The Pension Schemes Act 2015 (Transitional Provisions and Appropriate Independent Advice) Regulations 2015

Exception to section 48(1)

5.—(1) The trustees or managers are not required to carry out the check in section 48(1) of the Act if the total value of the member’s or survivor’s subsisting rights in respect of safeguarded benefits under the pension scheme is £30,000 or less on the valuation date.

(2) The total value of the member’s or survivor’s subsisting rights in respect of safeguarded benefits is to be calculated —

(a) using the method for calculation of a cash equivalent of a member contained within regulations 7 to 7C, and 7E, of the Transfer Values Regulations(1) (manner of calculation of cash equivalents etc.) but disregarding any references to regulation 7D and Schedule 1A of those regulations(2) (reductions to initial cash equivalents); and

(b) where the member is an active member, by making the assumption that the member ceased to accrue rights to benefits on the valuation date.

(1)

Regulations 7 to 7E were substituted for regulations 7 and 8 by S.I.2008/1050, and amended by S.I. 2008/2450, S.I. 2014/1711 and S.I. 2015/498.

(2)

Schedule 1A was inserted by S.I. 2008/1050.