The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012

Amendment of the Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006

6.—(1) Regulation 15 (modification of Schedule 29) is amended as follows.

(2) In paragraph (2) (modification of paragraph 1)—

(a) in paragraph (b) of the sub-paragraph (4B) treated as inserted, at the end insert “and disregarding paragraph 2 of Schedule 32.”, and

(b) in paragraph (b) of the sub-paragraph (4C) treated as inserted, at the end insert “and disregarding paragraph 2 of Schedule 32.”.

(3) In paragraph (3) (modification of paragraph 2)—

(a) in sub-paragraph (a), in the definition of “AAC” treated as substituted—

(i) in paragraph (a) after “entitlement to a pension arises” insert “, as adjusted under sub-paragraph (7)”, and

(ii) for the definition of “RP” substitute—

“RP is the referable portion of the amount which would have crystallised, had the scheme paying it been a registered pension scheme and disregarding paragraphs 2 and 15A of Schedule 32, in respect of any previous pension commencement lump sum or pension to which the member became entitled since the relevant BCE occurred, as adjusted under sub-paragraph (7) (but excluding any amount included in paragraph (a)).  ”,

(b) after sub-paragraph (a) insert—

“(aa) in sub-paragraph (7) for “the relevant amount” substitute “the amount which is, or would have, crystallised”;”,

(c) in sub-paragraph (b)—

(i) for “after sub-paragraph (6)” substitute “after sub-paragraph (7)”,

(ii) renumber the sub-paragraph (6A) treated as inserted as sub-paragraph (7ZA), and

(iii) in sub-paragraph (7ZA) treated as inserted (as renumbered in accordance with this sub-paragraph) for “paragraph (6)” substitute “sub-paragraph (6)”, and

(d) after sub-paragraph (b) insert—

“(c) after sub-paragraph (7A) insert—

“(7B) But sub-paragraph (7A)(b) does not apply to anything which, but for paragraph 2 or 15A of Schedule 32, would have constituted a relevant BCE.””.

(4) After paragraph (3) insert—

“(3A) In paragraph 3, after sub-paragraph (7) insert—

“(7ZA) Where a relevant BCE has occurred in relation to the member, sub-paragraph (6) has effect as if for the definition of “AC” in sub-paragraph (7) there were substituted—

““AC” is —

(a)

in a case where the member becomes entitled to the pension before reaching the age of 75, the referable portion of the amount that, had the scheme been a registered pension scheme, would have crystallised by reason of the member becoming entitled to the pension, disregarding paragraph 3 of Schedule 32, and

(b)

in a case where the member becomes entitled to the pension after reaching that age, the referable portion of the amount that would have been so crystallised (disregarding that paragraph) but for paragraph 2 of that Schedule, had the scheme been a registered pension scheme. ””

(5) In paragraph (4)(b) (modification of paragraph 4)—

(a) renumber the sub-paragraphs treated as inserted as sub-paragraphs (4) to (7),

(b) in paragraph (b) of the sub-paragraph (5) treated as inserted (as renumbered in accordance with this paragraph), for “sub-paragraph (5) or (6)” substitute “sub-paragraph (6) or (7)”,

(c) in paragraph (b) of the sub-paragraph (6) treated as inserted (as renumbered in accordance with this paragraph), at the end insert “and disregarding paragraph 2 of Schedule 32.”, and

(d) in paragraph (b) of the sub-paragraph (7) treated as inserted (as renumbered in accordance with this paragraph), at the end insert “and disregarding paragraph 2 of Schedule 32.”.

(6) In paragraph (6) (modification of paragraph 7)—

(a) in paragraph (b) of the sub-paragraph (7) treated as inserted, at the end insert “and disregarding paragraph 2 of Schedule 32.”, and

(b) in paragraph (b) of the sub-paragraph (8) treated as inserted, at the end insert “and disregarding paragraph 2 of Schedule 32.”.

(7) In paragraph (7) (modification of paragraph 10)—

(a) in paragraph (b) of the sub-paragraph (5) treated as inserted, at the end insert “and disregarding paragraph 2 of Schedule 32.”, and

(b) in paragraph (b) of the sub-paragraph (6) treated as inserted, at the end insert “and disregarding paragraph 2 of Schedule 32.”.

(8) After paragraph (9) insert—

“(9A) In paragraph 12 (interpretation of Part 1), after sub-paragraph (1A) insert—

“(1B) But sub-paragraph (1A)(b) does not apply to anything which, but for paragraph 2 of Schedule 32, would have constituted a relevant BCE.””.