The European Parliamentary (United Kingdom Representatives) Pensions (Amendment) Order 2006

Benefits which may be provided

18.—(1) Article 7 of the AVC Order(1) (benefits which may be provided) is amended as specified in paragraphs (2) to (5).

(2) For paragraph (1) substitute—

“(1) A contributor will be entitled to such benefits as—

(a) are secured by the contributions paid by the contributor and by any transfer value accepted under article 5(5), and

(b) are benefits for which a registered pension scheme that is a money purchase arrangement for the purposes of Part 4 of the Finance Act 2004 (see section 152(2) of that Act) is authorised to make payments under section 160(1) of the Finance Act 2004.”.

(3) In paragraph (2) (death in service benefits)—

(a) at the beginning insert “In particular, but without prejudice to the generality of paragraph (1),”

(b) in sub-paragraph (a) at the beginning insert “in the case of a contributor who dies before reaching the age of 75,”,

(c) in sub-paragraph (b)—

(i) for “retirement benefits” substitute “pension benefits and any transfer values accepted under article 5(5)”,

(ii) after “by the contributor” insert “and any transfer value accepted under article 5(5)”, and

(d) in sub-paragraph (c) for “spouse” substitute “adult survivor”.

(4) In paragraph (3) (benefits at or after retirement)—

(a) in sub-paragraph (a)—

(i) at the beginning insert “In particular, but without prejudice to the generality of paragraph (1),”

(ii) for “after retirement” substitute “after he becomes entitled to the payment of a pension under this Order”, and

(iii) omit “and” at the end,

(b) in sub-paragraph (b)(ii) for the words “being paid in one lump sum on death” substitute “being paid, in the case of a participant who dies before reaching the age of 75, in one lump sum on death”, and

(c) after sub-paragraph (b) insert—

“(c) if a pension is secured under sub-paragraph (b), a lump sum payable to the contributor at the time that pension becomes payable not exceeding the permitted maximum, as defined in paragraph 2 of Schedule 29 to the Finance Act 2004 (which is usually the applicable amount, as defined in paragraph 3(6) of that Schedule); and

(d) a lump sum meeting the conditions required for it to be a lifetime allowance excess lump sum for the purposes of Part 4 of the Finance Act 2004 (see paragraph 11 of Schedule 29 to the Finance Act 2004).”.

(5) For paragraph (5) substitute—

“(5) A pension under paragraph (3)(b) must commence—

(a) not later than the day before the contributor’s 75th birthday; and

(b) not earlier than the earlier of—

(i) the date on which the contributor becomes entitled to receive a pension under article 7 of the principal Order and

(ii) the day mentioned in sub-paragraph (a).”.

(6) In article 8 of the AVC Order (payment of lump sums on death) omit paragraph (3) (payment to contributor’s personal representatives of any part of a lump sum payable on his death that has not been paid within 2 years of the death).

(7) In article 9 of the AVC Order (purchase of pensions) for paragraph (1)(2) substitute—

“(1) At least six months before the date on which a contributor would like a pension to come into payment or at such later time before that date as the Managers allow, the contributor shall specify in writing to the Managers—

(a) the pension or pensions which are to be purchased on his behalf or on behalf of his dependants, and

(b) where a pension is to be purchased on his behalf and he would also like a lump sum to be paid to him or he wishes a sum that is a lifetime allowance excess lump sum for the purposes of Part 4 of the Finance Act 2004 to be paid to him—

(i) that that is the case, and

(ii) the amount he would like to be paid as a lump sum.”.

(1)

Article 7 was amended, with retrospective effect as from 19 July 2004, by article 3 of S.I. 2004/2418.

(2)

Article 9(1) was amended, with retrospective effect from 19 July 2004, by S.I. 2004/2418.