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—
- a
5 per cent. in a case where—
- i
the pension is in payment before 6th April 2005; or
- ii
the pension is not in payment before 6th April 2005 but the entitlement to the relevant pension credit arose before that day; and
- 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.