16(1)In the case of a pension scheme with fewer than 50 members, a pension payable to a dependant is a dependants' scheme pension for the purposes of this Part if—
(a)it is payable by an insurance company selected by the scheme administrator or, where the scheme administrator is an insurance company, by the scheme administrator, and
(b)it satisfies the condition in sub-paragraph (3).
(2)In the case of a pension scheme with 50 or more members, a pension payable to a dependant is a dependants' scheme pension if—
(a)it is payable by the scheme administrator or by an insurance company selected by the scheme administrator, and
(b)it satisfies the condition in sub-paragraph (3).
(3)The condition is that (subject to sub-paragraph (4))—
(a)if the dependant is not the member’s child, the pension is payable until the dependant’s death or until the earlier of the dependant’s marrying or dying,
(b)if the dependant is the member’s child, the pension is payable until the earlier of the dependant’s ceasing to be a dependant or dying, or until the earliest of the dependant’s marrying, ceasing to be a dependant or dying, and
(c)the rate of pension payable in respect of any relevant 12 month period is not less than the rate payable in respect of the previous 12 month period.
(4)Neither of the following prevents the pension satisfying the condition in sub-paragraph (3)—
(a)a reduction in the rate of the pension which applies to all the dependants' scheme pensions being paid in respect of members of the pension scheme, or
(b)if the dependant becomes entitled to state retirement pension, a reduction in the rate of the pension which does not exceed the rate at which state retirement pension is payable (or, if the rate at which state retirement pension is payable is greater than the rate of the pension, the pension ceasing to be payable).
(5)For the purposes of sub-paragraph (4)(b) the following constitute “state retirement pension”—
(a)retirement pension under SSCBA 1992 or SSCB(NI)A 1992, and
(b)graduated retirement benefit under NIA 1965 or NIA(NI) 1966.
(6)A relevant 12 month period is any 12 month period which—
(a)begins on or after the first anniversary of the member’s death, and
(b)ends before the day on which the pension ceases to be payable.