Term and reduction in the rate of new pension
4.—(1) In the case of a new pension treated as the original pension by virtue of regulation 3(2) a reduction of that pension is a prescribed circumstance for the purposes of paragraph 2(4) of Schedule 28(1) (scheme pension) if—
(a)the rate of the pension payable under the new pension on the day on which the member becomes entitled to it is not less than the rate payable under the original pension immediately before the original pension ceased to be payable, save to the extent that any reduction reflects reasonable administration costs of the transfer of sums or assets, and
(b)where the new pension is payable until the later of the member’s death and the end of a term certain, that term ends before the date on which the term certain under the original pension would have ended.
(2) In paragraph (1)(a) “administration costs” includes the payment of wages, salaries or fees to persons engaged in administering the pension scheme.
Paragraph 2(4) was amended by sections 101 and 104 Finance Act 2005 (c. 7), section 161 Finance Act 2006 (c. 25), section 70 Finance Act 2007 (c. 11), and section 20 (1)-(4) Finance Act 2016 (c. 24) (by virtue of S.I. 2016/1006).