Term and reduction in the rate of scheme pensionU.K.
5.—[F1(1)] In a case within regulation [F23(1) or (2) or regulation 4,] a reduction of the original scheme pension is a prescribed circumstance for the purposes of paragraph 2(4) of Schedule 28 (scheme pension: satisfying conditions) if—
(a)the rate of the pension payable under the new scheme pension on the day on which the member becomes entitled to it is not less than the rate payable under the original scheme pension immediately before the original scheme pension ceased to be payable save to the extent that any reduction reflects the reasonable administration costs of the transfer of sums or assets; and
(b)where the new scheme pension is payable until the later of the member’s death and the end of a term certain, that term ends on or before the date on which the term certain under the original scheme pension would have ended.
[F3(2) In paragraph (1)(a) “administration costs” includes, in particular, payments of overseas transfer charge.]
Textual Amendments
F1Reg 5 renumbered as reg. 5(1) (with effect in relation to transfers made on or after 9.3.2017) by Finance Act 2017 (c. 10), Sch. 4 paras. 23(2), 25 (with Sch. 4 para. 23(4))
F2Words in reg. 5(1) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 24(12)
F3Reg. 5(2) inserted (with effect in relation to transfers made on or after 9.3.2017) by Finance Act 2017 (c. 10), Sch. 4 paras. 23(3), 25 (with Sch. 4 para. 23(4))
Commencement Information