The Taxation of Pension Schemes (Transitional Provisions) Order 2006

[F1 Payments to children aged 23 or over U.K.

34.— (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) either of Conditions A and B is satisfied and the first scheme rules condition is satisfied; or

(b) Condition C and the second scheme rules condition are 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 is in full time education or undertaking vocational training, or

(d) on reaching that age or, if later, on ceasing full time education or vocational training is, in the opinion of the scheme administrator, suffering from physical or mental deterioration which is sufficiently serious to prevent the individual from following a normal employment or which would seriously impair his earning capacity.”.

(3) The Conditions A, B and C mentioned in paragraph (1) are:

• Condition A

  The pension was in payment to a child (“C”) of the member (“M”) on 5th April 2006 or M had died on or before that date and a pension was due to come into payment to C.

• Condition B

  The pension was in payment to M on 5th April 2006 and C was born on or before 5th April 2007.

• Condition C

  An election such as is described in the second scheme rules condition had been made by M and accepted by the scheme administrator on or before 5th April 2006.

(4) The scheme rules conditions mentioned in paragraph (1) are:

• First scheme rules condition

  The rules of the pension scheme allowed a pension to be paid to a child (“C”) of the member (“M”) following M’s death until C ceased full-time education or vocational training.

• Second scheme rules condition

  The rules of the pension scheme on 10 December 2003 allowed an irrevocable election to be made designating part of the sums or assets representing M’s rights as available for the payment of a pension to C following M’s death until C ceased full-time education or vocational training.

(5) For the purpose of the first scheme rules condition, a rule that the pension would not be paid to C if or after C reached a specified age (even if that is before C ceased full-time education or vocational training) does not prevent the condition being satisfied.

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

(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 6th April 2006, and

(ii) if payment had been by the original pension scheme.]

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)