SCHEDULES
C4C3SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary
Sch. 29 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23C (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3 (as amended (with effect in accordance with s. 42(9) of the amending Act) by Finance Act 2014 (c. 26), s. 42(5); and as amended by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 72(1) (with Sch. 1 para. 72(2)(b)))
C1C2Part 2Lump sum death benefit rule
Sch. 29 Pt. 2 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 14
Sch. 29 Pt. 2 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 6, 8(1)(3)
Defined benefits and money purchase arrangements
20
1
A lump sum death benefit is a trivial commutation lump sum death benefit F2if condition A or B is met.
F31A
Condition A is that the lump sum—
a
is paid to a dependant entitled under the pension scheme to pension death benefit in respect of the member, and
b
extinguishes the dependant's entitlement under the pension scheme to pension death benefit and lump sum death benefit in respect of the member.
1B
Condition B is that—
a
the lump sum is paid after the member's death to an individual entitled to be paid a pension under the scheme—
i
which the member was entitled to be paid immediately before the member's death, and
ii
which is payable to the individual under pension rule 2 (see section 165),
b
if the pension is an annuity or scheme pension payable by an insurance company, the lump sum extinguishes all entitlements in respect of the member under the contract concerned, and
c
if the pension is a scheme pension payable by the scheme administrator, the lump sum extinguishes all entitlements to receive a scheme pension in respect of the member from the scheme administrator under pension rule 2.
2
But if the amount of a lump sum falling within sub-paragraph (1) exceeds F4£30,000, the excess is not a trivial commutation lump sum death benefit.
F13
The Treasury may by order substitute for the amount for the time being specified in sub-paragraph (2) such larger amount as is specified in the order.
F521
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 29 modified by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 15 (as substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 6; and amended by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(3)-(14) (with Sch. 1 para. 96(16)(b))