Finance Act 2004

11 (1) For the purposes of this Part the member’s alternatively secured pension fund in respect of an arrangement consists of such of the sums and assets held for the purposes of the arrangement as— U.K.

(a) meet condition A or condition B, and

(b) have not been subsequently applied [F1 towards the provision of a scheme pension].

[F2 (2) Condition A is that they—

(a) were part of the member's unsecured pension fund in respect of the arrangement when the member reached the age of 75, or

(b) arise, or (directly or indirectly) derive, from sums or assets within paragraph (a) or which so arise or derive.

(3) Condition B is that they—

(a) became held for the purposes of the arrangement after the member reached the age of 75 or arise, or (directly or indirectly) derive, from sums or assets which became so held or which so arise or derive, or

(b) if the arrangement is a relevant arrangement, have at any time since the member reached that age been designated as available for the payment of alternatively secured pension to the member or arise, or (directly or indirectly) derive, from sums or assets which have been so designated or which so arise or derive.]

(4) A relevant arrangement is an arrangement which became a money purchase arrangement after the member reached the age of 75 (having previously been a hybrid arrangement under which, in certain circumstances, defined benefits were payable).

[F3 (5) If any sums or assets representing the member's alternatively secured pension fund in respect of an arrangement under the pension scheme would (apart from this sub-paragraph) come to be taken to represent another alternatively secured pension fund of his under the pension scheme, or a dependant's alternatively secured pension fund of his under the pension scheme, they are to be treated as not doing so.]

[F4 (6) Sub-paragraph (7) applies if—

(a) at the time when the member reaches the age of 75, the scheme administrator has been unable to ascertain the member's whereabouts after having taken all reasonable steps to do so, and

(b) paragraph 8(2) applies in relation to the member and the arrangement and none of the sums or assets held for the purposes of the arrangement are member-designated funds immediately before it applies.

(7) In that case the references in sub-paragraphs (2) and (3) to the time when the member reached the age of 75 are to be read as referring to the end of the period of six months beginning with any later date on which the member's whereabouts are subsequently ascertained by the scheme administrator.]

Textual Amendments

F1 Words in Sch. 28 para. 11(1)(b) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 20(2), 64(1)

F2 Sch. 28 para. 11(2)(3) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 20(3), 64(1)

F3 Sch. 28 para. 11(5) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 20(4), 64(1)

F4 Sch. 28 para. 11(6)(7) inserted (retrospective to 6.4.2006) by Finance Act 2007 (c. 11), Sch. 19 paras. 11, 29(4)

Modifications etc. (not altering text)

C1 Sch. 28 para. 11 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 31(4)-(6)

C2 Sch. 28 para. 11 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 31(1)-(3)

C3 Sch. 28 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 14