Pensions Act 1995

142 Interim arrangements for giving effect to protected rights

(1) Section 28 of the [1993 c. 48.] Pension Schemes Act 1993 (ways of giving effect to protected rights) is amended as follows.

(2) In subsection (1), after paragraph (a) there is inserted—

“(aa) in any case where subsection (1A) so requires, by the making of such payments as are mentioned in that subsection,”.

(3) After that subsection there is inserted—

“(1A) In the case of a personal pension scheme, where the member so elects, effect shall be given to his protected rights—

(a) during the interim period, by the making of payments under an interim arrangement which—

(i) complies with section 28A,

(ii) satisfies such conditions as may be prescribed, and

(b) at the end of the interim period, in such of the ways permitted by the following subsections as the rules of the scheme may specify.”

(4) In subsection (3)—

(a) in paragraph (b), after “the member” there is inserted “or, where section 28A(2) applies, the member’s widow or widower”, and

(b) in the words following that paragraph, after “subsection” there is inserted “(1A)(a) or”.

(5) In subsection (4)(a), for the words from “65” to the end there is substituted— “65 or such later date as has been agreed by him, or

(ii) in the case of a personal pension scheme, where the member has elected to receive payments under an interim arrangement, the date by reference to which the member elects to terminate that arrangement, and otherwise such date as has been agreed by him and is not earlier than his 60th birthday nor later than his 75th birthday.”

(6) In subsection (5), after “subsection” there is inserted “(1A)”.

(7) After subsection (7) there is added—

“(8) In this section and sections 28A, 28B and 29—

• “the interim period” means the period beginning with the starting date in relation to the member in question and ending with the termination date;

• “the starting date” means the date, which must not be earlier than the member’s 60th birthday, by reference to which the member elects to begin to receive payments under the interim arrangement;

• “the termination date” means the date by reference to which the member (or, where section 28A(2) applies, the member’s widow or widower) elects to terminate the interim arrangement, and that date must be not later than—

  (i)

  the member’s 75th birthday, or

  (ii)

  where section 28A(2) applies, the earlier of the member’s widow or widower’s 75th birthday and the 75th anniversary of the member’s birth.”