The Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) (Amendment) Regulations 1999

Explanatory Note

(This note is not part of the Regulations)

Part II of Schedule 6 to the Finance Act 1989 (“the Schedule”) modifies the rules of retirement benefit schemes approved by the Commissioners of Inland Revenue (“the Board”) before 27th July 1989. The Schedule contains powers enabling the Board, by regulations, to provide that, in circumstances prescribed in the regulations, the Schedule or any provision of it shall not apply or shall apply with such modifications as may be so prescribed. Those powers were exercised in the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990 (S.I. 1990/2101) (“the principal Regulations”), which have been amended by S.I. 1993/3220, 1996/3114 and 3233.

These amending Regulations insert a new regulation (7AA) in the principal Regulations. The new regulation applies in circumstances where a pension commences to be paid from funds provided by additional voluntary contributions made by the employee before benefits become payable under the principal provisions of the scheme, or the main scheme, which those additional voluntary contributions are intended to supplement; and provides for paragraph 23 of the Schedule (lump sum payable on commutation of pension) to be modified so that the limits on the lump sum which can be paid are not calculated on the basis of the initial pension payable from the additional voluntary contributions only.