RPSM09101340 - Technical Pages: Member benefits: A secured pension: Scheme pension: Overview: Pensions in payment on 5 April 2006

Pensions in payment on 5 April 2006 that become a scheme pension

A pension in payment on 5 April 2006 will become a scheme pension on 6 April 2006 where the scheme paying that pension becomes a registered pension scheme on that date, and the pension in payment meets the scheme pension definition.

The ongoing payments are then governed by the conditions imposed on scheme pensions, as for any other scheme pension.

Such a pension in payment on 5 April 2006 may be guaranteed for a set period. There are special transitional provisions to protect existing guarantee provisions. RPSM03107020 gives details of the protection available.

See RPSM10104170 in relation to the provision of a dependants’ scheme pension that follows the payment of a member’s scheme pension.

Certain pensions that are being paid direct from a scheme on 5 April 2006 will always become an unsecured pension (or dependants’ unsecured pension) on 6 April 2006 - see RPSM09102110.

RPSM09101080 deals with the position of deferred annuity contracts (also known as section 32 contracts) in existence on 5 April 2006.