C1C2C3C4C5Part IIIF2Schemes that were contracted-out etc and Effects on Members’ State Scheme Rights F3...

Annotations:
Amendments (Textual)
F2

Words in Pt. 3 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(a)

F3

Words in Pt. 3 heading omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 3(b)

Chapter IF4Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc

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Amendments (Textual)
F4

Pt. 3 Ch. 1 heading substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 4

F5Guaranteed minimum pensions

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Amendments (Textual)

24BF1The conversion conditions

1

This section specifies the conditions referred to in sections 13(1A) and 17(1A) (for exemption from the requirement to guarantee a minimum pension).

2

Condition 1 is that the post-conversion benefits must be actuarially at least equivalent to the pre-conversion benefits.

3

Condition 2 is that if the earner was entitled immediately before the conversion date to the payment of a pension under the scheme, the converted scheme does not provide for a reduction of, or have the effect of reducing, the amount of that pension immediately after conversion.

4

Condition 3 is that the post-conversion benefits must not include money purchase benefits, apart from any money purchase benefits provided under the scheme immediately before the conversion date.

5

Condition 4 is that the converted scheme provides survivors' benefits in accordance with section 24D in such circumstances, and during such periods, as are prescribed by regulations.

6

Condition 5 is that the procedural requirements of section 24E have been complied with.

7

In applying these conditions to a scheme in respect of an earner—

a

it is immaterial whether or not on the conversion date the scheme was also converted in respect of other earners, and

b

it is immaterial (except for Condition 2) whether or not on the conversion date the earner was entitled to the payment of a pension under the scheme.