SCHEDULES
SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary
Part 2Lump sum death benefit rule
Defined benefits and money purchase arrangements
Winding-up lump sum death benefit
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(1)
For the purposes of this Part a lump sum death benefit is a winding-up lump sum death benefit if—
(a)
the pension scheme is being wound-up,
(b)
it is paid to a dependant entitled under the pension scheme to pension death benefit in respect of the member, and
(c)
it extinguishes the dependant’s entitlement under the pension scheme to pension death benefit and lump sum death benefit in respect of the member.
(2)
But if the amount of a lump sum falling within sub-paragraph (1) exceeds 1% of the standard lifetime allowance on the date the lump sum is paid, the excess is not a winding-up lump sum death benefit.