PENSION SCHEMES ACT 1993 (APPLICATION) (AMENDMENT) ORDER 2014
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1 Pension Shemes At 1993 (Appliation) (Amendment) Order 2014 Artile 1 Statutory Doument No. 2014/0347 Pension Shemes At 1995 PENSION SCHEMES ACT 1993 (APPLICATION) (AMENDMENT) ORDER 2014 Approved by Tynwald: 20 th January 2015 Coming into Operation in aordane with artile 2 The Treasury makes the following Order under setions 1 and 2 of the Pension Shemes At PART 1 INTRODUCTORY 1 Title This Order is the Pension Shemes At 1993 (Appliation) (Amendment) Order Commenement If approved by Tynwald, this Order omes into operation on the day after its approval by Tynwald 1. 3 Appliation (1) Part 2 applies to a person who, on or after the date this Order omes into operation, makes a relevant appliation. (2) Part 3 applies to a person who, on or after the date this Order omes into operation, gives notie under setion 101AD 2 (exerise of right under setion 101AB) for the purpose of exerising that person s right under setion 101AB 3 (right to ash transfer sum and ontribution refund). (3) In paragraph (1) relevant appliation has the meaning given in setion 94(2) (right to ash equivalent). 1 Tynwald approval is required by setion 1(4) of the Pension Shemes At Setion 101AD inserted by setion 264 of the Pensions At 2004 (see SD 220/05). 3 Setion 101AB inserted by setion 264 of the Pensions At 2004 (see SD 220/05). SD No. 2014/0347 Page 1
2 Artile 4 Pension Shemes At 1993 (Appliation) (Amendment) Order 2014 (4) In this artile a referene to a numbered setion is to the setion of the Pension Shemes At as it has effet in the Island 5 bearing that number. PART 2 CASH EQUIVALENTS 4 Amendment of the Pension Shemes At 1993 (Appliation) Order 1995 (1) The Shedule to the Pension Shemes At 1993 (Appliation) Order is amended as follows. (2) In the entry relating to setion 95 (ways of taking right to ash equivalent) at the start of subsetion (1) 7 insert «Subjet to subsetions (2A) to (2G),»; and after subsetion (2) insert «(2A) This subsetion applies to a member (M) of a publi setor pension sheme who makes an appliation under subsetion (1) to the managers of the sheme requiring them to use the guaranteed ash equivalent to whih M has aquired a right in the way speified in subsetion (2) M hooses. (2B) (2C) (2D) (2E) If subsetion (2A) applies to M, M may only take that guaranteed ash equivalent in the way M hooses if the managers of the sheme give their onsent to M doing so. The managers of the sheme must give their onsent if M requires them to use that guaranteed ash equivalent in any of the ways speified in subsetions (2D) to (2F). The way is for aquiring transfer redits under the rules of another oupational pension sheme whih has tax-approval; or is a registered pension sheme under Part 4 of the Finane At (of Parliament). The way is for aquiring transfer redits under the rules of another oupational pension sheme whih is a publi servie pension sheme; a publi servie pension sheme within the meaning of setion 1 of the Pension Shemes At (as it has effet See SD 531/95. 6 The Shedule sets out the Pension Shemes At 1993 as it has effet in the Island. 7 Setion 95(1) amended by paragraph 3 of Shedule 6 to the Pensions At 1995 (see SD 17/06) Page 2 SD No. 2014/0347
3 Pension Shemes At 1993 (Appliation) (Amendment) Order 2014 Artile 5 (2F) (2G) () in Great Britain) or setion 1 of the Pension Shemes (Northern Ireland) At ; or a pension sheme analogous to one referred to in paragraph or existing outside the Island and the United Kingdom whih is a qualifying reognised overseas pension sheme for the purposes of Part 4 of the Finane At 2004 (of Parliament). The way is for aquiring transfer redits under the rules of an oupational or personal pension sheme on the making of a pension sharing order under Part 2 of the Matrimonial Proeedings At 2003 or Part 4 of Shedule 5 to the Civil Partnership At In subsetion (2A) publi setor pension sheme means a sheme made, or treated as having been made, under the Publi Setor Pensions At 2011.». (3) In the entry relating to setion 99 (trustees duties after exerise of option) in subsetion (2) after this setion insert «and setion 95(2A) to (2G)». PART 3 CASH TRANSFER SUMS 5 Further amendment of the Pension Shemes At 1993 (Appliation) Order 1995 (1) The Shedule to the Pension Shemes At 1993 (Appliation) Order 1995 is further amended as follows. (2) In the entry relating to setion 101AD (exerise of right under setion 101AB) at the start of subsetion (2) insert «Subjet to setion 101AE(2A) to (2G),». (3) In the entry relating to setion 101AE 11 (permitted ways of using ash transfer sum) after subsetion (2) insert «(2A) This subsetion applies to a member (M) of a publi setor pension sheme who gives notie under setion 101AD for the purpose of exerising a right to a ash transfer sum whih M has aquired. (2B) If subsetion (2A) applies to M, that ash transfer sum may only be used in the way M states M requires it to be used if the managers of the sheme give their onsent to it being used in that way Setion 101AE inserted by setion 264 of the Pensions At 2004 (see SD 220/05). SD No. 2014/0347 Page 3
4 Artile 5 Pension Shemes At 1993 (Appliation) (Amendment) Order 2014 (2C) (2D) (2E) (2F) (2G) The managers of the sheme must give their onsent if M states M requires it to be used in any of the ways speified in subsetions (2D) to (2F). The way is for aquiring transfer redits under the rules of another oupational pension sheme whih has tax-approval; or is a registered pension sheme under Part 4 of the Finane At 2004 (of Parliament). The way is for aquiring transfer redits under the rules of another oupational pension sheme whih is () a publi servie pension sheme; a publi servie pension sheme within the meaning of setion 1 of the Pension Shemes At 1993 (as it has effet in Great Britain) or the Pension Shemes (Northern Ireland) At 1993; or a pension sheme analogous to one referred to in paragraph or existing outside the Island and the United Kingdom whih is a qualifying reognised overseas pension sheme for the purposes Part 4 of the Finane At 2004 (of Parliament). The way is for aquiring transfer redits under the rules of an oupational or personal pension sheme on the making of a pension sharing order under Part 4 of the Matrimonial Proeedings At 2003 or Part 4 of Shedule 5 to the Civil Partnership At In subsetion (2A) publi setor pension sheme has the meaning given in setion 95(2G).». (4) In the entry relating to setion 101AG (duties of trustees or managers following exerise of right) in subsetion (2) after sum insert «, subjet to setion 101AE(2A) to (2G)». MADE 12 TH NOVEMBER 2014 W E TEARE Minister for the Treasury Page 4 SD No. 2014/0347
5 Pension Shemes At 1993 (Appliation) (Amendment) Order 2014 Explanatory Note EXPLANATORY NOTE (This note is not part of the Order) This Order amends the Pension Shemes At 1993 as it has effet in the Island ( the 1993 At ) to introdue new onditions to be satisfied before members of publi setor pension shemes who leave pensionable servie before normal pension age may take the ash equivalent of benefits arued to them under the sheme in the way they have hosen. Similar provision is made in relation to the using of ash transfer sums representing the benefits that would have arued to members of publi setor pension shemes had they been in pensionable servie for at least 2 years or transferred rights under personal pension sheme into the sheme. For the member to take a ash equivalent or use a ash transfer sum in the way hosen the managers of the transferring sheme must give their onsent to the member doing so. However, the managers must give their onsent if the member wants to take a ash equivalent or use a ash transfer sum to aquire transfer redits under another oupational pension sheme whih is either approved by the Assessor of Inome Tax or is a registered pension sheme under Part 4 of the Finane At 2004 (of Parliament) or is a publi servie pension sheme, inluding one outside the Island and the United Kingdom subjet to onditions. The managers must also onsent if the member wants to take a ash equivalent or use a ash transfer sum to aquire transfer redits under another oupational or personal pension sheme on the making of a pension sharing order by the ourt. Consequential amendment is also made to the 1993 At. Part 1 (introdutory) provides the Order s title, ommenement and appliation provisions. Part 2 (ash equivalents) amends the 1993 At in relation to the way rights to ash equivalents under publi setor pension shemes may be taken and Part 3 further amends the 1993 At in relation to the way ash transfer sums under those shemes may be used. SD No. 2014/0347 Page 5
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