Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996
2.—(1) The Occupational Pension Schemes (Contracting-out) Regulations 1996(1) shall be amended as follows.
(2) In regulation 60(2) (payment of a guaranteed minimum pension as a lump sum)—
(a)in paragraph (1)(b) in head (i)(aa), for “of that Part” substitute “of Part 1 of Schedule 29 to that Act”;
(b)after paragraph (2) add—
“(3) Subject to paragraph (4), for the purposes of section 21(1) of the 1993 Act further circumstances are where the payment of a lump sum—
(a)is authorised under section 164 of the Finance Act 2004;
(b)is permitted by the lump sum rule in section 166 of that Act; and
(c)qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act.
(4) Where—
(a)under the scheme, an earner qualifies for a lump sum payment on the ground of serious ill-health; and
(b)the scheme also provides for the payment of a guaranteed minimum pension to the widow, widower or surviving civil partner of the earner (“a survivor’s pension”),
the scheme must continue to include provision for a survivor’s pension notwithstanding the payment of a lump sum to the earner.”.