The Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006

Lifetime annuity – unauthorised payments and prescribed purposes U.K.

6.—(1) In a case within paragraph 3(2B)(a) of Schedule 28 (transfer of sums or assets on cessation of lifetime annuity) where a new lifetime annuity becomes payable, the new lifetime annuity is to be treated as if it were the original lifetime annuity for the purposes of Part 4 prescribed in table 2 to the extent that the amount of the sums and the value of the assets applied to purchase the new lifetime annuity are equal to the amount of the sums and the value of the assets transferred.

(2) In any other case within paragraph 3(2B), the relevant registered pension scheme is to be treated as making an unauthorised payment to the member of an amount equal to the aggregate of the amount of the sums and the market value of the assets transferred.

Table 2

Prescribed purposes – lifetime annuities

Provision	Purpose
[F1 Section 165(1), pension rule 1	To determine whether the individual has reached the normal minimum pension age by reference to the day on which the original lifetime annuity was first paid.]
[F2 Section 172A (surrender)	To determine for the purposes of section 172A(1) and (2) whether a surrender of (or agreement to surrender) rights to payments under a lifetime annuity has occurred.]
Section 216(1), benefit crystallisation event 4 (benefit crystallisation event on becoming entitled to a lifetime annuity)	To determine whether the individual has become entitled to a lifetime annuity by reference to the original annuity (to prevent a benefit crystallisation event occurring in relation to the individual becoming entitled to the new lifetime annuity).
Paragraph 1(1) and (3)(a) of Schedule 29 (pension commencement lump sum)	To determine whether the member has become entitled to a lump sum in connection with the member becoming entitled to a lifetime annuity by reference to the original annuity (to prevent a lump sum to which a member becomes entitled in connection with becoming entitled to the new lifetime annuity being a pension commencement lump sum).
Paragraph 16(3) of Schedule 29 (annuity protection lump sum death benefit)	To determine— (i) the amount crystallised by reason of the member becoming entitled to the annuity (AC) by reference to the member becoming entitled to the original lifetime annuity, (ii) the amount of pension paid (AP) as that paid in respect of the original lifetime annuity and the new lifetime annuity in respect of the period between the member becoming entitled to the original lifetime annuity and the member’s death, (iii) the total amount of annuity protection lump sum death benefit (TPLS) by reference to that paid in respect of the original lifetime annuity and the new lifetime annuity.

Textual Amendments

F1 Words in reg. 6(2) Table 2 inserted (retrospective to 6.4.2010) by The Registered Pension Schemes (Transfer of Sums and Assets) (Amendment) Regulations 2011 (S.I. 2011/733), regs. 1(2), 4(2)

F2 Words in reg. 6(2) Table 2 inserted (retrospective to 10.10.2007) by The Registered Pension Schemes (Transfer of Sums and Assets) (Amendment) Regulations 2008 (S.I. 2008/1946), regs. 1(2), 2(2)

Commencement Information

I1 Reg. 6 in force at 6.4.2006, see reg. 1