Interim payments8

1

The prescribed liabilities referred to in section 186(1)(a)(ii) (liabilities the trustees or managers would not otherwise be able to meet) are—

a

any liability for payment of pensions which has arisen at the application date;

b

any liability which arises between the application date and the settlement date for payment of—

i

guaranteed minimum pensions;

ii

pensions, other than guaranteed minimum pensions, payable to persons reaching normal pension age;

iii

pensions payable to beneficiaries;

iv

ill-health retirement pensions;

F1v

costs, expenses and liabilities that arise as a consequence of the application;

c

any liability for payment of any monthly pension that would, but for the loss, have been payable in respect of money purchase benefits prior to the settlement date, and for these purposes the liability is the approximate monthly value of the pension;

d

payment of lump sums in connection with terminal illness, and for these purposes a person shall be regarded as suffering from a terminal illness where his life expectancy is less than one year.

2

Paragraph (1) shall not apply to any liability for payment of a lump sum derived from commutation of a pension.

3

Interim payments under section 186 shall be determined so as—

a

to take into account any—

i

interim payments made previously, where those payments were greater or smaller than the liabilities under paragraph (1) in respect of which those payments were made;

ii

amount received by an eligible scheme from the Board under section 139 (loans to pay scheme benefits);

b

not to exceed the amount required to enable the trustees or managers of the scheme, prior to the settlement date, to meet such liabilities as are specified in paragraph (1).

4

For the purpose of section 186(3) (recovery of interim payments) all or part of an interim payment may not be recovered where such recovery would cause any pensions in payment to be reduced.