Declaration of Trust and General Rules
Transcript of Declaration of Trust and General Rules
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Stanplan A
Declaration of Trust and General Rules
(incorporating amendments up to
25 January 2019)
IMPORTANT
Please read and keep
for future reference
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Stanplan A
Declaration of Trust and
General Rules
Note
By a Deed of Assumption and Conveyance dated 18 June 1982 Standard Life Pension Funds Limited
assumed Standard Life Trustee Company Limited as Trustee of Stanplan A and resigned as Trustee, both
with effect from midnight on 30 June 1982.
By a Deed of Assumption and Conveyance dated 2 April 2015 Standard Life Trustee Company Limited
assumed Standard Life Master Trust Co. Ltd. as Trustee of Stanplan A and resigned as Trustee, both with
effect from midnight on 5 April 2015.
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Contents
Declaration of trust
General rules
1A Interpretation 9
1B Expressions defined for use in Special Rules etc 12
1C Calculation of earnings 14
2A Applications for Benefits 14
2B Acceptance of Applications for Benefits 15
2C Scheme Employer's power to provide benefits for non-members 16
2D Payment schedules 16
3A Ordinary contributions 16
3B Additional contributions 17
3C Special contributions 17
3D Voluntary contributions 18
3E Option to stop ordinary contributions 18
3F Contributions in respect of administrative charges 18
3G Contributions in respect of a levy 18
4A Member’s death before his fund has been 18
applied to provide any retirement benefits
4B Lump sum on Member’s death before his fund has been 19
applied to provide any retirement benefits
4C Dependant's pension on Member’s death before his fund 20
has been applied to provide any retirement benefits
4D Children's pension on Member’s death before his fund 21
has been applied to provide any retirement benefits
5 Termination of Pensionable Service 21
6A Retirement 23
6B Lump sum on retirement 24
6C Pension on retirement 24
7A Pension on death after taking retirement benefits 24
7B Other death benefits 25
8A Transfer of assets into a Fund 25
8B Transfer of assets to another scheme 26
8C Transfer of assets to an Insurer 27
8D Option to have a cash equivalent applied 27
9A Provisions affecting pensions payable 27
9B Automatic adjustments in pensions payable 28
10 Transitional rights 29
11 Miscellaneous provisions 29
12A Reduction or suspension of contributions 31
12B Employer ceasing to contribute 31
12C Termination of Funds 31
13 Pension Sharing on divorce 32
January 2019
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Declaration of Trust
By Standard Life Pension Funds Limited
a company incorporated under the Companies Act 1948 and having its Registered Office at Number Three
George Street, Edinburgh.
Whereas it is desired to set up a plan with the main object of providing benefits on retirement for selected
employees of any employer who wishes to participate in the plan and benefits for the dependants of those
employees on their death;
And whereas the Trustee has agreed to act as the first trustee of the said plan;
And whereas it is right that the objects of the said plan, the conditions of membership thereof, the benefits
to be provided thereby, the powers and duties of the Trustee thereunder and other relevant matters should
be set forth in writing:
Now therefore this deed witnesses and it is hereby declared as follows -
1. In this Deed unless the context otherwise requires -
(a) “the Trustee” means the said Standard Life Pension Funds Limited and its successors in
office as trustee under this Declaration of Trust.
(b) “the Plan” means the plan the provisions of which are set out in this Declaration of Trust
and the Rules and which shall be known as “Stanplan A”.
(c) “the General Rules” means the rules annexed to this Declaration of Trust and
subscribed for the purpose of identification by Garrett Dickson, Secretary of the said
Standard Life Pension Funds Limited as the same may be amended from time to time as
herein provided.
(d) “Special Rules” means any rules in addition to or in variation of the General Rules which
may be agreed from time to time between the Trustee and a Participating Employer.
(e) “the Rules” means the General Rules and the Special Rules.
(f) “Participating Employer” means any person who or any partnership of persons or any
body corporate or unincorporate which has agreed with the Trustee to be bound by this
Declaration of Trust and the Rules and whose participation in the Plan will not prejudice
the status of the Plan as an occupational pension scheme and as a registered pension
scheme for the purposes of the Finance Act 2004.
(g) “Insurer” means an insurance company as described in section 275 of the Finance
Act 2004.
(h) “Assurance Company” means the Insurer with whom the Trustee has, from time to time,
selected as the Insurer with whom the Trustee is to effect contracts or policies in terms of
clause 7A and that, by virtue of those contracts or policies, provides administrative
services to the Trustee in respect of the Members of the Plan.
(ha) “Wholly Insured Scheme” has the same meaning as in the Occupational Pension
Schemes (Scheme Administration) Regulations 1996.
(hb) “Charges Year” means, for the purposes of the Occupational Pension Schemes
(Charges and Governance) Regulations 2015, a period of 12 months commencing on the
date on which the Member’s rights are subject to the restrictions on charges set out in
those regulations or, if that date is not a Rebate Date, the Rebate Date which is
immediately before the date on which the Member’s rights are subject to the restrictions
on charges set out in those regulations and on each subsequent anniversary of that date;
and, for the purposes of those regulations, the reference points are the Rebate Dates in
the Charges Year.
(hc) “Rebate Date” means, in relation to a Member, the date in the month set by the
Assurance Company as the date on which rebates on policy charges are applied in
respect of that Member to the contracts maintained under clause 7A.
(i) Any other words or expressions defined in the Rules shall have the meanings thereby
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given to them and the other provisions of the Rules as to interpretation shall apply also to
the interpretation of this Deed.
2. The objects of the Plan shall be -
(a) The provision of benefits on retirement at a specified age for persons who are or have
been employed by a Participating Employer.
(b) The provision of benefits on early or late retirement for such persons.
(c) The provision of pensions for the widows or dependants of such persons after their death.
(d) The provision of lump sum benefits on the deaths of such persons before retirement and
the provision of such other benefits being authorised member payments within the
meaning of section 164 of the Finance Act 2004 for such persons and their dependants in
accordance with the Rules as the Trustee may agree from time to time with a Participating
Employer.
3. The Trustee shall hold the assets of the Plan in several separate funds, each fund consisting of
some or all of the sums contributed in accordance with the Rules in respect of one member of
the Plan and his dependants all income arising therefrom and the assets from time to time
representing or resulting from the said sums and income.
4. The Trustee shall hold each fund upon irrevocable trust for the purposes set forth in this
Declaration of Trust and the Rules and shall be responsible for the discharge of all duties
imposed on a scheme administrator of a registered pension scheme under the Finance
Act 2004.
5. The Trustee shall have the whole rights, powers, privileges and immunities conferred by the law
of Scotland on trustees including the power to appoint a new trustee but the Trustee shall give
written notice of any such appointment to all Participating Employers. The Trustee shall comply
with the terms of regulations 27 and 28 of in the Occupational Pension Schemes (Scheme
Administration) Regulations 1996 on the appointment of trustees and directors to corporate
trustees.
6. For so long as the Plan is a Wholly Insured Scheme, the Trustee shall not be entitled to any
remuneration but the Trustee shall be entitled to be reimbursed by the Assurance Company for
any fees or expenses paid to its directors, any remuneration paid to any person appointed under
clause 9 and levies paid in respect of the Plan (including those payable to the Pensions
Regulator).
6A. If the Plan ceases to be a Wholly Insured Scheme, the Trustee shall be entitled to deduct from
the separate funds held for each member of the Plan and his dependants an appropriate
share of –
(i) any fees or expenses paid to its directors (or, if the Trustee is a trustee for more than
onescheme, an appropriate proportion of these fees or expenses);
(ii) any remuneration paid to any person appointed under clause 9;
(iii) levies paid in respect of the Plan (including those payable to the Pensions Regulator);
(iv) to the extent permitted under section 256 of the Pensions Act 2004, the costs of any
premiums for indemnity insurance arranged under clause 6B.
6B. If the Plan ceases to be a Wholly Insured Scheme, the Trustee may effect insurance against any
loss or damage caused by an act or omission of the Trustee, its employees and officers.
6C. The directors of the Trustee shall be entitled to retain their director fees and the charges for
business undertaken by them or their firm in relation to the Plan.
7A. The Trustee shall have the power to invest the assets of the Plan in any investments permitted
under section 34 of the Pensions Act 1995 and, in particular, in effecting and maintaining with
the Assurance Company annuity or assurance or other contracts or policies for the purposes of
securing benefits whether immediate, future, contingent or otherwise for the purposes of the
Plan payable at an office of the Assurance Company in the United Kingdom and may surrender,
make fully paid up or concur in otherwise altering any contract or policy effected under the Plan
and may place money on current or deposit account with any bank or banking house in the
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United Kingdom or with the Assurance Company, but the Trustee shall not be deemed to
guarantee the obligations of the Assurance Company under any contracts or policies and shall
not be liable for any loss arising in connection therewith:
Provided that for the purposes of this clause the expression Assurance Company shall include
(but only to the extent necessary to give effect to the Rules) any other Insurer with which an
insurance policy or annuity contract is to be effected in accordance with the Rules.
7B. Subject to clause 7C, where any contributions or transfer payments (or any amounts derived
from those contributions or payments) are applied as premiums of a contract or policy of
assurance under which the sum assured is linked to the value of units in one or more funds
established by the Assurance Company, the amount to be applied initially and from time to time
to each such fund (or strategies using such funds) shall be decided by the Member for or in
respect of whom those contributions or transfer payments were paid.
7C. Where, on becoming a Member, an individual does not exercise their powers to select funds in
terms of clause 7B, the Trustee shall apply the contributions in respect of that Member to a
default strategy chosen by the Trustee (or, where the Trustee so decides, a default strategy
chosen by the Trustee after consulting with the Participating Employer that employs the
individuals to whom it is to apply). For so long as the Plan is a Wholly Insured Scheme, those
strategies shall be chosen from the range of such strategies available under the contract or
policy of assurance effected with the Assurance Company; and, unless the Member exercises
their power to select funds or strategies, the Trustee may select a replacement strategy for
those contributions.
7D. Where a default arrangement applies to a Member in terms of the Occupational Pension
Schemes (Investment) Regulations 2005 (the ‘Investment Regulations’), the Trustee shall
comply with its obligations under regulation 2A of those regulations to review that arrangement
and may, as a result of that review, select a replacement arrangement for that Member. For so
long as the Plan is a Wholly Insured Scheme, the Trustee shall select the replacement
arrangement from the range of funds and strategies available under the contract or policy of
assurance effected with the Assurance Company.
7E. The Trustee shall have regard to its obligations under sections 35 and 36 of the Pensions Act
1995 and the Investment Regulations to obtain and consider proper advice on making and
retaining investments and on the preparation of a statement of investment principles.
7F. To the extent that a Member’s rights are subject to the restrictions on charges set out in the
Occupational Pension Schemes (Charges and Governance) Regulations 2015, the Trustee shall
comply with its obligations under those regulations.
8. The Trustee shall keep such books and records relating to the Plan as it requires in order to
satisfy the requirements of section 49 of the Pensions Act 1995.
9. The Trustee may appoint or remove any persons to act respectively as Actuary, Auditor,
Solicitor or Secretary for the purposes of the Plan and may fix the remuneration of such persons
and may vary any such appointment but no person shall be appointed to act as a professional
adviser to the Trustee unless he satisfies any prescribed requirements for that type of adviser
which are laid down in regulations made under section 47 of the Pensions Act 1995.
9A. Subject to sections 33 and 34 of the Pensions Act 1995 (and provided that no power, duty
or discretion delegated to any person who is not a Trustee entitles that person to act as a
Trustee), the Trustee may, on such terms as it considers appropriate:
(a) delegate any of its powers, duties or discretions to any person for such purpose and
for such duration as the Trustee considers appropriate;
(b) authorise any person to provide receipts or discharges.
In particular the Trustee may, on such terms and conditions as it deems appropriate, delegate
its power to exercise discretion in relation to the recipient(s) of any lump sum death benefit
payable in terms of the Rules.
Neither the Trustee nor any employee or officer of the Trustee (a "Trustee Officer") shall be
responsible for acting bona fide on the advice of any Actuary, Auditor or Solicitor or upon other
professional advice nor shall any of them be liable for any acts or omissions not due to his own
wilful act, neglect or default. For so long as the Plan is a Wholly Insured Scheme with Standard
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Life Assurance Limited as the Assurance Company, Standard Life Assurance Limited
indemnifies the Trustee and any Trustee Officer for any costs, charges, damages, expenses,
losses, penalties or taxes incurred in connection with the Plan, other than those arising as a
result of the wilful act, neglect or default of the Trustee or Trustee Officer.
If a Triggering Event occurs in relation to the Plan, the Assurance Company shall reimburse the
Trustee for their costs incurred in complying with their duties under sections 20 to 33 of the
Pension Schemes Act 2017. Notwithstanding the Triggering Event, the Assurance Company
shall continue to provide administrative services to the Trustee under the terms of the contracts
or policies between the Trustee and the Assurance Company or otherwise during the Triggering
Event Period in return for the continued collection of the charges payable under the insurance
contracts effected with the Assurance Company at the level applying immediately before that
period, and such services shall include the calculation and payment of the cash equivalent of the
accrued rights or benefits of members to another pension scheme on an individual basis or on a
collective basis as required under Continuity Option 1.
For the purposes of this clause –
(i) Continuity Option 1 has the meaning given in section 23(5) of the Pension Schemes Act
2017, in accordance with the regulations under section 24 of the Pension Schemes Act
2017.
(ii) Triggering Event and Triggering Event Period have the meanings given in section 21 of the
Pension Schemes Act 2017.
10. (a) Subject to the provisions of this Clause and the restrictions on the powers to alter
schemes contained in section 67 of the Pensions Act 1995, this Declaration of Trust and the
Rules may be amended or added to and other Rules may be substituted for them.
(b) Amendments and additions to this Declaration of Trust or to the General Rules and
substitutions for the General Rules shall be made by a deed executed by the Trustee, and
a copy of the said deed shall be given to each Participating Employer.
(c) Amendments and additions to or substitutions for Special Rules shall be made by
agreement in writing between the Trustee and the Participating Employer with which the
Special Rules were agreed and shall be intimated to such members of the Plan as are
affected by them.
(d) No amendment or addition to this Declaration of Trust or the Rules and no substitution for
the Rules shall -
(i) without the consent in writing of the beneficiary diminish any benefit which has
become payable before the effective date of the alteration or any benefit to which a
member of the Plan could become entitled if his service with the Participating
Employer terminated at that date;
(ii) vary the objects of the Plan as set out in clause 2 hereof;
(iii) except to the extent already authorised or to any further extent which may by law be
authorised, authorise payment to any Participating Employer of any part of the
assets of the Plan;
(iv) alter the provisions of this clause;
but any alteration which purports to do any of these things shall be void only to that extent:
Provided that nothing in this paragraph shall prohibit the Trustee from making any
amendment which may be necessary -
(i) to ensure that the Plan will be treated by the Inland Revenue as a registered
pension scheme within the meaning given to that expression by section 150(2) of
the Finance Act 2004; or
(ii) to ensure that the Plan conforms with the preservation requirements of Chapter I of
Part IV of the Pension Schemes Act 1993; or
(iii) to enable a Participating Employer and its employees to obtain by virtue of their
participation in the Plan exemption from or a reduction in their contributions to any
national pension scheme instituted by legislation.
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11. Nothing contained in this Declaration of Trust or in the Rules shall impose any liability on the
Trustee to take, institute, maintain or defend any legal proceedings against a Participating
Employer or the Assurance Company; and in the event of any difference arising between a
Participating Employer and a beneficiary as to the interpretation of this Declaration of Trust or
the Rules or as to the rights and obligations of the Participating Employer or of the beneficiary
under the Plan the same shall be referred to the Trustee whose determination thereof shall be
conclusive and binding.
12. The trust hereby established shall be governed by the law of Scotland and all documents
executed or promulgated in connection with the Plan shall be construed in accordance with the
law of Scotland, but any document executed by a Participating Employer in another country shall
be valid for the purposes of the Plan if executed in accordance with the requirements of the law
of that country.
In witness whereof these presents typewritten on this and the preceding three pages are sealed with the
common seal of Standard Life Pension Funds Limited and signed for and on their behalf by Sir Thomas
Gordon Waterlow one of their Directors and by Garrett Dickson their Secretary all at Edinburgh on the
Sixteenth day of July Nineteen hundred and seventy four.
T.G. WATERLOW, Director
GARRETT DICKSON, Secretary
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General Rules
1A. Interpretation
(1) In the Rules the provisions of this Rule apply unless the context otherwise requires.
(2) In the Rules the “Trust Deed” means the Declaration of Trust made by Standard Life Pension
Funds Limited and dated 16 July 1974 together with any deeds supplemental thereto.
The expressions defined in clause 1 of the Trust Deed have the same meanings as in the Trust
Deed.
“Anniversary Date” means the date on which the Member's earnings are calculated for the
purposes of the Plan being a date specified in the Special Rules or, if there are no Special
Rules, the Acceptance.
“Annual Allowance Charge” shall have the same meaning as in section 227 of the
Finance Act 2004.
“Annuity Protection Lump Sum Death Benefit” shall have the same meaning as in paragraph
16 of Schedule 29 to the Finance Act 2004.
“Appropriate Percentage” shall have the meaning given to it by section 51ZA(1)(a) of the
Pensions Act 1995.
“Automatic Enrolment Scheme” shall have the same meaning as in section 17 of the
Pensions Act 2008.
“Basic Pay” shall have the same meaning as the definition of “basic pay” in regulation 32K of
the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010.
“Charity Lump Sum Death Benefit” shall have the same meaning as in sub-paragraphs (1)
and (1A) of paragraph 18 of Schedule 29 to the Finance Act 2004.
“Civil Partnership” has the meaning given to it by the Civil Partnership Act 2004 and any
reference to ‘Civil Partner’ is to be read accordingly.
“Defined Benefits Lump Sum Death Benefit” shall have the same meaning as in paragraph
13 of Schedule 29 to the Finance Act 2004.
“Dependant” shall have the same meaning as in paragraph 15 of Schedule 28 to the Finance
Act 2004.
“Dependant’s Annuity” shall have the same meaning as in paragraph 17 of Schedule 28 to the
Finance Act 2004.
“Dependant’s Flexi-Access Drawdown Fund” shall have the same meaning as in paragraph
22A of Schedule 28 to the Finance Act 2004.
“Dependant’s Scheme Pension” shall have the same meaning as in paragraph 16 of
Schedule 28 to the Finance Act 2004.
“Dependent Children” means in relation to any person such of that person's children, adopted
children and step children and the children, adopted children and step children of his spouse or
Civil Partner as are his Dependants (including, after their birth, any such child conceived but not
born before the Member’s death).
“Disqualifying Pension Credit” shall have the same meaning as in paragraph 2(3) of
Schedule 29 to the Finance Act 2004.
“Earnings” shall have the same meaning as the definition of “earnings” in subsection (3) of
section 13 of the Pensions Act 2008.
“Employer” means in relation to any person employed by one or more of the Participating
Employers that one or more of them by which that person is employed and in relation to any
person no longer employed by any of the Participating Employers that one or more of them by
which he was last employed.
“Ex-Spouse” means an individual (including a former Civil Partner) to whom Pension Credit
Rights have been or are to be allocated following a Pension Sharing Order, agreement or
equivalent provision.
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“Ex-Spouse Participant” is an Ex-Spouse who participates in the Plan. For this purpose the
Ex-Spouse Participant must participate in the Plan either -
(a) solely for the provision of a Pension Credit Benefit, or
(b) for the wholly separate provision of a Pension Credit Benefit, where benefits accrue or
have accrued to that individual under the Plan for any other reason.
“First Requirement” means the requirements set out in paragraph (2) of regulation 32E of the
Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010.
“First Transitional Period” shall have the same meaning as in subsections (1) and (2) of
section 29 of the Pensions Act 2008.
“Flexi-Access Drawdown Fund Lump Sum Death Benefit” shall have the same meaning as
in paragraph 17A of Schedule 29 to the Finance Act 2004.
“Fund” means in relation to each Member and his Dependants that one of the several funds
held by the Trustee into which the contributions paid in respect of that Member have been paid.
“Group A Member” means, unless the Scheme Employer notifies the Trustee that an individual
is not to be so treated or the Special Rules state otherwise, a Scheme Member who was, on
5 April 2006, a Group A Member in terms of the Rules as they applied on that date and any
individual who becomes a Scheme Member after that date.
“HMRC” means HM Revenue and Customs.
“Incapacity” means that the Member is (and will continue to be) incapable of carrying on his
occupation because of physical or mental impairment.
“Index” means the general index of retail prices (all items) published by the Office for National
Statistics.
“Jobholder” shall have the same meaning as in section 1 of the Pensions Act 2008.
“Lifetime Allowance Charge” shall have the same meaning as in section 214(1) of the
Finance Act 2004.
“Lifetime Allowance Excess Lump Sum” shall have the same meaning as in paragraph 11 of
Schedule 29 to the Finance Act 2004.
“Lifetime Annuity” shall have the same meaning as in paragraph 3 of Schedule 28 to the
Finance Act 2004.
“Member” means a person who has become a member of the Plan in accordance with the
Rules and who is neither a person who has ceased to be a member of the Plan under any of its
provisions nor a person in respect of whom all the liabilities of the Trustee to pay or provide
benefits have come to an end.
“Member’s Flexi-Access Drawdown Fund” shall have the same meaning as in paragraph 8A
of Schedule 28 to the Finance Act 2004.
“Nominee” shall have the meaning given in paragraph 27A of Schedule 28 to the Finance
Act 2004.
“Nominees’ Annuity” shall have the meaning given in paragraph 27AA of Schedule 28 to the
Finance Act 2004.
“Nominee’s Flexi-Access Drawdown Fund” shall have the same meaning as in paragraph
27E of Schedule 28 to the Finance Act 2004.
“Nominee’s Fund” means the value from time to time of those funds which have been set
aside for the purchase of a pension for a Nominee.
“Normal Minimum Pension Age” shall have the same meaning as in section 279(1) of the
Finance Act 2004.
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“Normal Retirement Date” in relation to a Member means the date stated in the initial
Application for Benefits in respect of him to be his Normal Retirement Date or normal retirement
age or such new date as the Trustee may agree with the Employer and the Member and which
would have been acceptable under section (2) of Rule 2B.
“Pension Commencement Lump Sum” means a lump sum that satisfies the conditions given
in paragraph 1 of Schedule 29 to the Finance Act 2004 for being a pension commencement
lump sum.
“Pension Credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions
Act 1999 or under corresponding Northern Ireland legislation.
“Pension Credit Benefit” in relation to a scheme, means the benefits payable under the
scheme to or in respect of a person by virtue of rights under the scheme attributable (directly or
indirectly) to a Pension Credit.
“Pension Credit Rights” means rights to future benefits under a scheme which are attributable
(directly or indirectly) to a Pension Credit.
“Pension Salary Sacrifice Arrangement” means an arrangement by which a Member’s
contract of employment with the Scheme Employer is varied so as to reduce earnings that the
Member would otherwise be entitled to in respect of Service after the date of that variation.
“Pension Sharing Order” means any order or provision as is mentioned in section 28(1) of the
Welfare Reform Act, Article 25(1) of the Welfare Reform and Pensions (Northern Ireland)
Order 1999, Part 4 of Schedule 5 to the Civil Partnership Act 2004 or Part 3 of Schedule 15 to
that Act.
“Pension Sharing Rules” means Rule 13 and, unless otherwise stated, all words and
expressions defined in the Pension Sharing Rules shall have the same meanings and
interpretation in the rest of the Rules.
“Pensionable Service” shall have the meaning ascribed to it by section 70 of the Pension
Schemes Act 1993.
“Pensions Act” means the Pensions Act 1995.
“Pensionable Age” in relation to a Member means the age determined by the rules in
paragraph 1 of Schedule 4 to the Pensions Act.
“Pensions Legislation” means the Pension Schemes Act 1993, the Pensions Act 1995 and the
Pensions Act 2004.
“Permitted Maximum” is the amount which would have been the permitted maximum under
section 590C(2) of the Income and Corporation Taxes Act 1988 if that section had not been
repealed and the Treasury had made the orders required by that section, as it had effect
immediately before the repeal, in respect of the tax year 2006-2007 and each subsequent tax
year.
“Qualifying Recognised Overseas Pension Scheme” shall have the same meaning as in
section 169(2) of the Finance Act 2004.
“Qualifying Scheme” shall have the same meaning as in section 16 of the
Pensions Act 2008.
“Recognised Overseas Pension Scheme” shall have the same meaning as in section 150(8)
of the Finance Act 2004.
“Registered Pension Scheme” shall have the same meaning as in section 150(2) of the
Finance Act 2004.
“Relevant Percentage” shall have the meaning given to it by section 51(4) of the Pensions
Act 1995 as it applies to a category X pension as defined in section 51(4A) of that Act; and, for
the purposes of calculating the relevant percentage, the reference period shall be the 12 months
which ends on the last day of the third calendar month before the month in which the relevant
anniversary occurs.
“Scheme Administrator” shall have the same meaning as in section 270 of the Finance
Act 2004.
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“Scheme Employer” and “Scheme Member” mean respectively a Participating Employer and
a Member to whom the General Rules apply as added to or varied by Special Rules in which the
word “Scheme” is defined.
“Scheme Pension” shall have the same meaning as in paragraph 2 of Schedule 28 to the
Finance Act 2004.
“Second Requirement” means the requirements set out in paragraph (3) of regulation 32E of
the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010.
“Second Transitional Period” shall have the same meaning as in subsections (3) and (4) of
section 29 of the Pensions Act 2008.
“Service” means continuous service with the Employer.
“Serious Ill-health Lump Sum” shall have the same meaning as in paragraph 4 of Schedule
29 to the Finance Act 2004.
“Serious Ill-health Lump Sum Charge” shall have the same meaning as in section
205A of the Finance Act 2004
“Special Lump Sum Death Benefits Charge” shall have the same meaning as in section 206
of the Finance Act 2004.
“Third Requirement” means the requirements set out in paragraph (4) of regulation 32E of the
Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010.
“Trivial Commutation Lump Sum” shall have the same meaning as in paragraph 7A of
Schedule 29 to the Finance Act 2004 and includes a commutation payment to the Member that
is deemed to be an authorised payment by regulations made under the Finance Act 2004.
“Trivial Commutation Lump Sum Death Benefit” shall have the same meaning as in
paragraph 20 of Schedule 29 to the Finance Act 2004 and includes a commutation payment to
the member that is deemed to be an authorised payment by regulations made under the
Finance Act 2004.
“Uncrystallised Funds Lump Sum Death Benefit” shall have the same meaning as in
paragraph 15 of Schedule 29 to the Finance Act 2004.
“Uncrystallised Funds Pension Lump Sum” shall have the same meaning as in paragraph
4A of Schedule 29 to the Finance Act 2004.
“Welfare Reform Act” means the Welfare Reform and Pensions Act 1999.
“Winding-up Lump Sum” shall have the same meaning as in paragraph 10 of Schedule 29 to
the Finance Act 2004.
(3) Any reference to an employee or person employed by or in the employ or service of an
Employer shall be construed as a reference to a person who is or has been in the Service and
as including a director of that Employer.
(4) Any reference to any enactment shall be construed as a reference to that enactment as
amended or re-enacted and to any regulations made thereunder for the time being in force and
to any corresponding provisions in force in Northern Ireland.
(5) Words importing the masculine gender shall include females and the word “widow” shall include
a widower and, but not so as to confer any rights on (or in respect of) a Member whose Fund
was applied before 5 December 2005, a Civil Partner. Any reference to being married includes
being in a Civil Partnership and any reference to being unmarried excludes being in a Civil
Partnership.
(6) Words in the singular shall include the plural and words in the plural shall include the singular.
1B. Expressions defined for use in Special Rules etc.
In Special Rules, Applications and Acceptances, unless the context otherwise requires or a
different meaning is expressly given -
(a) a Member's “Total Scheme Year Earnings” means the annual equivalent of the total
emoluments received by the Member from the Employer for the year ending with the day
before the date of calculation;
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(b) a Member's “Total Tax Year Earnings” means the annual equivalent of the total
emoluments received by the Member from the Employer for the year ending on 5 April
next before the date of calculation;
(c) a Member's “Normal Scheme Year Earnings” means the sum of -
(i) the annual equivalent of the basic emoluments received by the Member from the
Employer for the year ending with the day before the date of calculation; and
(ii) the yearly average of all the emoluments (other than basic emoluments) received
by him from the Employer over the period of three years ending with the day before
the date of calculation;
(d) a Member's “Normal Tax Year Earnings” means the sum of -
(i) the annual equivalent of the basic emoluments received by the Member from the
Employer for the year ending on 5 April next before the date of calculation; and
(ii) the yearly average of all the emoluments (other than basic emoluments) received
by him from the Employer over the period of three years ending on 5 April next
before the date of calculation;
(e) a Member's “Normal Rate Earnings” means the sum of -
(i) the annual equivalent of the basic rate of the Member's emoluments from the
Employer at the date of calculation; and
(ii) the yearly average of all the emoluments (other than basic emoluments) received
by him from the Employer over the period of three years ending with the day before
the date of calculation;
(f) a Member's “Basic Scheme Year Earnings” means the annual equivalent of the basic
emoluments received by the Member from the Employer for the year ending with the day
before the date of calculation;
(g) a Member's “Basic Tax Year Earnings” means the annual equivalent of the basic
emoluments received by the Member from the Employer for the year ending on 5 April
next before the date of calculation;
(h) a Member's “Basic Rate Earnings” means the annual equivalent of the basic rate of the
Member's emoluments from the Employer at the date of calculation;
(i) a Member's “Total Pay Period Earnings” means the total emoluments received by the
Member from the Employer in the pay period ending next before the date of calculation;
(j) a Member's “Basic Pay Period Earnings” means the basic emoluments received by the
Member from the Employer in the pay period ending next before the date of calculation;
(k) a Member’s “Qualifying Earnings” means the qualifying earnings received by the
Member from the Employer (as defined for the purposes of section 13 of the
Pensions Act 2008) in the pay period ending next before the date of calculation:
Provided that –
(i) in the case of paragraphs (a), (c) and (f), if at the date of the first calculation, or, in the
case of paragraphs (b), (d) and (g), if at the date of the first or second calculation, the
Member had no such emoluments, the annual equivalent of the Member's fixed
remuneration from the Employer at that date shall be used in that calculation;
(ii) for the purposes of calculating the contributions and benefits in respect of a Group A
Member, the definitions above are to be interpreted as though the appropriate
emoluments are no greater than the Permitted Maximum.
PAGE 14 of 34
1C. Calculation of earnings
(1) Any calculation of a Member's earnings for the purposes of the Plan shall be made on the day
he becomes a Member and on each Anniversary Date thereafter, any reduction in his
emoluments owing to temporary absence from work being ignored and each calculation
determining his earnings for the purposes of the Plan until a further calculation is made:
Provided that -
(i) no calculation of a Member's earnings shall be made during a period for which no
contributions are being paid to the Plan in respect of the Member with the exception of a
period during which contributions are temporarily suspended in accordance with
Rule 12A;
(ii) where a Member in Pensionable Service is on a 'period of paid maternity absence', a
‘period of paid paternity leave’ or ‘a period of paid adoption leave’ as defined in
Schedule 5 to the Social Security Act 1989, any calculation of his earnings for the
purposes of the Plan shall be based on the earnings which he is likely to have received if
he had been working normally; and
(iii) the Trustee may agree with the Employer that, for the purposes of calculating the
ordinary contributions to be paid in respect of him, the Member's earnings shall be
calculated over a pay period or on the due date of each ordinary contribution.
(2) In determining the emoluments or remuneration to be used for any purpose of the Plan -
(a) the Trustee shall ignore all emoluments which are not treated for tax purposes as emoluments
from an office or employment and all emoluments to which a Member is not beneficially
entitled and, unless the Employer otherwise directs, all emoluments which are treated for tax
purposes as emoluments from an office or employment but which are not monetary;
(b) the Trustee shall ignore any amounts which arise from the acquisition or disposal of
shares or an interest in shares or a right to acquire shares or anything in respect of which
tax is chargeable by virtue of section 225 or section 226 of the Income Tax (Earnings and
Pensions) Act 2003 or under Chapter 3 of Part 6 of that Act;
(c) if emoluments which are to be averaged over a period of at least three years have not
been received for such a period, the Trustee shall take the yearly average over the period
for which they have been received.
2A. Applications for Benefits
(1) An initial Application for Benefits in a form to be prescribed by the Trustee may be submitted to
the Trustee by an employer in respect of any person who at the earliest date at which a
contribution falls due satisfies all the following conditions -
(a) he is or has been in receipt of emoluments which are or were treated for tax purposes as
emoluments from an office or employment with the employer;
(b) he has attained the age of 18 years;
(c) he is not within five years of his Normal Retirement Date; and
(d) his habitual place of work, under his contract of service with his Employer, is located in the
United Kingdom.
(2) In respect of any person the Trustee may at the request of the employer waive any or all of
conditions (b) and (c) of section (1) of this Rule and the further conditions, if any, specified in the
Special Rules.
(3) Notwithstanding the terms of section (1) of this Rule, where it has been agreed with the Trustee
that the Plan shall be an Automatic Enrolment Scheme in relation to Jobholders of a Scheme
Employer who satisfy the conditions specified in the Special Rules, the Scheme Employer may
submit an initial Application for Benefits for the payment of ordinary contributions at a level
intended to meet –
(a) the quality requirements under section 20 of the Pensions Act 2008; or
PAGE 15 of 34
(b) the First Requirement, Second Requirement or Third Requirement (being the
alternative requirements under section 28 of that Act);
and the Trustee shall accept that Application.
(4) Each initial Application for Benefits shall, if the Trustee so requires, state the contributions
intended to be paid, and by whom, and on what dates they are to be payable and whether for
the purposes of the Plan they are to be ordinary contributions, additional contributions, or special
contributions:
Provided that, where an applicant enters a benefit in an Application without also entering the
contribution to be paid, he shall be deemed to be offering to pay whatever contribution the
Assurance Company estimates to be necessary to secure the benefit at the Assurance
Company's normal rates; and that contribution shall be deemed to be entered in the Application.
(5) A Scheme Employer may submit an initial Application for Benefits in respect of an eligible
person on a day other than an Entry Date specified in Special Rules.
(6) Each person in respect of whom an Employer submits an initial Application for Benefits which
has been accepted shall be given notice of the essential features of the Plan.
(7) The Trustee may, in respect of a Member, accept further ordinary contributions, additional
contributions and special contributions and a request to provide additional benefits.
(8) Where it has been agreed with the Trustee that the Plan shall be a Qualifying Scheme in relation
to Jobholders of a Scheme Employer for whom ordinary contributions are being paid and who
satisfy the conditions specified in the Special Rules, the Scheme Employer may submit an
Application for Benefits for the payment of further ordinary contributions to attain a level that is
intended to meet –
(a) the quality requirements under section 20 of the Pensions Act 2008; or
(b) the First Requirement, Second Requirement or Third Requirement (being the alternative requirements under section 28 of that Act);
and the Trustee shall accept that Application.
(9) Where the Member is a Jobholder who is covered by a certificate given by the Employer under
subsection (2)(b) of section 28 of the Pensions Act 2008 and, at the end of the period covered
by the certificate, the Employer concludes that ordinary contributions have not been paid at the
required level, the Employer may submit an additional Application for Benefits to pay a special
contribution under section (7) of Rule 2A.
2B. Acceptance of Applications for Benefits
(1) The Trustee shall not accept an Application for Benefits unless it is satisfied that the Assurance
Company will underwrite at normal rates the assurances necessary to provide the benefits; and
if the Assurance Company notifies the Trustee that it will underwrite the assurances only on
special terms the Trustee shall not accept the Application until it has been modified to reflect
those special terms either by alterations initialled by the signatories or by a separate notice to
the Trustee signed by or on behalf of the Employer.
(2) The Trustee shall not accept in respect of any person an initial Application for Benefits in which
the date stated to be his Normal Retirement Date is earlier than the Normal Minimum Pension
Age or later than the day before his 75th birthday; nor shall the Trustee accept an Application for
Benefits in which the said date is earlier than the date at which the person's membership is to
commence.
(3) Subject to section (4) of this Rule each person in respect of whom an initial Application for
Benefits has been accepted shall become a Member from whichever is the later of the earliest
date specified in the Application for Benefits as a date at which a contribution falls due and the
date at which the first contribution is received by the Trustee:
PAGE 16 of 34
Provided that if the first contribution is not received by the Trustee on or before the thirtieth day
after it falls due, the Trustee may cancel the Acceptance and, if it does so, no person shall have
any claim upon the Trustee or any agent of the Trustee in respect of the benefits which might
otherwise have been payable.
(4) Where any contribution to be paid or benefit to be provided in respect of a person is determined
by Special Rules in force at the time when an initial Application for Benefits is submitted,
section (3) of this Rule shall not apply to him but the Trustee shall ensure in any such case that
the Special Rules specify when his membership is to start and provide for the issue of a
certificate of membership.
2C. Scheme Employer's power to provide benefits for non-members
(1) If the Trustee consents a Scheme Employer may pay contributions to provide benefits for or in
respect of any person who is or has been in the Service of the Scheme Employer but who is not
a Scheme Member.
(2) For the purpose of providing benefits under the foregoing section the Trustee may deem any
person to be or have been a Member for the purposes of such Rules as the Trustee and the
Employer shall agree.
(3) Where any benefit to be provided for any person under this Rule cannot be provided by means
of the foregoing section of this Rule the Trustee shall agree with the Employer the
circumstances in which the benefit is to be payable, the amount of the benefit, and the terms
and conditions on which the benefit is to be paid.
(4) Where a benefit is provided under this Rule the Trustee shall inform the beneficiary in writing of
the benefit being provided and the terms and conditions on which it will be payable, but if it
informs a person of the benefits payable in the event of his death it need not also inform the
beneficiaries.
2D. Payment schedules
(1) In the circumstances prescribed by section 87 of the Pensions Act, the Trustee shall prepare,
maintain and, from time to time, revise a payment schedule for each Participating Employer
which shows the payments which that Participating Employer and its employees have agreed to
pay to the Trustee and which satisfies the requirements of that section.
(2) If the Trustee does not receive an amount payable in accordance with a Participating Employer’s
payment schedule by its due date, the Trustee shall notify the Pensions Regulator and the
Members employed by that Participating Employer of the fact, where the Trustee believes it has
reasonable cause to do so in terms of section 88 of the Pensions Act.
3A. Ordinary contributions
(1) The ordinary contributions to be paid in respect of a Member shall be the contributions described
as ordinary contributions or ordinary payments in the Application for Benefits or, where there is
no Application for Benefits, the Acceptance issued by the Trustee.
(2) Subject to Rules 3E and 12A ordinary contributions to a Fund shall be payable at regular
intervals in the period commencing with the first due date specified in the Application for Benefits
or, where there is no Application for Benefits, the Acceptance issued by the Trustee and ending
with the last due date which occurs not later than the earliest of -
(a) the day the Member ceases to be in Pensionable Service or in the Service (by reason of
his death or otherwise);
(b) the Member’s Normal Retirement Date (or if the Member remains in Service after his
Normal Retirement Date and the Employer, the Trustee and the Member so agree, the
day he retires or is deemed to retire);
(c) the day before the Member’s 75th birthday;
(d) the day before the Member takes any benefit from the Fund;
(e) the day on which contributions are terminated in accordance with Rule 12B;
PAGE 17 of 34
(f) the day the Member becomes a ‘qualifying person’ as defined in the Occupational
Pension Schemes (Cross-border Activities) Regulations 2005;
(g) the day that the Member’s habitual place of work under his contract of service with his
Employer ceases to be located in the United Kingdom otherwise than by secondment.
For the purposes of paragraph (g) of this section, a secondment is a posting for a temporary
period where there is a definite expectation that the Member will return to work or retire in the
United Kingdom after the expiry of that period.
(3) An ordinary contribution shall be either of a fixed amount or a fixed percentage of a Member's
earnings and the Employer may pay any part or the whole of it:
Provided that unless the Trustee otherwise agrees or the Employer is making additional
contributions to the Plan in respect of the Member, the Member shall not pay the whole of the
ordinary contribution under the Plan.
(4) Where part or the whole of the ordinary contribution is to be paid by the Member, the Employer
shall pay to the Trustee on the due date the whole of the ordinary contribution and shall arrange
to recover the amount to be contributed by the Member by deduction from his remuneration or
otherwise without recourse to the Trustee.
(5) Where an ordinary contribution is an amount per annum payable on one date in each year and a
period for which that contribution is due will be less than one year, then the Trustee may accept
a proportionate amount instead of the full amount.
3B. Additional contributions
(1) An Employer may pay additional contributions in order to provide additional benefits payable on
the death of a Member while in the Service on or before his Normal Retirement Date (or if the
Member remains in Service after his Normal Retirement Date and the Employer so agrees, on or
before his Pensionable Age) and such additional benefits may be in the form of a lump sum or in
the form of a pension for one or more of the Member's Dependants or in the form of both.
(2) The Trustee shall inform the Employer of the amount of the additional contribution payable
under the foregoing section and that contribution shall be due on the same day as an ordinary
contribution is or would have been payable, and shall, subject to section (3) of this Rule, be
payable for the same period or for such shorter period as the Employer requires the additional
death benefit to be provided.
(3) Where the Assurance Company, under the terms of the policies effected or to be effected by the
Trustee, exercises a right to refuse further additional contributions in respect of a Member or the
Member becomes a ‘qualifying person’ as defined in the Occupational Pension Schemes
(Cross-border Activities) Regulations 2005, the additional contributions payable in respect of that
Member shall terminate and the related additional benefits shall cease to be payable under the
Plan.
(4) Where the benefits to be provided in respect of a Member by the contributions to be paid by the
Employer are benefits payable only on the death of the Member in the Service, the word
“additional” in this Rule shall be read only as identifying the type of contributions or benefit and
not as requiring any other contributions or benefits to be paid in respect of the Member.
3C. Special contributions
(1) The Trustee shall not accept a special contribution unless it is satisfied that the special
contribution is being paid for a purpose within the objects of the Plan.
(2) Special contributions may be paid at any time but no special contribution shall be paid by a
Member into the Fund unless contributions are being paid to that Fund in respect of him or the
Trustee otherwise agrees.
(3) Where a person has already received a benefit under the Rules, no special contribution shall be
paid to augment his benefits unless the Assurance Company is willing to provide benefits in
respect of that contribution.
(4) If the Trustee accepts an Application for Benefits which states that a special contribution is to be
paid, the special contribution shall be due on the date or dates specified in the Application or, if
no date is specified, on the day following the issue of the Acceptance.
PAGE 18 of 34
3D. Voluntary contributions
(1) Subject to the provisions of this Rule, a Member may pay ordinary contributions in excess of the
contributions which the Employer requires him to pay as a condition of his membership of the
Plan and may pay additional or special contributions in terms of Rule 3B or Rule 3C, and in this
Rule the expression “voluntary contributions” means those contributions.
(2) In any year commencing on a 6 April and ending on a 5 April a Member's total voluntary
contributions shall not be less than the minimum annual premium acceptable to the Assurance
Company as the premium of a policy for this purpose.
(3) The Member shall give three months' notice to the Trustee, or such shorter period as is
acceptable to the Trustee, of his intention to pay a voluntary contribution or pay voluntary
contributions at a specified rate or to vary that rate.
3E. Option to stop ordinary contributions
(1) While in the Service a Member may give notice to the Employer that he wishes no further
ordinary contributions to be paid into the Plan in respect of him.
(2) Any such notice shall be given in writing and shall specify the last date on which ordinary
contributions (other than contributions due before the date the notice was given) shall be paid
but that date shall not be earlier than the date at which the notice is delivered to the Employer.
(3) An Employer who has been given such a notice shall inform the Trustee forthwith of -
(a) the last date at which an ordinary contribution is to be paid;
(b) the additional contributions (if any) that are to be paid in respect of the Member or the
benefits (if any) that are to be payable on the death of the Member in the Service on or
before his Normal Retirement Date;
and the Trustee shall inform the Member of any benefits that are to be payable on his death.
3F. Contributions in respect of administrative charges
A Scheme Employer shall pay such contributions as are necessary to meet the administrative
charges payable by the Trustee to the Assurance Company.
3G. Contributions in respect of a levy
If the Trustee so requires, a Participating Employer shall pay such contributions as are
necessary to meet any levy payable by the Trustee in respect of those Members in relation to
which that Participating Employer is the Employer.
4A. Member’s death before his Fund has been applied to provide any retirement benefits
(1) If a Member dies before his Fund has been applied to provide any retirement benefits in
accordance with Rule 6A, the Trustee shall apply the Fund -
(a) in paying a lump sum death benefit in accordance with Rule 4B;
(b) in securing a pension for one or more of the Member's Dependants or Nominees payable
in accordance with Rule 4C;
(c) in securing a pension or pensions for the Member's Dependent Children payable in accordance with Rule 4D.
(2) Where part of the Fund is to be applied to secure a pension under paragraphs (a), (b) or (c) of
section (2) of Rule 4C or 4D, the Trustee shall, subject to section (3) of this Rule, provide a
Dependant’s Scheme Pension and secure that pension by purchasing an annuity from the
Assurance Company on such terms that meet the conditions set out in paragraph 16 of
Schedule 28 to the Finance Act 2004.
PAGE 19 of 34
(3) Where part of the Fund is to be applied to secure a pension under paragraph (c) of section (2) of
Rule 4C or 4D, the Dependant, Nominee or Dependent Child (or the person with parental
responsibility for them) may direct the Trustee to secure their pension by purchasing a
Dependant’s Annuity from an Insurer of the Dependant’s choice on such terms that meet the
conditions set out in paragraph 17 of Schedule 28 to the Finance Act 2004 (or a Nominee’s
Annuity from an Insurer of the Nominee’s choice on such terms that meet the conditions set out
in paragraph 27AA of Schedule 28 to the Finance Act 2004).
4B. Lump sum on Member’s death before his Fund has been applied to provide any retirement benefits
(1) Subject to section (3) of this Rule, if a Member dies before his Fund has been applied to provide
any retirement benefits in accordance with Rule 6A, there shall be payable out of the Fund one
or more Defined Benefits Lump Sum Death Benefits, Uncrystallised Funds Lump Sum Death
Benefits or, where the conditions set out in sub-paragraph (1A) of paragraph 18 of Schedule 29
to the Finance Act 2004 are satisfied, Charity Lump Sum Death Benefits of the amounts
specified in section (3) or section (6) of this Rule.
(2) The amount available to apply under this Rule shall be the sum of the payments made into the
Fund as a result of the Member's death, less the amounts which the Trustee requires to enable it
to secure any pensions payable under paragraphs (a) and (b) of section (2) of Rules 4C and 4D.
(3) Subject to section (6) of this Rule, the amount available for the payment of a Defined Benefits
Lump Sum Death Benefit or an Uncrystallised Funds Lump Sum Death Benefit shall be paid by
the Trustee to or applied by the Trustee for the benefit of such one or more of the Member's
beneficiaries and in such proportions as the Employer having absolute discretion may within
eighteen months of the Member's death in writing direct:
Provided that –
(i) where a Member had left Pensionable Service before his death, the
power conferred on the Employer by this section shall be exercisable by the Trustee;
(ii) where the Trustee does not receive a direction or any such direction does not deal with
the whole of any death benefit payable, the Trustee shall apply the remaining benefit to or
for the benefit of such one or more of the Member's beneficiaries and in such proportions
as the Trustee in its absolute discretion shall decide;
(iii) where a Member dies on or after his 75th birthday, any lump sum will be reduced by the
Special Lump Sum Death Benefits Charge;
(iv) where the beneficiary is a Dependant or a Dependent Child, they (or the person with
parental responsibility for them) direct the Trustee, within 30 days from the date that they
are advised that the sum is available, to apply all or part of their death benefit to secure a
pension for them under paragraph (c) of section (2) of Rule 4C or 4D or to set up a
Dependant’s Flexi-Access Drawdown Fund and then transfer that Fund under Rule 8B;
(v) where the beneficiary is a Nominee, they (or the person with parental responsibility for
them) may request the Trustee, within 30 days from the date that they are advised that the
sum is available, to apply all or part of their death benefit to set up a Nominee’s Flexi-
Access Drawdown Fund and then transfer that Fund under Rule 8B.
(4) In respect of a Member who dies before his 75th birthday, if by the day before the second
anniversary of the earlier to occur of –
(a) the day the Trustee first knew of the Member’s death; and
(b) the day on which the Trustee could first reasonably be expected to have known of the
Member's death;
the Trustee has an amount available under this Rule for which theTrustee -
(i) received a direction from the Employer in accordance with section (3) of this Rule (or has
exercised its discretion under proviso (ii) to section (3) of this Rule), but the Trustee has been
unable to pay that amount, the Trustee shall hold the unpaid benefit in a separate account
outside the Plan until the Trustee can pay the benefit to the beneficiary or beneficiaries already
selected; or
PAGE 20 of 34
(ii) has not received a direction from the Employer in accordance with section (3) of this Rule
(and the Trustee has been unable to exercise its discretion under proviso (ii) to section (3)
of this Rule), the Trustee shall, in such proportions as the Trustee shall decide, apply that
amount in securing a pension for one or more of the Member’s Dependants, Nominees or
Dependent Children payable in accordance with Rule 4C or Rule 4D or, if the Dependant,
Nominee or Dependent Child (or the person with parental responsibility for them) so
requests, in setting up a Dependant’s Flexi-Access Drawdown Fund or Nominee’s Flexi-
Access Drawdown Fund and then transferring that Fund under Rule 8B. If the Trustee is
unable to secure pensions or set up Flexi-Access Drawdown Funds, the available amount
shall be used to meet the administrative expenses of the Plan.
(5) For the purposes of section (3) of this Rule a Member’s beneficiaries shall mean –
(a) the Member’s spouse or Civil Partner;
(b) the Member’s grandparents;
(c) the grandparents of the Member’s spouse or Civil Partner;
(d) all descendants of the Member’s grandparents and the grandparents of the Member’s
spouse or Civil Partner;
(e) any individual who, in the opinion of the Employer, was immediately prior to the Member’s
death –
(i) in receipt of any regular payment from the Member;
(ii) wholly or partly dependent on the Member for the ordinary necessaries of life or
because of physical or mental disability;
(iii) cohabiting with the Member as if they were married to one another (and whether
they are of the same or opposite sex) provided that their finances were
interdependent with those of the Member;
(f) any individual nominated by the Member as a potential beneficiary or who is entitled to
any interest in the Member’s estate under a testamentary disposition (such as a will); and
(g) the Member’s legal personal representatives;
and for the purposes of this Rule a relationship acquired by process of legal adoption shall be as
valid as a blood relationship.
(6) Where the Member has, in writing, nominated a charity and the conditions set out in
sub-paragraph (1A) of paragraph 18 of Schedule 29 to the Finance Act 2004 are satisfied, the
Trustee may in its absolute discretion pay some or all of the lump sum as a Charity Lump Sum
Death Benefit.
4C. Dependant's pension on Member’s death before his Fund has been applied to provide any retirement benefits
(1) If a Member dies before his Fund has been applied to provide any retirement benefits in
accordance with Rule 6A and is survived by a Dependant, there shall be payable to that
Dependant out of the Fund a pension of the amount specified in section (2) of this Rule:
Provided that a Dependant who is also one of the Member's Dependent Children shall not be
treated as a Dependant for the purposes of this Rule unless the Trustee is satisfied that he was,
at the date of the Member’s death, dependent on the Member because of physical or mental
impairment.
(2) The amount per annum of the Dependant's pension referred to in section (1) of this Rule shall be
the sum of -
(a) if the Member has died in Service before his Normal Retirement Date, the amount, if any,
specified in the Acceptance or the Special Rules as the pension payable to that
Dependant;
PAGE 21 of 34
(b) the amount of the pension, if any, arranged by the Trustee for that Dependant as a result
of a transfer of assets into the Fund pursuant to Rule 8A but not specified in an
Acceptance; and
(c) the amount of the pension, if any, which the Trustee has secured for that Dependant in
accordance with section (3) or (4) of Rule 4B.
(3) Subject to Rule 9A, a pension payable under this Rule shall be paid by monthly instalments, the
first instalment falling due on the day after the Member dies and the last instalment falling due
on the last due date before the Dependant dies.
4D. Children's pension on Member’s death before his Fund has been applied to provide any retirement benefits
(1) If a Member dies before his Fund has been applied to provide any retirement benefits in
accordance with Rule 6A, there shall be payable out of the Fund to or for the benefit of his
Dependent Children a pension equal to the sum of the amounts of the pensions secured on the
lives of his Dependent Children, the amount of pension on the life of any one child being
determined in accordance with section (2) of this Rule.
(2) The amount per annum of the pension on the life of any one child shall be the sum of -
(a) if the Member has died in Service before his Normal Retirement Date, the amount, if any,
specified in the Acceptance or the Special Rules as payable in the form of a pension on
the life of that child;
(b) the amount of the pension, if any, on the life of that child arranged by the Trustee as a
result of a transfer of assets into the Fund pursuant to Rule 8A but not specified in an
Acceptance; and
(c) the amount of the pension, if any, which the Trustee has secured for that child in
accordance with section (3) or (4) of Rule 4B.
(3) Subject to Rule 9A, the share of Dependant’s Scheme Pension payable to or for the benefit of
any one of the Member's Dependent Children shall be paid by monthly instalments, the first
instalment falling due on the day after the Member dies and the last instalment falling due on the
last due date before the earlier of -
(a) the day the child attains the age of 18 or such older age as may be specified in the
Acceptance or the Special Rules; and
(b) the day on which he ceases to be a Dependent Child.
(4) Subject to Rule 9A, where a Dependant Child who is a child of the Member exercises the option
under section (3) of Rule 4A, the Dependant’s Annuity shall be paid by monthly instalments, the
first instalment falling due on the day after the Member dies and the last instalment falling due
on the last due date before the day the child attains the age of 23.
5. Termination of Pensionable Service
(1) This Rule applies to a Member whose Pensionable Service terminates before Normal
Retirement Date without his becoming entitled to immediate retirement benefits under section
(3) of Rule 6A.
(2) Where a Member is temporarily absent from his employment in the Service or is seconded to
another employer while remaining resident in the United Kingdom with a definite expectation that
he will return to employment in the Service, unless the Employer otherwise decides, this Rule
shall not apply until a change of circumstances such that there is no longer a definite
expectation that the Member will return to employment in the Service:
Provided that -
(i) where the Member is receiving pay which will not continue beyond his Normal Retirement
Date under a sick pay or permanent health scheme, this section shall not apply;
PAGE 22 of 34
(ii) where a Member in Pensionable Service is on paid statutory leave in terms of Part VIII of
the Employment Rights Act 1996 or a ‘period of paid family leave’ as defined in Schedule
5 to the Social Security Act 1989, the Employer’s contributions to the Member’s Fund shall
continue to be payable during that period (subject to proviso (ii) to Rule 1C) but the
Member shall only be required to pay contributions based on the emoluments or statutory
pay actually paid to the Member during that period;
(iii) where a Member in Pensionable Service exercises a right to ordinary maternity leave,
ordinary adoption leave or ordinary paternity leave under Part VIII of the Employment
Rights Act 1996 and receives no emoluments or statutory pay from the Employer during
the period of his leave, the contributions to his Fund shall continue to be payable during
that period to the extent required by Part VIII of that Act;
(iv) where a Member is absent from work on statutory leave in terms of Part VIII of the
Employment Rights Act 1996, that Member’s Service shall not be deemed to terminate on
a date earlier than would be permitted under those provisions.
(3) Subject to section (4) of this Rule a Member to whom this Rule applies shall for the purposes of
Rules 6A to 7B inclusive be deemed to retire from the Service at his Normal Retirement Date but
not so that his Pensionable Service shall be deemed to be longer than it actually was.
(4) If before his Normal Retirement Date a Member to whom this Rule applies informs the Trustee
that he wishes all his retirement benefits to become payable at a date other than his Normal
Retirement Date, the Trustee may for the purposes of Rules 6A to 7B inclusive treat him as if he
had retired from the Service before or after his Normal Retirement Date as the case may be:
Provided that in relation to a Member -
(i) his benefits shall not be paid before his Normal Retirement Date if his Service has not
terminated, unless his Employer consents;
(ii) his benefits shall not be paid before the Normal Minimum Pension Age except on account
of Incapacity;
(iii) his benefits shall not be paid on account of Incapacity until the Trustee has received
satisfactory evidence of the Incapacity from a registered medical practitioner.
(5) Any benefit payable to or in respect of the Member as a result of the foregoing provisions of this
Rule applying to him shall, if the Member so directs, be secured with an Insurer of the Member's
choice; but the Trustee shall not be bound to comply with the Member's direction unless it
relates to (and the Insurer is willing to accept) all the benefits payable to or in respect of the
Member under this Rule.
(6) If at the date his Pensionable Service terminates -
(a) A Member, whose Pensionable Service began:
i. before 1 October 2015, has not been in service in respect of which contributions
for retirement benefits have been payable under the Plan for one or more periods
totalling at least two years; or
ii. on or after 1 October 2015, has not been in service in respect of which
contributions for retirement benefits have been payable under the Plan for one or
more periods totalling at least thirty days, and
(b) the Fund is derived from contributions paid by both the Employer and the Member and is
derived solely therefrom; and
(c) no assets in respect of him have been transferred into the Plan from another Registered
Pension Scheme;
then the Member may within six months from the date of termination of the Member's
Pensionable Service direct the Trustee that section (8) of this Rule is to apply.
(7) In reckoning periods of service for the purposes of section (6) of this Rule the Trustee shall
deem the following service to be service during which contributions for retirement benefits have
been payable under the Plan -
(a) where the Trustee has accepted a transfer of assets representing the interest of a
PAGE 23 of 34
Member in or derived from a retirement benefits scheme, the service which counted for
retirement benefits under that scheme; and
(b) where between any two periods of the Member's Pensionable Service there is a break
(not exceeding one month or because of pregnancy or confinement or a trade dispute)
which is required by regulations made under Chapter I of Part IV of the Pension Schemes
Act 1993 to be disregarded in determining the length of 'qualifying service' for the
purposes of section 71 of that Act, the earlier period to the extent that it was service
during which contributions for retirement benefits were payable under the Plan had the
Member been in the Service, but not in Pensionable Service, during the break.
(8) As soon as the Trustee has received a direction that this section is to apply in terms of
section (6) of this Rule, the Trustee shall realise the Fund and -
(a) repay to the Member his contributions with interest (or the total value of the Fund if that is
less); and
(b) repay to the Employer the balance of the Fund, if any;
and thereafter the Member shall cease to have a right to any benefits payable out of the Fund.
6A. Retirement
(1) Subject to section (4) of this Rule, on the retirement of a Member from the Service at his Normal
Retirement Date, the Trustee shall apply the Fund -
(a) in paying any Lifetime Allowance Charge;
(b) in paying to the Member a lump sum in accordance with Rule 6B;
(c) in securing for the Member a pension payable in accordance with Rule 6C and, if the
Member so requests and the Assurance Company or the Insurer is willing to accept such
a request, that pension will include either or both of the following death benefits –
(i) a pension payable to one or more of the Member’s Dependants or Nominees in
accordance with Rule 7A;
(ii) guaranteed payment of the Member’s pension for a specified period in
accordance with section (1) of Rule 7B or Annuity Protection Lump Sum Death
Benefit in accordance with section (2) of Rule 7B.
(2) Where part of a Fund is to be applied to secure a pension the Trustee shall secure that pension
by purchasing a Lifetime Annuity from the Assurance Company or, if the Member so directs,
from an Insurer of the Member's choice on such terms that meet the conditions set out in
paragraph 3 of Schedule 28 to the Finance Act 2004:
Provided that –
(i) the Trustee shall not be bound to comply with the Member's direction unless it relates to
(and the Insurer is willing to accept) all the annuities to be purchased under this Rule on
the application of the Fund;
(ii) if the Member requests, the Trustee may agree to provide the pension by means of a
Scheme Pension and, where the Trustee so agrees, the Trustee shall secure that pension
by purchasing an annuity from the Assurance Company on such terms that meet the
conditions set out in paragraph 2 of Schedule 28 to the Finance Act 2004;
(iii) if the Member requests and the Assurance Company agrees, the Trustee may leave the
appropriate part of the Fund invested with the Assurance Company as a Member’s Flexi-
Access Drawdown Fund, until the Member directs the Trustee to secure a pension in
terms of this section or to make a transfer under Rule 8B.
(3) If a Member who retires from the Service with the consent of his Employer before Normal
Retirement Date but on or after the Normal Minimum Pension Age, or who retires at any time
before Normal Retirement Date on account of Incapacity, informs the Trustee that he wishes his
retirement benefits to become payable on his retirement, the Trustee shall realise the Fund and
shall apply it in the same manner as in section (1) of this Rule:
Provided that his benefits shall not be paid on account of Incapacity until the Trustee has
received satisfactory evidence of the Incapacity from a registered medical practitioner.
PAGE 24 of 34
(4) Where a Member remains in the Service after his Normal Retirement Date, he may direct the
Trustee to apply the Fund in the same manner as in section (1) of this Rule (as though he was
retiring at his Normal Retirement Date) or direct the Trustee to leave the Fund invested with the
Assurance Company until the date he requests his benefits to commence to be paid and, on that
date, the Trustee shall apply the Fund in the same manner as in section (1) of this Rule:
Provided that if, by the Member’s 75th birthday, the Trustee has not applied the Fund then the
Trustee shall apply such part of the Fund as it requires to pay any Lifetime Allowance Charge.
6B. Lump sum on retirement
(1) Subject to the provisions of this Rule, on the day after his retirement from the Service, there
shall be payable to the Member out of the Fund a lump sum of the amount specified in
section (2) of this Rule.
(2) The Member shall specify the amount of the lump sum to be payable out of the Fund which
amount cannot exceed the total of -
(a) the Pension Commencement Lump Sum (taking account of any transitional provisions
under Schedule 36 to the Finance Act 2004) or the Uncrystallised Funds Pension Lump
Sum; and
(b) if the Member has not reached his 75th birthday, the Lifetime Allowance Excess Lump
Sum (from which a Lifetime Allowance Charge shall be payable).
6C. Pension on retirement
(1) On the retirement of the Member from the Service there shall be payable to him out of the Fund
a pension of the amount determined in accordance with the following section.
(2) The amount of the pension payable to the Member under this Rule shall be such amount as the
balance, if any, of the Fund, after applying paragraphs (a) and (b) of section (1) of Rule 6A, will
secure when applied by the Trustee in accordance with paragraph (c) of section (1) of Rule 6A.
(3) Subject to Rule 9A, the pension payable under this Rule shall be paid by monthly instalments,
the first instalment falling due on the day after the Member retires and the last instalment falling
due on the last due date before the Member dies.
7A. Pension on death after taking retirement benefits
(1) Where a Member has requested the Trustee under paragraph (c) of section (1) of Rule 6A to
provide a pension for a Dependant after his death, if on his death after taking retirement benefits
he is survived by the Dependant, there shall be payable to the Dependant a pension of the
amount determined in accordance with this Rule.
(2) Any request made by the Member under paragraph (c) of section (1) of Rule 6A shall specify the
name, address, sex and date of birth of that one or more of the Member’s Dependants or
Nominees to whom a pension is to be paid and the amount of pension to be provided (being
expressed as a fraction of, or an amount equal to, the Member’s pension).
(3) If the Trustee purchases a Lifetime Annuity for the Member under section (2) of Rule 6A, the
pension payable to the Dependant under this Rule shall be a Dependant’s Annuity that meets
the conditions set out in paragraph 17 of Schedule 28 to the Finance Act 2004 (or a Nominee’s
Annuity that meets the conditions set out in paragraph 27AA of that schedule); but, if the Trustee
agrees to the Member’s request under section (2) of Rule 6A and secures a Scheme Pension for
the Member, the pension payable to the Dependant under this Rule shall be a Dependant’s
Scheme Pension that meets the conditions set out in paragraph 16 of Schedule 28 to the
Finance Act 2004.
(4) Subject to Rule 9A, any pension payable under this Rule shall be paid by monthly instalments,
the first instalment falling due on the day after the day on which the Member dies and the last
instalment falling due on the last due date before the Dependant dies:
Provided that -
(i) where section (1) of Rule 7B applies and the Member has so agreed with the Trustee, the
first instalment of a pension provided under this Rule shall not fall due until one month
after the last instalment of the Member's pension falls due;
PAGE 25 of 34
(ii) where the Trustee is securing a Dependant’s Annuity for one of the Member's Dependent
Children, the Trustee shall do so on the basis that the last instalment of the pension shall
fall due on the last due date before he attains the age of 23 years unless the Trustee is
satisfied at that time that he suffers from a physical or mental impairment which makes it
unlikely that he will ever be able to maintain himself;
(iii) where the Trustee is securing a Dependant’s Scheme Pension for one of the Member's
Dependent Children, the Trustee may do so on the basis that the last instalment of the
pension shall fall due on the last due date before he attains the age of 23 years or at an
earlier specified age or event.
7B. Other death benefits
(1) Where the Trustee has, under paragraph (c) of section (1) of Rule 6A, secured a pension for the
Member with a guaranteed payment period and the Member dies after the first instalment of his
pension falls due but before the end of the guaranteed payment period, the Member’s pension
shall continue to be paid to the end of that period.
(2) Where the Trustee has, under paragraph (c) of section (1) of Rule 6A, secured a pension for the
Member with protection and, in terms of the annuity policy issued by the Assurance Company
or, as the case may be, the Insurer, is due such a benefit, an Annuity Protection Lump Sum
Death Benefit (less any Special Lump Sum Death Benefits Charge) shall be payable at the date
of the Member’s death that is of an amount agreed with the Member but which is no greater than
the protection limit set out in paragraph 16 of Schedule 29 to the Finance Act 2004:
Provided that the Trustee shall not agree to secure a pension with protection if the Member has
also requested guaranteed payment of his pension for a specified period in accordance with
section (1) of this Rule.
(3) Subject to section (5) of this Rule, if a Member dies with a Member’s Flexi-Access Drawdown
Fund, the Trustee shall apply that Member’s Flexi-Access Drawdown Fund to provide a Flexi-
Access Drawdown Fund Lump Sum Death Benefit (less any Special Lump Sum Death Benefits
Charge) but a beneficiary may exercise any of the options described in provisos (iv) and (v) to
section (3) of Rule 4B.
(4) Subject to section (5) of this Rule, any benefit payable under section (3) of this Rule shall be
paid to such one or more of the Member’s beneficiaries and in such proportions as the Trustee
in its absolute discretion shall select from the list of possible beneficiaries set out in section (5) of
Rule 4B.
(5) Where the Member has completed a nomination in favour of a charity and the conditions set out
in sub-paragraph (1) of paragraph 18 of Schedule 29 to the Finance Act 2004 are satisfied, the
Trustee may in its absolute discretion apply some or all of the Member’s Flexi-Access
Drawdown Pension Fund to provide a Charity Lump Sum Death Benefit.
8A. Transfer of assets into a Fund
(1) Where a Member has an interest in a Registered Pension Scheme, a Recognised Overseas
Pension Scheme or another form of pension arrangement, policy or scheme (hereinafter called
the “Transferring Scheme”) the Trustee may, at the request of the Member, accept from the
administrator, trustees, managers or insurance company (hereinafter called the “Managers”) of
the Transferring Scheme transfer of such assets as represent that interest and the interests, if
any, of the Member's Dependants or such part of those assets as the Managers of the
Transferring Scheme are empowered to transfer; and, if the Trustee does so, the Trustee shall
provide benefits in respect of the Member (hereinafter called the “Transfer Benefits”) which
shall be additional to the other benefits provided in respect of him. The amount of such Transfer
Benefits shall be arranged by the Trustee with the Member.
(2) Where the Trustee has accepted a transfer of assets in accordance with section (1) of this Rule
and the Managers of the Transferring Scheme have advised that some or all of the assets
transferred represent a Disqualifying Pension Credit, no Pension Commencement Lump Sum or
Uncrystallised Funds Pension Lump Sum shall be payable in respect of any part of the assets
transferred which represent that Disqualifying Pension Credit.
PAGE 26 of 34
(3) Where –
(a) the transfer of assets is from the Stanplan M2 scheme (the “Transferring Scheme”);
(b) the transfer payment is effected by the assignation to the Trustee of the assurance policy
or policies held by the Managers to secure all the benefits of the Members included within
the payment; and
(c) in the case of members with short service benefit under the Transferring Scheme, the
Managers of the Transferring Scheme have complied with the terms of regulation 12 of
the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991;
the Trustee may accept a transfer of assets from the Managers of the Transferring Scheme in
respect of any member or beneficiary of that scheme without receiving a request to do so from
that person and, if that person is not a Member of the Plan, that person shall be deemed to be a
Member for the purpose of providing Transfer Benefits under the Plan.
(4) Where a person has, in terms of section (3) of this Rule, been deemed to be a Member of the
Plan –
(a) their employer shall be deemed to be a Participating Employer of Stanplan A and the
employer and the Trustee shall be bound by the Special Rules and schedules of
contributions agreed with the Managers until those Special Rules and schedules are
replaced;
(b) their transfer payment shall continue to be applied to the policy or policies assigned by the
Managers to the Trustee and, if further contributions in respect of them are received by
the Trustee, those contributions shall be applied to that policy; and
(c) their Transfer Benefits shall be those benefits provided by the policy or policies assigned
by the Managers and, if such a Member dies on or before their Normal Retirement Date
and before the proceeds of that policy have been applied to provide their retirement
benefits, any return of their employer’s contributions shall be repaid to that employer.
8B. Transfer of assets to another scheme
(1) Subject to section (3) of this Rule and Rule 8D, where a Member (or a Dependant or Nominee
with a Dependant’s Flexi-Access Drawdown Fund or a Nominee’s Flexi-Access Drawdown
Fund) so requests in writing, the Trustee may make a Recognised Transfer to the administrator,
trustees or managers (hereinafter called the “Managers”) of a scheme which qualifies as a
Receiving Scheme such assets as represent the Member’s interest and the interests, if any, of
his Dependants (hereinafter called the “transfer payment”) and he shall cease to be a Member.
(2) To qualify as a Recognised Transfer for the purposes of section (1) of this Rule, the Receiving
Scheme must be a Registered Pension Scheme or a Qualifying Recognised Overseas Pension
Scheme and the transfer must satisfy the requirements of section 169 of the Finance Act 2004.
(3) Before making a transfer in accordance with section (1) of this Rule the Trustee shall -
(a) ascertain that the Receiving Scheme is one of the types of scheme described in section
(2) of this Rule;
(b) in respect of a transfer to a Receiving Scheme which is administered wholly or partly
outside the United Kingdom, comply with any requirements for such a transfer set out in
the Occupational Pension Schemes (Preservation of Benefits) Regulations 1991 where
those regulations apply to the transfer;
(c) if any part of the transfer payment represents a Disqualifying Pension Credit, advise the
Managers of the Receiving Scheme of the amount of that part; and
(d) if any part of the transfer payment represents a Member’s, Dependant’s or Nominee’s
Flexi-Access Drawdown Fund, advise the Managers of the Receiving Scheme of the
amount of that part and provide all the information the Receiving Scheme requires to
ensure that it can comply with the requirements set out in regulation 12 of the Registered
Pension Schemes (Transfer of Sums and Assets) Regulations 2006 (SI 2006/499) and in
the Registered Pension Schemes (Provision of Information) Regulations 2006
(SI 2006/567).
PAGE 27 of 34
8C. Transfer of assets to an Insurer
Subject to Rule 8D, where a Member so requests in writing before his benefits become payable,
the Trustee may apply such assets as represent the Member’s interest and the interests, if any,
of his Dependants to effect with an Insurer of the Member’s choice a policy or annuity contract of
the type described in section 153(8) of the Finance Act 2004 which satisfies the conditions
necessary for a discharge under sections 19 and 81 of the Pension Schemes Act 1993 and he
shall cease to be a Member.
8D. Option to have a cash equivalent applied
A Member (or Ex-Spouse Participant) who has a right to a cash equivalent under Chapter IV of
Part IV (or Chapter I of Part IVZA) of the Pension Schemes Act 1993 may exercise the option
conferred by that Chapter by making an application in writing to the Trustee requiring them to
exercise their powers under either or both of Rule 8B (or the Pension Sharing Rules) and Rule
8C, in any way or ways, compatible with the provisions of the appropriate Chapter of that Part,
that he chooses.
9A. Provisions affecting pensions payable
(1) If a Member requests the Trustee to pay a Trivial Commutation Lump Sum and satisfies the
Trustee that he meets the conditions for the payment of such a sum, the Trustee may agree to
pay such a sum to him either by applying his Fund to pay the lump sum or, if his pension is
already in payment, by paying a lump sum instead of the pension and, if the Trustee does so,
the Member and his Dependants shall cease to have any claim for benefits under the Plan.
(2) Where the Trustee is satisfied that the conditions set out in paragraph 20 of Schedule 29 to the
Finance Act 2004 for the payment of a Trivial Commutation Lump Sum Death Benefit are met,
the Trustee may pay such a benefit and the Dependant shall cease to have any claim for any
benefits under the Plan in respect of that Member.
(3) Where a pension is to be paid by monthly instalments, each instalment after the first shall fall
due on the day of a month which is designated by the same number as the day of the month on
which the first instalment fell due, and in any month which has no such day shall fall due on the
last day of that month.
(4) When a pension becomes payable under paragraph (c) of section (2) of Rule 4C or 4D or under
Rule 6C, the beneficiary may ask the Trustee for their pension to be paid on different terms from
those set out in section (3) of those rules. If those terms are available from the Assurance
Company (or the Insurer) and continue to allow the pension to satisfy the appropriate conditions
set out in Schedule 28 to the Finance Act 2004, the Trustee will inform the beneficiary of the
revised amount of pension payable and those terms will apply in place of the terms set out in
section (3) of those Rules and section (4) of Rule 7A as appropriate.
(5) If in the opinion of the Trustee it would be inconvenient or unduly costly to pay or continue
paying any pension in monthly instalments or a beneficiary so requests, the Trustee may
arrange with the beneficiary to substitute for that pension a pension of equal value payable
quarterly, half yearly or yearly.
(6) If, before benefits have become payable under the Plan to the Member, the Trustee has
received satisfactory evidence from a registered medical practitioner that the Member is
expected to live for less than one year, the Trustee may apply the Member’s Fund in paying a
Serious Ill-health Lump Sum to him and he shall cease to have any claim for benefits under the
Plan:
Provided that -
(i) no payment shall be made under this section unless all other conditions set out in
paragraph 4 of Schedule 29 to the Finance Act 2004 have been satisfied;
(ii) no payment shall be made under this section unless in the same circumstances the
Trustee is entitled to receive from the Assurance Company a lump sum of the same
amount;
(iii) if the Trustee or Scheme Administrator incurs a liability for the
Serious Ill-health Lump Sum Charge, the payment will be deducted from the Member’s
Fund.
PAGE 28 of 34
9B. Automatic adjustments in pensions payable
(1) Where an initial Application for Benefits so specifies, or the Member (or, if the pension is
payable under paragraph (c) of section (2) of Rule 4C or Rule 4D, the Dependant, Nominee or
the person with parental responsibility for a Dependent Child) so directs, the Trustee shall
secure a pension, or part thereof, which will –
(a) increase by a fixed percentage; or
(b) be adjusted in step with or in a manner related to the Index; or
(c) decrease in the circumstances allowed under regulations issued under
paragraph 3(2E) of Schedule 28 to the Finance Act 2004; or
(d) vary from time to time by reference to fluctuations in the value of, or the returns from,
particular investments:
Provided that –
(i) any pension, or part of a pension, that becomes payable before 6 April 2005 and is
attributable in terms of section 51 of the Pensions Act to payments, other than voluntary
contributions, in respect of employment carried out on or after 6 April 1997, shall increase
annually by at least the Relevant Percentage unless that pension is to increase by the
Appropriate Percentage or to increase in terms of paragraph (c) of this section;
(ii) any pension that becomes payable on or after 6 April 2005 under paragraph (a) or (b) of
section (2) of Rule 4C or 4D shall increase annually by the Relevant Percentage or by the
Appropriate Percentage or by at least 2.5% per annum compound;
(iii) the terms on which a pension may be adjusted under this section must allow the pension
to continue to meet the appropriate conditions set out in paragraphs 2, 3, 16 and 17 of
Schedule 28 to the Finance Act 2004.
(2) The Trustee shall not be bound to comply with the Application or direction if at the time the Fund
is to be applied the Trustee is unable to secure the pension either by purchasing a Lifetime
Annuity on such terms that the liabilities undertaken by the Insurer correspond with the liabilities
of the Trustee in respect of that pension or by purchasing an annuity with the Assurance
Company on such terms that the liabilities undertaken by the Assurance Company correspond
with the liabilities of the Trustee in respect of a Scheme Pension.
(3) Where a pension or part of a pension is to be adjusted in payment in terms of this Rule, the
pension shall be adjusted on each anniversary of the day on which the first instalment falls due.
However, if the pension is to be adjusted in terms of paragraph (c) of section (1) of this Rule the
pension may be adjusted on any date.
(4) Where a pension or part of a pension is to be adjusted in line with the Index, the amount per
annum payable from each anniversary of the due date of the first instalment shall be calculated
by dividing the initial amount by the figure in that Index appropriate to the third month before that
in which the first instalment fell due and multiplying the amount so obtained by the
corresponding figure for the third month before that in which the relevant anniversary occurs:
Provided that, if the Application so specifies, or the Member (or if the pension is payable under
Rule 4C or Rule 4D, the Dependant, Nominee or the person with parental responsibility for a
Dependent Child) subsequently so agrees with the Trustee, any adjustment which would result
in a decrease in the annual amount of a pension shall be ignored.
(5) Where this Rule applies to a pension or part of a pension payable under Rule 7A, the pension
shall be altered at the due date of the first instalment to such amount as the Trustee considers to
be equitable having regard to the adjustments that would have been made to the pension had
the Member died on the earliest date which could have given rise to the pension.
(6) Where the amount of pension under Rule 4D is determined by reference to another pension, it
shall not be adjusted by reference to this Rule but shall be adjusted in step with that other
pension.
(7) If the Index ceases to be in existence, any pension in course of payment shall be adjusted in
accordance with the terms of the annuity policy issued by the Assurance Company or, as the
case may be, the Insurer.
PAGE 29 of 34
(8) Where a pension or part of a pension is to be adjusted in terms of paragraphs (c) or (d) of
section (1) of this Rule the Trustee shall not be responsible for –
(a) the level of increases or decreases in the amount of the annuity once it is in payment; or
(b) any alterations to the annuity once it is in payment.
10. Transitional rights
Subject to the requirements of the Pensions Legislation, nothing in these Rules shall prevent the
Trustee giving effect to any transitional provisions and savings permitted under Schedule 36 to
the Finance Act 2004 or under regulations made under section 283 of that Act.
11. Miscellaneous provisions
(1) Benefits non-assignable. Except where permitted both in terms of sections 91 to 93 of the
Pensions Act and in terms of the Rules or Pension Sharing Rules, no person having a beneficial
interest in a Fund shall assign, commute, surrender or charge that interest or any part of it nor
can such interest be forfeited or a lien or set-off be exercised in respect of it. Where a person
having a beneficial interest in a Fund agrees to a transaction or purported transaction which
under section 91(1) of the Pensions Act is of no effect, the Trustee shall apply any moneys to
which the person would otherwise have been or become entitled for the maintenance or
otherwise for the support or benefit of that person or pay the moneys to any other person to
which such a payment can be made in terms of section 92(3) of the Pensions Act as the Trustee
in its absolute discretion thinks fit, but in no circumstances shall any payment be made to a
purported assignee.
(2) Benefits secured with an Insurer of the Member’s, Dependant’s or Nominee’s choice.
Where an annuity payable out of a Fund is secured with an Insurer of the Member’s,
Dependant’s or Nominee’s choice in terms of section (3) of Rule 4A, section (5) of Rule 5 or
section (2) of Rule 6A, the Trustee may at any time thereafter make over the annuity to the
beneficiary in accordance with Rule 12C.
(3) Incapacity of beneficiary. If any person to whom a benefit is payable under the Plan is a minor
or suffers from any incapacity rendering him in the opinion of the Trustee unable to manage his
affairs or is in an institution or in legal custody, the Trustee may at its discretion pay the benefit
in whole or in part to any of the guardians, relatives or Dependants of that person or of his
Dependants or to the institution, and the receipt of the persons paid shall be a complete
discharge to the Trustee for the benefit or part thereof so paid.
(4) Bankruptcy of beneficiary. If, before 6 April 2002, any person to whom a benefit is payable
under the Plan became bankrupt or, in Scotland, his estate was sequestrated, the Trustee may
at its discretion pay the benefit in whole or in part to or for the benefit of the beneficiary or to any
other person to which such a payment can be made in terms of section 92(3) of the
Pensions Act.
(5) Recovery of excessive contributions. Where a court makes an order under section 342A of
the Insolvency Act 1986 or section 36A of the Bankruptcy (Scotland) Act 1985 for the recovery
of excessive pension contributions paid by, or in respect of, a Member of the Plan, the Trustee
shall, to the extent to which it is required to do so, comply with the terms of that order.
(6) Charge on benefits. Subject to section 91 of the Pensions Act, all benefits payable or
prospectively payable to a beneficiary under the Plan shall stand charged with and be subject to
reduction on account of a monetary obligation due to the Plan by the beneficiary and arising out
of a criminal, negligent or fraudulent act or omission by the beneficiary, or out of a payment
made in error in respect of a pension. Where the beneficiary disputes the liability, the Trustee
shall not exercise the charge unless the obligation has become enforceable under an order of a
competent court or the award of an arbitrator or, in Scotland, an arbiter to be appointed
(following agreement between the parties) by the sheriff. The amount of the charge must not
exceed the amount of the monetary obligation or, if less, the value of the said benefits as
determined by an actuary in the manner prescribed under section 91(6) of the Pensions Act and
the Trustee shall give the beneficiary a certificate showing the amount of the charge and its
effect on the said benefits.
PAGE 30 of 34
(7) Liability for duties and taxes. Where in consequence of making a payment under the Plan the
Trustee or the Scheme Administrator could incur a liability for a duty or tax (including any tax for
which the Trustee or Scheme Administrator may be liable under Part 4 of the Finance Act 2004),
the Trustee or Scheme Administrator may deduct the amount of the duty or tax from the
payment; and where a payment is made without such a deduction the payee shall be obliged to
repay the amount of the duty or tax if within six months of making the payment the Trustee or
Scheme Administrator so demands.
(8) Liability for the Annual Allowance Charge. If the Scheme Administrator receives a notice
from the member in accordance with section 237B of the Finance Act 2004, specifying an
amount of the annual allowance charge (as defined in section 227 of the Finance Act 2004) for
which the Member and the Scheme Administrator are to be jointly and severally liable (the joint
liability amount’), the Scheme Administrator will, to the extent that it is required to comply with
the notice, deduct such amount from the Member’s Fund as is required to pay that joint liability
amount to HMRC.
(9) Evidence and Information. The Trustee may require any Member or beneficiary under the
Plan to produce such evidence and information of a personal nature as the Trustee may from
time to time reasonably require for the purposes of the Plan. If such evidence or information is
not produced the Trustee may withhold any benefit in relation to which the evidence or
information was required until such time as it is produced, and where the information relates to
the payment of retirement benefits on his Normal Retirement Date, the Member shall be deemed
to have informed the Trustee that he wishes the payment of all his retirement benefits to be
deferred.
(10) Evidence of health. The Trustee may require any person on whose death in Service a benefit
may become payable to produce such evidence of health or to satisfy such requirements as the
Trustee deems necessary and if that evidence is not produced or if the evidence produced is not
satisfactory to the Trustee, or if the requirements are not satisfied, the amount of benefit in
respect of which the evidence was required or the requirements had to be satisfied shall not be
payable or shall be payable subject to such special terms and conditions as the Trustee may
decide.
(11) War and National Service. In as much as the Assurance Company may under the terms of the
policies effected or to be effected by the Trustee for the purpose of providing the benefits
payable on the death of a Member in the Service impose restrictions on the amount of any
benefit payable on death as a result of war or while the Member is on National Service, the
Trustee's liability under the Plan in such circumstances shall not exceed the amounts, if any,
payable by the Assurance Company under the policies.
(12) Payments to a former wife, husband or Civil Partner. Where the Trustee is required in terms
of an order made under the Matrimonial Causes Act 1973, the Family Law (Scotland) Act 1985
or the Civil Partnership Act 2004 to pay the whole or part of a benefit that has become payable
under the Plan to the former wife, husband or Civil Partner of a Member, the Trustee shall, to the
extent to which it is required to do so, comply with the terms of that order.
(13) Conversion to sterling. All benefits and contributions under the Plan shall be payable in
sterling; and if a Member's emoluments are payable in another currency, then for the purpose of
determining their amount on any date at which a calculation of his emoluments is to be made for
the purposes of the Plan they shall be converted into sterling at the rate of exchange obtainable
by the Trustee at the Edinburgh branch of HSBC at that date.
(14) Interest on contributions. Where there is to be a return of a Member’s contributions with
interest, the amount of interest shall be the interest paid by the Assurance Company to the
Trustee in respect of those contributions.
PAGE 31 of 34
12A. Reduction or suspension of contributions
(1) A Participating Employer may suspend its contributions to a Fund in whole or in part after
consulting the Trustee and, where it is required do so under regulations made under section 259
of the Pensions Act 2004, any affected member (as defined in those regulations), but any
contributions due before the suspension is intimated in writing to the Member by the Employer or
the Trustee are unaffected; and subject to section (3) of this Rule the Employer may resume full
contributions after giving notice to the Trustee:
Provided that, unless the Member consents in writing, this section shall not apply to
contributions contracted to be paid as a result of an Application for Benefits made before
6 November 1984.
(2) For any period that an Employer's contributions to a Fund are wholly suspended the Member
shall not pay any contributions in relation to the Member's employment with that Employer
unless the Trustee otherwise agrees.
(3) If the Participating Employer has suspended its contributions under section (1) of this Rule for a
period of more than three years the Trustee may, after giving notice in writing to the Participating
Employer and the Member, treat the suspension as a termination of contributions and the
provisions of section (4) of Rule 12B shall apply.
(4) A Member may suspend his contributions to a Fund in whole or in part but, except where those
contributions are voluntary contributions, he may do so only with the consent of the Employer.
12B. Employer ceasing to contribute
(1) A Participating Employer may after consulting, where it is required to do so under regulations
made under section 259 of the Pensions Act 2004, any affected member (as defined in those
regulations) terminate its contributions on a date agreed with the Trustee and intimated in writing
to the Member by the Employer or the Trustee.
(2) When the Employer is to be wound up it shall terminate the contributions to the Plan at a date to
be determined by the Employer after consulting the Trustee but not later than one year after the
commencement of the winding up.
(3) If on the thirtieth day after the day on which a contribution is due that contribution has not been
paid then the Trustee may inform the Employer in writing that no more contributions are to be
payable in respect of the Member after a date to be specified by the Trustee.
(4) Where the contributions of the Employer are terminated in accordance with this Rule, then
without prejudice to any action which the Trustee may wish to take to enforce payment of
contributions due before the date of termination and unless the Member's Service terminates
beforehand, the Member's Service shall for the purposes of the Plan be deemed to terminate
when the Employer's contributions are terminated or, if later, when the period for which the
Employer's contributions have been paid expires.
12C. Termination of Funds
(1) Subject to the provisions of this Rule at any time after all the Employers contributing to a Fund
have ceased to contribute to that Fund the Trustee may dispose of the Fund by effecting with
the Assurance Company or, if the Member so directs, with an Insurer of the Member's choice,
individual policies or annuity bonds securing the benefits which are or may become payable
under the Plan to the Member and his Dependants and by making over to the beneficiary or to
trustees for him the policies or annuity bonds by which his benefits have been secured. When
the Trustee has made over the policies or annuity bonds, the Trustee shall be discharged from
its liabilities to the Member and his Dependants without the necessity of written discharges.
(2) As an alternative to effecting an individual policy or annuity bond, the Trustee may transfer the
benefit of its rights under an existing group policy in respect of the Member and his Dependants
to that Member. When the Trustee has made over the benefit of its rights under the existing
group policy, the Trustee shall be discharged from its liabilities to the Member and his
Dependants without the necessity of written discharges.
PAGE 32 of 34
(3) Before conferring any rights on a beneficiary in accordance with section (1) or (2) of this Rule
the Trustee shall ensure -
(a) that the policy or annuity bond or document of title by which the benefits are secured
contains provisions prohibiting its assignment or surrender except that, where the Member
is entitled to short service benefit (as defined in section 71 of the Pension Schemes
Act 1993), the Member must be able to assign or surrender the policy, annuity bond or
rights within the terms permitted by regulations made under section 19 of that Act; and
(b) that the rights to be conferred on the beneficiary (which may include rights formerly vested
in the Trustee) will be on terms which are consistent with the terms which applied under
the Plan to his benefits at the date of termination.
(4) Where the conditions set out in paragraph 10 of Schedule 29 to the Finance Act 2004 are met,
the Trustee may dispose of the Fund by paying a Winding-up Lump Sum instead of disposing of
the Fund in terms of section (1) or (2) of this Rule and, where the conditions set out in paragraph
20 of Schedule 29 to the Finance Act 2004 are met, the Trustee may dispose of all or part of the
Fund by paying a Trivial Commutation Lump Sum Death Benefit instead of making over a policy
or annuity contract to the Dependant in terms of section (1) or (2) of this Rule.
(5) Where the Trustee determines to wind up the Plan, all the Employers shall cease to contribute to
the Plan and the Trustee shall dispose of each Fund in terms of this Rule. When the Trustee has
disposed of all the assets of the Funds in accordance with this Rule, the Plan shall be
terminated and the Trustee shall be discharged from the trusts of the Plan without the necessity
of written discharges.
13. Pension Sharing on divorce
Provision of Information and Charges
(1) The Trustee shall comply with the requirements of any regulations made in terms of
section 23(1) of the Welfare Reform Act on the supply of information in connection with a divorce
or the dissolution of a Civil Partnership.
(2) The Trustee shall be entitled, where permitted under sections 23, 24 or 41 of the Welfare
Reform Act, to make a charge for:
(a) any information provided under section 23;
(b) complying with any Pension Sharing Order or earmarking order specified in section 24; or
(c) any pension sharing activity prescribed under the regulations made in terms of section 41.
The Trustee shall determine how such charges should be recovered (including requiring the
payment of those charges before implementing a Pension Sharing Order) but must comply with
any requirements for recovery contained in the regulations made under those sections.
Discharge of a Pension Sharing Order
(3) The Trustee shall discharge its liability in respect of a Pension Credit in accordance with
paragraph 1 of Schedule 5 to the Welfare Reform Act by:
(a) transferring the amount of the Pension Credit to a qualifying arrangement within the
meaning of paragraph 6 of that Schedule; or
(b) conferring appropriate rights within the meaning of paragraph 5 of that Schedule under
the Plan.
(4) Where the Trustee determines or is required to allow the Ex-Spouse to become an Ex-Spouse
Participant, the Trustee may deem the Ex-Spouse to be a Member for such of the Rules as are
necessary to enable the Trustee to provide the Pension Credit Benefit and satisfy the
requirements of Chapter I of Part IVA of the Pension Schemes Act 1993. The Ex-Spouse
Participant may select a date no earlier than his 60th birthday and no later than his 65
th birthday
to be his Normal Benefit Age. If the Ex-Spouse Participant does not select a Normal Benefit
Age, the Trustee shall set that age.
PAGE 33 of 34
Assignment
(5) Section (1) of Rule 11 is amended to permit the assignment of part or all of the Member’s
retirement benefits or rights to benefits under the Plan to his Ex-Spouse to the extent necessary
to comply with the Pension Sharing Order, agreement or equivalent provision or the assignment
of part or all of the Ex-Spouse Participant’s benefits or rights to benefits under the Plan to his
Ex-Spouse to the extent necessary to comply with a Pension Sharing Order, agreement or
equivalent provision.
Pension Credit Benefits
(6) The Trustee must make provision for the Pension Credit Benefits under the Plan to be treated as
provided separately from any benefits provided under the Plan for the same individual as an
employee or as the Dependant of an employee.
(7) Where the Ex-Spouse Participant does not have a Member’s Fund under the Plan, the Trustee
will use the Pension Credit Rights to provide benefits in accordance with the Rules -
(a) as if any reference to a Member were a reference to the Ex-Spouse Participant,
(b) as if any reference to a Fund were a reference to the Pension Credit Rights, and
(c) on the basis that the Member had left Service.
Where the Ex-Spouse Participant also has a Member’s Fund, the Trustee will use the Pension
Credit Rights to provide benefits at the same time as, and in accordance with the same Rules
under which, the Member’s Fund is applied to provide benefits.
No Pension Commencement Lump Sum or Uncrystallised Funds Pension Lump Sum may be
paid in respect of any part of a Pension Credit that is a Disqualifying Pension Credit.
Receiving a transfer payment that includes Pension Credit Rights
(8) Where the Trustee accepts a transfer payment for an individual who is already a Member of the
Plan or is already an Ex-Spouse Participant in the Plan and is informed by the transferer that the
transfer value consists wholly or partly of Pension Credit Rights in the former scheme or
arrangement, then the Trustee must separately identify the transfer payment relating to the
Pension Credit Rights or the part of the transfer payment relating to the Pension Credit Rights
from other funds held for the benefit of the Member. Furthermore the Trustee must comply with
the requirements of section (6) of this Rule in respect of the transferred-in Pension Credit Rights.
Then the individual will acquire the status of an Ex-Spouse Participant in the Plan in relation to
his transferred-in Pension Credit Benefits.
Death of an Ex-Spouse before the discharge of a Pension Sharing Order
(9) Where the Ex-Spouse dies after a Pension Sharing Order, agreement or equivalent provision is
made but before it is acted upon, the Trustee will use the fund which would have provided the
Pension Credit Rights to provide benefits in accordance with Rules 4A to 4D -
(a) as if any reference to a Member were a reference to the Ex-Spouse,
(b) as if any reference to a Fund were a reference to the Pension Credit Rights, and
(c) on the basis that the Member had left Service before he died.
PAGE 34 of 34
Standard Life Assurance Limited is the provider of Stanplan A.
Standard Life Assurance Limited is registered in Scotland (SC286833) at Standard Life House, 30 Lothian Road, Edinburgh
EH1 2DH.
Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct
Authority and the Prudential Regulation Authority.
www.standardlife.co.uk
Standard Life Master Trust Co. Ltd. is trustee and scheme administrator of Stanplan A.
Standard Life Master Trust Co. Ltd. is registered in England (09497864) at 1 Wythall Green Way, Wythall, Birmingham,
B47 6WG.
Standard Life Assurance Limited and Standard Life Master Trust Co. Ltd. are part of the Phoenix Group and use the Standard Life brand under licence from the Standard Life Aberdeen Group.
PEN236 0119 © 2019 Standard Life Aberdeen, reproduced under licence. All rights reserved.