 | |
| Salary related schemes: statements of entitlement. |
101H. - (1) The trustees or managers of a qualifying scheme which is a salary related occupational pension scheme shall, on the application of an eligible member, provide him with a written statement of the amount of the cash equivalent of his pension credit benefit under the scheme.
|
| |
(2) For the purposes of subsection (1), the amount of the cash equivalent shall be determined by reference to a date falling within-
|
| |
(a) the prescribed period beginning with the date of the application, and |
| |
(b) the prescribed period ending with the date on which the statement under that subsection is provided to the applicant. |
| |
(3) Regulations may make provision in relation to applications under subsection (1) and may, in particular, restrict the making of successive applications.
|
| |
(4) If trustees or managers to whom subsection (1) applies fail to perform an obligation under that subsection, section 10 of the Pensions Act 1995 (power of the Regulatory Authority to impose civil penalties) shall apply to any trustee or manager who has failed to take all such steps as are reasonable to secure that the obligation was performed.
|
| Calculation of cash equivalents. |
101I. Cash equivalents for the purposes of this Chapter shall be calculated and verified in the prescribed manner.
|
| Time for compliance with transfer notice. |
101J. - (1) Trustees or managers of a qualifying scheme who receive a transfer notice shall comply with the notice-
|
| |
(a) in the case of an occupational pension scheme, within 6 months of the valuation date or, if earlier, by the date on which the member to whom the notice relates reaches normal benefit age, and |
| |
(b) in the case of a personal pension scheme, within 6 months of the date on which they receive the notice. |
| |
(2) The Regulatory Authority may, in prescribed circumstances, extend the period for complying with the notice.
|
| |
(3) If the Regulatory Authority are satisfied-
|
| |
(a) that there has been a relevant change of circumstances since they granted an extension under subsection (2), or |
| |
(b) that they granted an extension under that subsection in ignorance of a material fact or on the basis of a mistake as to a material fact, |
| |
they may revoke or reduce the extension.
|
| |
(4) Where the trustees or managers of an occupational pension scheme have failed to comply with a transfer notice before the end of the period for compliance-
|
| |
(a) they shall, except in prescribed cases, notify the Regulatory Authority of that fact within the prescribed period, and |
| |
(b) section 10 of the Pensions Act 1995 (power of the Regulatory Authority to impose civil penalties) shall apply to any trustee or manager who has failed to take all such steps as are reasonable to ensure that the notice was complied with before the end of the period for compliance. |
| |
(5) If trustees or managers to whom subsection (4)(a) applies fail to perform the obligation imposed by that provision, section 10 of the Pensions Act 1995 shall apply to any trustee or manager who has failed to take all such steps as are reasonable to ensure that the obligation was performed.
|
| |
(6) Regulations may-
|
| |
(a) make provision in relation to applications under subsection (2), and |
| |
(b) provide that subsection (4) shall not apply in prescribed circumstances. |
| |
(7) In this section, "valuation date", in relation to a transfer notice given to the trustees or managers of an occupational pension scheme, means-
|
| |
(a) in the case of a salary related scheme, the date by reference to which the amount shown in the relevant statement under section 101H is determined, and |
| |
(b) in the case of any other scheme, the date the notice is given. |
| Withdrawal of transfer notice. |
101K. - (1) Subject to subsections (2) and (3), a person who has given a transfer notice may withdraw it by giving the trustees or managers to whom it was given notice in writing that he no longer requires them to comply with it.
|
| |
(2) A transfer notice may not be withdrawn if the trustees or managers have already entered into an agreement with a third party to use the whole or part of the amount they are required to use in accordance with the notice.
|
| |
(3) If the giving of a transfer notice depended on the making of an application under section 95, the notice may only be withdrawn if the application is also withdrawn.
|
| Variation of the amount required to be used. |
101L. - (1) Regulations may make provision for the amount required to be used under section 101F(1) to be increased or reduced in prescribed circumstances.
|
| |
(2) Without prejudice to the generality of subsection (1), the circumstances which may be prescribed include-
|
| |
(a) failure by the trustees or managers of a qualifying scheme to comply with a notice under section 101F(1) within 6 months of the date by reference to which the amount of the cash equivalent falls to be determined, and |
| |
(b) the state of funding of a qualifying scheme. |
| |
(3) Regulations under subsection (1) may have the effect of extinguishing an obligation under section 101F(1).
|
| Effect of transfer on trustees' duties. |
101M. Compliance with a transfer notice shall have effect to discharge the trustees or managers of a qualifying scheme from any obligation to provide the pension credit benefit of the eligible member who gave the notice.
|
| Matters to be disregarded in calculations. |
101N. In making any calculation for the purposes of this Chapter-
|
| |
(a) any charge or lien on, and |
| |
|
| |
the whole or part of a pension shall be disregarded.
|
| Service of notices. |
101O. A notice under section 101F(1) or 101K(1) shall be taken to have been given if it is delivered to the trustees or managers personally or sent by post in a registered letter or by recorded delivery service.
|
| Interpretation of Chapter II. |
101P. - (1) In this Chapter-
|
| |
"eligible member", in relation to a qualifying scheme, means a member who has pension credit rights under the scheme; |
| |
"normal benefit age", in relation to an eligible member of a qualifying scheme, means the earliest age at which the member is entitled to receive a pension by virtue of his pension credit rights under the scheme (disregarding any scheme rule making special provision as to early payment of pension on grounds of ill-health or otherwise); |
| |
"pension credit benefit", in relation to an eligible member of a qualifying scheme, means the benefits payable under the scheme to or in respect of the member by virtue of rights under the scheme attributable (directly or indirectly) to a pension credit; |
| |
"pension credit rights", in relation to a qualifying scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit; |
| |
"qualifying scheme" means a funded occupational pension scheme and a personal pension scheme; |
| |
"Regulatory Authority" means the Occupational Pensions Regulatory Authority; |
| |
"transfer notice" has the meaning given by section 101F(7). |
| |
(2) For the purposes of this Chapter, an occupational pension scheme is salary related if-
|
| |
(a) it is not a money purchase scheme, and |
| |
(b) it does not fall within a prescribed class. |
| |
(3) In this Chapter, references to the relevant statement under section 101H, in relation to a transfer notice given to the trustees or managers of a salary related occupational pension scheme, are to the statement under that section on which the giving of the notice depended.
|
| |
(4) For the purposes of this section, an occupational pension scheme is funded if it meets its liabilities out of a fund accumulated for the purpose during the life of the scheme.
|
| Power to modify Chapter II in relation to hybrid schemes. |
101Q. Regulations may apply this Chapter with prescribed modifications to occupational pension schemes-
|
| |
(a) which are not money purchase schemes, but |
| |
(b) where some of the benefits that may be provided are money purchase benefits." |
| Treatment in winding up. |
35. - (1) In section 73 of the Pensions Act 1995 (treatment of rights on winding up of an occupational pension scheme to which section 56 of that Act (minimum funding requirement) applies), in subsection (3) (classification of liabilities), in paragraph (c) (accrued rights), at the end of sub-paragraph (i) there shall be inserted-
|
| |
 |
"(ia) future pensions, or other future benefits, attributable (directly or indirectly) to pension credits (but excluding increases to pensions),".
|
|
| |
(2) In the case of an occupational pension scheme which is not a scheme to which section 56 of the Pensions Act 1995 applies, rights attributable (directly or indirectly) to a pension credit are to be accorded in a winding up the same treatment-
|
| |
(a) if they have come into payment, as the rights of a pensioner member, and |
| |
(b) if they have not come into payment, as the rights of a deferred member. |
| |
(3) Subsection (2) overrides the provisions of a scheme to the extent that it conflicts with them, and the scheme has effect with such modifications as may be required in consequence.
|
| |
(4) In subsection (2)-
|
| |
(a) "deferred member" and "pensioner member" have the same meanings as in Part I of the Pensions Act 1995, |
| |
(b) "pension credit" includes a credit under Northern Ireland legislation corresponding to section 26(1)(b), and |
| |
(c) references to rights attributable to a pension credit having come into payment are to the person to whom the rights belong having become entitled by virtue of the rights to the present payment of pension or other benefits. |
