Regulation 11 Amendments to the Principal Regulations

After regulation 9 of the Principal Regulations there shall be added–

“10

Where a personal pension scheme accepts a transfer payment from–

(a)

a retirement benefits scheme, or

(b)

a statutory scheme, or

(c)

another personal pension scheme in circumstances where the transfer payment or part of it, had its origin in a transfer payment from such a scheme as is referred to in sub-paragraph (a) or (b),

(in this regulation referred to as “the paying scheme”) paragraph (2) shall apply.

(2)

Where this paragraph applies–

(a)

no amount of that payment or that part, as the case may be, may be paid to the individual by way of lump sum unless the administrator of the personal pension scheme which has accepted the transfer payment has obtained from the administrator of the paying scheme a certificate signed by him and showing the maximum amount of the transfer payment or part thereof payable to the individual under the rules of the paying scheme or of the scheme from which that part originated, as the case may require; and

(b)

the maximum lump sum that may be paid is the aggregate of the maximum amount so certified together with any amount by which that amount has been enhanced at the date of the transfer payment by virtue of regulation 11.

Enhancement of amounts payable by way of lump sum

11

Where any of these Regulations refers to any amount by which an amount payable by way of lump sum has been enhanced by virtue of this regulation, the amount of that enhancement shall be calculated on the basis of the formula

$$\left(\mathrm{A}\times \mathrm{AV}/\mathrm{TP}\right)-\mathrm{A}\text{,}$$

where–

• A is the amount of the transfer payment or part thereof payable by way of lump sum,

• AV is the accumulated value arising from the transfer payment or part thereof at the relevant time, and

• TP is the amount of the transfer payment or part thereof. ”