[F189 Scope of Chapter 1N.I.
(1)This Chapter applies to a member of a pension scheme if all of the following conditions are met.
(2)Condition 1 is that the member has accrued rights to any category of benefits under the scheme rules.
(3)Condition 2 is that no crystallisation event has occurred in relation to the member's accrued rights to benefits in that category (see subsection (7)).
(4)Condition 3 is that—
(a)the member is no longer accruing rights to benefits in that category (see subsection (8)), and
(b)in the case of benefits that are not flexible benefits, the member stopped accruing those rights at least one year before normal pension age.
(5)But this Chapter does not apply to—
(a)a member of a salary related occupational pension scheme whose pensionable service terminated before 1 January 1986 and in respect of whom prescribed requirements are satisfied;
(b)a member of a personal pension scheme which is comprised in an annuity contract made before 4 January 1988.
(6)In this Chapter a reference to a “category” of benefits is to one of the following three categories—
(a)money purchase benefits;
(b)flexible benefits other than money purchase benefits;
(c)benefits that are not flexible benefits.
(7)For the purposes of Condition 2 a crystallisation event occurs in relation to a member's accrued rights to benefits in a category when—
(a)payment of a pension in respect of any of the benefits has begun,
(b)in the case of money purchase benefits, sums or assets held for the purpose of providing any of the benefits are designated as available for the payment of drawdown pension (as defined by paragraph 4 of Schedule 28 to the Finance Act 2004), or
(c)in the case of a personal pension scheme, sums or assets held for the purpose of providing any of the benefits are applied for purchasing an annuity or insurance policy.
(8)For the purposes of Condition 3 a member stops accruing rights to a category of benefits when there are no longer arrangements in place for the accrual of rights to benefits in that category for or in respect of the member.
(9)In this section a reference to accrued rights does not include pension credit rights.
(10)Regulations may—
(a)provide for this Chapter not to apply in relation to a person of a prescribed description;
(b)provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description;
(c)modify the application of this Chapter in relation to a member who has accrued rights to benefits of a prescribed description.
(11)In the following provisions of this Chapter—
(a)a reference to a “member” of a pension scheme is a reference to a member to whom this Chapter applies, and
(b)a reference to a member's “transferrable rights” are to any rights in relation to a category of benefits by virtue of which this Chapter applies to the member.]
Textual Amendments
F1Ss. 89, 89A, 90 substituted for ss. 89, 90 (3.3.2015 for specified purposes, 6.4.2015 in so far as not already in force) by Pension Schemes Act 2015 (c. 8), s. 89(1)(b)(3)(b), Sch. 4 para. 54 (with s. 87)