Section 58: Restrictions on conversion of benefits during winding up etc: Great Britain
215.This section will prevent non-money purchase benefits being converted into money purchase benefits after the date the occupational pension scheme begins to wind up. This is to prevent a member avoiding a reduction in their benefits, in a situation where an underfunded scheme winds up in accordance with section 73 of the Pensions Act 1995, by changing the category of their benefits from non-money purchase to money purchase.
216.This section also restricts the options available to members with non-money purchase benefits when their pension scheme is in a Pension Protection Fund (PPF) assessment period. At present under section 135 of the Pensions Act 2004, non-money purchase benefits cannot be transferred or discharged during this period. This provision prevents conversion of these benefits to money purchase benefits.
