

(iii) subject to subsection (4), has been chosen by the member [F49 or, where section 28A(2) applies, the member’s [F50 widow, widower or surviving civil partner]].

(4) A member [F51 (or a member’s [F52 widow, widower or surviving civil partner])] is only to be taken to have chosen an [F53 insurer] if he gives notice of his choice to the trustees or managers of the scheme within the prescribed period and in such manner and form as may be prescribed, and with any such supporting evidence as may be prescribed; and, if he does not do so, the trustees or managers may themselves choose the [F53 insurer] instead.

Textual Amendments

F43 S. 29(1)(a)(aa) substituted for s. 29(1)(a) (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 144(2), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F44 Words in s. 29(1)(a) substituted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(7)(a), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F45 Words in s. 29(1)(aa)(ii) repealed (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 284(7)(b), 322(1), Sch. 13 (with s. 313); S.I. 2005/1720, art. 2(13)(15)(a)(b), Sch. Pt. 2

F46 Words in s. 29(1)(b) substituted (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(3), Sch. 1 para. 11

F47 Words in s. 29(1)(b)(ii) substituted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 35; S.I. 1996/778, art. 2(5)(a), Sch. Pt. 5; S.I. 1997/664, art. 2(3), Sch. Pt. 2

F48 Word in s. 29(3)(b) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 117(2)

F49 Words in s. 29(3)(b)(iii) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 144(3), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F50 Words in s. 29(3)(b) substituted (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(3), Sch. 1 para. 11

F51 Words in s. 29(4) inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 144(4), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F52 Words in s. 29(4) substituted (5.12.2005) by The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pension Schemes) (Surviving Civil Partners) Order 2005 (S.I. 2005/2050), art. 1(3), Sch. 1 para. 11

F53 Word in s. 29(4) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 117(3)

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

30 Securing of liability for protected rights. E+W+S

(1) The [F54 Inland Revenue] must be satisfied that the scheme complies with any such requirements as may be prescribed for meeting the whole or a prescribed part of any liability in respect of protected rights under the scheme which the scheme is unable to meet from its own resources—

(a) by reason of the commission by any person of a criminal offence;

(b) in such other circumstances as may be prescribed.

(2) Subsection (1) does not apply to a public service pension scheme.

Textual Amendments

F54 Words in s. 30(1) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 42; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

31 Investment and resources of schemes. E+W+S

F55 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The scheme must comply with such requirements as may be prescribed as regards the part—

(a) of any payment that is made to the scheme by or on behalf of a member of the scheme;

(b) of any income or capital gain arising from the investment of such a payment; or

(c) of the value of rights under the scheme,

that may be used—

(i) to defray the administrative expenses of the scheme;

(ii) to pay commission; or

(iii) in any other way which does not result in the provision of benefits for or in respect of members.

(3) Subject to subsection (4)—

(a) in the case of an occupational pension scheme, all minimum payments [F56 and payments under section 42A(3)] and any payments made by the [F57 Inland Revenue] under section 7 of the M1 Social Security Act 1986, and

(b) in the case of a personal pension scheme, all minimum contributions,

which are paid to a scheme in respect of one of its members must be applied so as to provide money purchase benefits for or in respect of that member, except so far as they are used—

(i) to defray the administrative expenses of the scheme; or

(ii) to pay commission.

(4) If regulations are made under subsection (2), the payments mentioned in paragraph (a) of subsection (3) and the contributions mentioned in paragraph (b) of that subsection may be used in any way which the regulations permit, but not in any way not so permitted except to provide money purchase benefits for or in respect of the member.

[F58 (5) Any minimum contributions required by reason of this section to be applied so as to provide money purchase benefits for or in respect of a member of a scheme must be so applied in the prescribed manner and within the prescribed period.]

Textual Amendments

F55 S. 31(1) repealed (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 36(a), Sch. 7 Pt. III; S.I. 1996/1412, art. 2(2), Sch. Pt. II; S.I. 1997/664, art. 2(3), Sch. Pt. II

F56 Words in s. 31(3)(a) inserted (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 36(b); S.I. 1996/1412, art. 2(2), Sch. Pt. 2; S.I. 1997/664, art. 2(3), Sch. Pt. 2

F57 Words in s. 31(3)(a) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 43; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F58 S. 31(5) added (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 36(c); S.I. 1996/1412, art. 2(2); S.I. 1997/664, art. 2(3), Sch. Pt. 2

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Marginal Citations

M1 1986 c. 50.

32 Suspension or forfeiture. E+W+S

Except in such circumstances as may be prescribed, the rules of the scheme must not permit the suspension or forfeiture of a member’s protected rights or of payments giving effect to them.

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

[F59 32A Discharge of protected rights on winding up: insurance policies E+W+S

[F60 (1) Where an occupational pension scheme is being wound up and such conditions as may be prescribed are satisfied, effect may be given to the protected rights of a member of the scheme (in spite of section 28) by—

(a) taking out an appropriate policy of insurance, or a number of such policies, under which the member is the beneficiary, or

(b) assuring the benefits of a policy of insurance, or a number of such policies, to the member, where the policy assured is an appropriate policy.

(2) A policy of insurance is appropriate for the purposes of this section if—

(a) the [F61 insurer] with which it is or was taken out or entered into—

(i) is, or was at the time when the policy was taken out or (as the case may be) the benefit of it was assured, carrying on F62 ... long-term insurance business F62 ... in the United Kingdom or any other [F63 EEA state], and

(ii) satisfies, or at that time satisfied, prescribed requirements, and

(b) it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed, and

(c) it contains or is endorsed with terms whose effect is that the amount secured by it may not be commuted except on conditions which satisfy such requirements as may be prescribed, and

(d) it satisfies such other requirements as may be prescribed]]

[F60 (1) Where an occupational pension scheme is being wound up, effect may not be given to the protected rights of a member of the scheme by taking out a policy of insurance (or a number of such policies) under which the member is the beneficiary unless the policy (or each such policy) satisfies the requirement in subsection (2).

(2) The requirement is that the policy of insurance makes such provision in relation to giving effect to the protected rights of the beneficiary as a scheme to which section 25A applies is required to make under or by virtue of section 27A in relation to giving effect to the protected rights of a member of the scheme.]

Textual Amendments

F59 S. 32A inserted (13.3.1996 for specified purposes, 1.4.1996 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 146(1), 180(1); S.I. 1996/778, art. 2(2), Sch. Pt. 2

F60 S. 32A substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 12 (with Sch. 4 Pt. 3)

F61 Word in s. 32A(2)(a) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 118(a)

F62 Words in s. 32A(2)(a)(i) repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 118(b)

F63 Words in s. 32A(2)(a)(i) substituted (26.11.2007) by The Occupational Pension Schemes (EEA States) Regulations 2007 (S.I. 2007/3014), regs. 1, 2, Sch. para. 1(c)

33 Tax requirements to prevail over [F64 certification requirements][F64 requirements of sections 25A to 32]. E+W+S

Nothing in sections [F65 26][F65 25A] to 32 shall be taken to prejudice any requirements with which [F66 a registered scheme must comply under Part 4 of the Finance Act 2004].

Textual Amendments

F64 Words in s. 33 sidenote substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 13(3) (with Sch. 4 Pt. 3)

F65 Word in s. 33 substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 13(2) (with Sch. 4 Pt. 3)

F66 Words in s. 33 substituted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(5)

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

[F67 33A [F68 Appropriate schemes][F68 Personal pension schemes]: “Blowing the whistle” E+W+S

(1) If any person acting as an auditor or actuary of [F69 an appropriate scheme][F69 a personal pension scheme to which section 25A applies] has reasonable cause to believe that—

(a) [F70 any requirement which, in the case of the scheme, is required by section 9(5)(a) to be satisfied is not satisfied, and]

[F70 any requirement which, in the case of the scheme, is required by section 25A to be satisfied is not satisfied,]

(b) the failure to satisfy the requirement is likely to be of material significance in the exercise by the [F71 Inland Revenue] of any of [F72 their] functions relating to [F73 appropriate schemes][F73 personal pension schemes to which section 25A applies],

that person must immediately give a written report of the matter to the [F71 Inland Revenue].

(2) No duty to which a person acting as auditor or actuary of an appropriate scheme is subject shall be regarded as contravened merely because of any information or opinion contained in a written report under this section.]

Textual Amendments

F67 S. 33A inserted (6.4.1997) by Pensions Act 1995 (c. 26), ss. 147, 180(1); S.I. 1997/664, art. 2(3), Sch. Pt. 2

F68 Words in s. 33A sidenote substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 14(3) (with Sch. 4 Pt. 3)

F69 Words in s. 33A(1) substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 14(2)(a) (with Sch. 4 Pt. 3)

F70 S. 33A(1)(a) substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 14(2)(b) (with Sch. 4 Pt. 3)

F71 Words in s. 33A(1) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 44(a); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F72 Word in s. 33A(1) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 44(b); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F73 Words in s. 33A(1)(b) substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b)(3), Sch. 4 para. 14(2)(c) (with Sch. 4 Pt. 3)