Statutory Instruments
2006. No. 138
INCOME TAX
The Pension Schemes (Reduction in Pension Rates) Regulations 2006
Made
25th January 2006
Laid before the House of Commons
26th January 2006
Coming into force
6th April 2006
Citation, commencement and interpretation
1. —(1) These Regulations may be cited as the Pension Schemes (Reduction in Pension Rates) Regulations 2006 and shall come into force on 6th April 2006.
(2) In these Regulations a reference, without more, to a paragraph is a reference to a paragraph of Schedule 28 of the Finance Act 2004.
Forfeiture of entitlement to pension — prescribed circumstances
2. —(1) For the purposes of paragraph 2(4)(e) (forfeiture of entitlement to pension) the prescribed circumstances are where forfeiture of a pension has been permitted —
(a) under section 92(2) or 93 of the Pensions Act 1995( 3 ) (“the 1995 Act”) providing that the member meets the condition set out in sub-paragraph 2(2);
(b) under section 92(4) or (5) of the 1995 Act;
(c) under Article 90(4) or (5) or 91 of the Pensions (Northern Ireland) Order 1995( 4 );
(d) in any of the circumstances prescribed by the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc. ) Regulations 1997( 5 ) or the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997( 6 ).
(2) The condition referred to in sub-paragraph 2(1)(a) is that the member is not connected with—
(a) the sponsoring employer of the scheme in respect of which the scheme pension is payable (“the employer”); or
(b) a person who is connected with the employer.
(3) Section 839 of ICTA 1988 applies to determine whether persons are connected for the purposes of paragraph (2) of this regulation.
Reduction of pension — prescribed circumstances
3. For the purposes of paragraph 2(4)(h) (reduction of the pension in any other circumstances prescribed by regulations) the prescribed circumstances are where the amount of pension payable to a member has been reduced under any of the following provisions—
(a) section 138(2) of the Pensions Act 2004( 7 ) (payment of scheme benefits);
(b) article 122(2) of the Pensions (Northern Ireland) Order 2005( 8 );
(c) paragraph 14(3) or 15(3) (guaranteed minimum pension etc ) of Schedule 5 to the Gender Recognition Act 2004( 9 ).
Paul Gray
Mike Eland
Two of the Commissioners for Her Majesty’s Revenue and Customs
25th January 2006
2004 c. 12 . Paragraphs (e) and (h) were inserted into paragraph 2(4) by paragraph 11 of Schedule 10 to the Finance Act 2005 c. 7 .
The functions of the Commissioners of Inland Revenue (“the former Commissioners”) were transferred to the Commissioners for Her Majesty’s Revenue and Customs (“the new Commissioners”) by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 11) . Section 50(1) provides that, so far as appropriate in consequence of section 5, references to the former Commissioners are to be read as references to the new Commissioners.