SCHEDULES
C1SCHEDULE 28Registered pension schemes: authorised pensions—supplementary
Part 1Pension rules
Money purchase arrangements
3
1
For the purposes of this Part an annuity payable to the member is a lifetime annuity if—
a
it is payable by an insurance company,
b
the member had an opportunity to select the insurance company,
F6ba
the member becomes entitled to it before 6 April 2015,
c
it is payable until the member’s death or until the later of the member’s death and the end of a term certain not exceeding ten years, and
F2d
its amount either cannot decrease or falls to be determined in any manner prescribed by regulations made by the Board of Inland Revenue.
F71A
For the purposes of this Part, but subject to any provision made under sub-paragraph (2C)(za), an annuity payable to the member is also a lifetime annuity if—
a
it is payable by an insurance company,
b
the member becomes entitled to it on or after 6 April 2015, and
c
it is payable until the member's death or until the later of the member's death and the end of a term certain.
2
An annuity is payable until the end of a term certain even if it may, after the death of the member during the term, end on the annuitant—
a
marrying,
F4aa
entering into a civil partnership,
b
reaching the age of 18, or
c
ceasing to be in full-time education.
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An annuity does not fail to satisfy sub-paragraph (1)(d) by reason of the operation of
F12b
an order under section 377A of the Financial Services and Markets Act 2000 (court order writing down liabilities of insurer).
2B
The Board of Inland Revenue may by regulations make provision in relation to cases in which a lifetime annuity payable by an insurance company (“the original lifetime 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 lifetime annuity (a “new lifetime annuity”) or a scheme pension, short-term annuity, dependants' scheme pension, dependants' annuityF11, nominees' annuity or dependants' short-term annuity by the other insurance company, or
b
sums or assets are transferred to the relevant registered pension scheme.
2C
The regulations may provide that—
F8za
in a case where—
i
a new annuity becomes payable,
ii
the member becomes entitled to it on or after 6 April 2015,
iii
it would be a lifetime 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 (2E)), and
v
any other conditions prescribed by the regulations are met,
the new annuity is not a lifetime annuity for the purposes of this Part,
a
in a case where a new lifetime annuity becomes payable, the new lifetime 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 lifetime annuity, and
b
in F9a case other than one where a new lifetime annuity becomes payable, the relevant registered pension scheme is to be treated as making an unauthorised payment to the member of an amount equal to the aggregate of the amount of the sums, and the market value of the assets, transferred.
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2D
For the purposes of sub-paragraphs (2B) and (2C) a registered pension scheme is the relevant registered pension scheme if the original lifetime annuity was acquired using sums or assets held for the purposes of the pension scheme.
F102E
In sub-paragraph (2C)(za)(iv) “allowed decreases” means decreases from time to time allowed by regulations under sub-paragraph (1)(d); and any such regulations are to be treated as having effect for this purpose.
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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)