Amendment of Schedule 2 to the Additional Voluntary Contributions Regulations40.

(1)

Schedule 2 to the Additional Voluntary Contributions Regulations (pension sharing on divorce or nullity of marriage or, dissolution or nullity of a civil partnership) is amended in accordance with this regulation.

(2)

In paragraph 4 (pension credit benefit)—

(a)

at the end of sub-paragraph (1), add “(including, where appropriate, a pension commencement lump sum)”;

(b)

after sub-paragraph (5)(a), insert—

“(aa)

whether a pension commencement lump sum and a pension payable for life is to be provided;”;

(c)

for sub-paragraph (7), substitute—

“(7)

Upon receipt of a notice of election under sub-paragraph (5) the Secretary of State shall, as soon as reasonably practicable, realise the investments made under paragraph 2 and—

(a)

where sub-paragraph (5)(aa) does not apply, apply the proceeds to the purchase of an annuity from the authorised provider specified in the notice of election;

(b)

where that sub-paragraph does apply—

(i)

pay the percentage of the proceeds specified in the notice of election as a pension commencement lump sum, and

(ii)

apply the balance of those proceeds to the purchase of an annuity from the authorised provider specified in that notice,

and not otherwise.”.