SCHEDULES
SCHEDULE 5Pension schemes: collective money purchase benefits
PART 1Amendments of Part 4 of FA 2004
21
1
Schedule 29 (authorised lump sums - supplementary) is amended as follows.
2
In paragraph 1 (pension commencement lump sum)—
a
in sub-paragraph (1)(f), for “sub-paragraph (4)” substitute “
sub-paragraphs (4) and (4A)
”
;
b
after sub-paragraph (4) insert—
4A
A lump sum is an excluded lump sum if—
a
the pension in connection with which the member becomes entitled to it is income withdrawal, and
b
the sums or assets designated as available for the payment of the pension were sums or assets out of which benefits were provided under a collective money purchase arrangement.
3
In paragraph 2 (pension commencement lump sum), in sub-paragraph (6B), after “money purchase arrangement” insert “
that is not a collective money purchase arrangement
”
.
4
In paragraph 3 (pension commencement lump sum: definition of “the applicable amount” for the purposes of paragraph 2(5))—
a
in sub-paragraph (6), after “defined benefits arrangement” insert “
or a collective money purchase arrangement
”
;
b
in sub-paragraph (7A), after “money purchase arrangement” insert “
that is not a collective money purchase arrangement
”
.
5
In paragraph 4A (uncrystallised funds pension lump sum), in sub-paragraph (1)(a), after “money purchase arrangement” insert “
that is not a collective money purchase arrangement
”
.
6
In paragraph 7 (trivial commutation lump sum), in sub-paragraph (1)—
a
in paragraph (aa)—
i
after “defined benefits arrangement,” insert “
or in respect of a collective money purchase arrangement,
”
;
ii
after “under a money purchase arrangement” insert “
that is not a collective money purchase arrangement
”
;
iii
for “or partly in respect of the former and partly in respect of the latter” substitute “
or in respect of any combination of such arrangements and scheme pensions
”
;
b
in paragraph (d), after “defined benefits” insert “
, and any entitlement to collective money purchase benefits,
”
.