Amendment of Part 3 of the 1996 Regulations4

1

Part 3 (guaranteed statements of entitlement and calculation of transfer values) of the 1996 Regulations is amended as follows.

2

In the heading to Part 3, omit the word “guaranteed”.

3

In the heading to regulation 6, omit the word “Guaranteed”.

4

In regulation 6 (guaranteed statements of entitlement)—

a

in paragraph (1)(a)10, omit the words “under section 93A of the 1993 Act (salary related schemes: right to statement of entitlement)”;

b

in paragraph (1B)11, omit the definition of “application”;

c

after paragraph (1B) insert—

1C

Where a member has transferrable rights in relation to two categories of benefits other than money purchase benefits, the trustees or managers must provide the member with a statement of entitlement setting out a separate cash equivalent in relation to each of the categories of benefits, unless the member’s application relates to one of the categories of benefits only.

d

in paragraph (3), omit the words “under section 93A(1) of the 1993 Act”;

e

omit paragraph (4);

f

insert at the end—

5

In this regulation, “application” means an application for a statement of entitlement made under section 93A(1) of the 1993 Act (right to statement of entitlement: benefits other than money purchase).

5

In regulation 7C(3)(b)(ii) (manner of calculation of initial cash equivalents for money purchase benefits)12, for “Chapter IV of Part IV” substitute “Chapter 1 of Part 4ZA”.

6

In regulation 7D(3) (reductions to initial cash equivalents)13, for “paragraphs 7 to 11” substitute “paragraphs 7, 10, 11”.

7

In the heading to regulation 9, for “guaranteed cash equivalents” substitute “cash equivalents shown in the statement of entitlement”.

8

In regulation 9 (increases and reductions of guaranteed cash equivalents)—

a

for paragraph (1), substitute—

1

This regulation applies to a cash equivalent in respect of transferrable rights in relation to categories of benefits other than money purchase benefits where a statement of entitlement has been sent to a member of a salary related scheme by the trustees of the scheme.

b

in paragraphs (2), (3)14, (5) and (6), in each place where it appears, for “guaranteed cash equivalent” substitute “cash equivalent shown in the statement of entitlement”;

c

in paragraph (5), for “Chapter IV of Part IV” substitute “Chapter 1 of Part 4ZA”.

9

In regulation 11 (disclosure)—

a

for paragraph (1)15 substitute—

1

Subject to paragraphs (1A) and (1B), a member to whom paragraph (1C) applies is entitled to receive from the trustees, on request, the information mentioned in Schedule 1 in writing.

b

after paragraph (1B)16 insert—

1C

This paragraph applies—

a

to a member who is currently accruing rights to one of the categories of benefits; and

b

to a member who is no longer accruing rights to money purchase benefits unless, in respect of those benefits, a crystallisation event under section 93(7) has occurred.

c

omit paragraph (3)17;

d

in paragraph (4)18—

i

for “to a guaranteed cash equivalent” substitute “provided under section 93A of the 1993 Act”;

ii

in sub-paragraph (b)(ii) after the first appearance of the words “cash equivalent” insert “in relation to each of the categories of benefits”;

iii

after sub-paragraph (b)(ii), insert—

iia

indicating the amount of the cash equivalent which is attributable to each of the categories of benefits included in the statement of entitlement;

e

in paragraphs (4)(b)(ii), (iv), (v) and (vi) and (5), in each place where it appears, for “guaranteed cash equivalent” substitute “cash equivalent shown in the statement of entitlement”.