Regulation 9 Controlling directors—benefits on retirement due to incapacity or serious ill-health

(1)

The prescribed person in relation to an approved scheme shall furnish to the Board, at the time prescribed by paragraph (2) below—

(a)

notification of any proposal such as is specified in paragraph (3) below and is made on or after the date of coming into force of these Regulations, and

(b)

the information specified in paragraph (4) below.

(2)

The time prescribed—

(a)

in the case of the proposal specified in paragraph (3)(a) below, is any time not less than 28 days prior to the proposed payment of the benefits;

(b)

in the case of the proposal specified in paragraph (3)(b) below, is any time not less than 14 days prior to the proposed payment of the benefits.

(3)

The proposals specified in this paragraph are—

(a)

any proposal for the scheme to pay benefits to a person who is a controlling director of a company which is an employer in relation to the scheme in circumstances where that person is to retire on grounds of incapacity prior to the normal retirement date;

(b)

any proposal for the scheme to pay benefits commuted wholly to lump sum form to a person who is a controlling director of a company which is an employer in relation to the scheme in circumstances where that person is to be retired on grounds of serious ill-health.

(4)

The information to be furnished shall be in the form of copies of documents relating to the decision of the administrator of the scheme to permit retirement on grounds of incapacity prior to the normal retirement date or, as the case may be, full commutation of benefits to lump sum form on retirement on grounds of serious ill-health, including copies of medical reports and other documents in the possession or under the control of the prescribed person containing details of the medical evidence which formed the basis of that decision.

(5)

In this regulation—

“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” means ill-health which is such as to give rise to a life expectancy of less than one year.