Regulation 4 Amendment of the Occupational Pension Schemes (Early Leavers: Cash Transfer Sums and Contribution Refunds) Regulations 2006

(1)

The Occupational Pension Schemes (Early Leavers: Cash Transfer Sums and Contribution Refunds) Regulations 2006^f1 are amended in accordance with this regulation.

(2)

In regulation 2B (initial cash transfer sum for salary related benefits: assumptions)^f2—

(a)

for the heading and paragraph (1), substitute—

“Initial cash transfer sum for salary related benefits: assumptions and guidance

2B.

(1)
The trustees or managers must calculate the initial cash transfer sum for salary related benefits—
(a)
by using the assumptions determined under this regulation; and

(b)
where the scheme falls within paragraph (6), in accordance with the guidance referred to in that paragraph.”;

(b)

in paragraph (4), for “The trustees or” substitute “Except where the scheme falls within paragraph (6), the trustees or”; and

(c)

after paragraph (5), insert—

“(6)
A scheme falls within this paragraph if it is a public service pension scheme in respect of which guidance has been prepared, and from time to time revised, by the Treasury for calculating the discount rates^f3.”.

(3)

In regulation 2C(2) (manner of calculation of initial cash transfer sums for money purchase benefits)^f4, after “realisable value” insert “at the date of calculation”.

(4)

In regulation 2D (alternative manner of calculating and verifying cash transfer values)^f5—

(a)

in the heading, for “cash transfer values” substitute “cash transfer sums”; and

(b)

in all four places where “cash transfer value” appears, substitute “cash transfer sum”.

Annotations

Footnotes

f1: S.I. 2006/33.
f2: Regulation 2B was inserted by S.I. 2008/1050.
f3: The Treasury have issued guidance entitled “Basis for setting the discount rate for calculating cash equivalent transfer values payable by public service pension schemes”. A copy of the guidance can be obtained from The Correspondence & Enquiry Unit, 2/W1, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and [email protected]. It is also available on the internet at http://www.hm-treasury.gov.uk/documents/taxation_work_and_welfare/public_service_pensions/tax_pensions_guidance.cfm.
f4: Regulation 2C was inserted by S.I. 2008/1050.
f5: Regulation 2D was inserted by S.I. 2008/1050.