SCHEDULE 6Continuity Option 1: transfer out and winding up
Periodic income
I17
1
Where a person was a pensioner beneficiary of the scheme immediately prior to the beginning of the winding-up period, or would have become a pensioner beneficiary of the scheme during the winding-up period but for the provisions of this Schedule, the trustees must pay that person a periodic income under and in accordance with this paragraph.
2
A payment of periodic income by a scheme under this paragraph is not a payment of benefits (including pension) under the scheme.
3
The periodic income is payable to a person who was a pensioner beneficiary of the scheme immediately prior to the beginning of the winding–up period during the period beginning with the date of the winding-up commencement time and continuing until the earlier of the date of the discharge time in relation to that person or the date that person would otherwise have ceased to be a pensioner beneficiary.
4
The periodic income is payable to a person who would have become a pensioner beneficiary of the scheme during the winding-up period but for the provisions of this Schedule during the period beginning with the date that person would have become a pensioner beneficiary and continuing until the earlier of the date of the discharge time in relation to that person or the date that person would otherwise have ceased to be a pensioner beneficiary.
5
In the case of a person who was a pensioner beneficiary immediately prior to the beginning of the winding-up period, payments of periodic income before the initial quantification has been carried out must be made—
a
on the same date that a payment of pension would have been due to be made to that person had the winding-up of the scheme not commenced; and
b
at the same rate or amount as the last payment of pension made to that person before the beginning of the winding-up period.
6
In the case of a person who would have become a pensioner beneficiary of the scheme during the winding-up period but for the provisions of this Schedule, payments of periodic income before the initial quantification has been carried out must—
a
be made on the same date that a payment of pension would have been due to be made to that person had the winding-up of the scheme not commenced; and
b
be calculated by reference to the last actuarial valuation carried out before the beginning of the winding-up period.
7
After the initial quantification has been carried out, the amount or rate of the periodic income payable to a person must—
a
be calculated by reference to the amount that represents the value of the person’s accrued rights to benefits under the scheme;
b
until the winding-up quantification has been carried out, be calculated and paid on the basis of the initial estimate;
c
after the winding-up quantification has been carried out, be calculated and paid on the basis of the latest of the winding-up quantification or any subsequent quantification;
d
be adjusted from time to time to take account of any subsequent quantification carried out up to and including the penultimate quantification.