SCHEDULES

C2C1SCHEDULE 32Registered pension schemes: benefit crystallisation events—supplementary

Annotations:
Modifications etc. (not altering text)

Benefit crystallisation events 2 and 4: early lifetime annuities

I1C2C17

1

This paragraph has effect if—

a

the individual becomes entitled before reaching normal minimum pension age to the payment of a lifetime annuity purchased under a money purchase arrangement under any of the relevant pension schemes, and

b

the ill-health condition is not satisfied immediately before the individual becomes so entitled.

2

Benefit crystallisation event 2 applies as if—

a

the lifetime annuity were a scheme pension under the pension scheme, and

b

the individual becomes entitled to it only on reaching normal minimum pension age.

3

Benefit crystallisation event 4 does not apply in relation to the lifetime annuity.

F14

Sub-paragraph (5) has effect for the purposes of benefit crystallisation event 2 as it applies in relation to the individual's becoming entitled to the lifetime annuity.

5

If the total of—

a

the sums applied to purchase the lifetime annuity and any related dependants' annuity, and

b

the market value, at the time they are applied, of the assets applied to make the purchase,

is greater than the amount that would apart from this sub-paragraph be the amount crystallised by the event, that total is the amount crystallised by the event.