Winding up
Entitlement to death benefits treated as arising before commencement of winding up period8
1
This regulation applies where—
a
an occupational pension scheme to which section 73 of the 1995 Act applies is being wound up;
b
a member of the scheme died before the winding up began;
c
during the winding up period a person (“the beneficiary”) becomes entitled under the scheme rules to one or more benefits within paragraph (2) in respect of the member; and
d
the beneficiary could have become so entitled before the winding up period began had the trustees or managers of the scheme taken any action earlier.
2
The benefits are—
a
a pension of a kind permitted by the pension death benefit rules set out in section 167 of the Finance Act 2004 (pension death benefit rules); and
b
a lump sum of a kind permitted by the lump sum death benefit rule set out in section 168 of that Act (lump sum death benefit rule).
3
For the purposes of section 73B(6)(a) M1 (liabilities to which the winding up provisions do not apply)—
a
the beneficiary's entitlement to payment of so much of the pension (if any) as is attributable to the period between the member's death and the commencement of the winding up period; and
b
the beneficiary's entitlement to payment of the lump sum,
are to be treated as having arisen immediately before the commencement of the winding up period.
4
In the case of a scheme which begins to be wound up before 6th April 2006, this regulation has effect as if the benefits referred to in paragraph (2) were—
a
a pension payable to the deceased member's F1former spouse, former civil partner or dependant; and
b
a lump sum calculated by reference to the member's remuneration.