Commentary on Sections Part 4 Pension Flexibilities Section 59: Restriction on payment of lump sums during PPF assessment period: Great Britain
217.This section adds an extra condition to section 138 of the Pensions Act 2004, which governs the payment of scheme benefits whilst a scheme is in a PPF assessment period. At present section 138 requires that the benefits payable to a member must be reduced to the level of compensation which would be payable if the scheme transferred into the PPF. In future, benefits paid as lump sums can only be paid where lump sum compensation would be payable if the scheme had transferred into the PPF. This continues the current position, and means that members will not be able to take out a new uncrystallised funds pension lump sum from rights to non-money purchase benefits during an assessment period.