Limits on payments in amounts “which would not prejudice Revenue approval”
This section has no associated Explanatory Memorandum
7.—(1) If the rules of an existing scheme provide for an absolute entitlement to—
(a)the making of a transfer, or
(b)the payment of a specified sum or rate of pension,
in an amount which would not prejudice approval of the scheme by the Inland Revenue or Her Majesty’s Revenue and Customs, paragraph (2) applies.
(2) If this paragraph applies the rules of the existing scheme shall be construed, in respect of the transitional period, as prohibiting the trustees or managers of the scheme from making payments to the extent that they would not have been authorised by the rules immediately before the commencement day.