The Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005

Articles 184 and 186

SCHEDULE 4 RECOVERY FROM PENSION SCHEMES

Interpretation

1.  In this Schedule—

“destination arrangement” means a pension arrangement under which some or all of the rights are derived, directly or indirectly, from a pension sharing transaction;

“pension recovery order” means a recovery order made by virtue of article 184(2);

“pension sharing transaction” means an order or provision falling within section 28(1) of the Welfare Reform and Pensions Act 1999(1) (activation of pension sharing) or article 25(1) of the Welfare Reform and Pensions (Northern Ireland) Order 1999(2) (activation of pension sharing);

“relevant person” means the person whose rights under a pension scheme are the subject of a pension recovery order; and

“valuation date” means a date within the period prescribed by paragraph 5 in respect of which the trustees or managers of the pension scheme decide to value the relevant person’s pension rights in accordance with paragraph 2 or 3.

Calculation and verification of the value of rights under pension schemes

2.—(1) This paragraph applies where the High Court or the Court of Session makes a pension recovery order, other than in respect of rights derived from a pension sharing transaction under a destination arrangement in a pension scheme.

(2) The trustees or managers of the pension scheme in respect of which the pension recovery order has been made must calculate and verify the cash equivalent of the value at the valuation date of the rights which are the subject of the pension recovery order and must pay to the trustee for civil recovery a sum equal to that cash equivalent.

(3) In relation to the calculation and verification by the trustees or managers of the cash equivalent referred to in sub-paragraph (2)—

(a) in the case of a pension scheme wholly or mainly administered in England and Wales, regulation 3 of the Pensions on Divorce etc. (Provision of Information) Regulations 2000(3) (information about pensions and divorce: valuation of pension benefits), except paragraph (2) thereof, shall have effect as it has effect for the valuation of benefits in connection with the supply of information in connection with domestic and overseas divorce etc. in England and Wales, with the modification that for “the date on which the request for valuation was received” in each place where it appears in that regulation, there shall be substituted “the valuation date for the purposes of Schedule 4 to the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005”;

(b) in the case of a pension scheme wholly or mainly administered in Scotland, regulation 3 of the Divorce etc. (Pensions) (Scotland) Regulations 2000(4) (valuation), except paragraph (11) thereof, shall have effect as it has effect for the valuation of benefits in connection with the supply of information in connection with divorce in Scotland, with the modification that for “the relevant date” in each place where it appears in that regulation, there shall be substituted “the valuation date for the purposes of Schedule 4 to the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005”; and

(c) in the case of a pension scheme wholly or mainly administered in Northern Ireland, regulation 3 of the Pensions on Divorce etc. (Provision of Information) Regulations (Northern Ireland) 2000(5) (information about pensions on divorce: valuation of pension benefits), except paragraph (2) thereof, shall have effect as it has effect for the valuation of benefits in connection with the supply of information in connection with domestic and overseas divorce etc. in Northern Ireland, with the modification that, for “the date on which the request for the valuation was received” in each place where it appears in that regulation, there shall be substituted “the valuation date for the purposes of Schedule 4 to the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005.”

Calculation and verification of the value of rights under destination arrangements

3.—(1) This paragraph applies where the High Court or the Court of Session makes a pension recovery order in respect of rights derived from a pension sharing transaction under a destination arrangement in a pension scheme.

(2) The trustees or managers of the pension scheme in respect of which the pension recovery order has been made must calculate and verify the cash equivalent of the value at the valuation date of the rights which are the subject of the pension recovery order and must pay to the trustee for civil recovery a sum equal to that cash equivalent.

(3) In relation to the calculation and verification by the trustees or managers of the cash equivalent referred to in sub-paragraph (2)—

(a) in the case of a pension arrangement in a scheme that is wholly or mainly administered in either England and Wales or Scotland, regulation 24 of the Pension Sharing (Pension Credit Benefit) Regulations 2000(6) (manner of calculation and verification of cash equivalents) shall have effect as it has effect for the calculation and verification of pension credit for the purposes of those Regulations; and

(b) in the case of a pension arrangement in a scheme that is wholly or mainly administered in Northern Ireland, regulation 24 of the Pension Sharing (Pension Credit and Benefit) Regulations (Northern Ireland) 2000(7) (manner of calculation and verification of cash equivalents) shall have effect as it has effect for the calculation and verification of pension credit for the purposes of those Regulations.

Approval of manner of calculation and verification of the value of rights

4.—(1) This paragraph applies where the relevant person is also a trustee or manager of the pension scheme in respect of which the pension recovery order has been made.

(2) When the trustees or managers of the pension scheme have, under paragraph 2 or 3, calculated and verified the value of the rights which are the subject of a pension recovery order, the manner in which the trustees or managers have calculated and verified the value of the rights must be approved by—

(a) a Fellow of the Institute of Actuaries(8); or

(b) a Fellow of the Faculty of Actuaries(9).

(3) Where the person referred to in sub-paragraph (2) is not able to approve the manner in which the trustees or managers have calculated and verified the value of the rights which are the subject of a pension recovery order, he must give notice in writing of that fact to the trustee for civil recovery and the trustees or managers of the scheme.

(4) Where the trustees or managers of the scheme have been given notice under sub-paragraph (3), they must re-calculate and re-verify the value of the rights which are the subject of a pension recovery order for the purposes of paragraph 2 or 3.

Time for compliance with a pension recovery order

5.—(1) In this paragraph, “the prescribed period” means the period prescribed for the purposes of article 184(2)(a).

(2) Subject to sub-paragraphs (3) and (4), the prescribed period is the period of 60 days beginning on the day on which the pension recovery order is made.

(3) Where an application for permission to appeal the pension recovery order is made within the period referred to in sub-paragraph (2), the prescribed period is the period of 60 days beginning on—

(a) the day on which permission to appeal is finally refused;

(b) the day on which the appeal is withdrawn; or

(c) the day on which the appeal is dismissed,

as the case may be.

(4) Where the person referred to in paragraph 4(2) gives notice, in accordance with paragraph 4(3) and within the period referred to in sub-paragraph (2), to the trustee for civil recovery and trustees or managers of the scheme that he is unable to approve the manner in which the trustees or managers have calculated the value of the rights which are the subject of the pension recovery order, the prescribed period is the period of 60 days beginning on the day on which such notice is given.

(1)

1999 c. 30.

(2)

S.I. 1999/3147 (N.I. 11).

(3)

S.I. 2000/1048.

(4)

S.S.I. 2000/112; to which there are amendments not relevant to this Order.

(5)

S.R. 2000/142; to which there are amendments not relevant to this Order.

(6)

S.I. 2000/1054.

(7)

S.R. 2000/146 as amended by S.R. 2000/335.

(8)

The Institute of Actuaries is at Staple Inn Hall, High Holborn, London WC1V 7QJ.

(9)

The Faculty of Actuaries is at Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP.