SCHEDULES

C2C1SCHEDULE 32Registered pension schemes: benefit crystallisation events—supplementary

Annotations:
Modifications etc. (not altering text)

Benefit crystallisation event 3: excepted circumstances

I1C2C110

F4A1

For the purposes of benefit crystallisation event 3 “excepted circumstances” exist if condition A or B is met.

F11

F6Condition A is that—

F7za

the entitlement to payment of a scheme pension at an increased annual rate is under an arrangement that is not a collective money purchase arrangement,

a

F9... at the time when the annual rate of the individual’s pension is increased there are at least 50 pensioner members of the pension scheme, and

F2b

F8... the individual is one of a class of at least 20 pensioner members of the pension scheme, and all the scheme pensions being paid under the pension scheme to pensioner members of that class are at that time increased at the same rate.

F32

A class may consist of all the pensioner members of the pension scheme.

3

Sub-paragraph (4) applies where—

a

the annual rate of the individual's pension is increased in excepted circumstances (“the excepted increase”),

b

before the end of the period of 12 months beginning with the date of the excepted increase, the annual rate of the individual's pension is increased in circumstances which would (apart from that sub-paragraph) be excepted circumstances (“the subsequent increase”), and

c

the class by virtue of which sub-paragraph (1)(b) is satisfied on the subsequent increase (“the new class”) is not the class by virtue of which it was satisfied on the excepted increase.

4

If the purpose, or one of the main purposes, of the individual's being included in the new class is to increase the annual rate of the individual's pension without benefit crystallisation event 3 occurring, the subsequent increase is not in excepted circumstances.

F55

Condition B is that—

a

the entitlement to payment of a scheme pension at an increased annual rate is under an arrangement that is a collective money purchase arrangement, and

b

at the time when the annual rate of the individual's pension is increased, all the scheme pensions being paid under collective money purchase arrangements are increased at the same rate.