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money-purchase benefits

  1. (1) (except in COMP and COBS 19.11159) 27(in relation to an occupational pension scheme) benefits the rate or amount of which are calculated by reference to a payment or payments made by a member of the scheme.3
  1. (2) (in COMP ) in relation to a member of a personal pension scheme or an occupational pension scheme or the widow or widower 30or surviving civil partner of a member of such a scheme, means benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which are not average salary benefits.27
  2. (3) (in COBS 19.11) in relation to a member of a personal pension scheme or a stakeholder pension scheme or the widow or widower or surviving civil partner of a member of such a scheme, has the meaning given in section 181 of the Pension Schemes Act 1993, which is benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which falls within section 181B of the Pension Schemes Act 1993, which is set out in (a) to (d) below:159
    1. (a) A benefit other than a pension in payment falls within section 181B if its rate or amount is calculated solely by reference to assets which (because of the nature of the calculation) must necessarily suffice for the purposes of its provision to or in respect of the member.159
    2. (b) A benefit which is a pension in payment falls within this definition if:159
      1. (i) its provision to or in respect of the member is secured by a pension annuity or pension policy made or taken out with an insurer; and159
      2. (ii) at all times before coming into payment, the pension was a benefit falling within this definition by virtue of (3)(a).159
    3. (c) For the purposes of (3)(a), it is immaterial if the calculation of the rate or amount of the benefit includes deductions for administrative expenses or commission.159
    4. (d) In this definition, references to a pension do not include income withdrawal or dependants’ income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004).159