Regulation 63 Retirement benefitsI1

England, Wales and Scotland Not yet in force

(1)

The administering authority must invest any AVCs which are not to be used to provide death benefits with an approved AVC body.

(2)

Where a member who has paid AVCs during his employment–

(a)

becomes entitled to immediate payment of benefits under the Scheme, other than under regulation 26;

(b)

does not make an election under regulation 64; and

(c)

regulation 65(11) does not apply,

the appropriate administering authority must use the accumulated value of the contributions invested under paragraph (1) for the provision of additional pension benefits under a pension policy as soon as reasonably practicable.

(3)

However, if the member dies before the policy is entered into, the accumulated value is payable to his executors.

(4)

In entering into the pension policy the administering authority must give effect to the member’s wishes about the benefits it provides, so far as is practicable.

(5)

The benefits must be money purchase benefits and their value reasonable considering the accumulated value.

(6)

The AVCs may be used only to provide benefits in the form of a lump sum if–

(a)

all the pension benefits payable to or in respect of the member under the Scheme are being commuted under regulation 48 or 49; and

(b)

the annual rate referred to in that regulation is not exceeded by aggregating with them the additional pension benefits provided by the pension policy entered into under paragraph (2).

Annotations

Commencement

I1: Reg. 63 in force at 1.4.1998, see reg. 1