C1 Part III Certification of Pension Schemes and Effects on Members’ State Scheme Rights and Duties
Chapter I Certification
Requirements for certification of occupational and personal money purchase schemes
24 Ways of giving effect to protected rights.
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
F1aa
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
in any other case, in such of the ways F2provided 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.
F31A
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 24A, 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 25(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 F4, 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 F5, 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 F6subsection (5), if—
a
the rules of the scheme do not provide for a pension; or
b
then, except to the extent that effect is given to protected rights in accordance with subsection F8(1A)F14or (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 25(3)), and
ii
satisfies such conditions as may be prescribed.
4
Effect may be given to protected rights by the provision of a lump sumF18, subject to such restrictions as may be prescribed, if—
F27a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F28b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
the circumstances are such as may be prescribed; F22...
e
such other conditions as may be prescribed are satisfied.
F254A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F264B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F205
6
No transaction is to be taken to give effect to protected rights unless it falls within this section.
F117
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F21F128
In this section and sections 24A, 24B and 25—
“the interim period” means the period beginning with (and including) the starting date in relation to the member in question and ending with the termination date;
“the starting date, means the dateF24... 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 24A(2) applies, the member’s F17widow, widower or surviving civil partner) elects to terminate the interim arrangement,F23...
F139
This section is subject to section 28A.
Pt. 3: power to modify conferred (1.6.1996 for certain purposes otherwise 6.4.1997) by S.I. 1995/3213 (N.I. 22), art. 146(1); S.R. 1996/91, art. 2(f); S.R. 1997/192, art. 2
Pt. 3: power to transfer functions conferred (1.4.1999) by 1999 c. 2, s. 23(1)(2)(6); S.I. 1999/527, art. 2(b), Sch. 2