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195 provisions
36 Calculation of amount of accrued pension for purpose of partial retirement
(1) For the purpose of calculating the amount of a description of partial retirement pension, the amount of accrued pension is an amount calculated in accordance with this regulation.
(2) The amount of accrued club transfer earned pension is calculated separately in relation to each sending scheme.
(3) The amount of accrued standard earned pension is the option proportion of the total of the following amounts specified in the active member’s account as at the end of the relevant last day—
(a) the sum of the opening balance of standard earned pension for the leaving year and the index adjustment for that opening balance;
(b) the amount of standard earned pension for the leaving year;
(c) the sum of the opening balance of transferred pension for the leaving year and the index adjustment for that opening balance; and
(d) the amount of transferred pension for the leaving year.
(4) The amount of accrued earned pension attributable to an effective pension age option or an enhanced effective pension age option is the option proportion of the total of the following amounts specified in the active member’s account as at the end of the relevant last day—
(a) the sum of the opening balance of earned pension attributable to that option for the leaving year and the index adjustment for that opening balance; and
(b) the amount of earned pension attributable to that option for the leaving year.
(5) The amount of accrued club transfer earned pension is the option proportion of the total of the following amounts specified in the active member’s account as at the end of the relevant last day—
(a) the sum of the opening balance of club transfer earned pension for the leaving year and the index adjustment for that opening balance; and
(b) the amount of club transfer earned pension for the leaving year.
(6) The amount of any description of accrued added pension is the option proportion of the total of the following amounts specified in the active member’s account as at the end of the relevant last day—
(a) the sum of the opening balance of added pension of that description for the leaving year and the index adjustment for that opening balance; and
(b) the amount of added pension of that description for the leaving year.
(1) The scheme manager must establish and maintain one or more pension accounts for each member of this scheme in accordance with this Part.
(2) A pension account—
(a) may be kept in any form the scheme manager considers appropriate; and
(b) must specify the details required by these Regulations.
(3) References in these Regulations to any amount specified in a pension account are references to the amount that is required by these Regulations to be so specified and not, if different, the amount actually so specified.
38 Closure and adjustment of pension accounts on transfer out
(1) Except as otherwise provided in this regulation, the scheme manager must close all pension accounts relating to a member of this scheme if—
(a) a transfer payment is made in respect of all of the member’s accrued rights under this scheme; or
(b) all member contributions and payments for extra pension made by the member are refunded to the member under Part 9 (contributions).
(2) Paragraph (1) does not require the scheme manager to close an account that includes amounts to which the transfer payment or the refund does not relate or is not attributable.
(3) An account that is not closed because of paragraph (2) must be adjusted as the scheme manager considers appropriate to reflect the extinguishment of rights under this scheme.
(4) Paragraph (1)(a) does not require the scheme manager to close a pension credit member’s account if the transfer payment is made in respect of the accrued rights of a member who is both—
(a) a pension credit member of this scheme; and
(b) an active member, deferred member or pensioner member of this scheme.
(1) This Chapter applies in relation to a continuous period of pensionable service under this scheme.
(2) For a person who is an active member of this scheme in relation to 2 or more continuous periods of pensionable service at the same time, this Chapter applies separately in relation to each of those periods of service.
(1) The scheme manager must establish a pension account for a member who is in pensionable service from the day on which the member begins pensionable service.
(2) For the purpose of these Regulations, an account established under paragraph (1) is called an active member’s account.
(1) This regulation applies if a transfer value payment is received from another pension scheme (other than a connected scheme) in relation to an active member of this scheme.
(2) On receiving the transfer value payment, the scheme manager must credit the active member’s account with the amount of transferred pension calculated under regulation 152.
(1) This regulation applies if a club transfer value payment is received from another club scheme in relation to an active member of this scheme.
(2) On receiving the club transfer value payment, the scheme manager must credit the active member’s account, in relation to the sending scheme, with an amount of club transfer earned pension the member is entitled to count under regulation 153.
(1) This regulation applies in relation to every scheme year in which an active member’s account is open.
(2) The active member’s account must specify, in relation to each description of pension, the amount of that description of pension for the scheme year.
(3) The amount of club transfer earned pension for a scheme year must be specified separately in relation to each sending scheme.
(4) The amount of earned pension for a scheme year is 2.32% of the member’s pensionable earnings for that year.
(5) The amount of transferred pension for a scheme year is the amount (if any) which the member is entitled to count under regulation 152 for that year.
(6) The amount of club transfer earned pension for a scheme year is the amount (if any) which the member is entitled to count under regulation 154 for that year.
(7) The amount of added pension of any description for a scheme year is the amount (if any) credited to the active member’s account in that scheme year under paragraph 13 or 14 of Schedule1 (payments for extra pension).
(8) In this regulation, “earned pension” means the following descriptions of pension—
(a) standard earned pension (if any); and
(b) earned pension attributable to the exercise of an effective pension age option or an enhanced effective pension age option (if any).
(9) For the purpose of paragraph (4), in respect of a period of assumed pay under this scheme, “pensionable earnings” means the member’s assumed pay.
44 Opening balance, index adjustment and age addition
(1) This regulation applies in relation to every scheme year in which an active member’s account is open other than the scheme year in which that account is established.
(2) The active member’s account must specify for each description of pension—
(a) the opening balance for the scheme year and the index adjustment for the opening balance; and
(b) if applicable, the age addition awarded at the beginning of the scheme year.
(3) In these Regulations, “opening balance” in relation to a description of pension—
(a) for the scheme year immediately following the scheme year in which the active member’s account is established, means the amount of that pension for the previous scheme year as at the end of the previous scheme year; and
(b) for any subsequent scheme year, means the sum of the following amounts—
(i) the opening balance of that pension for the previous scheme year and the index adjustment for that opening balance;
(ii) the amount of that pension for the previous scheme year as at the end of the previous scheme year; and
(iii) if applicable, the age addition awarded at the beginning of the previous scheme year.
(1) The scheme manager must close an active member’s account in relation to a period of service when the scheme manager establishes in relation to that period of service—
(a) a deferred member’s account under regulation 47; or
(b) a full retirement account under regulation 51.
(2) The scheme manager must re-establish an active member’s account under this Chapter when the scheme manager closes—
(a) a deferred member’s account under regulation 50; or
(b) a full retirement account under regulation 53.
(1) This Chapter applies in relation to a continuous period of pensionable service under this scheme.
(2) For a person who is a deferred member of this scheme in relation to 2 or more continuous periods of pensionable service, this Chapter applies separately in relation to each of those periods of service.
(1) This regulation applies when an active member of this scheme becomes a deferred member of this scheme in relation to a continuous period of pensionable service.
(2) The scheme manager must—
(a) close the active member’s account for that period of service; and
(b) establish a pension account for the deferred member for that period of service.
(3) For the purpose of these Regulations, an account established under paragraph (2)(b) is called a deferred member’s account.
(1) The deferred member’s account must specify the provisional amount of each description of deferred pension.
(2) The provisional amount of each description of deferred pension is the sum of—
(a) the amount of the relevant accrued pension calculated under regulation 35 (“accrued amount”);
(b) the retirement index adjustment for the accrued amount; and
(c) the assumed age addition (if any) for the accrued amount.
(3) The retirement index adjustment is not applied in relation to an amount of accrued pension if a transfer payment was made before the end of the last active scheme year in respect of the member’s rights to that accrued pension.
(4) In this regulation, “relevant accrued pension” means—
(a) for a deferred standard earned pension, accrued standard earned pension;
(b) for a deferred earned pension attributable to an effective pension age option or an enhanced effective pension age option, accrued earned pension attributable to that option;
(c) for a deferred club transfer earned pension, accrued club transfer earned pension;
(d) for a deferred added (self only) pension, accrued added (self only) pension; and
(e) for a deferred added (all beneficiaries) pension, accrued added (all beneficiaries) pension.
(1) This regulation applies when a deferred member of this scheme in relation to a period of service becomes entitled to the immediate payment of a full retirement pension for that period of service.
(2) For the provisional amount of each description of deferred pension, the deferred member’s account must specify—
(a) the late payment supplement (if any);
(b) the early payment reduction (if any);
(c) the commutation amount (if any); and
(d) the total allocation amount (if any).
50 Closure of deferred member’s account after gap in pensionable service not exceeding 5 years
(1) This regulation applies when a deferred member of this scheme in relation to a continuous period of pensionable service re-enters pensionable service under this scheme after a gap in pensionable service not exceeding 5 years.
(2) The scheme manager must—
(a) close the deferred member’s account in relation to that period of service and treat the deferred member’s account as if it were never established;
(b) re-establish the active member’s account under Chapter 5 in relation to that period of service; and
(c) make entries in the active member’s account as if, during the gap in pensionable service, the member—
(i) was in pensionable service under this scheme; but
(ii) received no pensionable earnings.
(1) This regulation applies in relation to a continuous period of pensionable service under this scheme.
(2) When an active member of this scheme becomes entitled to the immediate payment of a full retirement earned pension or an ill-health pension, the scheme manager must—
(a) close the active member’s account for that continuous period of pensionable service; and
(b) establish an account for the pensioner member for that period of service.
(3) When an active member of this scheme exercises the partial retirement option in respect of the whole of the member’s accrued pensions and becomes entitled to the immediate payment of a full retirement pension, the scheme manager must—
(a) close the active member’s account for the period of earlier service;
(b) establish an account for the pensioner member for that period of earlier service; and
(c) establish a new active member’s account under Chapter 5 for the member’s continuing service as if the first day of pensionable service is the day after the option date.
(4) In these Regulations, an account established for a member under paragraph (2)(b) or (3)(b) is called a full retirement account.
(5) In this regulation—
“continuing service” means pensionable service that continues following the exercise of the option in regulation64(2) from the option date;
“option date” means the date on which the partial retirement option is exercised and the member becomes entitled to the immediate payment of a full retirement pension; and
“period of earlier service” means the continuous period of pensionable service ending on the option date.
(1) The full retirement account must specify the amount of each description of full retirement pension.
(2) The amount of each description of full retirement pension is the sum of—
(a) the amount of the relevant accrued pension calculated under regulation 35 (“accrued amount”);
(b) the retirement index adjustment for the accrued amount; and
(c) the assumed age addition (if any) for the accrued amount.
(3) For each amount of a description of full retirement pension, the full retirement account must specify—
(a) the early payment reduction (if any);
(b) the commutation amount (if any); and
(c) the total allocation amount (if any).
(4) In this regulation, “relevant accrued pension” means—
(a) for a full retirement standard earned pension, accrued standard earned pension;
(b) for a full retirement earned pension attributable to an effective pension age option or an enhanced effective pension age option, accrued earned pension attributable to that option;
(c) for a full retirement club transfer earned pension, accrued club transfer earned pension;
(d) for a full retirement added (self only) pension, accrued added (self only) pension; and
(e) for a full retirement added (all beneficiaries) pension, accrued added (all beneficiaries) pension.
(1) This regulation applies if an active member of this scheme in relation to a continuous period of pensionable service—
(a) exercises the partial retirement option in respect of part only of the member’s accrued pensions for that period of service; and
(b) becomes entitled under regulation 67(a) to the immediate payment of a partial retirement pension for that period of service.
(2) The scheme manager must—
(a) establish a pensioner member’s account (“the partial retirement account”) for that period of service; and
(b) adjust the active member’s account in accordance with paragraph (3).
(3) If the partial retirement option notice specifies an option proportion in relation to a description of accrued pension—
(a) the scheme manager must reduce that description of accrued pension by the option proportion specified; and
(b) Chapter 5 (active member’s account) applies in relation to the member as if the amount of that description of accrued pension had always been so reduced.
(4) In this regulation, “partial retirement option notice” means an option notice given in accordance with regulation65.
(1) The partial retirement account must specify the amount of each description of partial retirement pension.
(2) The amount of each description of partial retirement pension is the sum of—
(a) the amount of the relevant accrued pension calculated under regulation 36 (“accrued amount”);
(b) the retirement index adjustment for the accrued amount; and
(c) the assumed age addition (if any) for the accrued amount.
(3) For each amount of a description of partial retirement pension, the partial retirement account must specify—
(a) the early payment reduction (if any);
(b) the commutation amount (if any); and
(c) the total allocation amount (if any).
(4) In this regulation, “relevant accrued pension” means—
(a) for a partial retirement standard earned pension, accrued standard earned pension;
(b) for a partial retirement earned pension attributable to an effective pension age option or an enhanced effective pension age option, accrued earned pension attributable to that option;
(c) for a partial retirement club transfer earned pension, accrued club transfer earned pension;
(d) for a partial retirement added (self only) pension, accrued added (self only) pension; and
(e) for a partial retirement added (all beneficiaries) pension, accrued added (all beneficiaries) pension.
56 Establishment of pension credit member’s account
(1) The scheme manager must establish a pension account for each pension credit member of this scheme (“the pension credit member’s account”).
(2) If a pension credit is derived from 2 or more pension debit members, the scheme manager must establish a pension credit member’s account in relation to each pension debit member.
(3) The pension credit member’s account must specify the amount of credited pension, and for that amount—
(a) the early payment reduction (if any); and
(b) the commutation amount (if any).
(4) On the establishment of the pension credit member’s account, the accounts established under this Part for the pension debit member must be reduced by the relevant amount.
(5) In this regulation—
“amount of credited pension” means an amount equal to the pension credit calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 (pension credits: mode of discharge) to WRPA1999;
“relevant amount” is the amount that the scheme manager, after consultation with the scheme actuary, considers appropriate having regard to–
the cash equivalent that would have been payable under Chapter 2 of Part 4A (requirements relating to pension credit benefit: transfer values) of PSA 1993 in respect of the pension credit member’s right to benefits under this scheme attributable (directly or indirectly) to the pension credit; and
the provisions of sections 29 (creation of pension credits and debits) and 31 (reduction of benefit) WRPA 1999.
If a pension credit member of this scheme is also an active member, deferred member or pensioner member of this scheme, the scheme manager must establish a pension credit member’s account in addition to any other account established for the member under this Part.
(1) In these Regulations, “qualifying service” means the total of—
(a) any continuous period of active membership of this scheme;
(aa) the member’s service in another occupational pension scheme that the Minister has determined should be counted for the purposes of this regulation;
(b) if a transfer payment has been received by this scheme in respect of a member’s accrued rights under another occupational pension scheme, the member’s pensionable service under that scheme; and
(c) for a transition member with continuity of service, the member’s pensionable service under the PCSPS before the transition date for that member.
(2) None of the following counts as qualifying service—
(a) any pensionable service under this scheme in respect of which a person’s rights under this scheme are extinguished;
(b) any pensionable service under the PCSPS in respect of which a person’s rights under that scheme are extinguished;
(c) any unauthorised absence from scheme employment.
(1) A member of this scheme (P) is entitled to the immediate payment for life of a full retirement earned pension if—
(a) P has reached normal minimum pension age;
(b) P has ceased to be in pensionable service under this scheme; and
(c) P has claimed payment of a full retirement pension.
(2) But if P has not reached normal pension age under this scheme, P is not so entitled unless—
(a) P has at least 2 years’ qualifying service;
(b) a transfer payment otherwise than from another occupational pension scheme has been received by this scheme in relation to P; or
(c) the employment of the member was transferred without the member’s consent to a new employer and on that transfer the member ceased to be eligible to be an active member of this scheme.
(3) On becoming entitled to the immediate payment for life of a full retirement earned pension, P is entitled to the immediate payment for life of a full retirement added pension of any description as follows—
(a) for an active member who becomes a pensioner member, if the full retirement account specifies an amount of full retirement added pension of that description;
(b) for a deferred member who becomes a pensioner member, if the deferred member’s account specifies a provisional amount of the relevant deferred added pension.
(4) The claim for payment of a full retirement pension may only be made by notice to the scheme manager in a form required by the scheme manager.
(5) A claim for a full retirement pension to be paid before P reaches normal pension age under this scheme must state if any of the following applies—
(a) P has opted to buy out the early payment reduction;
(b) P has exercised an effective pension age option;
(c) P has exercised an enhanced effective pension age option.
(6) In this regulation, “relevant deferred added pension” means—
(a) for a full retirement added (self only) pension, a deferred added (self only) pension;
(b) for a full retirement added (all beneficiaries) pension, a deferred added (all beneficiaries) pension.
61 Annual rate of full retirement pension (active members)
(1) This regulation applies when an active member of this scheme becomes entitled to the immediate payment of a full retirement pension.
(2) The annual rate of any description of a full retirement pension payable to the member is calculated by—
(a) taking the amount of that description of full retirement pension specified in the full retirement account;
(b) subtracting the early payment reduction (if any) specified in that account in relation to that amount;
(c) subtracting the commutation amount (if any) specified in that account in relation to that amount; and
(d) subtracting the total allocation amount (if any) specified in that account in relation to that amount.
(3) The annual rate of any description of full retirement pension is calculated without subtracting the early payment reduction if the member buys out the early payment reduction in relation to that description of full retirement pension.
62 Annual rate of full retirement pension (deferred members)
(1) This regulation applies when a deferred member of this scheme becomes entitled to the immediate payment of a full retirement pension.
(2) The annual rate of any description of full retirement pension payable to the member is calculated by—
(a) taking the provisional amount of the relevant description of deferred pension specified in the deferred member’s account;
(b) adding the late payment supplement (if any) specified in that account in relation to that provisional amount;
(c) subtracting the early payment reduction (if any) specified in that account in relation to that amount;
(d) subtracting the commutation amount (if any) specified in that account in relation to that amount; and
(e) subtracting the total allocation amount (if any) specified in that account in relation to that amount.
(3) The annual rate of any description of full retirement pension is calculated without subtracting the early payment reduction if the member buys out the early payment reduction in relation to that description of full retirement pension.
(4) In this regulation, “the relevant description of deferred pension” means—
(a) for a full retirement standard earned pension, deferred standard earned pension;
(b) for a full retirement earned pension attributable to an effective pension age option or an enhanced effective pension age option, deferred earned pension attributable to that option;
(c) for a full retirement club transfer earned pension, deferred club transfer earned pension;
(d) for a full retirement added (self only) pension, deferred added (self only) pension; and
(e) for a full retirement added (all beneficiaries) pension, deferred added (all beneficiaries) pension.
(1) A full retirement pension ceases to be payable to a member who re-enters pensionable service under this scheme within 28 days after the last day of the service in relation to which the pension was payable.
(2) If paragraph (1) applies in relation to a member—
(a) the scheme manager must—
(i) cease to pay the pension; and
(ii) recover any payment of pension or lump sum made;
(b) the full retirement account must be closed; and
(c) the active member’s account must be re-established under Part 5 (pension accounts) and treated as if it had never been closed.
(1) This regulation applies if—
(a) a person (P) is an active member of this scheme in relation to a continuous period of pensionable service;
(b) P has reached normal minimum pension age;
(c) the terms on which P is employed have changed and as a result of that change the annual rate of P’s permanent pensionable earnings is reduced to 80% of their amount before the change or less; and
(d) P would be entitled to the immediate payment of a full retirement pension in relation to that period of service if P left pensionable service and claimed payment of the pension.
(2) P may opt to continue in pensionable service but claim payment of the whole or part only of P’s accrued pensions for the continuous period of pensionable service before P’s pensionable earnings were reduced (“partial retirement option”).
(3) P may not exercise a partial retirement option more than once in relation to a description of accrued pension.
(1) A partial retirement option may only be exercised—
(a) by notice to the scheme manager in a form required by the scheme manager (“option notice”); and
(b) in the 3 months after P’s pensionable earnings are reduced, on a date agreed by the member and the scheme manager.
(2) An option notice must specify—
(a) whether P claims payment of—
(i) the whole of P’s accrued pensions; or
(ii) part only of P’s accrued pensions; and
(b) if P claims payment of part only–
(i) the descriptions of accrued pension for which payment is claimed; and
(ii) the proportion of each description of accrued pension for which payment is claimed (“option proportion”), which must comply with regulation 66.
(1) A partial retirement option which relates to a description of accrued added pension must relate to all of the descriptions of P’s accrued added pension.
(2) If P claims payment of accrued standard earned pension P must also claim payment of any of P’s accrued added pension.
(3) If P claims payment of P’s accrued added pension P must also claim payment of any accrued standard earned pension.
(4) If P claims payment of part only of P’s accrued pensions, the following are the option proportions of each description of accrued pension which can be claimed—
(a) 100% of each of the descriptions of P’s accrued pensions for which payment is claimed;
(b) an option proportion lower than 100% for one description of accrued pension claimed and 100% for each of the other descriptions of P’s accrued pension claimed.
(5) For the purposes of paragraph (4)(b), any accrued standard earned pension and accrued added pension claimed is treated together as if it were one description of accrued pension.
67 Entitlement to partial retirement pension or full retirement pension
An active member of this scheme (P) who exercises the partial retirement option is entitled to the immediate payment for life of—
(a) if P claims payment of part only of P’s accrued pensions, a partial retirement pension calculated in accordance with regulation 55; or
(b) if P claims payment of the whole of P’s accrued pensions, a full retirement pension calculated in accordance with regulation 52.
(1) This regulation applies if an active member of this scheme (P) exercises the partial retirement option in respect of part only of P’s accrued pensions.
(2) The annual rate of each description of partial retirement pension is calculated under regulation 61 by reference to the amount of each description of full retirement pension specified in the full retirement account.
(3) Regulation 61 applies as if—
(a) the reference to a full retirement pension were a reference to a partial retirement pension; and
(b) the reference to the full retirement account were a reference to the partial retirement account.
(1) This regulation applies if an active member of this scheme (P) exercises the partial retirement option in respect of the whole of P’s accrued pensions.
(2) The annual rate of each description of full retirement pension is calculated under regulation61 by reference to the amount of that description of full retirement pension specified in the full retirement account.
(3) Regulation 61 applies as if the last day of pensionable service were the day before the day on which the member exercised the partial retirement option.
For the purpose of these Regulations, a member’s breakdown in health is “permanent” if the scheme medical adviser is of the opinion that the breakdown will continue until the member reaches prospective normal pension age.
71 Meaning of “incapacity for employment” and “total incapacity for employment”
For the purpose of these Regulations—
(a) a member’s breakdown in health involves “incapacity for employment” if the scheme medical adviser is of the opinion that, as a result of the breakdown, the member is incapable of doing the member’s own or a comparable job; and
(b) a member’s breakdown in health involves “total incapacity for employment” if the scheme medical adviser is of the opinion that, as a result of the breakdown—
(i) the member is incapable of doing the member’s own or a comparable job; and
(ii) the member is incapable of gainful employment.
An active member of this scheme meets the lower tier threshold for payment of an ill-health pension (“lower tier payment threshold”) if—
(a) the member’s breakdown in health involves incapacity for employment; or
(b) the member is partially retired, the member’s breakdown in health involves total incapacity for employment.
An active member of this scheme meets the upper tier threshold for payment of an ill-health pension (“upper tier payment threshold”) if—
(a) the member is not partially retired; and
(b) the member’s breakdown in health involves total incapacity for employment.
In regulations 72 and 73, a reference to a member who is partially retired includes a reference to a transition member with continuity of service who has exercised the PCSPS partial retirement option.
(1) An active member of this scheme who has not reached normal pension age under this scheme is entitled to the immediate payment of an ill-health pension under this scheme, in accordance with the provisions of this Chapter, if the conditions in paragraph (2) are met.
(2) The conditions are—
(a) the member or the member’s employer has claimed payment of an ill-health pension;
(b) the scheme medical adviser—
(i) is of the opinion that the member has suffered a permanent breakdown in health involving incapacity for employment or total incapacity for employment; and
(ii) gives the scheme manager and the employer a certificate stating that opinion (“ill-health retirement certificate”);
(c) the member has at least 2 years’ qualifying service; and
(d) the employer agrees that the member is entitled to retire on ill-health grounds.
(3) If the member meets the lower tier payment threshold, a lower tier earned pension is payable in respect of the member’s continuous period of pensionable service.
(4) If the member meets the upper tier payment threshold—
(a) a lower tier earned pension is payable in respect of the member’s continuous period of pensionable service; and
(b) an upper tier top up earned pension is payable in respect of the period that begins when the member becomes entitled to the immediate payment of an ill-health pension and ends when the member reaches prospective normal pension age.
(5) A full retirement added pension of any description is payable with a lower tier earned pension if the full retirement account specifies an amount of full retirement added pension of that description.