|
| |
|
(a) | rights under a non-group life policy (see subsection (2)) are |
| |
(or later become) held for the purposes of the pension |
| |
| |
(b) | the contributions are treated by this section as paid in respect |
| |
of premiums under the non-group life policy (see subsections |
| 5 |
| |
(2) | For the purposes of this section a “non-group life policy” is a policy |
| |
of insurance under which the only benefits which may become |
| |
payable are benefits payable in consequence, or in anticipation, of— |
| |
(a) | the death of the individual or one of a group of individuals |
| 10 |
which includes the individual, or |
| |
(b) | the deaths of more than one of a group of individuals— |
| |
(i) | which includes the individual, and |
| |
(ii) | the other members of which are connected with the |
| |
| 15 |
(3) | Contributions paid by or on behalf of the individual under the |
| |
pension scheme are treated as paid in respect of premiums under the |
| |
non-group life policy if— |
| |
(a) | the payment of the contributions constitutes the payment of |
| |
premiums under the policy, or |
| 20 |
(b) | the person by whom the contributions are paid intends the |
| |
contributions (or an amount equivalent to them) to be |
| |
applied towards paying premiums under the policy. |
| |
(4) | Where the amount of the premiums under the policy in a tax year |
| |
exceeds the amount of any contributions treated as paid in respect of |
| 25 |
the premiums by subsection (3), other contributions paid by or on |
| |
behalf of the individual under the pension scheme in the tax year are |
| |
treated as paid in respect of premiums under the policy to the extent |
| |
that their amount does not exceed the difference between the amount |
| |
of the premiums and the amount of any contributions treated as paid |
| 30 |
in respect of the premiums by subsection (3). |
| |
| |
(a) | the benefits under the policy relate to the death of one or |
| |
more of a group of individuals, and |
| |
(b) | contributions are also paid under the pension scheme in the |
| 35 |
tax year by or on behalf of another member or other members |
| |
| |
| the amount of the contributions paid by or on behalf of the |
| |
individual which are treated as paid in respect of premiums under |
| |
the policy by subsection (4) does not exceed what is just and |
| 40 |
reasonable having regard to the operation of section 188(3)(aa) in |
| |
relation to the contributions paid by or on behalf of another member |
| |
or other members of the group. |
| |
(6) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations amend subsections (2) to (5). |
| 45 |
(7) | Regulations under subsection (6) which limit— |
| |
(a) | the policies of insurance which are non-group life assurance |
| |
policies for the purposes of this section, or |
| |
|
| |
|
| |
|
(b) | the contributions which are treated by this section as paid in |
| |
respect of premiums under such policies, |
| |
| may be made so as to have effect in relation to times before they are |
| |
| |
(8) | For the purposes of this section an individual (“A”) is connected with |
| 5 |
another individual (“B”) if— |
| |
(a) | A is B’s spouse or civil partner, |
| |
(b) | A is a relative of B, |
| |
(c) | A is the spouse or civil partner of a relative of B, |
| |
(d) | A is a relative of B’s spouse or civil partner, or |
| 10 |
(e) | A is the spouse or civil partner of a relative of B’s spouse or |
| |
| |
| and for the purposes of this subsection “relative” means brother, |
| |
sister, ancestor or lineal descendant.” |
| |
Commencement: schemes other than occupational pension schemes |
| 15 |
4 (1) | In relation to contributions under any pension scheme that is not an |
| |
occupational pension scheme, the amendments made by this Schedule have |
| |
effect in relation to contributions paid on or after 6th April 2007. |
| |
(2) | But they do not have effect in relation to such contributions paid at any time |
| |
if the contributions are treated as paid in respect of premiums under a policy |
| 20 |
of insurance which at that time is a protected policy (see paragraph 5). |
| |
5 (1) | This paragraph specifies when a policy of insurance is a protected policy in |
| |
a case where the rights under it are held for the purposes of a pension |
| |
scheme that is not an occupational pension scheme. |
| |
(2) | A policy of insurance within sub-paragraph (3) or (4) is a protected policy |
| 25 |
but only until a relevant event occurs (see sub-paragraphs (5) and (6)). |
| |
(3) | A policy of insurance is within this sub-paragraph if— |
| |
(a) | it is issued in respect of insurances made before 6th December 2006, |
| |
(b) | the pension scheme became a registered pension scheme before that |
| |
| 30 |
(c) | rights under the policy became held for the purposes of the pension |
| |
| |
(4) | A policy of insurance is within this sub-paragraph if— |
| |
(a) | it is issued in respect of insurances made before 6th April 2007, |
| |
(b) | the pension scheme became a registered pension scheme before that |
| 35 |
| |
(c) | rights under the policy became held for the purposes of the pension |
| |
| |
(d) | the policy was issued in pursuance of a proposal made in writing (by |
| |
whatever means) and received by or on behalf of the insurer on or |
| 40 |
before 13th December 2006, |
| |
(e) | the amount of the benefits payable under the policy (at the latest of |
| |
the time when the insurances were made, the pension scheme was |
| |
registered or rights under the policy became held for the purposes of |
| |
the pension scheme) is no more than the amount applied for in the |
| 45 |
| |
|
| |
|
| |
|
(f) | the period for which benefits are so payable (at the latest of those |
| |
times) is no longer than the period specified in the proposal, and |
| |
(g) | the policy is not a protected policy by virtue of sub-paragraph (3). |
| |
(5) | For the purposes of sub-paragraph (2) a “relevant event” occurs if, after the |
| |
relevant time, the terms of the policy are varied so as to— |
| 5 |
(a) | increase the benefits payable under the policy, or |
| |
(b) | extend the period during which benefits are so payable. |
| |
| |
(a) | in the case of a policy of insurance within sub-paragraph (3) which is |
| |
issued in respect of insurances made before 6th April 2006, is 20th |
| 10 |
| |
(b) | in the case of any other policy of insurance within sub-paragraph (3), |
| |
is 5th December 2006, and |
| |
(c) | in the case of a policy of insurance within sub-paragraph (4), is the |
| |
time when it became a protected policy. |
| 15 |
Commencement: occupational pension schemes |
| |
6 (1) | In relation to contributions under any occupational pension scheme, the |
| |
amendments made by this Schedule have effect in relation to contributions |
| |
paid on or after 1st August 2007. |
| |
(2) | But they do not have effect in relation to such contributions paid at any time |
| 20 |
if the contributions are treated as paid in respect of premiums under a policy |
| |
of insurance which at that time is a protected policy (see paragraph 7). |
| |
7 (1) | This paragraph specifies when a policy of insurance is a protected policy in |
| |
a case where the rights under it are held for the purposes of an occupational |
| |
| 25 |
(2) | A policy of insurance within sub-paragraph (3) or (4) is a protected policy |
| |
but only until a relevant event occurs (see sub-paragraphs (5) to (7)). |
| |
(3) | A policy of insurance is within this sub-paragraph if— |
| |
(a) | it is issued in respect of insurances made before 21st March 2007, |
| |
(b) | the pension scheme became a registered pension scheme before that |
| 30 |
| |
(c) | rights under the policy became held for the purposes of the pension |
| |
| |
(4) | A policy of insurance is within this sub-paragraph if— |
| |
(a) | it is issued in respect of insurances made before 1st August 2007, |
| 35 |
(b) | the pension scheme became a registered pension scheme before that |
| |
| |
(c) | rights under the policy became held for the purposes of the pension |
| |
| |
(d) | the policy was issued in pursuance of a proposal made in writing (by |
| 40 |
whatever means) and received by or on behalf of the insurer before |
| |
| |
(e) | the amount of the benefits payable under the policy (at the latest of |
| |
the time when the insurances were made, the pension scheme was |
| |
registered or rights under the policy became held for the purposes of |
| 45 |
|
| |
|
| |
|
the pension scheme) is no more than the amount applied for in the |
| |
| |
(f) | the period for which benefits are so payable (at the latest of those |
| |
times) is no longer than the period specified in the proposal, and |
| |
(g) | the policy is not a protected policy by virtue of sub-paragraph (3). |
| 5 |
(5) | For the purposes of sub-paragraph (2) a “relevant event” occurs if, after the |
| |
relevant time, the terms of the policy are varied so as to— |
| |
(a) | increase the benefits payable under the policy, or |
| |
(b) | extend the period during which benefits are so payable. |
| |
| 10 |
(a) | in the case of a policy of insurance within sub-paragraph (3), is 20th |
| |
| |
(b) | in the case of a policy of insurance within sub-paragraph (4), is the |
| |
time when it became a protected policy. |
| |
(7) | A variation of the terms of a policy made in order to comply with the |
| 15 |
Employment Equality (Age) Regulations 2006 (S.I. 2006/1031) or |
| |
Employment Equality (Age) Regulations (Northern Ireland) 2006 (S.R. |
| |
2006/261) (or any regulations amending or replacing them) is to be ignored |
| |
for the purposes of sub-paragraph (5). |
| |
Power to amend commencement provisions |
| 20 |
8 (1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations amend paragraphs 4 to 7. |
| |
(2) | Regulations under sub-paragraph (1) having the effect of limiting the |
| |
contributions which are life assurance premium contributions may be made |
| |
so as to have effect in relation to times before they are made. |
| 25 |
| |
| |
Alternatively secured pensions and transfer lump sum death benefit etc |
| |
| |
1 | Part 4 of FA 2004 (pension schemes etc) is amended as follows. |
| |
Alternatively secured pension: guaranteed pension and maximum |
| 30 |
2 (1) | In section 165(1) (pension rules) is amended as follows. |
| |
(2) | In pension rule 2 (guaranteed pensions)— |
| |
(a) | for “, an annuity or alternatively secured pension” substitute “or an |
| |
| |
(b) | for “, annuity or alternatively secured pension” substitute “or |
| 35 |
| |
(3) | In pension rule 7 (maximum alternatively secured pension), for “70%” |
| |
| |
|
| |
|
| |
|
3 | In paragraph 12 of Schedule 28 (pension rules: alternatively secured pension |
| |
year), omit sub-paragraphs (3) and (4) (guaranteed pensions). |
| |
Maximum dependants’ alternatively secured pension |
| |
4 | In section 167(1) (pension death benefit rules), in pension death benefit rule |
| |
6 (maximum dependants’ alternatively secured pension), for “70%” |
| 5 |
| |
Abolition of transfer lump sum death benefit |
| |
5 | In section 168(1) (lump sum death benefit rule), omit paragraph (g) (transfer |
| |
| |
6 | Omit section 172B(5)(a) (reduction for transfer lump sum death benefit). |
| 10 |
7 | In section 188(5) (amounts not to be treated as contributions), omit |
| |
paragraph (b) and the word “and” before it. |
| |
8 | In section 280(2) (index), omit the entry relating to transfer lump sum death |
| |
| |
9 | In Schedule 29, omit paragraph 19 (transfer lump sum death benefit). |
| 15 |
10 | In paragraph 17A of Schedule 36 (“enhanced protection”)— |
| |
(a) | in sub-paragraph (1), insert “or” after paragraph (a) and omit |
| |
paragraph (c) and the word “or” before it, and |
| |
(b) | in sub-paragraph (2), omit “, or to a transfer lump sum death benefit |
| |
| 20 |
| |
11 | In paragraph 11 of Schedule 28 (member’s alternatively secured pension |
| |
fund), insert at the end— |
| |
“(6) | Sub-paragraph (7) applies if— |
| |
(a) | at the time when the member reaches the age of 75, the |
| 25 |
scheme administrator has been unable to ascertain the |
| |
member’s whereabouts after having taken all reasonable |
| |
| |
(b) | paragraph 8(2) applies in relation to the member and the |
| |
arrangement and none of the sums or assets held for the |
| 30 |
purposes of the arrangement are member-designated |
| |
funds immediately before it applies. |
| |
(7) | In that case the references in sub-paragraphs (2) and (3) to the time |
| |
when the member reached the age of 75 are to be read as referring |
| |
to the end of the period of six months beginning with any later |
| 35 |
date on which the member’s whereabouts are subsequently |
| |
ascertained by the scheme administrator.” |
| |
Increase in rights on death |
| |
12 (1) | Section 172B (increase in rights of connected person on death) is amended as |
| |
| 40 |
|
| |
|
| |
|
(2) | In subsection (2)(b), for “, alternatively secured pension fund, dependant’s |
| |
unsecured pension fund or dependant’s alternatively secured” substitute |
| |
“or dependant’s unsecured”. |
| |
(3) | In subsection (4), for “(6)” substitute “(5)”. |
| |
(4) | In subsection (7)(a), after “there” insert “are”. |
| 5 |
(5) | After subsection (8) insert— |
| |
“(8A) | Nothing in this section applies in relation to the rights representing |
| |
the member’s unsecured pension fund if those rights would |
| |
represent the member’s alternatively secured pension fund but for |
| |
paragraph 11(6) and (7) of Schedule 28.” |
| 10 |
13 | After that section insert— |
| |
“172BA | Increase in rights on death arising from alternatively secured |
| |
| |
(1) | This section applies if, at any time (“the relevant time”) after the |
| |
death of a member of a registered pension scheme, another member |
| 15 |
of the pension scheme becomes entitled to alternatively secured |
| |
| |
(2) | “Alternatively secured rights” are rights representing the whole or |
| |
part of the dead member’s alternatively secured pension fund, or |
| |
dependant’s alternatively secured pension fund, in respect of an |
| 20 |
arrangement under the pension scheme. |
| |
(3) | The pension scheme is to be treated as making an unauthorised |
| |
payment to the other member (or to the other member’s personal |
| |
| |
(4) | Subject to subsection (5), the amount of the unauthorised payment is |
| 25 |
| |
(a) | the consideration which might be expected to be received in |
| |
respect of an assignment (or assignation) of the benefits to |
| |
which the other member is actually or prospectively entitled |
| |
under the pension scheme immediately after the relevant |
| 30 |
| |
(b) | the consideration which might be expected to be received in |
| |
respect of such an assignment (or assignation) immediately |
| |
before the relevant time. |
| |
(5) | But that amount is to be reduced by so much (if any) of the excess as |
| 35 |
arises from the other member becoming entitled to pension death |
| |
benefits or lump sum death benefits in respect of the dead member. |
| |
(6) | This section does not apply if the other member’s entitlement to the |
| |
alternatively secured rights is brought about by an assignment (or |
| |
agreement to assign) within section 172. |
| 40 |
(7) | Rights representing the member’s unsecured pension fund are |
| |
alternatively secured rights for the purposes of this section if they |
| |
would be rights representing the member’s alternatively secured |
| |
pension fund but for paragraph 11(6) and (7) of Schedule 28.” |
| |
|
| |
|
| |
|
Minimum alternatively secured pension and dependants’ alternatively secured pension |
| |
14 | After section 181 insert— |
| |
“Alternatively secured pensions |
| |
“181A | Minimum level of payment |
| |
(1) | The total amount of alternatively secured pension paid to a member |
| 5 |
of a registered pension scheme in each alternatively secured pension |
| |
year in respect of a money purchase arrangement under the pension |
| |
scheme must be at least 55% of the basis amount for the alternatively |
| |
secured pension year (but subject to subsection (5)). |
| |
(2) | The total amount of dependants’ alternatively secured pension paid |
| 10 |
to a dependant of a member of a registered pension scheme in each |
| |
alternatively secured pension year in respect of a money purchase |
| |
arrangement under the pension scheme must be at least 55% of the |
| |
basis amount for the alternatively secured pension year (but subject |
| |
| 15 |
(3) | If subsection (1) or (2) is not complied with in an alternatively |
| |
secured pension year in the case of any arrangement under a |
| |
registered pension scheme, the pension scheme is to be treated as |
| |
having made a scheme chargeable payment when the alternatively |
| |
secured pension year ends. |
| 20 |
(4) | The amount of the scheme chargeable payment is the difference |
| |
| |
(a) | the total amount of alternatively secured pension paid to the |
| |
member, or of the dependants’ alternatively secured pension |
| |
paid to the dependant, in respect of the arrangement in the |
| 25 |
alternatively secured pension year, and |
| |
(b) | 55% of the basis amount for the alternatively secured pension |
| |
| |
| (or, if nothing is so paid, 55% of the basis amount for the alternatively |
| |
| 30 |
(5) | Subsection (1) or (2) does not apply in relation to an alternatively |
| |
| |
(a) | it is the alternatively secured pension year ending |
| |
immediately before the death of the member or dependant, |
| |
| 35 |
(b) | in the alternatively secured pension year the member’s |
| |
alternatively secured pension fund, or the dependant’s |
| |
alternatively secured pension fund, in respect of the |
| |
arrangement is applied on pension or annuity provision (see |
| |
| 40 |
(6) | The member’s alternatively secured pension fund, or the |
| |
dependant’s alternatively secured pension fund, in respect of the |
| |
arrangement is applied on pension or annuity provision if all of the |
| |
sums and assets representing it are applied in one or more of the |
| |
| 45 |
(a) | towards the provision of a scheme pension or dependants’ |
| |
| |
|
| |
|