F1SCHEDULE 2PENSION SHARING ON DIVORCE OR NULLITY OF MARRIAGE OR, DISSOLUTION OR NULLITY OF CIVIL PARTNERSHIP
Discharge of liability in respect of a pension credit
1.
(1)
Where the Secretary of State discharges his liability in respect of a pension credit in accordance with sub-paragraph (2) of paragraph 1 of Schedule 5 to the 1999 Act (pension credits: mode of discharge: funded pension schemes—internal transfers) the appropriate rights shall be invested under paragraph 2 below to provide for the purchase from an F2insurer of an annuity which complies with the requirements of sub-paragraph (5) below.
(2)
Where sub-paragraph (1) applies, the person entitled to the pension credit may elect, by giving written notice to the Secretary of State, the authorised fund or funds in which the appropriate rights are to be invested.
(3)
The Secretary of State shall notify in writing the person who has made an election under sub-paragraph (2) of the Secretary of State’s acceptance of that election.
(4)
Where an election has been made under sub-paragraph (2) it shall not be varied or cancelled after liability in respect of the pension credit has been discharged by the Secretary of State.
(5)
An annuity complies with the requirements of this sub-paragraph if—
(a)
it provides a pension which commences not earlier than normal benefit age and is payable to the pension credit member for life;
F3(b)
any dependant’s pension which is payable under it is payable only on the death of the pension credit member after that member has reached normal benefit age and is payable to the dependant for life: this is subject to paragraph (6);
(c)
it is not capable in whole or in part of surrender, assignment or commutation.
F4(6)
In the case of a person who is a child to whom—
(a)
Part H of the 1995 Regulations (child allowance) applies;
(b)
regulation 2.E.9 or 3.E.9 of the 2008 Regulations applies (meaning of dependant child); or
(c)
regulation 122 of the 2015 Regulations (eligible child) applies,
a pension referred to in paragraph (5)(b) ceases to be payable when that person ceases to be a dependant child within the meaning of whichever of those Regulations applies.
(7)
Sub-paragraph (5) does not apply where, in accordance with sub-paragraph (5C) of paragraph 4, a pension credit member elects to be provided with alternative benefits referred to in sub-paragraph (5B) of that paragraph.