Modifications etc. (not altering text)
C1Pt. 1 applied (with modifications) (1.7.2012) by The Automatic Enrolment (Offshore Employment) Order 2012 (S.I. 2012/1388), arts. 1(1), 2 (with art. 5)
78A—(1) This section applies for the purposes of [F2paragraph (a) of the definition] of “money purchase benefits” in section 78.
(2) A benefit other than a pension in payment falls within this section if its rate or amount is calculated solely by reference to assets which (because of the nature of the calculation) must necessarily suffice for the purpose of its provision to or in respect of the member.
(3) A benefit which is a pension in payment falls within this section if—
(a)its provision to or in respect of the member is secured by an annuity contract or insurance policy made or taken out with an insurer, and
(b)at all times before coming into payment the pension was a benefit falling within this section by virtue of subsection (2).
(4) For the purposes of subsection (2) it is immaterial if the calculation of the rate or amount of the benefit includes deductions for administrative expenses or commission.
(5) In this section references to a pension do not include income withdrawal or dependants' income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004).]
Textual Amendments
F1S. 78A inserted (retrospectively) by Pensions Act (Northern Ireland) 2012 (c. 3), ss. 27(3)(6), 34(3); S.R. 2014/203, art. 2
F2Words in s. 78A(1) substituted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in operation) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 4 para. 7; S.R. 2022/197, art. 3(a)