Regulation 3 Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

Amend the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991^f1 as follows.

For regulation 5 (short service benefit in lump sum form) substitute—

“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 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).”.

In regulation 8 (early retirement or deferred retirement) for paragraph (2) substitute—

“(2)

The member’s benefit must not be payable before normal pension age except in the circumstances where the member has either—

(a)

met the ill-health condition specified in paragraph 1 of Schedule 28 to the Finance Act 2004 (registered pension schemes – defined benefits and money purchase arrangements – ill health condition) immediately before he became entitled to the benefit under the scheme; or

(b)

attained normal minimum pension age as defined in section 279 of that Act (other definitions).”.