SCHEDULES

SCHEDULE 16Benefits under pension schemes

Part 1Changes to benefits available under pension schemes etc

Drawdown pension year and basis amount for drawdown pension year

8

1

Paragraph 10 of that Schedule (basis amount) is amended as follows.

2

For sub-paragraph (1) substitute—

A1

This paragraph applies in relation to drawdown pension years beginning on or before the member's 75th birthday.

1

Subject as follows, the period of three drawdown pension years beginning with the first drawdown pension year, and each succeeding period of three drawdown pension years, is a “reference period”.

1ZA

But the reference period in which the member reaches the age of 75 ends with the drawdown pension year in which the member reaches that age.

3

In sub-paragraph (1B)(b)—

a

after “subject to” insert “ sub-paragraph (1ZA) and ”;

b

for “five unsecured pension years” (in both places) substitute “ three drawdown pension years ”.

4

In sub-paragraphs (2) and (4)—

a

for “unsecured pension year” substitute “ drawdown pension year ”;

b

for “member's unsecured pension fund” substitute “ member's drawdown pension fund ”.

5

In sub-paragraph (5)—

a

for “an unsecured pension year” substitute “ a drawdown pension year ”;

b

for “that unsecured pension year” substitute “ that drawdown pension year ”.

6

In sub-paragraph (6)—

a

for “unsecured pension year” substitute “ drawdown pension year ”;

b

for “member's unsecured pension fund” substitute “ member's drawdown pension fund ”.

7

After sub-paragraph (6) insert—

6A

But sub-paragraph (5) does not apply where the operation of that sub-paragraph in relation to an additional fund designation during a drawdown pension year would reduce the basis amount for that drawdown pension year.

8

In sub-paragraph (7), for “member's unsecured pension fund” substitute “ member's drawdown pension fund ”.

9

In sub-paragraph (8), for “unsecured pension” substitute “ drawdown pension ”.

10

In sub-paragraph (8A), for “member's unsecured pension fund” substitute “ member's drawdown pension fund ”.

11

In sub-paragraph (9)(b), for “unsecured pension year” substitute “ drawdown pension year ”.

F112

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