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Regulation 11 De minimis rule for pension schemes

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

(1)

A payment by a public service pension scheme or an occupational pension scheme if—

(a)

the member has reached the age of 60, but has not reached the age of 75;

(b)

the member—

(i)

is not a controlling director of a sponsoring employer of this or of any related scheme, and

(ii)

is not a person connected to such a person;

(c)

the payment does not exceed £2,000;

(d)

the commutation value of the benefits to which the member is entitled under this and any related scheme does not exceed £2,000 in total;

(e)

the payment extinguishes the member’s entitlement to benefits under this scheme; and

(f)

no recognised transfer was made out of this or any related scheme in respect of the member during the 3 years preceding the date of the payment.

(2)

For the purposes of paragraph (1)(d), the commutation value is equal to the amount of the lump sum that, if paid, would extinguish the member’s entitlement to benefits under the scheme concerned.