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The Judicial Pensions Regulations (Northern Ireland) 2015

Type Ni-Statutory-Rule

Publication 2015-02-18

Last updated 2024-05-24

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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(b) the amount of full retirement added pension of that description must be specified in the deferred member’s account as the provisional amount of deferred added pension of that description.

(4) The member is entitled to payment of the full retirement added pension of that description when the member gives notice to the scheme manager, in a form required by the scheme manager, that the member wishes to take that full retirement added pension.

(5) The annual rate of full retirement added pension is calculated in accordance with regulation58.

Option to commute part of pension

76

(1) A member who becomes entitled to the immediate payment of a retirement pension under this scheme may opt under this regulation to exchange part of the pension for a lump sum.

(2) An option under this regulation may only be exercised before the first payment of the pension is made.

(3) If a member exercises the option, for every £1 by which the amount of the member’s annual rate of pension is reduced, the member must be paid a lump sum of £12.

(4) A member may not exchange pension for lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension schemes etc.) of the 2004 Act (see section241 of that Act[^f00033]).

(5) If paragraph (6) applies, the member may opt to exchange only so much of the pension (after subtracting the allocation amount, if any) that exceeds the guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the scheme actuary.

(6) This paragraph applies if the member has a guaranteed minimum under section 10 (earner’s guaranteed minimum) of the 1993 Act[^f00034] in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer value payment from another pension scheme in respect of which the member had such a guaranteed minimum.

Option to commute whole of member's accrued pensions (serious ill-health)

77

(1) This regulation applies where there is a medical certificate stating that an active member or deferred member of this scheme has a life-expectancy of less than 12 months.

(2) The member may opt under this regulation to exchange the whole of the member’s accrued pensions for a lump sum.

(3) An option under this regulation may only be exercised before the first payment of the pension is made.

(4) The lump sum payable to the member is an amount equal to—

$(A+B+C)×5$

where—

A means the total annual amount of full retirement pension;

B means the total annual amount of partial retirement pension; and

C means the total annual amount of ill-health pension.

(5) For the purpose of paragraph (4), “total annual amount” means—

(a) in relation to a full retirement pension or partial retirement pension to which the member would be entitled apart from this option, the sum of—

(i) the annual rate of pension to which the member would be entitled apart from this option, calculated as at the date the option is exercised, but without subtracting the early payment reduction (if any); and

(ii) the amount of increase (if any) in the annual rate of that pension under the 1971 Act calculated as at that date; and

(b) in relation to an ill-health pension, the sum of—

(i) the annual rate of pension to which the member would be entitled apart from this option, calculated as at the date when payment would first be due, but without subtracting the early payment reduction (if any); and

(ii) the amount of increase (if any) in the annual rate of that pension under the 1971 Act calculated as at that date.

(6) The lump sum must be paid to the member as soon as is reasonably practicable after the option is exercised.

CHAPTER 6 — Allocation of part of pension

Allocation election

78

(1) This regulation applies in relation to a full retirement earned pension or a partial retirement earned pension payable in respect of a member’s pensionable service under this scheme.

(2) The member may elect to allocate part of the retirement pension to a beneficiary (“allocation election”).

(3) The beneficiary of an allocation election must be a person who, when the allocation election is made, is—

(a) the member’s spouse or civil partner;

(b) financially wholly or mainly dependent on the member; or

(4) If the member wishes to allocate pension to more than one beneficiary, the member must make a separate allocation election in respect of each beneficiary.

(5) If paragraph (6) applies, the member may elect to allocate only so much of the pension (after subtracting the commutation amount, if any) that exceeds the guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the scheme actuary.

(6) This paragraph applies if the member has a guaranteed minimum under section 1 (earner’s guaranteed minimum) of the 1993 Act in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer value payment from another pension scheme in respect of which the member had such a guaranteed minimum.

Restriction on total amount of pension that may be allocated

79

(1) The sum of the following must not exceed the annual rate of retirement pension that would be payable to the member (P)—

(a) the total amount of retirement pension allocated under this Part (“total allocation amount”); and

(b) the annual rate of surviving adult’s pension that would be payable on P’s death.

(2) In determining whether the restriction in paragraph (1) is met, it is assumed that—

(a) P will have become a pensioner member before P’s death;

(b) P will exercise the commutation option so as to exchange for a lump sum the maximum amount possible of the whole of P’s accrued pensions;

(d) all of P’s beneficiaries will survive P; and

(e) any beneficiary who would have been P’s dependant for the purposes of paragraph 15(2) or (3) of Schedule 28 (registered pension schemes: authorised pensions - supplementary) to the 2004 Act[^f00035] will be such a dependant when P dies.

(3) If at the time an allocation election is made it would result in the restriction in paragraph (1) not being met, the scheme manager may treat the election (or each of the elections) as allocating a smaller amount that would result in the restriction being met.

Making an allocation election

80

(1) If requested by a member (P), the scheme manager must advise P of the last day on which P may make an allocation election.

(2) An allocation election may only be made—

(a) by notice to the scheme manager in a form required by the scheme manager; and

(b) before the election closing date.

(3) An allocation election must—

(a) specify the amount of retirement pension to be allocated;

(b) name the beneficiary;

(i) P is in good health; and

(ii) the beneficiary is a person who meets the conditions set out in regulation 78(3); and

(d) be accompanied by a medical certificate giving the opinion that P is in good health.

(4) Before the election closing date, the member may, by notice to the scheme manager in a form required by the scheme manager—

(a) revoke the election; or

(b) amend the election by altering the amount of retirement pension to be allocated.

(5) The election takes effect on the election closing date, unless it has no effect under paragraph (6) or (7) .

(6) An allocation election has no effect unless the scheme manager is satisfied that when P made the election the matters stated in the declaration were true.

(7) An allocation election has no effect if P or the beneficiary dies before the election closing date.

(8) In this regulation, “election closing date” means the earlier of—

(a) the date advised by the scheme manager under paragraph (1); or

(b) the day before the pension becomes payable.

Effect of allocation election

81

(1) If an allocation election takes effect—

(a) the member’s pension is reduced accordingly (and this reduction applies even if the beneficiary predeceases the member); and

(b) if the beneficiary survives the member, on the member’s death the beneficiary becomes entitled to the payment of a pension for life (“allocated pension”) of an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to—

(i) the amount of retirement pension allocated under the election, and

(ii) the beneficiary’s age and gender.

(2) The scheme manager may withhold payment from the beneficiary if—

(a) the member dies before the end of the period of 2 years beginning with the date on which the election takes effect; and

(b) the scheme manager is satisfied that the member made a false declaration about the member’s state of health when making the election.

(3) An allocation election in relation to a retirement pension has no effect if it would result in an allocated pension being paid—

(a) on the member becoming entitled to the retirement pension, to a person who is not—

(i) the member’s spouse or civil partner;

(ii) financially wholly or mainly dependent on the member; or

(iii) financially interdependent with the member;

(b) on the death of the member, to a person who is not—

(i) the member’s surviving adult; or

(ii) a dependant of the member for the purposes of paragraph 15(2) or (3) of Schedule 28 (registered pension schemes: authorised pensions - supplementary) to the 2004 Act.

Adjustment of allocated benefit (members who have reached the age of 75)

82

(1) The amount of allocated pension payable to the beneficiary of an allocation election may be adjusted in a manner determined by the scheme manager if—

(a) the member who made the allocation election dies after reaching the age of 75; and

(b) on the death of the member, the amount of allocated pension payable to the beneficiary does not qualify as a dependants’ scheme pension under section 167 (pension benefit rules) of the 2004 Act[^f00036].

(2) In this regulation, “allocated pension” has the meaning given in regulation 81(1)(b).

PART 7 — Benefits for pension credit members

Entitlement to pension credit member's pension

83

(1) A pension credit member (P) of this scheme is entitled to the immediate payment for life of a pension credit member’s pension under this scheme if—

(a) P has reached normal pension age;

(b) the pension sharing order under which P is entitled to the pension credit has taken effect; and

(2) Where a pension adjustment order is made under section 12 of the Irish Family Law Act 1995[^f00037] in respect of benefits under this scheme, this Part applies with any modifications that the scheme manager considers necessary.

Claim for early payment

84

(1) This regulation applies in relation to a pension credit member (P) who—

(a) has reached normal minimum pension age; and

(b) has not reached normal pension age under this scheme.

(2) P may claim early payment of a pension credit member’s pension by notice to the scheme manager in a form required by the scheme manager.

(3) A claim for early payment—

(a) must state whether P has opted to buy out the early payment reduction; and

(b) must specify the date on which payment of the pension is claimed (“the claim date”).

(4) P is entitled to the immediate payment for life of a pension credit member’s pension on the claim date if the scheme manager is reasonably satisfied that on that date the requirements of regulation7(5) (early retirement or deferred retirement) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000[^f00038] are met.

Annual rate of pension credit member's pension

85

(1) The annual rate of a pension credit member’s pension is calculated by—

(a) taking the amount of credited pension specified in the pension credit member’s account;

(b) subtracting the early payment reduction (if any) specified in that account in relation to that amount; and

(2) If a member opts to buy out the early payment reduction, as provided for by regulation 86, the annual rate of pension is calculated without subtracting the early payment reduction.

Option to buy out early payment reduction

86

(1) A pension credit member who claims early payment of a pension credit member’s pension may opt to buy out the early payment reduction.

(2) The option may only be exercised by notice to the scheme manager in a form required by the scheme manager.

(3) The scheme manager must prepare actuarial tables setting out the cost of buying out the early payment reduction.

(4) The pension credit member must meet the cost by making a payment to this scheme calculated in accordance with actuarial tables prepared in accordance with paragraph (3).

Reduction in pension debit member's benefits

87

The benefits to which a pension debit member is entitled under this Part are subject to the reduction to be made under Article 28 (reduction of benefit) of the 1999 Order.

Pension credit member's rights

88

(1) If regulation 7(5) (early retirement or deferred retirement) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000 (early retirement or deferred retirement) applies, the scheme manager must be reasonably satisfied that the requirements of that regulation have been met.

(2) Benefits that are attributable (directly or indirectly) to a pension credit may not be aggregated with any other benefit to which a pension credit member is entitled under this scheme.

(3) If a pension credit member is a dual capacity member, the benefits that are payable to or in respect of the member in each of the member’s capacities are treated separately for the purposes of these Regulations.

Option for pension credit member to commute part of pension

89

(1) A pension credit member who becomes entitled to payment of a pension credit member’s pension under this scheme may opt to exchange part of the pension for a lump sum.

(2) The option under this regulation may only be exercised—

(a) by notice to the scheme manager in a form required by the scheme manager; and

(b) before the first payment of the pension is made.

(3) If a pension credit member exercises the option under this regulation, for every £1 by which the amount of the member’s annual rate of pension is reduced, the member must be paid a lump sum of £12.

(4) A pension credit member may not exchange pension for a lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension schemes etc.) of the 2004 Act.

(5) This regulation does not apply if the pension debit member from whose rights the pension is derived received a lump sum under Part 7 before the date on which the pension sharing order takes effect.

Option for pension credit member to commute whole pension (serious ill-health)

90

(1) This regulation applies to a pension credit member who can show, to the satisfaction of the scheme manager, that they have a life-expectancy of less than 12 months.

(2) The pension credit member may opt to exchange the whole of the pension credit member’s pension under this scheme for a lump sum.

(3) The option under this regulation (“this option”) may only be exercised—

(a) by notice to the scheme manager in a form required by the scheme manager; and

(b) before the first payment of the pension is made.

(4) The lump sum—

(a) is an amount equal to the total annual amount of the pension credit member’s pension, multiplied by 5; and

(b) must be paid to the pension credit member as soon as is reasonably practicable after this option is exercised.

(5) In this regulation, “total annual amount” in relation to a pension credit member’s pension means the total of—

(a) the annual rate of pension to which the member would be entitled if they had not exercised this option, calculated as at the date this option is exercised, but without subtracting the early payment reduction (if any); and

(b) the amount of increase (if any) in the annual rate of that pension under the 1971 Act calculated as at that date.

PART 8 — Death benefits

CHAPTER 1 — Pensions for surviving adults

Surviving adults

91

In these Regulations—

“surviving adult”, in relation to a deceased member of this scheme, means the member’s surviving spouse, surviving civil partner or surviving nominated partner;

“surviving civil partner”, in relation to a deceased member of this scheme, means a person who was in a civil partnership with the member as at the date of the member’s death; and

“surviving spouse”, in relation to a deceased member of this scheme, means a person who was married to the member as at the date of the member’s death.

Meaning of “surviving nominated partner”

92

(1) A person (P) is a surviving nominated partner of a deceased member of this scheme if—

(a) the member nominated P to receive a pension on the member’s death;

(b) the nomination is made by a written declaration signed by both the member and P in a form required by the scheme manager; and

(i) P and the member were cohabiting as partners in an exclusive, committed long-term relationship;

(ii) P and the member were not prevented from entering into a marriage or a civil partnership; and

(iii) either P was financially dependent on the member or P and the member were financially interdependent.

(2) The member or P may revoke a declaration under paragraph (1)(b) at any time by notice to the scheme manager in a form required by the scheme manager.

Meaning of “surviving adult's pension”

93

In these Regulations, “surviving adult’s pension” means any of the following pensions payable to a surviving adult under this Chapter—

(a) a dependant’s earned pension;

(b) a dependant’s ill-health pension;

Meaning of dependant's earned pension

94

A dependant’s earned pension is a pension payable on the death of a member of this scheme if the member was a pensioner member or would have become entitled to a full retirement earned pension had the member not died.

Meaning of dependant's ill-health pension

95

A dependant’s ill-health pension is a pension payable on the death of a member of this scheme if the member was entitled to the immediate payment of an ill-health pension as at the date of the member’s death.

Meaning of “dependant's added pension”

96

A dependant’s added pension is a pension payable on the death of a member of this scheme if the member—

(a) was entitled to the immediate payment of a full retirement added (all beneficiaries) pension as at the date of the member’s death; or

(b) would have become entitled to such a pension had the member not died.

Entitlement to surviving adult's pension

97

(1) This regulation applies in relation to a member who, at the date of the member’s death is—

(a) an active member of this scheme, or an existing scheme, in relation to a continuous period of pensionable service of at least 12 months;

(b) a deferred member of this scheme; or

(2) If the member is a transition member with continuity of service, the continuous period of pensionable service mentioned in paragraph (1)(a) includes the member’s period of pensionable service under an existing scheme before the transition date for that member.

(3) The surviving adult of the member is entitled to payment for life of a surviving adult’s pension as follows—

(a) if the member was a pensioner member or would have become entitled to a full retirement earned pension had the member not died, a dependant’s earned pension;

(b) if an ill-health pension was payable as at the date of the member’s death, a dependant’s ill-health pension;

(c) if the member was entitled to the immediate payment of a full retirement added (all beneficiaries) pension as at the date of the member’s death or would have become entitled to such a pension had the member not died, a dependant’s added pension.

(4) The scheme manager may withhold a surviving adult’s pension as follows—

(a) for a pension that would otherwise be payable to the surviving spouse, if the member and the surviving spouse married less than 6 months before the member’s death;

(b) for a pension that would otherwise be payable to a surviving civil partner, if the civil partnership was formed less than 6 months before the member’s death.

(5) Paragraph (4) is subject to regulation 110.

Annual rate of surviving adult's pensions payable on death of pensioner member

98

(1) This regulation applies on the death of a pensioner member of this scheme (P).

(2) The annual rate of a dependant’s earned pension is an amount equal to 37.5% of the sum of—

(a) the amount of full retirement earned pension specified in P’s full retirement account as at the date of P’s death; and

(b) the amount of partial retirement earned pension specified in P’s partial retirement account as at the date of P’s death.

(3) The annual rate of a dependant’s ill-health pension is an amount equal to 37.5% of the annual rate of ill-health pension, calculated without subtracting the commutation amount (if any) and the total allocation amount (if any).

(4) The annual rate of a dependant’s added pension is an amount equal to 37.5% of the sum of—

(a) the amount of full retirement added (all beneficiaries) pension specified in P’s full retirement account as at the date of P’s death; and

(b) the amount of partial retirement added (all beneficiaries) pension specified in P’s partial retirement account as at the date of P’s death.

(5) In accordance with section 7(4) of the 1971 Act, for the purposes of this scheme there is to be disregarded any increase in the annual rate of a pension since the beginning date for that pension.

Annual rate of surviving adult's pensions payable on death of deferred member

99

(1) This regulation applies on the death of a deferred member of this scheme.

(2) The annual rate of a dependant’s earned pension is an amount equal to 37.5% of the sum of the provisional amount of deferred earned pension specified in the deferred member’s account.

(3) The annual rate of a dependant’s added pension is an amount equal to 37.5% of the provisional amount of deferred added (all beneficiaries) pension specified in the deferred member’s account.

Annual rate of surviving adult's pensions payable on death of active member (death in service)

100

(1) This regulation applies on the death of an active member of this scheme in relation to a continuous period of pensionable service of at least 12 months.

(2) If the member is a transition member with continuity of service, the continuous period of pensionable service mentioned in paragraph (1) includes the member’s period of pensionable service under an existing scheme before the transition date for that member.

(3) The annual rate of a dependant’s earned pension is an amount equal to 37.5% of the amount of full retirement earned pension that would have been specified in the member’s full retirement account under regulation 48(2) had P become entitled to the immediate payment of a full retirement pension on the date of P’s death.

(4) The annual rate of a dependant’s added pension is an amount equal to 37.5% of the amount of full retirement added (all beneficiaries) pension that would have been specified in the member’s full retirement account under regulation 48(2) had P become entitled to the immediate payment of a full retirement pension on the date of P’s death.

(5) When calculating the amount of a member’s full retirement earned pension (except in relation to a member who before the member’s death was entitled under regulation63(a) to the immediate payment of a partial retirement pension)—

(a) the accrued earned pension includes an additional amount equal to the lesser of—

(i) the amount of accrued earned pension not attributable to a transfer value payment; and

(ii) the enhancement fraction of the amount mentioned in paragraph (i);

(b) if the member is a transition member with continuity of service, the accrued earned pension includes an additional amount equal to the lesser of—

(i) the total amount of accrued earned pension under this scheme which is not attributable to a transfer value payment and the equivalent of accrued earned pension earned under an existing scheme which is not attributable to a transfer value payment; and

(ii) the enhancement fraction of the amount mentioned in paragraph (a)(i); and

(c) the early payment reduction (if any), the commutation amount (if any) and the total allocation amount (if any) are not subtracted.

(6) In this regulation—

“the enhancement fraction” means $X Y$where—

X is the lower of— the member’s assumed period of pensionable service (expressed in years); and 10;

Y is the lower of— the number of years for which the member has been an active member of this scheme; and the number of scheme years in relation to which an amount of earned pension was specified in the active member’s account; and

“the member’s assumed period of pensionable service” means the period (expressed in years)— beginning with the day after the date of the member’s death; and ending with— for a member appointed for a fixed term, the day on which that term would have ended; and for all other appointments, the day before the day on which the member would have reached prospective normal pension age if the member had lived until that age.

Reduction in pensions in cases of wide age disparity

101

(1) This regulation applies if, on the death of a member of this scheme, a surviving adult’s pension is payable to a person (“the dependant”) who is more than 12 years younger than the member.

(2) The annual rate of the surviving adult’s pension is reduced by the lower of—

(a) 50% of the amount of the annual rate of the pension so calculated under regulation 98, 99 or 100 as applicable; and

(b) 2.5 x (N –12)% of the amount of the annual rate of the pension so calculated,

where N is the number of whole years by which the dependant is younger than the member.

CHAPTER 2 — Pensions for eligible children

Meaning of “eligible child's pension”

102

In these Regulations, “eligible child’s pension” means any of the following pensions payable under this Part—

(a) a child’s earned pension;

(b) a child’s ill-health pension;

Meaning of “eligible child”

103

(1) In these Regulations, “eligible child”, in relation to a deceased member of this scheme, means—

(a) a natural child of the member where—

(i) the child meets any of conditions A to C; and

(ii) at the date of the member’s death the child was born or the child’s mother was pregnant with the child;

(b) an adopted child of the member who meets any of the conditions A to C; or

(i) meets any of the conditions A to C; and

(ii) in the opinion of the scheme manager, was financially dependent on the member as at the date of the member’s death.

(2) Condition A is that the person is under the age of 18.

(3) Condition B is that the person is in full-time education or vocational training and is underthe age of 23.

(4) Condition C is that in the opinion of the scheme manager the person is unable to engage in gainful employment because of physical or mental impairment and either—

(a) the person is under the age of 23; or

(b) that impairment is likely to be permanent and the person is dependent on the member as at the date of the member’s death because of physical or mental impairment.

(5) For the purpose of Condition B, a person who is under the age of 19 on the date on which the person stops full-time education or vocational training is taken to be in full-time education until the first of the following dates after the person stops full-time education or vocational training—

(a) the second Monday in January;

(b) the second Monday after Easter Monday;

(d) the date on which the person becomes engaged full-time in gainful employment;

(e) the person’s 19th birthday.

(6) For the purpose of Condition B, a person who is under the age of 22 at the date of the member’s death is taken to be in full-time education or vocational training if the person has temporarily stopped full-time education or vocational training for a period of up to 15 months (“gap period”).

(7) Nothing in paragraph (6) requires an eligible child’s pension to be paid to a person during a gap period.

Eligible child's pension

104

(1) This regulation applies if a member of this scheme dies leaving an eligible child.

(2) An eligible child’s pension is only payable in respect of such period or periods during which a child or young person is an eligible child.

(3) An eligible child’s pension is not payable in respect of any period before a child’s birth.

(4) An eligible child’s pension is payable in respect of an eligible child as follows—

(a) a child’s earned pension is payable if the member was entitled to the immediate payment of a full retirement pension as at the date of the member’s death or the member would have become entitled to such a pension had the member not died;

(b) a child’s ill-health pension is payable if an ill-health pension was payable to the member as at the date of the member’s death;

(c) a child’s added pension is payable if the member was entitled to the immediate payment of an added (all beneficiaries) pension as at the date of the member’s death or would have become entitled to such a pension had the member not died.

Annual rate of eligible child's pension

105

(1) The annual rate of an eligible child’s pension is determined by reference to the annual rate of the corresponding surviving adult’s pension (disregarding any reduction falling to be made under regulation 101) whether or not a surviving adult’s pension is payable on the death of the member.

(2) For the purposes of this regulation, the corresponding surviving adult’s pensions are—

(a) for a child’s earned pension, a dependant’s earned pension;

(b) for a child’s ill-health pension, a dependant’s ill-health pension;

(3) If a surviving adult’s pension is payable on the death of the member—

(a) if an eligible child’s pension is payable in respect of only one eligible child, the annual rate of eligible child’s pension is equal to 80% of the annual rate of the corresponding surviving adult’s pension; and

(b) if an eligible child’s pension is payable in respect of 2 or more eligible children, the annual rate of eligible child’s pension payable to each eligible child is equal to the appropriate fraction of 80% of the annual rate of the corresponding surviving adult’s pension.

(4) If a surviving adult’s pension is not payable on the death of the member—

(a) if an eligible child’s pension is payable in respect of only one eligible child, the annual rate of eligible child’s pension is equal to the annual rate of the corresponding surviving adult’s pension multiplied by 4 and divided by 3; and

(b) if an eligible child’s pension is payable in respect of 2 or more eligible children, the annual rate of eligible child’s pension payable to each eligible child is equal to the appropriate fraction of the annual rate of the corresponding surviving adult’s pension multiplied by 4 and divided by 3.

(5) In this regulation, “the appropriate fraction” means $2 Y$where—

Y is the number of eligible children in respect of whom an eligible child’s pension is payable immediately after the date of the member’s death.

CHAPTER 3 — Payment of pensions for surviving adults and eligible children

Payment of pensions under this Part

106

(1) A surviving adult’s pension or eligible child’s pension is payable from the day after the date of the member’s death.

(2) Unless the scheme manager directs otherwise, an eligible child’s pension payable in respect of an eligible child aged under the age of 18 must be paid—

(a) if the child is in the care of the member’s surviving adult, to the surviving adult; and

(b) in any other case, to the child’s guardian.

Stopping payment and recovery of pensions paid under this Part

107

(1) This regulation applies if—

(a) on a member’s death a pension has been awarded and paid under this Part; and

(b) it later appears to the scheme manager that the member or the person to whom the pension has been paid made a false declaration or deliberately suppressed a material fact in connection with the award.

(2) The scheme manager may—

(a) stop paying the pension; and

(b) recover any payment made under the award.

Provisional awards of eligible child's pensions: later adjustments

108

(1) This regulation applies where—

(a) an active member, deferred member or pensioner member of this scheme has died;

(b) a pension is paid in respect of one or more persons under this Part on the basis that they were eligible children as at the date of the member’s death and that there were then no other eligible children; and

(i) a person in respect of whom such a pension has been paid was not an eligible child on the date of death;

(ii) on that date a further person was an eligible child; or

(iii) a child who was born after the member’s death is an eligible child.

(2) The scheme manager may adjust the amount of pension payable in respect of each eligible child to take account of matters referred to in paragraph (1)(c) as applicable.

Adjustment of benefits to comply with the 2004 Act where members die over the age of 75

109

(1) This regulation applies if—

(a) a member of this scheme dies after reaching the age of 75; and

(b) apart from this regulation, any part of a pension to which any person becomes entitled under this Part on the death would not qualify as a dependants’ scheme pension for the purposes of section 167 (the pension death benefit rules) of the 2004 Act.

(2) The benefit payable to the person may be adjusted in any way as determined by the scheme manager so that it qualifies as a dependants’ scheme pension for the purposes of section 167 (the pension death benefit rules) of the 2004 Act.

Guaranteed minimum pensions for surviving spouses and civil partners

110

(1) If a person who is the surviving spouse or civil partner of a deceased active, deferred or pensioner member has a guaranteed minimum under section 13[^f00039] (minimum pensions for widows and widowers) of the 1993 Act in relation to benefits in respect of the deceased member under this scheme—

(a) nothing in these Regulations permits or requires anything that would cause requirements made by or under that Act in relation to such a person and such a person’s rights under a scheme not to be met in the case of the person;

(b) nothing in these Regulations prevents anything from being done which is necessary or expedient for the purposes of meeting such requirements in the case of the person; and

(2) If apart from this regulation—

(a) no pension would be payable to the surviving spouse or civil partner under this Part; or

(b) the weekly rate of the pensions payable would be less than the guaranteed minimum,

a pension the weekly rate of which is equal to the guaranteed minimum is payable to the surviving spouse or civil partner for life or, as the case may be, pensions the aggregate weekly rate of which is equal to the guaranteed minimum are so payable.

(3) Paragraph (2) does not apply to a pension that is forfeited—

(a) as a result of a conviction for treason; or

(b) under regulation 151, in a case where the relevant offence within the meaning of regulation 151 is an offence under the Official Secrets Acts 1911 to 1989[^f00040].

CHAPTER 4 — Payment of lump sum death benefits

Payment of lump sum death benefit

111

(1) A lump sum death benefit is payable in respect of—

(a) an active, deferred or pensioner member of this scheme who dies; or

(b) a pension credit member of this scheme who dies before any benefits attributable (directly or indirectly) to a pension credit become payable.

(2) But a lump sum death benefit is not payable in respect of—

(a) a pensioner member who is not also an active member who dies more than 5 years after the member’s full retirement pension or ill-health pension becomes payable; or

(b) a member who has reached the age of 75.

(3) Payment of a lump sum death benefit must be made within the period of 2 years beginning with the earlier of—

(a) the day on which the scheme manager first knew of the member’s death; and

(b) the day on which the scheme manager could reasonably be expected to have known of the member’s death.

(4) The scheme manager may decide not to pay a lump sum death benefit if it is impracticable to pay it.

Nominations for lump sum death benefits

112

(1) A member of this scheme may nominate a person or persons to receive a lump sum death benefit.

(2) The member may nominate—

(a) one or more individuals;

(b) one incorporated or unincorporated body; or

(3) A nomination may specify how payments are to be apportioned between—

(a) 2 or more individuals; or

(b) one or more individuals and one incorporated or unincorporated body.

(4) A nomination may only be made by notice to the scheme manager in a form required by the scheme manager.

(5) A member may revoke or alter a nomination by notice to the scheme manager in a form required by the scheme manager.

Invalid nominations of individuals

113

(1) If the nomination of an individual is invalid, any lump sum death benefit that would have been payable to the individual is payable to the member’s personal representatives.

(2) A nomination of an individual is invalid if—

(a) the individual nominated is the member’s spouse or civil partner and the individual is not the member’s spouse or civil partner when the member dies;

(b) the individual predeceases the member; or

(3) The scheme manager may determine that the nomination of an individual is invalid if the individual is convicted of manslaughter of the member or any other offence (apart from murder) of which the unlawful killing or wounding of the member is an element.

Payment of lump sum death benefit to nominees or personal representatives

114

(1) The scheme manager may pay a lump sum death benefit to—

(a) the person or persons nominated by the member under regulation 112 (“the nominees”);

(b) the member’s personal representatives; or

(2) If the scheme manager decides to pay all or part of the lump sum death benefit to the nominees and more than one individual has been nominated, the payment is to be made to them—

(a) in the proportions specified by the member in the nomination; or

(b) if the member has not specified proportions, in the proportions the scheme manager considers appropriate.

(3) If the scheme manager decides to pay the lump sum death benefit to both the nominees and the personal representatives, the payment is to be made to them in the proportions the scheme manager considers appropriate.

Members affected by court orders to former spouses and civil partners on death

115

(1) This regulation applies if on a member’s death the scheme manager is required under a court order to pay any part of a lump sum death benefit to the member’s former spouse or civil partner.

(2) The amount of lump sum death benefit payable under regulation 114 is first determined as if no such order had been made, and then this Part applies as if the amount payable under regulation 114 were reduced by the amount payable under the court order.

Pension protection lump sum death benefit

116

(1) A lump sum death benefit is treated for the purposes of the 2004 Act as a pension protection lump sum death benefit if and to the extent that—

(a) the member has given written notice to the scheme manager that the lump sum death benefit is to be so treated; and

(b) any other conditions that are required to be met for the lump sum death benefit to be so treated are met (see paragraph 14 of Part 2 (lump sum death benefit rule) of Schedule 29 to the 2004 Act[^f00041]).

(2) Tax may be deducted from the lump sum death benefit if the scheme manager is liable for tax under section 206 (special lump sum death benefits charge) of the 2004 Act[^f00042] in respect of a pension protection lump sum death benefit.

Recovery of payments

117

The scheme manager may recover a lump sum death benefit paid to any person if the person’s nomination is subsequently found to be invalid.

Payment of pension instead of lump sum for members who have reached the age of 75

118

(1) This regulation applies if a member dies–

(a) after reaching the age of 75, and

(b) before the fifth anniversary of the date on which a pension became payable to the member.

(2) The scheme manager may pay the pension to—

(a) the person or persons nominated by the member under regulation 112 (“the nominees”);

(b) the member’s personal representatives; or

(3) The scheme manager is to pay the pension in the proportions the scheme manager considers appropriate if—

(a) the scheme manager decides to pay all or part of the pension to the nominees and more than one individual has been nominated; or

(b) the scheme manager decides to pay the pension to both the nominees and the personal representatives.

(4) A pension payable under this regulation—

(a) is payable for the pension protection period; and

(b) must be equal to the sum of—

(i) the pension that would have been payable to the member had the member lived until the end of the pension protection period; and

(ii) any increases in the annual rate of that pension under the 1971 Act during that period.

(5) In this rule “the pension protection period” means the period from the date of the member’s death until the fifth anniversary of the date on which the member’s pension became payable.

CHAPTER 5 — Amount of lump sum death benefits

Meaning of “final pay”

119

(1) In this Chapter, “final pay” in relation to a continuous period of pensionable service means the greater of the following amounts—

(a) the amount of a member’s pensionable earnings payable in respect of the 12 months ending with the last day of pensionable service;

(b) the amount of a member’s pensionable earnings payable in respect of any scheme year (“the earnings year”) in the 10 scheme years immediately before the last active scheme year.

(2) For the purpose of determining which of the amounts mentioned in paragraph (1) is the greater—

(a) if the member’s continuous period of pensionable service was less than 12 months, the amount in paragraph (1)(a) is an amount equal to the member’s annualised final pay; and

(b) the amount in paragraph (1)(b) is adjusted for inflation in accordance with paragraph (3).

(3) The amount of pensionable earnings payable in respect of the earnings year is adjusted for inflation by increasing it by the same amount as that by which the annual rate of a pension of an amount equal to the amount of pensionable earnings would have been increased under the 1971 Act by the day following the last day of pensionable service if—

(a) that pension was eligible to be so increased; and

(b) the beginning date for that pension was the first day of the next scheme year after the earnings year.

(4) In this regulation, if the member is a transition member with continuity of service, “pensionable earnings” in respect of any period includes the member’s pensionable earnings under an existing scheme before the transition date for that member.

Meaning of “annualised final pay”

120

(1) For the purposes of this Chapter, for a continuous period of pensionable service that is less than 12 months, a member’s annualised final pay is—

$$FP × 365 N$ where— FP is the amount of the member’s pensionable earnings payable in respect of that period of service; and N is the number of days in that period.$

(2) If the continuous period of pensionable service includes the day29thFebruary, paragraph(1) has effect with the substitution for “365” of “366”.

(3) In this regulation, if the member is a transition member with continuity of service, “pensionable earnings” payable in respect of any period includes the member’s pensionable earnings under an existing scheme before the transition date for that member.

Amount payable on death of active member (death in service)

121

(1) This regulation applies in relation to a continuous period of pensionable service under this scheme (“period of service”).

(2) If the member is a transition member with continuity of service, the period of service includes the member’s period of pensionable service under an existing scheme before the transition date for that member.

(3) For the purpose of this regulation, a person dies in service if the person dies while an active member of this scheme in relation to a period of service.

(4) The amount of the lump sum death benefit payable in respect of a person who dies in service (P) is the amount in paragraph(5) or (6), whichever is the greater.

(5) The amount in this paragraph is an amount equal to $X−Y$where—

X is— if P’s period of service was at least 12 months, twice the amount that would have been P’s final pay if P had ceased to be in pensionable service at the time of death; or if P’s period of service was less than 12 months, twice P’s annualised final pay; and

Y is— any lump sum paid under this scheme to P before P’s death; and any lump sum death benefit payable under this scheme or under a partnership pension account death benefits scheme in respect of P after P’s death.

(6) The amount in this paragraph is an amount equal to$X−Y$where—

X is the total annual amount of P’s full retirement pensions in relation to that period of service, multiplied by 5;

Y is the total amount of any payments of retirement pension made to P under this scheme; and

“total annual amount” in relation to P’s full retirement pensions means the total of— the annual rate of each description of full retirement pension calculated as if the beginning date for that pension were the date of P’s death, but without subtracting the early payment reduction (if any); and the amount of increase (if any) in the annual rate of that pension under the 1971 Act payable as at the date of P’s death.

(7) For the purpose of this regulation, any amounts paid or payable to or in respect of P in the capacity of a pension credit member are disregarded.

Amount payable on death of deferred member or pensioner member (death out of service)

122

(1) This regulation applies in relation to a continuous period of pensionable service under this scheme (“period of service”).

(2) If the member is a transition member with continuity of service, the period of service includes the member’s period of pensionable service under an existing scheme before the transition date for that member.

(3) For the purpose of this regulation, a person dies out of service if the person—

(a) dies while a deferred member or pensioner member of this scheme in relation to that period of service; and

(b) is not an active member of the scheme when the person dies.

(4) The amount of the lump sum death benefit payable in respect of a person who dies out of service (P) is equal to—

(a) the total annual amount of P’s full retirement pensions in relation to the period of service, multiplied by 5; less

(b) the total amount of any payments of retirement pension made to P under this scheme.

(5) In paragraph (4)(a), “total annual amount” in relation to P’s full retirement pensions means the total of—

(a) the annual rate of each description of full retirement pension calculated as if the beginning date for that pension were—

(i) if P died while a deferred member of the scheme, the date of P’s death; or

(ii) if P died while a pensioner member of the scheme, the day P’s pension was deemed to begin for the purposes of section 8(2) (meaning of “pension” and other supplementary provisions) of the 1971 Act[^f00043]; and

(b) the amount of increase (if any) in the annual rate of that pension under the 1971 Act payable as at the date of P’s death.

(6) For the purpose of this regulation any amounts paid or payable to or in respect of the member in the capacity of a pension credit member are disregarded.

Amount payable on death of pension credit member

123

(1) Paragraph (2) applies if a pension credit member of this scheme dies before any benefits derived from a pension credit have become payable to the member.

(2) The amount of the lump sum death benefit is equal to 25% of the cash equivalent that would have been payable under Chapter 2 of Part 4A (requirements relating to pension credit benefit: transfer values) of the 1993 Act[^f00044] in respect of the member’s right to benefits under this scheme attributable (directly or indirectly) to a pension credit if—

(a) the member had been entitled to require the payment of that amount; and

(b) the amount had been payable as at the date of the member’s death.

(3) Paragraph (4) applies if a pension credit member dies after the pension credit member’s pension becomes payable.

(4) The amount of the lump sum death benefit is equal to the amount of pension credit member’s pension that would have been payable to the member during so much of the period of 5 years beginning with the date on which the pension became payable as falls after the date of the member’s death.

(5) In paragraph (4), “amount of pension credit member’s pension” means the total of—

(a) the annual rate of that pension as at the date the pension was deemed to begin for the purposes of section 8(2A) (meaning of “pension” and other supplementary provisions) of the 1971 Act[^f00045]; and

(b) the amount of increase (if any) in the annual rate of that pension under that Act payable as at the date of the member’s death.

PART 9 — Contributions

Rate of member contributions

124

(1) An active member of this scheme must pay contributions to this scheme (“member contributions”) on the member’s pensionable earnings for each pay period at a rate determined under this regulation (“member contributions rate”).

(2) The member contributions rate which applies to a member’s pensionable earnings is the rate which applies when the member’s pensionable earnings are paid.

(3) For the purposes of paragraph (2), assumed pay for any pay period is treated as having been paid when pensionable earnings for that period would have been paid had the circumstances in regulation 24(3) which apply to the member not applied.

(4) The member contributions rate during a scheme year to which a table set out in this regulation applies is the percentage, set out in the table, which applies to a member’s annualised rate of pensionable earnings calculated in relation to each payment of a member’s pensionable earnings.

(5) Where the member’s pensionable earnings for a scheme year are payable to the member in 12 instalments, the member’s annualised rate of pensionable earnings is calculated as follows, rounded down to the nearest whole pound—

$12P$

where P is the amount of a payment of the member’s pensionable earnings.

(6) Where the member’s pensionable earnings for a scheme year are payable otherwise than in 12 instalments, the member’s annualised rate of pensionable earnings is calculated as follows, rounded down to the nearest whole pound—

$$P × 365 N$ where— P is the amount of a payment of the member’s pensionable earnings; and N is the number of days in the applicable payment period.$

(7) For the purposes of paragraph (6) the applicable payment period is—

(a) if it is the member’s first payment of pensionable earnings in relation to a continuous period of pensionable service in a qualifying judicial office, the number of days in the period beginning on the day the member commenced the period of pensionable service in the qualifying judicial office and ending on the day before the day that this payment was made; or

(b) in any other case, the period beginning on the day the previous payment of the member’s pensionable earnings was made and ending on the day before the day that this payment was made.

(8) If the scheme year in which the payment of pensionable earnings is made includes the day 29th February, paragraph (6) has effect with the substitution for “365” of “366”.

Annualised rate of pensionable earnings	Member contributions rate
Up to but not including £15,001	4.6%
£15,001 to but not including £21,001	4.6%
£21,001 to but not including £47,001	5.45%
£47,001 to but not including £150,001	7.35%
£150,001 and above	8.05%
Annualised rate of pensionable earnings	Member contributions rate
---	---
Up to but not including £15,001	4.6%
£15,001 to but not including £21,211	4.6%
£21,211 to but not including £48,472	5.45%
£48,472 to but not including £150,001	7.35%
£150,001 and above	8.05%
Annualised rate of pensionable earnings	Member contributions rate
---	---
Up to but not including £15,001	4.6%
£15,001 to but not including £21,423	4.6%
£21,423 to but not including £51,006	5.45%
£51,006 to but not including £150,001	7.35%
£150,001 and above	8.05%
Annualised rate of pensionable earnings	Member contributions rate
---	---
Up to but not including £15,001	4.6%
£15,001 to but not including £21,637	4.6%
£21,637 to but not including £51,516	5.45%
£51,516 to but not including £150,001	7.35%
£150,001 and above	8.05%

Amount of pensionable earnings

125

(1) For the purposes of regulation 124, the amount of a member’s pensionable earnings for any pay period is determined in accordance with this regulation.

(2) Unless paragraph (3) or (4) applies, the amount of the member’s pensionable earnings during any period of assumed pay is equal to the member’s assumed pay.

(3) For any period of assumed pay under regulation 24(3)(a), the amount of the member’s pensionable earnings is equal to the member’s reduced pay while on sick leave.

(4) For any period of assumed pay under regulation 24(3)(b) or(c), the amount of the member’s pensionable earnings is the amount of remuneration or statutory pay actually paid to or for the member in respect of the period of adoption leave, maternity leave, parental leave, paternity leave or additional paternity leave.

Payment of member contributions

126

(1) Member contributions are to be deducted by the member’s employer from the member’s pensionable earnings for each pay period.

(2) A member’s employer may make contributions on the member’s behalf in circumstances determined by the scheme manager.

(3) A member is not required to pay member contributions—

(a) while the member is on unpaid adoption leave, maternity leave, parental leave, paternity leave or additional paternity leave; or

(b) with the employer’s approval, while the member is on unpaid leave.

Employers' contributions

127

(1) Each employer of an active member of this scheme must pay contributions to this scheme in respect of the member at the rate and at the intervals the scheme manager may for the time being determine after consultation with the scheme actuary.

(2) Each employer of an active member of this scheme must in addition pay to this scheme—

(a) annual administration charges; and

(b) any other administrative charges,

at such intervals and at such rates as the scheme manager may from time to time determine.

Deduction of payments for extra pension under Schedule 1

128

Schedule 1 has effect for the purpose of enabling deductions of payments for—

(a) added pension; and

(b) an effective pension age.

Refund of all member contributions and payments for extra pension made by the member

129

(1) Member contributions and payments resulting from the exercise of an option under Schedule 1 made by the member are only refundable if—

(a) regulation 21 applies; or

(b) the member ceases to be in pensionable service under this scheme and—

(i) the member has less than 2 years’ qualifying service;

(ii) if a transfer value payment has been received by this scheme in relation to the member, it was from another occupational pension scheme; and

(iii) the member has not reached normal pension age under this scheme.

(2) If paragraph (1)(b) applies, the member is entitled to be paid an amount equal to the sum of all member contributions and payments resulting from the exercise of an option under Schedule 1 made by the member, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act[^f00046] as a result of a refund of those contributions and payments.

(3) If all member contributions and payments for extra pension made by the member are refunded under this regulation, the member’s rights under this scheme are extinguished.

Refund of payments for extra pension made by the member

130

(1) This paragraph applies if—

(a) a member cancels an effective pension age option during the periodical payment period under Part 3 of Schedule 1;

(b) the member has less than 2 years’ qualifying service; and

(2) The member is entitled to be paid an amount equal to all the payments for extra pension made by the member in respect of that option, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act as a result of a refund of those payments.

PART 10 — Transfers

CHAPTER 1 — Preliminary

Application of Part

131

This Part—

(a) supplements the rights conferred by or under Chapter4 of Part 4 (transfer values) of the 1993 Act and is without prejudice to that Chapter; and

(b) supplements the rights conferred by or under Chapter 5 of that Part[^f00047] (early leavers: cash transfer sums and contribution refunds) and is without prejudice to that Chapter.

Interpretation of Part

132

In this Part—

“cash equivalent” means an amount calculated in accordance with regulations made under section 93 (calculation of cash equivalents) of the 1993 Act[^f00048];

“guarantee date” has the meaning given in regulation 135;

“guaranteed cash equivalent” means, in relation to calculating the transfer value of accrued rights to benefits under this scheme, the cash equivalent of those benefits as at the guarantee date, as specified in a statement of entitlement;

“statement of entitlement” means, in relation to an active or deferred member’s accrued rights to benefits under this scheme, a statement by the scheme manager of the cash equivalent of those benefits as at the guarantee date;

“transfer value” means— for accrued rights to benefits under this scheme, an amount equal to— the guaranteed cash equivalent of those benefits; or the guaranteed cash equivalent together with any increase payable under regulation137; and for accrued rights to benefits under another pension scheme, an amount— determined by the scheme actuary of that scheme; and specified in a statement of accrued rights provided by the scheme manager of that scheme.

CHAPTER 2 — Transfers out

Transfer value payments made to other schemes or pension arrangements

133

(1) A transfer value payment may only be made in respect of the accrued rights to benefits of an active or deferred member of this scheme.

(2) A transfer value payment may only be made to—

(a) a registered pension scheme that is not a connected scheme; or

(b) a pension arrangement that is a qualifying recognised overseas pension scheme for the purposes of Part 4 (pension schemes etc.) of the 2004 Act.

(3) A transfer value payment may not be made in respect of rights that are attributable (directly or indirectly) to a pension credit.

(4) A member may only require the scheme manager to use a transfer value payment in a way specified in section 91(2) (ways of taking right to cash equivalent) of the 1993 Act[^f00049].

(5) The whole of the transfer value payment must be made in accordance with the provisions of this regulation.

(6) If section 92(2) (further provisions concerning exercise of option under section 91) of the 1993 Act[^f00050] applies, benefits attributable to the following may be excluded from the transfer value payment—

(a) the member’s accrued rights to a guaranteed minimum pension; or

(b) the member’s accrued rights attributable to service in contracted-out employment, within the meaning of Part 3 (certification of pension schemes and effects on members’ state scheme rights and duties) of the 1993 Act, on or after 6 April 1997.

Application for a statement of entitlement

134

(1) This regulation applies in relation to an active or deferred member of this scheme (P) who requires a transfer value payment to be made in respect of P’s accrued rights to benefits under this scheme.

(2) Before requesting the transfer value payment, P must apply for a statement of entitlement by notice to the scheme manager.

(3) P may withdraw the application by notice to the scheme manager at any time before the statement is provided.

(4) P may make a second application by notice to the scheme manager in the period of 12 months beginning with the date of the first application[^f00051].

Statement of entitlement

135

(1) The scheme manager must specify in the statement of entitlement the date by reference to which the cash equivalent is calculated (“guarantee date”).

(2) Unless paragraph (4) applies, the guarantee date must fall within both the following periods—

(a) the 3 months beginning with the date of the member’s application for the statement of entitlement (“the 3 month period”); and

(b) the 10 days ending with the date on which the member is provided with that statement (“the 10 day period”).

(3) In counting the 10 day period, Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(4) The scheme manager may specify in the statement of entitlement a guarantee date that falls within the 6 months beginning with the date of the member’s application for the statement of entitlement if—

(a) for reasons beyond the control of the scheme manager, the information needed to calculate the amount of the cash equivalent cannot be obtained before the end of the 3 month period; and

(b) the scheme manager considers it reasonable to specify a guarantee date that falls outside the 3 month period.

Request for transfer value payment to be made

136

(1) An active or deferred member of this scheme who is provided with a statement of entitlement may request a transfer value payment to be made in respect of the member’s accrued rights to benefits under this scheme.

(2) The request for the transfer value payment must—

(a) be made by notice to the scheme manager;

(b) specify the pension scheme or other pension arrangement to which the transfer value payment is to be made; and

(3) The member by notice to the scheme manager may withdraw the request at any time before the transfer value payment is made.

(4) The member may not withdraw the request if an agreement for the use of the whole or part of the transfer value payment has already been entered into with a third party.

Calculating the amount of a transfer value

137

(1) If a transfer value is paid later than 6 months after the guarantee date, the amount of the guaranteed cash equivalent must be increased in accordance with regulations made under section93 (calculation of cash equivalents) of the 1993 Act.

(2) If the transfer value is less than the minimum transfer value, the amount of the transfer value must be increased so that it is equal to the amount of the minimum transfer value.

(3) In this regulation, “minimum transfer value” means the total of—

(a) the sum of all member contributions and payments for extra pension made by the member; and

(b) the sum of all transfer value payments received by this scheme in relation to the member.

“member contributions” has the meaning given in regulation 124; and

“payments for extra pension” are payments made under Schedule 1.

Effect of transfers-out

138

If a transfer value payment is made under this Chapter in respect of a member’s accrued rights to benefits under this scheme, those rights are extinguished.

CHAPTER 3 — Transfers in

Application of Chapter

139

This Chapter applies in relation to an active member of this scheme (P) who has accrued rights under another pension scheme.

Interpretation of Chapter

140

In this Chapter—

“accrued rights” does not include rights accrued under the Judicial Additional Voluntary Contributions Scheme if the scheme manager considers that the amount to which the member is entitled under that Scheme is sufficient for the purchase of an annuity for the member;

“another pension scheme” means— another occupational pension scheme that is a registered pension scheme but is not a connected scheme; a personal pension scheme; or the Judicial Additional Voluntary Contributions Scheme;

“Judicial Additional Voluntary Contributions Scheme” means the additional voluntary contribution scheme constituted under Part 2 of the Judicial Pensions (Additional Voluntary Contributions) Regulations 1995[^f00052];

“transfer date” means the earlier of— if the scheme manager has provided a transfer statement, the last day of the period of 2 months beginning with the date of the statement; or the day on which the transfer value payment is received by the scheme manager;

“transfer payment request” means a request to the scheme manager under this Chapter that a transfer value payment be accepted from another pension scheme;

“transfer statement” means a statement under regulation 142(2).

Transfer payment requests

141

(1) P may by notice to the scheme manager make a transfer payment request in respect of some or all of P’s accrued rights to benefits under another pension scheme.

(2) A transfer payment request—

(a) must specify—

(i) the pension scheme from which the transfer value payment is requested to be made; and

(ii) the anticipated amount of the transfer value payment;

(b) must meet any other conditions the scheme manager requires; and

(c) subject to paragraph (3), must be made during the period of 12 months beginning with the day on which P commences service in a qualifying judicial office .

(3) A transfer payment request in relation to the Judicial Additional Voluntary Contributions Scheme must be made—

(a) within the period of 3 months ending with the day on which P is first entitled to receive retirement benefits under this scheme; or

(b) if the scheme manager considers it reasonable in the circumstances, within any longer period the scheme manager directs.

(4) The scheme manager may direct that a transfer payment request is to be treated as having been made earlier than it was if the scheme manager considers it reasonable to do so in the circumstances.

(5) Subject to paragraph (6), on receiving a transfer payment request, the scheme manager may accept the transfer value payment if all of such conditions as the scheme manager may have required are met.

(6) The scheme manager may not accept a transfer payment request if—

(a) it would be applied in whole or in part in respect of—

(i) the member’s entitlement to a guaranteed minimum pension; or

(ii) the entitlement of the member’s spouse to a guaranteed minimum pension; and

(b) it is less than the amount required for that purpose, as calculated in accordance with actuarial tables.

Transfer statement

142

(1) This regulation applies in relation to a request by P for a transfer value payment to be accepted from another pension scheme.

(2) The scheme manager may require that, before making a transfer payment request, P must ask the scheme manager to provide a statement of the amount of transferred pension that P will be entitled to count under regulation 143 if the transfer date falls within the period of 2 months beginning with the date of that statement.

(3) The amount specified in the transfer statement must be an amount calculated by the scheme manager in accordance with actuarial guidance and tables by reference to—

(a) factors relating to P’s circumstances as at the end of that 2-month period; and

(b) any other factors as at the date of the statement that the scheme actuary considers should apply.

Amount of transferred pension

143

(1) This regulation applies in relation to a transfer value payment received from another pension scheme in relation to P.

(2) For the scheme year in which the transfer date falls, the amount of transferred pension P is entitled to count in respect of the transfer value payment is—

(a) the amount specified in the transfer statement; or

(b) if such a statement is not provided, an amount calculated by the scheme manager in accordance with actuarial guidance and tables by reference to any factors as at the transfer date that the scheme actuary considers should apply.

(3) The amount of transferred pension P is entitled to count in a scheme year must not be more than 50% of P’s annual rate of pensionable earnings as at the day P becomes an active member of this scheme.

PART 11 — Actuarial valuations and employer cost cap

Appointment of scheme actuary and actuarial valuations

144

(1) The Department of Justice must appoint an individual (the “scheme actuary”) to provide a consulting service on actuarial matters in relation to this scheme and any connected scheme.

(2) The scheme actuary is responsible for—

(a) carrying out valuations of this scheme and any connected scheme; and

(b) preparing reports on the valuations.

(3) Before appointing an individual as scheme actuary the Department of Justice must be satisfied that the actuary is appropriately qualified to carry out valuations of this scheme and any connected scheme in accordance with Department of Finance and Personnel directions under section 11 of the Act (the “Department of Finance and Personnel directions”).

(4) The scheme administrator is responsible for providing the scheme actuary with any data that the scheme actuary requires in order to carry out a valuation and prepare a report on the valuation.

(5) A valuation of the scheme and any connected scheme and the preparation of a report on the valuation must be carried out in accordance with the Department of Finance and Personnel directions.

(6) Valuations of the scheme must be carried out within a time-frame which enables requirements in the Department of Finance and Personnel directions regarding dates which are applicable to the valuation to be met.

Employer cost cap

145

(1) The employer cost cap for this scheme is 25.7 % of pensionable earnings of members of this scheme.

(2) If the cost of this scheme goes beyond the margin either side of the employer cost cap for this scheme specified in regulations under section 12(5)(a) (employer cost cap) of the Act, the Department of Justice must consult the scheme advisory board and such persons as appear likely to be affected by any steps that may be taken, with a view to reaching agreement with the relevant Lord Chief Justice on the steps required to achieve the target cost for this scheme.

(3) If, following such consultation, agreement is not reached, the percentage of the member’s pensionable earnings specified in regulation 39(3) as the amount of earned pension for a scheme year must be adjusted for pensionable earnings after the date of adjustment, so that the target cost for this scheme is achieved.

(4) In this regulation—

(a) “cost of this scheme” means the cost of this scheme calculated following a valuation in accordance with regulation 144; and

(b) “target cost for this scheme” means the target cost for this scheme specified in regulations under section 12(5)(b) (employer cost cap) of the Act.

PART 12 — Supplementary

CHAPTER 1 — Dual capacity members

Meaning of “dual capacity member”

146

(1) A person (P) is a dual capacity member of this scheme if—

(a) P is a member of this scheme in2 or more of the following capacities—

(i) an active member;

(ii) a deferred member;

(iii) a pensioner member;

(b) P is both a pension credit member of this scheme and a member of this scheme in one or more of the following capacities—

(i) an active member;

(ii) a deferred member;

(iii) a pensioner member;

(d) P is a pension credit member of this scheme entitled to 2 or more pension credits.

(2) For the purpose of paragraph (1)(a) or (b)—

(a) in determining whether a person who is an active member is also a pensioner member, the fact that the person is an active member and the person’s rights in that capacity are to be disregarded; and

(b) in determining whether a person who is an active member or pensioner member is also a deferred member, the fact that the person is an active member or pensioner member and the person’s rights in that capacity are to be disregarded.

Payment of benefits to or in respect of a dual capacity member

147

(1) If a person is a dual capacity member of this scheme—

(a) the benefits that are payable to or in respect of the member in each of the member’s capacities are treated separately for the purposes of these Regulations; and

(b) the amounts payable to or in respect of the member in each of the member’s capacities are determined accordingly.

(2) In relation to payment of retirement benefits, paragraph (1) does not affect the interpretation of regulation 60 if a member is both an active member and a pensioner member by virtue of that regulation.

(3) In relation to payment of death benefits, paragraph (1) does not prevent—

(a) the calculation under regulation 121 of a lump sum payable on the death of an active member of this scheme being made by reference to amounts that are relevant to the member in another capacity;

(b) the calculation under regulation 122 of a lump sum payable on the death of a deferred member or pensioner member of this scheme being made by reference to amounts that are relevant to the member in both of those capacities; or

(i) a deferred member of this scheme in relation to 2 or more continuous periods of pensionable service; or

(ii) a pensioner member of this scheme in relation to 2 or more continuous periods of pensionable service.

CHAPTER 2 — Payment of benefits: general

Late payment of retirement index adjustment

148

Nothing in these Regulations requires any part of a pension attributable to a retirement index adjustment to be paid before the end of the last active scheme year.

Commutation of small pensions

149

(1) This regulation applies if—

(a) the pension entitlement of a single capacity member or the pension entitlement of a single capacity member’s beneficiary does not exceed the small pensions commutation maximum; or

(b) the total pension entitlement of a dual capacity member or the total pension entitlement of a dual capacity member’s beneficiary does not exceed the small pensions commutation maximum.

(2) Unless the member has reached state pension age, this regulation does not apply if—

(a) the pension entitlement of the member or the member’s beneficiary under paragraph(1)(a) is equal to or exceeds the member’s guaranteed minimum; or

(b) the total pension entitlement of the member or the member’s beneficiary under paragraph(1)(b) is equal to or exceeds the member’s guaranteed minimum.

(3) The scheme manager may pay the member or the member’s beneficiary a lump sum of an amount advised by the scheme actuary as representing the cash value of the pension if—

(a) the member or the member’s beneficiary consents to receipt of a lump sum in place of the pension; and

(b) the requirements of the commutation provisions that apply in the circumstances are met.

(4) The payment of a lump sum under this regulation in place of a pension discharges all liabilities under this scheme in respect of that pension.

(5) In this regulation—

“the commutation provisions” means the provisions permitting the commutation of pensions set out in— regulation 2 (commutation of a pension under an occupational pension scheme) of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997[^f00053]; paragraph 7 of Schedule 29 (registered pension schemes: authorised lump sums - supplementary) to the 2004 Act (which defines trivial commutation lump sums for the purposes of Part 4 of that Act)[^f00054] and, in relation to a pension payable under Part8, paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of Part 4 of that Act)[^f00055]; and regulation 3 (commutation of the whole of pension credit benefit) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000[^f00056];

“single capacity member” means a member of this scheme who is not a dual capacity member; and

“the small pensions commutation maximum” means the amount that is permitted to be commuted having regard to the commutation provisions that apply in the circumstances.

Guaranteed minimum pensions

150

(1) If a member has a guaranteed minimum under section 10 (earner’s guaranteed minimum) of the 1993 Act[^f00057] in relation to benefits under this scheme—

(a) nothing in these Regulations permits or requires anything that would cause requirements under that Act in relation to such a member and their rights under this scheme not to be met in the case of the member;

(b) nothing in these Regulations prevents anything from being done which is necessary or expedient for the purposes of meeting such requirements in the case of the member; and

(2) If apart from this regulation—

(a) no pension would be payable to the member under this scheme; or

(b) the weekly rate of the pensions payable would be less than the guaranteed minimum,

a pension at a weekly rate equal to the guaranteed minimum is payable to the member for life from the date on which the member reaches state pension age or, as the case may be, pensions the aggregate weekly rate of which is equal to the guaranteed minimum are so payable.

(3) Subject to paragraph (4), if—

(a) on reaching state pension age the member is still in service (whether or not it is in a qualifying judicial office); and

(b) where the member is not in a qualifying judicial office, the member consents to a postponement of the member’s entitlement under paragraph (2),

paragraph (2) does not apply until the member ceases work.

(4) If the member continues in service for a further 5 years after reaching state pension age and remains in service, the member is entitled from the end of that period to so much of the member’s pension under Parts 6 and 7 as equals the member’s guaranteed minimum (or, as the case may be, to so much of the member’s pensions under Parts 6 and 7 as together have a weekly rate equal to the member’s guaranteed minimum), unless the member consents to a further postponement of the entitlement.

(5) In the circumstances provided for in paragraph (3) or (4), the amount of the guaranteed minimum to which the member is entitled under this regulation is increased in accordance with section 11 (increase of guaranteed minimum where commencement of guaranteed minimum pension postponed) of the 1993 Act.

(6) If—

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