Q&As

Is a pension scheme obliged to produce a chair’s statement where all scheme benefits are defined benefits apart from money purchase benefits provided in respect of Additional Voluntary Contributions (AVCs) and benefits provided in respect of a transfer in where the transfer value has been invested in the scheme’s AVC fund to provide money purchase benefits?

read titleRead full title
Published on LexisPSL on 11/11/2019

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Is a pension scheme obliged to produce a chair’s statement where all scheme benefits are defined benefits apart from money purchase benefits provided in respect of Additional Voluntary Contributions (AVCs) and benefits provided in respect of a transfer in where the transfer value has been invested in the scheme’s AVC fund to provide money purchase benefits?

As described in Practice Note: The DC chair's statement—the pension requirements, the requirement to produce a chair’s statement applies to ‘relevant schemes’.

The legislative definition of ‘relevant scheme’ (found in the Occupational Pension Schemes (Scheme Administration) Regulations 1996, SI 1996/1715, reg 1(2) and introduced by the Occupational Pension Schemes (Charges and Governance) Regulations 2015, SI 2015/879) makes it clear that a ‘scheme which provides no money purchase benefits other than benefits which are attributable to additional voluntary contributions’ (AVCs) is not a relevant scheme.

Accordingly, a scheme whose only money purchase benefits are those falling within limb (a) of your question (ie money purchase benefits provided in respect of AVCs) is not a relevant scheme.

Whether a scheme whose only money purchase benefits are

Related documents:

Popular documents