http://www.legislation.gov.uk/uksi/2006/744/madeThe Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation) Order 2006TAXESKing's Printer of Acts of Parliament2019-11-28TAXESThis Order amends various Regulations as a consequence of changes to the tax system in relation to pension schemes made by Part 4 of the Finance Act 2004 (c. 12) which is due to come into force on 6th April 2006.Statutory Instruments2006 No. 744TAXESThe Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation) Order 2006Made14th March 2006Laid before House of Commons15th March 2006Coming into force6th April 2006

The Treasury makes the following Order in exercise of the powers conferred upon it by section 281(2) of the Finance Act 2004

2004 c. 12.

.

PART 1Preliminary
Citation and commencement1.

This Order may be cited as the Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation) Order 2006 and shall come into force on 6th April 2006.

PART 2Amendment of Subordinate Legislation applicable to Great Britain
Amendment of the Occupational Pension Schemes (Managers) Regulations 19862.(1)

Amend the Occupational Pension Schemes (Managers) Regulations 1986

S.I. 1986/1718, amended by S.I. 1988/476 and 1994/1062.

as follows.

(2)

In regulation 3

Regulation 3 was inserted by S.I. 1988/476.

(person to be treated as manager of scheme established outside the United Kingdom) for “administrator of” to the end of that regulation substitute “scheme administrator of the scheme for the purposes of section 270 of the Finance Act 2004 (meaning of “scheme administrator”).”.

Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations 19873.(1)

Amend the Personal Pension Schemes (Disclosure of Information) Regulations 1987

S.I. 1987/1110; relevant amending instruments are S.I. 1988/474, 1992/1531, 1993/519, 1994/1062, 1996/776 and 1435, 1997/786, 2000/2691, 2001/3649, 2002/1383 and 2005/2877.

as follows.

(2)

In regulation 2 (schemes to which regulations 3 to 6 do not apply) for “trust scheme which is” to the end of that regulation substitute “trust scheme which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act.”.

(3)

In Schedule 1 (basic information about the scheme) for paragraph 5A

Paragraph 5A was inserted by S.I. 1988/474.

substitute—5A.

Whether the scheme is registered under section 153 of the Finance Act 2004.

.

(4)

In Schedule 2 (information to be made available to individuals)—

(a)

in paragraph 1(a) for “section 649(2) of the Income and Corporation Taxes Act 1988” substitute “section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation)”; and

(b)

in paragraph 2A(3)(b)

Paragraph 2A was inserted by S.I. 2002/1383 and was amended by S.I. 2005/2877.

(i)

for head (ii) substitute—(ii)

the scheme maintains its tax registration under section 153 of the Finance Act 2004; and

; and

(ii)

in head (iii), for “the Commissioners of Inland Revenue” substitute “the Commissioners of Her Majesty’s Revenue and Customs”.

Amendment of the Personal Pension Schemes (Transfer Values) Regulations 19874.(1)

Amend the Personal Pension Schemes (Transfer Values) Regulations 1987

1987/1112, amended by S.I. 1988/474, 1988/1016, 1994/1062 and 1997/786.

as follows.

(2)

For regulation 2 (requirements to be satisfied) substitute—Requirements to be satisfied2.(1)

The prescribed requirements referred to in section 95(3)(a) and (b) of the Act (cash equivalent of member’s rights under a personal pension scheme to be used for acquiring transfer credits or rights under another scheme) are that—

(a)

the receiving scheme—

(i)

is registered under section 153 of the Finance Act 2004 (registration of pension schemes), or

(ii)

is a qualifying recognised overseas pension scheme as defined in section 169 of that Act (recognised transfers),

(b)

if the member’s cash equivalent (or any portion of it to be used under section 95(3)(a) or (b) of the Act) is or includes the cash equivalent of his protected rights then the receiving scheme is one to which a transfer payment in respect of protected rights may be made in accordance with regulation 2 of the Protected Rights (Transfer Payment) Regulations 1996.

(2)

Paragraph (1)(a)(i) shall not apply if the receiving scheme was immediately before the 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988

1988 c. 1.

(retirement annuities), unless the transfer is from a contract or scheme which was immediately before 6th April 2006 approved under Chapter III of Part XIV of that Act.

.

(3)

Omit regulation 2A

Regulation 2A was inserted by S.I. 1988/1016.

(use of cash equivalents for subscribing to self-employed pension arrangements).

Amendment of the Personal and Occupational Pension Schemes (Perpetuities) Regulations 19905.(1)

Amend the Personal and Occupational Pension Schemes (Perpetuities) Regulations 1990

S.I. 1990/1143, amended by S.I. 1994/1062 and 2001/943.

as follows.

(2)

For regulations 3 and 4 (occupational and personal pension schemes that qualify under section 69 of the Pension Schemes Act 1993) substitute—Occupational pension schemes to which section 163 of the Act applies3.(1)

An occupational pension scheme is a scheme to which section 163 of the Act (exemption of certain schemes from rule against perpetuities) applies at any time when it satisfies the requirements of any of paragraphs (2) to (6) of this regulation.

(2)

This paragraph requires the scheme to be a superannuation fund which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(b) and (3) of Schedule 36 to that Act (deemed registration of existing schemes).

(3)

This paragraph requires the scheme to be a superannuation fund to which section 615(3) of the Taxes Act (exemption from tax in respect of certain pensions) applies, or to which Her Majesty’s Revenue and Customs give relief from income tax under section 614(5) of the Taxes Act (exemptions and reliefs in respect of income from certain investments etc. of certain pension schemes).

(4)

This paragraph requires the scheme to be a trust scheme which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act.

(5)

This paragraph requires the scheme, or part of the scheme, to be either—

(a)

an occupational pension scheme which is—

(i)

registered under section 153 of the Finance Act 2004, or

(ii)

to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(a) of Schedule 36 to that Act.

(6)

This paragraph requires the scheme to be an occupational pension scheme and Her Majesty’s Revenue and Customs to be satisfied under section 153 of the Finance Act 2004, that the scheme corresponds to a scheme registered by Her Majesty’s Revenue and Customs for the purposes of Part 4 of that Act.

Personal pension schemes to which section 163 of the Act applies4.

A personal pension scheme is a scheme to which section 163 of the Act applies at any time when the scheme, or a part of the scheme, is either—

(a)

registered under section 153 of the Finance Act 2004; or

(b)

to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(g) of Schedule 36 to that Act.

.

Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 19916.(1)

Amend the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

S.I. 1991/167, to which there are amendments not relevant to these Regulations.

as follows.

(2)

Omit regulation 23 (refunds of additional voluntary contributions).

Amendment of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations 19967.(1)

Amend the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations 1996

S.I. 1996/775, to which there are amendments not relevant to these Regulations.

as follows.

(2)

For regulation 5 substitute—Conditions upon which appropriate policies of insurance may be commuted5.(1)

The requirements referred to in section 32A(2)(c) of the Act (policy of insurance appropriate where commutation conditional on satisfying prescribed requirements) are that the amount secured by the policy of insurance may only be commuted if the amount payable is authorised by section 164 of the Finance Act 2004 (authorised member payments) and satisfies the requirements of paragraph (2) or (3), together with—

(a)

paragraphs (4) to (6) if the lump sum payment qualifies as a pension commencement lump sum; or

(b)

paragraph (7) if the lump sum payment qualifies as a serious ill-health lump sum.

(2)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—

(a)

a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;

(b)

a serious ill-health lump sum for the purposes of paragraph 4 of that Part; or

(c)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part.

(3)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act.

(4)

This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.

(5)

The limit referred to in paragraph (4) must not exceed—

(a)

25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or

(b)

the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,

whichever is the lower.

(6)

For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.

(7)

Where—

(a)

under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;

(b)

on the date he qualifies for the payment, the member has a spouse or civil partner; and

(c)

the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,

then this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.

.

(3)

In regulation 6 (certain requirements applying to policies of insurance), in paragraph (1)(b), omit “, not being earlier than the age of 60,”.

Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 19968.(1)

Amend the Occupational Pension Schemes (Contracting-out) Regulations 1996

S.I. 1996/1172 amended by section 1(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), S.I. 1997/786, 1999/3198, 2000/2975, 2001/943, 2002/681, 2005/706, 2050 and 3377; there are other amending instruments but none is relevant.

as follows.

(2)

In regulation 1(2) (interpretation)—

(a)

in the definition of “administrator”, for “resident” (in the second place where that word appears) to the end of that definition substitute “who is, or the persons who are, appointed in accordance with section 270 of the Finance Act 2004 (meaning of “scheme administrator”);”;

(b)

omit the definition of “the Taxes Act”; and

(c)

in the appropriate alphabetical place insert—

“relevant statutory scheme” has the same meaning as in paragraph 1(1)(c) of Schedule 36 to the Finance Act 2004 (deemed registration of existing schemes);

.

(3)

In regulation 12 (special provision for holding companies and subsidiaries), omit paragraphs (1)(b)(ii), (2)(b)(ii) and (2)(c)(ii).

(4)

In regulation 19 (lump sum benefits and salary-related contracted-out schemes) for the words “pension except—” to the end of that regulation, substitute—pension except in accordance with—(a)

regulation 20 (payment of lump sum instead of a pension payable under a relevant scheme); or

(b)

regulation 60 (payment of a guaranteed minimum pension as a lump sum).

.

(5)

For regulation 20 (trivial commutation of benefits derived from section 9(2B) rights) substitute—Payment of a lump sum instead of a pension payable under a relevant scheme20.(1)

For the purposes of section 12C(1)(c) of the 1993 Act (regulations may prohibit or restrict the payment of a lump sum instead of a pension under a relevant scheme except in prescribed circumstances or on prescribed conditions), a relevant scheme may not provide for the payment of a lump sum instead of a pension unless the payment to be made is authorised under section 164 of the Finance Act 2004 (authorised member payments) and the payment is permitted either—

(a)

by the lump sum rule in section 166 of that Act (lump sum rule) and qualifies as—

(i)

a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;

(ii)

a serious ill-health lump sum for the purposes of paragraph 4 of that Part;

(iii)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part;

(iv)

a winding-up lump sum for the purposes of paragraph 10 of that Part; or

(b)

by the lump sum death benefit rule in section 168 of that Act (lump sum death benefit rule) and qualifies as—

(i)

a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or

(ii)

a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.

(2)

Where under the scheme—

(a)

an earner qualifies for a lump sum payment on the ground of serious ill-health; and

(b)

the earner’s widow, widower or surviving civil partner qualifies for a pension (“a survivor’s pension”),

the scheme must continue to include provision for a survivor’s pension notwithstanding the payment of a lump sum to the earner.

.

(6)

In regulation 21 (payable age in salary related contracted-out schemes) for “which” (in the second place where the word appears) to the end of that regulation substitute “which is permitted under section 164 of the Finance Act 2004 (authorised member payments).”.

(7)

In regulation 29 (schemes which cannot be certified under section 9(2B) of the Pension Schemes Act 1993), for paragraph (a) substitute—(a)

a scheme which is not registered under section 153 of the Finance Act 2004, unless it is, or was formerly, a relevant statutory scheme.

.

(8)

In regulation 40 (schemes which may not be contracted-out under section 9(3) of the Pension Schemes Act 1993) for “an exempt approved scheme” to the end of that regulation substitute “registered under section 153 of the Finance Act 2004.”.

(9)

In regulation 48 (special provision for overseas schemes), in paragraph (3) for “for the” to the end of that paragraph substitute “who is appointed in accordance with section 270 of the Finance Act 2004 (meaning of “scheme administrator”).”.

(10)

For regulation 60 (trivial commutation of guaranteed minimum pensions), substitute—Payment of a guaranteed minimum pension as a lump sum60.(1)

For the purposes of section 21(1) of the 1993 Act (payment of a lump sum instead of a pension in prescribed circumstances and subject to prescribed restrictions and conditions) the circumstances are where—

(a)

a guaranteed minimum pension has become payable; and

(b)

the payment of a lump sum is authorised under section 164 of the Finance Act 2004 and the payment is permitted either—

(i)

by the lump sum rule in section 166 of that Act and qualifies as—

(aa)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part; or

(bb)

a winding-up lump sum for the purposes of paragraph 10 of that Part; or

(ii)

by the lump sum death benefit rule in section 168 of that Act and qualifies as—

(aa)

a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or

(bb)

a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.

(2)

The condition in paragraph (1)(a) shall not apply in cases where the scheme is being wound up or an earner retires before pensionable age, and a premium under section 55(2) of the 1993 Act (contributions equivalent premium) has been paid or treated as paid under Part VI or the scheme has made the provisions mentioned in section 16(2) and (3) of the 1993 Act, provided that—

(a)

for the purposes of paragraph (1)(b), where the aggregate amount of the benefits which has accrued to the earner at the date of winding-up or, as the case may be, of his retirement, increased—

(i)

in accordance with section 16(2) and (3) of the 1993 Act, or

(ii)

in a case where that section 16(2) and (3) applies, to the amount that would have been payable at pensionable age,

that aggregate amount shall be treated as the amount of benefits currently payable to him under the scheme;

(b)

in the case of an earner who retires before normal pension age, commutation is not permitted before the date on which benefits become payable to the earner under the scheme’s early retirement provisions;

(c)

in cases where the earner is a member of more than one scheme relating to the same employment, all those schemes are being wound up or, as the case may be, he is treated by all those schemes as having retired and, in each case, all those schemes have paid a contributions equivalent premium or have made the provisions mentioned in section 16(2) and (3) of the 1993 Act.

.

Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations 19969.(1)

Amend the Contracting-out (Transfer and Transfer Payment) Regulations 1996

S.I. 1996/1462; relevant amending instruments are S.I. 1997/786 and 1999/3198.

as follows.

(2)

In regulation 1(2) (interpretation), in the definition of ““connected employer transfer” and “connected employer transfer payment”“ in sub-paragraph (b)—

(a)

in head (i) after the word “employers,” insert “or”;

(b)

in head (ii), for “1985, or” substitute “1985;”; and

(c)

omit head (iii).

Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 199610.(1)

Amend the Personal and Occupational Pension Schemes (Protected Rights) Regulations

S.I. 1996/1537; relevant amending instruments are S.I. 1997/786, 2002/681, 2005/704, 2050 and 3164.

as follows.

(2)

In regulation 3(f) (options under section 10(2) and (3) of the Pension Schemes Act 1993 for schemes to designate which rights are protected rights) for “having the meanings” to the end of that paragraph substitute “have the meanings given to them by section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation).”.

(3)

In regulation 8 (giving effect to protected rights by provision of a lump sum), for paragraph (1) substitute—(1)

For the purposes of section 28(4) of the 1993 Act (effect may be given to protected rights by the provision of a lump sum but subject to prescribed restrictions), the restrictions are that the payment must be authorised under section 164 of the Finance Act 2004 (authorised member payments) and either paragraph (1A) or (1B) must be satisfied, together with—

(a)

paragraphs (1C) to (1E) if the lump sum payment qualifies as a pension commencement lump sum; or

(b)

paragraph (1F) if the lump sum payment qualifies as a serious ill-health lump sum.

(1A)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—

(a)

a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;

(b)

a serious ill-health lump sum for the purposes of paragraph 4 of that Part;

(c)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part; or

(d)

a winding-up lump sum for the purposes of paragraph 10 of that Part.

(1B)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as—

(a)

a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or

(b)

a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.

(1C)

This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.

(1D)

The limit referred to in paragraph (1C) must not exceed—

(a)

25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or

(b)

the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,

whichever is the lower.

(1E)

For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.

(1F)

Where—

(a)

under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;

(b)

on the date he qualifies for the payment, the member has a spouse or civil partner; and

(c)

the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,

this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.

.

(4)

In regulation 10 (choice of insurance company by annuitant), in paragraph (a), in both sub-paragraph (i) and sub-paragraph (ii), omit “if that age is not less than 60 years”.

(5)

In regulation 12 (death of member before effect given to his protected rights), for paragraph (14), substitute—(14)

The lump sum referred to in paragraph (3) is one which—

(a)

is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; and

(b)

is paid to the widow, widower or surviving civil partner where—

(i)

effect is given to all the member’s protected rights by the payment of a lump sum; and

(ii)

either—

(aa)

the member, when he died, had no rights under the scheme other than his protected rights; or

(bb)

effect is given to all those of his rights under the scheme which are not protected rights by the payment of a lump sum.

.

(6)

For regulation 17 (tax-exemption and tax-approval) substitute—Tax registration17.

For the purposes of section 33 of the 1993 Act (tax requirements to prevail over certification requirements) tax-exemption and tax-approval mean tax registration under section 153 of the Finance Act 2004.

.

Amendment of the Occupational Pension Schemes (Indexation) Regulations 199611.(1)

Amend the Occupational Pension Schemes (Indexation) Regulations 1996

S.I. 1996/1679 as amended by S.I. 2005/704.

as follows.

(2)

In regulation 1(2) (interpretation), in the definition of “pension scheme” for “scheme, a personal pension scheme” to the end of that definition substitute “scheme, or a personal pension scheme registered under section 153 of the Finance Act 2004; and”.

Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 199612.(1)

Amend the Occupational Pension Schemes (Transfer Values) Regulations 1996

S.I. 1996/1847; the relevant amending instrument is S.I. 1997/786.

as follows.

(2)

In regulation 12 (requirements to be met by receiving schemes, annuities and arrangements)—

(a)

for sub-paragraph (d) of paragraph (1) substitute—(d)

if the scheme from which rights are transferred or from which a transfer payment is made is registered under section 153 of the Finance Act 2004, the scheme or personal pension scheme to which rights are transferred or to which a transfer payment in respect of rights is made is registered under that section (except a scheme which was immediately before 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988) or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004.

;

(b)

in sub-paragraph (b) of paragraph (2) for “of a kind” to the end of that sub-paragraph substitute “registered under section 153 of the Finance Act 2004, the annuity satisfies requirements of Her Majesty’s Revenue and Customs.”;

(c)

omit paragraph (3);

(d)

in paragraph (5)—

(i)

in sub-paragraph (a), after “arrangement” (where the word first appears) omit “or a self-employed pension arrangement”,

(ii)

in sub-paragraph (b), omit “it is an overseas arrangement and”, and

(iii)

in sub-paragraph (c), for “is of a kind described” to the end of that sub-paragraph substitute “is registered under section 153 of the Finance Act 2004 or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004.”, and

(e)

omit sub-paragraph (a) of paragraph (6).

Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations 199713.(1)

Amend the Occupational Pension Schemes (Discharge of Liability) Regulations 1997

S.I. 1997/784; relevant amending instruments are S.I. 1999/3198, 2005/704, 2050 and 3164.

as follows.

(2)

In regulation 4 (conditions on which policies of insurance and annuity contracts may be commuted)—

(a)

for paragraph (1) substitute—(1)

The requirements referred to in section 19(4)(c) of the 1993 Act (policy of insurance or annuity contract appropriate where commutation conditional on satisfying prescribed requirements) are that—

(a)

the amount secured by the policy of insurance or annuity contract does not exceed the amount for the time being permitted for a lump sum payment by—

(i)

the lump sum rule in section 166 of the Finance Act 2004 and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act; or

(ii)

the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or

(b)

subject to paragraph (2), the earner requests or consents to the amount secured by the policy of insurance or annuity contract being paid as a lump sum and that payment does not exceed the amount for the time being permitted for a lump sum payment by the lump sum rule in section 166 of that Act and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act.

;

(b)

in paragraph (2) omit “the earner’s and”;

(c)

in paragraph (3) omit sub-paragraph (a); and

(d)

omit paragraph (4).

(3)

In regulation 11 (conditions on which liability to provide pensions under a relevant scheme may be discharged), in paragraph (3)(d)(i), omit “has attained the age of 50 and”.

Amendment of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 199714.(1)

Amend the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc) Regulations 1997

S.I. 1997/785; relevant amending instruments are S.I. 1999/1849, 2002/681, 2005/438, 706 and 2877.

as follows.

(2)

In regulation 1(2) (interpretation)—

(a)

omit the definition of “approved scheme”;

(b)

in the appropriate alphabetical place, insert—

“normal minimum pension age” has the meaning given by section 279(1) of the Finance Act 2004;

“registered scheme” means—

(a)

a scheme registered under section 153 of the Finance Act 2004;

(b)

a scheme which was formerly registered under section 153 of that Act; or

(c)

a scheme which was formerly approved under section 590 or 591 of the Income and Corporation Taxes Act 1988 immediately before 6th April 2006.

.

(3)

In regulation 2 (commutation of a pension under an occupational pension scheme)—

(a)

for paragraph (1), substitute—(1)

For the purposes of section 91(5)(c)(ii) and (iii) of the 1995 Act (inalienability of occupational pension does not apply to commutation in prescribed circumstances) the prescribed circumstances are where—

(a)

any amount payable as a lump sum to—

(i)

the earner is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act; or

(ii)

the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or

(b)

the scheme is being wound up and the aggregate amount of all benefits payable as a lump sum to—

(i)

the earner is permitted by the lump sum rule in section 166 of that Act and qualifies as a winding-up lump sum for the purposes of paragraph 10 of Part 1 of Schedule 29 to that Act; or

(ii)

the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a winding-up lump sum death benefit for the purposes of paragraph 21 of Part 2 of Schedule 29 to that Act.

.

(b)

after paragraph (1A)

Paragraph 1A was inserted by S.I. 2002/681.

insert—(1B)

There are also prescribed for the purposes of—

(a)

section 91(5)(c)(ii) of the 1995 Act the circumstances where the payment of a lump sum to a person is permitted in accordance with any of paragraphs (a) to (e) of the lump sum death benefit rule in section 168 of the Finance Act 2004 (lump sum death benefit rule);

(b)

section 91(5)(c)(iii) of the 1995 Act the circumstances where a person has reached normal minimum pension age but has not retired from the employment of the employer in relation to the scheme, the payment of a lump sum to the person is permitted in accordance with paragraph (a) or (g) of the lump sum rule in section 166 of the Finance Act 2004 (lump sum rule).

;

(c)

omit paragraph (2);

(d)

in paragraph (3), for “paragraph (1)(a)(ii)”, substitute “paragraph (1)(b)”.

(4)

In regulation 8 (exemptions from the inalienability and forfeiture provisions)—

(a)

in paragraph (3), for the word “approved” substitute the word “registered”; and

(b)

after paragraph (5) add—(6)

Section 91(1)(a) of the 1995 Act (inalienability of occupational pension) shall not apply to a scheme to the extent that it would prevent the making of any arrangement to effect a surrender of excess rights, at the option of the person in question, for the purposes of paragraph 12 of Schedule 36 to the Finance Act 2004 (pension schemes etc: transitional provisions and savings).

.

Amendment of the Pensions on Divorce etc. (Provision of Information) Regulations 200015.(1)

Amend the Pensions on Divorce etc. (Provision of Information) Regulations 2000

S.I. 2000/1048; relevant amending instruments are S.I. 2000/2691 and 2005/2877.

as follows.

(2)

In regulation 1(2) (interpretation), in the definition of “retirement annuity contract” for “approved” to the end of that definition substitute “which is to be treated as becoming a registered pension scheme under 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act;”.

Amendment of the Pension Sharing (Valuation) Regulations 200016.(1)

Amend the Pension Sharing (Valuation) Regulations 2000

S.I. 2000/1052 the relevant amending instruments are S.I. 2000/2691, 2003/1727, 2005/2877 and 3377.

as follows.

(2)

In regulation 1(2) (interpretation), omit the definition of “relevant benefits”.

(3)

In regulation 2 (rights under a pension arrangement which are not shareable)—

(a)

in paragraph (1)(b), for head (iv) substitute—(iv)

dependants' income withdrawal within the meaning of paragraph 21 of Schedule 28 to the Finance Act 2004 (dependants' income withdrawal),

, and

(b)

for paragraph (1)(c) substitute—(c)

any rights which will result in the payment of a benefit which is to be provided solely by reason of the—

(i)

disablement, or

(ii)

death,

due to an accident suffered by a person occurring during his pensionable service.

.

Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations 200017.(1)

Amend the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000

S.I. 2000/1053; the relevant amending instrument is S.I. 2000/2691 and 2005/2877.

as follows.

(2)

In regulation 6 (discharge of liability in respect of a pension credit following the death of the person entitled to the pension credit), in paragraph (2), for “Part XIV of the Income and Corporation Taxes Act 1988” substitute “Part 4 of the Finance Act 2004 (pension schemes etc)”.

(3)

In regulation 8 (unfunded occupational pension schemes other than public service pension schemes)—

(a)

in paragraph (1)—

(i)

in sub-paragraph (a), for the words “an approved” substitute “a registered”,

(ii)

in sub-paragraph (b), for the word “unapproved” substitute “unregistered”, and

(b)

for paragraph (3) substitute—(3)

In this regulation—

(a)

“registered scheme” means an occupational pension scheme which is registered under section 153 of the Finance Act 2004; and

(b)

“unregistered scheme” means an occupational pension scheme which is not a registered scheme under section 153 of the Finance Act 2004.

.

(4)

In regulation 15(5) (disqualification as a destination for pension credit – annuity contracts and insurance policies)—

(a)

in sub-paragraph (a) omit “, and the aggregate of those benefits does not exceed £260 per annum”; and

(b)

for sub-paragraph (b) substitute—(b)

any lump sum payment—

(i)

is permitted by the lump sum rule in section 166 of the Finance Act 2004; and

(ii)

qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act; and

.

Amendment of the Pension Sharing (Pension Credit Benefit) Regulations 200018.(1)

Amend the Pension Sharing (Pension Credit Benefit) Regulations 2000

S.I. 2000/1054, to which there are amendments not relevant to these Regulations.

as follows.

(2)

In regulation 3 (commutation of the whole of pension credit benefit)—

(a)

in paragraph (1) omit “paragraphs (3) and (4) and”;

(b)

for paragraph (2), substitute—(2)

The circumstances described in this paragraph are that the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and either—

(a)

qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act; or

(b)

qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of that Schedule.

; and

(c)

omit paragraphs (3) and (4).

(3)

In regulation 4 (commutation of part of pension credit benefit)—

(a)

in sub-paragraph (b) of paragraph (1), for “approval or” to the end of that sub-paragraph substitute “the registration or continuing registration of the scheme under section 153 of the Finance Act 2004.”; and

(b)

omit paragraph (4).

(4)

In regulation 21 (requirements of other pension arrangements)—

(a)

in sub-paragraph (c) of paragraph (1), omit “any of sub-paragraphs (a) to (e) of”, and

(b)

for paragraph (2) substitute—(2)

The kind of scheme mentioned in paragraph (1)(c) is a scheme which is registered under section 153 of the Finance Act 2004.

.

Amendment of the Pension Sharing (Safeguarded Rights) Regulations 200019.(1)

Amend the Pension Sharing (Safeguarded Rights) Regulations 2000

S.I. 2000/1055; relevant amending instruments are S.I. 2000/2691 and 2005/2877.

as follows.

(2)

In regulation 9 (ways of giving effect to safeguarded rights - salary related schemes) for paragraph (9) substitute—(9)

For the purposes of paragraph (7)—

(a)

the benefits secured for a beneficiary suffering from serious ill-health shall become payable only if the payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act;

(b)

“beneficiary” means a member of a salary related contracted-out scheme, in respect of whose safeguarded rights the trustees or managers of that scheme have discharged their liability by entering into an insurance policy or an annuity contract;

(c)

“incapacity” means physical or mental deterioration which is sufficiently serious to prevent a person from following his normal employment or which seriously impairs his earning capacity.

.

(3)

For regulation 10 (payable age in salary related contracted-out schemes) substitute—Payable age in salary related contracted-out schemes10.

In respect of pension credit benefit arising out of safeguarded rights, schemes must provide for pension credit benefit to be paid by reference to an age which is equal for men and women and which, in the case of a scheme which is registered under section 153 of the Finance Act 2004, is permitted under the rules of that scheme in accordance with that registration.

.

Amendment of the Stakeholder Pension Schemes Regulations 200020.(1)

Amend the Stakeholder Pension Schemes Regulations 2000

S.I. 2000/1403 as amended by S.I. 2001/104, 2001/934, 2001/3649, 2002/1383, 2002/1555, 2002/2098 and 2005/577.

as follows.

(2)

In regulation 1 (citation, commencement and interpretation)—

(a)

In paragraph (3)—

(i)

in the definition of “pension arrangement” for paragraph (c) substitute—(c)

a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004;

; and

(ii)

for the definition of “tax relief” substitute—

“tax relief” has the meaning given by Chapter 4 of Part 4 of the Finance Act 2004 (registered pension schemes: tax reliefs and exemptions);

; and

(b)

in paragraph (6), for ““tax-exemption”“ to the end of that paragraph substitute ““tax-registration” and “tax-registered” mean registration or, as the case may be, registered under section 153 of the Finance Act 2004.”.

(3)

In regulation 3 (requirements applying to all stakeholder pension schemes as regards instruments establishing such schemes), in paragraphs (5A)

Paragraph 5A was inserted by S.I. 2001/104 and amended by S.I. 2001/934.

and (5B)

Paragraph 5B was inserted by S.I. 2001/934.

, for “has tax-exemption or tax-approval” in both places substitute “maintains its tax-registration”.

(4)

In sub-paragraph (b) of regulation 6(4) (procedure for discharging rights on winding-up)—

(a)

for “tax-approval or tax-exemption” substitute “tax-registration”, and

(b)

for “approval or exemption” substitute “registration”.

(5)

In regulation 17 (restrictions on contributions)—

(a)

in paragraph (3), for “section 639” to “(tax reliefs: member’s contributions)” substitute “section 192 of the Finance Act 2004 (relief at source)”;

(b)

in paragraph (4) for “tax-exemption” to the end of that paragraph substitute “tax-registration”; and

(c)

after paragraph (4) insert—(4A)

the trustees or manager of a stakeholder pension scheme may refuse to accept any contribution by, or on behalf of any member of the scheme who—

(a)

has not given the declaration specified in regulation 5(2) of the Registered Pension Schemes (Relief at Source) Regulations 2005

S.I. 2005/3448.

(declaration of entitlement to tax relief in respect of net contributions); or

(b)

is not a relevant UK individual for the purposes of section 189 of the Finance Act 2004 (relevant UK individual) for the tax year in respect of which the contribution is made.

.

(6)

In regulation 18 (disclosure of information to members)—

(a)

for sub-paragraph (n) of paragraph (5) substitute—(n)

any amount paid to the member by way of income withdrawal or dependants' income withdrawal as defined in paragraph 7 or, as the case may be, 21 of Schedule 28 to the Finance Act 2004 (income withdrawal or dependants' income withdrawal);

;

(b)

in sub-paragraph (b) of paragraph (5D)—

(i)

for head (ii) substitute—(ii)

the scheme maintains its tax registration under section 153 of the Finance Act 2004; and

; and

(ii)

in head (iii), for “Commissioners of Inland Revenue” substitute “Commissioners of Her Majesty’s Revenue and Customs”; and

(c)

for paragraph (10) substitute—(10)

For the purposes of this regulation “member” shall include a dependant making income withdrawals from the scheme in accordance with paragraph 21 of Schedule 28 to the Finance Act 2004.

.

(7)

In regulation 25 (disclosure of information to relevant employees), in paragraph (2)(e)(i) for the “tax-exemption or tax-approval” substitute “tax-registration”.

Amendment of the Occupational and Personal Pension Schemes (Bankruptcy) (No. 2) Regulations 200221.(1)

Amend the Occupational and Personal Pension Schemes (Bankruptcy) (No. 2) Regulations 2002

S.I. 2002/836.

as follows.

(2)

In regulation 1(4) (interpretation)—

(a)

in sub-paragraph (a)—

(i)

for the definition of “relevant benefits” substitute—

“relevant benefits” means any pension, lump sum, gratuity or other like benefit which is, or is to be, provided—

(a)

by reason, or in anticipation, of retirement,

(b)

by reason of death,

(c)

by reason of a pension sharing order or provision,

(d)

in connection with past service,

(e)

after retirement or death,

(f)

in anticipation of, or in connection with, any change in the nature of the service of the employee in question,

but does not include any benefit which is to be provided solely by reason of the disablement or death due to an accident suffered by a person during his pensionable service;;

;

(ii)

in the appropriate alphabetical place insert—

“the 2003 Act” means the Income Tax (Earnings and Pensions) Act 2003

2003 c. 1.

;

; and

(b)

in paragraph (b), in the appropriate alphabetical place insert—

“employer-financed retirement benefits scheme” has the same meaning given by section 393A of the 2003 Act

Section 393A was inserted by the Finance Act 2004.

(employer-financed retirement benefits scheme);

.

(3)

In regulation 2 (prescribed pension arrangements)—

(a)

in paragraph (1)—

(i)

in head (i) of sub-paragraph (a), for “foreign emoluments which” to the end of that head substitute “earnings which have been allowed as a deduction under paragraph 51 of Schedule 36 to the Finance Act 2004 (individuals with pre-commencement entitlement to corresponding relief),”,

(ii)

for sub-paragraph (b) substitute—(b)

made with a scheme which is an occupational pension scheme—

(i)

registered under section 153 of the Finance Act 2004, or

(ii)

which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with Part 1 of Schedule 36 to that Act,

,

(iii)

for sub-paragraph (c) substitute—(c)

to which section 308A of the 2003 Act (exemption of contributions to overseas pension scheme) applies;

;

(iv)

in sub-paragraph (d), for “section 614, 615 or 616 of the Taxes Act” to the end of that sub-paragraph substitute “section 614 or 615 of the Taxes Act (exemptions and reliefs in respect of income from investments etc of certain pension schemes and other overseas pensions), or section 629, 630 or 643 of the 2003 Act (pre-1973 pensions paid under the Overseas Pensions Act 1973 and Malawi, Trinidad and Tobago and Zambia government pensions),”,

(v)

omit sub-paragraph (f),

(b)

for paragraph (2) substitute—(2)

Paragraph (1)(e) above does not apply to any employer-financed retirement benefits scheme arrangement which has been provided to an employee as part of or in addition to any pension arrangement referred to in paragraph (1)(e) above.

; and

(c)

omit sub-paragraphs (a) and (d) of paragraph (3).

(4)

In regulation 3 (unapproved pension arrangements), for paragraph (1) substitute—(1)

For the purposes of section 12 of the 1999 Act (effect of bankruptcy on pension rights: unapproved arrangements), a pension arrangement falling within—

(a)

section 157 of the Finance Act 2004 (de-registration);

(b)

paragraphs 52 to 57 of Schedule 36 to that Act; or

(c)

section 393A of the 2003 Act,

shall be an “unapproved pension arrangement” if it satisfies the conditions specified in paragraph (2) below.

.

(5)

In head (ii) of sub-paragraph (a) of regulation 5(1) (exclusion orders), for “3(1)(a) or (b)” to the end of that head substitute “3(1)(a) above, the date, if later than that referred to in head (i) above, on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004; or”.

(6)

In sub-paragraph (b) of regulation 6(1) (qualifying agreements), for “3(1)(a) or (b)” to the end of that sub-paragraph substitute “3(1)(a) above, the date, if later than that referred to in sub-paragraph (a) above, on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004.”.

(7)

In regulation 12 (unapproved pension arrangements), for paragraph (1) substitute—(1)

For the purposes of section 12 of the 1999 Act, a pension arrangement falling within—

(a)

section 157 of the Finance Act 2004;

(b)

paragraphs 52 to 57 of Schedule 36 to that Act; or

(c)

section 393A of the 2003 Act,

shall be an “unapproved pension arrangement” if it satisfies the conditions specified in paragraph (2) below.

.

(8)

In head (ii) of sub-paragraph (a) of regulation 14(1) (exclusion orders), for “12(1)(a) or (b)” to the end of that head substitute “12(1)(a) above, the date, if later than that referred to in head (i) above, on which any rights of the debtor vest in the permanent trustee or judicial factor on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004; or”.

(9)

In sub-paragraph (b) of regulation 15(1) (qualifying agreements), for “12(1)(a) or (b)” to the end of that sub-paragraph substitute “12(1)(a) above, the date, if later than that referred to in sub-paragraph (a) above, on which any rights of the debtor vest in the permanent trustee or judicial factor on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004.”.

PART 3Amendment of Subordinate Legislation applicable to Northern Ireland
Amendment of the Occupational Pension Schemes (Managers) Regulations (Northern Ireland) 198622.(1)

Amend the Occupational Pension Schemes (Managers) Regulations (Northern Ireland) 1986

S.R. (NI) 1986 No. 320, amended by S.R. (NI) 1988 No. 109 and S.R. (NI) 1994 No. 300.

as follows.

(2)

In regulation 3

Regulation 3 was inserted by regulation 7(2) of S.R. (NI) 1988 No. 109 and was amended by paragraph 7 of Schedule 2 to S.R. (NI) 1994 No. 300.

(person to be treated as manager of schemes established outside the United Kingdom) for “administrator of” to the end of that regulation substitute “scheme administrator of the scheme for the purposes of section 270 of the Finance Act 2004 (meaning of “scheme administrator”).”.

Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 198723.(1)

Amend the Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987

S.R. (NI) 1987 No. 288; relevant amending Regulations are S.R. (NI) 1988 No. 107, S.R. (NI) 1992 No. 304, S.R. (NI) 1994 No. 300, S.R. (NI) 2002 No. 410 and S.R. (NI) 2005 No. 536.

as follows.

(2)

In regulation 2 (schemes to which regulations 3 to 6 do not apply) for “trust scheme which is” to the end of that regulation substitute “trust scheme which is treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act (deemed registration of existing schemes).”.

(3)

In Schedule 1 (basic information about the scheme) for paragraph 5A

Paragraph 5A was inserted by regulation 6(d) of S.R. (NI) 1988 No. 107.

substitute—5A.

Whether the scheme is registered under section 153 of the Finance Act 2004.

.

(4)

In Schedule 2 (information to be made available to individuals)—

(a)

in paragraph 1(a)

Paragraph 1(a) was amended by regulation 6(e) of S.R. (NI) 1988 No. 107.

for “section 649(2) of the Income and Corporation Taxes Act 1988

1988 c. 1.

” substitute “section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation)”; and

(b)

in paragraph 2A(3)(b)

Paragraph 2A was inserted by regulation 2(4) of S.R. (NI) 2002 No. 410 and was amended by paragraph 1 of Schedule 2 to S.R. (NI) 2005 No. 536.

(i)

for sub-head (ii) substitute—(ii)

the scheme maintains its tax registration under section 153 of the Finance Act 2004, and

; and

(ii)

in sub-head (iii) for “the Commissioners of Inland Revenue” substitute “the Commissioners of Her Majesty’s Revenue and Customs”.

Amendment of the Personal Pension Schemes (Transfer Values) Regulations (Northern Ireland) 198724.(1)

Amend the Personal Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1987

S.R. (NI) 1987 No. 290; relevant amending Regulations are S.R. (NI) 1988 Nos. 107 and 214, S.R. (NI) 1994 No. 300 and S.R. (NI) 1997 No. 160.

as follows.

(2)

For regulation 2 (requirements to be satisfied) substitute—Requirements to be satisfied2.(1)

The prescribed requirements referred to in section 91(3)(a) and (b) (cash equivalent of member’s rights under a personal pension scheme to be used for acquiring transfer credits or rights under another scheme) are that—

(a)

the receiving scheme—

(i)

is registered under section 153 of the Finance Act 2004, or

(ii)

is a qualifying recognised overseas pension scheme as defined in section 169 of that Act (recognised transfers),

(b)

if the member’s cash equivalent (or any portion of it to be used under section 91(3)(a) or (b)) is or includes the cash equivalent of his protected rights then the receiving scheme is one to which a transfer payment in respect of protected rights may be made in accordance with regulation 2 of the Protected Rights (Transfer Payment) Regulations (Northern Ireland) 1996

S.R. (NI) 1996 No. 509; relevant amending Regulations are S.R. (NI) 2005 No. 467.

(general).

(2)

Paragraph 1(a)(i) shall not apply if the receiving scheme was immediately before the 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988

1988 c. 1.

(retirement annuities), unless the transfer is from a contract or scheme which was immediately before the 6th April 2006 approved under Chapter III of Part XIV of that Act.

.

(3)

Omit regulation 2A

Regulation 2A was inserted by regulation 3(c) of S.R. (NI) 1988 No. 214.

(use of cash equivalents for subscribing to self-employed pension arrangements).

Amendment of the Personal and Occupational Pension Schemes (Perpetuities) Regulations (Northern Ireland) 199025.(1)

Amend the Personal and Occupational Pension Schemes (Perpetuities) Regulations (Northern Ireland) 1990

S.R. (NI) 1990 No. 204; relevant amending Regulations are S.R. (NI) 1994 No. 300 and S.R. (NI) 1996 No. 620.

as follows.

(2)

For regulations 3 and 4 (occupational and personal pension schemes that qualify under Article 65) substitute—Occupational pension schemes to which section 159 of the Act applies3.(1)

An occupational pension scheme is a scheme to which section 159 of the Act (exemption of certain schemes from rule against perpetuities) applies at any time when it satisfies the requirements of any of paragraphs (2) to (6).

(2)

This paragraph requires the scheme to be a superannuation fund which is treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(b) and (3) of Schedule 36 to that Act (deemed registration of existing schemes).

(3)

This paragraph requires the scheme to be a superannuation fund to which section 615(3) (exemption from tax in respect of certain pensions) applies, or to which Her Majesty’s Revenue and Customs give relief from income tax under section 614(5) (exemptions and reliefs in respect of income from certain investments etc. of certain pension schemes).

(4)

This paragraph requires the scheme to be a trust scheme which is treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act.

(5)

This paragraph requires the scheme, or part of the scheme, to be either—

(a)

an occupational pension scheme which is—

(i)

registered under section 153 of the Finance Act 2004, or

(ii)

to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(a) of Schedule 36 to that Act.

(6)

This paragraph requires the scheme to be an occupational pension scheme and Her Majesty’s Revenue and Customs to be satisfied under section 153 of the Finance Act 2004, that the scheme corresponds to a scheme registered by Her Majesty’s Revenue and Customs for the purposes of Part 4 of that Act.

Personal pension schemes to which section 159 of the Act applies4.

A personal pension scheme is a scheme to which section 159 of the Act applies at any time when the scheme, or a part of the scheme, is either—

(a)

registered under section 153 of the Finance Act 2004, or

(b)

to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(g) of Schedule 36 to that Act.

.

Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 199126.(1)

Amend the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991

S.R. (NI) 1991 No. 37 to which there are amendments not relevant to these Regulations.

as follows.

(2)

Omit regulation 23 (refunds of additional voluntary contributions).

Amendment of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 199627.(1)

Amend the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 1996

S.R. (NI) 1996 No. 94; relevant amending Regulations are S.R. (NI) 2005 No. 433.

as follows.

(2)

For regulation 5 (conditions on which appropriate policies of insurance may be commuted), substitute—Conditions upon which appropriate policies of insurance may be commuted5.(1)

The requirements referred to in section 28A(2)(c) of the Act

1993 c. 49; section 28A was inserted by Article 143(1) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)).

(policy of insurance appropriate where commutation conditional on satisfying prescribed requirements) are that the amount secured by the policy of insurance may only be commuted if the amount payable is authorised by section 164 of the Finance Act 2004 (authorised member payments) and satisfies the requirements of paragraph (2) or (3), together with—

(a)

paragraphs (4) to (6) if the lump sum payment qualifies as a pension commencement lump sum, or

(b)

paragraph (7) if the lump sum payment qualifies as a serious ill-health lump sum.

(2)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—

(a)

a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;

(b)

a serious ill-health lump sum for the purposes of paragraph 4 of that Part, or

(c)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part.

(3)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act.

(4)

This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.

(5)

The limit referred to in paragraph (4) must not exceed—

(a)

25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or

(b)

the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,

whichever is the lower.

(6)

For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.

(7)

Where—

(a)

under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;

(b)

on the date he qualifies for the payment, the member has a spouse or civil partner, and

(c)

the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,

then this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.

.

(3)

In regulation 6 (other requirements applying to policies of insurance), in paragraph (1)(b) omit “, not being earlier than the age of 60,”.

Amendment of the Occupational Pension Schemes (Contracting-out) (Northern Ireland) Regulations 199628.(1)

Amend the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

S.R. (NI) 1996 No. 493; relevant amending Regulations are S.R. (NI) 1997 No. 160, S.R. (NI) 1999 No. 486, S.R. (NI) 2000 No. 336, S.R. (NI) 2001 No. 118, S.R. (NI) 2002 No. 109 and S.R. (NI) 2005 Nos. 171 and 433.

as follows.

(2)

In regulation 1(2) (interpretation)—

(a)

in the definition of “administrator” for “resident” (in the second place where that word appears) to the end of that definition substitute “who is, or the persons who are, appointed in accordance with section 270 of the Finance Act 2004 (meaning of “scheme administrator”);”;

(b)

omit the definition of “the Taxes Act”; and

(c)

in the appropriate alphabetical places insert—

“the 2004 Act” means the Finance Act 2004

2004 c. 12.

; and

“relevant statutory scheme” has the same meaning as in paragraph 1(1)(c) Schedule 36(1)(c) to the 2004 Act (deemed registration of existing schemes);

.

(3)

In regulation 12 (special provision for holding companies and subsidiaries) omit paragraphs (1)(b)(ii), (2)(b)(ii) and (2)(c)(ii).

(4)

In regulation 19 (lump sum benefits and salary-related contracted-out schemes) for the words “pension except—” to the end of that regulation, substitute—“pension except in accordance with—(a)

regulation 20 (payment of a lump sum instead of a pension payable under a relevant scheme), or

(b)

regulation 60 (payment of a guaranteed minimum pension as a lump sum).

.

(5)

For regulation 20 (trivial commutation of benefits derived from section 5(2B) rights), substitute—Payment of a lump sum instead of a pension payable under a relevant scheme20.(1)

For the purposes of section 8C(1)(c) of the Act

1993 c. 49; section 8C was inserted by Article 133(5) of the Pensions (Northern Ireland) Order 1995.

(regulations may prohibit or restrict the payment of a lump sum instead of a pension under a relevant scheme except in prescribed circumstances or on prescribed conditions), a relevant scheme may not provide for the payment of a lump sum instead of a pension unless the payment to be made is authorised under section 164 of the 2004 Act (authorised member payments) and the payment is permitted either—

(a)

by the lump sum rule in section 166 of that Act and qualifies as—

(i)

a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;

(ii)

a serious ill-health lump sum for the purposes of paragraph 4 of that Part;

(iii)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part;

(iv)

a winding-up lump sum for the purposes of paragraph 10 of that Part, or

(b)

by the lump sum death benefit rule in section 168 of that Act and qualifies as—

(i)

a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or

(ii)

a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.

(2)

Where under the scheme—

(a)

an earner qualifies for a lump sum payment on the ground of serious ill-health, and

(b)

the earner’s widow, widower or surviving civil partner qualifies for a pension (“a survivor’s pension”),

the scheme must continue to include provision for a survivor’s pension notwithstanding the payment of a lump sum to the earner.

.

(6)

In regulation 21 (payable age in salary related contracted-out schemes) for “which” (in the second place where the word appears) to the end of that regulation substitute “which is permitted under section 164 of the 2004 Act.”.

(7)

In regulation 29 (schemes which cannot be certified under section 5(2B) of the Act), for paragraph (a) substitute—(a)

a scheme which is not registered under section 153 of the 2004 Act, unless it is, or was formerly, a relevant statutory scheme.

.

(8)

In regulation 40 (schemes which may not be contracted out under section 5(3) of the Act) for “an exempt approved scheme” to the end of that regulation substitute “registered under section 153 of the 2004 Act.”.

(9)

In regulation 48 (special provision for overseas schemes), in paragraph (3) for “for the” to the end of that paragraph substitute “who is appointed in accordance with section 270 of the 2004 Act (meaning of “scheme administrator”).”.

(10)

For regulation 60 (trivial commutation of guaranteed minimum pensions), substitute—Payment of a guaranteed minimum pension as a lump sum60.(1)

For the purposes of section 17(1) of the Act

1993 c. 49; section 17(1) is substituted by Article 261(1) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)).

(payment of a lump sum instead of a pension in prescribed circumstances and subject to prescribed restrictions and conditions) the circumstances are where—

(a)

a guaranteed minimum pension has become payable, and

(b)

the payment of a lump sum is authorised under section 164 of the 2004 Act and the payment is permitted either—

(i)

by the lump sum rule in section 166 of that Act and qualifies as—

(aa)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part, or

(bb)

a winding-up lump sum for the purposes of paragraph 10 of that Part, or

(ii)

by the lump sum death benefit rule in section 168 of that Act and qualifies as—

(aa)

a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or

(bb)

a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.

(2)

The condition in paragraph (1)(a) shall not apply in cases where the scheme is being wound up or an earner retires before pensionable age, and a premium under section 51(2) of the Act

Section 51(2) was substituted by Article 138(1) of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 7(2) of Schedule 2 to the Welfare Reform and Pensions Act 1999 (c. 30).

(contributions equivalent premium) has been paid or treated as paid under Part VI or the scheme has made the provisions mentioned in section 12(2) and (3) of the Act

Section 12(3) was amended by paragraph 21(a) of Schedule 3 to the Pensions (Northern Ireland) Order 1995.

(revaluation of earnings factors for purposes of section 10: early leavers, etc.), provided that—

(a)

for the purposes of paragraph (1)(b), where the aggregate amount of the benefits which has accrued to the earner at the date of winding-up or, as the case may be, of his retirement, increased—

(i)

in accordance with section 12 (2) and (3) of the 1993 Act, or

(ii)

in a case where that section 12 (2) and (3) applies, to the amount that would have been payable at pensionable age,

that aggregate amount shall be treated as the amount of benefits currently payable to him under the scheme;

(b)

in the case of an earner who retires before normal pension age, commutation is not permitted before the date on which benefits become payable to the earner under the scheme’s early retirement provisions;

(c)

in cases where the earner is a member of more than one scheme relating to the same employment, all those schemes are being wound up or, as the case may be, he is treated by all those schemes as having retired and, in each case, all those schemes have paid a contributions equivalent premium or have made the provisions mentioned in section 12(2) and (3) of the Act.

.

Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 199629.(1)

Amend the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996

S.R. (NI) 1996 No. 618 to which there are amendments not relevant to these Regulations.

as follows.

(2)

In regulation 1(2) (interpretation) in the definition of ““connected employer transfer” and “connected employer transfer payment”“ in paragraph (b)—

(a)

in sub-paragraph (i) after the word “employers,” insert “or”;

(b)

in sub-paragraph (ii) for “1986, or” substitute “1986;”, and

(c)

omit sub-paragraph (iii).

Amendment of the Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 199630.(1)

Amend the Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996

S.R. (NI) 1996 No. 619; relevant amending Regulations are S.R. (NI) 1997 No. 160.

as follows.

(2)

In regulation 12 (requirements to be met by receiving schemes, annuities and arrangements)—

(a)

for sub-paragraph (d) of paragraph (1) substitute—(d)

if the scheme from which rights are transferred or from which a transfer payment is made is registered under section 153 of the Finance Act 2004, the scheme or personal pension scheme to which rights are transferred or to which a transfer payment in respect of rights is made is registered under that section (except a scheme which was immediately before 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988) or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004 (recognised transfers).

;

(b)

in sub-paragraph (b) of paragraph (2) for “of a kind” to the end of that sub-paragraph substitute “registered under section 153 of the Finance Act 2004, the annuity satisfies requirements of Her Majesty’s Revenue and Customs.”;

(c)

omit paragraph (3);

(d)

in paragraph (5)—

(i)

in sub-paragraph (a) after “arrangement” (where the word first appears) omit “or a self-employed pension arrangement”,

(ii)

in sub-paragraph (b) omit “it is an overseas arrangement and”, and

(iii)

in sub-paragraph (c) for “is of a kind described” to the end of that sub-paragraph substitute “is registered under section 153 of the Finance Act 2004 or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004.”, and

(e)

omit sub-paragraph (a) of paragraph (6).

Amendment of the Occupational Pension Schemes (Indexation) Regulations (Northern Ireland) 199731.(1)

Amend the Occupational Pension Schemes (Indexation) Regulations (Northern Ireland) 1997

S.R. (NI) 1997 No. 8 to which there are amendments not relevant to these Regulations.

as follows.

(2)

In regulation 1(2) (interpretation), in the definition of “pension scheme” for “scheme, a personal pension scheme” to the end of that definition substitute “scheme, or a personal pension scheme registered under section 153 of the Finance Act 2004;”.

Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 199732.(1)

Amend the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997

S.R. (NI) 1997 No. 56; relevant amending Regulations are S.R. (NI) 1997 No. 160, S.R. (NI) 2002 No. 109 and S.R. (NI) 2005 No. 433.

as follows.

(2)

In paragraph (f) of regulation 3 (options under section 6(2) and (3) of the Pension Schemes (Northern Ireland) Act 1993 for schemes to designate which rights are protected rights) for “having the meanings” to the end of that paragraph substitute “have the meanings given to them by section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation).”.

(3)

In regulation 8 (giving effect to protected rights by provision of a lump sum) for paragraph (1), substitute—(1)

For the purposes of section 24(4)(b)

1993 c. 49; section 24(4) was amended by paragraph 3(2) of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4 (N.I.)). Section 24(4) is also amended by Article 261(3) of the Pensions (Northern Ireland) Order 2005.

(effect may be given to protected rights by the provision of a lump sum but subject to prescribed restrictions), the restrictions are that the payment must be authorised under section 164 of the Finance Act 2004 (authorised member payments) and either paragraph (1A) or (1B) must be satisfied, together with—

(a)

paragraphs (1C) to (1E) if the lump sum payment qualifies as a pension commencement lump sum, or

(b)

paragraph (1F) if the lump sum payment qualifies as a serious ill-health lump sum.

(1A)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—

(a)

a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;

(b)

a serious ill-health lump sum for the purposes of paragraph 4 of that Part;

(c)

a trivial commutation lump sum for the purposes of paragraph 7 of that Part, or

(d)

a winding-up lump sum for the purposes of paragraph 10 of that Part.

(1B)

This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as—

(a)

a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or

(b)

a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.

(1C)

This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.

(1D)

The limit referred to in paragraph (1C) must not exceed—

(a)

25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or

(b)

the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,

whichever is the lower.

(1E)

For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.

(1F)

Where—

(a)

under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;

(b)

on the date he qualifies for the payment, the member has a spouse or civil partner, and

(c)

the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,

this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.

.

(4)

In regulation 10 (choice of insurance company by annuitant), in paragraph (a), in both sub-paragraph (i) and sub-paragraph (ii), omit “if that age is not less than 60 years”.

(5)

In regulation 12 (death of member before effect given to his protected rights), for paragraph (14), substitute—(14)

The lump sum referred to in paragraph (3) is one which—

(a)

is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, and

(b)

is paid to the widow, widower or surviving civil partner where—

(i)

effect is given to all the member’s protected rights by the payment of a lump sum, and

(ii)

either—

(aa)

the member, when he died, had no rights under the scheme other than his protected rights, or

(bb)

effect is given to all those of his rights under the scheme which are not protected rights by the payment of a lump sum.

.

(6)

For regulation 17 (tax-exemption and tax-approval) substitute—Tax registration17.

For the purposes of section 29 (tax requirements to prevail over certification requirements) “tax-exemption” and “tax-approval” mean tax registration under section 153 of the Finance Act 2004.

.

Amendment of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 199733.(1)

Amend the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997

S.R. (NI) 1997 No. 153; relevant amending Regulations are S.R. (NI) 1999 No. 309 and S.R. (NI) 2002 No. 109.

as follows.

(2)

In regulation 1(2) (interpretation)—

(a)

omit the definition of “approved scheme”;

(b)

in the appropriate alphabetical places, insert—

“the 2004 Act” means the Finance Act 2004

2004 c. 12.

;

;

“normal minimum pension age” has the meaning given by section 279(1) of the 2004 Act;

; and

“registered scheme” means—

(a)

a scheme registered under section 153 of the 2004 Act;

(b)

a scheme which was formerly registered under section 153 of that Act, or

(c)

a scheme which was formerly approved under section 590 or 591 of the Income and Corporation Taxes Act 1988 immediately before the 6th April 2006.

.

(3)

In regulation 2 (commutation of a pension under an occupational pension scheme)—

(a)

for paragraph (1), substitute—(1)

For the purposes of Article 89(5)(c)(ii) and (iii)

S.I. 1995/3213 (N.I. 22); Article 89 was amended by paragraph 46 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)).

(inalienability of occupational pension does not apply to commutation in prescribed circumstances) the prescribed circumstances are where—

(a)

any amount payable as a lump sum to—

(i)

the earner is permitted by the lump sum rule in section 166 of the 2004 Act and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act, or

(ii)

the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or

(b)

the scheme is being wound up and the aggregate amount of all benefits payable as a lump sum to—

(i)

the earner is permitted by the lump sum rule in section 166 of that Act and qualifies as a winding-up lump sum for the purposes of paragraph 10 of Part 1 of Schedule 29 to that Act, or

(ii)

the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a winding-up lump sum death benefit for the purposes of paragraph 21 of Part 2 of Schedule 29 to that Act.

.

(b)

after paragraph (1A)

Paragraph (1A) was inserted by regulation 8 of S.R. (NI) 2002 No. 109.

insert—(1B)

There are also prescribed for the purposes of—

(a)

Article 89(5)(c)(ii) the circumstances where the payment of a lump sum to a person is permitted in accordance with any of paragraphs (a) to (e) of the lump sum death benefit rule in section 168 of the 2004 Act;

(b)

Article 89(5)(c)(iii) the circumstances where a person has reached normal minimum pension age but has not retired from the employment of the employer in relation to the scheme, the payment of a lump sum to the person is permitted in accordance with paragraph (a) or (g) of the lump sum rule in section 166 of the 2004 Act.

;

(c)

omit paragraph (2);

(d)

in paragraph (3) for “paragraph (1)(a)(ii)” substitute “paragraph (1)(b)”.

(4)

In regulation 8 (exemptions from the inalienability and forfeiture provisions)—

(a)

in paragraph (3) for the word “approved” substitute the word “registered”; and

(b)

after paragraph (5) add—(6)

Article 89(1)(a) (inalienability of occupational pension) shall not apply to a scheme to the extent that it would prevent the making of any arrangement to effect a surrender of excess rights, at the option of the person in question, for the purposes of paragraph 12 of Schedule 36 to the 2004 Act (pension schemes etc: transitional provisions and savings).

.

Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations (Northern Ireland) 199734.(1)

Amend the Occupational Pension Schemes (Discharge of Liability) Regulations (Northern Ireland) 1997

S.R. (NI) 1997 No. 159; relevant amending regulations are S.R. (NI) 1999 No. 486 and S.R. (NI) 2005 Nos. 170 and 433.

as follows.

(2)

In regulation 4 (conditions on which policies of insurance and annuity contracts may be commuted)—

(a)

for paragraph (1) substitute—(1)

The requirements referred to in section 15(4)(c) (policy of insurance or annuity contract appropriate where commutation conditional on satisfying prescribed requirements) are that—

(a)

the amount secured by the policy of insurance or annuity contract does not exceed the amount for the time being permitted for a lump sum payment by—

(i)

the lump sum rule in section 166 of the Finance Act 2004 and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act, or

(ii)

the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or

(b)

subject to paragraph (2), the earner requests or consents to the amount secured by the policy of insurance or annuity contract being paid as a lump sum and that payment does not exceed the amount for the time being permitted for a lump sum payment by the lump sum rule in section 166 of that Act and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act.

;

(b)

in paragraph (2) omit “the earner’s and”;

(c)

in paragraph (3) omit sub-paragraph (a), and

(d)

omit paragraph (4).

(3)

In regulation 11 (conditions on which liability to provide pensions under a relevant scheme may be discharged), in paragraph (3)(d)(i), omit “has attained the age of 50 and”.

Amendment of the Pensions on Divorce etc. (Provision of Information) (Northern Ireland) Regulations 200035.(1)

Amend the Pensions on Divorce etc. (Provision of Information) Regulations (Northern Ireland) 2000

S.R. (NI) 2000 No. 142 to which there are amendments not relevant to these Regulations.

as follows.

(2)

In regulation 1(2) (interpretation) in the definition of “retirement annuity contract” for “approved” to the end of that definition substitute “which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act (deemed registration of existing schemes);”.

Amendment of the Pension Sharing (Valuation) Regulations (Northern Ireland) 200036.(1)

Amend the Pension Sharing (Valuation) Regulations (Northern Ireland) 2000

S.R. (NI) 2000 No. 144; relevant amending Regulations are S.R. (NI) 2005 No. 536.

as follows.

(2)

In regulation 1(2) (interpretation) omit the definition of “relevant benefits”.

(3)

In regulation 2 (rights under a pension arrangement which are not shareable)—

(a)

in paragraph (1)(b) for head (iv) substitute—(iv)

dependants' income withdrawal within the meaning of paragraph 21 of Schedule 28 to the Finance Act 2004 (dependants' income withdrawal),

, and

(b)

for paragraph (1)(c) substitute—(c)

any rights which will result in the payment of a benefit which is to be provided solely by reason of the—

(i)

disablement, or

(ii)

death,

due to an accident suffered by a person occurring during his pensionable service.

.

Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 200037.(1)

Amend the Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000

S.R. (NI) 2000 No. 145; relevant amending Regulations are S.R. (NI) 2000 No. 335.

as follows.

(2)

In regulation 6 (discharge of liability in respect of a pension credit following the death of the person entitled to a pension credit), in paragraph (2), for “Part XIV of the Income and Corporation Taxes Act 1988” substitute “Part 4 of the Finance Act 2004 (pension schemes etc)”.

(3)

In regulation 8 (unfunded occupational pension schemes other than public service pension schemes)—

(a)

in paragraph (1)—

(i)

in sub-paragraph (a) for the words “an approved” substitute “a registered”,

(ii)

in sub-paragraph (b) for the word “unapproved” substitute “unregistered”, and

(b)

for paragraph (3) substitute—(3)

In this regulation—

(a)

“registered scheme” means an occupational pension scheme which is registered under section 153 of the Finance Act 2004, and

(b)

“unregistered scheme” means an occupational pension scheme which is not a registered scheme under section 153 of that Act.

.

(4)

In regulation 15(5) (disqualification as a destination for pension credit-annuity contracts and insurance policies)—

(a)

in sub-paragraph (a) omit “, and the aggregate of those benefits does not exceed £260 per annum”; and

(b)

for sub-paragraph (b) substitute—(b)

any lump sum payment—

(i)

is permitted by the lump sum rule in section 166 of the Finance Act 2004, and

(ii)

qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act, and

.

Amendment of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 200038.(1)

Amend the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000

S.R. (NI) 2000 No. 146 to which there are amendments not relevant to these Regulations.

as follows.

(2)

In regulation 3 (commutation of the whole of pension credit benefit)—

(a)

in paragraph (1) omit “paragraphs (3) and (4) and”;

(b)

for paragraph (2), substitute—(2)

The circumstances described in this paragraph are that the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and either—

(a)

qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act, or

(b)

qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of that Schedule.

; and

(c)

omit paragraphs (3) and (4).

(3)

In regulation 4 (commutation of part of pension credit benefit)—

(a)

in sub-paragraph (b) of paragraph (1) for “approval or” to the end of that sub-paragraph substitute “the registration or continuing registration of the scheme under section 153 of the Finance Act 2004.”, and

(b)

omit paragraph (4).

(4)

In regulation 21 (requirements of other pension arrangements)—

(a)

in sub-paragraph (c) of paragraph (1) omit “any of sub-paragraphs (a) to (e) of”, and

(b)

for paragraph (2) substitute—(2)

The kind of scheme mentioned in paragraph (1)(c) is a scheme which is registered under section 153 of the Finance Act 2004.

.

Amendment of the Pension Sharing (Safeguarded Rights) Regulations (Northern Ireland) 200039.(1)

Amend the Pension Sharing (Safeguarded Rights) Regulations (Northern Ireland) 2000

S.R. (NI) 2000 No. 147 to which there are amendments not relevant to these Regulations.

as follows.

(2)

In regulation 9 (ways of giving effect to safeguarded rights – salary related schemes) for paragraph (9) substitute—(9)

For the purposes of paragraph (7)—

(a)

the benefits secured for a beneficiary suffering from serious ill-health shall become payable only if the payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act;

(b)

“beneficiary” means a member of a salary related contracted-out scheme, in respect of whose safeguarded rights the trustees or managers of that scheme have discharged their liability by entering into an insurance policy or an annuity contract;

(c)

“incapacity” means physical or mental deterioration which is sufficiently serious to prevent a person from following his normal employment or which seriously impairs his earning capacity.

.

(3)

For regulation 10 (payable age in salary related contracted-out schemes) substitute—Payable age in salary related contracted-out schemes10.

In respect of pension credit benefit arising out of safeguarded rights, schemes must provide for pension credit benefit to be paid by reference to an age which is equal for men and women and which, in the case of a scheme which is registered under section 153 of the Finance Act 2004, is permitted under the rules of that scheme in accordance with that registration.

.

Amendment of the Stakeholder Pension Schemes Regulations (Northern Ireland) 200040.(1)

Amend the Stakeholder Pension Schemes Regulations (Northern Ireland) 2000

S.R. (NI) 2000 No. 262; relevant amending Regulations are S.R. (NI) 2001 Nos. 13 and 119 and S.R. (NI) 2002 No. 410.

as follows.

(2)

In regulation 1 (citation, commencement and interpretation)—

(a)

In paragraph (3)—

(i)

in the definition of “pension arrangement” for paragraph (c) substitute—(c)

a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004,

, and

(ii)

for the definition of “tax relief” substitute—

“tax relief has the meaning given by Chapter 4 of Part 4 of the Finance Act 2004 (registered pension schemes: tax reliefs and exemptions);

, and

(b)

in paragraph (9) for ““tax-exemption”“ to the end of that paragraph substitute ““tax-registration” and “tax-registered” mean registration or, as the case may be, registered under section 153 of the Finance Act 2004.”.

(3)

In regulation 3 (requirements applying to all stakeholder pension schemes as regards instruments establishing such schemes), in paragraphs (5A)

Paragraph (5A) was inserted by regulation 3(3) of S.R. (NI) 2001 No. 13 and was amended by regulation 3(3) of S.R. (NI) 2001 No. 119.

and (5B)

Paragraph (5B) was inserted by regulation 3(4) of S.R. (NI) 2001 No. 119.

, for “has tax-exemption or tax-approval” in both places substitute “maintains its tax-registration”.

(4)

In sub-paragraph (b) of regulation 6(4) (procedure for discharging rights on winding-up)—

(a)

for “tax-approval or tax-exemption” substitute “tax-registration”, and

(b)

for “approval or exemption” substitute “registration”.

(5)

In regulation 17 (restrictions on contributions)—

(a)

in paragraph (3), for “section 639” to “(tax reliefs: member’s contributions)” substitute “section 192 of the Finance Act 2004 (relief at source)”;

(b)

in paragraph (4) for “tax-exemption” to the end of that paragraph substitute “tax-registration”, and

(c)

after paragraph (4) insert—(4A)

The trustees or manager of a stakeholder pension scheme may refuse to accept any contribution by, or on behalf of any member of the scheme who—

(a)

has not given the declaration specified in regulation 5(2) of the Registered Pension Schemes (Relief at Source) Regulations 2005

S.I. 2005/3448.

(declaration of entitlement to tax relief in respect of net contributions), or

(b)

is not a relevant UK individual for the purposes of section 189 of the Finance Act 2004 for the tax year in respect of which the contribution is made.

.

(6)

In regulation 18 (disclosure of information to members)—

(a)

for sub-paragraph (n) of paragraph (5) substitute—(n)

any amount paid to the member by way of income withdrawal or dependants' income withdrawal as defined in paragraph 7 or, as the case may be, 21 of Schedule 28 to the Finance Act 2004 (income withdrawal or dependants' income withdrawal);

;

(b)

in sub-paragraph (b) of paragraph (5D)

Paragraph (5D) was inserted by regulation 4(3)(b) of S.R. (NI) 2002 No. 410.

(i)

for head (ii) substitute—(ii)

the scheme maintains its tax registration under section 153 of the Finance Act 2004, and

, and

(ii)

in head (iii) for “the Inland Revenue” substitute “Her Majesty’s Revenue and Customs”, and

(c)

for paragraph (10)

Paragraph (10) was numbered by regulation 13(9) of S.R. (NI) 2001 No. 119.

substitute—(10)

For the purposes of this regulation “member” shall include a dependant making income withdrawals from the scheme in accordance with paragraph 21 of Schedule 28 to the Finance Act 2004.

.

(7)

In regulation 25(2)(e)(i)

Sub-paragraph (e) was inserted by regulation 17(3)(d) of S.R. (NI) 2001 No. 119.

(disclosure of information to relevant employees) for the words “tax-exemption or tax-approval” substitute “tax-registration”.

Amendment of the Occupational and Personal Pension Schemes (Bankruptcy) Regulations (Northern Ireland) 200241.(1)

Amend the Occupational and Personal Pension Schemes (Bankruptcy) Regulations (Northern Ireland) 2002

S.R. (NI) 2002 No. 127, to which there are amendments not relevant to these Regulations.

as follows.

(2)

In regulation 1(2) (interpretation)—

(a)

for the definition of “relevant benefits” substitute—

“relevant benefits” means any pension, lump sum, gratuity or other like benefit which is, or is to be, provided—

(a)

by reason, or in anticipation, of retirement,

(b)

by reason of death,

(c)

by reason of a pension sharing order or provision,

(d)

in connection with past service,

(e)

after retirement or death,

(f)

in anticipation of, or in connection with, any change in the nature of the service of the employee in question,

but does not include any benefit which is to be provided solely by reason of the disablement or death due to an accident suffered by a person during his pensionable service;

; and

(b)

in the appropriate alphabetical places insert—

“the 2003 Act” means the Income Tax (Earnings and Pensions) Act 2003

2003 c. 1.

;

;

“the 2004 Act” means the Finance Act 2004

2004 c. 12.

;

;

“employer-financed retirement benefit scheme” has the same meaning given by section 393A of the 2003 Act

Section 393A was inserted by section 249(3) of the Finance Act 2004.

;

.

(3)

In regulation 2 (prescribed pension arrangements)—

(a)

in paragraph (1)—

(i)

in head (i) of sub-paragraph (a) for “foreign emoluments which” to the end of that head substitute “earnings which have been allowed as a deduction under paragraph 51 of Schedule 36 to the 2004 Act (individuals with pre-commencement entitlement to corresponding relief),”,

(ii)

for sub-paragraph (b) substitute—(b)

made with a scheme which is an occupational pension scheme—

(i)

registered under section 153 of the 2004 Act, or

(ii)

which is to be treated as becoming a registered pension scheme under section 153(9) of the 2004 Act in accordance with Part 1 of Schedule 36 to that Act (pre-commencement pension schemes);

,

(iii)

for sub-paragraph (c) substitute—(c)

to which section 308A of the 2003 Act

Section 308A was inserted by paragraph 3 of Schedule 33 to the Finance Act 2004.

(exemption of contributions to overseas pension scheme) applies;

;

(iv)

in sub-paragraph (d) for “section 614, 615 or 616 of the Taxes Act” to the end of that sub-paragraph substitute “section 614 or 615 of the Taxes Act (exemptions and reliefs in respect of income from investments etc. of certain pension schemes and other overseas pensions), or section 629, 630 or 643 of the 2003 Act (pre-1973 pensions paid under the Overseas Pensions Act 1973 and Malawi, Trinidad and Tobago and Zambia government pensions),”,

(v)

omit sub-paragraph (f),

(b)

for paragraph (2) substitute—(2)

Paragraph (1)(e) does not apply to any employer-financed retirement benefits scheme arrangement which has been provided to an employee as part of or in addition to any pension arrangement referred to in paragraph (1)(e).

, and

(c)

omit sub-paragraphs (a) and (d) of paragraph (3).

(4)

In regulation 3 (unapproved pension arrangements) for paragraph (1) substitute—(1)

For the purposes of Article 13 of the 1999 Order

S.I. 1999/3147 (N.I. 11).

(effect of bankruptcy on pension rights: unapproved arrangements), a pension arrangement falling within—

(a)

section 157 of the 2004 Act (de-registration);

(b)

paragraphs 52 to 57 of Schedule 36 to that Act, or

(c)

section 393A of the 2003 Act,

shall be an “unapproved pension arrangement” if it satisfies the conditions specified in paragraph (2).

.

(5)

In head (ii) of sub-paragraph (a) of regulation 5(1) (exclusion orders) for “3(1)(a) or (b)” to the end of that head substitute “3(1)(a), the date, if later than that referred to in head (i), on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the 2004 Act, or”.

(6)

In sub-paragraph (b) of regulation 6(1) (qualifying agreements), for “3(1)(a) or (b)” to the end of that sub-paragraph substitute “3(1)(a), the date, if later than that referred to in sub-paragraph (a), on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the 2004 Act.”.

Tom WatsonVernon CoakerTwo of the Lords Commissioners of Her Majesty’s Treasury14th March 2006(This note is not part of the Order)

This Order amends various Regulations as a consequence of changes to the tax system in relation to pension schemes made by Part 4 of the Finance Act 2004 (c. 12) which is due to come into force on 6th April 2006.

This Order applies to Great Britain and Northern Ireland. It makes provision for the tax registration of occupational and personal pension schemes and prescribes the circumstances in which an occupational pension may be commuted.

Part 2 of this Order, which consists of articles 2 to 21, applies to Great Britain.

Article 2 amends the Occupational Pension Schemes (Managers) Regulations 1986 (S.I. 1986/1718) to prescribe the person who is to be treated as the manager of a scheme established outside the United Kingdom.

Article 3 amends the Personal Pension Schemes (Disclosure of Information) Regulations 1987 (S.I. 1987/1110) to make provision for the registration of schemes.

Article 4 amends the Personal Pension Schemes (Transfer Values) Regulations 1987 (S.I. 1987/1112) to prescribe that a member’s transfer credits and rights must be acquired under a registered scheme.

Article 5 amends the Personal and Occupational Pension Schemes (Perpetuities) Regulations 1990 (S.I. 1990/1143) to substitute new regulations 3 and 4. The new regulations prescribe the schemes excepted from the rules of law relating to perpetuities.

Article 6 amends the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (S.I. 1991/167) so as to revoke regulation 23.

Article 7 substitutes a new regulation 5 in the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations 1996 (S.I. 1996/775) enabling the amount secured by a policy of insurance in respect of a member’s protected rights to be commuted where the payment satisfies requirements contained in the Finance Act 2004 for lump sum payments by pension schemes.

Article 8 amends the Occupational Pension Schemes (Contracting-out) Regulations 1996 (S.I. 1996/1172) to prescribe that an unregistered scheme cannot be a contracted-out scheme or certified as a salary-related contracted-out scheme. Also, it enables benefits which are payable under an occupational pension scheme to be commuted into lump sum payments in certain circumstances.

Article 9 amends the interpretation provision of the Contracting-out (Transfer and Transfer Payment) Regulations 1996 (S.I. 1996/1462).

Article 10 amends the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (S.I. 1996/1537) to substitute new definitions of “employee share” and “grossed-up equivalent”. The amendment further enables a member’s protected rights to be commuted into a lump sum payment if the payment satisfies the requirements for lump sum payments by pension schemes contained in the Finance Act 2004.

Article 11 amends the interpretation provision of the Occupational Pension Schemes (Indexation) Regulations 1996 (S.I. 1996/1679).

Article 12 amends the Occupational Pension Schemes (Transfer Values) Regulations 1996 (S.I. 1996/1847) to provide for registered schemes and prescribe the requirement an annuity must satisfy.

Article 13 amends the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 (S.I. 1997/784) and prescribes the requirements which must be satisfied before the amount secured by a policy of insurance or annuity contract may be commuted.

Article 14 amends the Occupational Pension Schemes (Assignment, Forfeiture and Bankruptcy etc.) Regulations 1997 (S.I. 1997/785) to modify the interpretation provision and prescribe a further exception from the inalienability provisions and the circumstances in which an occupational pension may be commuted.

Article 15 amends the interpretation provision of the Pensions on Divorce etc. (Provision of Information) Regulations 2000 (S.I. 2000/1048).

Article 16 amends the Pension Sharing (Valuation) Regulations 2000 (S.I. 2000/1052) to modify the interpretation provision and prescribe the rights which are not shareable.

Article 17 amends the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000 (S.I. 2000/1053) to prescribe a further condition on which liability may be discharged in relation to pension credit benefit and to enable an occupational pension to be commuted. For an annuity contract or insurance policy to be a destination for a pension credit, it must provide that benefits secured by the contract or policy may be commuted if the payment qualifies as a trivial commutation lump sum payment under the Finance Act 2004.

Article 18 amends the Pension Sharing (Pension Credit Benefit) Regulations 2000 (S.I. 2000/1054) to make provision for the registration of schemes. In addition, it enables schemes to provide for the payment of pension credit benefit in the form of a lump sum before normal benefit age where the payment qualifies as either a serious ill-health lump sum payment or a trivial commutation lump sum payment under the Finance Act 2004.

Article 19 amends the Pension Sharing (Safeguarded Rights) Regulations 2000 (S.I. 2000/1055) to substitute new regulation 10 which specifies the circumstances in which pension credit benefit arising from safeguarded rights can be paid by a registered scheme. Also, it requires benefits payable in consequence of serious ill-health to have satisfied provisions of the Finance Act 2004 for the commutation of lump sum payments.

Article 20 amends the Stakeholder Pension Schemes Regulations 2000 (S.I. 2000/1403) to make provision for registered schemes.

Article 21 amends the Occupational and Personal Pension Schemes (Bankruptcy) (No. 2) Regulations 2002 (S.I. 2002/836) to substitute new arrangements which qualify as “approved pension arrangements” and “unapproved pension arrangements”.

Part 3, which consists of articles 22 to 41, applies to Northern Ireland.

Articles 22 to 41 provide for the tax registration of schemes and prescribes the circumstances in which occupational pension may be commuted in like manner to the provisions which apply to Great Britain by virtue of articles 2 to 21.

A full regulatory impact assessment of the effect that the provisions relating to the tax registration of schemes will have on the cost of businesses, charities and the voluntary sector has been prepared. Copies may be obtained from the Pensions Correspondence Unit, HM Revenue and Customs, 1st Floor, Ferrers House, PO Box 38, Castle Meadow Road, Nottingham NG2 1BB.

An assessment of the impact on business, charities or the voluntary sector of the provisions relating to the commutation of occupational pensions was included in the Regulatory Impact Assessment relating to the Pensions Act 2004 (c. 35). A copy of that assessment has been placed in the libraries of both Houses of Parliament. Copies may be obtained from the Department for Work and Pensions, Regulatory Impact Unit, level 3, Adelphi, 1-11 John Adam Street, London WC2N 6HT.

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<dc:title>The Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation) Order 2006</dc:title>
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<docTitle>The Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation) Order 2006</docTitle>
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The Treasury makes the following Order in exercise of the powers conferred upon it by section 281(2) of the Finance Act 2004
<authorialNote class="footnote" eId="f00001" marker="1">
<p>
<ref eId="c00023" href="http://www.legislation.gov.uk/id/ukpga/2004/12">2004 c. 12</ref>
.
</p>
</authorialNote>
.
</p>
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</preamble>
<body>
<part eId="part-1">
<num>PART 1</num>
<heading>Preliminary</heading>
<article eId="article-1">
<heading>Citation and commencement</heading>
<num>1.</num>
<content>
<p>This Order may be cited as the Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation) Order 2006 and shall come into force on 6th April 2006.</p>
</content>
</article>
</part>
<part eId="part-2">
<num>PART 2</num>
<heading>Amendment of Subordinate Legislation applicable to Great Britain</heading>
<article eId="article-2">
<heading>Amendment of the Occupational Pension Schemes (Managers) Regulations 1986</heading>
<num>2.</num>
<paragraph eId="article-2-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Managers) Regulations 1986
<authorialNote class="footnote" eId="f00002" marker="2">
<p>
<ref eId="c00024" href="http://www.legislation.gov.uk/id/uksi/1986/1718">S.I. 1986/1718</ref>
, amended by
<ref eId="c00025" href="http://www.legislation.gov.uk/id/uksi/1988/476">S.I. 1988/476</ref>
and
<ref eId="c00026" href="http://www.legislation.gov.uk/id/uksi/1994/1062">1994/1062</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-2-2">
<num>(2)</num>
<content>
<p>
In regulation 3
<authorialNote class="footnote" eId="f00003" marker="3">
<p>
Regulation 3 was inserted by
<ref eId="c00027" href="http://www.legislation.gov.uk/id/uksi/1988/476">S.I. 1988/476</ref>
.
</p>
</authorialNote>
(person to be treated as manager of scheme established outside the United Kingdom) for “administrator of” to the end of that regulation substitute “scheme administrator of the scheme for the purposes of section 270 of the Finance Act 2004 (meaning of “scheme administrator”).”.
</p>
</content>
</paragraph>
</article>
<article eId="article-3">
<heading>Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations 1987</heading>
<num>3.</num>
<paragraph eId="article-3-1">
<num>(1)</num>
<content>
<p>
Amend the Personal Pension Schemes (Disclosure of Information) Regulations 1987
<authorialNote class="footnote" eId="f00004" marker="4">
<p>
<ref eId="c00028" href="http://www.legislation.gov.uk/id/uksi/1987/1110">S.I. 1987/1110</ref>
; relevant amending instruments are
<ref eId="c00029" href="http://www.legislation.gov.uk/id/uksi/1988/474">S.I. 1988/474</ref>
,
<ref eId="c00030" href="http://www.legislation.gov.uk/id/uksi/1992/1531">1992/1531</ref>
,
<ref eId="c00031" href="http://www.legislation.gov.uk/id/uksi/1993/519">1993/519</ref>
,
<ref eId="c00032" href="http://www.legislation.gov.uk/id/uksi/1994/1062">1994/1062</ref>
,
<ref eId="c00033" href="http://www.legislation.gov.uk/id/uksi/1996/776">1996/776</ref>
and
<ref eId="c00034" href="http://www.legislation.gov.uk/id/uksi/1996/1435">1435</ref>
,
<ref eId="c00035" href="http://www.legislation.gov.uk/id/uksi/1997/786">1997/786</ref>
,
<ref eId="c00036" href="http://www.legislation.gov.uk/id/uksi/2000/2691">2000/2691</ref>
,
<ref eId="c00037" href="http://www.legislation.gov.uk/id/uksi/2001/3649">2001/3649</ref>
,
<ref eId="c00038" href="http://www.legislation.gov.uk/id/uksi/2002/1383">2002/1383</ref>
and
<ref eId="c00039" href="http://www.legislation.gov.uk/id/uksi/2005/2877">2005/2877</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-3-2">
<num>(2)</num>
<content>
<p>In regulation 2 (schemes to which regulations 3 to 6 do not apply) for “trust scheme which is” to the end of that regulation substitute “trust scheme which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act.”.</p>
</content>
</paragraph>
<paragraph eId="article-3-3">
<num>(3)</num>
<content>
<p>
<mod>
In Schedule 1 (basic information about the scheme) for paragraph 5A
<authorialNote class="footnote" eId="f00005" marker="5">
<p>
Paragraph 5A was inserted by
<ref eId="c00040" href="http://www.legislation.gov.uk/id/uksi/1988/474">S.I. 1988/474</ref>
.
</p>
</authorialNote>
substitute—
<quotedStructure startQuote="" endQuote="" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default">
<paragraph class="schProv1">
<num>5A.</num>
<content>
<p>Whether the scheme is registered under section 153 of the Finance Act 2004.</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-3-4">
<num>(4)</num>
<intro>
<p>In Schedule 2 (information to be made available to individuals)—</p>
</intro>
<level class="para1" eId="article-3-4-a">
<num>(a)</num>
<content>
<p>in paragraph 1(a) for “section 649(2) of the Income and Corporation Taxes Act 1988” substitute “section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation)”; and</p>
</content>
</level>
<level class="para1" eId="article-3-4-b">
<num>(b)</num>
<intro>
<p>
in paragraph 2A(3)(b)
<authorialNote class="footnote" eId="f00006" marker="6">
<p>
Paragraph 2A was inserted by
<ref eId="c00041" href="http://www.legislation.gov.uk/id/uksi/2002/1383">S.I. 2002/1383</ref>
and was amended by
<ref eId="c00042" href="http://www.legislation.gov.uk/id/uksi/2005/2877">S.I. 2005/2877</ref>
.
</p>
</authorialNote>
</p>
</intro>
<level class="para2" eId="article-3-4-b-i">
<num>(i)</num>
<content>
<p>
<mod>
for head (ii) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para2">
<num>(ii)</num>
<content>
<p>the scheme maintains its tax registration under section 153 of the Finance Act 2004; and</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-3-4-b-ii">
<num>(ii)</num>
<content>
<p>in head (iii), for “the Commissioners of Inland Revenue” substitute “the Commissioners of Her Majesty’s Revenue and Customs”.</p>
</content>
</level>
</level>
</paragraph>
</article>
<article eId="article-4">
<heading>Amendment of the Personal Pension Schemes (Transfer Values) Regulations 1987</heading>
<num>4.</num>
<paragraph eId="article-4-1">
<num>(1)</num>
<content>
<p>
Amend the Personal Pension Schemes (Transfer Values) Regulations 1987
<authorialNote class="footnote" eId="f00007" marker="7">
<p>
<ref eId="c00043" href="http://www.legislation.gov.uk/id/uksi/1987/1112">1987/1112</ref>
, amended by
<ref eId="c00044" href="http://www.legislation.gov.uk/id/uksi/1988/474">S.I. 1988/474</ref>
,
<ref eId="c00045" href="http://www.legislation.gov.uk/id/uksi/1988/1016">1988/1016</ref>
,
<ref eId="c00046" href="http://www.legislation.gov.uk/id/uksi/1994/1062">1994/1062</ref>
and
<ref eId="c00047" href="http://www.legislation.gov.uk/id/uksi/1997/786">1997/786</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-4-2">
<num>(2)</num>
<content>
<p>
<mod>
For regulation 2 (requirements to be satisfied) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Requirements to be satisfied</heading>
<num>2.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>The prescribed requirements referred to in section 95(3)(a) and (b) of the Act (cash equivalent of member’s rights under a personal pension scheme to be used for acquiring transfer credits or rights under another scheme) are that—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>the receiving scheme—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>is registered under section 153 of the Finance Act 2004 (registration of pension schemes), or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>is a qualifying recognised overseas pension scheme as defined in section 169 of that Act (recognised transfers),</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>if the member’s cash equivalent (or any portion of it to be used under section 95(3)(a) or (b) of the Act) is or includes the cash equivalent of his protected rights then the receiving scheme is one to which a transfer payment in respect of protected rights may be made in accordance with regulation 2 of the Protected Rights (Transfer Payment) Regulations 1996.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<content>
<p>
Paragraph (1)(a)(i) shall not apply if the receiving scheme was immediately before the 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988
<authorialNote class="footnote" eId="f00008" marker="8">
<p>
<ref eId="c00048" href="http://www.legislation.gov.uk/id/ukpga/1988/1">1988 c. 1</ref>
.
</p>
</authorialNote>
(retirement annuities), unless the transfer is from a contract or scheme which was immediately before 6th April 2006 approved under Chapter III of Part XIV of that Act.
</p>
</content>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-4-3">
<num>(3)</num>
<content>
<p>
Omit regulation 2A
<authorialNote class="footnote" eId="f00009" marker="9">
<p>
Regulation 2A was inserted by
<ref eId="c00049" href="http://www.legislation.gov.uk/id/uksi/1988/1016">S.I. 1988/1016</ref>
.
</p>
</authorialNote>
(use of cash equivalents for subscribing to self-employed pension arrangements).
</p>
</content>
</paragraph>
</article>
<article eId="article-5">
<heading>Amendment of the Personal and Occupational Pension Schemes (Perpetuities) Regulations 1990</heading>
<num>5.</num>
<paragraph eId="article-5-1">
<num>(1)</num>
<content>
<p>
Amend the Personal and Occupational Pension Schemes (Perpetuities) Regulations 1990
<authorialNote class="footnote" eId="f00010" marker="10">
<p>
<ref eId="c00050" href="http://www.legislation.gov.uk/id/uksi/1990/1143">S.I. 1990/1143</ref>
, amended by
<ref eId="c00051" href="http://www.legislation.gov.uk/id/uksi/1994/1062">S.I. 1994/1062</ref>
and
<ref eId="c00052" href="http://www.legislation.gov.uk/id/uksi/2001/943">2001/943</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-5-2">
<num>(2)</num>
<content>
<p>
<mod>
For regulations 3 and 4 (occupational and personal pension schemes that qualify under section 69 of the Pension Schemes Act 1993) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Occupational pension schemes to which section 163 of the Act applies</heading>
<num>3.</num>
<paragraph>
<num>(1)</num>
<content>
<p>An occupational pension scheme is a scheme to which section 163 of the Act (exemption of certain schemes from rule against perpetuities) applies at any time when it satisfies the requirements of any of paragraphs (2) to (6) of this regulation.</p>
</content>
</paragraph>
<paragraph>
<num>(2)</num>
<content>
<p>This paragraph requires the scheme to be a superannuation fund which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(b) and (3) of Schedule 36 to that Act (deemed registration of existing schemes).</p>
</content>
</paragraph>
<paragraph>
<num>(3)</num>
<content>
<p>This paragraph requires the scheme to be a superannuation fund to which section 615(3) of the Taxes Act (exemption from tax in respect of certain pensions) applies, or to which Her Majesty’s Revenue and Customs give relief from income tax under section 614(5) of the Taxes Act (exemptions and reliefs in respect of income from certain investments etc. of certain pension schemes).</p>
</content>
</paragraph>
<paragraph>
<num>(4)</num>
<content>
<p>This paragraph requires the scheme to be a trust scheme which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act.</p>
</content>
</paragraph>
<paragraph>
<num>(5)</num>
<intro>
<p>This paragraph requires the scheme, or part of the scheme, to be either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>an occupational pension scheme which is—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>registered under section 153 of the Finance Act 2004, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(a) of Schedule 36 to that Act.</p>
</content>
</level>
</level>
</paragraph>
<paragraph>
<num>(6)</num>
<content>
<p>This paragraph requires the scheme to be an occupational pension scheme and Her Majesty’s Revenue and Customs to be satisfied under section 153 of the Finance Act 2004, that the scheme corresponds to a scheme registered by Her Majesty’s Revenue and Customs for the purposes of Part 4 of that Act.</p>
</content>
</paragraph>
</hcontainer>
<hcontainer name="regulation">
<heading>Personal pension schemes to which section 163 of the Act applies</heading>
<num>4.</num>
<intro>
<p>A personal pension scheme is a scheme to which section 163 of the Act applies at any time when the scheme, or a part of the scheme, is either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>registered under section 153 of the Finance Act 2004; or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(g) of Schedule 36 to that Act.</p>
</content>
</level>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-6">
<heading>Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991</heading>
<num>6.</num>
<paragraph eId="article-6-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991
<authorialNote class="footnote" eId="f00011" marker="11">
<p>
<ref eId="c00053" href="http://www.legislation.gov.uk/id/uksi/1991/167">S.I. 1991/167</ref>
, to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-6-2">
<num>(2)</num>
<content>
<p>Omit regulation 23 (refunds of additional voluntary contributions).</p>
</content>
</paragraph>
</article>
<article eId="article-7">
<heading>Amendment of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations 1996</heading>
<num>7.</num>
<paragraph eId="article-7-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations 1996
<authorialNote class="footnote" eId="f00012" marker="12">
<p>
<ref eId="c00054" href="http://www.legislation.gov.uk/id/uksi/1996/775">S.I. 1996/775</ref>
, to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-7-2">
<num>(2)</num>
<content>
<p>
<mod>
For regulation 5 substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Conditions upon which appropriate policies of insurance may be commuted</heading>
<num>5.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>The requirements referred to in section 32A(2)(c) of the Act (policy of insurance appropriate where commutation conditional on satisfying prescribed requirements) are that the amount secured by the policy of insurance may only be commuted if the amount payable is authorised by section 164 of the Finance Act 2004 (authorised member payments) and satisfies the requirements of paragraph (2) or (3), together with—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>paragraphs (4) to (6) if the lump sum payment qualifies as a pension commencement lump sum; or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>paragraph (7) if the lump sum payment qualifies as a serious ill-health lump sum.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<intro>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a serious ill-health lump sum for the purposes of paragraph 4 of that Part; or</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(3)</num>
<content>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act.</p>
</content>
</paragraph>
<paragraph>
<num>(4)</num>
<content>
<p>This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.</p>
</content>
</paragraph>
<paragraph>
<num>(5)</num>
<intro>
<p>The limit referred to in paragraph (4) must not exceed—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,</p>
</content>
</level>
<wrapUp>
<p>whichever is the lower.</p>
</wrapUp>
</paragraph>
<paragraph>
<num>(6)</num>
<content>
<p>For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.</p>
</content>
</paragraph>
<paragraph>
<num>(7)</num>
<intro>
<p>Where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>on the date he qualifies for the payment, the member has a spouse or civil partner; and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,</p>
</content>
</level>
<wrapUp>
<p>then this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.</p>
</wrapUp>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-7-3">
<num>(3)</num>
<content>
<p>In regulation 6 (certain requirements applying to policies of insurance), in paragraph (1)(b), omit “, not being earlier than the age of 60,”.</p>
</content>
</paragraph>
</article>
<article eId="article-8">
<heading>Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996</heading>
<num>8.</num>
<paragraph eId="article-8-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Contracting-out) Regulations 1996
<authorialNote class="footnote" eId="f00013" marker="13">
<p>
<ref eId="c00055" href="http://www.legislation.gov.uk/id/uksi/1996/1172">S.I. 1996/1172</ref>
amended by section 1(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) Act
<ref eId="c00056" href="http://www.legislation.gov.uk/id/ukpga/1999/2">1999 (c. 2)</ref>
,
<ref eId="c00057" href="http://www.legislation.gov.uk/id/uksi/1997/786">S.I. 1997/786</ref>
,
<ref eId="c00058" href="http://www.legislation.gov.uk/id/uksi/1999/3198">1999/3198</ref>
,
<ref eId="c00059" href="http://www.legislation.gov.uk/id/uksi/2000/2975">2000/2975</ref>
,
<ref eId="c00060" href="http://www.legislation.gov.uk/id/uksi/2001/943">2001/943</ref>
,
<ref eId="c00061" href="http://www.legislation.gov.uk/id/uksi/2002/681">2002/681</ref>
,
<ref eId="c00062" href="http://www.legislation.gov.uk/id/uksi/2005/706">2005/706</ref>
,
<ref eId="c00063" href="http://www.legislation.gov.uk/id/uksi/2005/2050">2050</ref>
and
<ref eId="c00064" href="http://www.legislation.gov.uk/id/uksi/2005/3377">3377</ref>
; there are other amending instruments but none is relevant.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-8-2">
<num>(2)</num>
<intro>
<p>In regulation 1(2) (interpretation)—</p>
</intro>
<level class="para1" eId="article-8-2-a">
<num>(a)</num>
<content>
<p>in the definition of “administrator”, for “resident” (in the second place where that word appears) to the end of that definition substitute “who is, or the persons who are, appointed in accordance with section 270 of the Finance Act 2004 (meaning of “scheme administrator”);”;</p>
</content>
</level>
<level class="para1" eId="article-8-2-b">
<num>(b)</num>
<content>
<p>omit the definition of “the Taxes Act”; and</p>
</content>
</level>
<level class="para1" eId="article-8-2-c">
<num>(c)</num>
<content>
<p>
<mod>
in the appropriate alphabetical place insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>“relevant statutory scheme” has the same meaning as in paragraph 1(1)(c) of Schedule 36 to the Finance Act 2004 (deemed registration of existing schemes);</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-8-3">
<num>(3)</num>
<content>
<p>In regulation 12 (special provision for holding companies and subsidiaries), omit paragraphs (1)(b)(ii), (2)(b)(ii) and (2)(c)(ii).</p>
</content>
</paragraph>
<paragraph eId="article-8-4">
<num>(4)</num>
<content>
<p>
<mod>
In regulation 19 (lump sum benefits and salary-related contracted-out schemes) for the words “pension except—” to the end of that regulation, substitute—
<quotedText startQuote="">pension except in accordance with—</quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(a)</num>
<content>
<p>regulation 20 (payment of lump sum instead of a pension payable under a relevant scheme); or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>regulation 60 (payment of a guaranteed minimum pension as a lump sum).</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-8-5">
<num>(5)</num>
<content>
<p>
<mod>
For regulation 20 (trivial commutation of benefits derived from section 9(2B) rights) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Payment of a lump sum instead of a pension payable under a relevant scheme</heading>
<num>20.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>For the purposes of section 12C(1)(c) of the 1993 Act (regulations may prohibit or restrict the payment of a lump sum instead of a pension under a relevant scheme except in prescribed circumstances or on prescribed conditions), a relevant scheme may not provide for the payment of a lump sum instead of a pension unless the payment to be made is authorised under section 164 of the Finance Act 2004 (authorised member payments) and the payment is permitted either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>by the lump sum rule in section 166 of that Act (lump sum rule) and qualifies as—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>a serious ill-health lump sum for the purposes of paragraph 4 of that Part;</p>
</content>
</level>
<level class="para2">
<num>(iii)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part;</p>
</content>
</level>
<level class="para2">
<num>(iv)</num>
<content>
<p>a winding-up lump sum for the purposes of paragraph 10 of that Part; or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>by the lump sum death benefit rule in section 168 of that Act (lump sum death benefit rule) and qualifies as—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.</p>
</content>
</level>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<intro>
<p>Where under the scheme—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>an earner qualifies for a lump sum payment on the ground of serious ill-health; and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the earner’s widow, widower or surviving civil partner qualifies for a pension (“a survivor’s pension”),</p>
</content>
</level>
<wrapUp>
<p>the scheme must continue to include provision for a survivor’s pension notwithstanding the payment of a lump sum to the earner.</p>
</wrapUp>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-8-6">
<num>(6)</num>
<content>
<p>In regulation 21 (payable age in salary related contracted-out schemes) for “which” (in the second place where the word appears) to the end of that regulation substitute “which is permitted under section 164 of the Finance Act 2004 (authorised member payments).”.</p>
</content>
</paragraph>
<paragraph eId="article-8-7">
<num>(7)</num>
<content>
<p>
<mod>
In regulation 29 (schemes which cannot be certified under section 9(2B) of the Pension Schemes Act 1993), for paragraph (a) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(a)</num>
<content>
<p>a scheme which is not registered under section 153 of the Finance Act 2004, unless it is, or was formerly, a relevant statutory scheme.</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-8-8">
<num>(8)</num>
<content>
<p>In regulation 40 (schemes which may not be contracted-out under section 9(3) of the Pension Schemes Act 1993) for “an exempt approved scheme” to the end of that regulation substitute “registered under section 153 of the Finance Act 2004.”.</p>
</content>
</paragraph>
<paragraph eId="article-8-9">
<num>(9)</num>
<content>
<p>In regulation 48 (special provision for overseas schemes), in paragraph (3) for “for the” to the end of that paragraph substitute “who is appointed in accordance with section 270 of the Finance Act 2004 (meaning of “scheme administrator”).”.</p>
</content>
</paragraph>
<paragraph eId="article-8-10">
<num>(10)</num>
<content>
<p>
<mod>
For regulation 60 (trivial commutation of guaranteed minimum pensions), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Payment of a guaranteed minimum pension as a lump sum</heading>
<num>60.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>For the purposes of section 21(1) of the 1993 Act (payment of a lump sum instead of a pension in prescribed circumstances and subject to prescribed restrictions and conditions) the circumstances are where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a guaranteed minimum pension has become payable; and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>the payment of a lump sum is authorised under section 164 of the Finance Act 2004 and the payment is permitted either—</p>
</intro>
<level class="para2">
<num>(i)</num>
<intro>
<p>by the lump sum rule in section 166 of that Act and qualifies as—</p>
</intro>
<level class="para3">
<num>(aa)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part; or</p>
</content>
</level>
<level class="para3">
<num>(bb)</num>
<content>
<p>a winding-up lump sum for the purposes of paragraph 10 of that Part; or</p>
</content>
</level>
</level>
<level class="para2">
<num>(ii)</num>
<intro>
<p>by the lump sum death benefit rule in section 168 of that Act and qualifies as—</p>
</intro>
<level class="para3">
<num>(aa)</num>
<content>
<p>a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or</p>
</content>
</level>
<level class="para3">
<num>(bb)</num>
<content>
<p>a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.</p>
</content>
</level>
</level>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<intro>
<p>The condition in paragraph (1)(a) shall not apply in cases where the scheme is being wound up or an earner retires before pensionable age, and a premium under section 55(2) of the 1993 Act (contributions equivalent premium) has been paid or treated as paid under Part VI or the scheme has made the provisions mentioned in section 16(2) and (3) of the 1993 Act, provided that—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>for the purposes of paragraph (1)(b), where the aggregate amount of the benefits which has accrued to the earner at the date of winding-up or, as the case may be, of his retirement, increased—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>in accordance with section 16(2) and (3) of the 1993 Act, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>in a case where that section 16(2) and (3) applies, to the amount that would have been payable at pensionable age,</p>
</content>
</level>
<wrapUp>
<p>that aggregate amount shall be treated as the amount of benefits currently payable to him under the scheme;</p>
</wrapUp>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>in the case of an earner who retires before normal pension age, commutation is not permitted before the date on which benefits become payable to the earner under the scheme’s early retirement provisions;</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>in cases where the earner is a member of more than one scheme relating to the same employment, all those schemes are being wound up or, as the case may be, he is treated by all those schemes as having retired and, in each case, all those schemes have paid a contributions equivalent premium or have made the provisions mentioned in section 16(2) and (3) of the 1993 Act.</p>
</content>
</level>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-9">
<heading>Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations 1996</heading>
<num>9.</num>
<paragraph eId="article-9-1">
<num>(1)</num>
<content>
<p>
Amend the Contracting-out (Transfer and Transfer Payment) Regulations 1996
<authorialNote class="footnote" eId="f00014" marker="14">
<p>
<ref eId="c00065" href="http://www.legislation.gov.uk/id/uksi/1996/1462">S.I. 1996/1462</ref>
; relevant amending instruments are
<ref eId="c00066" href="http://www.legislation.gov.uk/id/uksi/1997/786">S.I. 1997/786</ref>
and
<ref eId="c00067" href="http://www.legislation.gov.uk/id/uksi/1999/3198">1999/3198</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-9-2">
<num>(2)</num>
<intro>
<p>In regulation 1(2) (interpretation), in the definition of ““connected employer transfer” and “connected employer transfer payment”“ in sub-paragraph (b)—</p>
</intro>
<level class="para1" eId="article-9-2-a">
<num>(a)</num>
<content>
<p>in head (i) after the word “employers,” insert “or”;</p>
</content>
</level>
<level class="para1" eId="article-9-2-b">
<num>(b)</num>
<content>
<p>in head (ii), for “1985, or” substitute “1985;”; and</p>
</content>
</level>
<level class="para1" eId="article-9-2-c">
<num>(c)</num>
<content>
<p>omit head (iii).</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-10">
<heading>Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996</heading>
<num>10.</num>
<paragraph eId="article-10-1">
<num>(1)</num>
<content>
<p>
Amend the Personal and Occupational Pension Schemes (Protected Rights) Regulations
<authorialNote class="footnote" eId="f00015" marker="15">
<p>
<ref eId="c00068" href="http://www.legislation.gov.uk/id/uksi/1996/1537">S.I. 1996/1537</ref>
; relevant amending instruments are
<ref eId="c00069" href="http://www.legislation.gov.uk/id/uksi/1997/786">S.I. 1997/786</ref>
,
<ref eId="c00070" href="http://www.legislation.gov.uk/id/uksi/2002/681">2002/681</ref>
,
<ref eId="c00071" href="http://www.legislation.gov.uk/id/uksi/2005/704">2005/704</ref>
,
<ref eId="c00072" href="http://www.legislation.gov.uk/id/uksi/2005/2050">2050</ref>
and
<ref eId="c00073" href="http://www.legislation.gov.uk/id/uksi/2005/3164">3164</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-10-2">
<num>(2)</num>
<content>
<p>In regulation 3(f) (options under section 10(2) and (3) of the Pension Schemes Act 1993 for schemes to designate which rights are protected rights) for “having the meanings” to the end of that paragraph substitute “have the meanings given to them by section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation).”.</p>
</content>
</paragraph>
<paragraph eId="article-10-3">
<num>(3)</num>
<content>
<p>
<mod>
In regulation 8 (giving effect to protected rights by provision of a lump sum), for paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>For the purposes of section 28(4) of the 1993 Act (effect may be given to protected rights by the provision of a lump sum but subject to prescribed restrictions), the restrictions are that the payment must be authorised under section 164 of the Finance Act 2004 (authorised member payments) and either paragraph (1A) or (1B) must be satisfied, together with—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>paragraphs (1C) to (1E) if the lump sum payment qualifies as a pension commencement lump sum; or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>paragraph (1F) if the lump sum payment qualifies as a serious ill-health lump sum.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(1A)</num>
<intro>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a serious ill-health lump sum for the purposes of paragraph 4 of that Part;</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part; or</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>a winding-up lump sum for the purposes of paragraph 10 of that Part.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(1B)</num>
<intro>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(1C)</num>
<content>
<p>This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.</p>
</content>
</paragraph>
<paragraph>
<num>(1D)</num>
<intro>
<p>The limit referred to in paragraph (1C) must not exceed—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,</p>
</content>
</level>
<wrapUp>
<p>whichever is the lower.</p>
</wrapUp>
</paragraph>
<paragraph>
<num>(1E)</num>
<content>
<p>For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.</p>
</content>
</paragraph>
<paragraph>
<num>(1F)</num>
<intro>
<p>Where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>on the date he qualifies for the payment, the member has a spouse or civil partner; and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,</p>
</content>
</level>
<wrapUp>
<p>this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.</p>
</wrapUp>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-10-4">
<num>(4)</num>
<content>
<p>In regulation 10 (choice of insurance company by annuitant), in paragraph (a), in both sub-paragraph (i) and sub-paragraph (ii), omit “if that age is not less than 60 years”.</p>
</content>
</paragraph>
<paragraph eId="article-10-5">
<num>(5)</num>
<content>
<p>
<mod>
In regulation 12 (death of member before effect given to his protected rights), for paragraph (14), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(14)</num>
<intro>
<p>The lump sum referred to in paragraph (3) is one which—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>is paid to the widow, widower or surviving civil partner where—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>effect is given to all the member’s protected rights by the payment of a lump sum; and</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<intro>
<p>either—</p>
</intro>
<level class="para3">
<num>(aa)</num>
<content>
<p>the member, when he died, had no rights under the scheme other than his protected rights; or</p>
</content>
</level>
<level class="para3">
<num>(bb)</num>
<content>
<p>effect is given to all those of his rights under the scheme which are not protected rights by the payment of a lump sum.</p>
</content>
</level>
</level>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-10-6">
<num>(6)</num>
<content>
<p>
<mod>
For regulation 17 (tax-exemption and tax-approval) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Tax registration</heading>
<num>17.</num>
<content>
<p>For the purposes of section 33 of the 1993 Act (tax requirements to prevail over certification requirements) tax-exemption and tax-approval mean tax registration under section 153 of the Finance Act 2004.</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-11">
<heading>Amendment of the Occupational Pension Schemes (Indexation) Regulations 1996</heading>
<num>11.</num>
<paragraph eId="article-11-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Indexation) Regulations 1996
<authorialNote class="footnote" eId="f00016" marker="16">
<p>
<ref eId="c00074" href="http://www.legislation.gov.uk/id/uksi/1996/1679">S.I. 1996/1679</ref>
as amended by
<ref eId="c00075" href="http://www.legislation.gov.uk/id/uksi/2005/704">S.I. 2005/704</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-11-2">
<num>(2)</num>
<content>
<p>In regulation 1(2) (interpretation), in the definition of “pension scheme” for “scheme, a personal pension scheme” to the end of that definition substitute “scheme, or a personal pension scheme registered under section 153 of the Finance Act 2004; and”.</p>
</content>
</paragraph>
</article>
<article eId="article-12">
<heading>Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 1996</heading>
<num>12.</num>
<paragraph eId="article-12-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Transfer Values) Regulations 1996
<authorialNote class="footnote" eId="f00017" marker="17">
<p>
<ref eId="c00076" href="http://www.legislation.gov.uk/id/uksi/1996/1847">S.I. 1996/1847</ref>
; the relevant amending instrument is
<ref eId="c00077" href="http://www.legislation.gov.uk/id/uksi/1997/786">S.I. 1997/786</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-12-2">
<num>(2)</num>
<intro>
<p>In regulation 12 (requirements to be met by receiving schemes, annuities and arrangements)—</p>
</intro>
<level class="para1" eId="article-12-2-a">
<num>(a)</num>
<content>
<p>
<mod>
for sub-paragraph (d) of paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(d)</num>
<content>
<p>if the scheme from which rights are transferred or from which a transfer payment is made is registered under section 153 of the Finance Act 2004, the scheme or personal pension scheme to which rights are transferred or to which a transfer payment in respect of rights is made is registered under that section (except a scheme which was immediately before 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988) or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004.</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-12-2-b">
<num>(b)</num>
<content>
<p>in sub-paragraph (b) of paragraph (2) for “of a kind” to the end of that sub-paragraph substitute “registered under section 153 of the Finance Act 2004, the annuity satisfies requirements of Her Majesty’s Revenue and Customs.”;</p>
</content>
</level>
<level class="para1" eId="article-12-2-c">
<num>(c)</num>
<content>
<p>omit paragraph (3);</p>
</content>
</level>
<level class="para1" eId="article-12-2-d">
<num>(d)</num>
<intro>
<p>in paragraph (5)—</p>
</intro>
<level class="para2" eId="article-12-2-d-i">
<num>(i)</num>
<content>
<p>in sub-paragraph (a), after “arrangement” (where the word first appears) omit “or a self-employed pension arrangement”,</p>
</content>
</level>
<level class="para2" eId="article-12-2-d-ii">
<num>(ii)</num>
<content>
<p>in sub-paragraph (b), omit “it is an overseas arrangement and”, and</p>
</content>
</level>
<level class="para2" eId="article-12-2-d-iii">
<num>(iii)</num>
<content>
<p>in sub-paragraph (c), for “is of a kind described” to the end of that sub-paragraph substitute “is registered under section 153 of the Finance Act 2004 or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004.”, and</p>
</content>
</level>
</level>
<level class="para1" eId="article-12-2-e">
<num>(e)</num>
<content>
<p>omit sub-paragraph (a) of paragraph (6).</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-13">
<heading>Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations 1997</heading>
<num>13.</num>
<paragraph eId="article-13-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Discharge of Liability) Regulations 1997
<authorialNote class="footnote" eId="f00018" marker="18">
<p>
<ref eId="c00078" href="http://www.legislation.gov.uk/id/uksi/1997/784">S.I. 1997/784</ref>
; relevant amending instruments are
<ref eId="c00079" href="http://www.legislation.gov.uk/id/uksi/1999/3198">S.I. 1999/3198</ref>
,
<ref eId="c00080" href="http://www.legislation.gov.uk/id/uksi/2005/704">2005/704</ref>
,
<ref eId="c00081" href="http://www.legislation.gov.uk/id/uksi/2005/2050">2050</ref>
and
<ref eId="c00082" href="http://www.legislation.gov.uk/id/uksi/2005/3164">3164</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-13-2">
<num>(2)</num>
<intro>
<p>In regulation 4 (conditions on which policies of insurance and annuity contracts may be commuted)—</p>
</intro>
<level class="para1" eId="article-13-2-a">
<num>(a)</num>
<content>
<p>
<mod>
for paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>The requirements referred to in section 19(4)(c) of the 1993 Act (policy of insurance or annuity contract appropriate where commutation conditional on satisfying prescribed requirements) are that—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>the amount secured by the policy of insurance or annuity contract does not exceed the amount for the time being permitted for a lump sum payment by—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the lump sum rule in section 166 of the Finance Act 2004 and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act; or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>subject to paragraph (2), the earner requests or consents to the amount secured by the policy of insurance or annuity contract being paid as a lump sum and that payment does not exceed the amount for the time being permitted for a lump sum payment by the lump sum rule in section 166 of that Act and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-13-2-b">
<num>(b)</num>
<content>
<p>in paragraph (2) omit “the earner’s and”;</p>
</content>
</level>
<level class="para1" eId="article-13-2-c">
<num>(c)</num>
<content>
<p>in paragraph (3) omit sub-paragraph (a); and</p>
</content>
</level>
<level class="para1" eId="article-13-2-d">
<num>(d)</num>
<content>
<p>omit paragraph (4).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-13-3">
<num>(3)</num>
<content>
<p>In regulation 11 (conditions on which liability to provide pensions under a relevant scheme may be discharged), in paragraph (3)(d)(i), omit “has attained the age of 50 and”.</p>
</content>
</paragraph>
</article>
<article eId="article-14">
<heading>Amendment of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997</heading>
<num>14.</num>
<paragraph eId="article-14-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc) Regulations 1997
<authorialNote class="footnote" eId="f00019" marker="19">
<p>
<ref eId="c00083" href="http://www.legislation.gov.uk/id/uksi/1997/785">S.I. 1997/785</ref>
; relevant amending instruments are
<ref eId="c00084" href="http://www.legislation.gov.uk/id/uksi/1999/1849">S.I. 1999/1849</ref>
,
<ref eId="c00085" href="http://www.legislation.gov.uk/id/uksi/2002/681">2002/681</ref>
,
<ref eId="c00086" href="http://www.legislation.gov.uk/id/uksi/2005/438">2005/438</ref>
,
<ref eId="c00087" href="http://www.legislation.gov.uk/id/uksi/2005/706">706</ref>
and
<ref eId="c00088" href="http://www.legislation.gov.uk/id/uksi/2005/2877">2877</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-14-2">
<num>(2)</num>
<intro>
<p>In regulation 1(2) (interpretation)—</p>
</intro>
<level class="para1" eId="article-14-2-a">
<num>(a)</num>
<content>
<p>omit the definition of “approved scheme”;</p>
</content>
</level>
<level class="para1" eId="article-14-2-b">
<num>(b)</num>
<content>
<p>
<mod>
in the appropriate alphabetical place, insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>“normal minimum pension age” has the meaning given by section 279(1) of the Finance Act 2004;</p>
</content>
</hcontainer>
<hcontainer name="definition">
<intro>
<p>“registered scheme” means—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a scheme registered under section 153 of the Finance Act 2004;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a scheme which was formerly registered under section 153 of that Act; or</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>a scheme which was formerly approved under section 590 or 591 of the Income and Corporation Taxes Act 1988 immediately before 6th April 2006.</p>
</content>
</level>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-14-3">
<num>(3)</num>
<intro>
<p>In regulation 2 (commutation of a pension under an occupational pension scheme)—</p>
</intro>
<level class="para1" eId="article-14-3-a">
<num>(a)</num>
<content>
<p>
<mod>
for paragraph (1), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>For the purposes of section 91(5)(c)(ii) and (iii) of the 1995 Act (inalienability of occupational pension does not apply to commutation in prescribed circumstances) the prescribed circumstances are where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>any amount payable as a lump sum to—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the earner is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act; or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act; or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>the scheme is being wound up and the aggregate amount of all benefits payable as a lump sum to—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the earner is permitted by the lump sum rule in section 166 of that Act and qualifies as a winding-up lump sum for the purposes of paragraph 10 of Part 1 of Schedule 29 to that Act; or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a winding-up lump sum death benefit for the purposes of paragraph 21 of Part 2 of Schedule 29 to that Act.</p>
</content>
</level>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-14-3-b">
<num>(b)</num>
<content>
<p>
<mod>
after paragraph (1A)
<authorialNote class="footnote" eId="f00020" marker="20">
<p>
Paragraph 1A was inserted by
<ref eId="c00089" href="http://www.legislation.gov.uk/id/uksi/2002/681">S.I. 2002/681</ref>
.
</p>
</authorialNote>
insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(1B)</num>
<intro>
<p>There are also prescribed for the purposes of—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>section 91(5)(c)(ii) of the 1995 Act the circumstances where the payment of a lump sum to a person is permitted in accordance with any of paragraphs (a) to (e) of the lump sum death benefit rule in section 168 of the Finance Act 2004 (lump sum death benefit rule);</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>section 91(5)(c)(iii) of the 1995 Act the circumstances where a person has reached normal minimum pension age but has not retired from the employment of the employer in relation to the scheme, the payment of a lump sum to the person is permitted in accordance with paragraph (a) or (g) of the lump sum rule in section 166 of the Finance Act 2004 (lump sum rule).</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-14-3-c">
<num>(c)</num>
<content>
<p>omit paragraph (2);</p>
</content>
</level>
<level class="para1" eId="article-14-3-d">
<num>(d)</num>
<content>
<p>in paragraph (3), for “paragraph (1)(a)(ii)”, substitute “paragraph (1)(b)”.</p>
</content>
</level>
</paragraph>
<paragraph eId="article-14-4">
<num>(4)</num>
<intro>
<p>In regulation 8 (exemptions from the inalienability and forfeiture provisions)—</p>
</intro>
<level class="para1" eId="article-14-4-a">
<num>(a)</num>
<content>
<p>in paragraph (3), for the word “approved” substitute the word “registered”; and</p>
</content>
</level>
<level class="para1" eId="article-14-4-b">
<num>(b)</num>
<content>
<p>
<mod>
after paragraph (5) add—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(6)</num>
<content>
<p>Section 91(1)(a) of the 1995 Act (inalienability of occupational pension) shall not apply to a scheme to the extent that it would prevent the making of any arrangement to effect a surrender of excess rights, at the option of the person in question, for the purposes of paragraph 12 of Schedule 36 to the Finance Act 2004 (pension schemes etc: transitional provisions and savings).</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-15">
<heading>Amendment of the Pensions on Divorce etc. (Provision of Information) Regulations 2000</heading>
<num>15.</num>
<paragraph eId="article-15-1">
<num>(1)</num>
<content>
<p>
Amend the Pensions on Divorce etc. (Provision of Information) Regulations 2000
<authorialNote class="footnote" eId="f00021" marker="21">
<p>
<ref eId="c00090" href="http://www.legislation.gov.uk/id/uksi/2000/1048">S.I. 2000/1048</ref>
; relevant amending instruments are
<ref eId="c00091" href="http://www.legislation.gov.uk/id/uksi/2000/2691">S.I. 2000/2691</ref>
and
<ref eId="c00092" href="http://www.legislation.gov.uk/id/uksi/2005/2877">2005/2877</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-15-2">
<num>(2)</num>
<content>
<p>In regulation 1(2) (interpretation), in the definition of “retirement annuity contract” for “approved” to the end of that definition substitute “which is to be treated as becoming a registered pension scheme under 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act;”.</p>
</content>
</paragraph>
</article>
<article eId="article-16">
<heading>Amendment of the Pension Sharing (Valuation) Regulations 2000</heading>
<num>16.</num>
<paragraph eId="article-16-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Valuation) Regulations 2000
<authorialNote class="footnote" eId="f00022" marker="22">
<p>
<ref eId="c00093" href="http://www.legislation.gov.uk/id/uksi/2000/1052">S.I. 2000/1052</ref>
the relevant amending instruments are
<ref eId="c00094" href="http://www.legislation.gov.uk/id/uksi/2000/2691">S.I. 2000/2691</ref>
,
<ref eId="c00095" href="http://www.legislation.gov.uk/id/uksi/2003/1727">2003/1727</ref>
,
<ref eId="c00096" href="http://www.legislation.gov.uk/id/uksi/2005/2877">2005/2877</ref>
and
<ref eId="c00097" href="http://www.legislation.gov.uk/id/uksi/2005/3377">3377</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-16-2">
<num>(2)</num>
<content>
<p>In regulation 1(2) (interpretation), omit the definition of “relevant benefits”.</p>
</content>
</paragraph>
<paragraph eId="article-16-3">
<num>(3)</num>
<intro>
<p>In regulation 2 (rights under a pension arrangement which are not shareable)—</p>
</intro>
<level class="para1" eId="article-16-3-a">
<num>(a)</num>
<content>
<p>
<mod>
in paragraph (1)(b), for head (iv) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(iv)</num>
<content>
<p>dependants' income withdrawal within the meaning of paragraph 21 of Schedule 28 to the Finance Act 2004 (dependants' income withdrawal),</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-16-3-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (1)(c) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(c)</num>
<intro>
<p>any rights which will result in the payment of a benefit which is to be provided solely by reason of the—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>disablement, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>death,</p>
</content>
</level>
<wrapUp>
<p>due to an accident suffered by a person occurring during his pensionable service.</p>
</wrapUp>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-17">
<heading>Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000</heading>
<num>17.</num>
<paragraph eId="article-17-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000
<authorialNote class="footnote" eId="f00023" marker="23">
<p>
<ref eId="c00098" href="http://www.legislation.gov.uk/id/uksi/2000/1053">S.I. 2000/1053</ref>
; the relevant amending instrument is
<ref eId="c00099" href="http://www.legislation.gov.uk/id/uksi/2000/2691">S.I. 2000/2691</ref>
and
<ref eId="c00100" href="http://www.legislation.gov.uk/id/uksi/2005/2877">2005/2877</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-17-2">
<num>(2)</num>
<content>
<p>In regulation 6 (discharge of liability in respect of a pension credit following the death of the person entitled to the pension credit), in paragraph (2), for “Part XIV of the Income and Corporation Taxes Act 1988” substitute “Part 4 of the Finance Act 2004 (pension schemes etc)”.</p>
</content>
</paragraph>
<paragraph eId="article-17-3">
<num>(3)</num>
<intro>
<p>In regulation 8 (unfunded occupational pension schemes other than public service pension schemes)—</p>
</intro>
<level class="para1" eId="article-17-3-a">
<num>(a)</num>
<intro>
<p>in paragraph (1)—</p>
</intro>
<level class="para2" eId="article-17-3-a-i">
<num>(i)</num>
<content>
<p>in sub-paragraph (a), for the words “an approved” substitute “a registered”,</p>
</content>
</level>
<level class="para2" eId="article-17-3-a-ii">
<num>(ii)</num>
<content>
<p>in sub-paragraph (b), for the word “unapproved” substitute “unregistered”, and</p>
</content>
</level>
</level>
<level class="para1" eId="article-17-3-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (3) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(3)</num>
<intro>
<p>In this regulation—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>“registered scheme” means an occupational pension scheme which is registered under section 153 of the Finance Act 2004; and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>“unregistered scheme” means an occupational pension scheme which is not a registered scheme under section 153 of the Finance Act 2004.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-17-4">
<num>(4)</num>
<intro>
<p>In regulation 15(5) (disqualification as a destination for pension credit – annuity contracts and insurance policies)—</p>
</intro>
<level class="para1" eId="article-17-4-a">
<num>(a)</num>
<content>
<p>in sub-paragraph (a) omit “, and the aggregate of those benefits does not exceed £260 per annum”; and</p>
</content>
</level>
<level class="para1" eId="article-17-4-b">
<num>(b)</num>
<content>
<p>
<mod>
for sub-paragraph (b) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(b)</num>
<intro>
<p>any lump sum payment—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>is permitted by the lump sum rule in section 166 of the Finance Act 2004; and</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act; and</p>
</content>
</level>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-18">
<heading>Amendment of the Pension Sharing (Pension Credit Benefit) Regulations 2000</heading>
<num>18.</num>
<paragraph eId="article-18-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Pension Credit Benefit) Regulations 2000
<authorialNote class="footnote" eId="f00024" marker="24">
<p>
<ref eId="c00101" href="http://www.legislation.gov.uk/id/uksi/2000/1054">S.I. 2000/1054</ref>
, to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-18-2">
<num>(2)</num>
<intro>
<p>In regulation 3 (commutation of the whole of pension credit benefit)—</p>
</intro>
<level class="para1" eId="article-18-2-a">
<num>(a)</num>
<content>
<p>in paragraph (1) omit “paragraphs (3) and (4) and”;</p>
</content>
</level>
<level class="para1" eId="article-18-2-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (2), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(2)</num>
<intro>
<p>The circumstances described in this paragraph are that the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act; or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of that Schedule.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-18-2-c">
<num>(c)</num>
<content>
<p>omit paragraphs (3) and (4).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-18-3">
<num>(3)</num>
<intro>
<p>In regulation 4 (commutation of part of pension credit benefit)—</p>
</intro>
<level class="para1" eId="article-18-3-a">
<num>(a)</num>
<content>
<p>in sub-paragraph (b) of paragraph (1), for “approval or” to the end of that sub-paragraph substitute “the registration or continuing registration of the scheme under section 153 of the Finance Act 2004.”; and</p>
</content>
</level>
<level class="para1" eId="article-18-3-b">
<num>(b)</num>
<content>
<p>omit paragraph (4).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-18-4">
<num>(4)</num>
<intro>
<p>In regulation 21 (requirements of other pension arrangements)—</p>
</intro>
<level class="para1" eId="article-18-4-a">
<num>(a)</num>
<content>
<p>in sub-paragraph (c) of paragraph (1), omit “any of sub-paragraphs (a) to (e) of”, and</p>
</content>
</level>
<level class="para1" eId="article-18-4-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (2) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(2)</num>
<content>
<p>The kind of scheme mentioned in paragraph (1)(c) is a scheme which is registered under section 153 of the Finance Act 2004.</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-19">
<heading>Amendment of the Pension Sharing (Safeguarded Rights) Regulations 2000</heading>
<num>19.</num>
<paragraph eId="article-19-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Safeguarded Rights) Regulations 2000
<authorialNote class="footnote" eId="f00025" marker="25">
<p>
<ref eId="c00102" href="http://www.legislation.gov.uk/id/uksi/2000/1055">S.I. 2000/1055</ref>
; relevant amending instruments are
<ref eId="c00103" href="http://www.legislation.gov.uk/id/uksi/2000/2691">S.I. 2000/2691</ref>
and
<ref eId="c00104" href="http://www.legislation.gov.uk/id/uksi/2005/2877">2005/2877</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-19-2">
<num>(2)</num>
<content>
<p>
<mod>
In regulation 9 (ways of giving effect to safeguarded rights - salary related schemes) for paragraph (9) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(9)</num>
<intro>
<p>For the purposes of paragraph (7)—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>the benefits secured for a beneficiary suffering from serious ill-health shall become payable only if the payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>“beneficiary” means a member of a salary related contracted-out scheme, in respect of whose safeguarded rights the trustees or managers of that scheme have discharged their liability by entering into an insurance policy or an annuity contract;</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>“incapacity” means physical or mental deterioration which is sufficiently serious to prevent a person from following his normal employment or which seriously impairs his earning capacity.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-19-3">
<num>(3)</num>
<content>
<p>
<mod>
For regulation 10 (payable age in salary related contracted-out schemes) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Payable age in salary related contracted-out schemes</heading>
<num>10.</num>
<content>
<p>In respect of pension credit benefit arising out of safeguarded rights, schemes must provide for pension credit benefit to be paid by reference to an age which is equal for men and women and which, in the case of a scheme which is registered under section 153 of the Finance Act 2004, is permitted under the rules of that scheme in accordance with that registration.</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-20">
<heading>Amendment of the Stakeholder Pension Schemes Regulations 2000</heading>
<num>20.</num>
<paragraph eId="article-20-1">
<num>(1)</num>
<content>
<p>
Amend the Stakeholder Pension Schemes Regulations 2000
<authorialNote class="footnote" eId="f00026" marker="26">
<p>
<ref eId="c00105" href="http://www.legislation.gov.uk/id/uksi/2000/1403">S.I. 2000/1403</ref>
as amended by
<ref eId="c00106" href="http://www.legislation.gov.uk/id/uksi/2001/104">S.I. 2001/104</ref>
,
<ref eId="c00107" href="http://www.legislation.gov.uk/id/uksi/2001/934">2001/934</ref>
,
<ref eId="c00108" href="http://www.legislation.gov.uk/id/uksi/2001/3649">2001/3649</ref>
,
<ref eId="c00109" href="http://www.legislation.gov.uk/id/uksi/2002/1383">2002/1383</ref>
,
<ref eId="c00110" href="http://www.legislation.gov.uk/id/uksi/2002/1555">2002/1555</ref>
,
<ref eId="c00111" href="http://www.legislation.gov.uk/id/uksi/2002/2098">2002/2098</ref>
and
<ref eId="c00112" href="http://www.legislation.gov.uk/id/uksi/2005/577">2005/577</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-20-2">
<num>(2)</num>
<intro>
<p>In regulation 1 (citation, commencement and interpretation)—</p>
</intro>
<level class="para1" eId="article-20-2-a">
<num>(a)</num>
<intro>
<p>In paragraph (3)—</p>
</intro>
<level class="para2" eId="article-20-2-a-i">
<num>(i)</num>
<content>
<p>
<mod>
in the definition of “pension arrangement” for paragraph (c) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(c)</num>
<content>
<p>a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004;</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-20-2-a-ii">
<num>(ii)</num>
<content>
<p>
<mod>
for the definition of “tax relief” substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>“tax relief” has the meaning given by Chapter 4 of Part 4 of the Finance Act 2004 (registered pension schemes: tax reliefs and exemptions);</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="article-20-2-b">
<num>(b)</num>
<content>
<p>in paragraph (6), for ““tax-exemption”“ to the end of that paragraph substitute ““tax-registration” and “tax-registered” mean registration or, as the case may be, registered under section 153 of the Finance Act 2004.”.</p>
</content>
</level>
</paragraph>
<paragraph eId="article-20-3">
<num>(3)</num>
<content>
<p>
In regulation 3 (requirements applying to all stakeholder pension schemes as regards instruments establishing such schemes), in paragraphs (5A)
<authorialNote class="footnote" eId="f00027" marker="27">
<p>
Paragraph 5A was inserted by
<ref eId="c00113" href="http://www.legislation.gov.uk/id/uksi/2001/104">S.I. 2001/104</ref>
and amended by
<ref eId="c00114" href="http://www.legislation.gov.uk/id/uksi/2001/934">S.I. 2001/934</ref>
.
</p>
</authorialNote>
and (5B)
<authorialNote class="footnote" eId="f00028" marker="28">
<p>
Paragraph 5B was inserted by
<ref eId="c00115" href="http://www.legislation.gov.uk/id/uksi/2001/934">S.I. 2001/934</ref>
.
</p>
</authorialNote>
, for “has tax-exemption or tax-approval” in both places substitute “maintains its tax-registration”.
</p>
</content>
</paragraph>
<paragraph eId="article-20-4">
<num>(4)</num>
<intro>
<p>In sub-paragraph (b) of regulation 6(4) (procedure for discharging rights on winding-up)—</p>
</intro>
<level class="para1" eId="article-20-4-a">
<num>(a)</num>
<content>
<p>for “tax-approval or tax-exemption” substitute “tax-registration”, and</p>
</content>
</level>
<level class="para1" eId="article-20-4-b">
<num>(b)</num>
<content>
<p>for “approval or exemption” substitute “registration”.</p>
</content>
</level>
</paragraph>
<paragraph eId="article-20-5">
<num>(5)</num>
<intro>
<p>In regulation 17 (restrictions on contributions)—</p>
</intro>
<level class="para1" eId="article-20-5-a">
<num>(a)</num>
<content>
<p>in paragraph (3), for “section 639” to “(tax reliefs: member’s contributions)” substitute “section 192 of the Finance Act 2004 (relief at source)”;</p>
</content>
</level>
<level class="para1" eId="article-20-5-b">
<num>(b)</num>
<content>
<p>in paragraph (4) for “tax-exemption” to the end of that paragraph substitute “tax-registration”; and</p>
</content>
</level>
<level class="para1" eId="article-20-5-c">
<num>(c)</num>
<content>
<p>
<mod>
after paragraph (4) insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(4A)</num>
<intro>
<p>the trustees or manager of a stakeholder pension scheme may refuse to accept any contribution by, or on behalf of any member of the scheme who—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>
has not given the declaration specified in regulation 5(2) of the Registered Pension Schemes (Relief at Source) Regulations 2005
<authorialNote class="footnote" eId="f00029" marker="29">
<p>
<ref eId="c00116" href="http://www.legislation.gov.uk/id/uksi/2005/3448">S.I. 2005/3448</ref>
.
</p>
</authorialNote>
(declaration of entitlement to tax relief in respect of net contributions); or
</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>is not a relevant UK individual for the purposes of section 189 of the Finance Act 2004 (relevant UK individual) for the tax year in respect of which the contribution is made.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-20-6">
<num>(6)</num>
<intro>
<p>In regulation 18 (disclosure of information to members)—</p>
</intro>
<level class="para1" eId="article-20-6-a">
<num>(a)</num>
<content>
<p>
<mod>
for sub-paragraph (n) of paragraph (5) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(n)</num>
<content>
<p>any amount paid to the member by way of income withdrawal or dependants' income withdrawal as defined in paragraph 7 or, as the case may be, 21 of Schedule 28 to the Finance Act 2004 (income withdrawal or dependants' income withdrawal);</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-20-6-b">
<num>(b)</num>
<intro>
<p>in sub-paragraph (b) of paragraph (5D)—</p>
</intro>
<level class="para2" eId="article-20-6-b-i">
<num>(i)</num>
<content>
<p>
<mod>
for head (ii) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para2">
<num>(ii)</num>
<content>
<p>the scheme maintains its tax registration under section 153 of the Finance Act 2004; and</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-20-6-b-ii">
<num>(ii)</num>
<content>
<p>in head (iii), for “Commissioners of Inland Revenue” substitute “Commissioners of Her Majesty’s Revenue and Customs”; and</p>
</content>
</level>
</level>
<level class="para1" eId="article-20-6-c">
<num>(c)</num>
<content>
<p>
<mod>
for paragraph (10) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(10)</num>
<content>
<p>For the purposes of this regulation “member” shall include a dependant making income withdrawals from the scheme in accordance with paragraph 21 of Schedule 28 to the Finance Act 2004.</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-20-7">
<num>(7)</num>
<content>
<p>In regulation 25 (disclosure of information to relevant employees), in paragraph (2)(e)(i) for the “tax-exemption or tax-approval” substitute “tax-registration”.</p>
</content>
</paragraph>
</article>
<article eId="article-21">
<heading>Amendment of the Occupational and Personal Pension Schemes (Bankruptcy) (No. 2) Regulations 2002</heading>
<num>21.</num>
<paragraph eId="article-21-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational and Personal Pension Schemes (Bankruptcy) (No. 2) Regulations 2002
<authorialNote class="footnote" eId="f00030" marker="30">
<p>
<ref eId="c00117" href="http://www.legislation.gov.uk/id/uksi/2002/836">S.I. 2002/836</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-21-2">
<num>(2)</num>
<intro>
<p>In regulation 1(4) (interpretation)—</p>
</intro>
<level class="para1" eId="article-21-2-a">
<num>(a)</num>
<intro>
<p>in sub-paragraph (a)—</p>
</intro>
<level class="para2" eId="article-21-2-a-i">
<num>(i)</num>
<content>
<p>
<mod>
for the definition of “relevant benefits” substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<intro>
<p>“relevant benefits” means any pension, lump sum, gratuity or other like benefit which is, or is to be, provided—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>by reason, or in anticipation, of retirement,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>by reason of death,</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>by reason of a pension sharing order or provision,</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>in connection with past service,</p>
</content>
</level>
<level class="para1">
<num>(e)</num>
<content>
<p>after retirement or death,</p>
</content>
</level>
<level class="para1">
<num>(f)</num>
<content>
<p>in anticipation of, or in connection with, any change in the nature of the service of the employee in question,</p>
</content>
</level>
<wrapUp>
<p>but does not include any benefit which is to be provided solely by reason of the disablement or death due to an accident suffered by a person during his pensionable service;;</p>
</wrapUp>
</hcontainer>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-21-2-a-ii">
<num>(ii)</num>
<content>
<p>
<mod>
in the appropriate alphabetical place insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>
“the 2003 Act” means the Income Tax (Earnings and Pensions) Act 2003
<authorialNote class="footnote" eId="f00031" marker="31">
<p>
<ref eId="c00118" href="http://www.legislation.gov.uk/id/ukpga/2003/1">2003 c. 1</ref>
.
</p>
</authorialNote>
;
</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="article-21-2-b">
<num>(b)</num>
<content>
<p>
<mod>
in paragraph (b), in the appropriate alphabetical place insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none">
<item>
<p>
“employer-financed retirement benefits scheme” has the same meaning given by section 393A of the 2003 Act
<authorialNote class="footnote" eId="f00032" marker="32">
<p>Section 393A was inserted by the Finance Act 2004.</p>
</authorialNote>
(employer-financed retirement benefits scheme);
</p>
</item>
</blockList>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-21-3">
<num>(3)</num>
<intro>
<p>In regulation 2 (prescribed pension arrangements)—</p>
</intro>
<level class="para1" eId="article-21-3-a">
<num>(a)</num>
<intro>
<p>in paragraph (1)—</p>
</intro>
<level class="para2" eId="article-21-3-a-i">
<num>(i)</num>
<content>
<p>in head (i) of sub-paragraph (a), for “foreign emoluments which” to the end of that head substitute “earnings which have been allowed as a deduction under paragraph 51 of Schedule 36 to the Finance Act 2004 (individuals with pre-commencement entitlement to corresponding relief),”,</p>
</content>
</level>
<level class="para2" eId="article-21-3-a-ii">
<num>(ii)</num>
<content>
<p>
<mod>
for sub-paragraph (b) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(b)</num>
<intro>
<p>made with a scheme which is an occupational pension scheme—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>registered under section 153 of the Finance Act 2004, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with Part 1 of Schedule 36 to that Act,</p>
</content>
</level>
</level>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-21-3-a-iii">
<num>(iii)</num>
<content>
<p>
<mod>
for sub-paragraph (c) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(c)</num>
<content>
<p>to which section 308A of the 2003 Act (exemption of contributions to overseas pension scheme) applies;</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-21-3-a-iv">
<num>(iv)</num>
<content>
<p>in sub-paragraph (d), for “section 614, 615 or 616 of the Taxes Act” to the end of that sub-paragraph substitute “section 614 or 615 of the Taxes Act (exemptions and reliefs in respect of income from investments etc of certain pension schemes and other overseas pensions), or section 629, 630 or 643 of the 2003 Act (pre-1973 pensions paid under the Overseas Pensions Act 1973 and Malawi, Trinidad and Tobago and Zambia government pensions),”,</p>
</content>
</level>
<level class="para2" eId="article-21-3-a-v">
<num>(v)</num>
<content>
<p>omit sub-paragraph (f),</p>
</content>
</level>
</level>
<level class="para1" eId="article-21-3-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (2) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(2)</num>
<content>
<p>Paragraph (1)(e) above does not apply to any employer-financed retirement benefits scheme arrangement which has been provided to an employee as part of or in addition to any pension arrangement referred to in paragraph (1)(e) above.</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-21-3-c">
<num>(c)</num>
<content>
<p>omit sub-paragraphs (a) and (d) of paragraph (3).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-21-4">
<num>(4)</num>
<content>
<p>
<mod>
In regulation 3 (unapproved pension arrangements), for paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>For the purposes of section 12 of the 1999 Act (effect of bankruptcy on pension rights: unapproved arrangements), a pension arrangement falling within—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>section 157 of the Finance Act 2004 (de-registration);</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>paragraphs 52 to 57 of Schedule 36 to that Act; or</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>section 393A of the 2003 Act,</p>
</content>
</level>
<wrapUp>
<p>shall be an “unapproved pension arrangement” if it satisfies the conditions specified in paragraph (2) below.</p>
</wrapUp>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-21-5">
<num>(5)</num>
<content>
<p>In head (ii) of sub-paragraph (a) of regulation 5(1) (exclusion orders), for “3(1)(a) or (b)” to the end of that head substitute “3(1)(a) above, the date, if later than that referred to in head (i) above, on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004; or”.</p>
</content>
</paragraph>
<paragraph eId="article-21-6">
<num>(6)</num>
<content>
<p>In sub-paragraph (b) of regulation 6(1) (qualifying agreements), for “3(1)(a) or (b)” to the end of that sub-paragraph substitute “3(1)(a) above, the date, if later than that referred to in sub-paragraph (a) above, on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004.”.</p>
</content>
</paragraph>
<paragraph eId="article-21-7">
<num>(7)</num>
<content>
<p>
<mod>
In regulation 12 (unapproved pension arrangements), for paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>For the purposes of section 12 of the 1999 Act, a pension arrangement falling within—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>section 157 of the Finance Act 2004;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>paragraphs 52 to 57 of Schedule 36 to that Act; or</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>section 393A of the 2003 Act,</p>
</content>
</level>
<wrapUp>
<p>shall be an “unapproved pension arrangement” if it satisfies the conditions specified in paragraph (2) below.</p>
</wrapUp>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-21-8">
<num>(8)</num>
<content>
<p>In head (ii) of sub-paragraph (a) of regulation 14(1) (exclusion orders), for “12(1)(a) or (b)” to the end of that head substitute “12(1)(a) above, the date, if later than that referred to in head (i) above, on which any rights of the debtor vest in the permanent trustee or judicial factor on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004; or”.</p>
</content>
</paragraph>
<paragraph eId="article-21-9">
<num>(9)</num>
<content>
<p>In sub-paragraph (b) of regulation 15(1) (qualifying agreements), for “12(1)(a) or (b)” to the end of that sub-paragraph substitute “12(1)(a) above, the date, if later than that referred to in sub-paragraph (a) above, on which any rights of the debtor vest in the permanent trustee or judicial factor on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the Finance Act 2004.”.</p>
</content>
</paragraph>
</article>
</part>
<part eId="part-3">
<num>PART 3</num>
<heading>Amendment of Subordinate Legislation applicable to Northern Ireland</heading>
<article eId="article-22">
<heading>Amendment of the Occupational Pension Schemes (Managers) Regulations (Northern Ireland) 1986</heading>
<num>22.</num>
<paragraph eId="article-22-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Managers) Regulations (Northern Ireland) 1986
<authorialNote class="footnote" eId="f00033" marker="33">
<p>
<ref eId="c00119" href="http://www.legislation.gov.uk/id/nisr/1986/320">S.R. (NI) 1986 No. 320</ref>
, amended by
<ref eId="c00120" href="http://www.legislation.gov.uk/id/nisr/1988/109">S.R. (NI) 1988 No. 109</ref>
and
<ref eId="c00121" href="http://www.legislation.gov.uk/id/nisr/1994/300">S.R. (NI) 1994 No. 300</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-22-2">
<num>(2)</num>
<content>
<p>
In regulation 3
<authorialNote class="footnote" eId="f00034" marker="34">
<p>
Regulation 3 was inserted by regulation 7(2) of
<ref eId="c00122" href="http://www.legislation.gov.uk/id/nisr/1988/109">S.R. (NI) 1988 No. 109</ref>
and was amended by paragraph 7 of Schedule 2 to
<ref eId="c00123" href="http://www.legislation.gov.uk/id/nisr/1994/300">S.R. (NI) 1994 No. 300</ref>
.
</p>
</authorialNote>
(person to be treated as manager of schemes established outside the United Kingdom) for “administrator of” to the end of that regulation substitute “scheme administrator of the scheme for the purposes of section 270 of the Finance Act 2004 (meaning of “scheme administrator”).”.
</p>
</content>
</paragraph>
</article>
<article eId="article-23">
<heading>Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987</heading>
<num>23.</num>
<paragraph eId="article-23-1">
<num>(1)</num>
<content>
<p>
Amend the Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1987
<authorialNote class="footnote" eId="f00035" marker="35">
<p>
<ref eId="c00124" href="http://www.legislation.gov.uk/id/nisr/1987/288">S.R. (NI) 1987 No. 288</ref>
; relevant amending Regulations are
<ref eId="c00125" href="http://www.legislation.gov.uk/id/nisr/1988/107">S.R. (NI) 1988 No. 107</ref>
,
<ref eId="c00126" href="http://www.legislation.gov.uk/id/nisr/1992/304">S.R. (NI) 1992 No. 304</ref>
,
<ref eId="c00127" href="http://www.legislation.gov.uk/id/nisr/1994/300">S.R. (NI) 1994 No. 300</ref>
,
<ref eId="c00128" href="http://www.legislation.gov.uk/id/nisr/2002/410">S.R. (NI) 2002 No. 410</ref>
and
<ref eId="c00129" href="http://www.legislation.gov.uk/id/nisr/2005/536">S.R. (NI) 2005 No. 536</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-23-2">
<num>(2)</num>
<content>
<p>In regulation 2 (schemes to which regulations 3 to 6 do not apply) for “trust scheme which is” to the end of that regulation substitute “trust scheme which is treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act (deemed registration of existing schemes).”.</p>
</content>
</paragraph>
<paragraph eId="article-23-3">
<num>(3)</num>
<content>
<p>
<mod>
In Schedule 1 (basic information about the scheme) for paragraph 5A
<authorialNote class="footnote" eId="f00036" marker="36">
<p>
Paragraph 5A was inserted by regulation 6(d) of
<ref eId="c00130" href="http://www.legislation.gov.uk/id/nisr/1988/107">S.R. (NI) 1988 No. 107</ref>
.
</p>
</authorialNote>
substitute—
<quotedStructure startQuote="" endQuote="" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default">
<paragraph class="schProv1">
<num>5A.</num>
<content>
<p>Whether the scheme is registered under section 153 of the Finance Act 2004.</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-23-4">
<num>(4)</num>
<intro>
<p>In Schedule 2 (information to be made available to individuals)—</p>
</intro>
<level class="para1" eId="article-23-4-a">
<num>(a)</num>
<content>
<p>
in paragraph 1(a)
<authorialNote class="footnote" eId="f00037" marker="37">
<p>
Paragraph 1(a) was amended by regulation 6(e) of
<ref eId="c00131" href="http://www.legislation.gov.uk/id/nisr/1988/107">S.R. (NI) 1988 No. 107</ref>
.
</p>
</authorialNote>
for “section 649(2) of the Income and Corporation Taxes Act 1988
<authorialNote class="footnote" eId="f00038" marker="38">
<p>
<ref eId="c00132" href="http://www.legislation.gov.uk/id/ukpga/1988/1">1988 c. 1</ref>
.
</p>
</authorialNote>
” substitute “section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation)”; and
</p>
</content>
</level>
<level class="para1" eId="article-23-4-b">
<num>(b)</num>
<intro>
<p>
in paragraph 2A(3)(b)
<authorialNote class="footnote" eId="f00039" marker="39">
<p>
Paragraph 2A was inserted by regulation 2(4) of
<ref eId="c00133" href="http://www.legislation.gov.uk/id/nisr/2002/410">S.R. (NI) 2002 No. 410</ref>
and was amended by paragraph 1 of Schedule 2 to
<ref eId="c00134" href="http://www.legislation.gov.uk/id/nisr/2005/536">S.R. (NI) 2005 No. 536</ref>
.
</p>
</authorialNote>
</p>
</intro>
<level class="para2" eId="article-23-4-b-i">
<num>(i)</num>
<content>
<p>
<mod>
for sub-head (ii) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para2">
<num>(ii)</num>
<content>
<p>the scheme maintains its tax registration under section 153 of the Finance Act 2004, and</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-23-4-b-ii">
<num>(ii)</num>
<content>
<p>in sub-head (iii) for “the Commissioners of Inland Revenue” substitute “the Commissioners of Her Majesty’s Revenue and Customs”.</p>
</content>
</level>
</level>
</paragraph>
</article>
<article eId="article-24">
<heading>Amendment of the Personal Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1987</heading>
<num>24.</num>
<paragraph eId="article-24-1">
<num>(1)</num>
<content>
<p>
Amend the Personal Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1987
<authorialNote class="footnote" eId="f00040" marker="40">
<p>
<ref eId="c00135" href="http://www.legislation.gov.uk/id/nisr/1987/290">S.R. (NI) 1987 No. 290</ref>
; relevant amending Regulations are
<ref eId="c00136" href="http://www.legislation.gov.uk/id/nisr/1988/107">S.R. (NI) 1988 Nos. 107</ref>
and
<ref eId="c00137" href="http://www.legislation.gov.uk/id/nisr/1988/214">214</ref>
,
<ref eId="c00138" href="http://www.legislation.gov.uk/id/nisr/1994/300">S.R. (NI) 1994 No. 300</ref>
and
<ref eId="c00139" href="http://www.legislation.gov.uk/id/nisr/1997/160">S.R. (NI) 1997 No. 160</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-24-2">
<num>(2)</num>
<content>
<p>
<mod>
For regulation 2 (requirements to be satisfied) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Requirements to be satisfied</heading>
<num>2.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>The prescribed requirements referred to in section 91(3)(a) and (b) (cash equivalent of member’s rights under a personal pension scheme to be used for acquiring transfer credits or rights under another scheme) are that—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>the receiving scheme—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>is registered under section 153 of the Finance Act 2004, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>is a qualifying recognised overseas pension scheme as defined in section 169 of that Act (recognised transfers),</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>
if the member’s cash equivalent (or any portion of it to be used under section 91(3)(a) or (b)) is or includes the cash equivalent of his protected rights then the receiving scheme is one to which a transfer payment in respect of protected rights may be made in accordance with regulation 2 of the Protected Rights (Transfer Payment) Regulations (Northern Ireland) 1996
<authorialNote class="footnote" eId="f00041" marker="41">
<p>
<ref eId="c00140" href="http://www.legislation.gov.uk/id/nisr/1996/509">S.R. (NI) 1996 No. 509</ref>
; relevant amending Regulations are
<ref eId="c00141" href="http://www.legislation.gov.uk/id/nisr/2005/467">S.R. (NI) 2005 No. 467</ref>
.
</p>
</authorialNote>
(general).
</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<content>
<p>
Paragraph 1(a)(i) shall not apply if the receiving scheme was immediately before the 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988
<authorialNote class="footnote" eId="f00042" marker="42">
<p>
<ref eId="c00142" href="http://www.legislation.gov.uk/id/ukpga/1988/1">1988 c. 1</ref>
.
</p>
</authorialNote>
(retirement annuities), unless the transfer is from a contract or scheme which was immediately before the 6th April 2006 approved under Chapter III of Part XIV of that Act.
</p>
</content>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-24-3">
<num>(3)</num>
<content>
<p>
Omit regulation 2A
<authorialNote class="footnote" eId="f00043" marker="43">
<p>
Regulation 2A was inserted by regulation 3(c) of
<ref eId="c00143" href="http://www.legislation.gov.uk/id/nisr/1988/214">S.R. (NI) 1988 No. 214</ref>
.
</p>
</authorialNote>
(use of cash equivalents for subscribing to self-employed pension arrangements).
</p>
</content>
</paragraph>
</article>
<article eId="article-25">
<heading>Amendment of the Personal and Occupational Pension Schemes (Perpetuities) Regulations (Northern Ireland) 1990</heading>
<num>25.</num>
<paragraph eId="article-25-1">
<num>(1)</num>
<content>
<p>
Amend the Personal and Occupational Pension Schemes (Perpetuities) Regulations (Northern Ireland) 1990
<authorialNote class="footnote" eId="f00044" marker="44">
<p>
<ref eId="c00144" href="http://www.legislation.gov.uk/id/nisr/1990/204">S.R. (NI) 1990 No. 204</ref>
; relevant amending Regulations are
<ref eId="c00145" href="http://www.legislation.gov.uk/id/nisr/1994/300">S.R. (NI) 1994 No. 300</ref>
and
<ref eId="c00146" href="http://www.legislation.gov.uk/id/nisr/1996/620">S.R. (NI) 1996 No. 620</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-25-2">
<num>(2)</num>
<content>
<p>
<mod>
For regulations 3 and 4 (occupational and personal pension schemes that qualify under Article 65) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Occupational pension schemes to which section 159 of the Act applies</heading>
<num>3.</num>
<paragraph>
<num>(1)</num>
<content>
<p>An occupational pension scheme is a scheme to which section 159 of the Act (exemption of certain schemes from rule against perpetuities) applies at any time when it satisfies the requirements of any of paragraphs (2) to (6).</p>
</content>
</paragraph>
<paragraph>
<num>(2)</num>
<content>
<p>This paragraph requires the scheme to be a superannuation fund which is treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(b) and (3) of Schedule 36 to that Act (deemed registration of existing schemes).</p>
</content>
</paragraph>
<paragraph>
<num>(3)</num>
<content>
<p>This paragraph requires the scheme to be a superannuation fund to which section 615(3) (exemption from tax in respect of certain pensions) applies, or to which Her Majesty’s Revenue and Customs give relief from income tax under section 614(5) (exemptions and reliefs in respect of income from certain investments etc. of certain pension schemes).</p>
</content>
</paragraph>
<paragraph>
<num>(4)</num>
<content>
<p>This paragraph requires the scheme to be a trust scheme which is treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act.</p>
</content>
</paragraph>
<paragraph>
<num>(5)</num>
<intro>
<p>This paragraph requires the scheme, or part of the scheme, to be either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>an occupational pension scheme which is—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>registered under section 153 of the Finance Act 2004, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(a) of Schedule 36 to that Act.</p>
</content>
</level>
</level>
</paragraph>
<paragraph>
<num>(6)</num>
<content>
<p>This paragraph requires the scheme to be an occupational pension scheme and Her Majesty’s Revenue and Customs to be satisfied under section 153 of the Finance Act 2004, that the scheme corresponds to a scheme registered by Her Majesty’s Revenue and Customs for the purposes of Part 4 of that Act.</p>
</content>
</paragraph>
</hcontainer>
<hcontainer name="regulation">
<heading>Personal pension schemes to which section 159 of the Act applies</heading>
<num>4.</num>
<intro>
<p>A personal pension scheme is a scheme to which section 159 of the Act applies at any time when the scheme, or a part of the scheme, is either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>registered under section 153 of the Finance Act 2004, or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(g) of Schedule 36 to that Act.</p>
</content>
</level>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-26">
<heading>Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991</heading>
<num>26.</num>
<paragraph eId="article-26-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Preservation of Benefit) Regulations (Northern Ireland) 1991
<authorialNote class="footnote" eId="f00045" marker="45">
<p>
<ref eId="c00147" href="http://www.legislation.gov.uk/id/nisr/1991/37">S.R. (NI) 1991 No. 37</ref>
to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-26-2">
<num>(2)</num>
<content>
<p>Omit regulation 23 (refunds of additional voluntary contributions).</p>
</content>
</paragraph>
</article>
<article eId="article-27">
<heading>Amendment of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 1996</heading>
<num>27.</num>
<paragraph eId="article-27-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 1996
<authorialNote class="footnote" eId="f00046" marker="46">
<p>
<ref eId="c00148" href="http://www.legislation.gov.uk/id/nisr/1996/94">S.R. (NI) 1996 No. 94</ref>
; relevant amending Regulations are
<ref eId="c00149" href="http://www.legislation.gov.uk/id/nisr/2005/433">S.R. (NI) 2005 No. 433</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-27-2">
<num>(2)</num>
<content>
<p>
<mod>
For regulation 5 (conditions on which appropriate policies of insurance may be commuted), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Conditions upon which appropriate policies of insurance may be commuted</heading>
<num>5.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>
The requirements referred to in section 28A(2)(c) of the Act
<authorialNote class="footnote" eId="f00047" marker="47">
<p>
<ref eId="c00150" href="http://www.legislation.gov.uk/id/ukpga/1993/49">1993 c. 49</ref>
; section 28A was inserted by Article 143(1) of the Pensions (Northern Ireland) Order 1995 (
<ref eId="c00151" href="http://www.legislation.gov.uk/id/nisi/1995/3213">S.I. 1995/3213 (N.I. 22)</ref>
).
</p>
</authorialNote>
(policy of insurance appropriate where commutation conditional on satisfying prescribed requirements) are that the amount secured by the policy of insurance may only be commuted if the amount payable is authorised by section 164 of the Finance Act 2004 (authorised member payments) and satisfies the requirements of paragraph (2) or (3), together with—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>paragraphs (4) to (6) if the lump sum payment qualifies as a pension commencement lump sum, or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>paragraph (7) if the lump sum payment qualifies as a serious ill-health lump sum.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<intro>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a serious ill-health lump sum for the purposes of paragraph 4 of that Part, or</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(3)</num>
<content>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act.</p>
</content>
</paragraph>
<paragraph>
<num>(4)</num>
<content>
<p>This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.</p>
</content>
</paragraph>
<paragraph>
<num>(5)</num>
<intro>
<p>The limit referred to in paragraph (4) must not exceed—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,</p>
</content>
</level>
<wrapUp>
<p>whichever is the lower.</p>
</wrapUp>
</paragraph>
<paragraph>
<num>(6)</num>
<content>
<p>For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.</p>
</content>
</paragraph>
<paragraph>
<num>(7)</num>
<intro>
<p>Where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>on the date he qualifies for the payment, the member has a spouse or civil partner, and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,</p>
</content>
</level>
<wrapUp>
<p>then this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.</p>
</wrapUp>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-27-3">
<num>(3)</num>
<content>
<p>In regulation 6 (other requirements applying to policies of insurance), in paragraph (1)(b) omit “, not being earlier than the age of 60,”.</p>
</content>
</paragraph>
</article>
<article eId="article-28">
<heading>Amendment of the Occupational Pension Schemes (Contracting-out) (Northern Ireland) Regulations 1996</heading>
<num>28.</num>
<paragraph eId="article-28-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996
<authorialNote class="footnote" eId="f00048" marker="48">
<p>
<ref eId="c00152" href="http://www.legislation.gov.uk/id/nisr/1996/493">S.R. (NI) 1996 No. 493</ref>
; relevant amending Regulations are
<ref eId="c00153" href="http://www.legislation.gov.uk/id/nisr/1997/160">S.R. (NI) 1997 No. 160</ref>
,
<ref eId="c00154" href="http://www.legislation.gov.uk/id/nisr/1999/486">S.R. (NI) 1999 No. 486</ref>
,
<ref eId="c00155" href="http://www.legislation.gov.uk/id/nisr/2000/336">S.R. (NI) 2000 No. 336</ref>
,
<ref eId="c00156" href="http://www.legislation.gov.uk/id/nisr/2001/118">S.R. (NI) 2001 No. 118</ref>
,
<ref eId="c00157" href="http://www.legislation.gov.uk/id/nisr/2002/109">S.R. (NI) 2002 No. 109</ref>
and
<ref eId="c00158" href="http://www.legislation.gov.uk/id/nisr/2005/171">S.R. (NI) 2005 Nos. 171</ref>
and
<ref eId="c00159" href="http://www.legislation.gov.uk/id/nisr/2005/433">433</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-28-2">
<num>(2)</num>
<intro>
<p>In regulation 1(2) (interpretation)—</p>
</intro>
<level class="para1" eId="article-28-2-a">
<num>(a)</num>
<content>
<p>in the definition of “administrator” for “resident” (in the second place where that word appears) to the end of that definition substitute “who is, or the persons who are, appointed in accordance with section 270 of the Finance Act 2004 (meaning of “scheme administrator”);”;</p>
</content>
</level>
<level class="para1" eId="article-28-2-b">
<num>(b)</num>
<content>
<p>omit the definition of “the Taxes Act”; and</p>
</content>
</level>
<level class="para1" eId="article-28-2-c">
<num>(c)</num>
<content>
<p>
<mod>
in the appropriate alphabetical places insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>
“the 2004 Act” means the Finance Act 2004
<authorialNote class="footnote" eId="f00049" marker="49">
<p>
<ref eId="c00160" href="http://www.legislation.gov.uk/id/ukpga/2004/12">2004 c. 12</ref>
.
</p>
</authorialNote>
</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
<p>
<mod>
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>“relevant statutory scheme” has the same meaning as in paragraph 1(1)(c) Schedule 36(1)(c) to the 2004 Act (deemed registration of existing schemes);</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-28-3">
<num>(3)</num>
<content>
<p>In regulation 12 (special provision for holding companies and subsidiaries) omit paragraphs (1)(b)(ii), (2)(b)(ii) and (2)(c)(ii).</p>
</content>
</paragraph>
<paragraph eId="article-28-4">
<num>(4)</num>
<content>
<p>
<mod>
In regulation 19 (lump sum benefits and salary-related contracted-out schemes) for the words “pension except—” to the end of that regulation, substitute—
<quotedText startQuote="">“pension except in accordance with—</quotedText>
<quotedStructure endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(a)</num>
<content>
<p>regulation 20 (payment of a lump sum instead of a pension payable under a relevant scheme), or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>regulation 60 (payment of a guaranteed minimum pension as a lump sum).</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-28-5">
<num>(5)</num>
<content>
<p>
<mod>
For regulation 20 (trivial commutation of benefits derived from section 5(2B) rights), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Payment of a lump sum instead of a pension payable under a relevant scheme</heading>
<num>20.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>
For the purposes of section 8C(1)(c) of the Act
<authorialNote class="footnote" eId="f00050" marker="50">
<p>
<ref eId="c00161" href="http://www.legislation.gov.uk/id/ukpga/1993/49">1993 c. 49</ref>
; section 8C was inserted by Article 133(5) of the Pensions (Northern Ireland) Order 1995.
</p>
</authorialNote>
(regulations may prohibit or restrict the payment of a lump sum instead of a pension under a relevant scheme except in prescribed circumstances or on prescribed conditions), a relevant scheme may not provide for the payment of a lump sum instead of a pension unless the payment to be made is authorised under section 164 of the 2004 Act (authorised member payments) and the payment is permitted either—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>by the lump sum rule in section 166 of that Act and qualifies as—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>a serious ill-health lump sum for the purposes of paragraph 4 of that Part;</p>
</content>
</level>
<level class="para2">
<num>(iii)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part;</p>
</content>
</level>
<level class="para2">
<num>(iv)</num>
<content>
<p>a winding-up lump sum for the purposes of paragraph 10 of that Part, or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>by the lump sum death benefit rule in section 168 of that Act and qualifies as—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.</p>
</content>
</level>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<intro>
<p>Where under the scheme—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>an earner qualifies for a lump sum payment on the ground of serious ill-health, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the earner’s widow, widower or surviving civil partner qualifies for a pension (“a survivor’s pension”),</p>
</content>
</level>
<wrapUp>
<p>the scheme must continue to include provision for a survivor’s pension notwithstanding the payment of a lump sum to the earner.</p>
</wrapUp>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-28-6">
<num>(6)</num>
<content>
<p>In regulation 21 (payable age in salary related contracted-out schemes) for “which” (in the second place where the word appears) to the end of that regulation substitute “which is permitted under section 164 of the 2004 Act.”.</p>
</content>
</paragraph>
<paragraph eId="article-28-7">
<num>(7)</num>
<content>
<p>
<mod>
In regulation 29 (schemes which cannot be certified under section 5(2B) of the Act), for paragraph (a) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<level class="para1">
<num>(a)</num>
<content>
<p>a scheme which is not registered under section 153 of the 2004 Act, unless it is, or was formerly, a relevant statutory scheme.</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-28-8">
<num>(8)</num>
<content>
<p>In regulation 40 (schemes which may not be contracted out under section 5(3) of the Act) for “an exempt approved scheme” to the end of that regulation substitute “registered under section 153 of the 2004 Act.”.</p>
</content>
</paragraph>
<paragraph eId="article-28-9">
<num>(9)</num>
<content>
<p>In regulation 48 (special provision for overseas schemes), in paragraph (3) for “for the” to the end of that paragraph substitute “who is appointed in accordance with section 270 of the 2004 Act (meaning of “scheme administrator”).”.</p>
</content>
</paragraph>
<paragraph eId="article-28-10">
<num>(10)</num>
<content>
<p>
<mod>
For regulation 60 (trivial commutation of guaranteed minimum pensions), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Payment of a guaranteed minimum pension as a lump sum</heading>
<num>60.</num>
<paragraph>
<num>(1)</num>
<intro>
<p>
For the purposes of section 17(1) of the Act
<authorialNote class="footnote" eId="f00051" marker="51">
<p>
<ref eId="c00162" href="http://www.legislation.gov.uk/id/ukpga/1993/49">1993 c. 49</ref>
; section 17(1) is substituted by Article 261(1) of the Pensions (Northern Ireland) Order 2005 (
<ref eId="c00163" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>
).
</p>
</authorialNote>
(payment of a lump sum instead of a pension in prescribed circumstances and subject to prescribed restrictions and conditions) the circumstances are where—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a guaranteed minimum pension has become payable, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>the payment of a lump sum is authorised under section 164 of the 2004 Act and the payment is permitted either—</p>
</intro>
<level class="para2">
<num>(i)</num>
<intro>
<p>by the lump sum rule in section 166 of that Act and qualifies as—</p>
</intro>
<level class="para3">
<num>(aa)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part, or</p>
</content>
</level>
<level class="para3">
<num>(bb)</num>
<content>
<p>a winding-up lump sum for the purposes of paragraph 10 of that Part, or</p>
</content>
</level>
</level>
<level class="para2">
<num>(ii)</num>
<intro>
<p>by the lump sum death benefit rule in section 168 of that Act and qualifies as—</p>
</intro>
<level class="para3">
<num>(aa)</num>
<content>
<p>a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or</p>
</content>
</level>
<level class="para3">
<num>(bb)</num>
<content>
<p>a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.</p>
</content>
</level>
</level>
</level>
</paragraph>
<paragraph>
<num>(2)</num>
<intro>
<p>
The condition in paragraph (1)(a) shall not apply in cases where the scheme is being wound up or an earner retires before pensionable age, and a premium under section 51(2) of the Act
<authorialNote class="footnote" eId="f00052" marker="52">
<p>
Section 51(2) was substituted by Article 138(1) of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 7(2) of Schedule 2 to the Welfare Reform and Pensions Act
<ref eId="c00164" href="http://www.legislation.gov.uk/id/ukpga/1999/30">1999 (c. 30)</ref>
.
</p>
</authorialNote>
(contributions equivalent premium) has been paid or treated as paid under Part VI or the scheme has made the provisions mentioned in section 12(2) and (3) of the Act
<authorialNote class="footnote" eId="f00053" marker="53">
<p>Section 12(3) was amended by paragraph 21(a) of Schedule 3 to the Pensions (Northern Ireland) Order 1995.</p>
</authorialNote>
(revaluation of earnings factors for purposes of section 10: early leavers, etc.), provided that—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>for the purposes of paragraph (1)(b), where the aggregate amount of the benefits which has accrued to the earner at the date of winding-up or, as the case may be, of his retirement, increased—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>in accordance with section 12 (2) and (3) of the 1993 Act, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>in a case where that section 12 (2) and (3) applies, to the amount that would have been payable at pensionable age,</p>
</content>
</level>
<wrapUp>
<p>that aggregate amount shall be treated as the amount of benefits currently payable to him under the scheme;</p>
</wrapUp>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>in the case of an earner who retires before normal pension age, commutation is not permitted before the date on which benefits become payable to the earner under the scheme’s early retirement provisions;</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>in cases where the earner is a member of more than one scheme relating to the same employment, all those schemes are being wound up or, as the case may be, he is treated by all those schemes as having retired and, in each case, all those schemes have paid a contributions equivalent premium or have made the provisions mentioned in section 12(2) and (3) of the Act.</p>
</content>
</level>
</paragraph>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-29">
<heading>Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996</heading>
<num>29.</num>
<paragraph eId="article-29-1">
<num>(1)</num>
<content>
<p>
Amend the Contracting-out (Transfer and Transfer Payment) Regulations (Northern Ireland) 1996
<authorialNote class="footnote" eId="f00054" marker="54">
<p>
<ref eId="c00165" href="http://www.legislation.gov.uk/id/nisr/1996/618">S.R. (NI) 1996 No. 618</ref>
to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-29-2">
<num>(2)</num>
<intro>
<p>In regulation 1(2) (interpretation) in the definition of ““connected employer transfer” and “connected employer transfer payment”“ in paragraph (b)—</p>
</intro>
<level class="para1" eId="article-29-2-a">
<num>(a)</num>
<content>
<p>in sub-paragraph (i) after the word “employers,” insert “or”;</p>
</content>
</level>
<level class="para1" eId="article-29-2-b">
<num>(b)</num>
<content>
<p>in sub-paragraph (ii) for “1986, or” substitute “1986;”, and</p>
</content>
</level>
<level class="para1" eId="article-29-2-c">
<num>(c)</num>
<content>
<p>omit sub-paragraph (iii).</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-30">
<heading>Amendment of the Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996</heading>
<num>30.</num>
<paragraph eId="article-30-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996
<authorialNote class="footnote" eId="f00055" marker="55">
<p>
<ref eId="c00166" href="http://www.legislation.gov.uk/id/nisr/1996/619">S.R. (NI) 1996 No. 619</ref>
; relevant amending Regulations are
<ref eId="c00167" href="http://www.legislation.gov.uk/id/nisr/1997/160">S.R. (NI) 1997 No. 160</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-30-2">
<num>(2)</num>
<intro>
<p>In regulation 12 (requirements to be met by receiving schemes, annuities and arrangements)—</p>
</intro>
<level class="para1" eId="article-30-2-a">
<num>(a)</num>
<content>
<p>
<mod>
for sub-paragraph (d) of paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(d)</num>
<content>
<p>if the scheme from which rights are transferred or from which a transfer payment is made is registered under section 153 of the Finance Act 2004, the scheme or personal pension scheme to which rights are transferred or to which a transfer payment in respect of rights is made is registered under that section (except a scheme which was immediately before 6th April 2006 approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988) or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004 (recognised transfers).</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-30-2-b">
<num>(b)</num>
<content>
<p>in sub-paragraph (b) of paragraph (2) for “of a kind” to the end of that sub-paragraph substitute “registered under section 153 of the Finance Act 2004, the annuity satisfies requirements of Her Majesty’s Revenue and Customs.”;</p>
</content>
</level>
<level class="para1" eId="article-30-2-c">
<num>(c)</num>
<content>
<p>omit paragraph (3);</p>
</content>
</level>
<level class="para1" eId="article-30-2-d">
<num>(d)</num>
<intro>
<p>in paragraph (5)—</p>
</intro>
<level class="para2" eId="article-30-2-d-i">
<num>(i)</num>
<content>
<p>in sub-paragraph (a) after “arrangement” (where the word first appears) omit “or a self-employed pension arrangement”,</p>
</content>
</level>
<level class="para2" eId="article-30-2-d-ii">
<num>(ii)</num>
<content>
<p>in sub-paragraph (b) omit “it is an overseas arrangement and”, and</p>
</content>
</level>
<level class="para2" eId="article-30-2-d-iii">
<num>(iii)</num>
<content>
<p>in sub-paragraph (c) for “is of a kind described” to the end of that sub-paragraph substitute “is registered under section 153 of the Finance Act 2004 or is a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004.”, and</p>
</content>
</level>
</level>
<level class="para1" eId="article-30-2-e">
<num>(e)</num>
<content>
<p>omit sub-paragraph (a) of paragraph (6).</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-31">
<heading>Amendment of the Occupational Pension Schemes (Indexation) Regulations (Northern Ireland) 1997</heading>
<num>31.</num>
<paragraph eId="article-31-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Indexation) Regulations (Northern Ireland) 1997
<authorialNote class="footnote" eId="f00056" marker="56">
<p>
<ref eId="c00168" href="http://www.legislation.gov.uk/id/nisr/1997/8">S.R. (NI) 1997 No. 8</ref>
to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-31-2">
<num>(2)</num>
<content>
<p>In regulation 1(2) (interpretation), in the definition of “pension scheme” for “scheme, a personal pension scheme” to the end of that definition substitute “scheme, or a personal pension scheme registered under section 153 of the Finance Act 2004;”.</p>
</content>
</paragraph>
</article>
<article eId="article-32">
<heading>Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997</heading>
<num>32.</num>
<paragraph eId="article-32-1">
<num>(1)</num>
<content>
<p>
Amend the Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997
<authorialNote class="footnote" eId="f00057" marker="57">
<p>
<ref eId="c00169" href="http://www.legislation.gov.uk/id/nisr/1997/56">S.R. (NI) 1997 No. 56</ref>
; relevant amending Regulations are
<ref eId="c00170" href="http://www.legislation.gov.uk/id/nisr/1997/160">S.R. (NI) 1997 No. 160</ref>
,
<ref eId="c00171" href="http://www.legislation.gov.uk/id/nisr/2002/109">S.R. (NI) 2002 No. 109</ref>
and
<ref eId="c00172" href="http://www.legislation.gov.uk/id/nisr/2005/433">S.R. (NI) 2005 No. 433</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-32-2">
<num>(2)</num>
<content>
<p>In paragraph (f) of regulation 3 (options under section 6(2) and (3) of the Pension Schemes (Northern Ireland) Act 1993 for schemes to designate which rights are protected rights) for “having the meanings” to the end of that paragraph substitute “have the meanings given to them by section 202(3) and (4) of the Finance Act 2004 (minimum contributions under pensions legislation).”.</p>
</content>
</paragraph>
<paragraph eId="article-32-3">
<num>(3)</num>
<content>
<p>
<mod>
In regulation 8 (giving effect to protected rights by provision of a lump sum) for paragraph (1), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>
For the purposes of section 24(4)(b)
<authorialNote class="footnote" eId="f00058" marker="58">
<p>
<ref eId="c00173" href="http://www.legislation.gov.uk/id/ukpga/1993/49">1993 c. 49</ref>
; section 24(4) was amended by paragraph 3(2) of Schedule 5 to the Child Support, Pensions and Social Security Act (Northern Ireland)
<ref eId="c00174" href="http://www.legislation.gov.uk/id/nia/2000/4">2000 (c. 4 (N.I.)</ref>
). Section 24(4) is also amended by Article 261(3) of the Pensions (Northern Ireland) Order 2005.
</p>
</authorialNote>
(effect may be given to protected rights by the provision of a lump sum but subject to prescribed restrictions), the restrictions are that the payment must be authorised under section 164 of the Finance Act 2004 (authorised member payments) and either paragraph (1A) or (1B) must be satisfied, together with—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>paragraphs (1C) to (1E) if the lump sum payment qualifies as a pension commencement lump sum, or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>paragraph (1F) if the lump sum payment qualifies as a serious ill-health lump sum.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(1A)</num>
<intro>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004 and qualifies as—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a pension commencement lump sum for the purposes of paragraph 1 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a serious ill-health lump sum for the purposes of paragraph 4 of that Part;</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>a trivial commutation lump sum for the purposes of paragraph 7 of that Part, or</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>a winding-up lump sum for the purposes of paragraph 10 of that Part.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(1B)</num>
<intro>
<p>This paragraph is satisfied if the lump sum payment is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a winding-up lump sum death benefit for the purposes of paragraph 21 of that Part.</p>
</content>
</level>
</paragraph>
<paragraph>
<num>(1C)</num>
<content>
<p>This paragraph is satisfied if the rules of the scheme impose a limit on the maximum payment which may be taken by way of a pension commencement lump sum from funds available for a member’s protected rights.</p>
</content>
</paragraph>
<paragraph>
<num>(1D)</num>
<intro>
<p>The limit referred to in paragraph (1C) must not exceed—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>25 per cent. of the member’s protected rights which are crystallised by the member’s benefit crystallisation event 6 and the relevant pension benefit crystallisation event connected with event 6 (“the member’s benefit crystallisation events”), or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>the amount which represents the proportion (expressed in percentage terms) of the value of the protected rights which is equal to the percentage that the pension commencement lump sum bears to the amount crystallised by the member’s benefit crystallisation events,</p>
</content>
</level>
<wrapUp>
<p>whichever is the lower.</p>
</wrapUp>
</paragraph>
<paragraph>
<num>(1E)</num>
<content>
<p>For the purpose of this regulation, section 216 of the Finance Act 2004 sets out the events which are benefit crystallisation events and the amount which is crystallised by such an event.</p>
</content>
</paragraph>
<paragraph>
<num>(1F)</num>
<intro>
<p>Where—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>under the scheme, a member qualifies for a lump sum payment on the ground of serious ill-health;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>on the date he qualifies for the payment, the member has a spouse or civil partner, and</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>the scheme also provides for the payment of a pension to a member’s widow, widower or surviving civil partner,</p>
</content>
</level>
<wrapUp>
<p>this paragraph is satisfied if the scheme retains a sum equal to at least one half of the value on that date of the funds required to provide for a member’s protected rights.</p>
</wrapUp>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-32-4">
<num>(4)</num>
<content>
<p>In regulation 10 (choice of insurance company by annuitant), in paragraph (a), in both sub-paragraph (i) and sub-paragraph (ii), omit “if that age is not less than 60 years”.</p>
</content>
</paragraph>
<paragraph eId="article-32-5">
<num>(5)</num>
<content>
<p>
<mod>
In regulation 12 (death of member before effect given to his protected rights), for paragraph (14), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(14)</num>
<intro>
<p>The lump sum referred to in paragraph (3) is one which—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>is permitted by the lump sum death benefit rule in section 168 of the Finance Act 2004 and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>is paid to the widow, widower or surviving civil partner where—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>effect is given to all the member’s protected rights by the payment of a lump sum, and</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<intro>
<p>either—</p>
</intro>
<level class="para3">
<num>(aa)</num>
<content>
<p>the member, when he died, had no rights under the scheme other than his protected rights, or</p>
</content>
</level>
<level class="para3">
<num>(bb)</num>
<content>
<p>effect is given to all those of his rights under the scheme which are not protected rights by the payment of a lump sum.</p>
</content>
</level>
</level>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-32-6">
<num>(6)</num>
<content>
<p>
<mod>
For regulation 17 (tax-exemption and tax-approval) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Tax registration</heading>
<num>17.</num>
<content>
<p>For the purposes of section 29 (tax requirements to prevail over certification requirements) “tax-exemption” and “tax-approval” mean tax registration under section 153 of the Finance Act 2004.</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-33">
<heading>Amendment of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997</heading>
<num>33.</num>
<paragraph eId="article-33-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997
<authorialNote class="footnote" eId="f00059" marker="59">
<p>
<ref eId="c00175" href="http://www.legislation.gov.uk/id/nisr/1997/153">S.R. (NI) 1997 No. 153</ref>
; relevant amending Regulations are
<ref eId="c00176" href="http://www.legislation.gov.uk/id/nisr/1999/309">S.R. (NI) 1999 No. 309</ref>
and
<ref eId="c00177" href="http://www.legislation.gov.uk/id/nisr/2002/109">S.R. (NI) 2002 No. 109</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-33-2">
<num>(2)</num>
<intro>
<p>In regulation 1(2) (interpretation)—</p>
</intro>
<level class="para1" eId="article-33-2-a">
<num>(a)</num>
<content>
<p>omit the definition of “approved scheme”;</p>
</content>
</level>
<level class="para1" eId="article-33-2-b">
<num>(b)</num>
<content>
<p>
<mod>
in the appropriate alphabetical places, insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>
“the 2004 Act” means the Finance Act 2004
<authorialNote class="footnote" eId="f00060" marker="60">
<p>
<ref eId="c00178" href="http://www.legislation.gov.uk/id/ukpga/2004/12">2004 c. 12</ref>
.
</p>
</authorialNote>
;
</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
<p>
<mod>
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>“normal minimum pension age” has the meaning given by section 279(1) of the 2004 Act;</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
<p>
<mod>
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<intro>
<p>“registered scheme” means—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>a scheme registered under section 153 of the 2004 Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>a scheme which was formerly registered under section 153 of that Act, or</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>a scheme which was formerly approved under section 590 or 591 of the Income and Corporation Taxes Act 1988 immediately before the 6th April 2006.</p>
</content>
</level>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-33-3">
<num>(3)</num>
<intro>
<p>In regulation 2 (commutation of a pension under an occupational pension scheme)—</p>
</intro>
<level class="para1" eId="article-33-3-a">
<num>(a)</num>
<content>
<p>
<mod>
for paragraph (1), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>
For the purposes of Article 89(5)(c)(ii) and (iii)
<authorialNote class="footnote" eId="f00061" marker="61">
<p>
<ref eId="c00179" href="http://www.legislation.gov.uk/id/nisi/1995/3213">S.I. 1995/3213 (N.I. 22)</ref>
; Article 89 was amended by paragraph 46 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (
<ref eId="c00180" href="http://www.legislation.gov.uk/id/nisi/1999/3147">S.I. 1999/3147 (N.I. 11)</ref>
).
</p>
</authorialNote>
(inalienability of occupational pension does not apply to commutation in prescribed circumstances) the prescribed circumstances are where—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>any amount payable as a lump sum to—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the earner is permitted by the lump sum rule in section 166 of the 2004 Act and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<intro>
<p>the scheme is being wound up and the aggregate amount of all benefits payable as a lump sum to—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the earner is permitted by the lump sum rule in section 166 of that Act and qualifies as a winding-up lump sum for the purposes of paragraph 10 of Part 1 of Schedule 29 to that Act, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the earner’s widow, widower or surviving civil partner is permitted by the lump sum death benefit rule in section 168 of that Act and qualifies as a winding-up lump sum death benefit for the purposes of paragraph 21 of Part 2 of Schedule 29 to that Act.</p>
</content>
</level>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-33-3-b">
<num>(b)</num>
<content>
<p>
<mod>
after paragraph (1A)
<authorialNote class="footnote" eId="f00062" marker="62">
<p>
Paragraph (1A) was inserted by regulation 8 of
<ref eId="c00181" href="http://www.legislation.gov.uk/id/nisr/2002/109">S.R. (NI) 2002 No. 109</ref>
.
</p>
</authorialNote>
insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(1B)</num>
<intro>
<p>There are also prescribed for the purposes of—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>Article 89(5)(c)(ii) the circumstances where the payment of a lump sum to a person is permitted in accordance with any of paragraphs (a) to (e) of the lump sum death benefit rule in section 168 of the 2004 Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>Article 89(5)(c)(iii) the circumstances where a person has reached normal minimum pension age but has not retired from the employment of the employer in relation to the scheme, the payment of a lump sum to the person is permitted in accordance with paragraph (a) or (g) of the lump sum rule in section 166 of the 2004 Act.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-33-3-c">
<num>(c)</num>
<content>
<p>omit paragraph (2);</p>
</content>
</level>
<level class="para1" eId="article-33-3-d">
<num>(d)</num>
<content>
<p>in paragraph (3) for “paragraph (1)(a)(ii)” substitute “paragraph (1)(b)”.</p>
</content>
</level>
</paragraph>
<paragraph eId="article-33-4">
<num>(4)</num>
<intro>
<p>In regulation 8 (exemptions from the inalienability and forfeiture provisions)—</p>
</intro>
<level class="para1" eId="article-33-4-a">
<num>(a)</num>
<content>
<p>in paragraph (3) for the word “approved” substitute the word “registered”; and</p>
</content>
</level>
<level class="para1" eId="article-33-4-b">
<num>(b)</num>
<content>
<p>
<mod>
after paragraph (5) add—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(6)</num>
<content>
<p>Article 89(1)(a) (inalienability of occupational pension) shall not apply to a scheme to the extent that it would prevent the making of any arrangement to effect a surrender of excess rights, at the option of the person in question, for the purposes of paragraph 12 of Schedule 36 to the 2004 Act (pension schemes etc: transitional provisions and savings).</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-34">
<heading>Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations (Northern Ireland) 1997</heading>
<num>34.</num>
<paragraph eId="article-34-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational Pension Schemes (Discharge of Liability) Regulations (Northern Ireland) 1997
<authorialNote class="footnote" eId="f00063" marker="63">
<p>
<ref eId="c00182" href="http://www.legislation.gov.uk/id/nisr/1997/159">S.R. (NI) 1997 No. 159</ref>
; relevant amending regulations are
<ref eId="c00183" href="http://www.legislation.gov.uk/id/nisr/1999/486">S.R. (NI) 1999 No. 486</ref>
and
<ref eId="c00184" href="http://www.legislation.gov.uk/id/nisr/2005/170">S.R. (NI) 2005 Nos. 170</ref>
and
<ref eId="c00185" href="http://www.legislation.gov.uk/id/nisr/2005/433">433</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-34-2">
<num>(2)</num>
<intro>
<p>In regulation 4 (conditions on which policies of insurance and annuity contracts may be commuted)—</p>
</intro>
<level class="para1" eId="article-34-2-a">
<num>(a)</num>
<content>
<p>
<mod>
for paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>The requirements referred to in section 15(4)(c) (policy of insurance or annuity contract appropriate where commutation conditional on satisfying prescribed requirements) are that—</p>
</intro>
<level class="para1">
<num>(a)</num>
<intro>
<p>the amount secured by the policy of insurance or annuity contract does not exceed the amount for the time being permitted for a lump sum payment by—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>the lump sum rule in section 166 of the Finance Act 2004 and qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>the lump sum death benefit rule in section 168 of that Act and qualifies as a trivial commutation lump sum death benefit for the purposes of paragraph 20 of Part 2 of Schedule 29 to that Act, or</p>
</content>
</level>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>subject to paragraph (2), the earner requests or consents to the amount secured by the policy of insurance or annuity contract being paid as a lump sum and that payment does not exceed the amount for the time being permitted for a lump sum payment by the lump sum rule in section 166 of that Act and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-34-2-b">
<num>(b)</num>
<content>
<p>in paragraph (2) omit “the earner’s and”;</p>
</content>
</level>
<level class="para1" eId="article-34-2-c">
<num>(c)</num>
<content>
<p>in paragraph (3) omit sub-paragraph (a), and</p>
</content>
</level>
<level class="para1" eId="article-34-2-d">
<num>(d)</num>
<content>
<p>omit paragraph (4).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-34-3">
<num>(3)</num>
<content>
<p>In regulation 11 (conditions on which liability to provide pensions under a relevant scheme may be discharged), in paragraph (3)(d)(i), omit “has attained the age of 50 and”.</p>
</content>
</paragraph>
</article>
<article eId="article-35">
<heading>Amendment of the Pensions on Divorce etc. (Provision of Information) (Northern Ireland) Regulations 2000</heading>
<num>35.</num>
<paragraph eId="article-35-1">
<num>(1)</num>
<content>
<p>
Amend the Pensions on Divorce etc. (Provision of Information) Regulations (Northern Ireland) 2000
<authorialNote class="footnote" eId="f00064" marker="64">
<p>
<ref eId="c00186" href="http://www.legislation.gov.uk/id/nisr/2000/142">S.R. (NI) 2000 No. 142</ref>
to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-35-2">
<num>(2)</num>
<content>
<p>In regulation 1(2) (interpretation) in the definition of “retirement annuity contract” for “approved” to the end of that definition substitute “which is to be treated as becoming a registered pension scheme under section 153(9) of the Finance Act 2004 in accordance with paragraph 1(1)(f) of Schedule 36 to that Act (deemed registration of existing schemes);”.</p>
</content>
</paragraph>
</article>
<article eId="article-36">
<heading>Amendment of the Pension Sharing (Valuation) Regulations (Northern Ireland) 2000</heading>
<num>36.</num>
<paragraph eId="article-36-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Valuation) Regulations (Northern Ireland) 2000
<authorialNote class="footnote" eId="f00065" marker="65">
<p>
<ref eId="c00187" href="http://www.legislation.gov.uk/id/nisr/2000/144">S.R. (NI) 2000 No. 144</ref>
; relevant amending Regulations are
<ref eId="c00188" href="http://www.legislation.gov.uk/id/nisr/2005/536">S.R. (NI) 2005 No. 536</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-36-2">
<num>(2)</num>
<content>
<p>In regulation 1(2) (interpretation) omit the definition of “relevant benefits”.</p>
</content>
</paragraph>
<paragraph eId="article-36-3">
<num>(3)</num>
<intro>
<p>In regulation 2 (rights under a pension arrangement which are not shareable)—</p>
</intro>
<level class="para1" eId="article-36-3-a">
<num>(a)</num>
<content>
<p>
<mod>
in paragraph (1)(b) for head (iv) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(iv)</num>
<content>
<p>dependants' income withdrawal within the meaning of paragraph 21 of Schedule 28 to the Finance Act 2004 (dependants' income withdrawal),</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-36-3-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (1)(c) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(c)</num>
<intro>
<p>any rights which will result in the payment of a benefit which is to be provided solely by reason of the—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>disablement, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>death,</p>
</content>
</level>
<wrapUp>
<p>due to an accident suffered by a person occurring during his pensionable service.</p>
</wrapUp>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-37">
<heading>Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000</heading>
<num>37.</num>
<paragraph eId="article-37-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000
<authorialNote class="footnote" eId="f00066" marker="66">
<p>
<ref eId="c00189" href="http://www.legislation.gov.uk/id/nisr/2000/145">S.R. (NI) 2000 No. 145</ref>
; relevant amending Regulations are
<ref eId="c00190" href="http://www.legislation.gov.uk/id/nisr/2000/335">S.R. (NI) 2000 No. 335</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-37-2">
<num>(2)</num>
<content>
<p>In regulation 6 (discharge of liability in respect of a pension credit following the death of the person entitled to a pension credit), in paragraph (2), for “Part XIV of the Income and Corporation Taxes Act 1988” substitute “Part 4 of the Finance Act 2004 (pension schemes etc)”.</p>
</content>
</paragraph>
<paragraph eId="article-37-3">
<num>(3)</num>
<intro>
<p>In regulation 8 (unfunded occupational pension schemes other than public service pension schemes)—</p>
</intro>
<level class="para1" eId="article-37-3-a">
<num>(a)</num>
<intro>
<p>in paragraph (1)—</p>
</intro>
<level class="para2" eId="article-37-3-a-i">
<num>(i)</num>
<content>
<p>in sub-paragraph (a) for the words “an approved” substitute “a registered”,</p>
</content>
</level>
<level class="para2" eId="article-37-3-a-ii">
<num>(ii)</num>
<content>
<p>in sub-paragraph (b) for the word “unapproved” substitute “unregistered”, and</p>
</content>
</level>
</level>
<level class="para1" eId="article-37-3-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (3) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(3)</num>
<intro>
<p>In this regulation—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>“registered scheme” means an occupational pension scheme which is registered under section 153 of the Finance Act 2004, and</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>“unregistered scheme” means an occupational pension scheme which is not a registered scheme under section 153 of that Act.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-37-4">
<num>(4)</num>
<intro>
<p>In regulation 15(5) (disqualification as a destination for pension credit-annuity contracts and insurance policies)—</p>
</intro>
<level class="para1" eId="article-37-4-a">
<num>(a)</num>
<content>
<p>in sub-paragraph (a) omit “, and the aggregate of those benefits does not exceed £260 per annum”; and</p>
</content>
</level>
<level class="para1" eId="article-37-4-b">
<num>(b)</num>
<content>
<p>
<mod>
for sub-paragraph (b) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(b)</num>
<intro>
<p>any lump sum payment—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>is permitted by the lump sum rule in section 166 of the Finance Act 2004, and</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of Schedule 29 to that Act, and</p>
</content>
</level>
</level>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-38">
<heading>Amendment of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000</heading>
<num>38.</num>
<paragraph eId="article-38-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000
<authorialNote class="footnote" eId="f00067" marker="67">
<p>
<ref eId="c00191" href="http://www.legislation.gov.uk/id/nisr/2000/146">S.R. (NI) 2000 No. 146</ref>
to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-38-2">
<num>(2)</num>
<intro>
<p>In regulation 3 (commutation of the whole of pension credit benefit)—</p>
</intro>
<level class="para1" eId="article-38-2-a">
<num>(a)</num>
<content>
<p>in paragraph (1) omit “paragraphs (3) and (4) and”;</p>
</content>
</level>
<level class="para1" eId="article-38-2-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (2), substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(2)</num>
<intro>
<p>The circumstances described in this paragraph are that the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and either—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act, or</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of that Schedule.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-38-2-c">
<num>(c)</num>
<content>
<p>omit paragraphs (3) and (4).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-38-3">
<num>(3)</num>
<intro>
<p>In regulation 4 (commutation of part of pension credit benefit)—</p>
</intro>
<level class="para1" eId="article-38-3-a">
<num>(a)</num>
<content>
<p>in sub-paragraph (b) of paragraph (1) for “approval or” to the end of that sub-paragraph substitute “the registration or continuing registration of the scheme under section 153 of the Finance Act 2004.”, and</p>
</content>
</level>
<level class="para1" eId="article-38-3-b">
<num>(b)</num>
<content>
<p>omit paragraph (4).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-38-4">
<num>(4)</num>
<intro>
<p>In regulation 21 (requirements of other pension arrangements)—</p>
</intro>
<level class="para1" eId="article-38-4-a">
<num>(a)</num>
<content>
<p>in sub-paragraph (c) of paragraph (1) omit “any of sub-paragraphs (a) to (e) of”, and</p>
</content>
</level>
<level class="para1" eId="article-38-4-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (2) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(2)</num>
<content>
<p>The kind of scheme mentioned in paragraph (1)(c) is a scheme which is registered under section 153 of the Finance Act 2004.</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
</article>
<article eId="article-39">
<heading>Amendment of the Pension Sharing (Safeguarded Rights) Regulations (Northern Ireland) 2000</heading>
<num>39.</num>
<paragraph eId="article-39-1">
<num>(1)</num>
<content>
<p>
Amend the Pension Sharing (Safeguarded Rights) Regulations (Northern Ireland) 2000
<authorialNote class="footnote" eId="f00068" marker="68">
<p>
<ref eId="c00192" href="http://www.legislation.gov.uk/id/nisr/2000/147">S.R. (NI) 2000 No. 147</ref>
to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-39-2">
<num>(2)</num>
<content>
<p>
<mod>
In regulation 9 (ways of giving effect to safeguarded rights – salary related schemes) for paragraph (9) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(9)</num>
<intro>
<p>For the purposes of paragraph (7)—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>the benefits secured for a beneficiary suffering from serious ill-health shall become payable only if the payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act;</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>“beneficiary” means a member of a salary related contracted-out scheme, in respect of whose safeguarded rights the trustees or managers of that scheme have discharged their liability by entering into an insurance policy or an annuity contract;</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>“incapacity” means physical or mental deterioration which is sufficiently serious to prevent a person from following his normal employment or which seriously impairs his earning capacity.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-39-3">
<num>(3)</num>
<content>
<p>
<mod>
For regulation 10 (payable age in salary related contracted-out schemes) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<hcontainer name="regulation">
<heading>Payable age in salary related contracted-out schemes</heading>
<num>10.</num>
<content>
<p>In respect of pension credit benefit arising out of safeguarded rights, schemes must provide for pension credit benefit to be paid by reference to an age which is equal for men and women and which, in the case of a scheme which is registered under section 153 of the Finance Act 2004, is permitted under the rules of that scheme in accordance with that registration.</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
</article>
<article eId="article-40">
<heading>Amendment of the Stakeholder Pension Schemes Regulations (Northern Ireland) 2000</heading>
<num>40.</num>
<paragraph eId="article-40-1">
<num>(1)</num>
<content>
<p>
Amend the Stakeholder Pension Schemes Regulations (Northern Ireland) 2000
<authorialNote class="footnote" eId="f00069" marker="69">
<p>
<ref eId="c00193" href="http://www.legislation.gov.uk/id/nisr/2000/262">S.R. (NI) 2000 No. 262</ref>
; relevant amending Regulations are
<ref eId="c00194" href="http://www.legislation.gov.uk/id/nisr/2001/13">S.R. (NI) 2001 Nos. 13</ref>
and
<ref eId="c00195" href="http://www.legislation.gov.uk/id/nisr/2001/119">119</ref>
and
<ref eId="c00196" href="http://www.legislation.gov.uk/id/nisr/2002/410">S.R. (NI) 2002 No. 410</ref>
.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-40-2">
<num>(2)</num>
<intro>
<p>In regulation 1 (citation, commencement and interpretation)—</p>
</intro>
<level class="para1" eId="article-40-2-a">
<num>(a)</num>
<intro>
<p>In paragraph (3)—</p>
</intro>
<level class="para2" eId="article-40-2-a-i">
<num>(i)</num>
<content>
<p>
<mod>
in the definition of “pension arrangement” for paragraph (c) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(c)</num>
<content>
<p>a qualifying recognised overseas pension scheme as defined in section 169 of the Finance Act 2004,</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-40-2-a-ii">
<num>(ii)</num>
<content>
<p>
<mod>
for the definition of “tax relief” substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>“tax relief has the meaning given by Chapter 4 of Part 4 of the Finance Act 2004 (registered pension schemes: tax reliefs and exemptions);</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
</level>
<level class="para1" eId="article-40-2-b">
<num>(b)</num>
<content>
<p>in paragraph (9) for ““tax-exemption”“ to the end of that paragraph substitute ““tax-registration” and “tax-registered” mean registration or, as the case may be, registered under section 153 of the Finance Act 2004.”.</p>
</content>
</level>
</paragraph>
<paragraph eId="article-40-3">
<num>(3)</num>
<content>
<p>
In regulation 3 (requirements applying to all stakeholder pension schemes as regards instruments establishing such schemes), in paragraphs (5A)
<authorialNote class="footnote" eId="f00070" marker="70">
<p>
Paragraph (5A) was inserted by regulation 3(3) of
<ref eId="c00197" href="http://www.legislation.gov.uk/id/nisr/2001/13">S.R. (NI) 2001 No. 13</ref>
and was amended by regulation 3(3) of
<ref eId="c00198" href="http://www.legislation.gov.uk/id/nisr/2001/119">S.R. (NI) 2001 No. 119</ref>
.
</p>
</authorialNote>
and (5B)
<authorialNote class="footnote" eId="f00071" marker="71">
<p>
Paragraph (5B) was inserted by regulation 3(4) of
<ref eId="c00199" href="http://www.legislation.gov.uk/id/nisr/2001/119">S.R. (NI) 2001 No. 119</ref>
.
</p>
</authorialNote>
, for “has tax-exemption or tax-approval” in both places substitute “maintains its tax-registration”.
</p>
</content>
</paragraph>
<paragraph eId="article-40-4">
<num>(4)</num>
<intro>
<p>In sub-paragraph (b) of regulation 6(4) (procedure for discharging rights on winding-up)—</p>
</intro>
<level class="para1" eId="article-40-4-a">
<num>(a)</num>
<content>
<p>for “tax-approval or tax-exemption” substitute “tax-registration”, and</p>
</content>
</level>
<level class="para1" eId="article-40-4-b">
<num>(b)</num>
<content>
<p>for “approval or exemption” substitute “registration”.</p>
</content>
</level>
</paragraph>
<paragraph eId="article-40-5">
<num>(5)</num>
<intro>
<p>In regulation 17 (restrictions on contributions)—</p>
</intro>
<level class="para1" eId="article-40-5-a">
<num>(a)</num>
<content>
<p>in paragraph (3), for “section 639” to “(tax reliefs: member’s contributions)” substitute “section 192 of the Finance Act 2004 (relief at source)”;</p>
</content>
</level>
<level class="para1" eId="article-40-5-b">
<num>(b)</num>
<content>
<p>in paragraph (4) for “tax-exemption” to the end of that paragraph substitute “tax-registration”, and</p>
</content>
</level>
<level class="para1" eId="article-40-5-c">
<num>(c)</num>
<content>
<p>
<mod>
after paragraph (4) insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(4A)</num>
<intro>
<p>The trustees or manager of a stakeholder pension scheme may refuse to accept any contribution by, or on behalf of any member of the scheme who—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>
has not given the declaration specified in regulation 5(2) of the Registered Pension Schemes (Relief at Source) Regulations 2005
<authorialNote class="footnote" eId="f00072" marker="72">
<p>
<ref eId="c00200" href="http://www.legislation.gov.uk/id/uksi/2005/3448">S.I. 2005/3448</ref>
.
</p>
</authorialNote>
(declaration of entitlement to tax relief in respect of net contributions), or
</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>is not a relevant UK individual for the purposes of section 189 of the Finance Act 2004 for the tax year in respect of which the contribution is made.</p>
</content>
</level>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-40-6">
<num>(6)</num>
<intro>
<p>In regulation 18 (disclosure of information to members)—</p>
</intro>
<level class="para1" eId="article-40-6-a">
<num>(a)</num>
<content>
<p>
<mod>
for sub-paragraph (n) of paragraph (5) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(n)</num>
<content>
<p>any amount paid to the member by way of income withdrawal or dependants' income withdrawal as defined in paragraph 7 or, as the case may be, 21 of Schedule 28 to the Finance Act 2004 (income withdrawal or dependants' income withdrawal);</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-40-6-b">
<num>(b)</num>
<intro>
<p>
in sub-paragraph (b) of paragraph (5D)
<authorialNote class="footnote" eId="f00073" marker="73">
<p>
Paragraph (5D) was inserted by regulation 4(3)(b) of
<ref eId="c00201" href="http://www.legislation.gov.uk/id/nisr/2002/410">S.R. (NI) 2002 No. 410</ref>
.
</p>
</authorialNote>
</p>
</intro>
<level class="para2" eId="article-40-6-b-i">
<num>(i)</num>
<content>
<p>
<mod>
for head (ii) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para2">
<num>(ii)</num>
<content>
<p>the scheme maintains its tax registration under section 153 of the Finance Act 2004, and</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-40-6-b-ii">
<num>(ii)</num>
<content>
<p>in head (iii) for “the Inland Revenue” substitute “Her Majesty’s Revenue and Customs”, and</p>
</content>
</level>
</level>
<level class="para1" eId="article-40-6-c">
<num>(c)</num>
<content>
<p>
<mod>
for paragraph (10)
<authorialNote class="footnote" eId="f00074" marker="74">
<p>
Paragraph (10) was numbered by regulation 13(9) of
<ref eId="c00202" href="http://www.legislation.gov.uk/id/nisr/2001/119">S.R. (NI) 2001 No. 119</ref>
.
</p>
</authorialNote>
substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(10)</num>
<content>
<p>For the purposes of this regulation “member” shall include a dependant making income withdrawals from the scheme in accordance with paragraph 21 of Schedule 28 to the Finance Act 2004.</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-40-7">
<num>(7)</num>
<content>
<p>
In regulation 25(2)(e)(i)
<authorialNote class="footnote" eId="f00075" marker="75">
<p>
Sub-paragraph (e) was inserted by regulation 17(3)(d) of
<ref eId="c00203" href="http://www.legislation.gov.uk/id/nisr/2001/119">S.R. (NI) 2001 No. 119</ref>
.
</p>
</authorialNote>
(disclosure of information to relevant employees) for the words “tax-exemption or tax-approval” substitute “tax-registration”.
</p>
</content>
</paragraph>
</article>
<article eId="article-41">
<heading>Amendment of the Occupational and Personal Pension Schemes (Bankruptcy) Regulations (Northern Ireland) 2002</heading>
<num>41.</num>
<paragraph eId="article-41-1">
<num>(1)</num>
<content>
<p>
Amend the Occupational and Personal Pension Schemes (Bankruptcy) Regulations (Northern Ireland) 2002
<authorialNote class="footnote" eId="f00076" marker="76">
<p>
<ref eId="c00204" href="http://www.legislation.gov.uk/id/nisr/2002/127">S.R. (NI) 2002 No. 127</ref>
, to which there are amendments not relevant to these Regulations.
</p>
</authorialNote>
as follows.
</p>
</content>
</paragraph>
<paragraph eId="article-41-2">
<num>(2)</num>
<intro>
<p>In regulation 1(2) (interpretation)—</p>
</intro>
<level class="para1" eId="article-41-2-a">
<num>(a)</num>
<content>
<p>
<mod>
for the definition of “relevant benefits” substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<intro>
<p>“relevant benefits” means any pension, lump sum, gratuity or other like benefit which is, or is to be, provided—</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>by reason, or in anticipation, of retirement,</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>by reason of death,</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>by reason of a pension sharing order or provision,</p>
</content>
</level>
<level class="para1">
<num>(d)</num>
<content>
<p>in connection with past service,</p>
</content>
</level>
<level class="para1">
<num>(e)</num>
<content>
<p>after retirement or death,</p>
</content>
</level>
<level class="para1">
<num>(f)</num>
<content>
<p>in anticipation of, or in connection with, any change in the nature of the service of the employee in question,</p>
</content>
</level>
<wrapUp>
<p>but does not include any benefit which is to be provided solely by reason of the disablement or death due to an accident suffered by a person during his pensionable service;</p>
</wrapUp>
</hcontainer>
</quotedStructure>
<inline name="appendText">; and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-41-2-b">
<num>(b)</num>
<content>
<p>
<mod>
in the appropriate alphabetical places insert—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>
“the 2003 Act” means the Income Tax (Earnings and Pensions) Act 2003
<authorialNote class="footnote" eId="f00077" marker="77">
<p>
<ref eId="c00205" href="http://www.legislation.gov.uk/id/ukpga/2003/1">2003 c. 1</ref>
.
</p>
</authorialNote>
;
</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
<p>
<mod>
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>
“the 2004 Act” means the Finance Act 2004
<authorialNote class="footnote" eId="f00078" marker="78">
<p>
<ref eId="c00206" href="http://www.legislation.gov.uk/id/ukpga/2004/12">2004 c. 12</ref>
.
</p>
</authorialNote>
;
</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
<p>
<mod>
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<hcontainer name="definition">
<content>
<p>
“employer-financed retirement benefit scheme” has the same meaning given by section 393A of the 2003 Act
<authorialNote class="footnote" eId="f00079" marker="79">
<p>Section 393A was inserted by section 249(3) of the Finance Act 2004.</p>
</authorialNote>
;
</p>
</content>
</hcontainer>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</level>
</paragraph>
<paragraph eId="article-41-3">
<num>(3)</num>
<intro>
<p>In regulation 2 (prescribed pension arrangements)—</p>
</intro>
<level class="para1" eId="article-41-3-a">
<num>(a)</num>
<intro>
<p>in paragraph (1)—</p>
</intro>
<level class="para2" eId="article-41-3-a-i">
<num>(i)</num>
<content>
<p>in head (i) of sub-paragraph (a) for “foreign emoluments which” to the end of that head substitute “earnings which have been allowed as a deduction under paragraph 51 of Schedule 36 to the 2004 Act (individuals with pre-commencement entitlement to corresponding relief),”,</p>
</content>
</level>
<level class="para2" eId="article-41-3-a-ii">
<num>(ii)</num>
<content>
<p>
<mod>
for sub-paragraph (b) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(b)</num>
<intro>
<p>made with a scheme which is an occupational pension scheme—</p>
</intro>
<level class="para2">
<num>(i)</num>
<content>
<p>registered under section 153 of the 2004 Act, or</p>
</content>
</level>
<level class="para2">
<num>(ii)</num>
<content>
<p>which is to be treated as becoming a registered pension scheme under section 153(9) of the 2004 Act in accordance with Part 1 of Schedule 36 to that Act (pre-commencement pension schemes);</p>
</content>
</level>
</level>
</quotedStructure>
<inline name="appendText">,</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-41-3-a-iii">
<num>(iii)</num>
<content>
<p>
<mod>
for sub-paragraph (c) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<level class="para1">
<num>(c)</num>
<content>
<p>
to which section 308A of the 2003 Act
<authorialNote class="footnote" eId="f00080" marker="80">
<p>Section 308A was inserted by paragraph 3 of Schedule 33 to the Finance Act 2004.</p>
</authorialNote>
(exemption of contributions to overseas pension scheme) applies;
</p>
</content>
</level>
</quotedStructure>
<inline name="appendText">;</inline>
</mod>
</p>
</content>
</level>
<level class="para2" eId="article-41-3-a-iv">
<num>(iv)</num>
<content>
<p>in sub-paragraph (d) for “section 614, 615 or 616 of the Taxes Act” to the end of that sub-paragraph substitute “section 614 or 615 of the Taxes Act (exemptions and reliefs in respect of income from investments etc. of certain pension schemes and other overseas pensions), or section 629, 630 or 643 of the 2003 Act (pre-1973 pensions paid under the Overseas Pensions Act 1973 and Malawi, Trinidad and Tobago and Zambia government pensions),”,</p>
</content>
</level>
<level class="para2" eId="article-41-3-a-v">
<num>(v)</num>
<content>
<p>omit sub-paragraph (f),</p>
</content>
</level>
</level>
<level class="para1" eId="article-41-3-b">
<num>(b)</num>
<content>
<p>
<mod>
for paragraph (2) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">
<paragraph>
<num>(2)</num>
<content>
<p>Paragraph (1)(e) does not apply to any employer-financed retirement benefits scheme arrangement which has been provided to an employee as part of or in addition to any pension arrangement referred to in paragraph (1)(e).</p>
</content>
</paragraph>
</quotedStructure>
<inline name="appendText">, and</inline>
</mod>
</p>
</content>
</level>
<level class="para1" eId="article-41-3-c">
<num>(c)</num>
<content>
<p>omit sub-paragraphs (a) and (d) of paragraph (3).</p>
</content>
</level>
</paragraph>
<paragraph eId="article-41-4">
<num>(4)</num>
<content>
<p>
<mod>
In regulation 3 (unapproved pension arrangements) for paragraph (1) substitute—
<quotedStructure startQuote="" endQuote="" uk:context="body" uk:docName="uksi" ukl:TargetClass="secondary" ukl:TargetSubClass="regulation" ukl:Context="main" ukl:Format="default">
<paragraph>
<num>(1)</num>
<intro>
<p>
For the purposes of Article 13 of the 1999 Order
<authorialNote class="footnote" eId="f00081" marker="81">
<p>
<ref eId="c00207" href="http://www.legislation.gov.uk/id/nisi/1999/3147">S.I. 1999/3147 (N.I. 11)</ref>
.
</p>
</authorialNote>
(effect of bankruptcy on pension rights: unapproved arrangements), a pension arrangement falling within—
</p>
</intro>
<level class="para1">
<num>(a)</num>
<content>
<p>section 157 of the 2004 Act (de-registration);</p>
</content>
</level>
<level class="para1">
<num>(b)</num>
<content>
<p>paragraphs 52 to 57 of Schedule 36 to that Act, or</p>
</content>
</level>
<level class="para1">
<num>(c)</num>
<content>
<p>section 393A of the 2003 Act,</p>
</content>
</level>
<wrapUp>
<p>shall be an “unapproved pension arrangement” if it satisfies the conditions specified in paragraph (2).</p>
</wrapUp>
</paragraph>
</quotedStructure>
<inline name="appendText">.</inline>
</mod>
</p>
</content>
</paragraph>
<paragraph eId="article-41-5">
<num>(5)</num>
<content>
<p>In head (ii) of sub-paragraph (a) of regulation 5(1) (exclusion orders) for “3(1)(a) or (b)” to the end of that head substitute “3(1)(a), the date, if later than that referred to in head (i), on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the 2004 Act, or”.</p>
</content>
</paragraph>
<paragraph eId="article-41-6">
<num>(6)</num>
<content>
<p>In sub-paragraph (b) of regulation 6(1) (qualifying agreements), for “3(1)(a) or (b)” to the end of that sub-paragraph substitute “3(1)(a), the date, if later than that referred to in sub-paragraph (a), on which any rights of the bankrupt vest in the trustee in bankruptcy on the de-registration of the scheme by Her Majesty’s Revenue and Customs by virtue of section 157 of the 2004 Act.”.</p>
</content>
</paragraph>
</article>
</part>
<hcontainer name="signatures">
<hcontainer name="signatureBlock">
<content>
<block name="signature">
<signature refersTo="#">Tom Watson</signature>
</block>
<block name="signature">
<signature refersTo="#">Vernon Coaker</signature>
</block>
<block name="role">
<role refersTo="#">Two of the Lords Commissioners of Her Majesty’s Treasury</role>
</block>
<block name="date">
<date date="2006-03-14">14th March 2006</date>
</block>
</content>
</hcontainer>
</hcontainer>
</body>
<conclusions>
<blockContainer class="explanatoryNote">
<subheading>(This note is not part of the Order)</subheading>
<blockContainer ukl:Name="P">
<p>
This Order amends various Regulations as a consequence of changes to the tax system in relation to pension schemes made by Part 4 of the Finance Act
<ref eId="c00001" href="http://www.legislation.gov.uk/id/ukpga/2004/12">2004 (c. 12)</ref>
which is due to come into force on 6th April 2006.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>This Order applies to Great Britain and Northern Ireland. It makes provision for the tax registration of occupational and personal pension schemes and prescribes the circumstances in which an occupational pension may be commuted.</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>Part 2 of this Order, which consists of articles 2 to 21, applies to Great Britain.</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 2 amends the Occupational Pension Schemes (Managers) Regulations 1986 (
<ref eId="c00002" href="http://www.legislation.gov.uk/id/uksi/1986/1718">S.I. 1986/1718</ref>
) to prescribe the person who is to be treated as the manager of a scheme established outside the United Kingdom.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 3 amends the Personal Pension Schemes (Disclosure of Information) Regulations 1987 (
<ref eId="c00003" href="http://www.legislation.gov.uk/id/uksi/1987/1110">S.I. 1987/1110</ref>
) to make provision for the registration of schemes.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 4 amends the Personal Pension Schemes (Transfer Values) Regulations 1987 (
<ref eId="c00004" href="http://www.legislation.gov.uk/id/uksi/1987/1112">S.I. 1987/1112</ref>
) to prescribe that a member’s transfer credits and rights must be acquired under a registered scheme.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 5 amends the Personal and Occupational Pension Schemes (Perpetuities) Regulations 1990 (
<ref eId="c00005" href="http://www.legislation.gov.uk/id/uksi/1990/1143">S.I. 1990/1143</ref>
) to substitute new regulations 3 and 4. The new regulations prescribe the schemes excepted from the rules of law relating to perpetuities.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 6 amends the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (
<ref eId="c00006" href="http://www.legislation.gov.uk/id/uksi/1991/167">S.I. 1991/167</ref>
) so as to revoke regulation 23.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 7 substitutes a new regulation 5 in the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations 1996 (
<ref eId="c00007" href="http://www.legislation.gov.uk/id/uksi/1996/775">S.I. 1996/775</ref>
) enabling the amount secured by a policy of insurance in respect of a member’s protected rights to be commuted where the payment satisfies requirements contained in the Finance Act 2004 for lump sum payments by pension schemes.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 8 amends the Occupational Pension Schemes (Contracting-out) Regulations 1996 (
<ref eId="c00008" href="http://www.legislation.gov.uk/id/uksi/1996/1172">S.I. 1996/1172</ref>
) to prescribe that an unregistered scheme cannot be a contracted-out scheme or certified as a salary-related contracted-out scheme. Also, it enables benefits which are payable under an occupational pension scheme to be commuted into lump sum payments in certain circumstances.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 9 amends the interpretation provision of the Contracting-out (Transfer and Transfer Payment) Regulations 1996 (
<ref eId="c00009" href="http://www.legislation.gov.uk/id/uksi/1996/1462">S.I. 1996/1462</ref>
).
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 10 amends the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (
<ref eId="c00010" href="http://www.legislation.gov.uk/id/uksi/1996/1537">S.I. 1996/1537</ref>
) to substitute new definitions of “employee share” and “grossed-up equivalent”. The amendment further enables a member’s protected rights to be commuted into a lump sum payment if the payment satisfies the requirements for lump sum payments by pension schemes contained in the Finance Act 2004.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 11 amends the interpretation provision of the Occupational Pension Schemes (Indexation) Regulations 1996 (
<ref eId="c00011" href="http://www.legislation.gov.uk/id/uksi/1996/1679">S.I. 1996/1679</ref>
).
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 12 amends the Occupational Pension Schemes (Transfer Values) Regulations 1996 (
<ref eId="c00012" href="http://www.legislation.gov.uk/id/uksi/1996/1847">S.I. 1996/1847</ref>
) to provide for registered schemes and prescribe the requirement an annuity must satisfy.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 13 amends the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 (
<ref eId="c00013" href="http://www.legislation.gov.uk/id/uksi/1997/784">S.I. 1997/784</ref>
) and prescribes the requirements which must be satisfied before the amount secured by a policy of insurance or annuity contract may be commuted.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 14 amends the Occupational Pension Schemes (Assignment, Forfeiture and Bankruptcy etc.) Regulations 1997 (
<ref eId="c00014" href="http://www.legislation.gov.uk/id/uksi/1997/785">S.I. 1997/785</ref>
) to modify the interpretation provision and prescribe a further exception from the inalienability provisions and the circumstances in which an occupational pension may be commuted.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 15 amends the interpretation provision of the Pensions on Divorce etc. (Provision of Information) Regulations 2000 (
<ref eId="c00015" href="http://www.legislation.gov.uk/id/uksi/2000/1048">S.I. 2000/1048</ref>
).
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 16 amends the Pension Sharing (Valuation) Regulations 2000 (
<ref eId="c00016" href="http://www.legislation.gov.uk/id/uksi/2000/1052">S.I. 2000/1052</ref>
) to modify the interpretation provision and prescribe the rights which are not shareable.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 17 amends the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000 (
<ref eId="c00017" href="http://www.legislation.gov.uk/id/uksi/2000/1053">S.I. 2000/1053</ref>
) to prescribe a further condition on which liability may be discharged in relation to pension credit benefit and to enable an occupational pension to be commuted. For an annuity contract or insurance policy to be a destination for a pension credit, it must provide that benefits secured by the contract or policy may be commuted if the payment qualifies as a trivial commutation lump sum payment under the Finance Act 2004.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 18 amends the Pension Sharing (Pension Credit Benefit) Regulations 2000 (
<ref eId="c00018" href="http://www.legislation.gov.uk/id/uksi/2000/1054">S.I. 2000/1054</ref>
) to make provision for the registration of schemes. In addition, it enables schemes to provide for the payment of pension credit benefit in the form of a lump sum before normal benefit age where the payment qualifies as either a serious ill-health lump sum payment or a trivial commutation lump sum payment under the Finance Act 2004.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 19 amends the Pension Sharing (Safeguarded Rights) Regulations 2000 (
<ref eId="c00019" href="http://www.legislation.gov.uk/id/uksi/2000/1055">S.I. 2000/1055</ref>
) to substitute new regulation 10 which specifies the circumstances in which pension credit benefit arising from safeguarded rights can be paid by a registered scheme. Also, it requires benefits payable in consequence of serious ill-health to have satisfied provisions of the Finance Act 2004 for the commutation of lump sum payments.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 20 amends the Stakeholder Pension Schemes Regulations 2000 (
<ref eId="c00020" href="http://www.legislation.gov.uk/id/uksi/2000/1403">S.I. 2000/1403</ref>
) to make provision for registered schemes.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
Article 21 amends the Occupational and Personal Pension Schemes (Bankruptcy) (No. 2) Regulations 2002 (
<ref eId="c00021" href="http://www.legislation.gov.uk/id/uksi/2002/836">S.I. 2002/836</ref>
) to substitute new arrangements which qualify as “approved pension arrangements” and “unapproved pension arrangements”.
</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>Part 3, which consists of articles 22 to 41, applies to Northern Ireland.</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>Articles 22 to 41 provide for the tax registration of schemes and prescribes the circumstances in which occupational pension may be commuted in like manner to the provisions which apply to Great Britain by virtue of articles 2 to 21.</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>A full regulatory impact assessment of the effect that the provisions relating to the tax registration of schemes will have on the cost of businesses, charities and the voluntary sector has been prepared. Copies may be obtained from the Pensions Correspondence Unit, HM Revenue and Customs, 1st Floor, Ferrers House, PO Box 38, Castle Meadow Road, Nottingham NG2 1BB.</p>
</blockContainer>
<blockContainer ukl:Name="P">
<p>
An assessment of the impact on business, charities or the voluntary sector of the provisions relating to the commutation of occupational pensions was included in the Regulatory Impact Assessment relating to the Pensions Act
<ref eId="c00022" href="http://www.legislation.gov.uk/id/ukpga/2004/35">2004 (c. 35)</ref>
. A copy of that assessment has been placed in the libraries of both Houses of Parliament. Copies may be obtained from the Department for Work and Pensions, Regulatory Impact Unit, level 3, Adelphi, 1-11 John Adam Street, London WC2N 6HT.
</p>
</blockContainer>
</blockContainer>
</conclusions>
</act>
</akomaNtoso>