The Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990

Disapplication of paragraphs 23 and 24 of the Schedule

4.—(1) Paragraphs 23 and 24 of the Schedule shall not apply as regards an employee in the circumstances prescribed in paragraph (2), (3) or (4) below.

(2) The circumstances prescribed in this paragraph are circumstances where the scheme of which the employee is a member is a simplified defined contribution scheme.

(3) The circumstances prescribed in this paragraph are circumstances where the amount of the employee’s total pension does not exceed £104 per annum or such higher amount as may be prescribed from time to time for the purposes of paragraph 15(4) of Schedule 16 to the Social Security Act 1973(1) or paragraph 15(4) of Schedule 3 to the Social Security Pensions (Northern Ireland) Order 1975(2).

(4) The circumstances prescribed in this paragraph are circumstances where–

(a) the rules of the scheme provide that the trustees or administrator of the scheme have power to commute, in whole or in part, the pension secured for an employee if he is in exceptional circumstances of serious ill health, and

(b) the trustees or administrator have exercised that power in relation to the employee.

(5) In this regulation–

• “simplified defined contribution scheme” means a relevant approved scheme which is approved by the Board by virtue of section 591 of the Income and Corporation Taxes Act 1988(3) by reference to limitations on–

  (a)

  the aggregate amount of contributions which may be paid by the member and his employer,

  (b)

  the maximum lump sum which may be provided under the scheme, and

  (c)

  the benefits payable on death which may be provided under the scheme;

• “total pension” means in relation to an employee the aggregate of all benefits to him (including the value in terms of an annual pension of any lump sum or sums received or receivable by him)–

  (a)

  from approved schemes established by his employer, and

  (b)

  from approved schemes to which his employer has not contributed and which, by virtue of contributions made by the employee while he was employed by that employer, provide benefits in addition to those provided by schemes to which his employer has contributed.

(1)

1973 c. 38.

(2)

S.I. 1975/1503 (N.I.15).

(3)

Section 591 was amended by the Finance Act 1988 (c. 39), section 146 and Schedule 13, paragraph 6.