Finance (No. 2) Act 2010

Pension rules applying at age 77 instead of age 75 U.K.

2 (1) The provisions of FA 2004 listed in sub-paragraph (2) have effect in relation to a person to whom this Schedule applies as if—

(a) any reference in those provisions to the age of 75 were a reference to the age of 77, and

(b) any reference in those provisions to a person's 75th birthday were a reference to a person's 77th birthday.

(2) The provisions are—

(a) in section 165 (pension rules), pension rules 4 and 6;

(b) in Part 1 of Schedule 28 (pension rules)—

(i) paragraph 7 (meaning of “income withdrawal”);

(ii) paragraph 9(2) (unsecured pension year);

(iii) paragraph 11(2) to (4) (member's alternatively secured pension fund);

(c) in section 167 (pension death benefit rules), pension death benefit rules 3 and 5;

(d) in Part 2 of Schedule 28 (pension death benefit rules)—

(i) paragraph 21 (meaning of “dependants' income withdrawal”);

(ii) paragraph 23(2) (unsecured pension year);

(iii) paragraph 25 (dependant's alternatively secured pension fund);

(e) paragraph 17 of Schedule 29 (unsecured pension fund lump sum death benefit).

3 (1) In paragraphs 6 and 20 of Schedule 28 to FA 2004 (short-term annuities), sub-paragraph (1) has effect in relation to an annuity to which this paragraph applies as if the reference in paragraph (d) of that sub-paragraph to the age of 75 were a reference to the age of 77.

(2) This paragraph applies to an annuity that—

(a) is purchased on or after 22 June 2010, and

(b) is payable to a person to whom this Schedule applies.

4 Sub-paragraphs (6) and (7) of paragraph 11 of Schedule 28 to FA 2004 (cases where member's whereabouts are unknown at age 75) have effect in relation to a person to whom this Schedule applies as if—

(a) any reference in sub-paragraphs (6)(a) and (7) to the age of 75 were a reference to the age of 77, and

(b) for paragraph (b) of sub-paragraph (6) there were substituted—

“(b) paragraph 8(2) applied in relation to the member and the arrangement at the time when the member reached the age of 75 and none of the sums or assets held for the purposes of the arrangement were member-designated funds immediately before it applied.”