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Regulation 5 Manner of calculation and verification of cash equivalents: other relevant arrangementsF1

Northern Ireland

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

(1)

Subject to this regulation, cash equivalents for members of a relevant arrangement other than an occupational pension scheme are to be calculated and verified in accordance with regulations F27 to 7C and 7E(1) to (3) of the Transfer Values Regulations, as if the person with the pension rights had made a valid application under section 91 (ways of taking right to cash equivalent) to use the cash equivalent of the rights to benefits .

(2)

When calculating and verifying the cash equivalent, the Transfer Values Regulations are to be read as if—

(F3za)

in regulation 7(1)(a) the words “, and then making any reductions in accordance with regulation 7D” were omitted;

(zb)

in regulation 7(1)(b) for “regulation 7E” there were substituted “regulation 7E(1) to (3)”;

(a)

in regulation 1(2)—

(i)

after the definition of “the Taxes Act” there were inserted—

  • ““transfer day” has the meaning given by Article 26(8) of the Welfare Reform and Pensions (Northern Ireland) Order 1999;”, and

(ii)

for the definition of “trustees” there were substituted—

  • ““trustees” means the person responsible for the relevant arrangement;”;

(b)

in regulation 7(1) for “paragraph (5)” there were substituted “paragraphs (5) and (6)”, and

(c)

after regulation 7(5) there were added—

“(6)

Where the person with pension rights is a member of a personal pension scheme, or those rights are contained in a retirement annuity contract, the value of the benefits which he has accrued under that scheme or contract on the transfer day must be taken to be the cash equivalent to which he would have acquired a right under section 90(1)(b) (right to cash equivalent), if he had made an application under section 91(1) (ways of taking right to cash equivalent) on the date on which the request for the valuation was received.”.

(3)

In relation to a personal pension scheme which is comprised in a retirement annuity contract made before 4th January 1988, this regulation applies as if such a scheme were not excluded from the scope of F4Chapter 1 of Part 4ZA of the Pension Schemes Act by section 89(5)(b) (scope of Chapter 1)

Annotations

Textual amendments

F1

Regs. 4-5 substituted for (1.10.2008) by The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations (Northern Ireland) 2008 (S.R. 2008/370), reg. 1(1), Sch. 2 para. 5(3)

F2

Words in reg. 5(1) substituted (6.4.2016) by The Pension Sharing (Miscellaneous Amendments) Regulations (Northern Ireland) 2016 (S.R. 2016/172), regs. 1, 4(5)(a)

F3

Reg. 5(2)(za)-(zb) inserted (6.4.2016) by The Pension Sharing (Miscellaneous Amendments) Regulations (Northern Ireland) 2016 (S.R. 2016/172), regs. 1, 4(5)(b)

F4

Words in reg. 5(3) substituted (6.4.2016) by The Pension Sharing (Miscellaneous Amendments) Regulations (Northern Ireland) 2016 (S.R. 2016/172), regs. 1, 4(5)(c)