The Occupational Pension Schemes (Contracting-out) (Amendment) Regulations 2006

• Citation: S.I. 2006/1337
• Sections: 2

Section 1 Citation and commencement

These Regulations may be cited as the Occupational Pension Schemes (Contracting-out) (Amendment) Regulations 2006 and shall come into force on 14th June 2006.

Section 2 Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996

(1) The Occupational Pension Schemes (Contracting-out) Regulations 1996 shall be amended as follows.

(2) In regulation 60 (payment of a guaranteed minimum pension as a lump sum)—

(a) in paragraph (1)(b) in head (i)(aa), for “of that Part” substitute “of Part 1 of Schedule 29 to that Act”;

(b) after paragraph (2) add—

(3) Subject to paragraph (4), for the purposes of section 21(1) of the 1993 Act further circumstances are where the payment of a lump sum—

(a) is authorised under section 164 of the Finance Act 2004;

(b) is permitted by the lump sum rule in section 166 of that Act; and

(c) qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act.

(4) Where—

(a) under the scheme, an earner qualifies for a lump sum payment on the ground of serious ill-health; and

(b) the scheme also provides for the payment of a guaranteed minimum pension to the widow, widower or surviving civil partner of the earner (“a survivor’s pension”),

the scheme must continue to include provision for a survivor’s pension notwithstanding the payment of a lump sum to the earner.