(1)A benefit provided under a pension scheme is a “qualifying benefit” if—
(a)the benefit is provided out of the available assets of the scheme,
(b)under the rules of the scheme, the rate or amount of the benefit is subject to periodic adjustments designed to achieve a balance between the value of the available assets of the scheme and the required amount, and
(c)the benefit is not of a description specified in regulations made by the Department.
(2)In subsection (1)—
“the available assets of the scheme” means all the assets that—
arise or derive from the payments made by or in respect of members of the scheme, and
are available (subject to any deductions that fall to be made in respect of administration charges) for the provision of benefits to or in respect of the members of the scheme collectively;
“the required amount” means the amount expected to be required, applying appropriate actuarial assumptions, for the purpose of providing benefits under the scheme to or in respect of the members of the scheme collectively.
(3)Regulations under subsection (1)(c) are subject to confirmatory procedure.
(4)Where a scheme is divided into sections, this section has effect as if—
(a)the reference to the scheme in subsection (1)(a) were a reference to a section of the scheme, and
(b)the other references to the scheme were references to that section of it.