PART 1Collective money purchase benefits
Members' rights
I1I225Transfer rights
1
Chapter 1 of Part 4ZA of the Pension Schemes Act 1993 (transfer rights: general) is amended as follows.
2
In section 93 (scope of Chapter 1)—
a
in subsection (7)
(crystallisation events), in paragraph (b), after “money purchase benefits” insert “
other than collective money purchase benefits
”
;
b
after subsection (10) insert—
10A
Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated as a separate scheme for the purposes of this Chapter.
3
In section 97 (calculation of cash equivalents), after subsection (3) insert—
3ZA
Where, in the case of an application from a member under section 95 that relates to money purchase benefits that are collective money purchase benefits, regulations under section 99(2)(c) provide for a period longer than 6 months, subsection (3)(b) is to be read as if the reference to 6 months were a reference to that longer period.
4
In section 99 (trustees' duties after exercise of option), in subsection (2) (period in which to carry out what the member requires)—
a
omit the “and” at the end of paragraph (a);
b
in paragraph (b), after “money purchase benefits” insert “
other than collective money purchase benefits
”
;
c
at the end of paragraph (b) insert
, and
c
in the case of an application which relates to money purchase benefits that are collective money purchase benefits, within 6 months beginning with the date of the application or such longer period beginning with that date as may be prescribed.
5
After section 99 insert—
99ATrustees' further duties: collective money purchase benefits
1
If the trustees receive an application under section 95 relating to money purchase benefits that are collective money purchase benefits—
a
they must give the member notice in writing of the cash equivalent that relates to those benefits, and
b
they must not without the written consent of the member enter into an agreement with a third party to use the member's cash equivalent in a way specified in section 95(2) before the end of the period mentioned in subsection (2).
2
The period referred to in subsection (1)(b) is—
a
the period of 3 weeks beginning with the day after the day on which the notice is given, or
b
such other period as may be specified in regulations.
3
Any action taken in contravention of subsection (1)(b) is void.
6
In section 100B (meaning of “scheme rules”: occupational pension schemes), in subsection (2)—
a
in paragraph (a), at the end insert—
xv
regulations made under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021;
xvi
sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;
b
in paragraph (b), at the end insert—
xii
sections 18(7)(b), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.