Regulation 5 Amendments to the Occupational Pension Schemes (Transfer Values) Regulations 1985

Regulation 2A of the Occupational Pension Schemes (Transfer Values) Regulations 1985^f1 (which deals with the reduction of cash equivalents) is amended as described in paragraphs (2) and (3) of this regulation.

Paragraph (1) is amended by inserting after the words “pensionable service” in sub-paragraph (a) the words “commenced before 6th April 1988 and”, and replacing the words “paragraph (2) below” with the words “paragraph (2) or (3) below, as appropriate”.

Paragraph (2) is replaced with the following–

“(2)

Where the benefits are money purchase benefits, the part referred to in paragraph (1) above is the part of those benefits that has accrued to or in respect of the member after 5th April 1988.

(3)

Where the benefits are not money purchase benefits, the part referred to in paragraph (1) above is the part, or the total of the parts, described in sub-paragraphs (a) and (b) of this paragraph.

(a)

In the case of benefits that have accrued to or in respect of the member as a result of the member’s pensionable service, the part of those benefits that is attributable to the member’s pensionable service after 5th April 1988.

(b)

In the case of any other benefits (for example, transfer credits), the part of those benefits that was credited to the member after 5th April 1988.

(4)

Where a member exercises a right to the cash equivalent described in paragraph (1) above, sections 41A and 41B (protection of pensions) and Part I of Schedule 1A (revaluation of pensions) are modified so that, for the purposes of those provisions, the benefits to which the cash equivalent related are disregarded and the pensionable service by reference to which those benefits were calculated is excluded from B and C in the formula set out in paragraph 2(2).”.