SCHEDULES

SCHEDULE 2Other amendments to do with Parts 1 and 2

26Pensions Act 2004 (c. 35)

1

Section 23 (freezing orders) is amended as follows.

2

In subsection (1), for “which is not a money purchase scheme” substitute “unless it is excluded by subsection (1A)”.

3

After that subsection insert—

1A

A scheme is excluded if—

a

all the benefits that may be provided under the scheme are money purchase benefits, and

b

the scheme does not provide for there to be a third party promise about the rate or amount of any benefit at a time before the benefit comes into payment (see subsection (10A)).

4

In subsection (2), for “such a scheme” substitute “a scheme to which this section applies”.

5

After subsection (10) insert—

10A

For the purposes of subsection (1A)(b), a scheme provides for there to be a third party promise if the scheme—

a

requires the promise to be obtained from a third party, or

b

provides for the member to be given the option of requiring a promise to be obtained from a third party (whether or not the option is subject to conditions).