The Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order 2011

Amendment of the Taxation of Pension Schemes (Transitional Provisions) Order 2006

4.  After article 41 (lump sum death benefits – death of a dependant) insert—

“Protected pension age and multiple pensions

42.— (1) In the case of a member who has a protected pension age in connection with at least two of the three types of pension listed in paragraph (2) from the same registered pension scheme, Schedule 36 is modified in accordance with paragraph (3).

(2) The three types of pension are—

(a) a scheme pension under a defined benefits arrangement;

(b) a scheme pension under a money purchase arrangement;

(c) a lifetime annuity.

(3) In paragraphs 22(7)(a) and 23(7) for “on the same date” substitute “within a period of six months beginning with the earliest date on which the individual becomes entitled to any of the benefits.”.

Protected pension age and multiple pensions - member dies before receiving all pensions

43.— (1) Schedule 36 is modified in accordance with paragraphs (3) and (4) where—

(a) a member has a protected pension age in connection with at least two of the three types of pension listed in regulation 42(2) from the same registered pension scheme;

(b) the member dies before the end of the specified period after becoming entitled to at least one but not all of the benefits in respect of the pensions; and

(c) the scheme administrator considers that, had the individual not died, the individual would have become entitled to all of the benefits in respect of the pensions within the specified period.

(2) The “specified period” is the period of six months beginning with the earliest date on which the individual became entitled to any of the benefits in respect of the pensions.

(3) For paragraph 22(7)(a) substitute—

“(a) the scheme administrator considers that, had the individual not died, the member would have become entitled to all the benefits payable to the member under arrangements under the pension scheme (to which the member did not have an actual entitlement on or before 5th April 2006) within a period of six months beginning with the earliest date on which the individual became entitled to any of the benefits, and”.

(4) For paragraph 23(7) substitute—

“(7) The retirement condition is met in relation to the member and the pension scheme if the scheme administrator considers that, had the individual not died, the member would have become entitled to all the benefits payable to the member under arrangements under the pension scheme (to which the member did not have an actual entitlement on or before 5th April 2006) within a period of six months beginning with the earliest date on which the individual became entitled to any of the benefits.”.”