Regulation 2 Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996

in paragraph (1)(b) in head (i)(aa), for “of that Part” substitute “of Part 1 of Schedule 29 to that Act”;

after paragraph (2) add—

“(3)

Subject to paragraph (4), for the purposes of section 21(1) of the 1993 Act further circumstances are where the payment of a lump sum—

(a)

is authorised under section 164 of the Finance Act 2004;

(b)

is permitted by the lump sum rule in section 166 of that Act; and

(c)

qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act.

(4)

Where—

(a)

under the scheme, an earner qualifies for a lump sum payment on the ground of serious ill-health; and

(b)

the scheme also provides for the payment of a guaranteed minimum pension to the widow, widower or surviving civil partner of the earner (“a survivor’s pension”),

the scheme must continue to include provision for a survivor’s pension notwithstanding the payment of a lump sum to the earner.”.