SCHEDULES

SCHEDULE 5Pension schemes: collective money purchase benefits

PART 1Amendments of Part 4 of FA 2004

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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) ”;

F1b

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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, ”.