Paragraph 2 Actual pension
In this Schedule, “actual pension” means, subject to sub-paragraph (3), the annual rate of annuity which has, or could have been, purchased for the beneficiary as at the certification date with the assets available to discharge the liability of the scheme to him after that liability has, or had been, determined.
The liability of the scheme to the beneficiary shall be determined for the purposes of sub-paragraph (1)—
in accordance with section 73 of the 1995 Act; or
where that section does not apply, in accordance with the scheme rules.
The annual rate of annuity which can be purchased for the beneficiary for the purposes of sub-paragraph (1) with the assets referred to in that sub-paragraph, shall be determined—
where the beneficiary is, or was, a member of the qualifying pension scheme, having regard to the amount which would, or has already, come into payment to him from the scheme when the qualifying member attains, or attained, his normal retirement age;
where the beneficiary is a survivor of a member of that scheme, having regard to the annual rate of annuity which will come into payment to him immediately on the purchase of the annuity from the assets of the scheme;
on the basis that benefits payable to survivors and increases in the annual rate of annuity in payment are no more generous than provided in relation to pensions under the scheme rules; and
on the basis that there has been no commutation of benefits deriving from the scheme.
Where the scheme manager is satisfied that it is not possible for him to determine the annual rate of annuity for the purposes of sub-paragraph (1) having regard to the information available to him, he shall determine the annual rate of annuity on the basis of the sum which would discharge the liability of the scheme to the beneficiary and to such other matters as he considers relevant.