Serious ill-health lump sums, pension protection lump sum death benefits and annuity protection lump sum death benefits33

1

In the case of an individual who meets the conditions set out in paragraph (2), paragraphs (3), (4) and (5) apply.

2

The conditions are as follows.

  • Condition A

    The individual is a member of a scheme which falls within sub-paragraphs 1(1)(a) to (g) of Schedule 36.

  • Condition B

    The individual has an actual (rather than a prospective) right to the payment of one or more relevant existing pensions under that scheme on 6th April 2006.

3

In paragraph 4(2) of Schedule 29 (serious ill-health lump sum) for the words “there has been no previous benefit crystallisation event” substitute—

the member has a prospective (rather than an actual) right to the payment of one or more relevant existing pensions.

4

In paragraph 14(3) of Schedule 29 (pension protection lump sum death benefit)—

a

for “AC is the amount crystallised by reason of the member becoming entitled to the pension (see section 216)” substitute—

AC is the value of the individual’s pre-commencement pension rights as defined in paragraph 20(3) to (5) of Schedule 36.

b

in the definition of “AP” for the words after “paid in respect of the period” substitute—

from the period from the 6th April 2006 and the date of the member’s death.

5

In paragraph 16(3) of Schedule 29 (annuity protection lump sum death benefit)—

a

for “AC is the amount crystallised by reason of the member becoming entitled to the pension or annuity” substitute—

  • AC is the value of the individual’s pre-commencement pension rights as defined in paragraph 20(3) to (5) of Schedule 36.

b

in the definition of “AP” for the words after “paid in respect of the period” substitute—

from the period from the 6th April 2006 and the date of the member’s death.