2013 No. 1117
The Pension Protection Fund (Tax) (Amendment) Regulations 2013
Made
Laid before the House of Commons
Coming into force
The Treasury make the following Regulations in exercise of the powers conferred by section 102 of the Finance Act 20051.
Citation and commencement1
These Regulations may be cited as the Pension Protection Fund (Tax) (Amendment) Regulations 2013 and come into force on 31st May 2013.
Amendment of the Pension Protection Fund (Tax) Regulations 2006
2
The Pension Protection Fund (Tax) Regulations 20062 are amended as follows.
3
1
2
In regulation 2(3) in the definition of “the pension compensation provisions” for paragraphs (a) and (b) substitute—
a
in England, Wales and Scotland is to be construed in accordance with section 108 of PA 2008 (interpretation), and
b
in Northern Ireland is to be construed in accordance with section 87 of P(No. 2)A(NI) 2008 (interpretation);
3
In regulation 2(3) in the definition of “periodic compensation”—
a
in paragraph (a) after “(pension compensation provisions)” insert “or, as the case may be, Schedule 5 to PA 20085 (pension compensation payable on discharge of pension compensation credit)”, and
b
in paragraph (b) after “(pension compensation provisions)” insert “or, as the case may be, Schedule 4 to P(No. 2)A(NI) 20086 (pension compensation payable on discharge of pension compensation credit)”.
4
In regulation 2(3) after the definition of “periodic compensation” insert—
“PPF money purchase lump sum”—
- a
in England, Wales and Scotland has the meaning given by regulation 1(2) of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006 (citation, commencement and interpretation)7, and
- b
in Northern Ireland has the meaning given by regulation 1(2) of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations (Northern Ireland) 2006 (citation, commencement and interpretation)8.
4
At the end of regulation 5(a) omit “or” and at the end of regulation 5(b) insert—
, or
c
an individual who receives a PPF money purchase lump sum.
5
At the end of regulation 6(2)(a) omit “or” and at the end of regulation 6(2)(b) insert—
, or
c
receives a PPF money purchase lump sum.
6
For regulation 6(3) substitute—
3
An arrangement is specified for the purposes of this paragraph if—
a
in relation to an individual falling within paragraph (2)(a) or (b), it is an arrangement under which the individual receives (or, as the case may be, expects to receive)—
i
compensation paid under Schedule 7 to the Pensions Act9 or, as the case may be, Schedule 5 to PA 2008 (pension compensation provisions), or
ii
compensation paid under Schedule 6 to the Pensions Order10 or, as the case may be, Schedule 4 to P(No. 2)A(NI) 2008 (pension compensation provisions), or
b
in relation to an individual falling within paragraph (2)(c), it is an arrangement under which the individual receives a PPF money purchase lump sum.
7
At the end of regulation 8(b) insert—
;
c
a payment of a PPF money purchase lump sum.
8
For regulation 14(2) substitute—
2
In paragraph (1) a “qualifying individual” means—
a
an individual who was a member of a scheme for which the Board of the Pension Protection Fund has assumed responsibility, or
b
an individual who was a transferee entitled to a pension compensation credit referred to in section 111(1) of PA 2008 or section 89(1) of P(No. 2)A(NI) 2008 (creation of pension compensation debits and credits).
9
After regulation 23 insert—
23A
Section 220 of FA 200411 (pension credits from previously crystallised rights) applies as if, in relation to the Pension Protection Fund—
a
in subsection (4) for “or Article 26(1) of WRP(NI)O 199912” there were substituted “, Article 26(1) of WRP(NI)O 1999, section 111(1) of the Pensions Act 2008 or section 89(1) of the Pensions (No. 2) Act (Northern Ireland) 2008”,
b
in subsection (4A)(a) for “or Article 26(2) or (3)(b) of WRP(NI)O 1999” there were substituted “, Article 26(2) or (3)(b) of WRP(NI)O 1999, section 111(2)(a) or (b)(ii) of the Pensions Act 2008 or section 89(2)(a) or (b)(ii) of the Pensions (No. 2) Act (Northern Ireland) 2008”, and
c
in subsection (4A)(b) for “or Article 26(3)(a) of WRP(NI)O 1999” there were substituted “, Article 26(3)(a) of WRP(NI)O 1999, section 111(2)(b)(i) of the Pensions Act 2008 or section 89(2)(b)(i) of the Pensions (No. 2) Act (Northern Ireland) 2008”.
10
After regulation 28 insert—
28A
Section 279(1) of FA 200413 (other definitions) applies as if, in relation to the Pension Protection Fund—
a
“pension credit” included any pension compensation credit mentioned in section 111(1)(b) of PA 2008 or section 89(1)(b) of P(No. 2)A(NI) 2008 (creation of pension compensation debits and credits),
b
“pension debit” included any pension compensation debit mentioned in section 111(1)(a) of PA 2008 or section 89(1)(a) of P(No. 2)A(NI) 2008 (creation of pension compensation debits and credits), and
c
“pension sharing order or provision” included any pension compensation sharing order or provision mentioned in section 109 of PA 2008 or section 88 of P(No. 2)A(NI) 2008 (activation of pension compensation sharing).
11
For regulation 42 substitute—
42
Unless it is a lump sum falling within any of paragraphs (a) to (c) of regulation 42A, a lump sum paid under any of the following provisions is treated as if it were a lump sum paid under a registered pension scheme to which section 636A of ITEPA 200314 (exemption for certain lump sums under registered pension schemes) applies—
a
Schedule 7 to the Pensions Act or Schedule 6 to the Pensions Order (pension compensation provisions), or
b
Schedule 5 to PA 2008 or Schedule 4 to P(No. 2)A(NI) 2008 (pension compensation provisions).
42A
Each of the following is to be treated as if it were a lump sum, paid to a member under a registered pension scheme, in relation to which section 636B of ITEPA 200315 (trivial commutation and winding-up lump sums) applies—
a
a PPF money purchase lump sum,
b
a lump sum under paragraph 24 of Schedule 7 to the Pensions Act or paragraph 24 of Schedule 6 to the Pensions Order (commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%, and
c
a lump sum under paragraph 9 of Schedule 5 to PA 2008 or paragraph 9 of Schedule 4 to P(No. 2)A(NI) 2008 (commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%.
(This note is not part of the Regulations)