Regulation 120 Reduction of benefits where annual allowance charge paid by scheme managerI1

If the scheme manager pays the annual allowance charge on a member’s behalf, the amount or value of the benefits payable to or in respect of the member must be reduced.

The amount or value of the reduction of benefits must be such that in the opinion of the scheme manager, having consulted with the scheme actuary, it fully reflects the amount of the charge so paid and is consistent with normal actuarial practice.