The Personal Pension Schemes (Transfer Payments) (Amendment) Regulations 1989

Amendments to the Principal Regulations

8.  In regulation 6 of the Principal Regulations–

(a) in paragraph (1)(b) for the words “a statutory scheme” there shall be substituted “a relevant statutory scheme”;

(b) in paragraph (2)(b) for “£100,000” there shall be substituted “£60,000”;

(c) in paragraph (3)(a)–

(i) after the words “the proposed transfer payment” there shall be inserted “, and all other transfer payments proposed to be made at the same time from the paying scheme, together with the cash equivalent of the benefits under all relevant schemes not reflected in the proposed transfer payment or payments,”;

(ii) for the words “does not exceed” there shall be substituted “do not exceed”;

(iii) for the words “reflected in the transfer payment” to “based on” there shall be substituted–

“and all other relevant schemes being the product of”;

(iv) for the definition of NS there shall be substituted–

“NS is–

(i)

the number of years of potential service to normal retirement age under the rules of the paying scheme, and

(ii)

where a transfer payment has been accepted by the paying scheme from a retirement benefits scheme or statutory scheme, the number of actual years service in respect of which benefits have accrued to the member under the retirement benefits scheme or statutory scheme,

up to a maximum of 40”;

(v) in the definition of P after the words “number of potential” there shall be inserted “and actual” and in paragraph (i) of that definition for the words “the end of his actual service” there shall be substituted “the time when benefits started to accrue to him under the scheme, or under any scheme from which a transfer payment has been accepted,”;

(d) in paragraph (3)(b) after “the proposed transfer payment” there shall be inserted “, together with any other transfer payment proposed to be made at the same time,”;

(e) after paragraph (3) there shall be inserted–

“(3A) For the purposes of paragraph (3) a scheme is a relevant scheme if it is–

(a) a retirement benefits scheme to which an employer of the individual makes or has made contributions;

(b) a relevant statutory scheme; or

(c) a scheme referred to in section 591(2)(h) of the Act to which the individual has made contributions.”