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 dependantF1, or nominee or successor, 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 F2or a collective money purchase arrangement.

• Pension death benefit rule 3

  F3No payment of pension death benefit other than—

  1. (a)

     a dependants' scheme pension,

  2. (b)

     a dependants' annuity, or

  3. (c)

     F4dependants’ drawdown pension,

  may be made to F5a dependant in respect of a money purchase arrangement F6that is not a collective 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.

• F7Pension death benefit rule 3A

  No payment of pension death benefit, other than F8a nominees' annuity in respect of a money purchase arrangement or nominees' drawdown pension in respect of a money purchase arrangement, may be made to a nominee of the member.

• F7Pension death benefit rule 3B

  No payment of pension death benefit, other than F9a successors' annuity in respect of a money purchase arrangement or successors' drawdown pension in respect of a money purchase arrangement, may be made to a successor of the member.

• F10Pension death benefit rule 4

  The total amount of dependants’ drawdown pension paid to a dependant in each drawdown pension year F11from, or under a dependants' short-term annuity purchased using sums or assets out of, the dependant's drawdown pension fund in respect of a money purchase arrangement must not exceed F12150% of the basis amount for the drawdown pension year.

  F13...

• F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For the purposes of this Part, a person becomes entitled to dependants' income withdrawal, nominees' income withdrawal or successors' income withdrawal under a registered 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 (as the case may be) dependants' drawdown pension, nominees' drawdown pension or successors' drawdown pension.

F16In 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)F17, or a pension payable in respect of the member on the subsequent death of a dependant, nominee or successor of the member.

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

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

Part 2 of Schedule 28 gives the meaning of expressions used in the pension death benefit rules.