Setting aside of less than 2 times the retirement sum by parties to marriage
7.—(1)  Where —
(a)2 members of the Fund are parties to a marriage, and neither member is a relevant member;
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(b)one member —
(i)has already set aside an amount in part or full satisfaction of the retirement sum applicable to him; and
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(ii)is not exempted under section 15(8) of the Act from complying with section 15(6)(a) of the Act;
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(c)both members desire to set aside jointly an amount which is less than 2 times the retirement sum;
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(d)each member has executed before 1st January 2013 a memorandum in accordance with section 15(6A) of the Act; and
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(e)both members agree, as a condition precedent to the Board permitting them to set aside jointly an amount which is less than 2 times the retirement sum, that in the event of the death of either member, the Board may transfer to the retirement account of the surviving member such amount in cash standing to the credit of the deceased member in the deceased member’s retirement account as he has nominated the surviving member to receive,
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the Board may permit the members to set aside jointly such amount, being an amount which is less than 2 times the retirement sum, as the Board may specify.
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(1A)  On the death of any one of the 2 members of the Fund referred to in paragraph (1), the Board may —
(a)transfer to the retirement account of the surviving member an amount standing to the credit of the deceased member in the deceased member’s retirement account, being an amount not exceeding the retirement sum applicable to the surviving member; and
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(b)pay to the surviving member the remainder, if any, of the amount that the deceased member has nominated the surviving member to receive.
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(2)  Where 2 members of the Fund are parties to a marriage, neither member is a relevant member, the Board permits them to set aside jointly an amount which is 1.5 times the retirement sum, and one member (referred to in this regulation and the Third Schedule as the first member) has already set aside an amount in part or full satisfaction of the retirement sum applicable to him, the other member (referred to in this regulation and the Third Schedule as the second member) shall contribute —
(a)where both members have attained the age of 55 years on or after 1st July 1995 but before 1st July 2004, an amount computed in accordance with the formula 0.5MF + S
where M
is the retirement sum applicable to the first member;
F
is the relevant multiplying factor set out in the Third Schedule; and
S
is the shortfall in the retirement sum applicable to the first member; or
(b)where the first member has attained the age of 55 years before 1st July 1995 and the second member has attained the age of 55 years on or after 1st July 1995 but before 1st July 2004, an amount computed in accordance with the formula (1.5M ‑ C)F
where M
is the retirement sum applicable to the first member;
C
is the amount already set aside by the first member in part or full satisfaction of the retirement sum applicable to him; and
F
is the relevant multiplying factor set out in the Third Schedule.
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(3)  Where the Board permits 2 members of the Fund to set aside jointly an amount which is less than 2 times the retirement sum, both members shall ensure that there is no shortfall in that amount.
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(4)  The amount which the 2 members of the Fund set aside jointly under this regulation shall include —
(a)a proportion in cash that is in direct proportion to that required of the first member; and
(b)a proportion in cash that is in direct proportion to that required of the second member.
(5)  Where the amount already set aside by the first member in part or full satisfaction of the retirement sum applicable to him does not include the amount in cash required under paragraph (4), the second member shall be liable to ensure that the amount which the 2 members set aside jointly under this regulation includes the required amount in cash.
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(6)  Subject to section 15(6)(b) of the Act, the second member may withdraw the whole of the balance of the moneys standing to his credit in the Fund after he has made his contribution in accordance with this regulation.
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