C1C2C4C3C5C6Part III Certification of Pension Schemes and Effects on Members’ State Scheme Rights and Duties

Annotations:
Modifications etc. (not altering text)
C2

Pt. III: power to modify conferred (1.6.1996 for specified purposes, 6.4.1997 in so far as not already in force) by Pensions Act 1995 (c. 26), ss. 149(1), 180(1); S.I. 1996/778, art. 2(6); S.I. 1997/664, art. 2(3), Sch. Pt. 2

C2C4C3C5C6Chapter I Certification

General requirements for certification

I110C5C6 Protected rights and money purchase benefits.

1

Subject to F3the following provisions of this section, the protected rights of a member of a pension scheme are his rights to money purchase benefits under the scheme.

2

If the rules of an occupational pension scheme so provide, a member’s protected rights are—

a

his rights under the scheme which derive from the payment of minimum payments F1and payments under section 42A(3) together with any payments by the F2Inland Revenue to the scheme under section 7 of the M1Social Security Act 1986 in respect of the member;

b

any rights of the member to money purchase benefits which derive from protected rights under another occupational pension scheme or under a personal pension scheme which have been the subject of a transfer payment; and

c

such other rights as may be prescribed.

3

If the rules of a personal pension scheme so provide, a member’s protected rights are—

a

his rights under the scheme which derive from any payment of minimum contributions to the scheme; and

b

any rights of his to money purchase benefits which derive from protected rights under another personal pension scheme or protected rights under an occupational pension scheme which have been the subject of a transfer payment; and

c

such other rights as may be prescribed.

C7C8F44

Where, in the case of a scheme which makes such provision as is mentioned in subsection (2) or (3), a member’s rights under the scheme become subject to a pension debit, his protected rights shall exclude the appropriate percentage of the rights which were his protected rights immediately before the day on which the pension debit arose.

C7C85

For the purposes of subsection (4), the appropriate percentage is—

a

if the order or provision on which the pension debit depends specifies the percentage value to be transferred, that percentage;

b

if the order or provision on which the pension debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of subsection (1) of section 29 of the Welfare Reform and Pensions Act 1999 (lesser of specified amount and cash equivalent of transferor’s benefits) represents of the amount mentioned in subsection (3)(b) of that section (cash equivalent of transferor’s benefits).

F56

Where, in the case of a scheme which makes such provision as is mentioned in subsection (2) or (3), any liability of the scheme in respect of a member’s protected rights ceases by virtue of a civil recovery order, his protected rights are extinguished or reduced accordingly.