F5F3Part 4ZATransfers and contribution refunds

Annotations:
Amendments (Textual)
F5

Pt. 4ZA formed from Pt. 4 Chs. 4, 5 (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 4(1)

C1C15C9C6C4C14C5C8C13C11C12C10C7C16C17C18C19F4Chapter 1Transfer rights: general

Annotations:
Amendments (Textual)
Modifications etc. (not altering text)
C1

Pt. 4ZA Ch. 1 (originally Pt. IV Ch. IV) applied (31.5.1994) by The Railway Pensions (Protection and Designation of Schemes) Order 1994 (S.I. 1994/1432), arts. 1(1), 6(4)

C17

Pt. 4ZA Ch. 1: power to modify conferred (5.9.2018 for specified purposes, 1.10.2018 in so far as not already in force) by Pension Schemes Act 2017 (c. 17), s. 44(2), Sch. 1 para. 1(6)(a); S.I. 2018/965, reg. 2(a)(b)

C18

Pt. 4ZA Ch. 1: power to modify conferred (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 2 para. 1(6)(a); S.I. 2022/721, regs. 1(2), 3(a)

I1C2C397 Calculation of cash equivalents.

1

Cash equivalents are to be calculated and verified F6—

a

in the prescribed manner F7, and

b

where a designation has been made under section 97A or 97B, in accordance with regulations under section 97C.

F81A

Where a member applies under section 95 to take a cash equivalent that relates to money purchase benefits, the cash equivalent is to be calculated by reference to the date of the application.

2

Regulations may provide—

a

that in calculating cash equivalents F9that relate to money purchase benefits account shall be taken—

i

of any surrender, commutation or forfeiture of the whole or part of a member’s pension which occurs before the trustees or managers of the scheme of which he is a member do what is needed to comply with what he requires under section 95;

ii

in a case where subsection (2) of section 96 applies, of the need to deduct an appropriate amount to provide for the liabilities mentioned in subsection (3) of that section;

F2aa

for a cash equivalent F10that relates to any category of benefits to be reduced so as to take account of the extent (if any) to which an entitlement has arisen under the scheme to the present payment of the whole or any part of—

i

any pension; or

ii

any benefit in lieu of pension; and

b

that in prescribed circumstances a cash equivalent shall be increased or reduced.

3

Without prejudice to the generality of subsection (2), the circumstances that may be specified by virtue of paragraph (b) of that subsection include—

F11a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

failure by the trustees or managers of the scheme to do what is needed to carry out what a member of the scheme requires within 6 months of F1the appropriate date; and

c

the state of the funding of the scheme.

F133ZA

Where, in the case of an application from a member under section 95 that relates to money purchase benefits that are collective money purchase benefits, regulations under section 99(2)(c) provide for a period longer than 6 months, subsection (3)(b) is to be read as if the reference to 6 months were a reference to that longer period.

F123A

For the purposes of subsection (3), the “appropriate date”—

a

in relation to a cash equivalent that relates to benefits other than money purchase benefits, means the guarantee date for the purposes of the relevant statement of entitlement under section 93A, and

b

in relation to a cash equivalent that relates to money purchase benefits, means the date on which the trustees or managers receive an application from the member under section 95.

3B

Where regulations under subsection (2)(b) provide for the cash equivalent shown in a statement of entitlement to be increased or reduced after the member has made an application under section 95, the regulations may provide for the application under section 95 to lapse (but this does not prevent the member making a fresh application in respect of the increased or reduced cash equivalent).

4

Regulations under subsection (2) may specify as the amount by which a cash equivalent is to be reduced such an amount that a member has no right to receive anything.