Part 5Occupational and personal pension schemes: miscellaneous provisions
Contracting out
284Restrictions on commutation and age at which benefits may be received
1
For section 21(1) of the Pension Schemes Act 1993 (commutation of guaranteed minimum pensions) substitute—
1
A scheme may, in such circumstances and subject to such restrictions and conditions as may be prescribed, provide for the payment of a lump sum instead of a pension required to be provided by the scheme in accordance with section 13 or 17.
2
In section 17 of that Act (minimum pensions for widows and widowers), at the end insert—
8
Where—
a
a lump sum is paid to an earner under provisions included in a scheme by virtue of section 21(1), and
b
those provisions are of a prescribed description,
the earner shall be treated for the purposes of this section as having any guaranteed minimum under section 14 that he would have had but for that payment.
3
In section 28 of that Act (ways of giving effect to protected rights), in subsection (4) (provision of a lump sum)—
a
after “provision of a lump sum” insert “
, subject to such restrictions as may be prescribed,
”
,
b
omit paragraphs (a) and (b), and
c
at the end insert
; and
e
such other conditions as may be prescribed are satisfied.
4
Omit subsections (4A) and (4B) of that section.
5
In subsections (3) and (5) of that section, for “, (4) or (4A)” substitute “
or (4)
”
.
6
In subsection (8) of that section, in the definition of “the starting date” omit “, which must not be earlier than the member’s 60th birthday,”.
7
In section 29(1) of that Act (how a pension may comply with “the pension requirements” for the purposes of section 28)—
a
in paragraph (a), for the words from “date” to “or on” substitute “
date that is not later than the member’s 65th birthday, or on
”
, and
b
in paragraph (aa)(ii) omit the words from “and is not” to “75th birthday,”.