SCHEDULE 2DETERMINATION OF ANNUAL AND INITIAL PAYMENTS
Initial payments10
The preceding provisions of this Schedule shall apply for the purposes of determining the amount of an initial payment with the following modifications—
a
for paragraph 2, substitute—
F2Interim pension2
1
In this Schedule, “interim pension” means, subject to sub-paragraphs (2) and (3), the annual rate of pension that was in payment, is in payment, or is proposed to be paid, to a qualifying member, or to a survivor F9or surviving dependant of that qualifying member, from the assets of the qualifying pension scheme of which that qualifying member is, or was, a member—
a
on or after the time when the scheme began to wind up; but
b
before the day on which the scheme’s liabilities to or in respect of the qualifying member are, or were, discharged.
2
Where—
a
the annual rate of pension referred to in sub-paragraph (1)—
i
was or is in payment, and
ii
was determined following commutationF10, after the day on which the qualifying pension scheme began to be wound up, of some of the benefits deriving from the scheme to which that qualifying member is entitled,
that annual rate shall be redetermined on the basis that there was F3no such commutation; and
b
the annual rate of pension referred to in sub-paragraph (1) is proposed to be paid, that annual rate shall be determined on the basis that there has been no commutation of benefits F11after the day on which the scheme began to be wound up.
3
Where the scheme manager is satisfied that it is not possible for F14it to determine the annual rate of pension for the purposes of sub-paragraph (1) having regard to the information available to F14it, F13it shall determine the annual rate of pension on the basis of that portion of the assets of the qualifying pension scheme (of which the qualifying member is, or was, a member) provisionally allocated to the member by the trustees or managers, or survivor F9or surviving dependant of that member—
a
on or after the time when the scheme began to wind up; but
b
before the day on which the scheme’s liabilities in respect of the qualifying member are, or were, discharged,
and such other matters as the scheme manager considers relevant.
b
for “actual pension”, in each place, substitute “interim pension”
;
F4c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4ca
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1d
for “annual payment”, in each place that it occurs (except in paragraph 1(1)), substitute “initial payment”; and
F5e
in paragraph 5—
i
for sub-paragraph (3) substitute—
3
The initial payment payable to a survivor of a qualifying member shall be—F6
ii
F12for sub-paragraph (4) substitute—
4
In sub-paragraph (3), “expected pension” shall, subject to sub-paragraph (5), be the sum of—
a
the amount determined—
i
where the qualifying member was entitled to a present payment of a pension under the scheme rules on the day before the day on which the qualifying pension scheme began to be wound up, in accordance with paragraph 3(3); or
ii
where the qualifying member was an active member or a deferred member of a qualifying pension scheme on the day before the day on which the qualifying pension scheme began to be wound up, in accordance with paragraph 4(3); and
b
the product of the aggregate of any annual increases determined in accordance with paragraph 9 to which the qualifying member was entitled on the day before the day on which the qualifying member died divided by 0.9.