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Paragraph 6ZA F1

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The information to be provided under this sub-paragraph is an illustration of the amount, calculated in accordance with sub-paragraphs (2) to (5), of the pension an entitlement to which would be likely to accrue to the member, or be capable of being secured by him, at his retirement date in respect of rights to money purchase benefits that may arise under the scheme.

(2)

The amount referred to in sub-paragraph (1) above shall be determined by reference to—

(a)

the relevant guidance; and

(b)

the assumptions about contributions specified in sub-paragraph (3) and about annuities specified in sub-paragraphs (4) and (5), and such other assumptions as may be specified for the purpose in the relevant guidance,

having regard to the value of the member’s accrued rights to money purchase benefits under the scheme on the illustration date.

(3)

The assumptions about contributions referred to in sub-paragraph (2)(b) above are—

(a)

where the calculation relates to the rights of a deferred member, that no contributions will be made to the scheme by him or on his behalf after the illustration date; or

(b)

where the calculation relates to the rights of a member who is in pensionable service under the scheme, that, until the member’s retirement date—

(i)

contributions to the scheme will be made by him or on his behalf; F2and

(ii)

the treatment of the scheme under sections 592 to 594 or, as the case may be, 639 to 646A of the Income and Corporation Taxes Act 1988 as for the time being in force will continue;

(iii)

F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

The assumptions about annuities referred to in sub-paragraph (2)(b) above are—

(a)

that the rate of pension is to be increased annually by the relevant percentage for the time being specified in the relevant guidance; and

(b)

that, subject to sub-paragraph (5) below, irrespective of whether or not the member is married F4or in a civil partnership at the time when the information referred to in sub-paragraph (1) above is furnished, the annuity will include provision for the payment, to a surviving spouse F5or, as the case may be, a surviving civil partner of the member, of a pension of an amount equal to one half of the pension which was payable to him immediately before his death.

(5)

Sub-paragraph (4)(b) above does not apply where—

(a)

the trustees decide to use a different assumption in substitution for that specified in sub-paragraph (4)(b) on the basis that the scheme records indicate that the member is not married F6or not in a civil partnership; or

(b)

the trustees and the member agree to use a different assumption.

(6)

The additional information which is to accompany the information provided under sub-paragraph (1) above is—

(a)

a statement to the effect that the information provided under that sub-paragraph is provided only for the purposes of illustration F7 and that it does not represent any promise or guarantee as to the amount of benefit which may be receivable by the member or a beneficiary under the scheme F8 ... ;

(b)

F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

a statement specifying the means by which the person to whom the information relates may obtain from the trustees further information about the information provided under sub-paragraph (1) above;

(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)

a statement to the effect that certain general assumptions have been made F10 ... ;

(f)

a statement to the effect that the amount referred to in sub-paragraph (1) above is expressed in today’s prices;

(g)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(j)

a statement of the member’s retirement date for the purpose of sub-paragraph (1) above; and

(k)

a statement of the illustration date used for the purpose of calculating the amount referred to in sub-paragraph (1) above.

F11(7)

The further information which is to be provided, as mentioned in regulation 5(5ZZA)(b) and (5ZC)(b), is—

(a)

a statement to the effect that assumptions have been made about the nature of the investments made for the purposes of the member’s money purchase benefits and their likely performance, which may not correspond with the investments actually made for those purposes, or their actual performance;

(b)

a statement to the effect that the actual amount of any pension payable to or in respect of the member under the scheme will depend on considerations, including the actual performance of investments and the cost of buying an annuity at the time the pension becomes payable, which may be different from the assumptions made for the purposes of providing the information under sub-paragraph (1);

(c)

a statement specifying any assumptions made in relation to future contributions to the scheme; and

(d)

a statement of the assumptions made in accordance with F12sub-paragraph (4) or as mentioned in sub-paragraph (5).

Annotations

Textual amendments

F1

Sch. 2 para. 6ZA inserted (6.4.2003) by The Occupational and Personal Pension Schemes (Disclosure of Information) Amendment Regulations 2002 (S.I. 2002/1383), regs. 1(2), 3(4)

F2

Word in Sch. 2 para. 6ZA(3)(b)(i) inserted (6.4.2012) by The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 8(4)(b)(i)

F3

Sch. 2 para. 6ZA(3)(b)(iii) and preceding word omitted (6.4.2012) by virtue of The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 8(4)(b)(ii)

F4

Words in Sch. 2 para. 6ZA(4)(b) inserted (5.12.2005) by The Civil Partnership (Pensions, Social Security and Child Support) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2877), art. 1, Sch. 2 para. 5(6)(a)(i) (with art. 3)

F5

Words in Sch. 2 para. 6ZA(4)(b) inserted (5.12.2005) by The Civil Partnership (Pensions, Social Security and Child Support) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2877), art. 1, Sch. 2 para. 5(6)(a)(ii) (with art. 3)

F6

Words in Sch. 2 para. 6ZA(5)(a) inserted (5.12.2005) by The Civil Partnership (Pensions, Social Security and Child Support) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2877), art. 1, Sch. 2 para. 5(6)(b) (with art. 3)

F7

Word in Sch. 2 para. 6ZA(6)(a) substituted (1.12.2010) by The Occupational, Personal and Stakeholder Pension Schemes (Disclosure of Information) (Amendment) Regulations 2010 (S.I. 2010/2659), regs. 1(2),3(8)(b)(i)(aa)

F8

Words in Sch. 2 para. 6ZA(6)(a) omitted (1.12.2010) by virtue of The Occupational, Personal and Stakeholder Pension Schemes (Disclosure of Information) (Amendment) Regulations 2010 (S.I. 2010/2659), regs. 1(2), 3(8)(b)(i)(bb),

F9

Sch. 2 para. 6ZA(6)(b)(d)(g)(h)(i) omitted (1.12.2010) by virtue of The Occupational, Personal and Stakeholder Pension Schemes (Disclosure of Information) (Amendment) Regulations 2010 (S.I. 2010/2659), regs. 1(2), 3(8)(b)(ii)

F10

Words in Sch. 2 para. 6ZA(6)(e) omitted (1.12.2010) by virtue of The Occupational, Personal and Stakeholder Pension Schemes (Disclosure of Information) (Amendment) Regulations 2010 (S.I. 2010/2659), regs. 1(2), 3(8)(b)(iii)

F11

Sch. 2 para. 6ZA(7) inserted (1.12.2010) by The Occupational, Personal and Stakeholder Pension Schemes (Disclosure of Information) (Amendment) Regulations 2010 (S.I. 2010/2659), regs. 1(2), 3(8)(c)

F12

Words in Sch. 2 para. 6ZA(7)(d) substituted (6.4.2012) by The Pensions Act 2007 (Abolition of Contracting-out for Defined Contribution Pension Schemes) (Consequential Amendments) Regulations 2011 (S.I. 2011/1245), regs. 1(2), 8(4)(b)(iii)

Notes on Schedule 2

Modifications

C1

Sch. 2 applied (with application in accordance with art. 1(2) of the commencing S.I., 1.12.2000) by The Divorce etc. (Pensions) Regulations 2000 (S.I. 2000/1123), art. 3(1)(b)(2)(b)reg. 1(1)