The following Pensions guidance note provides comprehensive and up to date legal information covering:
ARCHIVED. This Practice Note has been archived and is not maintained.
This Practice Note looks at how pension schemes are affected by the revised statutory definition of money purchase benefits in the Pensions Schemes Act 1993 (PSA 1993), which was brought into force by the Pensions Act 2011, s 29 on 24 July 2014.
For further information on the background to the revised statutory definition, see Practice Note: Money purchase benefits—the statutory definition.
In this Practice Note, references to the trustees of a scheme also include the managers of a scheme.
The statutory definition of money purchase benefits was amended by provisions in the Pensions Act 2011, s 29 ('section 29'). Section 29 came into force on 24 July 2014 with retrospective effect to 1 January 1997.
Following consultation, the government published two sets of regulations ('the Transitional Regulations') that limit the impact of the retrospective effect of section 29 and avoid schemes having to revisit all past actions since 1 January 1997 where certain benefits have been treated as money purchase in the past but will no longer be money purchase under the revised definition. They are:
the Pensions Act 2011(Transitional, Consequential and Supplementary Provisions) Regulations 2014, SI 2014/1711, and
the Pensions Act 2011(Consequential and Supplementary Provisions) Regulations
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