SCHEDULES
SCHEDULE 16Benefits under pension schemes
Part 1Changes to benefits available under pension schemes etc
Lump sums to be payable to persons aged 75 or over
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1
Paragraph 3A (recycling of pension commencement lump sums) is amended as follows.
2
In sub-paragraph (2), for “sub-paragraphs (3) and (4)” substitute “
sub-paragraphs (3) to (4A)
”
.
3
After sub-paragraph (4) insert—
4A
This paragraph does not apply if—
a
the member has reached the age of 75 when the contributions are paid as mentioned in sub-paragraph (2)(a), and
b
the contributions are not paid by an employer of the member.
4
For sub-paragraph (5) substitute—
5
The appropriate amount” is—
a
where the member becomes entitled to the lump sum before reaching the age of 75, so much of the amount crystallised by the benefit crystallisation event constituted by its payment (or the amount that would have been so crystallised but for paragraph 15A of Schedule 32) as does not exceed the amount of the member's lifetime allowance which is available on it;
b
where the member becomes entitled to the lump sum after reaching that age, the amount of the lump sum.