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)