IMPORTANT: For pension funds under £30,000 please click here


UK Annuities: FINANCIAL CONDUCT REGULATED SITES • QUALIFIED, TRUSTWORTHY ANNUITY ADVICE

Centralising Your Pension Annuity Search

BUT FIRST, SOME IMPORTANT INFORMATION THAT COULD BOOST YOUR RETIREMENT FINANCES Have you taken out a credit or store card, mortgage, secured loan, unsecured loan or hire purchase agreement in the last 10 years? If you have (or have had) a mortgage, loan or credit card with providers such as Barclaycard, Abbey, Santander, Littlewoods, MBNA, Halifax, HSBC, HBOS, Lloyds, Natwest, RBS or in fact any other credit provider, you may be able to reclaim up to £15,000 if you were sold PPI insurance - in most cases even if you have lost the paperwork. Learn more about PPI Claims now!


annuity comparisons Visit Open Annuities

You could increase your annuity by thousands. Make sure you recognise the best annuity advice when you get it. The more information about annuities you have, the more able you will be to recognise the best annuity advice when you receive it.
Visit Open Annuities Financial Services Register Number 530750


Annuity Plan Visit Pension Annuity Plan

You may be able to secure several thousand pounds more over your lifetime from annuity providers than your current pension provider. Many are unaware of this very important information. The more information you have, the more able you will be to recognise the best deal when you see it.
Visit Pension Annuity Plan Financial Services Register Number 530750


annuities plan Visit Annuities Plan

All fund sizes welcomed. Why should the annuity buyer be careful? Buying from your pension provider isn't always necessarily the best idea.
Visit Annuities Plan Financial Services Register Number 530750


annuity comparisons Visit Pension Annuity Planner

This company may be able to increase your standard pension annuity through enhanced annuities.
Visit Pension Annuity Planner Financial Services Register Number 530750


annuity comparisons Visit Annuity Base

Using specialist annuity industry search software, an FCA registered Independent Financial Adviser will query top annuity and annuity alternative providers' databases to help you compare and choose which one is the best for you.
Visit Annuity Base Financial Services Register Number 530750


annuity comparisons Visit The Enhanced Annuity

Specialists in enhanced annuities. It is estimated that up to 40% of the UK population could boost their pension annuity income with an "enhanced annuity".
Visit The Enhanced Annuity Financial Services Register Number 483817


annuity comparisons Visit Annuity Comparisons

Why would you use an automated annuity comparison website when an authorised, qualified pension consultant can advise you which is the best annuity for free with no obligation to buy? There are many reasons why you should not trust your future income to comparison tables on faceless sites. In some matters you need absolute certainty.
Visit Annuity Comparisons Financial Services Register Number 483817


annuity comparisons Visit Annuities Extra

Pension annuities for those of us who are not in the best of health. If you've a health problem, no matter how small or insignificant you think it is, you'll stand an increased chance of a higher annuity income.
Visit Annuities Extra Financial Services Register Number 483817


annuity comparisons Visit Simple Annuities

Finding an annuity does not have to be difficult. Pension annuity retirement finance experts with vast experience of annuities are waiting to help you. Compare pension annuities and annuity alternatives now.
Visit Simple Annuities Financial Services Register Number 483817


annuity comparisons Visit The Female Annuity

1000's of women retire every week in the UK. Compare annuities for women and their alternatives.
Visit The Female Annuity Financial Services Register Number 460094


annuity comparisons Visit Annuity Pathway

Your simple pension annuity journey. How you might take the wrong annuity route and lose the annuity income that is rightfully yours.
Visit Annuity Pathway Financial Services Register Number 460094


annuity comparisons Visit Just One Bite Annuities

How a pension annuity will affect your life. You will only get one bite of the annuity apple. Once you buy an annuity, there's no going back.
Visit Just One Bite Annuities Financial Services Register Number 460094


annuity comparisons Visit Pension Annuities Plus

Your annuity income may increase if you have had certain conditions such as high blood pressure, asthma or high cholesterol. This is also true for smokers and for those who have worked in certain occupations. Get pension annuity comparisons now.
Visit Pension Annuities Plus Financial Services Register Number 483817


annuity comparisons Visit Annuity Answers

Why should the pension annuity buyer beware and why do so many retirees ignore a much bigger annuity income? Compare annuities now.
Visit Annuity Answers Financial Services Register Number 483817


annuity comparisons Visit Smokers Annuities

Your lifespan as a smoker and your annuity options. We're sorry to be blunt, but you most likely already know that smokers, in general, have shorter lifespans than non-smokers. Of course annuity providers are well aware of this unfortunate fact of life. Increase your annuity now.
Visit Smokers Annuities Financial Services Register Number 483817


annuity comparisons Visit Annuity Key

Unlike some companies, all fund sizes are accepted. The Retirement Income Customer Hotline Limited may be able to boost your pension income by more than 40% compared with your current pension provider's offering.
Visit Annuity Key Financial Services Register Number 460094


annuity comparisons Visit Buy an Annuity

Buying an annuity from your pension provider isn't always necessarily the best option! You might be able to secure several thousand pounds more over your retirement from annuity providers than your current pension provider.
Visit Buy an Annuity Financial Services Register Number 154622


annuity office Visit Annuity Office

We recognise our annuity clients as individuals, which is why we deal with every case on a one-to-one individual basis. Did you know for instance that your income may increase if you have had certain health problems such as high blood pressure, high cholesterol or asthma? This is also true for smokers and for those who have worked in certain occupations.
Visit Annuity Office Financial Services Register Number 483817


ANNUITIES: Annuities Tax, Annuities Taxation


Pensions and Annuities Tax Research:

Pensions and Annuities Tax Research

Integrated Model Rules (IMR2003SHP) For Personal Pension Schemes Approved Under Chapter IV of Part XIV of the Income And Corporation Taxes Act 1988 (Which are Contracted Out as Appropriate Personal Pension Schemes and are Stakeholder Pension Schemes) Issued by the Inland Revenue, Savings Pensions and Share Schemes FitzRoy House Castle Meadow Road Nottingham NG2 1BD Tel. 0845 600 2622 Fax. 0115 974 1480 Contents PART 1 : INTRODUCTION 1.1 Tax Approval, Contracting Out and Stakeholder Status 1.2 Member's Chosen Scheme 1.3 Status of Rules 1.4 Contracting Out Requirements 1.5 Form of Scheme 1.6 Member Deeds PART 2 : DEFINITIONS PART 3 : MEMBERS AND ARRANGEMENTS 3.1 to 3.5 Becoming a Member 3.6 to 3.11 Making an Arrangement PART 4 : CONTRIBUTIONS 4.1 to 4.6 Eligibility to Make Contributions 4.7 to 4.9 Permitted Contributions 4.10 to 4.13 Member Contributions 4.14 to 4.15 Use of Contributions 4.16 Minimum Size of Contribution 4.17 Simple Contribution Limit 4.18 Aggregate Contributions 4.19 to 4.23 Evidence of Earnings for Higher Contribution Limit 4.24 to 4.28 Continuation of Contributions After Ceasing to Have Relevant Earnings 4.29 to 4.30 Carry Back of Contributions 4.31 Total Contributions Limit 4.32 Method of Payment of Contributions 4.33 to 4.35 Repayment of Contributions Which Exceed Limit (including Eligibility to Pay Contributions) 4.36 to 4.38 Using Contributions to Buy Life Insurance 4.39 to 4.41 Waiver of Contributions PART 5 : PROTECTED PAYMENTS 5.1 to 5.2 Protected Payments 5.3 Non-Protected Payments 5.4 Use of Protected Rights 5.5 to 5.6 Safeguarded Rights 5.7 to 5.8 Calculation of Protected Rights Fund PART 6 : DATE MEMBER'S BENEFIT STARTS 6.1 Multiple Arrangements 6.2 Split Arrangements 6.3 to 6.3 Protected Payments 6.4 Non-Protected Payments 6.5 Pension Credit Rights 6.6 to 6.8 Incapacity Below Age 50 6.9 to 6.11 Occupations With a Low Retiring Age PART 7 : BENEFIT FOR MEMBER 7.1 Multiple Arrangements 7.2 Split Arrangements 7.3 Protected Rights Fund 7.4 to 7.7 Member's Choice of Lump Sum 7.8 to 7.12 Member's Pension 7.13 Member Taking Early Benefit - Protected Rights Fund 7.14 to 7.16 Member's Right to Choose Insurer : Open Market Option 7.17 to 7.19 Form of Pension 7.20 to 7.22 Minimum Payment Guarantee 7.23 Responsibility of the Scheme Administrator 7.24 to 7.25 Annuity Deferral 7.26 to 7.27 Income Withdrawal 7.28 to 7.30 Income Withdrawal Limits 7.31 to 7.40 Recalculation of Income Withdrawal Limits PART 8 : MEMBER DIES AFTER BENEFIT STARTS 8.1 Member's Choice 8.2 Protected Rights Fund - Restrictions 8.3 Amount of Pension 8.4 Start of Survivor's Pension 8.5 Duration of Child(ren)'s Pension 8.6 Duration of Widow's or Widower's Pension 8.7 Duration of Other Survivor's Pension 8.8 to 8.10 Minimum Payment Guarantee - Survivor's Pension 8.11 Lump Sum Payable Direct by Insurer 8.12 to 8.22 Death of Member During Annuity Deferral Period PART 9 : MEMBER DIES BEFORE BENEFIT STARTS 9.1 to 9.4 Member's Choice 9.5 to 9.7 Protected Rights Fund - Compulsory 9.8 to 9.10 Member's or Survivor's Choice of Insurer 9.11 Scheme Administrator's Choice 9.12 Maximum Amount of Pension 9.13 to 9.14 Start of Survivor's Pension 9.15 Lump Sum Instead of Small Pension 9.16 Duration of Child's Pension 9.17 Duration of Widow's or Widower's Pension 9.18 Duration of Other Survivor's Pension 9.19 Widow's or Widower's Pension Continuing to a Child 9.20 to 9.23 Minimum Payment Guarantee 9.24 Protected Rights Fund - Lump Sum 9.25 Non-Protected Rights Fund - Lump Sum 9.26 Lump Sum Payable by Scheme Administrator - Time Limit 9.27 Annuity Deferral 9.28 to 9.32 Income Withdrawal 9.33 to 9.37 Income Withdrawal Limits 9.38 Death of Survivor During Annuity Deferral Period PART 10 : MEMBER DIES BEFORE PENSION STARTS - LIFE INSURANCE 10.1 Lump Sum Payable Under Life Insurance Contract PART 11 : MEMBER WITH PROTECTED RIGHTS FUND DIES AFTER PENSION STARTS BUT BEFORE EFFECT HAS BEEN GIVEN TO PROTECTED RIGHTS 11.1 Member Dies Before Effect Given to Protected Rights PART 12 : TRANSFER OUT OF THE SCHEME 12.1 Member's Right to a Cash Equivalent 12.2 to 12.7 Transfer Payments 12.8 to 12.9 Transfer to an Overseas Pension Scheme 12.10 Member Withdrawing a Request 12.11 Time of Transfer 12.12 to 12.13 Transfer of Member's Benefits Whilst in Income Withdrawal 12.14 Transfer of Survivor's or Substitute Member's Benefits Whilst in Income Withdrawal 12.15 Pension Credit Rights 12.16 to 12.24 Protected Rights Fund - Additional Conditions 12.25 to 12.26 Safeguarded Rights- Additional Conditions 12.27 Discharge of Rights 12.28 Multiple Transfers PART 13 : TRANSFER INTO THE SCHEME 13.1 to 13.3 Transferring Scheme 13.4 to 13.10 General Conditions 13.11 to 13.12 Protected Rights Fund 13.13 Time of Transfer 13.14 to 13.16 Acceptance of Transfers of Income Withdrawal Benefits 13.17 to 13.18 Lump Sum Restriction on Death PART 14 : GENERAL PROVISIONS ABOUT BENEFITS 14.1 Rights Under the Scheme 14.2 to 14.3 Assignment or Surrender 14.4 to 14.6 Information to Members 14.7 Beneficiary Unable to Act 14.8 Prison 14.9 Whereabouts Unknown 14.10 Evidence 14.11 Notice to Scheme Administrator PART 15 : GENERAL PROVISIONS ABOUT PENSIONS 15.1 to 15.2 Payment Intervals 15.3 to 15.4 Increase in Payment 15.5 Enforceability PART 16 : PROVIDER AND SCHEME ADMINISTRATOR 16.1 to 16.2 Provider 16.3 Scheme Administrator 16.4 Trustees 16.5 Stakeholder Pension Scheme Requirements PART 17 : CLOSING OR WINDING-UP THE SCHEME 17.1 to 17.2 Closing the Scheme 17.3 to 17.4 Winding-up the Scheme 17.5 to 17.12 Stakeholder Pension Scheme Requirements PART 18 : WITHDRAWAL OF REVENUE APPROVAL 18.1 Withdrawal of Approval of Scheme 18.2 Withdrawal of Approval of a Member's Arrangement PART 19 : SCHEME CEASES TO BE AN APPROPRIATE PERSONAL PENSION SCHEME 19.1 Requirements Under Personal Pension Schemes (Disclosure of Information) Regulations 1987 (SI 1987/1110) 19.2 Stakeholder Pension Scheme Requirements PART 20 : INVESTMENTS OR DEPOSITS HELD FOR THE PURPOSE OF THE SCHEME 20.1 to 20.3 Investments Generally 20.4 to 20.6 Prohibited Investments 20.7 to 20.10 Connected Transactions 20.11 to 12.13 Stakeholder Pension Scheme Requirements PART 21 : ALTERATIONS TO THESE RULES 21.1 Inland Revenue Consent 21.2 to 21.3 Power to Alter These Rules 21.4 Alteration of an Arrangement SCHEDULE TO THE RULES 1. Name of Provider 2. Name of Scheme Administrator Interpretation: References to any legislation or any provision includes references to any previous legislation or provision relating to the same subject matter and to any modification or re-enactment for the time being in force --------------------------------------------------------------------------------------- 1. Introduction TAX APPROVAL, CONTRACTING OUT AND STAKEHOLDER STATUS 1.1 The scheme is a personal pension scheme designed for approval under Chapter IV of Part XIV of the Act. Its only purpose is to provide income withdrawals, annuities and lump sums as described in the scheme documents (including these rules). The provider is a financial institution and the scheme is set up for a wider membership than a specific employment (or employments) and is contracted out as an appropriate personal pension scheme. The scheme is registered with Opra as a stakeholder pension scheme and does not allow its members options over investment choice to such a degree that an arrangement becomes a self-invested personal pension scheme. MEMBER'S CHOSEN SCHEME 1.2 The scheme is also designed to receive payments from the Inland Revenue where a notice has been given to the Inland Revenue that a member wishes minimum contributions to be made to the scheme. STATUS OF RULES 1.3 These rules set out the requirements for tax approval and contracting out which override any inconsistent provisions in the other scheme documents. These rules don't override the law. If any provision conflicts with the law, the law will apply. References to any legislation or any provision includes references to any previous legislation or provision relating to the same subject matter and to any modification or re-enactment for the time being in force. CONTRACTING OUT REQUIREMENTS 1.4 The provisions in the rules relating to the legal requirements for the issue of an appropriate scheme certificate must be read in conjunction with the legislative requirements. To the extent that something is not covered by the rules, or is in contradiction to the rules, the legislative requirements shall be overriding. FORM OF SCHEME 1.5 The scheme may (but depending on the type of provider, need not) be set up under trust. If the scheme is to take the form of individual irrevocable trusts for each member, the benefits for each member under the scheme will be held under a trust to be established by the scheme administrator for the benefit of that member in a form approved by the Inland Revenue. The reference to member in this rule should be taken to include a substitute member. MEMBER DEEDS 1.6 In certain circumstances, each member will be required to enter into a formal agreement, by deed. This deed must state that the member won't require the withdrawal of trust funds, or income from those trust funds to be paid to him or her, except for the payment of benefits under the scheme at the time provided by the rules. Unless the scheme administrator or scheme trustees decide otherwise these deeds won't be required if : * all the arrangements to be made under the scheme are in the form of insurance contracts, or * it is known from the outset that the scheme will have at least twelve members. The reference to member in this rule should be taken to include a substitute member. 2. Definitions In these Integrated Model Rules the following words have the following meanings : Act means the Income and Corporation Taxes Act 1988. Actuary means a Fellow of the Institute of Actuaries or a Fellow of the Faculty of Actuaries, or a person with other actuarial qualifications who is approved by the Secretary of State for Work and Pensions, at the request of the scheme administrator, as being a proper person to act in this capacity. Affinity Group means any organisation representing particular trades, professions, industries or other group. Age Related Percentage means the percentages set out in section 640 of the Act. These are set as at the age of the member at the start of a tax year i.e. 6 April, and are: Up to age 35 17.5% 36 to 45 20% 46 to 50 25% 51 to 55 30% 56 to 60 35% 61 to 74 40% Appropriate Personal Pension Scheme means a personal pension scheme that has received an appropriate scheme certificate under the Pension Schemes Act. Approved Personal Pension Scheme means a personal pension scheme approved under Chapter IV of Part XIV of the Act. Arrangement means an arrangement (as described in rules 3.6 to 3.11) made by a person with the scheme administrator to provide benefits under these rules. Connected is defined by section 839 of the Act. Contracted-Out has the same meaning as in the Pension Schemes Act. Contracted-Out Money Purchase Scheme refers to a scheme for which there is a contracting out certificate to the effect that it is such a scheme under the Pension Schemes Act. Controlling Director means as defined in section 632B(3) of the Act. Dependant means a person who is financially dependent on the member, or dependent on the member because of disability, or was so dependent at the time of the member's death or retirement. An ex-spouse of the member who was in receipt of payments from the member up to his or her death in respect of, for example, a financial provision order under the Matrimonial Causes Act 1973, may be regarded as financially dependent on the member. An adult relative who is not or was not supported by the member is not that member's dependant. Subject to the following paragraphs, a pension paid to an adult dependant who qualifies on grounds of financial dependency or disability, may continue indefinitely. Natural or adopted children of the member may automatically be regarded as dependent on the member if at the time of his or her death they were: (i) under 18; (ii) over 18 but continuing to receive full-time education or vocational training; or (iii) dependent on the member because of disability. Any pension paid by reason of (i) or (ii) should cease when age 18 is reached or full-time education or vocational training ceases, whichever is the later. A pension paid by reason of (iii) may continue indefinitely. Other children (i.e. neither natural nor adopted children of the member) may qualify as dependants only if they were financially dependent on the member, or dependent on the member by reason of disability. Any pension paid to such children on grounds of financial dependence should cease when age 18 is reached or full-time education or vocational training ceases, whichever is the later. This ensures parity of treatment between offspring and other minor dependants. A pension paid because of dependency by reason of disability may continue indefinitely. It is not necessary to show financial dependency for a person dependent on the member because of disability. An unmarried partner, whether of the same or opposite sex, can qualify as a survivor only if he or she was financially dependent on the member. Financial interdependence of the member and his or her partner is an acceptable criterion, for example where the partner relied upon a second income to maintain a standard of living which had depended on joint income prior to the member's death. It is for the scheme administrator to decide whether a person meets this definition. Dependent Child or Dependent Children means a child (or children) for whom the member was entitled to child benefit immediately before he or she died (or would have been if the child or children had been in the United Kingdom). Discharge Regulations means the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000 (SI 2000/1053). DWP means Department for Work and Pensions. Earnings Cap means the allowable maximum as defined in section 640A of the Act and is as specified by Treasury Orders. Employee Share Scheme means : * an approved profit-sharing scheme under section 186 of the Act, * a 'share incentive plan' being an employee share ownership plan under Schedule 8 Finance Act 2000, or * a savings-related share option scheme under Schedule 9 Finance Act 2000. Employer means the current employer or employers of a member. Ex-spouse means an individual to whom pension credit rights have been or are to be allocated following a pension sharing order, agreement or equivalent provision. Guaranteed Minimum Pension has the same meaning as in the Pension Schemes Act. Higher Contribution Limit means the figure obtained by multiplying net relevant earnings (limited to the earnings cap) by the age related percentage. Where the limit is being calculated for a tax year on the basis of evidence of earnings produced for an earlier tax year (see rule 4.21) then those earnings will be limited by the earnings cap that applies for the tax year in question and not the earlier tax year . Minimum contributions as described in (3) of rule 4.7 don't count towards this limit. Insurer means an insurance company, an EC company or a friendly society as described in regulation 11 of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (SI 1996/1537), and in section 659B of the Act. Member means an individual who has made one or more arrangements under the scheme for the provision of benefits. It also includes an individual who : * at the time the arrangement was made was under the age of 16 (or, in England and Wales and Northern Ireland, under the age of 18 if not in employment) and whose legal guardian made the arrangement on the individual's behalf under the scheme, or * has had one or more arrangements made on his or her behalf following the winding-up of another scheme. For the avoidance of doubt, an individual who makes an arrangement under the scheme in order to accept a transfer of income withdrawal benefits from another approved personal pension scheme in accordance with rule 13.15 is a substitute member under the terms of these rules, not a member or survivor (see rule 13.16). Member's Fund means the aggregate, under an arrangement, of the accumulated values of : * the contributions paid to the scheme by or in respect of the member, * any transfer payment accepted by the scheme in respect of the member, * any pension credit rights accepted by the scheme in respect of the member, and * any income or capital gain arising from the investment of such amounts. It excludes: * the value of any contract or part of a contract to which contributions have been applied under the provisions of rules 4.36 or 4.39, * any administrative expenses of the scheme and any payments of commission, and * any pension debit arising as a result of a pension sharing order. Minimum Contributions are contributions as described in rule 5.1. Money Purchase Benefits means benefits calculated by reference to payments made by, or in respect of, a member. It does not include benefits calculated by reference to the member's final or average salary. Net Relevant Earnings are defined in section 646 of the Act. Non-Protected Rights means the part of the member's fund under an arrangement that is not protected rights. Non-Protected Rights Fund is as referred to in rule 5.3. Occupational Pension Scheme means a scheme as defined in section 1 of the Pension Schemes Act, or section 176 of The Pension Schemes (Northern Ireland) Act 1993. Opra means the Occupational Pensions Regulatory Authority. Pensionable Age has the meaning given in Schedule 4 of the Pensions Act 1995. Pension Credit Rights means rights to benefits arising from a credit as defined in section 101P of the Pension Schemes Act , as inserted by section 37 of the Welfare Reform and Pensions Act 1993, or under corresponding Northern Ireland legislation. This includes safeguarded rights. Pension Date is the effective start date of an annuity or income withdrawals under an arrangement. Where an arrangement is split into separate arrangements under rule 3.8 each separate arrangement may have a different pension date. Pension Debit means a debit under section 29(1)(a) Welfare Reform and Pensions Act 1999 or under corresponding Northern Ireland legislation. Pension Schemes Act means the Pension Schemes Act 1993. Pension Sharing Order means any order or provision as defined in either section 19 or 20 of the Welfare Reform and Pensions Act 1999. Pensioneer Trustee is defined by regulation 2(1) of the Retirement Benefits Schemes (Restriction on Discretion to Approve)(Small Self-administered Schemes) Regulations 1991 (SI 1991/1614), and means a trustee of a scheme who is approved by the Board of the Inland Revenue to act as such, and is not connected (as defined) with a scheme member, any other trustee of the scheme, or a person who is the employer in relation to the scheme. Permitted Investments Regulations 2001 means the Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001 (SI 2001/117). Protected Payments are defined in rule 5.1. Protected Pension, Protected Rights and Protected Rights Fund are defined in rule 5.4. Provider means the person who established the scheme or any successor in relation to the provision of benefits as described in section 653A(2)(b) of the Act. Regulated Individual is defined in regulation 8(2) of the Transfer Payments Regulations 2001 and means, in respect of any employment to which a transfer payment or any part of it relates : * an individual who is, or was at any time during the period of ten years prior to the date of transfer, a controlling director, or * an individual - whose annual remuneration is, or was for any year of assessment falling (wholly or partly) during the period of six years prior to the date of transfer, more than the earnings cap for the year of assessment in which the transfer was made, and - who was aged 45 or over at the date of transfer. Regulation is a reference to a regulation of a Statutory Instrument. Relevant Earnings means earnings as defined in section 644 of the Act. It includes earnings from employment (for any time when the member is not accruing rights under a retirement benefits scheme or relevant statutory scheme, other than for death in service benefits only, in respect of that employment) and self-employment. As relevant earnings are gross earnings from a particular job, it is possible to have relevant earnings but no net relevant earnings (because of some tax allowances being set against earnings) but it is not possible to have net relevant earnings with no relevant earnings. Relevant Statutory Scheme means a pension scheme as defined in section 611A of the Act. Resident in the UK means resident and ordinarily resident in the United Kingdom for tax purposes. Retirement Benefits Scheme means a scheme approved under Chapter I, Part XIV of the Act. Rule is a reference to a rule in this document. Rules means these rules of the scheme. Safeguarded Rights means rights as described in section 68A of the Pension Schemes Act. Schedule to the Rules is the schedule to these rules. Scheme means this scheme. Scheme Administrator means the person appointed in the establishing document and mentioned in rule 16.3 who is responsible for the management of the scheme for the purposes of section 638(1) of the Act. For some specific requirements of the Welfare Reform and Pensions Act 1999 or the Pension Schemes Act, the references to scheme administrator in the rules may relate more specifically to the manager or trustees of the scheme. The trustees may be different to the scheme administrator. Scheme Documents means the documents that govern the scheme (including these rules). Section 9(2B) Rights means rights derived through section 9(2B) of the Pension Schemes Act. Self-Invested Personal Pension Scheme means arrangements as described in regulation 3 of The Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001 (SI 2001/117). SHP Regulations 2000 means the Stakeholder Pension Schemes Regulations 2000 (SI 2000/ 1403). Simple Contribution Limit is £3,600 (before deducting basic rate income tax) each tax year or a different figure set by Treasury Order issued under section 630(1A) of the Act. Minimum contributions as described in (3) of rule 4.7 don't count towards this limit. Special Commissioners means the persons defined in section 4 of the Taxes Management Act 1970. Stakeholder Pension Scheme means a scheme for the time being registered as a stakeholder pension scheme with Opra under section 2 of the Welfare Reform and Pensions Act 1999. State Second Pension means the additional state pension. The additional state pension pre-6 April 2002 was commonly known as SERPS (State Earnings-Related Pension Scheme) but since 6 April 2002 has been known as the 'State Second Pension'. Substitute Member means a dependant or widow or widower of a deceased member of another approved personal pension scheme who transfers benefits in payment through income withdrawal into this scheme in accordance with rules 13.15 and 13.16. Substitute Member's Fund means the value from time to time of those funds transferred into an arrangement from another approved personal pension scheme on behalf of a substitute member in accordance with rule 13.15. Survivor means a dependant or widow or widower of a member who has died. For the avoidance of doubt, an individual who makes an arrangement under the scheme in order to accept a transfer of income withdrawal benefits from another approved personal pension scheme in accordance with rule 13.15 is a substitute member under the terms of these rules, not a survivor (see rule 13.16). Survivor's Fund means the value from time to time of those funds deriving from a member's non-protected rights fund which have been set aside for the purchase of a pension for a particular survivor. Tax Year means a period beginning on 6 April and ending on the following 5 April. Transfer Payments Regulations 2001 means The Personal Pension Schemes (Transfer Payments) Regulations 2001 (SI 2001/119). Any reference to legislation (including regulations) includes any amendment or replacement to the legislation. 3. Members And Arrangements BECOMING A MEMBER 3.1 A person who wants to become a member (or the legal guardian acting for a person under the age of 16, or in England, Wales and Northern Ireland 18 if not in employment, who is to be a member) or substitute member must go through an application procedure, as required by the scheme administrator. The application procedure must include the following declarations : (1) The member (or a legal guardian acting for the member) or substitute member agrees to be bound by these rules. (2) The scheme administrator agrees, on behalf of the provider, to administer the scheme as required by these rules. A person can become a member or substitute member only if he or she is under age 75 (except as permitted by rule 3.4) and if the scheme administrator agrees. 3.2 Where the legal guardian is representing a prospective member under the age of 16 (or in England, Wales and Northern Ireland 18 if not in employment), the legal guardian must give an undertaking that he or she understands that any payments to the scheme can only be used to provide benefits to the member under the rules, and won't be repaid except as permitted by the rules. Affinity Group Provider 3.3 If the scheme has been established by an affinity group then membership of the scheme must be limited the specific employment basis etc. applicable to the affinity group. Ex-Spouse 3.4 Subject to the agreement of the scheme administrator an ex-spouse may become a member of the scheme. An ex-spouse becoming a member of the scheme through this rule may do so after he or she has attained age 75, but must draw benefits immediately (see rule 6.5). Stakeholder Pension Scheme Requirements 3.5 As the scheme is a stakeholder pension scheme an individual must not be refused membership of the scheme on the grounds of : * his or her financial status, or * the amount of contributions he or she is going to make to the scheme (subject to rule 4.16), or * the manner in which the contributions are going to be made (subject to rule 4.11). However, this rule does not prevent the scheme from restricting membership by reference to : * employment with a particular employer, or * individuals participating in a particular trade or profession, or * membership of a particular organisation. MAKING AN ARRANGEMENT Single or Multiple Arrangement(s) 3.6 If the scheme administrator permits a member or substitute member may make : * a single arrangement with the scheme administrator in which case these rules will apply to that arrangement. * more than one arrangement with the scheme administrator. If the member or substitute member does so, these rules, except for those relating to the protected rights fund, will apply to each arrangement separately, but the limits described in rule 4.17 to 4.41 for a member will apply to all the arrangements together. The form of arrangements used in the scheme is described in the schedule to the rules. 3.7 Where the protected rights fund is spread over more than one arrangement the rules governing the protected rights fund must be applied to those arrangements together. Splitting of a Single Arrangement 3.8 An arrangement may later be treated as more than one arrangement if the member chooses for only part of the member's fund to be applied for a pension and (if relevant) a lump sum. Any part of the member's fund for which the member has not yet asked to be applied for benefits will be treated as an arrangement that has not reached pension date. Separate Benefits from Separate Arrangements 3.9 Different arrangements (whether different at the time of being created or whether originating from a single arrangement) may produce separate annuities, income withdrawals or lump sums payable under the rules. Form of Arrangements 3.10 Whether established under trust or not, the arrangements under the scheme will be a contract between the scheme and the member, the legal guardian acting for a person under the age of 16 (or in England, Wales or Northern Ireland 18 if not in employment) where that person is regarded as the member or substitute member. Scheme Rules Override Terms of Arrangements 3.11 Nothing in the terms of an arrangement may conflict with the establishing document of the scheme or these rules unless specifically permitted by the Inland Revenue. 4. Contributions ELIGIBILITY TO MAKE CONTRIBUTIONS Net Relevant Earnings 4.1 A member is eligible to make contributions in a particular tax year if, for any part of the tax year, the member has net relevant earnings. These must be actual earnings. Residency 4.2 If a member does not have net relevant earnings in a tax year, the member is still eligible to make contributions if at any time in the tax year the member was not accruing rights to retirement benefits in an employer's retirement benefits scheme (or relevant statutory scheme) and at least one of the following bullets apply : * The member is resident in the UK at some time in the tax year. * The member has been at some time in the five tax years before the tax year to which the contributions relate resident in the UK, and was so when first making the arrangement. * The member at some time in the tax year performed Crown duties abroad, or was the spouse of an individual who at some time in the tax year performed such Crown duties abroad. These duties are defined in section 132(4)(a) of the Act. 4.3 Rules 4.17 to 4.28 detail the maximum contributions that a member eligible through rule 4.1 or 4.2 may contribute in a given tax year. Concurrency 4.4 An individual who does not qualify to contribute to the scheme under rule 4.1 or 4.2 because he or she is a member throughout the tax year of an employer's retirement benefits scheme or relevant statutory scheme (providing retirement benefits for the individual) is eligible to make contributions to this scheme in that tax year under 'concurrency' rules (section 632B of the Act) if both the following bullets apply : * The member has not been a controlling director of any company in the current tax year or any of the preceding five tax years (disregarding tax years earlier than 2000-01), and * On 5 April of one of the five preceding tax years (disregarding tax years prior to 2000-2001), the member held an office or employment and his or her earnings for that tax year from all employments held on that date did not exceed £30,000, or such other amount as is prescribed, and at least one of the following three bullets applies : * The member is resident in the UK at some time in the tax year. * The member was at some time in the five tax years before the tax year to which the contributions relate resident in the UK, and was so when first making the arrangement. * The member at some time in the tax year performed Crown duties abroad, or was the spouse of an individual who at some time in the tax year performed such Crown duties abroad. These duties are defined in section 132(4)(a) of the Act. For the purpose of this rule earnings means the earnings shown on the member's P60 (that is, the earnings which are subject to PAYE), except that if this figure includes earnings from an employment held on 5 April in a tax year but not held for the full tax year those earnings must be converted to an annual amount. Benefits in kind as entered on form PIID (or its successor) are not included. 4.5 A member eligible to pay contributions in a tax year through rule 4.4 must not contribute in excess of the simple contribution limit in that tax year. This limit applies to the aggregate of any contributions made by the member or on behalf of the member by an employer to this scheme or any other approved personal pension scheme. Rebate Only Schemes 4.6 If the scheme administrator permits, a member of a retirement benefits scheme or relevant statutory scheme, whether or not eligible to contribute to a personal pension scheme through rule 4.4, may still join the scheme solely for the purpose of contracting out of the state second pension. Only contributions within (3) of rule 4.7 may be accepted by the scheme in respect of such a member. PERMITTED CONTRIBUTIONS 4.7 The scheme may accept only the following contributions : (1) Contributions by members, including contributions made on behalf of a member paid by another individual (see rule 4.8). (2) Contributions by the member's employer(s) in respect of the member. (3) Minimum contributions if the member is contracted-out within this appropriate personal pension scheme, together with basic rate tax relief and incentive payments as described in rule 5.1 where the scheme is the member's chosen scheme. Contributions under (1) and (2) above may only be made at a time when the member is eligible to make contributions under rules 4.1, 4.2 or 4.4. An employer may only contribute to the scheme in a tax year when the member has been in service with that employer. 4.8 If the scheme administrator so permits payments may be made by an individual other than the member if the payments are being made on behalf of the member and the member (or, if relevant, the member's legal guardian) is aware of the payment. These payments will be treated as a contribution made by the member (see (1) of rule 4.7). 4.9 When a member's benefit under any arrangement becomes payable no further contributions may be paid to that arrangement unless : * the arrangement has become more than one arrangement under rule 3.8, or * the member is under pensionable age and has not given effect to his or her protected rights fund, and so minimum contributions may continue to be paid. MEMBER CONTRIBUTIONS 4.10 Contributions made by the member or other individual on his or her behalf (see rule 4.8) may only be paid, as the scheme administrator permits : * in money form (cash, cheque, debit card, credit card, standing order, direct debit, direct transfer or via BACS payments), or * as shares from an employee share scheme. 4.11 As a stakeholder pension scheme, the scheme may refuse contributions paid in cash or by debit card or credit card, but must accept payment from a bank or building society account by cheque, direct debit, standing order or via BACS. The scheme must also comply with the conditions of regulation 17 of the SHP Regulations 2000. Employee Share Schemes 4.12 Contributions in the form of shares from an employee share scheme are taken by reference to the market value of the shares at the date of payment. Market value will be arrived at using section 272 of the Taxation of Chargeable Gains Act 1992. 4.13 Contributions from an employee share scheme must be made within ninety days of the member : * opting to receive the shares (if from a savings-related share option scheme under Schedule 9 Finance Act 2000), or * directing the trustees of the employee share scheme to transfer ownership to the member or, if earlier, the release date of the relevant shares (if from either an approved profit-sharing scheme under section 186 of the Act or an employee share ownership plan (or 'share incentive plan') under Schedule 8 of Finance Act 2000). USE OF CONTRIBUTIONS 4.14 The contributions and their proceeds under the scheme must be used to provide benefits in accordance with these rules, except so far as they are used to meet administrative expenses of the scheme and to pay commission. 4.15 As a stakeholder pension scheme all payments received as contributions, transfers, investment returns or pension credit rights must be used to provide benefits. The exceptions to this rule are as described in regulations 13 and 14 of the SHP regulations 2000, which allow, amongst other things, for specified permitted reductions, including a maximum specified charge. MINIMUM SIZE OF CONTRIBUTION 4.16 As a stakeholder pension scheme, the scheme must accept any contribution from a member or employer eligible to make a contribution provided it is at least £20 in value. For a member this figure is the net amount as described in rule 4.32. In the case of a contribution from an employer the figure is gross. The scheme may, but need not, accept a lower sum as a contribution. SIMPLE CONTRIBUTION LIMIT 4.17 A member eligible to pay contributions under rule 4.1, 4.2 or 4.4 may pay contributions up to the simple contribution limit without the need to have net relevant earnings. There is therefore no need for the scheme administrator to see evidence of earnings from the member for such amounts. AGGREGATE CONTRIBUTIONS 4.18 The simple contribution limit applies to the aggregate of all contributions paid in a tax year by the member and the employer(s) of the member to all pension schemes or contracts approved under Chapter IV of Part XIV of the Act. EVIDENCE OF EARNINGS FOR HIGHER CONTRIBUTION LIMIT 4.19 If the member is eligible to contribute under rule 4.1 and a proposed contribution for that member to this scheme will cause the total contributions for that member for that tax year to exceed the simple contribution limit, then evidence of earnings must be produced by the member or the employer to justify the contribution. 4.20 Where evidence of earnings is produced by the member or the employer to the satisfaction of the scheme administrator, the amount of net relevant earnings which results will be used to calculate the higher contribution limit. Basis Year 4.21 Evidence of earnings for a particular tax year will be acceptable for contributions up to the higher contribution limit in that same tax year. The same evidence may also be acceptable to justify contributions up to the higher contribution limit for the five tax years after that tax year even though earnings in those later tax years may be different. The tax year for which evidence of earnings has been produced is called the 'basis year'. 4.22 Evidence of earnings can be produced for a tax year earlier than the current tax year. Such evidence can then be used, if acceptable to the scheme administrator, to justify future contributions for the next five tax years after the tax year of the evidence, or used to justify 'carry back' in accordance with rule 4.29 (i.e. where the evidence is for a tax year to which the contribution is to be carried back). 4.23 The evidence of earnings must be in the form allowed by Inland Revenue Personal Pension Schemes (Relief at Source) Regulations 1988 (SI 1988/1013) as amended by the Personal Pension Schemes (Relief at Source)(Amendment) Regulations 2000 (SI 2000/2315) and satisfy the conditions of those Regulations. CONTINUATION OF CONTRIBUTIONS AFTER CEASING TO HAVE RELEVANT EARNINGS 4.24 Where a member is contributing up to the simple contribution limit only, and does not produce evidence of earnings to justify higher contributions, any continuation of contributions after the member ceases to have actual relevant earnings will be up to the simple contribution limit only. The member or his or her employer may continue to pay contributions so long as he or she continues to be eligible to pay contributions under rule 4.1, 4.2, or 4.4 (and rule 4.7 for the employer). 4.25 But where a member qualifies to pay up to the higher contribution limit and the member ceases to have relevant earnings, the member or employer may still continue to pay or begin to pay contributions up to the higher contribution limit. They may do this for up to five tax years after the tax year during which the member's actual relevant earnings ceased, provided : * the member continues to be eligible to contribute in each tax year through rule 4.2, and * the first tax year where the member has no relevant earnings is either the tax year ending 5 April 2002 or a later tax year. But as stated in rule 4.7 an employer may only contribute to the scheme in a tax year when the member has been in service with that employer. Eligibility to continue contributing up to the higher contribution limit through this rule ceases in any of those five tax years if : * in that tax year the member has relevant earnings again, or * throughout that tax year the member is accruing rights (other than death in service benefits) under a retirement benefits scheme or a relevant statutory scheme. If eligibility through this rule ceases see rule 4.28. 4.26 The higher contribution limit used for the continuation of contributions will be calculated from earlier net relevant earnings as evidenced. New evidence to replace earlier evidence (but still for a tax year up to and including the one during which relevant earnings ceased) may be produced to justify an increased contribution within the higher contribution limit. 4.27 It may be that evidence of earnings has been produced for more than one tax year in the six tax year period ending with (and including) the tax year during which the member's relevant earnings ceased. If so, the member may tell the scheme administrator in writing which year of evidence will apply for the later tax years. 4.28 If eligibility through rule 4.25 to continue contributing in a tax year up to the higher contribution limit ceases an alternative form of eligibility must apply for contributions to continue. Contributions may only be made in that and later tax years on the basis of rule 4.1, 4.2, 4.4 or 4.6, as applicable. Unless rules 4.6 or 4.24 and 4.25 are applicable the maximum contribution that may be made in that and subsequent tax years is calculated under rules 4.17 to 4.23 and 4.29 to 4.31. CARRY BACK OF CONTRIBUTIONS 4.29 Under section 641A of the Act a member who pays a contribution by 31 January in a tax year may elect to have the contribution treated as if paid in the preceding tax year. The member must give notice to the scheme administrator no later than the date the contribution is paid. The member may 'carry back' a whole contribution or part of a contribution. Once actioned, an election cannot be withdrawn. 4.30 'Carry back' under rule 4.29 does not apply to contributions paid by the employer. TOTAL CONTRIBUTIONS LIMIT 4.31 The total contributions paid in a tax year in respect of that member to all approved personal pension schemes and to all retirement annuity contracts and schemes approved under Chapter III of Part XIV of the Act must be within the limit set by the Act. For tax years from 6 April 2001 this limit is for contributing to an approved personal pension scheme, the simple contribution limit or, if greater, any higher contribution limit justified by the member or the employer having produced evidence of earnings to the satisfaction of the scheme administrator and within Inland Revenue Regulations. METHOD OF PAYMENT OF CONTRIBUTIONS 4.32 All contributions made by a member to the scheme are amounts net of basic rate income tax. Therefore when the member makes a contribution to the scheme, the member must reduce the intended amount of the contribution by a figure equal to the amount of basic rate income tax due as relief on the intended amount of contribution. The scheme administrator will recover this figure from the Inland Revenue in accordance with the Personal Pension Schemes (Relief at Source) Regulations 1988 (SI 1988/1013), and add the recovered amount to the member's fund in accordance with these rules. This applies even where the member is not a taxpayer. All contributions paid to this scheme by an employer are treated by the scheme administrator as being gross amounts. Employer contributions must therefore represent the full contribution. REPAYMENT OF CONTRIBUTIONS WHICH EXCEED LIMIT (INCLUDING INELIGIBILITY TO PAY CONTRIBUTIONS) 4.33 The scheme administrator must be reasonably satisfied that the total contributions paid in that tax year in respect of the member are within the limits described in rules 4.17 to 4.32. In applying the limits in these rules, any contribution paid by the member or an employer, calculated by reference to net relevant earnings, will be by reference to the earnings cap. If the scheme administrator discovers that the limit has been exceeded (or if in any case the Inland Revenue tell the scheme administrator that the limit has been exceeded) the scheme administrator must arrange for the contributions which exceed the limit to be repaid to the member and, if applicable, the member's employer(s) as follows : (1) the contributions that exceed the limit will be repaid from the scheme unless the member proves to the scheme administrator that they have been repaid from another scheme or schemes; BUT (2) if the employer has contributed, the employer's contributions won't be repaid unless the member's contributions paid to all approved personal pension schemes in that tax year have been repaid and there are still contributions which exceed the limit remaining. 4.34 Any amount repayable to the member will be the gross contribution before deduction of basic rate income tax, from which the scheme administrator will deduct tax at the same rate as was deducted from the contributions when paid, or deemed to be paid for contributions carried back under section 641A of the Act (see rule 4.29). 4.35 The scheme administrator may use discretion to adjust a repayment of contributions to take account of expenses and interest and of any change in the value of the underlying assets during the intervening period. USING CONTRIBUTIONS TO BUY LIFE INSURANCE 4.36 A member may, if allowed to do so under the scheme, choose (subject to the remainder of this rule and rules 4.37 and 4.38) for all or part of the contributions in respect of him or her (excluding protected payments) to be used by the scheme administrator as premiums on a life insurance contract with an insurer. Such contributions are limited as follows : * For arrangements made on or before 5 April 2001 that included at 5 April 2001 an option to apply for life insurance, the limit is 5% of net relevant earnings in the tax year to which the contribution relates. This limit applies for such arrangements whether the option is exercised before or after 5 April 2001. * For all other arrangements the limit is an amount equal to 10% of the total of all other contributions made to approved personal pension schemes that tax year other than for life insurance (as defined in section 640(3A) of the Act). Within this overall limit, it will be possible, if the scheme administrator agrees, for contributions to this scheme to be for life insurance only, with the other non-life assurance contributions paid to another scheme for the same tax year. For the avoidance of doubt the limits set by this rule are part of (and not in addition to) the overall contribution limit set by the rest of Part 4 of these rules. 4.37 The contract must provide a lump sum to be paid only if the member dies before a specified age (not later than age 75). This lump sum shall be payable in accordance with rule 10, provided that rights to benefits under such a life insurance contract may not be assigned, and (3) of rule 10.1 shall not apply unless this proviso is deleted in the contract documentation in respect of specific arrangements or parts of arrangements. 4.38 In any tax year the total contributions to all approved personal pension schemes and to all contracts and schemes approved under Chapter III of Part XIV of the Act used to purchase life insurance as described in rule 4.36 and 4.37 must be within the limit set by the Act. WAIVER OF CONTRIBUTIONS 4.39 For arrangements made on or before 5 April 2001, a member may, provided such a contract was already in existence at this date, choose for not more than 25% (one quarter) of the contributions paid to the scheme in any tax year for his or her behalf (excluding protected payments) to be paid as premiums to an insurance contract that : (1) enables the contributions that would otherwise have been paid by the member and the employer to be waived if the member becomes unable to follow his or her occupation by reason of incapacity, and for the member's fund to be increased as if the contributions had been paid (and, where appropriate, will allow any insurance contract bought under rule 4.36 to be similarly continued); and / or (2) provides that, if the member's incapacity causes the benefit to start earlier than would otherwise be the case (under rules 6.6 to 6.7), the benefit may be enhanced in a manner and to an extent acceptable to the Inland Revenue. Provided the option is exercisable by the member, not the scheme, this rule also applies to pension contracts in existence on 6 April 2001 that included an option to take out waiver of contribution insurance but where that option had not been exercised at that date. 4.40 Arrangements made on or after 6 April 2001, or any arrangements set up prior to this date not covered by rule 4.39, must not contain the provisions described above in (1) of rule 4.39 but may, if the scheme administrator permits, provide for the provision described in (2) of rule 4.39. 4.41 The schedule to the rules will show whether the provisions in rules 4.39 to 4.40 are available. 5. Protected Payments PROTECTED PAYMENTS 5.1 Special restrictions apply to the following payments to the scheme in respect of the member (the "Protected Payments") and the benefits resulting from those payments : (1) Where the scheme is an appropriate personal pension scheme payment of minimum contributions by the Inland Revenue. These contributions include payment of age-related payments by the Inland Revenue. The age-related rebate in (1) is the contracted-out rebate percentage of the member's earnings between the lower and upper earnings limits; (2) Tax relief paid by the Inland Revenue in respect of the employee's share of the age-related rebate; (3) Transfer payments received under rule 13.11 covering protected rights, section 9(2B) rights or guaranteed minimum pensions under defined benefit occupational pension schemes or under insurance policies or annuity contracts of the type described in section 19 of the Pension Schemes Act, payments secured under section 32A of the Pension Schemes Act arising from the protected rights of a member of an occupational pension scheme being wound up; and (4) Incentive payments under paragraph 22 of Schedule 6 of the Pension Schemes Act and regulation 3(10) of the Personal and Occupational Pension Schemes (Incentive Payments) Regulations 1987 (SI 1987/1115). Allocation of Minimum Contributions 5.2 The scheme administrator shall ensure that all minimum contributions, as described in (1) of rule 5.1, that are received by the scheme are applied with effect from the date of payment and allocated to the protected rights fund of each member, in respect of whom such minimum contributions relate, within three months of the date on which payment of such minimum contributions is made by the Inland Revenue. NON-PROTECTED PAYMENTS 5.3 Any payments other than those specified in rule 5.1 (and the benefits resulting from such payments) are not subject to the restrictions referred to in rule 5.1 unless the scheme documents specifically state otherwise. The scheme assets representing non-protected payments are referred to in these rules as the "non-protected rights fund". USE OF PROTECTED RIGHTS 5.4 The protected payments under rule 5.1 and their proceeds under the scheme must be used to provide the member with money purchase benefits, except so far as they are used to meet administrative expenses of the scheme and to pay commission. The member's rights to these benefits are called "protected rights". The scheme assets representing these protected rights are referred to in these rules as the "protected rights fund". The pension bought with a member's protected rights fund is referred to as the "protected pension". SAFEGUARDED RIGHTS 5.5 The scheme administrator shall make provision for the identification of safeguarded rights. 5.6 Any reference to protected rights fund in these rules should be deemed to include any scheme assets representing these safeguarded rights, unless specifically excluded. Any pension paid from the funds representing safeguarded rights will be applied in the same way as any protected pension in these rules, unless otherwise stated (see rules 7.22, 8.2, 8.10, 9.5, 9.6, 9.15, 9.22 and 9.24). CALCULATION OF PROTECTED RIGHTS FUND 5.7 The value of the member's protected rights fund must be calculated in a way approved by the scheme administrator. It must be at least as favourable as the way in which any other money purchase benefits of the member in the scheme are calculated. It must also be consistent with the requirements set out in the rest of these rules. 5.8 Where the valuation of the protected rights fund involves making estimates of the value of benefits, then the manner of calculation must be approved by an actuary. The methods and assumptions used must be either determined by the scheme administrator, or notified to the scheme administrator by an actuary, and must in either case be certified by an actuary to be consistent with the requirements of the Pension Schemes Act and with "Retirement Benefits Schemes - Transfer Values (GN11)" published jointly by the Institute of Actuaries and the Faculty of Actuaries and current when the calculation is being made. The scheme administrator must keep such records as will enable the amount of the member's protected rights fund to be calculated at any time. 6. Date Member's Benefit Starts MULTIPLE ARRANGEMENTS 6.1 Where the member has made more than one arrangement rules 6.3 to 6.11 apply to each arrangement separately, except in relation to protected rights as explained in rule 3.7. This means that benefits may start separately from each arrangement. SPLIT ARRANGEMENTS 6.2 Where the member has an arrangement that is being 'split' into two arrangements in accordance with rule 3.8 because only part of the member's fund is to be applied for ongoing benefits, rules 6.3 to 6.11 will apply separately to each arrangement. This means that benefits (lump sums, annuities or pensions paid by income withdrawals) may start at different times from each arrangement. PROTECTED PAYMENTS 6.3 Payment of benefit derived from the protected rights fund commences on such a date as has been agreed by the member, but cannot be earlier than his or her 60th birthday nor later than his or her 75th birthday. NON-PROTECTED PAYMENTS 6.4 Subject to rules 6.5 to 6.11, payment of benefit derived from the non-protected rights fund commences on such a date as chosen by the member, but cannot be earlier than his or her 50th birthday nor later than his or her 75th birthday. PENSION CREDIT RIGHTS 6.5 An ex-spouse with pension credit rights who becomes a member of the scheme in accordance with rule 3.4 after his or her 75th birthday must draw benefits immediately. INCAPACITY BELOW AGE 50 6.6 A member's benefit (except for benefits from the protected rights fund) may start earlier than age 50 if the member becomes incapable through infirmity of body or mind of carrying on his or her own occupation or any occupation of a similar nature for which he or she is trained or fitted. 6.7 The scheme administrator must consider suitable medical evidence and must be satisfied that rule 6.6 applies. If the Inland Revenue ask to see such medical evidence, the scheme administrator must produce it for them. 6.8 Pension credit rights of an ex-spouse may not be paid early in accordance with rules 6.6 and 6.7. OCCUPATIONS WITH A LOW RETIRING AGE 6.9 There are certain occupations for which the Inland Revenue recognise an age lower than 50 as being the age at which people in that particular occupation retire. A member in one of these occupations may start to receive benefits (except for benefits from his or her protected rights fund) at any time after he or she reaches the accepted age. But the following conditions apply : (1) The occupation and the age must either be acceptable to the Inland Revenue in accordance with the list published by them for this purpose, or be specifically approved by them. (2) Contributions made to the scheme by reference to the member's net relevant earnings from the specific occupation in question or the simple contribution limit, and the benefits provided by those contributions, will be treated as a separate arrangement from any other contributions made to the scheme by the member or on his or her behalf. 6.10 If a member to whom rule 6.9 applies stops being in the relevant occupation before the benefit becomes payable, he or she must immediately tell the scheme administrator. All contributions to arrangements set up with the low retiring age must then stop. Rules 4.24 to 4.28 won't apply to such arrangements. 6.11 Rules 6.9 to 6.10 don't apply to a member in respect of pension credit rights. 7. Benefit for Member MULTIPLE ARRANGEMENTS 7.1 Where the member has made more than one arrangement under the scheme in accordance with rule 3.6, the rest of Part 7 of these rules applies to each arrangement separately, unless otherwise stated. SPLIT ARRANGEMENTS 7.2 Where the member has an arrangement that is 'split' into two arrangements in accordance with rule 3.8 because only part of the member's fund is to be applied to purchase an annuity or provide income withdrawals then the rest of Part 7 of these rules applies to each separate arrangement, as in rule 7.1. This means that a lump sum may be taken from the newly created arrangement in accordance with rule 7.4, with a further lump sum being drawn from the original arrangement at a later date in accordance with the same rule. PROTECTED RIGHTS FUND 7.3 Where the member's protected rights fund is held in more than one arrangement those funds will be treated as if in one arrangement for the purposes of rules 7.4 to 7.23, as stated in rule 3.7. MEMBER'S CHOICE OF LUMP SUM 7.4 The member may choose to receive a lump sum on pension date. If the member has chosen to receive the benefit from the protected rights fund before other benefits, the member won't be able to receive a lump sum from an arrangement that includes any part of the protected rights fund. Where a lump sum is to be paid the following conditions apply : (1) If the arrangement was made before 27 July 1989 : (a) the lump sum cannot (subject to (3) of this rule 7.4) be more than 25% (one quarter) of the amount, at the time the lump sum is paid, of the member's fund being used to provide benefits for the member under Part 7 of these rules (i.e. excluding any part of the member's fund being used to provide a survivor's pension under Part 8 of these rules); (b) none of the member's protected rights fund may be paid as a lump sum, but the part of the protected rights fund under the arrangement from which the lump sum is to be paid and being used to provide pension for the member under Part 7 of these rules (i.e. excluding, if the benefits from the protected rights fund are being paid at the same time as other benefits, any part of the protected rights fund being used to provide a pension for a widow or widower under Part 8 of these rules) may be included for the purpose of calculating the 25%. (2) If the arrangement was made on or after 27 July 1989 the lump sum cannot (subject to (3) of this rule) be more than 25% (one quarter) of the amount, at the time the lump sum is paid, of the member's non-protected rights fund held within that arrangement. (3) If a certificate as described in (4) of this rule is held by the scheme administrator in respect of a transfer payment that had its origins wholly or partly in a source described in (2), (3) and (5) of rule 13.1 then for the purposes of (1) and (2) of this rule there shall be excluded from the member's fund the accumulated value of that part of any transfer payment. If no such certificate was required at the point of transfer then the accumulated value of the transfer payment should be included for the purposes of (1) and (2) of this rule. (4) If on receipt of a transfer from a source described in (2), (3) and (5) of rule 13.1 a lump sum certificate was provided to the scheme administrator the member may only receive as a lump sum so much of the accumulated value of that transfer payment as has been certified as payable in that form. If the total amount of such a transfer is certified as non-commutable then no lump sum may be paid from the accumulated value of the transfer payment. Any amount specified on a certificate may be enhanced in line with the increase in the Retail Prices Index between the date of transfer from that source to the date that benefits are paid from the member's fund. If the certificate relates to benefits transferred from another approved personal pension scheme that were previously transferred to that scheme from a source as described in (2), (3) and (5) of rule 13.1, and that original transfer took place before 6 April 2001, then account should be taken of any enhancement by the Retail Prices Index already built in to the figure quoted on the certificate for the period that transfer payment was held in that other approved personal pension scheme. In no circumstances, however, may the lump sum paid under this rule 7.4 exceed the 25% limit set under section 635 of the Act. Second Lump Sum 7.5 Exceptionally, where the Inland Revenue permit, a second lump sum may be paid from an arrangement to supplement the lump sum paid on pension date. The only circumstances where the Inland Revenue will permit such a payment are where : * there has been misselling of an approved personal pension scheme within the former Securities & Investments Board review and benefits are already in payment, or * following a court ruling a court orders the scheme administrator to recalculate benefits. This may also apply to rulings by Employment Tribunals or the Pension Ombudsman that benefits were calculated illegally. Pension Sharing Order 7.6 Where a pension sharing order is made against a member already subject to a lump sum certificate detailed in (4) of rule 7.4 then the scheme administrator shall re-calculate the amount shown on the certificate to take into account any pension debit that arises as a result of that order or provision, as required by regulation 13(1) of the Transfer Payments Regulations 2001. Pension Credit Rights 7.7 Where the original transfer payment has been certified as non-commutable then the scheme administrator must similarly certify any pension credit arising from that transfer payment due a pension sharing order, as required by regulation 13(2) of the Transfer Payments Regulations 2001. MEMBER'S PENSION 7.8 Except for any lump sum paid as described in rule 7.4 the member's fund will be used to secure a pension for the life of the member through the purchase of an annuity from an insurer. That pension must start on the date chosen in accordance with (or required by) Part 6 of these rules (pension date). If the scheme permits, the purchase of such an annuity may be deferred in accordance with rules 7.24 to 7.37. 7.9 An annuity must be purchased no later than the member's 75th birthday. 7.10 The annuity must pay an income for the life of the member not less frequently than annually and must conform with the requirements laid down in section 634 of the Act. The annuity contract may also provide benefits to any survivor on the death of the member in accordance with rule 8.1. If so the annuity to the survivor must also conform with the requirements of section 636 of the Act. Protected Rights Fund 7.11 The pension bought with a member's protected rights fund must be one offered without regard to the sex of the member either in making the offer or in calculating the amount of the pension. Protected rights can be used to purchase a single life annuity provided that the member is unmarried at the time protected rights are effected. 7.12 Safeguarded rights arising from benefits accrued in pre-6 April 1997 tax years will be treated as post-5 April 1997 rights for determining the type of pension that must be purchased. MEMBER TAKING EARLY BENEFIT - PROTECTED RIGHTS FUND 7.13 If the member's pension starts before age 60, the protected rights fund won't be used immediately. It will be used at or after age 60. In this case the appropriate parts of Part 7 of these rules will apply separately to the protected rights fund. But, if the member dies between the date the pension starts and the date the protected rights fund is used Part 11 of these rules will apply. MEMBER'S RIGHT TO CHOOSE INSURER : OPEN MARKET OPTION Open Market Option 7.14 The member has the right to choose the insurer from which an annuity is to be purchased. Once the member has chosen the insurer, he or she must write to tell the scheme administrator which insurer he or she has chosen. 7.15 If the member has chosen the insurer to provide a pension from the protected rights fund, he or she must notify the scheme administrator at least one month, but not more than six months, before the date the pension is due to start. If the member agrees to the benefit starting at a later date than age 60, the time during which he or she can write to tell the scheme administrator of the choice of insurer is different. In this case it is any time from the date on which he or she agrees to a later date up to one month before that later date. If there is less than one month between the two dates, then he or she can only choose an insurer by telling the scheme administrator so in writing on the same day as he or she agrees to the later date. With non-protected rights funds the scheme administrator may apply different time limits to those detailed above and allow a member a longer period in which to make his or her choice of insurer. Scheme Administrator's Choice 7.16 If the member does not choose an insurer by writing to tell the scheme administrator by the latest date permitted under rule 7.15 or rule 7.24 the scheme administrator will choose an insurer from whom the annuity will be bought. FORM OF PENSION 7.17 Rules 7.20 to 7.22 and also Part 8 of these rules set out benefits which may, if available under the scheme, (or in the case of a member with a protected rights fund must in some circumstances) be paid by an annuity on the member's death. Where these rules allow alternatives, a member who opts under rule 7.14 to choose the insurer from which the annuity is to be purchased may at the same time choose which of the alternatives detailed in the aforementioned rules apply under the terms of the annuity. If the insurer is chosen by the scheme administrator through rule 7.16, the scheme administrator may still allow the member to choose what benefits the annuity will provide on his or her death. Alternatively the scheme administrator may choose the alternatives. 7.18 Any survivor's pension secured through annuity purchase with a member's protected rights fund must be bought, together with the member's pension from the protected rights fund, as a single contract with one insurer. 7.19 Any other survivor's pension will be secured through an annuity at the same time as the member's pension bought with the member's non-protected rights fund. If the scheme administrator permits, the survivor's pension may be secured from a different insurer than the one providing the member's annuity, chosen either by the member or by the wife or husband or dependant for whom the survivor's pension is being bought. MINIMUM PAYMENT GUARANTEE Non-Protected Rights Fund 7.20 Subject to rule 7.22, the member's pension may (but need not) be guaranteed under the terms of the annuity for a period not exceeding ten years. If the member dies during the guarantee period, it may be paid for the rest of the period to another individual, or to the estate of the member or of another individual who dies after the member (and the recipient may vary from time to time). 7.21 Where the pension continues and is payable to another individual it may either continue for the full guarantee period in any event, or be arranged so as to stop if at any time the individual to whom it is being paid marries, reaches age 18 or leaves full-time educational or vocational training after reaching age 18. Protected Rights Fund 7.22 The following special restrictions apply to any guarantee on the protected pension : (1) The guarantee period may be for up to five years only. This restriction does not apply to a pension derived from safeguarded rights (which is bound by rules 7.20 and 7.21). (2) If there is a pension for a widow or widower, or other survivor, included with the protected pension (as described in rule 8.2) which becomes payable on the member's death, the guarantee may only take effect by increasing that pension up to the amount of the member's protected pension for any part of the guarantee period. If the pension stops during the guarantee period on the death of the person entitled to it under rule 8.2, or because the last dependent child entitled to it under that rule dies or reaches age 18, the payments for the rest of that period may be made to another individual, or to the estate of the member or of another individual who dies after the member (and the recipient may vary from time to time). RESPONSIBILITY OF THE SCHEME ADMINISTRATOR 7.23 It is the responsibility of the scheme administrator to ensure that any annuity purchased by the scheme conforms with these rules and the requirements laid down by the Act. ANNUITY DEFERRAL 7.24 At the scheme administrator's discretion, the member may choose under an arrangement to defer securing his or her pension benefit through the purchase of an annuity (other than the pension to be purchased with the protected rights fund) as specified in rule 7.8 and draw his or her pension direct from the member's non-protected rights fund at pension date in accordance with rules 7.26 to 7.37. If the member chooses this option he or she must notify the scheme administrator in writing no later than one month before the date benefit is to start. The member shall also notify the scheme administrator in writing when he or she wishes the deferral to end and an annuity to be purchased, again providing at least one month's notice. 7.25 Where the member chooses to defer annuity purchase in accordance with rule 7.24 the whole of the member's non-protected rights fund must still be used to secure pension benefits through an annuity contract before the member's 75th birthday, as detailed in rule 7.9. Rules 7.10 and 7.14 to 7.21 and 7.23 still apply to the annuity purchased. INCOME WITHDRAWAL 7.26 Where the member chooses to defer annuity purchase through rule 7.24 he or she must draw from the member's non-protected rights fund (excluding any lump sum paid under rule 7.4) a yearly pension as income withdrawals in accordance with rules 7.28 to 7.37. No income withdrawals shall be made after the member attains the age of 75. Once income withdrawals stop, the pension must continue through an annuity under rule 7.8 (see rule 7.24). 7.27 If the scheme administrator permits, the member may, whilst drawing income withdrawals from an arrangement, use part of the member's non-protected rights fund to secure a pension through annuity purchase whilst continuing to draw income withdrawals from the remainder of the member's non-protected rights fund in accordance with rule 7.26. If this option is taken rules 7.34 and 7.35 must be adhered to. INCOME WITHDRAWAL LIMITS 7.28 The (aggregate) amount of income withdrawal(s) drawn from an arrangement in each of the three successive periods of twelve months beginning with pension date shall not exceed the amount of pension purchasable on that date calculated by reference to : * the amount of the member's non-protected rights fund (excluding any lump sum paid under rule 7.4), and * the current published tables of annuity rates prepared for this purpose by the Government Actuary's Department. Such income withdrawals shall not be less than 35% of the pension so calculated. This minimum limit shall not apply for the twelve month period during which all of the member's non-protected rights fund is used to secure an annuity or the member dies. These limits will be reviewed in accordance with rules 7.31 to 7.35. This rule equally applies to an arrangement created through the splitting of an existing arrangement as permitted through rule 3.8. 7.29 Where the member is drawing income withdrawals through rule 7.24 from more than one arrangement under the scheme (whether through rule 3.8 or not) the conditions detailed in rule 7.28 will still apply. However, if arrangements are grouped for review purposes as described in rule 7.32, the result may be that a recalculation under that rule is due in one or more of the arrangements in the group before the expiry of a period of twelve months for the purpose of this rule. Where this happens, the same maximum and minimum limits of income withdrawals will still apply to the shortened period as if it had been twelve months. Purchase of an Annuity with Part of the Member's Non-Protected Rights Fund - Limits 7.30 Where part of the member's non-protected rights fund is used to purchase an annuity in accordance with rule 7.27 the minimum and maximum income withdrawal limits applying to the twelve month period in which the purchase took place (as required by rule 7.28) are not altered. However, the purchase of such an annuity may lead to an additional review of those limits for any subsequent twelve month period(s) which fall prior to the next review as prescribed by rule 7.31 or 7.32 (see rules 7.34 and 7.35). RECALCULATION OF INCOME WITHDRAWAL LIMITS 7.31 The maximum and minimum annual income withdrawals for each period of three years succeeding the first such period starting from pension date shall be calculated by reference to the amount of the member's non-protected rights fund remaining on the first day of each period and the Government Actuary's Department's annuity rate tables current at that date. Grouping of Review Dates Where the Member has Multiple Arrangements 7.32 Where the member is drawing income withdrawals from more than one arrangement under the scheme and the date for review of the income withdrawal minimum and maximum limits under rule 7.31 are different, those review dates may be grouped if the scheme administrator so permits. Under this option : * instead of a three year period as described in rule 7.31 the maximum and minimum income withdrawals for arrangements within the group can be re-calculated (except for the initial review for each arrangement on its respective pension date) by reference to the next review date for the arrangement within the group with the earliest pension date (i.e. the arrangement where income withdrawals commenced first). Any part twelve month period created at the end of a review period due to the operation of this rule should be treated in accordance with rule 7.29. * the next recalculation will then take place three years after that date and at the end of each succeeding three year period thereafter until all of the member's non-protected rights fund has been used to purchase an annuity. These review dates will continue even if income withdrawal payments cease due to annuity purchase from the arrangement to which the other arrangements in the group are linked to for the purpose of this rule. * any grouping of arrangements as described in this rule should only take place with the agreement of the member. Sixty Day Window for Review 7.33 If the member wishes and the scheme administrator allows, the limit calculation made in accordance with rules 7.31 and 7.32 may be made at any time within sixty days ending on the date the calculation is due to be made in accordance with the requirements of those two rules. But the calculation made will be applied as if it had taken place on the due date. The next recalculation will then be due to take place at the end of the next three year period. This rule does not apply to the calculation due on pension date as detailed in rule 7.28, nor any re-calculation that occurs due to the operation of rules 7.34 and 7.35. Purchase of an Annuity With Part of the Member's Non-Protected Rights Fund - Recalculation 7.34 Where a member chooses under rule 7.27 to use part of the member's non-protected rights fund to purchase an annuity there will be no effect on the review process as detailed in rules 7.28 to 7.32 unless that purchase comes within the definition of a 'qualifying annuitisation' as defined in section 634A of the Act. Such a purchase will meet that definition if it occurs in a twelve month period for the purposes of rule 7.28, 7.29, 7.31 or 7.32 that is not immediately followed by a review of minimum and maximum income withdrawal limits upon application of those rules. 7.35 Where the purchase is a 'qualifying annuitisation' for the purposes of section 634A of the Act then on the same day of purchase a new review of the minimum and maximum income withdrawal limits must be undertaken by the scheme administrator. The current annuity rate as taken from the tables detailed in rule 7.28 should be used by reference to the remaining part of the member's non-protected rights fund immediately following the annuity purchase. This review has no effect on the timing of the next twelve month periods or subsequent review dates as detailed in rules 7.28 to 7.32. However, the limits calculated by the scheme administrator must be applied for the next one or two twelve month periods due before the next formal review, as required through rule 7.28, 7.31 or 7.32, in replacement of the earlier limits calculated at the last formal review or initial calculation at pension date. Pension Credit Rights 7.36 Where a member is in receipt of income withdrawals from an arrangement (or arrangements) and a pension sharing order is subsequently made against that member then the scheme administrator must prepare and sign a certificate in respect of any pension credit arising from the arrangement (or arrangements) in question showing that no amount may be paid out of the pension credit by way of lump sum to the ex-spouse, as required by regulation 13(3) of the Transfer Payment Regulations 2001. 7.37 The limits imposed through the operation of the rest of Part 7 of these rules on the level of income withdrawal payable from the arrangement (or arrangements) in question are not altered by the reduction of the member's non-protected rights fund(s) concerned due to the pension sharing order. Nor is a review of those limits triggered. The income withdrawal limits will next be reviewed as prescribed by rules 7.31 to 7.35. Application of Scheme Choices 7.38 If the scheme was approved on or after 1 October 2000, the scheme administrator may offer the following choices to members : * a three year review system for each arrangement, in accordance with rule 7.31, or * a grouping facility where the review dates under an arrangement are linked to the review date of the earliest arrangement paying income withdrawals to the member under the scheme, in accordance with rule 7.32, and also * the option of making the income withdrawal limit calculation within the sixty day period detailed in rule 7.33. 7.39 If the scheme was approved before 1 October 2000, the scheme administrator may have opted to use the grouping facility and sixty day period described in the second and third bullets in rule 7.38. Where the scheme administrator chooses to include these options, they may be applied to all arrangements, whether set up before, on or after 1 October 2000. If the scheme administrator chooses not to include these options, rule 7.31 will apply to the scheme. 7.40 For all schemes, whether approved before, on or after 1 October 2000, the exact options open to a member in each individual case will be prescribed by the terms of each arrangement as agreed by the scheme administrator. 8. Member Dies After Benefit Starts MEMBER'S CHOICE 8.1 Subject to rules 8.2 to 8.10 a member may elect when an annuity is purchased that, in addition to the pension being provided for the member, the annuity contract will also provide for a pension after the member's death for : * the widow or widower; and / or * one or more dependants. PROTECTED RIGHTS FUND - RESTRICTIONS 8.2 The protected pension : * must include a pension payable on the member's death to any widow or widower, if such a person exists when the annuity is purchased. It must not include a pension for any other survivor if there is a widow or widower. * may (but need not) also include a survivor's pension if there is no widow or widower. In this case the survivor's pension must be payable either : - to any one dependant; or - for the benefit of any dependent child or dependent children. The child(ren)'s pension will be paid only so long as at least one dependent child is under age 18. The restrictions on the protected pension under this rule don't : * affect the member's choice under rule 8.1 for the rest of his or her pension, or * apply to any pension purchased from any safeguarded rights. A pension need not be provided for a widow or widower if the member is single at the time that an annuity is bought. When a survivor is entitled to a pension derived from both the member's protected pension and non-protected rights fund then the provisions in the rest of Part 8 of these rules as to the commencement and ceasing of those pensions apply to each pension separately. AMOUNT OF PENSION 8.3 Subject to rule 7.22, the protected pension payable to the widow or widower will be half the amount that would have been payable if the member had survived. Any protected pension paid to any other survivor won't be more than half the amount that would have been payable if the member had survived. Where there is a mixture of pre-6 April 1997 and post-5 April 1997 protected rights, the effect as stated in rule 8.2 may be a protected pension of less than half. Pensions which are not protected pensions can be of any amount so long as the aggregate annual amount of all annuities paid to any survivors under an arrangement (excluding any annuity paid to a survivor as a result of a guarantee on the member's annuity) is no more than the annual amount of the annuity actually being paid to the member at the date of death, after deducting any pension debit (where relevant). START OF SURVIVOR'S PENSION 8.4 Subject to rule 8.12, a survivor's annuity will start as soon as practicable after the member dies, except that a widow or widower who is under age 60 when the member dies may choose, if the scheme administrator permits, for the annuity to start at any later time up to his or her 60th birthday (or, if he or she is receiving continued payments of the member's annuity for a guarantee period ending after his or her 60th birthday, at the end of the guarantee period). A widow or widower may not, however, do this with any survivor's annuity included with the member's annuity bought with the protected rights fund (as described in rule 8.2). Where the survivor's annuity is not being deferred in accordance with this rule the annuity payments should be backdated to the date of death of the member. DURATION OF CHILD(REN)'S PENSION 8.5 A pension provided for a dependent child (or dependent children) included with the annuity bought with the member's protected rights fund will stop when there is no longer any dependent child under age 18. Any other pension payable to a person who is a dependant solely because that person is under age 18 when the member dies must also stop when the dependant reaches age 18, except that it may (but need not) continue after that age for so long as the dependant stays in full-time educational or vocational training. DURATION OF WIDOW'S OR WIDOWER'S PENSION 8.6 The widow or widower's pension included with the annuity bought with a member's protected rights fund will continue for life unless provision is made for it to stop if the widow or widower remarries before reaching pensionable age. DURATION OF OTHER SURVIVOR'S PENSION 8.7 A survivor's annuity that is not covered by rules 8.5 or 8.6 may be paid for the survivor's life or may stop if the survivor marries. MINIMUM PAYMENT GUARANTEE - SURVIVOR'S PENSION 8.8 A survivor's annuity may (but need not) be on terms that it will in any event be paid for a guarantee period not exceeding ten years. Then, if the annuity would have stopped in accordance with rules 8.5 to 8.7, it may be paid for the rest of the guarantee period to another individual, or to the estate of the member or of another individual who dies after the member (and the recipient may vary from time to time). 8.9 Where the annuity continues and is payable to another individual it may either : * continue for the full guarantee period in any event, or * be arranged so as to stop if at any time the individual to whom it is being paid marries, reaches age 18 or leaves full-time educational or vocational training after reaching age 18. 8.10 Rules 8.8 and 8.9 don't apply, however, to a survivor's pension included in the annuity bought with a member's protected rights fund (other than safeguarded rights). The member's annuity itself, however, may be guaranteed as described in rule 7.22. LUMP SUM PAYABLE DIRECT BY INSURER 8.11 If any lump sum is payable under a life insurance contract as described in rules 4.36 and 4.37, it will be paid direct by the insurer to the scheme administrator. It won't form part of the member's fund, but it will be applied separately by the scheme administrator as described in Part 10 of these rules. DEATH OF MEMBER DURING ANNUITY DEFERRAL PERIOD 8.12 A member may choose that, in the event of his or her death after electing to defer the purchase of his or her annuity under rule 7.24 but before all the member's fund has been used to buy an annuity, the member's non-protected rights fund should be applied to or for the benefit of one or more survivors. If the member does not choose the scheme administrator may (but need not) choose that the member's non-protected rights fund should be applied to or for the benefit of one or more survivors. Each survivor so chosen may choose to receive his or her survivor's fund by : (1) the securing of a pension through annuity purchase either immediately, or following a period of deferral during which income withdrawals shall be made from the arrangement(s) in accordance with rules 9.28 to 9.37, or (2) payment of the survivor's fund as a lump sum. Pension payments under (1) above should come into payment as soon as possible after the member's death. Where an annuity is being provided annuity payments should be backdated to the date of death of the member. Where income withdrawals are being provided income withdrawal payments must start with effect from the date of death of the member (see rule 9.33). Any decision to defer annuity purchase and take income withdrawals under (1) above must therefore be taken within a year of the member's death to ensure that the limits in rule 9.33 are adhered to. If there is more than one : * survivor then benefits may be paid to each survivor in different forms under this rule, whether within the same arrangement or not. * arrangement within the scheme from which a survivor is entitled to benefits then, if the scheme permits, different forms of benefits may be paid to the survivor from each arrangement. 8.13 The total of all survivors' pensions paid immediately through an annuity must not be more than the highest amount of pension that the member could have purchased the day before he died, as required by section 636(3) of the Act. Any restriction of a survivor's pension required by section 636(3) will be deemed to have been achieved by a corresponding reduction of the survivor's fund in the event that the survivor chooses a period of deferral during which income withdrawals are made (in accordance with option (1) under rule 8.12). Any part of the member's fund that cannot be used to buy survivor annuities will be used by the scheme administrator to meet general administration expenses of the scheme. Income Withdrawal 8.14 The option to defer annuity purchase under option (1) of rule 8.12 and take income withdrawals shall not be available to any survivor who chooses under rule 8.4 to defer receiving a pension or who has already attained the age of 75. 8.15 Where a survivor draws income withdrawals from an arrangement under option (1) of rule 8.12 the pension must be secured through the purchase of an annuity by the earlier of : * the survivor's 75th birthday, or * the date the member would have reached his or her 75th birthday. If the survivor is already over age 75 an annuity must be purchased immediately. 8.16 Any survivor in receipt of income withdrawals under option (1) of rule 8.12 may nevertheless choose option (2) at any time within the two years following the death of the member. 8.17 No survivor may be paid any income withdrawals after ceasing to be entitled to a pension under rules 8.5 or 8.7. Subject to rules 8.16 and 8.21, any survivor's fund remaining at the date of such cessation will be used to meet general administrative expenses of the scheme. Annuity Purchase 8.18 Where the survivor's fund is to be used to purchase an annuity under option (1) of rule 8.12, whether immediately or after a period of deferral, then the survivor may choose which insurer the annuity is purchased from as stated in rules 9.8 to 9.10. 8.19 Where the survivor is receiving income withdrawals from an arrangement in accordance with option (1) of rule 8.12 he or she may, if the scheme administrator permits, choose to purchase an annuity with only part of the survivor's fund held in that arrangement as in rule 9.31. Lump Sum 8.20 Where the member's non-protected rights fund is not to be applied to or for the benefit of one or more survivors in accordance with rule 8.12, it shall be paid as a lump sum in accordance with rule 9.25. Death of Survivor During Annuity Deferral Period 8.21 If a survivor who has chosen under option (1) of rule 8.12 to draw a pension through income withdrawals dies before an annuity is purchased, the survivor's fund held in the arrangement shall be paid as a lump sum in accordance with rule 9.25. For the purposes of this rule 8.21 the word 'member' in rule 9.25 shall be read as 'survivor'. Deduction of Tax 8.22 Payment of a lump sum under rules 8.12 or 8.21 shall be made after deduction of tax at the rate specified in section 648B(2) of the Act. 9. Member Dies Before Benefit Starts MEMBER'S CHOICE 9.1 If allowed to do so under the scheme a member may choose that, if he or she dies before pension date, the member's fund will be used to either : (1) secure a survivor's pension through the purchase of an annuity from an insurer (that is a pension for the widow or widower, and / or one or more dependants), or (2) pay a lump sum under rule 9.25 and, if applicable, rule 9.24. If the member does not make a choice under this rule and there is a survivor then the scheme administrator may decide how the member's fund should be used in accordance with this rule. Annuity payments under (1) above should come into payment as soon as possible following the member's death. Annuity payments should be backdated to the date of death of the member. 9.2 Alternatively the scheme administrator may allow any survivor to defer any annuity purchase as detailed in rule 9.1 and draw a pension from their survivor's fund through income withdrawals, as specified in rules 9.27 to 9.37. Income withdrawal payments must start with effect from the date of death of the member (see rule 9.33). Any decision to defer annuity purchase and draw income withdrawals under this rule must therefore be taken within a year of the member's death to ensure that the limits detailed in rule 9.33 are met. 9.3 Where the member's fund includes funds derived from a transfer payment from a source described in (2), (3) or (5) of rule 13.1 then, if the scheme administrator permits, the benefits paid from those funds don't need to be in the same form as the benefits paid from the rest of the member's fund. Any lump sum paid from such funds must be restricted if rule 13.17 is relevant. 9.4 If the member holds any protected rights fund in the scheme, rules 9.5 to 9.7 override any choice made by the member under rule 9.1. PROTECTED RIGHTS FUND - COMPULSORY 9.5 If a member with a protected rights fund dies before pension date, the scheme administrator must take reasonable steps to find out whether the member is survived by a widow or widower. If the member is not survived by a widow or widower benefits should be paid in accordance with rule 9.24. This rule does not apply to safeguarded rights. Benefits can be paid from safeguarded rights in accordance with rule 9.24 whether the member is survived by a widow or widower or not. 9.6 If the scheme administrator discovers that the member is survived by a widow or widower, then, as soon as practicable, the member's protected rights fund must be used to buy the widow or widower a pension through an annuity contract unless the scheme administrator decides to pay a lump sum under rule 9.15. The rest of the member's fund (if any in that arrangement) must be used, either to buy further pension for the widow or widower or to buy a pension for another survivor of the member. If the member has not chosen the recipient or recipients, the scheme administrator may do so. If the scheme administrator permits, this requirement need not apply to any non-protected rights held in the arrangement derived from a transfer payment from a source listed in (2), (3) or (5) of rule 13.1, and a lump sum may be paid from these funds in accordance with rule 9.25 (subject to rule 13.17, if relevant) even though the rest of the member's fund must be used to provide survivor benefits in accordance with this rule. This rule does not apply to safeguarded rights. Safeguarded rights may be used to buy a survivor's pension, but there is no requirement to do so (see rules 9.5 and 9.24). 9.7 When a survivor has an annuity, part of which is bought using the member's protected rights fund and part of which is not, the provisions in Part 9 of the rules about the permissible dates for the pension to start and to stop apply to each part separately. MEMBER'S OR SURVIVOR'S CHOICE OF INSURER 9.8 If the provider is not an insurer and the member has notified the scheme administrator that he or she wishes the pension to be secured from a particular insurer, then (except in the case of a pension payable to a widow or widower from the member's protected rights fund) the scheme administrator must buy the annuity from that insurer. 9.9 In any other case where the provider is not an insurer, the scheme administrator must write and tell the survivor that he or she has the right to choose an insurer. The survivor then has three months from the date of notification to write back and tell the scheme administrator which insurer he or she has chosen. If the survivor chooses an insurer, he or she may at the same time decide whether any of the options in rules 9.19 to 9.23 will apply to the pension provided by the annuity. 9.10 Where the provider is an insurer, the provider may either provide the annuity themselves but the member or survivor may choose which insurer the annuity is purchased from, as detailed above in rules 9.8 and 9.9. SCHEME ADMINISTRATOR'S CHOICE 9.11 Subject to rule 9.27, if a member or survivor does not choose which insurer the annuity is purchased from by writing to tell the scheme administrator by the latest date permitted under rules 9.9 and 9.10 then the scheme administrator will choose the insurer and will decide which of the alternatives in rules 9.16 to 9.23 will apply to the pension. MAXIMUM AMOUNT OF PENSION 9.12 The total of all survivors' pensions under Part 9 of these rules must not be more than the highest amount of pension that the member could have purchased the day before he died (assuming that he or she would not have taken any lump sum under rule 7.4), as required by section 636(3) of the Act. Any restriction of a survivor's pension required by section 636(3) will be deemed to have been achieved by a corresponding reduction of the survivor's fund in the event that the survivor chooses to defer annuity purchase in accordance with rule 9.2. Any part of the member's fund that cannot be used to buy survivors' pensions will be used by the scheme administrator to meet general administration expenses of the scheme. START OF SURVIVOR'S PENSION 9.13 The purchase of a survivor's annuity must occur as soon as practicable after the member dies, unless the survivor is : * deferring annuity purchase under rule 9.27, or * a widow or widower who is under the age of 60 when the member dies and chooses to defer the annuity as permitted by rule 9.14. As explained in rule 9.1 where the survivor's annuity is not being deferred the annuity payments should be backdated to the date of death of the member. 9.14 A widow or widower who is under the age of 60 when the member dies may choose to defer all pension benefits to any later time up to his or her 60th birthday. The option in this rule to defer annuity purchase does not apply to any widow or widower's pension bought with the member's protected rights fund (as described in rules 9.5 to 9.7). LUMP SUM INSTEAD OF SMALL PENSION 9.15 If there is a surviving widow or widower and the pension from the member's fund which includes any protected rights fund would not be more than £260 per annum (or such greater amount as may be prescribed by Regulations made under sections 28 and 28A of the Pension Schemes Act and is permitted by the Inland Revenue) the scheme administrator may pay the cash value of the fund as a lump sum instead. The scheme administrator may not do so if the member had other rights under the scheme (i.e. from all arrangements) when the member died which are not being satisfied by a lump sum. This rule is not relevant to safeguarded rights. DURATION OF CHILD'S PENSION 9.16 A pension payable to a person who is a dependant solely because that person is under age 18 when the member dies must stop when the dependant reaches age 18, except that it may (but need not) continue after that age for so long as the dependant stays in full-time educational or vocational training. DURATION OF WIDOW'S OR WIDOWER'S PENSION 9.17 The pension bought with a member's protected rights fund will continue until the death of the widow or widower unless provision is made for it to stop if the widow or widower remarries before pensionable age. DURATION OF OTHER SURVIVOR'S PENSION 9.18 A survivor's pension that is not covered by rule 9.16 or 9.17 must be paid for the survivor's life, although it may stop if the survivor marries. WIDOW'S OR WIDOWER'S PENSION CONTINUING TO A CHILD 9.19 A survivor's pension bought with a member's protected rights fund for a widow or widower may (but need not) be on terms that, if the widow or widower is still receiving a pension when she or he dies and leaves a dependent child (or dependent children), the pension will continue for the benefit of that child or those children. The amount paid as pension(s) for the child(ren) won't be more than the widow's or widower's pension would have been if he or she had survived. It will continue to be paid only so long as at least one dependent child is under age 18. MINIMUM PAYMENT GUARANTEE Non-Protected Rights Fund 9.20 A survivor's pension bought with a member's non-protected rights fund may (but need not) be on terms that it will in any event be paid for a guarantee period not exceeding ten years. Then, if the pension would have stopped in accordance with rule 9.16 or 9.17, it will be paid for the rest of the guarantee period to another individual, or to the estate of the member or of another individual who dies after the member (and the recipient may vary from time to time). 9.21 Where the pension continues and is payable to another individual it may either continue to be payable for the full guarantee period in any event, or be arranged so as to stop if at any time the individual to whom it is being paid marries, reaches age 18 or leaves full-time educational or vocational training after reaching age 18. Protected Rights Fund 9.22 The pension bought with a member's protected rights fund may (but need not) be on terms that it will be paid for a guarantee period up to five years from its commencement. Then if, within that guarantee period, the widow or widower dies or the pension would have stopped in accordance with rule 9.19, the pension will be paid for the rest of the guarantee period to another individual, or to the estate of the member or of another individual who dies after the member (and the recipient may vary from time to time). The five year restriction under this rule does not apply to any annuity purchased with a member's safeguarded rights. Such an annuity may be guaranteed for up to ten years, as in rule 9.20. 9.23 Where the pension continues and is payable to another individual it may either continue to be payable for the full guarantee period in any event, or be arranged so as to stop if at any time the individual to whom it is being paid marries, reaches age 18 or leaves full-time educational or vocational training after reaching age 18. PROTECTED RIGHTS FUND - LUMP SUM 9.24 If a member with a protected rights fund dies and either : (1) the scheme administrator decides after making reasonable enquiries that the member died without leaving a widow or widower; or (2) the widow or widower dies before the pension is bought, then, provided that no pension has become payable to another survivor, the scheme administrator may, either as soon as practicable, or in any event subject to rule 9.26, pay the value of the member's protected rights fund in accordance with any direction given by the member in writing or to the member's estate. If a pension has become payable under rule 9.1, the member's protected rights fund must be used to buy survivors' pensions. Such pensions may (but need not) be on terms that they will be paid for any period not exceeding ten years. Safeguarded rights may be paid under this rule without (1) or (2) above being satisfied. NON-PROTECTED RIGHTS FUND - LUMP SUM 9.25 If a member dies and no survivor's pension has become payable under rules 9.1, 9.2 or 9.6, then the scheme administrator may, as soon as practicable and subject to rule 9.26, pay out the member's fund (other than any protected rights fund) as a lump sum : (1) in accordance with any specific provision regarding payment of such sums under the contract(s) applying to the arrangements in question; or (2) if (1) is not applicable and at the time of the member's death the scheme administrator is satisfied that the contract is subject to a valid trust under which no beneficial interest in a benefit can be payable to the member, the member's estate or the member's legal personal representatives, to the trustees of the trust; or (3) if (1) and (2) are not applicable, at the discretion of the scheme administrator, to or for the benefit of any one or more of the following in such proportions as the scheme administrator decides : (a) any person, charity, association, club, society or other body (including trustees of any trust whether discretionary or otherwise) whose names the member has notified to the scheme administrator in writing prior to the date of the member's death; (b) the member's surviving spouse; (c) the parents and grandparents of the member or the member's surviving spouse and any children and remoter issue of any of them; (d) the member's dependants; (e) any person, charity, association, club, society or other body entitled under the member's will to any interest in the member's estate; (f) the member's legal personal representatives. For this purpose a relationship acquired by legal adoption is as valid as a blood relationship. LUMP SUM PAYABLE BY SCHEME ADMINISTRATOR - TIME LIMIT 9.26 The scheme administrator will pay any lump sum within two years of the member's death. If this is not practicable then, at the end of two years, it will be transferred to a separate account outside the scheme until it can be paid. ANNUITY DEFERRAL 9.27 If the scheme administrator permits, the purchase of any survivor's annuity under rule 9.1 or 9.6 (other than from the protected rights fund) may be deferred under an arrangement at the written option of the survivor. The option to defer annuity purchase under rule 9.2 and take income withdrawals shall not be available to any survivor who chooses under rule 9.14 to defer receiving a pension until he or she reaches his or her 60th birthday or who has already attained the age of 75. Where annuity purchase has been deferred in accordance with this rule then the survivor must take income withdrawals from the survivor's fund held in the arrangement(s) in accordance with rules 9.33 to 9.37, following any reduction of the survivor's fund required in accordance with rule 9.12. INCOME WITHDRAWAL 9.28 The survivor shall notify the scheme administrator in writing when he or she wishes the deferral to end and an annuity to be purchased, providing at least one month's notice. 9.29 Where a survivor ceases to be eligible to a pension in accordance with rules 9.16 or 9.18 then income withdrawals must cease. Subject to rule 9.38 any survivor's fund remaining in the arrangement at the date of such cessation will be used to meet general administrative expenses of the scheme. 9.30 Where a survivor draws income withdrawals from an arrangement under rule 9.27 the pension must be secured through the purchase of an annuity by the earlier of : * the survivor's 75th birthday, or * the date the member would have reached his or her 75th birthday. Annuity Purchase 9.31 If the scheme permits the survivor may, whilst making income withdrawals from an arrangement in accordance with rule 9.27, use part of the survivor's fund held in the arrangement to secure a pension through annuity purchase, whilst continuing to make income withdrawals from the remainder of the survivor's fund in the arrangement in accordance with rule 9.27. If this option is taken rules 9.36 and 9.37 must be followed. 9.32 Where an annuity is being purchased in accordance with rules 9.28, 9.30 or 9.31 then the survivor has the option of choosing which insurer the annuity is purchased from as in rules 9.8 to 9.10. INCOME WITHDRAWAL LIMITS 9.33 The (aggregate) amount of income withdrawal(s) in each of the three successive periods of twelve months beginning with the date of the member's death shall not exceed the amount of pension purchasable on that date calculated by reference to : * the amount of the survivor's fund held in the arrangement on that date, and * the current published tables of annuity rates prepared for this purpose by the Government Actuary's Department. Such income withdrawals shall not be less than 35% of the pension so calculated. This minimum limit shall not apply for the twelve month period during which all of the survivor's fund is used to secure an annuity or the survivor dies, or ceases to be entitled to a pension under rules 9.16 or 9.18. Recalculation of Income Withdrawal Limits 9.34 The scheme administrator must review the maximum and minimum annual income withdrawal limits three years after the date of death of the member, and every three years thereafter, until all of the survivor's fund held under the arrangement has been used to purchase an annuity. These limits should be calculated in the same way as detailed under rule 9.33 but by reference to the value of the survivor's fund held in the arrangement at the date of review, and the Government Actuary's Department's annuity rate tables current at that date. Sixty Day Window for Review 9.35 But if the scheme administrator so chooses, the recalculation detailed in rule 9.34 may be made at any time within sixty days ending on the due date of review. But the calculation made will be applied as if it had taken place on the due date for review. The next recalculation will then take place at the due date of review (ignoring the use of the sixty day window) at the end of the next three year period, as specified under rule 9.34. Purchase of an Annuity With Part of the Survivor's Fund 9.36 Where a survivor chooses under rule 9.31 to use only part of the survivor's fund held in an arrangement to purchase an annuity there will be no effect on the review process as described in rule 9.34 unless that purchase comes within the definition of a 'qualifying annuitisation' as defined in section 636A of the Act. Such a purchase will meet that definition if it occurs in a twelve month period for the purposes of rule 9.33 or 9.34 that is not immediately followed by a review of minimum and maximum income withdrawal limits upon application of those rules. 9.37 Where the purchase is a 'qualifying annuitisation' for the purposes of section 636A of the Act then on the same day of purchase a new review of the minimum and maximum income withdrawal limits must be undertaken by the scheme administrator. The current annuity rate as taken from the tables detailed in rule 9.33 should be used by reference to the remaining part of the survivor's fund held in the arrangement immediately following the annuity purchase. This review has no effect on the timing of the next twelve month periods or subsequent review dates in rule 9.34. However, the limits calculated by the scheme administrator must be applied for the next one or two twelve month periods due before the next formal review, as required through rule 9.34, in replacement of the earlier limits calculated at the last review or initial calculation. DEATH OF SURVIVOR DURING ANNUITY DEFERRAL PERIOD 9.38 If a survivor dies after electing to defer his or her pension under rule 9.27, but before the whole of the survivor's fund has been used to purchase an annuity, the survivor's fund held in the arrangement shall be paid as a lump sum in accordance with rule 9.25. For the purposes of this rule 9.38, the word 'member' in rule 9.25 shall be read as 'survivor'. 10. Member Dies Before Pension Starts - Life Insurance LUMP SUM PAYABLE UNDER LIFE INSURANCE CONTRACT 10.1 If some of the contributions in respect of a member have been used to pay premiums under a life insurance contract as described in rules 4.36 to 4.37, the scheme administrator will, as soon as practicable and subject to rule 9.26, pay the lump sum benefit from the contract : (1) in accordance with any specific provision regarding payment of such sums under the contract; or (2) if (1) is not applicable and at the time of the member's death the scheme administrator is satisfied that the contract is subject to a valid trust under which no beneficial interest in a benefit can be payable to the member, the member's estate or the member's legal personal representatives, to the trustees of the trust; or (3) subject to the proviso to rule 4.37 if (1) and (2) are not applicable and at the time of the member's death the contract is vested in an assignee, other than the member's estate or the member's legal personal representatives, to the assignee; or (4) if (1), (2) and (3) are not applicable, at the discretion of the scheme administrator, to or for the benefit of any one or more of the following in such proportions as the scheme administrator decides : (a) any person, charity, association, club, society or other body (including trustees of any trust whether discretionary or otherwise) whose names the member has notified to the scheme administrator in writing prior to the date of the member's death; (b) the member's surviving spouse; (c) the parents and grandparents of the member or the member's surviving spouse and any children and remoter issue of any of them; (d) the member's dependants; (e) any person, charity, association, club, society or other body entitled under the member's will to any interest in the member's estate; (f) the member's legal personal representatives. For this purpose a relationship acquired by legal adoption is as valid as a blood relationship. 11. Member With Protected Rights Fund Dies After Pension Starts But Before Effect Has Been Given To Protected Rights 11.1 If a member has a protected rights fund, and dies after any other benefit starts but before effect has been given to the protected rights, then the benefit on the member's death will be as follows : (1) Part 9 of these rules will apply to the protected rights fund as if the member had died before the benefit had started. Consequently, where the conditions described in rule 9.24 apply and no part of the member's fund containing protected rights is to be used to pay a survivor's pension, the member's protected rights fund must be paid as a lump sum, as dictated by regulation 12 of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (SI 1996/1537). This lump sum will, however, be subject to the tax charge detailed in rule 8.22 where the payment occurs after pension date has been reached in the arrangement(s) concerned and section 648B of the Act applies; (2) Any other benefits will be as described in Part 8 of these rules. 12. Transfer Out of the Scheme MEMBER'S RIGHT TO A CASH EQUIVALENT 12.1 A member has a right to a 'cash equivalent' under the provisions of Part IV or Part IVA of Chapter IV of the Pension Schemes Act. If a member elects to apply for a 'cash equivalent', which by definition relates to the whole of the member's interest in the scheme, then all the member's accrued rights in all arrangements under the scheme must be transferred, subject to special conditions for protected rights and safeguarded rights (see rule 12.3 and rule 12.16 to 12.26). TRANSFER PAYMENTS 12.2 In the absence of an election to apply for a statutory right to transfer a 'cash equivalent' under rule 12.1, the scheme administrator may, nevertheless, at the written request of a member transfer the member's fund, or that part of it which excludes protected rights, to another scheme of which he or she has become a member. Protected Rights Fund 12.3 Where protected rights are to be transferred, the whole of the member's protected rights fund under the scheme must be transferred subject to the rest of this rule and the conditions set out in rules 12.16 to 12.24 and 12.28. If, however, the member also holds safeguarded rights in the scheme these rights don't have to be transferred with his or her protected rights, provided they are not held in the same arrangement. Similarly funds representing a member's safeguarded rights may be transferred in isolation from the rest of his or her protected rights fund or non-protected rights fund if they are held in a separate arrangement. Where a member's safeguarded rights are to be transferred, the whole of those member's safeguarded rights held in the scheme must be transferred. Any such transfer is subject to the conditions set out in rules 12.25 and 12.26. If, however, protected rights are to be transferred from an arrangement that also contains safeguarded rights and / or non-protected rights, then those safeguarded rights and non-protected rights must also be transferred. Similarly where safeguarded rights are to be transferred from an arrangement any protected rights or non-protected rights held in the same arrangement must also be transferred. Receiving Scheme 12.4 The member's fund may be transferred to: (1) another approved personal pension scheme, including a stakeholder pension scheme; (2) a retirement benefits scheme, including a Free-standing Additional Voluntary Contribution Scheme; (3) a relevant statutory scheme; or (4) any other scheme approved for the purpose of this rule by the Inland Revenue. 12.5 The transfer must be made by a direct payment between the scheme administrator and the administrator or trustee of the other scheme. The transfer may not be paid or passed through a financial intermediary or broker. 12.6 The scheme administrator must comply generally with all Inland Revenue requirements and specifically with any certification or other requirements imposed by the Transfer Payments Regulations 2001. Pension Credit Rights 12.7 In the event of pension credit rights arising, these must be implemented by a transfer to a scheme of the type listed in rule 12.4 or, where the scheme administrator permits, to a new arrangement for the ex-spouse within the scheme. TRANSFER TO AN OVERSEAS PENSION SCHEME 12.8 If the scheme permits, a member's non-protected rights fund held within an arrangement may be transferred to an overseas pension scheme, provided : * all conditions for such transfers as laid down by the Inland Revenue are satisfied, and * the prior consent of the Inland Revenue has been obtained, where necessary. 12.9 The transfer of a member's protected rights fund or safeguarded rights to an overseas pension scheme may only take place if the requirements laid down by rules 12.17 to 12.24 and 12.25 to 12.26 are adhered to and any other such requirements laid down by DWP Regulations. MEMBER WITHDRAWING A REQUEST 12.10 The member may withdraw a request by giving the scheme administrator notice in writing to that effect but may not withdraw a request after the scheme administrator has entered into a binding agreement with a third party to make the transfer to the other scheme. A member who has withdrawn a request may make another. TIME OF TRANSFER 12.11 Except as described in rules 12.12, 12.14 and 12.15, the transfer must be completed before pension date. TRANSFER OF MEMBER'S BENEFITS WHILST IN INCOME WITHDRAWAL 12.12 Where the member is taking income withdrawals from an arrangement in accordance with rule 7.24, and has not yet purchased an annuity, or been required under rule 7.25 to purchase an annuity, then if the scheme administrator so permits a transfer may be made to an 'arrangement' under another approved personal pension scheme provided : * the payment consists of the whole of the member's non-protected rights fund under the transferring arrangement, * the member's non-protected rights fund concerned was not the subject of an earlier transfer into the scheme under rule 13.14 that occurred in the twelve month period immediately preceding the date the transfer payment is to be made, and * the receiving 'arrangement' conforms with the requirements of the Transfer Payments Regulations 2001, as described in rule 13.16. The schedule to the rules will specify whether the member has the option detailed in this rule. 12.13 Where a transfer is to be made from an arrangement in accordance with rule 12.12 and the proposed transfer date occurs in the first twelve month period following pension date then the member must actually have received income withdrawal benefits from the arrangement before the transfer can proceed. Up to the point of transfer the member must have drawn, on a pro rata basis by reference to the time elapsed, the minimum level of income withdrawal as calculated on pension date in accordance with rule 7.28. TRANSFER OF SURVIVOR'S OR SUBSTITUTE MEMBER'S BENEFITS WHILST IN INCOME WITHDRAWAL 12.14 Where a survivor or substitute member is taking income withdrawals from an arrangement in accordance with rules 8.12, 9.27 or 13.16, and has not yet purchased an annuity, or been required to purchase an annuity under either rule 8.15, 9.30 or 13.16, then if the scheme so permits a transfer may be made to an 'arrangement' in another approved personal pension scheme provided: * the payment consists of the whole of the survivor's fund or substitute member's fund under the arrangement in question, * the substitute member's fund was not the subject of an earlier transfer into the scheme under rule 13.15 that occurred in the twelve month period immediately preceding the date the transfer payment is to be made, and * the receiving 'arrangement' conforms with the requirements of the Transfer Payments Regulations 2001, as described in rule 13.16. The schedule to the rules will specify whether the survivor or substitute member has the option detailed in this rule. PENSION CREDIT RIGHTS 12.15 Where a pension sharing order is made before the member's pension date under an arrangement, but is not implemented by that date, then a transfer of pension credit rights may still be made subject to the requirements of the Transfer Payments Regulations 2001 and the Discharge Regulations. PROTECTED RIGHTS FUND - ADDITIONAL CONDITIONS 12.16 The transfer of a member's protected rights fund will be subject to the additional conditions set out in rules 12.17 to 12.24, according to the type of scheme to which a transfer is being made. All Schemes 12.17 The member must consent to the transfer unless Part 17 of these rules permits otherwise. 12.18 The receiving scheme must be an appropriate personal pension scheme; a contracted-out occupational pension scheme; or an overseas occupational pension scheme or arrangement as permitted by regulation 5 of the Protected Rights (Transfer Payment) Regulations 1996 (SI 1996/1461). 12.19 The transfer payment (or that part which gives effect to protected rights) must be of an amount at least equal to the 'cash equivalent' of the member's protected rights fund. Appropriate Personal Pension Schemes and Contracted-Out Money Purchase Occupational Pension Schemes 12.20 The transfer payment must be applied by the receiving scheme in providing money purchase benefits for and in respect of the member, except where the scheme is a contracted-out money purchase scheme that provides salary related benefits. All Occupational Pension Schemes (Except Overseas Schemes) 12.21 The member must have entered employment with an employer who is a contributor to the receiving scheme, or be a former member of the receiving scheme. Salary Related Contracted-Out Occupational Pension Schemes 12.22 In respect of the protected rights fund which relates to tax years : * prior to 6 April 1997, the receiving scheme must provide the member or the member's widow or widower with a guaranteed minimum pension equal to those to which he or she would have been treated as entitled by reason of the member's membership of the scheme if the transfer payment had not been made. * after 6 April 1997, the receiving scheme must provide the member or the member's widow or widower with benefits in accordance with regulation 4(e) of the Protected Rights (Transfer Payment) Regulations 1996 (SI 1996/1461). Overseas Schemes and Arrangements 12.23 The scheme administrator must take reasonable steps to satisfy himself that the member has : * emigrated permanently and entered employment to which the receiving scheme applies (if an overseas scheme). * received a statement from the receiving scheme or arrangement showing the benefits to be awarded in respect of the transfer payment and any conditions on which these could be withheld or forfeited. 12.24 The member must acknowledge in writing that he or she accepts that the receiving scheme may not be regulated under UK law, and consequently that there can be no obligation under UK law on the receiving scheme to provide any particular value or benefit in return for the transfer payment. SAFEGUARDED RIGHTS - ADDITIONAL CONDITIONS 12.25 If the conditions in rule 12.26 are met safeguarded rights may be transferred to : * a retirement benefits scheme : - which is contracted-out or has ceased to be contracted-out, - where the ex-spouse is employed by an employer who is contributing to that scheme, and - provided any requirements of The Pension Sharing (Safeguarded Rights) Regulations 2000 (SI 2000/1055) and regulation 17 and 18 of The Pension Sharing (Pension Credit Benefit) Regulations 2000 (SI 2000/1054) are met. * an approved personal pension scheme : - which is an appropriate personal pension scheme or has ceased to be an appropriate personal pension scheme, and - provided any requirements of The Pension Sharing (Safeguarded Rights) Regulations 2000 (SI 2000/1055) and regulation 17 of The Pension Sharing (Pension Credit Benefit) Regulations 2000 (SI 2000/1054) are met. * an overseas arrangement or scheme as defined in regulation 1(2) of the Contracted-Out (Transfer and Transfer Payment) Regulations 1996 (SI 1996/1462) if the conditions of regulation 19 of The Pension Sharing (Pension Credit Benefit) Regulations 2000 (SI 2000/1054) are met. 12.26 Safeguarded rights may only be transferred in accordance with rule 12.25 if : * the transfer payment is of an amount at least equal to the 'cash equivalent' of the safeguarded rights calculated as specified in regulation 24 of The Pension Sharing (Pension Credit Benefit) Regulations 2000 [SI 2000/1054], and * the receiving scheme satisfies such additional requirements as may be prescribed from time to time by legislation. DISCHARGE OF RIGHTS 12.27 Entitlement to benefit under the scheme for or in respect of the member or survivor will cease in respect of any rights transferred in accordance with Part 12 of these rules and the scheme will be discharged from any obligation to provide benefits in respect of those rights. MULTIPLE TRANSFERS 12.28 Except where the transfer is in accordance with rule 12.12 a member may elect under this rule for different parts of the member's fund(s) to be transferred as described above to different schemes, provided all the member's fund is being transferred from the arrangement. The member's protected rights fund must, however, be transferred to the same scheme, except that any rights attributable to tax years ending before 6 April 1997 may be transferred to a different scheme to those attributable to tax years commencing after 5 April 1997. This exception will never be relevant for safeguarded rights (see rule 7.12). 13. Transfer Into the Scheme TRANSFERRING SCHEME 13.1 The scheme administrator may, at the written request of a member, accept a transfer payment representing the value of the member's rights (including any pension credit rights) under: (1) another approved personal pension scheme including one established for the purpose of accepting a transfer, and a stakeholder pension scheme; (2) a retirement benefits scheme, including a Free-standing Additional Voluntary Contribution Scheme; (3) a deferred annuity contract providing benefits arising from previous membership of a retirement benefits scheme (i.e. a "buy-out policy" or "section 32 policy" as described in section 591(2)(g) of the Act, or a policy assigned to the member in the terms of section 431B(2)(e) of the Act), or rights attributable under section 32A of the Pension Schemes Act; (4) a retirement annuity contract or trust scheme approved under Chapter III of Part XIV of the Act; (5) a relevant statutory scheme; or (6) any other source permitted by the Inland Revenue. The scheme administrator may accept a transfer without the member's written request where the transfer originates from a scheme which is being wound-up and the rules of that scheme don't require the member's consent to that transfer. Transfer In With Pension Debit 13.2 Where the scheme administrator accepts a transfer payment into the scheme and is informed by the transferring scheme of a pension debit relating to the transfer payment then the scheme administrator must retain details of this pension debit. Where those transferred benefits need valuing for maximum Inland Revenue benefit purposes in relation to benefits held by the member in other schemes then the scheme administrator should take account of the pension debit when providing details of the member's benefits held in the scheme. If those benefits are transferred from the scheme in accordance with Part 12 of these rules then the scheme administrator must give full details of the pension debit to the receiving scheme's administrator. Stakeholder Pension Scheme Requirements 13.3 As a stakeholder pension scheme, the scheme administrator must accept transfer payments from sources listed under (1) to (5) in rule 13.1. This will, however, be subject to the scheme keeping within any conditions for tax approval and the conditions of contracting out and the SHP Regulations 2000. GENERAL CONDITIONS 13.4 The transfer must be made by a direct payment between the administrator or trustee of the other scheme and the scheme administrator (or, in the case of a transfer of the type described in (3) or (4) of rule 13.1, between the insurance company or friendly society concerned and the scheme administrator). The transfer may not be paid or passed through a financial intermediary or broker. 13.5 A transfer payment is not a contribution for the purpose of section 639(1) of the Act (tax relief). It may not be used for the purpose of rules 4.36 to 4.37 (buying life insurance) or rules 4.39 to 4.40 (waiver of contributions). Certification Requirements 13.6 Before accepting a transfer payment from another approved personal pension scheme the scheme administrator must find out from the administrator of the transferring scheme how much of the transfer payment (if any) is derived from funds which have been held for the provision of benefits for the member by a scheme or schemes of the kind described in (2), (3) or (5) of rule 13.1. 13.7 If the transfer is from any of the sources detailed in (2), (3) or (5) of rule 13.1 and the member is a regulated individual in relation to that transfer payment : * the scheme administrator must obtain from the administrator of the transferring scheme any certificates required by Part III of the Transfer Payments Regulations 2001, and * the amount derived from this transfer payment will be subject to the restriction in rule 13.17. 13.8 If a transfer payment is later made from the scheme to another approved personal pension scheme, the scheme administrator must pass on to the administrator of the receiving scheme : * any lump sum or other certificate required by the Transfer Payments Regulations 2001, and * details of any part of the transfer that is subject to the restriction in rule 13.17. 13.9 The scheme administrator must comply generally with all Inland Revenue requirements for the acceptance of transfers and provision of benefits from transfer payments and specifically with any certification requirements of the Transfer Payments Regulations 2001. Transfers Received Prior To 6 April 2001 13.10 If the scheme received transfer payments prior to 6 April 2001, any certificate obtained under a provision of the Personal Pension Schemes (Transfer Payments) Regulations 1988 (SI 1988 /1014) that restricts the member's lump sum entitlement at pension date shall be treated for the purpose of these rules as if obtained under the corresponding provision of the Transfer Payments Regulations 2001. PROTECTED RIGHTS FUND 13.11 A transfer payment under rule 13.1 may include : (1) protected rights for the member from another scheme which is, or was, an appropriate personal pension scheme or an occupational pension scheme contracted-out by the money purchase test, or protected rights under an appropriate policy of insurance of the type described under section 32A of the Pension Schemes Act; (2) the member's accrued rights to a guaranteed minimum pension under a scheme which is, or was, a salary related contracted-out scheme, or an insurance policy or annuity contract of the type described in section 19 of the Pension Schemes Act; (3) section 9(2B) rights; or (4) any safeguarded rights attributable to the member. 13.12 If such a transfer is received, then the scheme administrator must use that part of the transfer payment representing protected rights, accrued rights to a guaranteed minimum pension or accrued section 9(2B) rights to provide the member with protected rights under the scheme. The rest of the transfer payment will only be used to provide protected rights if the scheme documents say that these rules apply to all payments to the scheme. TIME OF TRANSFER 13.13 The transfer must be completed before the member's pension from the member's fund is due to start, unless rules 3.4 or 13.14 apply. ACCEPTANCE OF TRANSFERS OF INCOME WITHDRAWAL BENEFITS 13.14 If the scheme so permits, and all the conditions in rule 13.16 are met, a member may transfer into the scheme benefits from an 'arrangement' held under another approved personal pension scheme where 'pension date' has been reached and benefits are in payment through income withdrawal. 13.15 Benefits in payment through income withdrawal under another approved personal pension scheme in respect of a substitute member may also be transferred to the scheme if the scheme so permits, and all the conditions in rule 13.16 are met. 13.16 The conditions that must be met in rules 13.14 and 13.15 are : (1) The payment must consist of the whole of the 'member's non-protected rights fund' or 'substitute member's fund' held under each of the 'arrangements' being transferred. (2) The receiving arrangement(s) must have been set up by the scheme specifically to accept the transfer or an earlier or simultaneous transfer of the same nature and must prohibit the acceptance of : - contributions under Part 4 of these rules, and - further transfer payments which don't fall within rule 13.14 (if a member) or 13.15 (if a substitute member). Any subsequent transfers must be treated as a new arrangement entering income withdrawal for the purposes of rules 7.26 to 7.35 (whether a member or substitute member, see (4) of this rule). (3) Member and substitute member benefits may not be transferred into the same arrangement, even if the member and the substitute member are the same person. (4) The member or substitute member must have elected as part of the process of setting up the new arrangement(s) to defer the purchase of an annuity and commence income withdrawals with effect from the date of transfer in accordance with rule 7.24 (or as described in rule 7.24 if a substitute member). For a member, rules 7.26 to 7.40 will apply to the new arrangement(s), with the date of transfer being substituted for pension date. For a substitute member rules 7.27 to 7.40 will apply to the new arrangement(s) with : - the date of transfer being substituted for the date of the member's death, - 'substitute member' being substituted for 'member', and - 'substitute member's fund' being substituted for 'member's non-protected rights fund'. For the avoidance of doubt, where a substitute member is also a member of the scheme in their own right then if the scheme administrator permits the review dates for income withdrawal purposes of all arrangements held in the scheme by that individual may be grouped as permitted by rule 7.32. (5) No tax-free lump sum may be paid from the new arrangement(s), whether immediately following transfer or subsequently if the member or substitute member dies before an annuity has been purchased. The exception is detailed in (9) of this rule. (6) Following the transfer into the scheme the member or substitute member may not transfer those benefits held in the new arrangement(s) as permitted by rules 12.12 or 12.14 until at least a year has expired from the date of transfer. (7) An annuity must be purchased in the new arrangement(s) no later than required by rule 7.25 (if a member) or rule 8.15 (if a substitute member). For the purpose of this rule the reference to 'member' in rule 8.15 should be read by reference to the member of the transferring approved personal pension scheme whose death originally gave rise to the substitute member's benefits under that scheme. When purchasing an annuity the substitute member has the same options as a survivor would have as detailed in rules 8.8, 8.9 and 9.32. (8) Any income withdrawals paid from the substitute member's fund must cease if at any point the substitute member would have stopped being eligible to a pension if they were still subject to the rules of the original approved personal pension scheme benefits were transferred from. Similarly when an annuity is purchased the annuity contract must also provide for the annuity to cease in the same circumstances. Otherwise the annuity should be payable as detailed for a survivor in rule 8.7. (9) If a substitute member dies before an annuity is purchased benefits will be paid out in accordance with rule 9.25 (with 'member' and 'member's fund' being substituted by 'substitute member' and 'substitute member's fund'). Tax will be due on the lump sum in accordance with rule 8.22 unless the substitute member's benefit entitlement arose in the other approved personal pension scheme due to the death of a scheme member before 'pension date' was reached, and as such section 648B of the Act does not apply to any lump sum paid. In such circumstances the lump sum may be paid out without tax being deducted under section 648B of the Act. (10) The scheme administrator must comply generally with any requirements laid down by the Inland Revenue, including the Transfer Payments Regulations 2001. LUMP SUM RESTRICTION ON DEATH 13.17 If the member is a regulated individual and dies before any benefits have been paid to him or her under an arrangement leaving : * a surviving spouse, or * a dependant for whom benefits are specifically provided under the arrangement, the scheme administrator must use any part of the member's fund that derives from a related transfer payment from a source of the sort described in (2), (3), or (5) of rule 13.1 either : (1) wholly to buy survivors' annuities or provide survivors' income withdrawals as described in Part 9 of these rules; or (2) to pay up to 25% (one quarter) as a lump sum in the way described in rule 9.25, and to buy survivors' annuities or provide survivors' income withdrawals as described in Part 9 of these rules with the balance. If there is no surviving spouse and the arrangement does not specifically provide for dependant benefits then the member's fund derived from that transfer payment may be paid as a lump sum in the way described in rule 9.25. However, if the member's fund derived from the transfer payment includes any protected rights then that protected rights fund may only be paid as a lump sum if rule 9.24 permits it. 13.18 If the member is not a regulated individual in relation to a transfer payment then rule 13.17 does not apply and benefits shall be paid on the death of the member in accordance with Part 9 of these rules. 14. General Provisions About Benefits RIGHTS UNDER THE SCHEME 14.1 A person's rights under the scheme are only those given under the scheme documents or by any insurance or pension contract bought with the member's fund (or substitute member's fund, where relevant). The scheme must provide money purchase benefits within section 181 of the Pension Schemes Act. ASSIGNMENT OR SURRENDER 14.2 Rights to a lump sum retirement benefit under the scheme may not be assigned or surrendered, except to the extent necessary to give effect to comply with a pension sharing order. 14.3 No pension secured with a member's fund (or substitute member's fund, where relevant) may be assigned or surrendered except in the following circumstances : (1) A pension which continues under a guarantee to a person's estate after his or her death may be assigned by his or her will, or by his or her personal representatives in distributing his or her estate, for any of the following reasons : * to give effect to his or her will; or * to give effect to the rights of those entitled on his or her intestacy; or * to appropriate it to a legacy or to a share or interest in the estate. (2) To the extent necessary to comply with a pension sharing order. (3) As permitted by sections 342A to 342C of the Insolvency Act 1986 and sections 36A to 36C of the Bankruptcy (Scotland) Act 1985, as amended by sections 15 to 16 of the Welfare Reform and Pensions Act 1999. (4) As permitted by section 273 to 278 of the Proceeds of Crime Act 2002. Furthermore, by statute, every assignment of protected rights or payments giving effect to them is void. So is any charge on them, and also any agreement to assign or charge them. INFORMATION TO MEMBERS 14.4 The scheme administrator will issue an annual statement to members and others as required through section 113 of the Pension Schemes Act. 14.5 As a stakeholder pension scheme, the scheme administrator must provide an annual statement to each member and any other beneficiary complying with regulation 18 of the SHP Regulations 2000. The statement must be provided within three months after an annual period set by the scheme administrator. 14.6 If the stakeholder pension scheme changes its practice on the charges or deductions on contributions or pension rights, it must inform affected members and other beneficiaries within one month of the change and otherwise comply with regulation 18 of the SHP Regulations 2000. BENEFICIARY UNABLE TO ACT 14.7 If the scheme administrator believes that a person entitled to payments is unable to act for any reason, the scheme administrator may arrange that payments, instead of being made to that person, will be made for the maintenance of that person and / or any of that person's dependants. If any payments are not so made, they (and any proceeds) must be held for the person concerned until that person is again able to act. If that person dies without becoming able to act, payment must be made to that person's estate. Any payment made in accordance with this provision will discharge the scheme from any obligation to provide the benefits to which it relates. PRISON 14.8 If a person entitled to benefit is serving a period of imprisonment or detention in legal custody, payments which are or become due to that person from a member's protected rights fund or payments of a benefit secured with that fund may be suspended. The value of the suspended payments must then be used for the maintenance of one or more of that person's dependants. WHEREABOUTS UNKNOWN 14.9 The scheme administrator may use discretion to decide that any person who is entitled to a payment under the scheme shall cease to have any claim to the payment if at least six years have passed from the date the payment became due and the address of the person is not known to the scheme administrator. The scheme administrator must, however, first take all reasonable steps to ascertain the address. EVIDENCE 14.10 The scheme administrator may require any member or any other person to whom a pension or lump sum is payable under the scheme to produce any evidence or information which the scheme administrator may from time to time reasonably require. If the member or the other person does not produce the evidence or information, the scheme administrator may withhold payment of any benefit to which it is relevant until it is produced. NOTICE TO SCHEME ADMINISTRATOR 14.11 Where these rules give a member or other person any choice, the scheme administrator may impose any requirements as to the period or form of the notice to be given by the member or other person, so long as these don't conflict with any requirements specified in these rules. 15. General Provisions About Pensions PAYMENT INTERVALS 15.1 Any pension paid as an annuity from a member's fund (or substitute member's fund, where relevant) may be paid in advance or arrears. It must be paid at least once a year. 15.2 If a pension bought with a member's protected rights fund is payable in arrears, it must be paid at least monthly unless the recipient agrees in writing that it can be paid less often. INCREASE IN PAYMENT 15.3 A pension under the scheme may be of a level amount, a variable amount or may increase in payment. 15.4 But in the case of a pension bought with a member's protected rights fund, the following special conditions apply : (1) The pension attributable to contributions which relate to tax years ending before 6 April 1997, must increase each year by the same percentage as a guaranteed minimum pension accruing between 5 April 1988 and 5 April 1997. These increases are governed by orders under section 109 of the Pension Schemes Act and reflect increases in the general level of prices up to a maximum of 3%; the pension may (but need not) be on terms that it will increase by a greater amount, but not by more than 3% in any year. (2) The pension attributable to contributions that relate to tax years commencing after 5 April 1997, must be increased in accordance with section 162 of the Pensions Act 1995. (3) The first increase must be made not later than the first anniversary of the pension starting. Further increases must be made on each anniversary of the first increase. Safeguarded rights that fall within (1) are treated in the same way as described in (2), as stated by rule 7.12 ENFORCEABILITY 15.5 The scheme administrator may only buy a pension from an insurer with a member's protected rights fund if the scheme administrator is satisfied that any person who is or may be entitled to payment of that pension may enforce that entitlement : * under a trust; or * under a deed poll; or * under Scottish law. 16. Provider and Scheme Administrator PROVIDER 16.1 The name of the provider is set out in the schedule to the rules. The provider is a person permitted by section 632 of the Act to establish an approved personal pension. If the provider ceases to be such a person, the scheme administrator must immediately inform the Inland Revenue. 16.2 Where the scheme is established by an affinity group then the scheme must be established under trust. Membership of the scheme should also be limited in accordance with rule 3.3. SCHEME ADMINISTRATOR 16.3 The scheme administrator is the person named in the schedule to the rules. The provider may by notice remove the scheme administrator provided that at the same time it appoints another, or assumes the role itself. The scheme administrator is responsible for discharging the duties imposed by these rules and by the Act. The scheme administrator must be a person resident in the United Kingdom. If the provider is resident in the United Kingdom, the provider may be appointed as the scheme administrator. TRUSTEES 16.4 As the scheme is a stakeholder pension scheme, any trustees of the scheme will be subject to any prohibition orders or civil penalties under section 3 and 10 of the Pensions Act 1995. STAKEHOLDER PENSION SCHEME REQUIREMENTS 16.5 As the scheme is a stakeholder pension scheme the following rules apply : (1) Each year, in accordance with regulation 12 of the SHP Regulations 2000, the trustees or manager of the scheme must make a declaration in writing, consisting of a number of statements. In particular, the declaration must include a statement that in the opinion of the trustees or manager there are systems and controls in place which provide reasonable assurance that the conditions of approval as a stakeholder pension scheme have been complied with. (2) The scheme must appoint a reporting accountant in accordance with regulation 11 of the SHP Regulations 2000. The reporting accountant is required to review the process that the trustees or manager have used to make one of the statements in the declaration. The reporting accountant is required to provide a statement to this effect. (3) The declaration made by the trustees or manager and the statement made by the reporting accountant are to be made available to members and beneficiaries on request. (4) The scheme must not provide services within the scheme other than management of the scheme and its funds as set out in the establishing document and rules. If the scheme does provide other services, it must do so free of charge or, if there is a charge, under a separate written contract in accordance with regulation 16 of the SHP Regulations. It cannot be a condition of membership of the scheme that any other contract be taken out. 17. Closing or Winding-Up the Scheme CLOSING THE SCHEME 17.1 The provider may at any time : (1) stop admitting new members (or substitute members where relevant) to the scheme, but continue to accept contributions from, and in respect of, existing members; or (2) stop admitting new members (or substitute members where relevant) to the scheme and stop accepting contributions from, and in respect of, existing members. 17.2 If the scheme is closed, the scheme administrator will continue to operate the scheme under the scheme documents, unless the provider is winding-up the scheme. Where (2) of rule 17.1 applies, the scheme administrator must notify each member or other beneficiary of his or her rights and options under the Personal Pension Schemes (Disclosure of Information) Regulations 1987 (SI 1987/1110). WINDING-UP THE SCHEME 17.3 The provider may wind-up the scheme by giving notice to the scheme administrator. The scheme administrator will then notify each member of his or her rights and options under the Personal Pension Schemes (Disclosure of Information) Regulations 1987 (SI 1987/1110). This notification will include notice of the member's rights to a transfer under Part 12 of these rules. 17.4 When a member does not make a choice under Part 12 of these rules, the scheme administrator will transfer the member's fund, excluding the protected rights fund, to another approved personal pension scheme of the scheme administrator's choice. The member's consent won't be necessary. When the member has a protected rights fund, Part 19 of these rules also applies. STAKEHOLDER PENSION SCHEME REQUIREMENTS 17.5 If the scheme ceases to be registered as a stakeholder pension scheme with Opra the scheme administrator will begin winding up the scheme. This must be done under SHP Regulations 2000 once the scheme is told in writing by Opra that the scheme is no longer registered as a stakeholder pension scheme. 17.6 If the scheme is being wound up for any other reason the scheme administrator will fix the effective date from which the scheme will wind-up. 17.7 Any contributions paid to the scheme after the date of commencement of winding up will be repaid to the member or other individual and the employer, according to who paid them. 17.8 Within two weeks of starting winding-up, the scheme administrator will tell known employers who have designated the scheme for the purposes of employee access under section 3 of The Welfare Reform and Pensions Act 1999 that winding-up has started. The employer(s) will also be told why the scheme is being wound up and, if it is the case, why the scheme has ceased to be registered as a stakeholder pension scheme. 17.9 The scheme administrator will ensure that all pension rights under the scheme are secured within a year of the start of winding-up. But a longer time may be necessary if unavoidable in order to secure pension rights by means of a transfer to another stakeholder pension scheme or, if requested by the member or other beneficiary, another scheme. The transfer payments will be at least the value of the 'cash equivalent'. Any protected rights will be secured in accordance with section 28 of the Pension Schemes Act. 17.10 If the scheme is not wound up within twelve months of commencing wind-up the scheme administrator will tell Opra within one month of so failing, giving a full reason why. This should be repeated at six monthly intervals if necessary. 17.11 Within four months of the start of winding-up, the scheme administrator will tell each member or other beneficiary that it is proposed to transfer pension rights to another stakeholder pension scheme and the value of those rights. The member or other beneficiary will then also be given four months from the date of the notice to opt for a transfer to a scheme of their choice. If no option is received, the scheme administrator may then transfer to the stakeholder pension scheme as earlier proposed. If the member or other beneficiary opts for a transfer to a scheme of their choice, then the scheme administrator will carry out the member's or other beneficiary's wishes provided such action is within the conditions for tax approval or contracting out. 17.12 The conditions and procedures on transfers must also comply with the SHP Regulations 2000 18. Withdrawal of Inland Revenue Approval WITHDRAWAL OF APPROVAL OF SCHEME 18.1 If the Inland Revenue withdraw the tax approval of the scheme through section 650 of the Act, the scheme administrator will inform the members (and other beneficiaries, as appropriate) within three months of the date of receipt of the notice of withdrawal unless the scheme administrator appeals. If an appeal is made, the scheme administrator will inform the members and other beneficiaries within three months of the date of receipt of the notice that the special commissioners have dismissed the appeal or have ruled that the decision is to have effect from a different date. The scheme administrator will then wind-up the scheme as described in Part 17 of these rules. WITHDRAWAL OF APPROVAL OF A MEMBER'S ARRANGEMENT 18.2 If the Inland Revenue inform the scheme administrator that they are withdrawing the tax approval of an arrangement made for a member under the scheme through section 650 of the Act, the Inland Revenue will inform the scheme administrator and member within three months of the date on which the notice of withdrawal is issued by the Inland Revenue unless the scheme administrator or member appeals. If an appeal is made, the scheme administrator will inform the member within three months of the date of receipt of any notice that the special commissioners have dismissed the appeal or have ruled that the decision is to have effect from a different date. For the purpose of this rule 'member' should be read to include a survivor or substitute member, where relevant. 19. Scheme Ceases to be an Appropriate Personal Pension Scheme REQUIREMENTS UNDER THE PERSONAL PENSION SCHEMES (DISCLOSURE OF INFORMATION) REGULATIONS 1987 (SI 1987/1110) 19.1 If the scheme ceases to be an appropriate personal pension scheme, the scheme administrator will inform each scheme member of his or her rights and options in accordance with The Personal Pension Schemes (Disclosure of Information) Regulations 1987 (SI 1987/1110). STAKEHOLDER PENSION SCHEME REQUIREMENTS 19.2 If rule 19.1 is relevant the scheme administrator must wind-up the scheme in accordance with Part 17 of these rules. 20. Investments or Deposits Held For the Purpose of the Scheme INVESTMENTS GENERALLY 20.1 The scheme administrator must not permit any type of investment under Part 20 of these rules which would change, or conflict with, the form the scheme has taken for the purpose of its appropriate scheme certificate, if relevant. 20.2 It is a decision for the scheme administrator as to how scheme funds are invested and the degree of investment choice open to a member. This scheme does not allow scheme members such investment choice so any arrangement becomes a self-invested personal pension scheme. It is the responsibility of the scheme administrator to ensure that any investments made conform with the requirements of these rules. 20.3 The investment of any assets of the scheme is subject to the restrictions and requirements of the Permitted Investments Regulations 2001 and section 638A of the Act. PROHIBITED INVESTMENTS Residential Property or Personal Chattels 20.4 An arrangement shall not directly or indirectly hold as an investment : * residential property, or * personal chattels other than choses in action (or, in Scotland, any moveable property other than incorporeal moveable property), except as permitted by regulation 7 of the Permitted Investments Regulations 2001. Loans 20.5 An arrangement may not be used to lend money to a member of the scheme or any person connected with such a member. For the purpose of this rule lending includes the circumstances detailed in rule 20.6. 20.6 For the purposes of rule 20.5 an arrangement shall be regarded as lending money to a member or any person connected with him or her in circumstances where : * the arrangement holds as an investment, whether directly or indirectly, assets of a person, * that person lends money to the member concerned or a person connected with him or her, and * the loan has the effect of limiting or reducing in any way the return on the investment. CONNECTED TRANSACTIONS 20.7 The scheme administrator shall not enter directly or indirectly into any investment transactions with a member or any person connected with that member (except as allowed through rules 20.8 to 20.10). For the purposes of this rule : * the acquisition of an asset is deemed to be an indirect transaction with a member or a person connected with a member if that asset has been held by that party at any time in the three years prior to the acquisition of that asset by the scheme. * the sale of an asset is deemed to be an indirect transaction with a member or a person connected with a member if within three years of the sale of the asset by the scheme a member or person connected with a member acquires that asset. 20.8 Rule 20.7 does not apply to contributions accepted from an employee share scheme as permitted by rule 4.10, provided rules 4.12 and 4.13 are adhered to. 20.9 The scheme administrator shall take all reasonable steps to ensure and continue to monitor that any transaction falling within the provisions of these rules is not one with a connected person, save where permitted by the Permitted Investments Regulations 2001. 20.10 A transaction entered into as part of the normal investment management by the scheme need not be regarded as giving rise to a connection between the member or a connected person if it relates to a 'pooled fund' as defined in regulation 2 of the Permitted Investments Regulations 2001. STAKEHOLDER PENSION SCHEME REQUIREMENTS 20.11 As the scheme is a stakeholder pension scheme : * those requirements of the SHP Regulations 2000 that such regulations require to be specified in the scheme instruments shall, if not incorporated in another scheme document, be deemed to be incorporated in the rules and, to the extent required, shall override any other provision of the rules that is inconsistent with those requirements. * the member is not obliged to make any choice as regards investment under the scheme. The scheme administrator may set and use a range of investments, or investment options, so long as no further choice is necessary from the member. But, if the scheme administrator permits, the member will be allowed to make choices. * the scheme administrator must produce a written statement that describes the principles used by the scheme when making investment decisions. The statement should also cover its strategy on what proportions of different types of investment will be used. It should also indicate the intentions on the degree of risk, expected returns, and the selling of assets. Its stance on 'ethical' investments and the extent to which it will actively use voting rights for shareholdings should be given. The conditions of regulation 8 of the SHP Regulations 2000 must be met. See also rules 20.30 and 20.31. * the return on investments must be used to provide benefits except as allowed for expenses and other items under regulation 14 of the SHP Regulations 2000. 20.12 If the scheme is not set up under trust, it must comply with the requirements of regulation 9 (requirement for statement of investment principles) and regulation 10 (requirement to have regard to certain matters, and to take advice, relating to investment) of the SHP Regulations 2000. 20.13 If the scheme is set up under trust : * the requirements of regulation 4 of the SHP Regulations 2000 shall be deemed to be incorporated into the rules, and * it must comply with regulations 19 and 32 of the SHP Regulations 2000. 21. Alterations to These Rules INLAND REVENUE CONSENT 21.1 No alteration may be made to any of these rules without the consent of the Inland Revenue. This applies whether the alteration is made under rule 21.2 or under any other power of alteration in the scheme documents. POWER TO ALTER THESE RULES 21.2 The scheme administrator may at any time, in writing, make any alteration to these rules including any alteration necessary to ensure that the scheme retains its appropriate scheme certificate. This power of alteration may be exercised by the scheme administrator alone, and without any conditions except rules 21.1, 21.3 and 21.4. It is additional to, and independent of, any other power of alteration in relation to the scheme. 21.3 It won't be possible to alter the rules to modify the requirements of the SHP Regulations 2000 unless specifically agreed with Opra. ALTERATION OF AN ARRANGEMENT 21.4 No arrangement may be amended in a way that could prejudice the Inland Revenue approval of the scheme or of the arrangement. Schedule to the Rules The provider is: The provider is / is not an affinity group The scheme administrator is: Rule 1.1 scheme status : * The scheme is tax approved under Chapter IV Part XIV of the Act. * The scheme is a stakeholder pension scheme. * The scheme is not required to appoint a pensioneer trustee. * The scheme is contracted-out of the state second pension as an appropriate personal pension scheme. * The scheme was not previously tax approved as a retirement benefits scheme Part 3 of the rules - making arrangements : * Member's arrangements set up on or after 6 April 2001 are established as (delete as appropriate) : - a single arrangement - more than one arrangement * Any protected rights are set up (delete as appropriate) : - as a separate single arrangement - in the same arrangement as any non-protected rights ('mixed' arrangement) * The scheme allows / does not allow adults to make arrangements for individuals under the age of 16, or in England, Wales and Northern Ireland 18 if not in employment, as members. * The scheme allows / does not allow employed individuals in England, Wales or Northern Ireland who are over the age of 16 but under the age of 18 to make their own arrangements as members. * Arrangements may / may not be split in accordance with rule 3.8. Part 4 of the rules - Contributions : * Rule 4.10 - The scheme will / won't permit contributions paid in the form of shares. * Rules 4.36 and 4.37 - The scheme offers / does not offer life insurance. If it does, the terms will be described in the member's arrangement. * (1) of rule 4.39 : The scheme offers / does not offer a waiver of contribution facility for arrangements made on or before 5 April 2001. * (2) of rule 4.39 : The scheme offers / does not offer an enhanced annuity on incapacity through risk insurance for arrangements made on or before 5 April 2001. Part 7 to 9 - Annuity deferral through income withdrawal : * The scheme permits / does not permit annuity purchase to be deferred through income withdrawal If so : - Rules 7.32 and 13.16 : The review dates where a member, survivor or substitute member (where relevant) has multiple arrangements may / may not be grouped. - Rules 7.33 and 9.35 : The actual review may / may not take place within a sixty day window prior to the specified review date. - Rules 7.27, 9.31 and 13.16 : The member, survivor or substitute member (where relevant) may / may not purchase an annuity with part of the member's fund, survivor's fund or substitute member's fund held in that arrangement whilst taking income withdrawals. - Rules 12.12 to 12.14 and 13.14 to 13.16 : An arrangement may / may not be transferred from or to the scheme where benefits are in payment from that arrangement through income withdrawal. Rule 9.8, 9.10 and 13.16 - Member's, survivor's or substitute member's (where relevant) choice of insurer : * The provider is / is not an insurer. Rule 9.25 : * Distribution of any death benefit will be subject to the terms of the member's arrangement. Rule 10.1 Life Insurance : Life insurance is / is not offered by the scheme. Part 20 - Investments : * The scheme does not have arrangements that are self-invested personal pension schemes. ?©Crown Copyright Keywords: Pension, Annuities, Annuity, Pensions, Annuities Tax, Taxation Please note that the annuities and income drawdown information contained within the articles and general text on Annuities Central may not be intended for annuity consumer use, may no longer be current and should not be used by consumers to make financial decisions. It is very important that you don't use this annuity information in isolation to decide which annuity or annuity alternative to buy. Annuity comparisons and pensions information or opinions expressed are made as at the date of this publication and are subject to change without notice. Always seek the help of an annuity broker before you buy an annuity.

annuity comparisons Visit Open Annuities

You could increase your annuity by thousands. Make sure you recognise the best annuity advice when you get it. The more information about annuities you have, the more able you will be to recognise the best annuity advice when you receive it.
Visit Open Annuities Financial Services Register Number 530750


Annuity Plan Visit Pension Annuity Plan

You may be able to secure several thousand pounds more over your lifetime from annuity providers than your current pension provider. Many are unaware of this very important information. The more information you have, the more able you will be to recognise the best deal when you see it.
Visit Pension Annuity Plan Financial Services Register Number 530750


annuities plan Visit Annuities Plan

All fund sizes welcomed. Why should the annuity buyer be careful? Buying from your pension provider isn't always necessarily the best idea.
Visit Annuities Plan Financial Services Register Number 530750


annuity comparisons Visit Pension Annuity Planner

This company may be able to increase your standard pension annuity through enhanced annuities.
Visit Pension Annuity Planner Financial Services Register Number 530750


annuity comparisons Visit Annuity Base

Using specialist annuity industry search software, an FCA registered Independent Financial Adviser will query top annuity and annuity alternative providers' databases to help you compare and choose which one is the best for you.
Visit Annuity Base Financial Services Register Number 530750


annuity comparisons Visit The Enhanced Annuity

Specialists in enhanced annuities. It is estimated that up to 40% of the UK population could boost their pension annuity income with an "enhanced annuity".
Visit The Enhanced Annuity Financial Services Register Number 483817


annuity comparisons Visit Annuity Comparisons

Why would you use an automated annuity comparison website when an authorised, qualified pension consultant can advise you which is the best annuity for free with no obligation to buy? There are many reasons why you should not trust your future income to comparison tables on faceless sites. In some matters you need absolute certainty.
Visit Annuity Comparisons Financial Services Register Number 483817


annuity comparisons Visit Annuities Extra

Pension annuities for those of us who are not in the best of health. If you've a health problem, no matter how small or insignificant you think it is, you'll stand an increased chance of a higher annuity income.
Visit Annuities Extra Financial Services Register Number 483817


annuity comparisons Visit Simple Annuities

Finding an annuity does not have to be difficult. Pension annuity retirement finance experts with vast experience of annuities are waiting to help you. Compare pension annuities and annuity alternatives now.
Visit Simple Annuities Financial Services Register Number 483817


annuity comparisons Visit The Female Annuity

1000's of women retire every week in the UK. Compare annuities for women and their alternatives.
Visit The Female Annuity Financial Services Register Number 460094


annuity comparisons Visit Annuity Pathway

Your simple pension annuity journey. How you might take the wrong annuity route and lose the annuity income that is rightfully yours.
Visit Annuity Pathway Financial Services Register Number 460094


annuity comparisons Visit Just One Bite Annuities

How a pension annuity will affect your life. You will only get one bite of the annuity apple. Once you buy an annuity, there's no going back.
Visit Just One Bite Annuities Financial Services Register Number 460094


annuity comparisons Visit Pension Annuities Plus

Your annuity income may increase if you have had certain conditions such as high blood pressure, asthma or high cholesterol. This is also true for smokers and for those who have worked in certain occupations. Get pension annuity comparisons now.
Visit Pension Annuities Plus Financial Services Register Number 483817


annuity comparisons Visit Annuity Answers

Why should the pension annuity buyer beware and why do so many retirees ignore a much bigger annuity income? Compare annuities now.
Visit Annuity Answers Financial Services Register Number 483817


annuity comparisons Visit Smokers Annuities

Your lifespan as a smoker and your annuity options. We're sorry to be blunt, but you most likely already know that smokers, in general, have shorter lifespans than non-smokers. Of course annuity providers are well aware of this unfortunate fact of life. Increase your annuity now.
Visit Smokers Annuities Financial Services Register Number 483817


annuity comparisons Visit Annuity Key

Unlike some companies, all fund sizes are accepted. The Retirement Income Customer Hotline Limited may be able to boost your pension income by more than 40% compared with your current pension provider's offering.
Visit Annuity Key Financial Services Register Number 460094


annuity comparisons Visit Buy an Annuity

Buying an annuity from your pension provider isn't always necessarily the best option! You might be able to secure several thousand pounds more over your retirement from annuity providers than your current pension provider.
Visit Buy an Annuity Financial Services Register Number 154622


annuity office Visit Annuity Office

We recognise our annuity clients as individuals, which is why we deal with every case on a one-to-one individual basis. Did you know for instance that your income may increase if you have had certain health problems such as high blood pressure, high cholesterol or asthma? This is also true for smokers and for those who have worked in certain occupations.
Visit Annuity Office Financial Services Register Number 483817