Regulation 28 Schemes which provide fixed pensions in respect of transfer payments: modification of Schedule 6F1

(1)

Schedule 6 has effect with the modifications set out in paragraphs (3) to (5) in relation to a scheme if, immediately before the assessment date, under the admissible rules of the scheme a person is entitled or has rights to a relevant fixed pension.

(2)

A pension to which a person is entitled or has rights under a scheme is a “relevant fixed pension” for the purposes of this regulation if—

(a)

that entitlement or those rights (as the case may be) arose by virtue of a transfer payment to the scheme in respect of the person’s rights under another occupational or personal pension scheme;

(b)

the initial annual amount of the pension was specified at the time the transfer payment was received (whether or not that amount was subject to revaluation in respect of the period until the pension was to come into payment), and

(c)

the pension is neither—

(i)

attributable (directly or indirectly) to a pension credit, nor

(ii)

payable as a result of a person’s death.

(3)

Where compensation is payable under paragraph 15 of Schedule 6 (deferred members who have not attained normal pension age at assessment date) in respect of a relevant fixed pension—

(a)

paragraph 15 has effect in its application to that pension as if—

(i)

in sub-paragraph (5) for “when the pensionable service relating to the pension ended” there were substituted “immediately after the relevant transfer payment was received”, and

(ii)

after sub-paragraph (5) there were inserted—

“(5A)
In sub-paragraph (5) “relevant transfer payment” means the transfer payment by virtue of which the deferred member’s rights to the pension were conferred under the scheme.”, and

(b)

except in a case to which regulation 13A(4)^f1 (modification of Schedule 6 for schemes with no revaluation) applies, paragraph 16 has effect in its application to that pension as if—

(i)

in sub-paragraph (2)(a) for “deferred member’s pensionable service in respect of the pension ended” there were substituted “relevant transfer payment was received”, and

(ii)

after sub-paragraph (2) there were inserted—

“(2A)
In sub-paragraph (2)(a) “relevant transfer payment” means the transfer payment by virtue of which the deferred member’s rights to the pension were conferred under the scheme.”.

(4)

Sub-paragraph (14) of paragraph 26A^f2 of Schedule 6 (meaning of the compensation cap) does not apply in so far as it relates to the meaning of “pensionable service”.

(5)

Except for the purposes of sub-paragraphs (1) and (2) of paragraph 26 of Schedule 6 (compensation cap), paragraph 36 of Schedule 6 (accrual rate, pensionable service and pensionable earnings) has effect as if—

(a)

in sub-paragraph (4) for “sub-paragraph (5)” there were substituted “sub-paragraphs (5) and (6)”, and

(b)

after sub-paragraph (5) there were added—

“(6)
For the purposes of this Schedule, where a person is entitled or has rights under a scheme to a pension and—
(a)
that entitlement or those rights (as the case may be) arose by virtue of a transfer payment to the scheme in respect of the person’s rights under another occupational or personal pension scheme,
(b)
the initial annual amount of the pension was specified at the time the transfer payment was received (whether or not that amount was subject to revaluation in respect of the period until the pension was to come into payment), and
(c)
the pension is neither—
(i)
attributable (directly or indirectly) to a pension credit, nor
(ii)
payable as a result of a person’s death,
the person is to be treated as having pensionable service within sub-paragraph (4)(b) to which that pension is attributable.”.

Annotations

Textual amendments

F1: Pt. 13 amendment to earlier affecting provision S.R. 2018/165, reg. 2(3) (retrospective to 6.4.2005) by Pension Schemes Act 2021 (c. 1), s. 131(2)(d)(3)(c), Sch. 11 para. 14(1); S.R. 2021/240, art. 2(2)(f)

Footnotes

f1: 1988 c. 1
f2: Section 611A was inserted by paragraph 15 of Schedule 6 to the Finance Act 1989 (c. 26)