9(1)Section 232 (cash balance arrangements: adjustments of closing value) is amended as follows.U.K.
(2)In subsection (2), for “the debit” substitute “ the reduction ”.
(3)In subsection (3), for “the credit” substitute “ the increase ”.
(4)In subsection (4)—
(a)for “Subsection (5) applies if” substitute “ If ”,
(b)for “virtue of a transfer of any sum or asset” substitute “ reason of a transfer relating to the individual of any sums or assets ”,
(c)omit “other”, and
(d)insert at the end (not as part of paragraph (b)) “ the amount of the reduction is to be added. ”
(5)Omit subsection (5).
(6)In subsection (6)—
(a)for “Subsection (7) applies if” substitute “ If ”,
(b)for “virtue of a transfer” substitute “ reason of a transfer relating to the individual ”, and
(c)insert at the end “ , the amount of the increase is to be subtracted. ”
(7)Omit subsection (7).
(8)For subsection (8) substitute—
“(8)If, during the pension input period, the rights of the individual under the arrangement have been reduced by any surrender made, or similar action taken, pursuant to an option available to the individual under the arrangement, the amount of the reduction is to be added.
(8A)If, during the pension input period—
(a)benefit crystallisation event 1, 2 or 4 occurs in relation to the individual and the arrangement,
(b)benefit crystallisation event 3 occurs in relation to the individual and the arrangement otherwise than by reason of a provision contained in, or made under, any enactment,
(c)benefit crystallisation event 6 occurs or, but for paragraph 15A of Schedule 32, would occur in relation to the individual and the arrangement by virtue of the individual becoming entitled to a pension commencement lump sum or a lifetime allowance excess lump sum, or
(d)there is an allocation of rights of the individual under the arrangement (not falling within paragraph (a)),
the relevant amount is to be added.
(8B)In subsection (8A) “the relevant amount” is—
(a)in the case of benefit crystallisation event 2, what the annual rate of the pension would be on the valuation assumptions,
(b)in the case of benefit crystallisation event 3, the increase in the annual rate of the pension,
(c)in the case of benefit crystallisation event 6, the amount of the lump sum, and
(d)in any other case, the amount of the reduction in the amount of the rights available for the provision of benefits to or in respect of the individual occurring by reason of the benefit crystallisation event or allocation.
(8C)If, during the pension input period, an adjustment to the individual's rights under the arrangement is made in consequence of the scheme administrator satisfying a liability under section 237B in respect of the individual, if and to the extent that the adjustment is reflected in the closing amount the amount of the adjustment is to be added to the closing amount.
(8D)But no amount is to be added under subsection (8C) by reason of an adjustment made in consequence of the scheme administrator satisfying a liability under section 237B in a case where subsection (6) of that section applied.”
(9)Omit subsection (9).