Regulation 14ZA Information provided to member by scheme administrator where it appears member may be first flexibly accessing pension rightsF1

United Kingdom

(1)

If a relevant event (see paragraph (2)) occurs in relation to a member of a registered pension scheme, the scheme administrator—

(a)

must provide the member with a statement—

(i)

stating the date of the relevant event, and

(ii)

explaining the matters specified in paragraph (3), and

(b)

must do so before the end of the 31 days beginning with the date of the relevant event,

but this is subject to paragraph (4).

(2)

For the purposes of this regulation—

(a)

if—

(i)

the member has a member's flexi-access drawdown fund in respect of an arrangement under the scheme, and

(ii)

the fund came into being as a result of sums or assets being designated on or after 6 April 2015 as available for the payment of drawdown pension, or as a result of the operation of paragraph 8D(2) of Schedule 28,

a relevant event occurs when a qualifying payment is made to the member from the fund,

(b)

if—

(i)

the member has a member's drawdown pension fund in respect of an arrangement under the scheme, and

(ii)

the sums and assets that make up the fund become newly-designated funds by the operation of paragraph 8B of Schedule 28,

a relevant event occurs when a qualifying payment is made to the member from the member's flexi-access drawdown fund in respect of the arrangement,

(c)

a relevant event occurs when an uncrystallised funds pension lump sum is paid to the member by the scheme,

(d)

if the member is entitled to payment of a lifetime annuity under a flexible annuity contract as defined by section 227G(8), a relevant event occurs when the first payment of the annuity is made,

(e)

if—

(i)

the member is entitled to payment of a scheme pension under a money purchase arrangement under the scheme,

(ii)

the member became entitled to the scheme pension on or after 6 April 2015,

(iii)

the member became entitled to the scheme pension at a time when fewer than 11 other individuals were entitled to the present payment of a scheme pension, or dependants' scheme pension, under the scheme, and

(iv)

the scheme pension is not payable under an annuity contract treated under section 153(8) or (8A) as having become a registered pension scheme,

a relevant event occurs when the first payment of the scheme pension is made, and

(f)

a relevant event occurs when a stand-alone lump sum is paid on or after 6 April 2015 to the member by the scheme in circumstances where article 25B(2) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 applies.

(3)

The matters mentioned in paragraph (1)(a)(ii) are—

(a)

that a relevant event has occurred in relation to the member and that, as a result, the member has flexibly accessed the member's pension rights (although may have first done so previously),

(b)

that if in any tax year the total of the pension inputs to money purchase arrangements, and certain hybrid arrangements, relating to the member exceeds F2£10,000—

(i)

there will be an annual allowance tax charge on the excess, and

(ii)

the annual allowance for pension inputs to other arrangements relating to the member will be £10,000 less than it would otherwise be, and

(c)

the duties under regulation 14ZB and the circumstances in which the member will have to comply with them.

(4)

The scheme administrator is not required to comply with paragraph (1) in relation to the relevant event if—

(a)

the scheme administrator has complied with paragraph (1) in respect of an earlier relevant event, or

(b)

the scheme administrator is, at any time before complying with paragraph (1) in relation to the relevant event, informed—

(i)

by the member, or

(ii)

by the scheme administrator of another registered pension scheme F3or the scheme manager of a qualifying recognised overseas pension scheme or former qualifying recognised overseas pension scheme,

that the member flexibly accessed pension rights at a time before the relevant event occurred.

(5)

In this regulation, a reference to a qualifying payment from a fund is a reference to—

(a)

payment of income withdrawal from the fund, or

(b)

payment of a short-term annuity purchased using sums or assets out of the fund,

but does not include payment at a time when the whole of the fund represents rights attributable to a disqualifying pension credit.

(6)

In paragraph (5) “disqualifying pension credit” is to be read in accordance with paragraph 2(3) and (4) of Schedule 29.

Annotations

Textual amendments

F1: Regs. 14ZA-14ZE inserted (6.4.2015) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 paras. 87, 91(a) (with Sch. 1 para. 91(b))
F2: Sum in reg. 14ZA(3)(b) substituted (for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1(3), 9(7)
F3: Words in reg. 14ZA(4)(b)(ii) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Registered Pension Schemes (Provision of Information) (Amendment No. 2) Regulations 2015 (S.I. 2015/1455), regs. 1(1)(2), 7