C1C3C4C5C6C8C9C10C11C15C17Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C9

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C11

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C15

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C17

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C15Chapter 3Payments by registered pension schemes

Authorised member payments

I1C7C12C13C14C16165Pension rules

C21

These are the rules relating to the payment of pensions by a registered pension scheme to a member of the pension scheme (“the pension rules”).

  • Pension rule 1

    No payment of pension may be made before the day on which the member reaches normal minimum pension age, unless the ill-health condition was met immediately before the member became entitled to a pension under the pension scheme.

  • Pension rule 2

    If the member dies before the end of the period of ten years beginning with the day on which the member became entitled to a scheme pension F2or an annuity, payment of the scheme pension F3or annuity may continue to be made (to any person) until the end of that period.

    But no other payment of the member’s pension may be made after the member’s death.

  • Pension rule 3

    No payment of pension other than a scheme pension may be made in respect of a defined benefits arrangement.

  • Pension rule 4

    F5No payment of pension other than—

    1. a

      a scheme pension,

    2. b

      a lifetime annuity, or

    3. c

      F6drawdown pension

    may be made in respect of a money purchase arrangement; but a scheme pension may only be paid if the member had an opportunity to select a lifetime annuity instead.

  • F7Pension rule 5

    The total amount of drawdown pension paid in each drawdown pension year in respect of a money purchase arrangement must not exceed F10120% of the basis amount for the drawdown pension year.

  • F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

In this Part “pension”, in relation to a registered pension scheme, includes—

a

an annuity, and

b

income withdrawal.

3

For the purposes of this Part, a person becomes entitled to a pension under a registered pension scheme—

a

in the case of income withdrawal under the pension scheme, whenever sums or assets held for the purposes of an arrangement under the pension scheme are designated as available for the payment of F9drawdown pension, and

b

in any other case, when the person first acquires an actual (rather than a prospective) right to receive the pension

F1and, for this purpose, the abatement of a scheme pension under a public service pension scheme is not to be taken to affect the right to receive it.

F43A

This subsection applies to an arrangement if—

a

the member meets the flexible drawdown conditions,

b

the member makes a valid declaration to the scheme administrator to that effect, and

c

the declaration is accepted by the scheme administrator.

3B

The member meets the flexible drawdown conditions if—

a

the member satisfied the minimum income requirement on the relevant day,

b

no relevant contributions are paid under any money purchase arrangement (other than a cash balance arrangement) relating to the member under a registered pension scheme in the tax year in which the declaration is made, and

c

at the time of the declaration the member is not an active member of any registered pension scheme under which there is a defined benefits or cash balance arrangement relating to the member.

4

Part 1 of Schedule 28 gives the meaning of expressions used in the pension rules.