SCHEDULES

SCHEDULE 11 Personal pensions: income withdrawals

Interpretation

2

1

Section 630 (interpretation) is amended as follows.

2

Make the present provision subsection (1) and insert the following definitions at the appropriate places—

  • “income withdrawal” means a payment of income, under arrangements made in accordance with a personal pension scheme, otherwise than by way of an annuity;

  • “pension date”, in relation to any personal pension arrangements, means the date determined in accordance with the arrangements on which—

    1. a

      an annuity such as is mentioned in section 634 is first payable, or

    2. b

      the member elects to defer the purchase of such an annuity and to make income withdrawals in accordance with section 634A;

and in the definition of “personal pension scheme” after “annuities” insert “ , income withdrawals ”.

3

After that subsection insert—

2

For the purposes of this Chapter the annual amount of the annuity which would have been purchasable by a person on any date shall be calculated by reference to—

a

the value on that date, determined by or on behalf of the scheme administrator, of the fund from which income withdrawals are to be or have been made by him under the arrangements in question, and

b

the current published tables of rates of annuities prepared for the purposes of this Chapter by the Government Actuary.

3

The reference in subsection (2)(a) above to the value of the fund from which income withdrawals are to be or have been made under any personal pension arrangements is to the value of the accrued rights to which the person concerned is entitled conferring prospective entitlement to benefits under those arrangements.

Where a lump sum falls to be paid on the date in question, the reference is to the value of the fund after allowing for that payment.

4

The Board may make provision by regulations as to the basis on which the tables mentioned in subsection (2)(b) above are to be prepared and the manner in which they are to be applied.