Citation, commencement and interpretation

1. —(1) These Regulations may be cited as the Registered Pension Schemes (Relevant Annuities) Regulations 2006 and shall come into force on 6th April 2006.

(2) In these Regulations “the Act” means the Finance Act 2004.

Definition of “relevant annuity”

2. For the purposes of Part 4 of the Act (pension schemes etc. ) a “relevant annuity” is a level single life annuity without a guaranteed term.

Definition of “annual amount”

3. —(1) For the purposes of Part 4 of the Act the “annual amount” of a relevant annuity is the rate of annual income which the tables, published for this purpose by the Government Actuary’s Department, show as available if—

(a) a relevant annuity were purchased by the application of the sums and assets representing the member’s pension fund valued at the relevant date; and

(b) the purchaser were the same age and sex as the member or dependant (but in any case where that age is greater than 75, it shall be treated as 75).

(2) For the purposes of paragraph (1) the “relevant date” is—

(a) for the first unsecured pension year falling within a reference period—

(i) the nominated date, as set out in paragraph 10(3)(a) or 24(3)(a) (as the case requires); or

(ii) if there has been an additional fund designation made during that year, the date on which that designation was made;

(b) for each other unsecured pension year falling within a reference period, the date found in accordance with paragraph 10(4) or 24(4) (as the case requires);

(c) for the first alternatively secured pension year, the date found in accordance with paragraph 13(1) or 27(1) (as the case requires) ; and

(d) for each other alternatively secured pension year, the date found in accordance with paragraph 13(3) or 27(3) (as the case requires).

In sub-paragraphs (a) to (d) references to numbered paragraphs are to the paragraphs of Schedule 28 to the Act.