Indexation: treatment of payments made on or after 6th April 2005 from insurance policies or annuity contracts
11. After regulation 3 of the Indexation Regulations add—
Indexation of occupational pensions derived from the acceptance of payments from insurance policies and annuity contracts: transfers made on or after 6th April 2005
4.—(1) This regulation applies where—
(a)a person’s accrued rights to a pension payable under an occupational pension scheme (“scheme A”) to which section 51 of the Act applies, or any part of them, derive from the acceptance by the scheme of a payment from a policy of insurance or annuity contract in respect of rights in any pension scheme of which that person has previously been a member; and
(b)the payment was made on or after 6th April 2005.
(2) Subsections (2) and (3) of section 51 of the Act shall apply to such part of the pension payable by scheme A as is attributable to any accrued rights deriving from the acceptance of the payment from the policy of insurance or annuity contract—
(a)only to the extent that those accrued rights are—
(i)section 9(2B) rights; or
(ii)rights (other than section 9(2B) rights) which are allowed by reference to rights specified in paragraph (3) of this regulation; and
(b)as if those accrued rights were attributable to pensionable service on or after the appointed day.
(3) The rights specified in this paragraph are rights to payment under the policy of insurance or annuity contract which—
(a)were subject to provision contained in (or endorsed on) the policy or contract requiring an increase in the annual rate of payment; and
(b)in any case where the policy or contract was entered into before 6th April 2005, would have been subject to such provision if the policy or contract had been entered into on or after that date.”.