558.New section 51A(1) provides that an annual increase under section 51 is not required in respect of the element of money purchase scheme funds as described in sub-paragraphs 1(a), (b) and (c).
Sub-paragraph 1(a) stipulates that the alternative pension is payable from an investment-linked annuity.
Sub-paragraph 1(b) prevents the inclusion of benefits in respect of protected rights.
Sub-paragraph 1(c) provides that regulations may prescribe conditions to be satisfied for investment-linked annuity products.
559.New section 51A(2) provides for the option of an investment-linked annuity whether provided under an annuity contract or payable from the funds of money purchase schemes.
560.New section 51A(3) provides for the new rule to apply to increases after the date appointed for the new section 51A to come into force.
Part II: Pensions. Commentary on Sections Other provisions New section 51A: Restriction on increase where annuity tied to investments