F1PART IVA REQUIREMENTS RELATING TO PENSION CREDIT BENEFIT
CHAPTER I PENSION CREDIT BENEFIT UNDER OCCUPATIONAL SCHEMES
97A Scope of Chapter I.
1
This Chapter applies to any occupational pension scheme whose resources are derived in whole or part from—
a
payments to which subsection (2) applies made or to be made by one or more employers of earners to whom the scheme applies, or
b
such other payments by the earner or his employer, or both, as may be prescribed for different categories of scheme.
2
This subsection applies to payments—
a
under an actual or contingent legal obligation, or
b
in the exercise of a power conferred, or the discharge of a duty imposed, on a Minister of the Crown, government department or any other person, being a power or duty which extends to the disbursement or allocation of public money.
97B Interpretation.
In this Chapter—
“scheme” means an occupational pension scheme to which this Chapter applies;
“pension credit rights” means rights to future benefits under a scheme which are attributable (directly or indirectly) to a pension credit;
“pension credit benefit”, in relation to a scheme, means the benefits payable under the scheme to or in respect of a person by virtue of rights under the scheme attributable (directly or indirectly) to a pension credit;
“normal benefit age”, in relation to a scheme, means the earliest age at which a person who has pension credit rights under the scheme is entitled to receive a pension by virtue of those rights (disregarding any scheme rule making special provision as to early payment of pension on grounds of ill-health or otherwise).
97C Basic principle as to pension credit benefit.
1
Normal benefit age under a scheme must be between 60 and 65.
2
A scheme must not provide for payment of pension credit benefit in the form of a lump sum at any time before normal benefit age, except in such circumstances as may be prescribed.
97D Form of pension credit benefit and its alternatives.
1
Subject to subsection (2) and section 97E, a person’s pension credit benefit under a scheme must be—
a
payable directly out of the resources of the scheme, or
b
assured to him by such means as may be prescribed.
2
Subject to subsections (3) and (4), a scheme may, instead of providing a person’s pension credit benefit, provide—
a
for his pension credit rights under the scheme to be transferred to another occupational pension scheme or a personal pension scheme with a view to acquiring rights for him under the rules of the scheme, or
b
for such alternatives to pension credit benefit as may be prescribed.
3
The option conferred by subsection (2)(a) is additional to any obligation imposed by Chapter II of this Part.
4
The alternatives specified in subsection (2)(a) and (b) may only be by way of complete or partial substitute for pension credit benefit—
a
if the person entitled to the benefit consents, or
b
in such other cases as may be prescribed.
97E Discharge of liability where pension credit or alternative benefits secured by insurance policies or annuity contracts.
1
A transaction to which section 15 applies discharges the trustees or managers of a scheme from their liability to provide pension credit benefit or any alternative to pension credit benefit for or in respect of a member of the scheme if and to the extent that—
a
it results in pension credit benefit, or any alternative to pension credit benefit, for or in respect of the member being appropriately secured (within the meaning of that section),
b
the transaction is entered into with the consent of the member or, if the member has died, of the member’s widow or widower, and
c
such requirements as may be prescribed are met.
2
Regulations may provide that subsection (1)(b) shall not apply in prescribed circumstances.
Pt. 4A Chapters 1, 2 (ss. 97A-97Q) inserted (1.12.1999 for certain purposes and otherwise 1.12.2000) by S.I. 1999/3147 (N.I. 11), arts. 1(5)(a), 34; S.R. 2000/133, art. 2(3), Sch. Pt. IV