SCHEDULES

SCHEDULE 36Pension schemes etc: transitional provisions and savings

Part 4Other provisions

Pre-commencement ill-health insurance contracts

37

1

Payments under protected ill-health insurance contracts are not unauthorised member payments.

2

Ill-health insurance contracts are contracts providing insurance against a risk relating to non-payment by a member of a pension scheme of contributions under the pension scheme.

3

An ill-health insurance contract is protected if it was made before 6th April 2006 under—

a

a personal pension scheme approved under Chapter 4 of Part 14 of ICTA before 6th April 2001, or

b

an annuity contract or trust scheme approved under section 620 or 621 of ICTA or a substituted contract within the meaning of section 622(3) of ICTA.