Part VI Further Requirements for Protection of Scheme Members

107 Voluntary contributions.

1

Except in such cases as may be prescribed, and except so far as is necessary to ensure that an occupational pension scheme or a personal pension scheme has, or may be expected to qualify for, tax-exemption or tax-approval, the rules of the scheme—

a

must not prohibit, or allow any person to prohibit, the payment by a member of voluntary contributions;

b

must not impose, or allow any person to impose, any upper or lower limit on the payment by a member of voluntary contributions;

c

must secure that any voluntary contributions paid by a member are to be used by the trustees or managers of the scheme to provide additional benefits for or in respect of him; and

d

must secure that the value of the additional benefits is reasonable, having regard—

i

to the amount of the voluntary contributions; and

ii

to the value of the other benefits under the scheme.

2

The requirements specified in this section are in this Act referred to as “the voluntary contributions requirements”.

3

This section does not apply in relation to any pension payable under—

a

Part II of the M1Judicial Pensions Act (Northern Ireland) 1951;

b

Part XIII of the M2County Courts Act (Northern Ireland) 1959;

c

the M3Resident Magistrates’ Pensions Act (Northern Ireland) 1960;

d

section 2 of the M4Superannuation (Miscellaneous Provisions) Act (Northern Ireland) 1969;

e

the M5Judicial Pensions Act 1981; or

f

the M6Judicial Pensions and Retirement Act 1993;

and accordingly none of the provisions of this Act shall, in so far as it has effect in relation to the voluntary contributions requirements, apply to any such pension.