PART 2AMENDMENTS RELATING TO INDEXATION

Pension Sharing (Pension Credit Benefit) Regulations 2000

Indexation: changes to maximum percentage15

1

Regulation 32 of the Pension Sharing (Pension Credit Benefit) Regulations 200017 (increase of relevant pension) is amended as follows.

2

In paragraph (1), for sub-paragraph (b) substitute—

b

the maximum percentage.

3

In paragraph (2), after the definition of “appropriate percentage” insert—

  • “maximum percentage” means—

    1. a

      5 per cent. in a case where—

      1. i

        the pension is in payment before 6th April 2005; or

      2. ii

        the pension is not in payment before 6th April 2005 but the entitlement to the relevant pension credit arose before that day; and

    2. b

      2.5 per cent. in a case where the entitlement to the relevant pension credit arises on or after 6th April 2005;

  • “relevant pension credit” means the pension credit to which eligible pension credit rights are (directly or indirectly) attributable;

Eligible pension credit rights16

For regulation 35 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (definition of eligible pension credit rights) substitute—

Definition of eligible pension credit rights35

1

For the purposes of section 40(3) of the 1999 Act, pension credit rights are eligible if they fall within paragraph (2) and are not excluded by paragraph (3).

2

Pension credit rights are within this paragraph if—

a

they are derived from rights attributable to pensionable service on or after 6th April 1997 of the member whose pension rights were the subject of a pension sharing order or provision; or

b

they are safeguarded rights.

3

Excluded pension credit rights are—

a

rights to pensions which are money purchase benefits and which become pensions in payment on or after 6th April 2005; or

b

rights derived from additional voluntary contributions.