Article 34A Payments to financially dependent children aged 23 or overF1

(1)

Paragraph (2) applies to the payment of a pension death benefit by a pension scheme which falls within paragraph 1(1) of Schedule 36 where—

(a)

any of Conditions A to D is satisfied; and

(b)

the scheme rules condition is satisfied.

(2)

Paragraph 15(2) of Schedule 28 shall be modified as follows—

(a)

at the end of paragraph (a) omit the word “or”; and

(b)

after paragraph (b) insert—

“(c)
has reached that age and—
(i)
is financially dependent on the member at the date of the member’s death, or
(ii)
the financial relationship with the member at the date of the member’s death is one of mutual dependence.”.

(3)

The Conditions A to D mentioned in paragraph (1) are:

Condition A
The member’s (“M’s”) pension was in payment on or before 1st July 2008.
Condition B
The pension death benefit was in payment on 1st July 2008.
Condition C
The entitlement to the pension death benefit arose before 1st July 2008.
Condition D
The entitlement to the pension death benefit was subject to the discretion of the trustees of the scheme and the discretion was capable of being exercised (in favour of the child having such an entitlement) so that the entitlement could have arisen before 1st July 2008.

(4)

The scheme rules condition mentioned in paragraph (1) is:

Scheme rules condition
The rules of the pension scheme on 5th April 2006 allowed a pension to be paid to a child (“C”) of the member (“M”) following M’s death if, at the date of M’s death, C was financially dependent on M or C’s financial relationship with M was one of mutual dependence.

(5)

Paragraph (2) also applies to the payment of a pension death benefit by a qualifying transferee scheme (as to which see article 34B) where—

(a)

paragraph (2) had applied to payment by the original pension scheme or another transferee pension scheme; or

(b)

paragraph (2) would have applied—

(i)

if there had been no block transfer on or after the relevant date, and

(ii)

if payment had been by the original pension scheme.

(6)

For the purposes of paragraph (5), the relevant date is—

(a)

in relation to Condition A, the later of—

(i)

6th April 2006, and

(ii)

the date on which the member’s pension came into payment; and

(b)

in relation to Condition B, C or D, the later of—

(i)

6th April 2006, and

(ii)

the date of the member’s death.

Annotations

Textual amendments

F1: Arts. 34-34B substituted for art. 34 (with effect in accordance with art. 1 of the amending S.I.) by The Taxation of Pension Schemes (Transitional Provisions) (Amendment No. 2) Order 2009 (S.I. 2009/1989), arts. 1, 2(2)