SCHEDULES
C1SCHEDULE 28Registered pension schemes: authorised pensions—supplementary
Part 2Pension death benefit rules
Money purchase arrangements
17
1
F2For the purposes of this Part an annuity payable to a dependant is a dependants' annuity if—
F8za
either—
i
it is purchased together with a lifetime annuity payable to the member and the member becomes entitled to that lifetime annuity before 6 April 2015, or
ii
it is purchased after the member's death and the dependant becomes entitled to it before 6 April 2015,
a
it is payable by an insurance company,
b
the member or dependant had an opportunity to select the insurance company,
F3c
its amount either cannot decrease or falls to be determined in any manner prescribed by regulations made by the Board of Inland Revenue,
d
where the dependant is not the member’s child, it is payable until the dependant’s death or until the earlier of the dependant’s marryingF5, entering into a civil partnership or dying, and
e
where the dependant is the member’s child, it is payable until the earlier of the dependant’s ceasing to be a dependant or dying, or until the earliest of the dependant’s marryingF6, entering into a civil partnership, ceasing to be a dependant or dying.
F101ZA
For the purposes of this Part, but subject to any provision made under sub-paragraph (4)(za), an annuity payable to a dependant is also a dependants' annuity if—
a
either—
i
it is purchased together with a lifetime annuity payable to the member and the member becomes entitled to that lifetime annuity on or after 6 April 2015, or
ii
it is purchased after the member's death and the dependant becomes entitled to it on or after 6 April 2015,
b
it is payable by an insurance company,
c
where the dependant is not the member's child, it is payable until the dependant's death or until the earliest of the dependant's marrying, entering into a civil partnership or dying, and
d
where the dependant is the member's child, it is payable until the earlier of the dependant's ceasing to be a dependant or dying, or until the earliest of the dependant's marrying, entering into a civil partnership, ceasing to be a dependant or dying.
F41A
For the purposes of F9sub-paragraphs (1)(za) and (1ZA)(a) a dependants' annuity is purchased together with a lifetime annuity if the dependant's annuity is related to the lifetime annuity.
F12
An annuity does not fail to satisfy sub-paragraph (1)(c) by reason of the operation of
F16b
an order under section 377A of the Financial Services and Markets Act 2000 (court order writing down liabilities of insurer).
3
The Board of Inland Revenue may by regulations make provision in relation to cases in which a dependants' annuity payable to a person (“the original dependants' annuity”) ceases to be payable and in consequence of that—
a
sums or assets (or both) are transferred from the insurance company to another insurance company and are applied towards the provision of either another dependants' annuity (a “new dependants' annuity”) or a scheme pension, lifetime annuity, short-term annuity, dependants' scheme pension or dependants' short-term annuity by the other insurance company, or
b
sums or assets are transferred to the relevant registered pension scheme.
4
The regulations may provide that—
F11za
in a case where—
i
a new annuity becomes payable,
ii
the dependant becomes entitled to it on or after 6 April 2015,
iii
it would be a dependants' annuity if any provision made under this paragraph were ignored,
iv
the terms of the contract for it are such that there will or could be decreases in its amount other than allowed decreases (see sub-paragraph (6)), and
v
any other conditions prescribed by the regulations are met,
the new annuity is not a dependants' annuity for the purposes of this Part,
a
in a case where a new dependants' annuity becomes payable, the new dependants' annuity is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original dependants' annuity, and
b
in F12a case other than one where a new dependants' annuity becomes payable, the relevant registered pension scheme is to be treated as making an unauthorised payment in respect of the member of an amount equal to the aggregate of the amount of the sums, and the market value of the assets, transferred.
F74A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
For the purposes of sub-paragraphs (3) and (4) a registered pension scheme is the relevant registered pension scheme if the original dependants' annuity was acquired using sums or assets held for the purposes of the pension scheme.
F136
In sub-paragraph (4)(za)(iv) “allowed decreases” means decreases from time to time allowed by regulations under sub-paragraph (1)(c); and any such regulations are to be treated as having effect for this purpose.
Sch. 28 modified by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 14 (as substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 5)