Pension commencement lump sum: scheme pensions under money purchase arrangements
25(1)Paragraph 34 of that Schedule (transitional provisions: entitlement to lump sums exceeding 25% of uncrystallised rights) is amended as follows.
(2)In the sub-paragraph (7A) of paragraph 2 of Schedule 29 substituted by sub-paragraph (2), in the definition of AC, for “sub-paragraph (7B)” substitute “sub-paragraphs (7AA) and (7B)”.
(3)After that substituted sub-paragraph insert—
“(7AA)Where the pension in connection with which the lump sum is paid is a scheme pension under a money purchase arrangement, AC is the scheme pension purchase price, as it would be defined by paragraph 3 if the words “but subject to sub-paragraph (8)” in sub-paragraph (7A) and sub-paragraph (8) were omitted.”
(4)In the sub-paragraph (7B) so substituted, for “the lump sum and the amount crystallised” substitute “what would otherwise be LS or AC”.
(5)In sub-paragraph (3), insert at the end “(but without prejudice to its operation for the purposes of paragraph 2(7AA) of Schedule 29 as inserted by sub-paragraph (2)).”