Pension Schemes Act 2015

Pensions Act 2004 (c. 35)

26 (1) Section 23 (freezing orders) is amended as follows.

(2) In subsection (1), for “which is not a money purchase scheme” substitute “unless it is excluded by subsection (1A)”.

(3) After that subsection insert—

“(1A) A scheme is excluded if—

(a) all the benefits that may be provided under the scheme are money purchase benefits, and

(b) the scheme does not provide for there to be a third party promise about the rate or amount of any benefit at a time before the benefit comes into payment (see subsection (10A)).”

(4) In subsection (2), for “such a scheme” substitute “a scheme to which this section applies”.

(5) After subsection (10) insert—

“(10A) For the purposes of subsection (1A)(b), a scheme provides for there to be a third party promise if the scheme—

(a) requires the promise to be obtained from a third party, or

(b) provides for the member to be given the option of requiring a promise to be obtained from a third party (whether or not the option is subject to conditions).”