Regulation 23 Benefits which may be provided
Regulation 7 of the AVC Regulationsf1 (benefits which may be provided) is amended as specified in paragraphs (2) to (5).
For paragraph (1) substitute—
“(1)Subject to paragraph (5), a contributor will be entitled to such benefits as—
(a)are secured by the contributions paid by the contributor and by any transfer value accepted under regulation 5(4), and
(b)are benefits for which a registered pension scheme that is a money purchase arrangement for the purposes of Part 4 of the Finance Act 2004 (see section 152(2) of that Act) is authorised to make payments under section 160(1) of the Finance Act 2004.”.
In paragraph (2) (benefits normally permitted)—
at the beginning insert “In particular, but without prejudice to the generality of paragraph (1),”
in sub-paragraph (a) at the beginning insert “in the case of a contributor who dies before reaching the age of 75,”,
in sub-paragraph (b)—
for “retirement benefits” substitute “pension benefits and any transfer values accepted under regulation 5(4)”,
after “by the contributor” insert “and those transfer values”, and
for “before retirement” substitute “before he reaches the age of 75 or becomes entitled to the payment of a pension secured under this regulation”,
in sub-paragraph (c) for “spouse” substitute “adult survivor”,
in sub-paragraph (d)—
for “after retirement” substitute “after he becomes entitled to the payment of a pension under these Regulations”,
for “Schedule 6” substitute “Schedule 5”, and
omit “and” at the end,
in sub-paragraph (e)(ii) for the words “being paid in one lump sum on death” substitute “being paid, in the case of a member who dies before reaching the age of 75, in one lump sum on death”, and
after sub-paragraph (e) insert—
“(f)if a pension is secured under sub-paragraph (e), a lump sum payable to the contributor at the time that pension becomes payable not exceeding the permitted maximum, as defined in paragraph 2 of Schedule 29 to the Finance Act 2004 (which is usually the applicable amount, as defined in paragraph 3(6) of that Schedule); and
(g)a lump sum meeting the conditions required for it to be a lifetime allowance excess lump sum for the purposes of Part 4 of the Finance Act 2004 (see paragraph 11 of Schedule 29 to the Finance Act 2004).”.
In paragraph (4) omit from “and the benefits” onwards.
After that paragraph insert—
“(4A)A pension under paragraph (2)(e) must commence—
(a)not later than the day before the contributor’s 75th birthday; and
(b)not earlier than the earlier of—
(i)the date on which the contributor becomes entitled to receive a pension under regulation F1 or F3 of the principal scheme, and
(ii)the day mentioned in sub-paragraph (a).”.
In regulation 8 of those Regulations (payment of lump sums on death) omit paragraph (3) (payment to contributor’s personal representatives of any part of a lump sum payable on his death that has not been paid within 2 years' of the death).
In regulation 9 of those Regulationsf2 (purchase of pensions) for paragraph (1) substitute—
“(1)At least six months before the date on which a contributor would like a pension to come into payment or at such later time before that date as the Trustees allow, the contributor shall specify in writing to the Trustees—
(a)the pension or pensions which are to be purchased on his behalf or on behalf of his dependants, and
(b)where a pension is to be purchased on his behalf and he would also like a lump sum to be paid to him or he wishes a sum that is a lifetime allowance excess lump sum for the purposes of Part 4 of the Finance Act 2004 to be paid to him—
(i)that that is the case, and
(ii)the amount he would like to be paid as a lump sum.”.