SCHEDULE 6Continuity Option 1: transfer out and winding up
Periodic income
7
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 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.