(1)The rules of law relating to perpetuities shall not apply to the trusts of, or any disposition made under or for the purposes of a personal or occupational pension scheme at any time when this section applies to it.
(2)This section applies to—
(a)a public service pension scheme;
(b)an occupational pension scheme which is a contracted-out scheme in relation to any employment;
(c)a personal pension scheme which is an appropriate scheme; and
(d)an occupational or personal pension scheme which satisfies prescribed requirements.
(3)Subsection (1) applies whether the trusts or dispositions in question are created or made before or after this section first applies to the scheme, but this section does not validate with retrospective effect any trusts or dispositions which the rules of law relating to perpetuities (including, where applicable, section 3(1) of the M1Perpetuities and Accumulations Act 1964 (“wait and see”)) already require to be treated as void before this section applies to the scheme.
(4)Regulations under subsection (2)(d) may require a scheme—
(a)to contain provisions in any prescribed form, or to any prescribed effect; or
(b)to have tax-exemption or tax-approval or to be such a scheme that it may be expected to qualify for tax-exemption or tax-approval.
(5)Such regulations may be so framed that, in prescribed circumstances, the requirements can be treated as satisfied if application has been duly made to the Inland Revenue with a view to obtaining tax-approval for the scheme.
(6)Regulations may include provision by which a scheme (other than a public service pension scheme) to which this section ceases to apply may nevertheless be treated as continuing to be a scheme to which it applies for a period of two years from its ceasing to be such a scheme, or for such longer period as the F1... [F1Secretary of State] F1... [F1considers] to be reasonable in the case of a particular scheme.
(7)If this section ceases to apply to a scheme, trusts created and dispositions made under it or for its purposes shall then again be subject to the rules of law relating to perpetuities as if this section had never applied to it.
(8)Subsection (7) is without prejudice to any rights which vested while this section applied.
[F2(9)Regulations may provide for a scheme, whose fund was registered under the M2Superannuation and other Trust Funds (Validation) Act 1927 immediately before the repeal of that Act took effect, to retain the benefit of that Act subject to prescribed conditions and either indefinitely or for a prescribed period.]
Textual Amendments
F1Word in s. 163(6) 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. 21; S.I. 1996/778, art. 2(5)(a), Sch. Pt. 5; S.I. 1997/664, art. 2(3), Sch. Pt. 2
F2S. 163(9) omitted (temp. until the coming into force of what remains of 1973 c. 38, s. 69(7)) (7.2.1994) by virtue of Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 9 paras. 1, 2 (with ss. 6(8), 164); S.I. 1994/86, art. 2
Commencement Information
I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2
Marginal Citations