Article 6 Amendment of Article 15

After Article 16 (membership of the new pension scheme) insert—

“Stand-alone lump sums

17.

(1)

 Paragraph (6) applies if condition A, B or C is met.

(2)

Condition A is that—

(a)

a pension scheme is being wound up (“the original pension scheme”) and the winding up commenced before 6th April 2006,

(b)

the stand-alone lump sum condition (see paragraph (5)) would have been met immediately before the commencement of the winding up, if the pension scheme had commenced winding up on or after 6th April 2006, and

(c)

the annuity purchase condition set out in article 15 is met.

(3)

Condition B is that—

(a)

the original pension scheme is being wound up and the winding up commenced before 6th April 2006,

(b)

an individual became a member of the original pension scheme before 6th April 2006 but after the commencement of the winding up,

(c)

the stand-alone lump sum condition would have been met immediately before the commencement of the winding up, if the pension scheme had commenced winding up on or after 6th April 2006, and

(d)

the annuity purchase condition set out in article 15 is met.

(4)

Condition C is that—

(a)

the original pension scheme is being wound up and the winding up commenced on or after 6th April 2006,

(b)

the annuity purchase condition set out in article 15 is met, and

(c)

the stand-alone lump sum condition is met.

(5)

The stand-alone lump sum condition is that a member of the original pension scheme was entitled to be paid, a stand-alone lump sum which, if it had been paid would have been a stand-alone lump sum paid in circumstances where article 25B(4) (circumstance C) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006^f1 (“the Transitional Provisions Order”) applied.

(6)

The new pension scheme (within the meaning of article 15(5)(a) or (b) as the case may be) is treated as the same pension scheme as the original pension scheme (so that accordingly, the new pension scheme may pay a stand-alone lump sum to the member in circumstances where Article 25B(4) (circumstance C) of the Transitional Provisions Order applies).”.