C1C4C5C3C6Part 4Pension schemes etc
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 12
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26
C4C5C3C6Chapter 3Payments by registered pension schemes
Authorised member payments
I1C4C5C3C7C6167C4C5C3C6Pension death benefit rules
C21
These are the rules relating to the payment of pension death benefits by a registered pension scheme in respect of a member of the pension scheme (“the pension death benefit rules”).
Pension death benefit rule 1
No payment of pension death benefit may be made otherwise than to a dependant of the member.
Pension death benefit rule 2
No payment of pension death benefit other than a dependants' scheme pension may be made in respect of a defined benefits arrangement.
Pension death benefit rule 3
If a dependant has not reached the age of 75, no payment of pension death benefit to the dependant other than—
a
a dependants' scheme pension,
b
a dependants' annuity, or
c
dependants' unsecured pension,
may be made to the dependant in respect of a money purchase arrangement; but a dependants' scheme pension may only be paid if the member or dependant had an opportunity to select a dependants' annuity instead.
Pension death benefit rule 4
The total amount of dependants' unsecured pension paid to a dependant in each unsecured pension year in respect of a money purchase arrangement must not exceed 120% of the basis amount for the unsecured pension year.
Pension death benefit rule 5
If a dependant has reached the age of 75, no payment of pension other than—
a
a dependants' scheme pension,
b
a dependants' annuity, or
c
dependants' alternatively secured pension,
may be made to the dependant in respect of a money purchase arrangement; but a dependants' scheme pension may only be paid if the member or dependant had an opportunity to select a dependants' annuity instead.
Pension death benefit rule 6
The total amount of dependants' alternatively secured pension paid to a dependant in each alternatively secured pension year in respect of a money purchase arrangement must not exceed 70% of the basis amount for the alternatively secured pension year.
2
F1In this part “pension death benefit” means a pension payable on the death of the member (other than a member’s pension payable after the member’s death under pension rule 2: see section 165).
3
Part 2 of Schedule 28 gives the meaning of expressions used in the pension death benefit rules.
Pt. 4 modified (N.I.) (1.4.2006) by The Firemens Pension Scheme Order (Northern Ireland) 2006 (S.R. 2006/210), arts. 1(2), 103