Joint Committee on Statutory Instruments Eighth Report


APPENDIX 1

Memorandum from the Leader of the House

PARLIAMENTARY PENSIONS (AMENDMENT) (PENSION SHARING) REGULATIONS 2001 (S.I. 2001/2649)

1. The Joint Committee has requested a Memorandum on the following point:

Paragraph 2(3) of new Schedule 15 provides that, where the ex-spouse has not consented to the Trustees making a payment to a qualifying arrangement, the qualifying arrangement is to be determined at their discretion. Explain whether the intended effect of this provision is to allow the Trustees to make a payment to (a) an arrangement, including one in respect of which the ex-spouse has not given consent, or (b) (as the Explanatory Note indicates) an arrangement other than the one in respect of which the ex-spouse has refused consent.

2. The intention is as suggested in (a) above, that is, to allow the Trustees to make a payment to any arrangement, including one in respect of which the ex-spouse has not given consent. The Leader of the House of Commons considers that this intention is accurately reflected in paragraph 2(3) of new Schedule 15 and in the Explanatory Note. The last sentence of the fourth paragraph of the Explanatory Note states that if the Trustees are not able to make a transfer payment to the scheme or arrangement of the ex-spouse's choice they may make a payment to another scheme or arrangement of their choosing. The circumstances in which the Trustees would not be able to make a transfer payment to the scheme or arrangement of the ex-spouse's choice are where the scheme or arrangement is unable or unwilling to accept payment of the pension credit as provided for in paragraph 2(1)(a) of new Schedule 15. In such circumstances the Trustees may make a payment to another scheme, including one in respect of which the ex-spouse has refused consent, provided that the scheme or arrangement is able and willing to accept payment of the pension credit.


 
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