Commentary on Sections Summary Scheme rules, admissible rules etc
609.Paragraph 35 defines the meanings of admissible rules, recent rule changes and recent discretionary increases.
610.Admissible rules means the scheme rules, but disregarding, in certain circumstances, all recent rule changes (including any rules which come into operation as a result of winding-up or an associated event). A recent rule change is disregarded if before the assessment date the combined effect of the change, and any recent discretionary increases, was to increase the protected liabilities of the scheme.
611.Recent rules changes means a change which took effect three years before the assessment date or were made during the three year period (and took effect before that period). In addition any scheme rules which come into operation by reference to an insolvency event in relation to the employer or any prescribed event in relation to the employer, are also included as “recent rule changes”. Sub-paragraph (6) lists rule changes which are exempted. These include, for example, changes required by any enactment or changes of a prescribed description.
612.Recent discretionary increases means an increase in the rate of a pension in payment or a postponed pension which took effect in the three years before the assessment date or was introduced during that period with effect from an earlier time Sub-paragraph (8) provides that certain increases may be disregarded.