Regulation 4 Payment of pension benefits: pension arrears

(1)

(a)

as a result of a rectification exercise, there is an increase in the rate of scheme pension^f1 payable to a member, or dependants’ scheme pension^f2 payable to a dependant of a member, under a relevant pension scheme,

(b)

if the rectification exercise had been retrospective, that increase would have taken effect from an earlier date, and

(c)

a payment is made to a specified individual that represents the amount of arrears that would have accrued if the increase was payable from that earlier date.

(2)

In paragraph (1)(c), “specified individual” means an individual who is—

(a)

the member,

(b)

a dependant of the member,

(c)

no longer a dependant of the member, but who previously met the condition in paragraph 15(2) of Schedule 28 to FA 2004 (meaning of dependant: child of the member), or

(d)

the personal representative^f3 of a deceased individual who fell within sub-paragraph (a), (b) or (c).

(3)

The payment is to be treated—

(a)

as falling within section 164(1) of FA 2004, and

(b)

for the purposes of Part 9 of ITEPA 2003 (pension income)^f4, as pension paid under a registered pension scheme accruing in the tax year in which the payment is made.

Annotations

Footnotes

f1: “Scheme pension” is defined in section 15(9) of FA 2024.
f2: “Dependants’ scheme pension” is defined in paragraph 16 of Schedule 28 to the Finance Act 2004.
f3: “Personal representatives”, in relation to a person who has died, is defined in section 989 of the Income Tax Act 2007.
f4: “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1) by virtue of section 38 of FA 2024.