2018 No. 372
The Relevant Overseas Schemes (Transfer of Sums and Assets) Regulations 2018
Made
Laid before the House of Commons
Coming into force
Citation and commencement1
These Regulations may be cited as the Relevant Overseas Schemes (Transfer of Sums and Assets) Regulations 2018 and come into force on 6th April 2018.
Interpretation2
In these Regulations “Part”, “section” or “Schedule”, without more, means a Part, section or Schedule of the Finance Act 2004.
Relevant overseas transfer3
1
Paragraph 2 applies where there is a transfer within section 169(7B) (relevant overseas transfer) of sums or assets which, if the relevant overseas scheme were a registered pension scheme, would represent—
a
rights in respect of a scheme pension to which a member of that relevant overseas pension scheme3 has become entitled (“the original pension”) and those sums and assets are, after the transfer, applied towards the provision of a scheme pension (“the new pension”), or
b
a member’s flexi-access drawdown fund (“the original pension”) or a member’s drawdown pension fund (“the original pension”) under that relevant overseas scheme, which, after the transfer, is designated as available for payment of a drawdown pension (“the new pension”) or applied towards the provision of a scheme pension (“the new pension”).
2
The new pension is to be treated as if it were the original pension for the purposes of Part 4 prescribed in the table.
Provision | Purpose |
---|---|
Paragraph 2A(3) and (5) of Schedule 284 (unauthorised payments) | To determine—
|
Paragraph 8 of Schedule 285 (member’s drawdown pension fund) | To determine whether the member’s funds are newly designated funds to prevent the funds becoming newly designated funds as a result of the transfer. |
Paragraph 1(1) and (3)(a) of Schedule 296 (pension commencement lump sum) | To determine whether the member has become entitled to a lump sum in connection with the member becoming entitled to the new pension by reference to the original pension (to prevent a lump sum to which a member becomes entitled in connection with becoming entitled to the new pension being a pension commencement lump sum). |
Paragraph 14(3) of Schedule 297 (pension protection lump sum death benefit) | To determine—
|
Paragraph 16(3) of Schedule 298 (annuity protection lump sum death benefit) | To determine—
|
Term and reduction in the rate of new pension4
1
In the case of a new pension treated as the original pension by virtue of regulation 3(2) a reduction of that pension is a prescribed circumstance for the purposes of paragraph 2(4) of Schedule 289 (scheme pension) if—
a
the rate of the pension payable under the new pension on the day on which the member becomes entitled to it is not less than the rate payable under the original pension immediately before the original pension ceased to be payable, save to the extent that any reduction reflects reasonable administration costs of the transfer of sums or assets, and
b
where the new pension is payable until the later of the member’s death and the end of a term certain, that term ends before the date on which the term certain under the original pension would have ended.
2
In paragraph (1)(a) “administration costs” includes the payment of wages, salaries or fees to persons engaged in administering the pension scheme.
(This note is not part of the Regulations)