51 Restriction on index-linking where annuity tied to investments.E+W+S
(1)In section 51(2) of the M1Pensions Act 1995 (annual increases in rate of pension), for “Subject to section 52” there shall be substituted “Subject to sections 51A and 52”.
(2)After section 51 of that Act there shall be inserted—
“51A Restriction on increase where annuity tied to investments.
(1)No increase under section 51 is required to be made, at any time on or after the relevant date, of so much of any pension under a money purchase scheme as—
(a)is payable by way of an annuity the amount of which for any year after the first year of payment is determined (whether under the terms of the scheme or under the terms of the annuity contract in pursuance of which it is payable) by reference to fluctuations in the value of, or the return from, particular investments;
(b)does not represent benefits payable in respect of the protected rights of any member of the scheme; and
(c)satisfies such other conditions (if any) as may be prescribed.
(2)For the purposes of this section it shall be immaterial whether the annuity in question is payable out of the funds of the scheme in question or under an annuity contract entered into for the purposes of the scheme.
(3)In this section “the relevant date” means the date appointed for the coming into force of section 51 of the Child Support, Pensions and Social Security Act 2000.”
Marginal Citations