Paragraph 14

England, Wales and Scotland

(1)

F1Cash equivalents are to be calculated and verified in the prescribed manner.

(2)

The power to make regulations conferred by sub-paragraph (1) above includes power to provide that cash equivalents are to be calculated and verified in such manner as may be approved in particular cases—

(a)

by prescribed persons; or

(b)

by persons with prescribed professional qualifications or experience; or

(c)

by persons approved by the Secretary of State

F2and power to provide that they shall be calculated and verified in accordance with guidance prepared by a prescribed body.

(3)

Regulations may provide—

(a)

that in calculating cash equivalents account shall be taken—

(i)

of any surrender, commutation or forfeiture of the whole or part of a member’s pension which occurs before the trustees or managers of the scheme of which he is a member do what is needed to comply with what he requires under paragraph 16 below;

X1 C1(ii)

in a case where a paragraph 13(5) above applies, of the need to deduct an appropriate amount to provide guaranteed minimum pensions F3or give effect to protected rights; and

F4(ii)

in a case where paragraph 13(5) above applies, of the need to deduct an appropriate amount to make provision for protected rights; and

F5(b)

that in prescribed circumstances a cash equivalent shall be increased or reduced.

(4)

Without prejudice to the generality of sub-paragraph (3) above—

(a)

the circumstances that may be specified by virtue of paragraph (b) of that sub-paragraph include—

(i)

the length of time which elapses between the termination of a member’s pensionable service and his exercise of the option conferred by this Part of this Schedule or regulations under it;

(ii)

failure by the trustees or managers of a scheme to do what is needed to carry out what a member of the scheme requires within six months of the date on which they receive an application from him under paragraph 16 below; and

(iii)

the state of the funding of a scheme; and

(b)

regulations under that sub-paragraph may specify as the amount by which a cash equivalent is to be reduced such an amount that a member has no right to receive anything.

Annotations

Textual amendments

F1: Words substituted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 10, para. 30(d)(i)
F2: Words added (with effect from 25.7.1986) by Social Security Act 1986 (c.50), Sch. 10, para. 30(d)(ii)
F3: Words inserted (with effect from 6.4.1988) by The Personal and Occupational Pension Schemes (Modification of Enactments) Regulations 1987 (S.I. 1987/1116, Sch. 6, para. 5)
F4: Sch. 1A, para. 14(3)(a)(ii) as set out second, substituted for para. 14(3)(a)(ii) as set out first, by S.I. 1987/1116, Sch. 4, para. 10(a)
F5: Sch. 1A para. 14(3)(b) substituted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 10, para. 30(d)(iii)

Modifications

C1: Under reg. 3(10) of, and para. 10 of Sch. 4 to, S.I. 1987/1116, para. 14 above has effect (27.7.1987) in relation to personal pension schemes subject to the omission of sub-paragraph 14(4)(a)(i), and to the modification, specified in para. 1O(a) of Sch. 4 to that S.I., of sub-para. 14(3)(a)(ii) as it stood before 6.4.1988. As so modified, sub-para. 14(3)(a)(ii) reads as set out second

Editorial notes

X1: Sch. 1A, para. 14(3)(a)(ii) as set out second, substituted for para. 14(3)(a)(ii) as set out first, by S.I.1987/1116, Sch. 4, para. 10(a)

Notes on Schedule 1A

Textual amendments

F1: Sch. 1A repealed (7.2.1994) by 1993 c. 48, s. 188(1), Sch. 5 Pt. I; S.I. 1994/86, art. 2