Section 12A Orders for payment of capital sum: pensions lump sums.F1

This section applies where the court makes an order under section 8(2) of this Act for payment of a capital sum (a “capital sum order”) by a party to the marriage F2or a partner in a civil partnership (“the liable person”) in circumstances where—

Where the benefits referred to in subsection (1) above include a lump sum payable to the liable F6person, the court, on making the capital sum order, may make an order requiring the F7person responsible for the pension arrangement in question to pay the whole or part of that sum, when it becomes due, to the other party to the marriage F8or as the case may be to the other partner (“the other person”).

Where the benefits referred to in subsection (1) above include a lump sum payable in respect of the death of the liable F9person, the court, on making the capital sum order, may make an order—

Any payment by the F12person responsible for the pension arrangement under an order under subsection (2) or (3) above—

Where the liability of the liable person under the capital sum order has been discharged in whole or in part, other than by a payment by the F14person responsible for the pension arrangement under an order under subsection (2) or (3) above, the court may, on an application by any person having an interest, recall any order under either of those subsections or vary the amount specified in such an order, as appears to the court appropriate in the circumstances.

Where—

the order shall have effect as if it had been made instead in respect of the person responsible for the new arrangement; and in this subsection “transfer credits” has the same meaning as in the Pension Schemes Act 1993.

Without prejudice to subsection (6) above, the court may, on an application by any person having an interest, vary an order under subsection (2) or (3) above by substituting for the F18person responsible for the pension arrangement specified in the order the person responsible for any other pension arrangement under which any lump sum referred to in subsection (1) above is payable to the liable person or in respect of his death.

Subsection (7ZB) applies where a right under an occupational pension scheme to payment of a lump sum in respect of death would, but for the provisions of Chapter 3 of Part 2 of the Pensions Act 2004 (c. 35), arise during an assessment period (within the meaning of section 132 of that Act).

An order under subsection (3) shall not take effect until the assessment period comes to an end for a reason other than the giving of a transfer notice under section 160 of that Act.

F20For the purpose only of giving effect to subsection (7), the court may deal with an order under subsection (2) so that it–

Where—

the order shall, on the giving of such notice, be recalled.

Subsection (7C) applies where—

The order shall have effect from the time when the notice is given—

The Secretary of State may by regulations—

Regulations under F23subsections (7C)(b) and (8) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

The definition of “benefits under a pension scheme” in section 27 of this Act does not apply to this section.

In subsections F26(7ZC) to (7C) “the Northern Ireland provision”, in relation to a provision of the 2004 Act, means any provision in force in Northern Ireland corresponding to the provision of that Act.