C1C3C4C5C6C8C9C10C11C15C17C18C19C20C21Part 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)

C18

Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C19

Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C20

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C21

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(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, F11and if in the case of an annuity that day was before 6 April 2015, payment of the scheme pension F3or annuity may continue to be made (to any person) until the end of that period.

    F12If the member becomes entitled to an annuity on or after 6 April 2015 and the annuity is payable until the later of the member's death and the end of a term certain, payment of the annuity may continue to be made (to any person) until the end of that term.

    F13Except as provided by the preceding provisions of this rule, no 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 F15or a collective money purchase arrangement.

  • Pension rule 4

    F4No payment of pension other than—

    1. a

      a scheme pension,

    2. b

      a lifetime annuity, or

    3. c

      F5drawdown pension

    may be made in respect of a money purchase arrangement F16that is not a collective money purchase arrangement; but a scheme pension may only be paid if the member had an opportunity to select a lifetime annuity instead.

  • F6Pension rule 5

    The total amount of drawdown pension paid in each drawdown pension year F10from, or under a short-term annuity purchased using sums or assets out of, the member's drawdown pension fund in respect of a money purchase arrangement must not exceed F9150% of the basis amount for the drawdown pension .

  • F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 F8drawdown 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.

F143A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F143B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

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