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.