C1C3C4C5C6C8C9C10C11C15C17C18C19Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C9

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C11

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C15

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C17

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C18

Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C19

Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C15Chapter 3Payments by registered pension schemes

Authorised member payments

I1C7C12C15C14C13C16167C15Pension death benefit rules

C21

These are the rules relating to the payment of pension death benefits by a registered pension scheme in respect of a member of the pension scheme (“the pension death benefit rules”).

  • Pension death benefit rule 1

    No payment of pension death benefit may be made otherwise than to a dependantF10, or nominee or successor, of the member.

  • Pension death benefit rule 2

    No payment of pension death benefit other than a dependants' scheme pension may be made in respect of a defined benefits arrangement.

  • Pension death benefit rule 3

    F3No payment of pension death benefit other than—

    1. a

      a dependants' scheme pension,

    2. b

      a dependants' annuity, or

    3. c

      F4dependants’ drawdown pension,

    may be made to F5a dependant in respect of a money purchase arrangement; but a dependants' scheme pension may only be paid if the member or dependant had an opportunity to select a dependants' annuity instead.

  • F11Pension death benefit rule 3A

    No payment of pension death benefit, other than F14a nominees' annuity in respect of a money purchase arrangement or nominees' drawdown pension in respect of a money purchase arrangement, may be made to a nominee of the member.

  • F11Pension death benefit rule 3B

    No payment of pension death benefit, other than F15a successors' annuity in respect of a money purchase arrangement or successors' drawdown pension in respect of a money purchase arrangement, may be made to a successor of the member.

  • F6Pension death benefit rule 4

    The total amount of dependants’ drawdown pension paid to a dependant in each drawdown pension year F9from, or under a dependants' short-term annuity purchased using sums or assets out of, the dependant's drawdown pension fund in respect of a money purchase arrangement must not exceed F8150% of the basis amount for the drawdown pension year.

    But this limit does not apply in relation to an arrangement to which subsection (2A) applies.

  • F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F121A

For the purposes of this Part, a person becomes entitled to dependants' income withdrawal, nominees' income withdrawal or successors' income withdrawal under a registered pension scheme whenever sums or assets held for the purposes of an arrangement under the pension scheme are designated as available for the payment of (as the case may be) dependants' drawdown pension, nominees' drawdown pension or successors' drawdown pension.

2

F1In this part “pension death benefit” means a pension payable on the death of the member (other than a member’s pension payable after the member’s death under pension rule 2: see section 165)F13, or a pension payable in respect of the member on the subsequent death of a dependant, nominee or successor of the member.

F22A

This subsection applies to an arrangement if—

a

the dependant meets the flexible drawdown conditions,

b

the dependant makes a valid declaration to the scheme administrator to that effect, and

c

the declaration is accepted by the scheme administrator.

2B

The dependant meets the flexible drawdown conditions if—

a

the dependant satisfied the minimum income requirement on the relevant day,

b

no relevant contributions are paid under any money purchase arrangement (other than a cash balance arrangement) relating to the dependant under a registered pension scheme in the tax year in which the declaration is made, and

c

at the time of the declaration the dependant is not an active member of any registered pension scheme under which there is a defined benefits or cash balance arrangement relating to the dependant.

3

Part 2 of Schedule 28 gives the meaning of expressions used in the pension death benefit rules.