SCHEDULE 6Continuity Option 1: transfer out and winding up

Winding-up period

6.

(1)

Subject to sub-paragraph (5), no new members may be admitted to the scheme during the winding-up period.

(2)

No further contributions by or on behalf or in respect of members of the scheme may be paid towards the scheme (other than those due to be paid before the beginning of the winding-up period) during the winding-up period.

(3)

No benefits may accrue to or in respect of members of the scheme during the winding-up period.

(4)

Subject to sub-paragraph (6), no pension or other benefits may be paid by the scheme to or in respect of beneficiaries during the winding-up period.

(5)

Where a person is entitled to a pension credit derived from another person’s shareable rights under the scheme nothing in this Schedule prevents the trustees of the scheme discharging their liability in respect of the credit under Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 199954 (sharing of rights under pension arrangements) by conferring appropriate rights under the scheme on that person.

(6)

Nothing in this Schedule prevents the exercise of any right or power conferred by Chapter 2 of Part 4ZA of the 1993 Act55 (early leavers: cash transfer sums and contribution refunds) or the discharge of any duty imposed by that Chapter.

(7)

The requirements mentioned in sub-paragraph (8) cease to apply during the winding-up period and the trustees are discharged from any liability to carry out these requirements in respect of the winding-up period.

(8)

The requirements are—

(a)

obtaining actuarial valuations in accordance with section 20 of the Act (actuarial valuations);

(b)

determining the rate or amount of benefits under the scheme, under scheme rules in accordance with section 18 of the Act (calculation of benefits); and

(c)

providing qualifying benefits including the payment of a pension or other benefits under the scheme, as provided for in section 3 of the Act (qualifying schemes).

(9)

In sub-paragraph (5)—

“appropriate rights” has the same meaning as in paragraph 5 of Schedule 5 to the Welfare Reform and Pensions Act 1999 (pension credits: mode of discharge);

“shareable rights” has the meaning given in section 27(2) of that Act (scope of mechanism).