SCHEDULES

C3SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary

Annotations:
Modifications etc. (not altering text)

C3C2C1Part 2Lump sum death benefit rule

Annotations:
Modifications etc. (not altering text)
C2

Sch. 29 Pt. 2 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 14

Money purchase arrangements

Charity lump sum death benefit

18

1

A lump sum death benefit is a charity lump sum death benefit if—

a

the member had reached the age of 75 at the date of the member’s death,

b

there are no dependants of the member,

c

it is paid in respect of F1the member's alternatively secured pension fund (or what would be the member's alternatively secured pension fund but for paragraph 11(6) and (7) of Schedule 28) in respect of an arrangement at the date of the member’s death, and

d

it is paid to a charity nominated by the member F4(or, if the member made no nomination, selected by the scheme administrator) .

2

A lump sum death benefit is also a charity lump sum death benefit if—

a

it is paid on the death of a dependant of the member,

b

the dependant had reached the age of 75 at the date of the dependant’s death,

c

there are no other dependants of the member,

d

it is paid in respect of F2the dependant's alternatively secured pension fund at the date of the dependant’s death in respect of an arrangement relating to the member, and

e

it is paid to a charity nominated by the member F5or, if the member made no nomination, by the dependant (or, if neither the member nor the dependant made a nomination, selected by the scheme administrator).

3

But if the amount of a lump sum falling within sub-paragraph (1) or (2) exceeds the permitted maximum, the amount of the excess is not a charity lump sum death benefit.

4

The permitted maximum is the aggregate of—

a

the amount of the sums, and

b

the market value of the assets,

representing F3what is (or but for paragraph 11(6) and (7) of Schedule 28 would be) the member’s or dependant’s alternatively secured pension fund in respect of the arrangement immediately before the payment is made.