C1C3C10Part I Occupational pensions

Annotations:
Modifications etc. (not altering text)
C10

Pt. I: Pensions Act 2004 (c.35), Pt. 3 construed as one with Pt. I of this Act (4.12.2005 for specified purposes, 30.12.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 233, 322(1) (with s. 313); S.I. 2005/3331, art. 2(1)(a)(b), Sch. Pt. 1

Assignment, forfeiture, bankruptcy etc.

91I1C9C17C5C6C4C7C8C11C13C14C15C16 Inalienability of occupational pension.

I31

Subject to subsection (5), where a person is entitled F1to a pension under an occupational pension scheme or has a right to a future pension under such a scheme—

a

the entitlement or right cannot be assigned, commuted or surrendered,

b

the entitlement or right cannot be charged or a lien exercised in respect of it, and

c

no set-off can be exercised in respect of it,

and an agreement to effect any of those things is unenforceable.

I32

Where by virtue of this section a person’s entitlement F2to a pension under an occupational pension scheme, or right to a future pension under such a scheme, cannot, apart from subsection (5), be assigned, no order can be made by any court the effect of which would be that he would be restrained from receiving that pension.

F63

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I24

Subsection (2) does not prevent the making of—

a

an attachment of earnings order under the M1Attachment of Earnings Act 1971, or

b

an income payments order under the M2Insolvency Act 1986.

I25

In the case of a person (“the person in question”) who is entitled F3to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme, subsection (1) does not apply to any of the following, or any agreement to effect any of the following—

C12a

an assignment in favour of the person in question’s widow, widowerF9, surviving civil partner or dependant,

C12b

a surrender, at the option of the person in question, for the purpose of—

i

providing benefits for that person’s widow, widowerF9, surviving civil partner or dependant, or

ii

acquiring for the person in question entitlement to further benefits under the scheme,

C12c

a commutation—

i

of the person in question’s benefit on or after retirement or in exceptional circumstances of serious ill health,

ii

in prescribed circumstances, of any benefit for that person’s widow, widowerF9, surviving civil partner or dependant, or

iii

in other prescribed circumstances,

C2d

subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or F4right, (except to the extent that it includes transfer credits other than prescribed transfer credits) for the purpose of enabling the employer to obtain the discharge by him of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by him,

e

subject to subsection (6), except in prescribed circumstances a charge or lien on, or set-off against, the person in question’s entitlement, or F5right, for the purpose of discharging some monetary obligation due from the person in question to the scheme and—

i

arising out of a criminal, negligent or fraudulent act or omission by him, or

ii

in the case of a trust scheme of which the person in question is a trustee, arising out of a breach of trust by him,

F7f

subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme arising out of a payment made in error in respect of the pension.

I26

Where a charge, lien or set-off is exercisable by virtue of subsection (5)(d) F8, (e) or (f) —

a

its amount must not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person in question’s entitlement or accrued right, and

b

the person in question must be given a certificate showing the amount of the charge, lien or set-off and its effect on his benefits under the scheme,

and where there is a dispute as to its amount, the charge, lien or set-off must not be exercised unless the obligation in question has become enforceable under an order of a competent court or in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.

I27

This section is subject to section 159 of the M3Pension Schemes Act 1993 (inalienability of guaranteed minimum pension F10... ).