RPSM14101035 - Technical pages: Transfers: Recognised transfers from registered pension schemes: Overseas pension schemes- regulation conditions

Regulation conditions that a scheme has to meet to be an overseas pension scheme

Under The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006 (SI 2006/206) a pension scheme has to satisfy a regulation requirement in order to be an overseas pension scheme. It will do so if condition 1, 2 or 3 is met:

Condition 1

1. the scheme is an occupational pension scheme,
   
   
2. there is in the country or territory in which it is established a body which regulates occupational pension schemes, and
   
   
3. it is regulated by that body.

Condition 2

1. the scheme is not an occupational pension scheme
   
   
2. there is in the country or territory in which it is established a body which regulates pension schemes other than occupational pension schemes, and
   
   
3. it is regulated by that body.

Condition 3

1. neither 1 nor 2 is met, by reason only that no such regulatory body exists in the country or territory, but (b) below or (c) below is met.
   
   
2. the scheme is established in a Member State of the European Union or in Norway, Iceland or Liechtenstein.
   
   
3. the scheme’s rules provide that at least 70% of a member’s UK tax-relieved scheme funds will be designated by the scheme manager for the purpose of providing the member with an income for life, and the pension benefits payable to the member (and any associated lump sum) must be payable no earlier than they would be if pension rule 1 in section 165 applied.

UK tax-relieved scheme funds means the sum of the UK member’s UK tax-relieved fund and their relevant transfer fund. Those terms are explained in RPSM13102150 and in RPSM13102170.

Pension rule 1 in section 165 provides that no payment may be made before the day on which the member reaches normal minimum pension age, unless the ill-health condition was met immediately before the member became entitled to a pension under the scheme. Guidance on the normal minimum pension age is provided at RPSM08100010 to RPSM08100030, and there is guidance on the ill-health condition in RPSM08100070.