Regulation 14 Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations 1997

The Occupational Pension Schemes (Discharge of Liability) Regulations 1997 M1 shall have effect with the following amendments.

In regulation 1(2) (interpretation) in the definition of “the 1995 Act" for “Pension" substitute “Pensions".

In regulation 4(1)(b) (conditions on which policies of insurance and annuity contracts may be commuted) for “, and the earner–" to the end substitute–

“, and the earner–

(i)

has attained the age of 50, or

(ii)

is suffering from an incapacity or serious ill-health prior to normal pension age, and the commutation would not prevent approval of the scheme under section 591 of the Income and Corporation Taxes Act 1988 M2 (discretionary approval), or continuing approval of the scheme under section 590 (conditions for approval of retirement benefit schemes) or 591 of that Act.”.

For regulation 11(5) substitute–

“(5)

For the purposes of paragraph 3(d)–

“incapacity" means physical or mental deterioration which is sufficiently serious to prevent a person from following his normal employment or which seriously impairs his earning capacity;

“serious ill-health" has the same meaning as in regulation 4(4).”.