The Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001 (SI 2001/117) specify permitted investments under both self-invested and other personal pension schemes. Basically, what are not permitted are assets owned by the members and most residential property. The Regs come into force on 6 April 2001.

The Personal Pension Schemes (Conversion of Retirement Benefits Schemes) Regulations 2001 (SI 2001/118) set out the rules governing those occupational money purchase schemes that wish to convert their tax approval - in respect of all or some of their members - to the new PP tax regime. These too come into force on 6 April 2001.

Basically, the requirements that must be met are

1. the benefits of anyone the trustees intend should be a "continuing member" and is either a controlling director or aged 45 and earning over the earnings cap must be checked against the maximum transfer payment allowed under the PP Transfer Regs (see below); and
2. the use of funds relating to controlling directors must be limited: for example on death before vesting, the rules are very similar to those governing transfer values paid to PPs.

The Personal Pension Schemes (Transfer Payments) Regulations 2001 (SI 2001/119), in conjunction with the new Appendix XI to IR12 published on 22 January 2001, reshape the long out-of-date 1988 Regs. With the exception of those addressing pension sharing and the transfer of funds in drawdown, which come into force on 14 February 2001, the new Regs come into force as expected on 6 April 2001.

The Transfer Regs address 3 principal issues concerning proposed transfers from an OPS, s.32, relevant statutory scheme, or a PPS where the TV originated at least in part in one of the former types of arrangement.

1. Tax-free cash certificates: presently apply to controlling directors, those earning more pa than the earnings cap in the year of transfer, and all others aged 45 or more at date of transfer.
2. N/NS x P ["GN11" or valuation] certificates: presently must be obtained for controlling directors and those earning more pa than the earnings cap in the year of transfer.
3. Restrictions on death benefits: presently apply to all transfers to PPs (to prevent advantage on transfer to a PP).

The new rules will apply uniformly for all three requirements, only to

1. controlling directors; and
2. those who are aged 45 or more AND have earned more than the earnings cap in any of the past 6 tax years.