Activities when seeking to modify subsisting rights - Transcript

Flowchart 1: Activities when seeking to modify subsisting rights

This is a transcript of the flowchart intended as supporting material for: Code 10 Modification of subsisting rights.

Person proposing modification of Subsistence Rights (trustee and/or employer) should obtain actuarial advice on effect of modification before proceeding to 1.

1. Trustee and/or employer to determine whether scheme rules allow this modification, taking legal advice as appropriate (Ref: Para. 17)

If decision that rules allow this modification – go to 2

If legal advice is required, make formal request for legal advice and confirmation to determine whether the scheme rules allow this modification – go to 2

2. Trustee and/or employer to determine whether modification is regulated or non-regulated (Ref: Para. 20)

If non-regulated modification, trustee and/or employer to decide if proper use of power (Ref: Para. 17). Proceed to make a modification (Ref: Para. 21) – go to 5

If regulated modification – go to 3

3. Trustee to determine whether modification is ‘protected’ or ‘detrimental but not protected’ (Ref: Para 22)

If protected modification – go to Flowchart 2 'Using the consent route’

If detrimental modification (but not protected) – go to 4

4. Trustee to determine whether to seek consent or use actuarial equivalence route (Ref: Para. 26 and 27)

If decision to seek consent – go to Flowchart 2 ‘Using the consent route’

If decision to seek consent and to use the actuarial equivalence route if consent not forthcoming – go to Flowchart 2 ‘Using the consent route’

If decision to use actuarial equivalence route – go to Flowchart 3 ‘Using the actuarial equivalence route’

5. Non-regulated modification

Trustees and/or employer decide if proper use of power (Ref: Para 17)

Trustees and/or employer proceed to make modified rights (Ref: Para 21)