Pension Schemes Act 1993

163 Exemption of certain schemes from rule against perpetuities. E+W+S

[F1 (1) The rules of law relating to perpetuities shall not apply to the trusts of, or any disposition made under or for the purposes of a personal or occupational pension scheme at any time when this section applies to it.

(2) This section applies to—

(a) a public service pension scheme;

(b) an occupational pension scheme which is a contracted-out scheme in relation to any employment;

F2 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; and

(d) an occupational or personal pension scheme which satisfies prescribed requirements.

(3) Subsection (1) applies whether the trusts or dispositions in question are created or made before or after this section first applies to the scheme, but this section does not validate with retrospective effect any trusts or dispositions which the rules of law relating to perpetuities (including, where applicable, section 3(1) of the M1 Perpetuities and Accumulations Act 1964 (“wait and see”)) already require to be treated as void before this section applies to the scheme.

(4) Regulations under subsection (2)(d) may require a scheme—

(a) to contain provisions in any prescribed form, or to any prescribed effect; or

[F3 (b) to be a registered pension scheme under section 153 of the Finance Act 2004 or to be a scheme that may be expected to satisfy the conditions for registration.]

F4 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Regulations may include provision by which a scheme (other than a public service pension scheme) to which this section ceases to apply may nevertheless be treated as continuing to be a scheme to which it applies for a period of two years from its ceasing to be such a scheme, or for such longer period as the F5 ... [F5 Secretary of State] F5 ... [F5 considers] to be reasonable in the case of a particular scheme.

(7) If this section ceases to apply to a scheme, trusts created and dispositions made under it or for its purposes shall then again be subject to the rules of law relating to perpetuities as if this section had never applied to it.

(8) Subsection (7) is without prejudice to any rights which vested while this section applied.

[F6 (9) Regulations may provide for a scheme, whose fund was registered under the M2 Superannuation and other Trust Funds (Validation) Act 1927 immediately before the repeal of that Act took effect, to retain the benefit of that Act subject to prescribed conditions and either indefinitely or for a prescribed period.]]

Textual Amendments

F1 S. 163 repealed (6.4.2010) by Perpetuities and Accumulations Act 2009 (c. 18), ss. 4(c), 22(2), Sch. (with ss. 15(1)(4), 17, 18); S.I. 2010/37, art. 2

F2 S. 163(2)(c) repealed (6.4.2012 being "the abolition date" for the purposes of s. 15(1) of the amending Act) by Pensions Act 2007 (c. 22), ss. 15(4), 27(7), 30(2)(b), Sch. 4 para. 31, Sch. 7 Pt. 6 (with Sch. 4 Pt. 3); S.I. 2011/1267, art. 2(a)

F3 S. 163(4)(b) substituted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(6)(a)

F4 S. 163(5) omitted (6.4.2006) by virtue of The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 7(6)(b)

F5 Word in s. 163(6) substituted (6.4.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 5 para. 21; S.I. 1996/778, art. 2(5)(a), Sch. Pt. 5; S.I. 1997/664, art. 2(3), Sch. Pt. 2

F6 S. 163(9) omitted (temp. until the coming into force of what remains of 1973 c. 38, s. 69(7)) (7.2.1994) by virtue of Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 9 paras. 1, 2 (with ss. 6(8), 164); S.I. 1994/86, art. 2

Marginal Citations

M1 1964 c. 55.

M2 1927 c. 41.