The Pension Schemes (Reduction in Pension Rates) Regulations 2006

• Citation: S.I. 2006/138
• Sections: 3

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the Pension Schemes (Reduction in Pension Rates) Regulations 2006 and shall come into force on 6th April 2006.

(2) In these Regulations a reference, without more, to a paragraph is a reference to a paragraph of Schedule 28 of the Finance Act 2004.

Section 2 Forfeiture of entitlement to pension — prescribed circumstances

(1) For the purposes of paragraph 2(4)(e) (forfeiture of entitlement to pension) the prescribed circumstances are where forfeiture of a pension has been permitted —

(a) under section 92(2) or 93 of the Pensions Act 1995 (“the 1995 Act ”) providing that the member meets the condition set out in sub-paragraph 2(2);

(b) under section 92(4) or (5) of the 1995 Act;

(c) under Article 90(4) or (5) or 91 of the Pensions (Northern Ireland) Order 1995 ;

(d) in any of the circumstances prescribed by the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc. ) Regulations 1997 or the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997 .

(2) The condition referred to in sub-paragraph 2(1)(a) is that the member is not connected with—

(a) the sponsoring employer of the scheme in respect of which the scheme pension is payable (“the employer”); or

(b) a person who is connected with the employer.

(3) Section 839 of ICTA 1988 applies to determine whether persons are connected for the purposes of paragraph (2) of this regulation.

Section 3 Reduction of pension — prescribed circumstances

For the purposes of paragraph 2(4)(h) (reduction of the pension in any other circumstances prescribed by regulations) the prescribed circumstances are where the amount of pension payable to a member has been reduced under any of the following provisions—

(a) section 138(2) of the Pensions Act 2004 (payment of scheme benefits);

(b) article 122(2) of the Pensions (Northern Ireland) Order 2005 ;

(c) paragraph 14(3) or 15(3) (guaranteed minimum pension etc ) of Schedule 5 to the Gender Recognition Act 2004 .