Part 1U.K.The Pensions Regulator

Modifications etc. (not altering text)

New powers in respect of occupational and personal pension schemesE+W+S

18Pension liberation: interpretationE+W+S

(1)In this section and sections 19 to 21—

(a)“pension scheme” means an occupational pension scheme or a personal pension scheme,

(b)“deposit-taker” has the meaning given by subsections (8A) and (8B) of section 49 of the Pensions Act 1995, except that, for the purposes of this definition, subsection (8A)(c) of that section has effect with the omission of the words from “or” to the end,

(c)references to money liberated from a pension scheme are to be read in accordance with subsection (2),

(d)“liberated member”, in relation to money liberated from a pension scheme, means the member of the pension scheme who is referred to in subsection (2)(a), and

(e)“restraining order” means a restraining order under section 20.

(2)Money is to be taken to have been liberated from a pension scheme if—

(a)the money directly or indirectly represents an amount that, in respect of accrued rights [F1or an entitlement] of a member of a pension scheme, has been transferred out of the scheme in pursuance of—

(i)a relevant statutory provision, or

(ii)a provision of [F2the scheme rules], other than a relevant statutory provision,

(b)the trustees or managers of the scheme transferred the amount out of the scheme on the basis that a third party (“the liberator”) would secure that the amount was used in an authorised way,

(c)the amount has not been used in an authorised way, and

(d)the liberator has not secured, and is not likely to secure, that the amount will be used in an authorised way.

(3)The following are “relevant statutory provisions” for the purposes of subsection (2)—

[F3(a)section 94 of the Pension Schemes Act 1993 (right to cash equivalent under Chapter 1 of Part 4ZA of that Act);]

(b)section 101AB(1)(a) of that Act (right to cash transfer sum under [F4Chapter 2 of Part 4ZA] of that Act);

(c)section 101F(1) of that Act (right to cash equivalent of pension credit benefit).

(4)In subsection (2) “authorised way” means—

(a)where the amount concerned is transferred out of the scheme in pursuance of a provision mentioned in subsection (3)(a), a way specified in F5... section 95 of the Pension Schemes Act 1993;

(b)where that amount is transferred out in pursuance of the provision mentioned in subsection (3)(b), a way specified in section 101AE(2) of that Act;

(c)where that amount is transferred out in pursuance of the provision mentioned in subsection (3)(c), a way specified in subsection (2) or, as the case may be, subsection (3) of section 101F of that Act;

(d)where that amount is transferred out in pursuance of a provision of the kind mentioned in subsection (2)(a)(ii), a way that is authorised by [F6the scheme rules] for amounts transferred out in pursuance of that provision.

F7(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Words in s. 18(2)(a) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 35(2)(a) (with s. 87)

F2Words in s. 18(2)(a)(ii) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 35(2)(b) (with s. 87)

F3S. 18(3)(a) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 35(3)(a) (with s. 87)

F4Words in s. 18(3)(b) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 35(3)(b) (with s. 87)

F5Words in s. 18(4)(a) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), ss. 70(4), 89(3)(b) (with s. 87)

F6Words in s. 18(4)(d) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 35(4) (with s. 87)

F7S. 18(5) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 35(5) (with s. 87)

Commencement Information

I1S. 18(1)(2)(3)(a)(c)(4)(a)(c)(d)(5) in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7

I2S. 18(3)(b)(4)(b) in force at 6.4.2006 by S.I. 2006/560, art. 2(3), Sch. Pt. 3