Regulation 2 Modification of scheme rules

(1)

This regulation applies where a scheme administrator of a registered pension scheme (“the scheme”) satisfies all or part of a member’s liability to the annual allowance charge, either on a voluntary basis or pursuant to a liability under section 237B of the Finance Act 2004^f1.

(2)

The rules of the scheme shall be modified so as to allow for a consequential adjustment to be made to the entitlement of the member to benefits under the scheme on a basis that is just and reasonable having regard to normal actuarial practice. This paragraph is subject to paragraph (3).

(3)

Any modification to the scheme’s rules made by virtue of paragraph (2) is subject to section 159 of the Pension Schemes Act 1993^f2 or section 155 of the Pension Schemes (Northern Ireland) Act 1993^f3 (inalienability of guaranteed minimum pension etc).

Annotations

Footnotes

f1: Section 237B was inserted by paragraph 15 of Schedule 17 to the Finance Act 2011.
f2: 1993 c. 48. Section 159 was amended by paragraph 41 of Schedule 3 to the Pensions Act 1995 (c. 26) and section 14(2) and Schedule 13 to the Welfare Reform and Pensions Act 1999 (c. 30).
f3: 1993 c. 49. Section 155 was amended by S.I.1995/3213 (N.I. 22) and S.I. 1993/3147 (N.I. 11).