Finance Act 2005

Unsecured pension funds and alternatively secured pension funds

20 (1) Paragraph 11 of Schedule 28 (member’s alternatively secured pension fund) is amended as follows.

(2) In sub-paragraph (1)(b) (exclusion of certain sums and assets), for “for purchasing a scheme pension or a lifetime annuity or paid as income withdrawal” substitute “towards the provision of a scheme pension.”

(3) For sub-paragraphs (2) and (3) (conditions to be met) substitute—

“(2) Condition A is that they—

(a) were part of the member’s unsecured pension fund in respect of the arrangement when the member reached the age of 75, or

(b) arise, or (directly or indirectly) derive, from sums or assets within paragraph (a) or which so arise or derive.

(3) Condition B is that they—

(a) became held for the purposes of the arrangement after the member reached the age of 75 or arise, or (directly or indirectly) derive, from sums or assets which became so held or which so arise or derive, or

(b) if the arrangement is a relevant arrangement, have at any time since the member reached that age been designated as available for the payment of alternatively secured pension to the member or arise, or (directly or indirectly) derive, from sums or assets which have been so designated or which so arise or derive.”

(4) After sub-paragraph (4) insert—

“(5) If any sums or assets representing the member’s alternatively secured pension fund in respect of an arrangement under the pension scheme would (apart from this sub-paragraph) come to be taken to represent another alternatively secured pension fund of his under the pension scheme, or a dependant’s alternatively secured pension fund of his under the pension scheme, they are to be treated as not doing so.”