Regulation 2 Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

For regulation 5 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991^f1 (short service benefit in lump sum form), substitute—

“Short service benefit in lump sum form

5.

For the purposes of section 71(6) of the Act (basic principle as to short service benefit), the circumstances in which the trustees or managers of a scheme may provide for payment of short service benefit in the form of a lump sum before normal pension age are that the payment of a lump sum—

(a)

to the member is permitted in accordance with paragraph (a), (b), (e), (f) or (g) of the lump sum rule in section 166(1) of the Finance Act 2004^f2 (lump sum rule); or

(b)

is—

(i)

made by a registered pension scheme (within the meaning given in section 150(2) of the Finance Act 2004 (meaning of “pension scheme”));

(ii)

a payment that is described in Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009^f3; and

(iii)

made to or in respect of a member.”.