Pensions Act, 1990

• Permanent Page URL

Preserved benefit — defined benefit scheme.

29.—(1) In this section—

“contingent pension” has the meaning assigned to it by subsection (5);

“scheme” means a defined benefit scheme.

(2) A preserved benefit shall be provided under a scheme only in respect of—

(a) a long service benefit, or

(b) where, by the exercise of an option under subsection (5), the trustees so determine, a contingent pension.

(3) A preserved benefit shall be calculated in accordance with Part A of the Second Schedule .

(4) Subject to subsection (5), on the death of a member of a scheme who is entitled to a preserved benefit under the scheme before such benefit commences to be payable, an amount shall be payable under the scheme to his personal representative in respect thereof equal to the actuarial value of the preserved benefit (including any preserved benefit under subsections (6) and (7) immediately before the death of the member concerned.

(5) (a) Where a scheme provides for a pension payable to, or for, either or both the widowed spouse or any dependants of the member concerned in the event of that member's death while in relevant employment prior to his attaining normal pensionable age (in this section referred to as “a contingent pension”) the trustees of the scheme may, in lieu of the benefit specified in subsection (4), provide under the scheme a contingent pension calculated in accordance with paragraph 1 of Part A of the Second Schedule and such benefit shall be deemed to form part of that member's preserved benefit.

(b) For the purposes of paragraph (a), references in paragraph 1 of Part A of the Second Schedule to long service benefit shall be construed as references to a contingent pension within the meaning of this section.

(6) Where a member of a scheme is entitled to additional long service benefit under the scheme by virtue of the payment of additional voluntary contributions, a preserved benefit in respect of such benefit shall be calculated in accordance with paragraph 3 of Part A of the Second Schedule and shall be provided in addition to the preserved benefit under subsection (2):

Provided that if the member has received a refund of any such contributions paid by him during any period of reckonable service prior to the commencement of this Part, then, in calculating the amount of any preserved benefit under this subsection, any period of reckonable service prior to the commencement of this Part shall be disregarded.

(7) Where additional long service benefit has been granted under a scheme to a member in respect of a transfer of accrued rights from another scheme, that benefit shall be provided in addition to the preserved benefit under subsection (2):

Provided that if the member has received a refund of the contributions paid by him to the other scheme prior to the commencement of this Part which were included in the rights transferred from the other scheme then, in calculating the amount of any preserved benefit under this subsection, any additional long service benefit accrued under that other scheme prior to the commencement of this Part, shall be disregarded.