PART 1Collective money purchase benefits

Definitions

5Schemes divided into sections

(1)

The Secretary of State may by regulations make provision about when a pension scheme is or is not divided into sections for the purposes of this Part.

(2)

The Secretary of State may by regulations provide that, where a collective money purchase scheme that is not divided into sections (an “undivided scheme”) becomes a collective money purchase scheme that is divided into sections, an authorisation previously granted in respect of the undivided scheme applies to any of those sections that—

(a)

is a collective money purchase scheme by reason of section 1(2)(b), and

(b)

satisfies conditions specified in the regulations.

(3)

For the purposes of this Part, where—

(a)

a qualifying scheme is divided into sections, and

(b)

each of those sections is a collective money purchase scheme by reason of section 1(2)(b),

the qualifying scheme (taken as a whole) is to be treated as if it were not a collective money purchase scheme.

(4)

Regulations under subsection (1) are subject to negative resolution procedure.

(5)

Regulations under subsection (2) are subject to affirmative resolution procedure.