The European Parliamentary (United Kingdom Representatives) Pensions (Consolidation and Amendment) Order 1994

• (a) the amount calculated in accordance with sub-paragraph (1) above at the actual date of retirement, save that, to the extent that the amount is calculated by reference to that part of the participant’s actual reckonable service as fell after he attained the age of sixty-five years, the overall limit of two-thirds of the multiple may be disregarded; or

• (b) the amount which could have been provided at normal retirement date in accordance with sub-paragraph (1) above increased either actuarially in respect of the period of deferment or in proportion to any increase in the index during that period.

• (4) On leaving pensionable service before normal retirement date a deferred pension calculated in accordance with paragraph (2)(b) above but increased by up to 3 per cent for each complete year, or, if greater, in proportion to any increase in the index which has accrued during the period of deferment.

SCHEDULE 3

PART I — COMMUTATION OF PENSIONS

1

• (1) In this Schedule, unless the context otherwise requires—

• “Class A participant”, “Class B participant” and “Class C participant” have the meanings assigned to them in Schedule 2;

• “N” means in respect of the pension of a person, the period in years and any fraction of a year of his actual reckonable service before the relevant date or (if earlier) his sixty-fifth birthday;

• “NS” means in respect of the pension of a person, the lesser of 40 years and the period in years and any fraction of a year of his prospective actual reckonable service at the relevant date;

• “pension” means a pension, expressed as an annual amount, under article 7; and “maximum pension” shall be construed accordingly;

• “prospective actual reckonable service” means in respect of a person— at a date falling before his sixty-fifth birthday, his actual reckonable service before and after that date, assuming continuous actual reckonable service by him from that date until his sixty-fifth birthday; at a date falling on or after his sixty-fifth birthday, his actual reckonable service at his sixty-fifth birthday;

• “retained benefits” has the meaning assigned to it in Schedule 2;

• “retained lump sum benefits” means retained benefits which are payable as single payments whether by way of commutation of accrued pension rights, refund of contributions or otherwise.

• (2) Any reference in this Schedule to the beginning of a period of actual reckonable service of a person means any such beginning on his becoming a participant other than after an interval in his actual reckonable service occurring on a dissolution of the European Parliament.

• (3) Any reference in this Schedule to a person being or no longer being a participant shall be construed as a reference to whichever of those circumstances is applicable to the calculation of his pension.

Class A Participant

Maximum commutation for participants (including those retiring on grounds of ill-health)

2

For the purposes of article 8(4), in the case of a Class A participant entitled to a pension under article 7—

• (1) who has no retained lump sum benefits and who either was a participant on his sixty-fifth birthday or is so entitled by virtue of article 11 (ill-health pensions), the maximum commutable sum shall be the amount of—

• (i) the number of eightieths of the multiple, either specified in the table in Part II of this Schedule in relation to the number of complete years of his actual reckonable sevice or (if the period of that service includes a fraction of a year) calculated proportionately by reference to the numbers specified in that table; and

• (ii) the product of three-eightieths of the multiple and any period, expressed in years and any fraction of a year, determined in respect of him under article 24 (Transfers from other pension schemes),

subject to a maximum of the amount of 120/80 of the multiple;

• (2) who has retained lump sum benefits, but would otherwise be within sub-paragraph (1) above, the amount of the maximum commutable sum shall be whichever is the greater of—

• (i) the amount of 120/80 of the multiple, less the amount of his retained lump sum benefits; and

• (ii) the amount of the product of three-eightieths of the multiple and the aggregate, expressed in years and any fraction of a year subject to a maximum of forty years, of his actual reckonable service and of any period determined in respect of him under article 24 (Transfers from other pension schemes).

Maximum commutation on early retirement

3

For the purposes of article 8(4), in the case of a Class A participant entitled to a pension under article 7 by virtue of either article 9 or article 10—

• (1) who has no retained lump sum benefits, was no longer a participant on his sixty-fifth birthday and is not entitled to a pension by virtue of article 11 (Ill-health pensions), the amount of the maximum commutable sum, subject to a maximum of 120/80 of the multiple, shall be whichever is the greater of—

• (i) the amount of the product of N/NS and the number of eightieths of the multiple, either specified in the table in Part II of this Schedule in relation to the number of complete years of his prospective actual reckonable service or (if the period of that service includes a fraction or a year) calculated proportionately by reference to the numbers specified in that table; and

• (ii) the amount of the product of three-eightieths of the multiple and the period, expressed in years and any fraction of a year, of his actual reckonable service,

aggregate with the amount referred to in paragraph 2(1)(ii);

• (2) who has retained lump sum benefits but would otherwise be within sub-paragraph (1) above, the amount of the maximum commutable sum shall be whichever is the greater of—

• (i) the aggregate of—

• (a) the amount referred to in sub-paragraph (1)(i) above, subject to a maximum of the product of N/NS and the amount referred to in paragraph 2(2)(i); and

• (b) the amount referred to in paragraph 2(1)(ii), subject to a maximum of the amount of 120/80 of the multiple, less his retained lump sum benefits; and

• (ii) the amount referred to in paragraph 2(2)(ii).

Earnings cap

4

For a Class A participant, the maximum commutable sum shall be further limited to an overall maximum of 120/80 of the permitted maximum.

Class B and Class C Participants

5

Paragraphs 2 and 3 of this Schedule shall apply to Class B and Class C participants save that in the case of such a participant who satisfies the conditions set out in paragraph 2 above there may be added to the maximum commutable sum calculated by virtue of that paragraph the amount of the product of three-eightieths of the multiple and the period, expressed in years and any fraction of a year and subject to a maximum of five years, being his actual reckonable service in excess of forty years and occurring after his sixty-fifth birthday.

PART II — Maximum Commutation of Pensions

Number of years	Number of eightieths
1	3
2	6
3	9
4	12
5	15
6	18
7	21
8	24
9	30
10	36
11	42
12	48
13	54
14	63
15	72
16	81
17	90
18	99
19	108
20 or more	120

SCHEDULE 4 — PERCENTAGE ABATEMENT OF PENSION ENTITLEMENT UNDER ARTICLE 10

1

The pension to which a person is entitled by virtue of article 10 shall be abated, having regard to the person’s age and the length of his qualifying period at the date of his application or, if later, such other date as may be there specified, from the date from which that pension is payable by the percentage specified in the table below.

2

The pension to which a person is entitled by virtue of article 10 shall not be reduced below the rate of the guaranteed minimum pension, as provided for by article 7(9).

Age pension brought into payment	Qualifying period (years)	Qualifying period (years)	Qualifying period (years)	Qualifying period (years)	Qualifying period (years)	Qualifying period (years)
	20 or more	19	18	17	16	15
Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.	Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.	Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.	Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.	Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.	Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.	Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.
65	0.0	0.0	0.0	0.0	0.0	0.0
64	0.0	0.0	0.0	0.0	0.0	7.0
63	0.0	0.0	0.0	0.0	7.0	13.7
62	0.0	0.0	0.0	7.0	13.7	19.9
61	0.0	0.0	7.0	13.7	19.9	25.6
60	0.0	7.0	13.7	19.9	25.6	30.8
59	7.0	13.7	19.9	25.6	30.8	35.6
58	13.7	19.9	25.6	30.8	35.6	39.9
57	19.9	25.6	30.8	35.6	39.9	43.7
56	25.6	30.8	35.6	39.9	43.7	47.0
55	30.8	35.6	39.9	43.7	47.0	50.0
54	35.6	39.9	43.7	47.0	50.0	52.8
53	39.9	43.7	47.0	50.0	52.8	55.4
52	43.7	47.0	50.0	52.8	55.4	57.7
51	47.0	50.0	52.8	55.4	57.7	59.7
50	50.0	52.8	55.4	57.7	59.7	61.8

SCHEDULE 5 — PERSONS QUALIFYING FOR CHILDREN'S PENSIONS

1

In this Schedule “the deceased” means the person on whose death a children’s pension is or may be payable under article 14 and “child” has the same meaning as in that article.

2

For the purposes of article 14 a child shall be treated as within his period of full-time education while—

• (a) he is receiving full-time instruction at any university, college, school or other educational establishment, or

• (b) he is undergoing full-time or substantially full-time training for any trade profession or vocation;

and any question arising under this paragraph shall be determined by the Managers.

3

A child shall not be treated as a relevant child for the purposes of article 14—

• (a) as being an illegitimate or adopted child of the deceased, if he was born or adopted, as the case may be, after the termination of the marriage of the deceased, or

• (b) as being the child of a wife of the deceased, if he was born or became her child after the termination of her marriage with the deceased,

unless, in the case of an adopted child falling within sub-paragraph (a) or sub-paragraph (b) of this paragraph, the Managers direct that they are satisfied that before the material event therein mentioned the deceased (or, as the case may be, the deceased and his wife) had already formed the intention of adopting the child, that the child was then wholly or mainly dependent on the deceased, and that the child should be treated as a relevant child.

4

A child shall not be treated as a relevant child for the purposes of article 14 as being—

• (a) the illegitimate child of the deceased, or

• (b) a child of a wife of the deceased,

unless the child was wholly or mainly dependent on the deceased at the time of his death.

5

A female child shall not be treated as a relevant child for the purpose of article 14 if, at the date of the death of the deceased, she is married to or cohabiting with another person; and a female child who thereafter marries or cohabits with another person shall thereupon cease to be a relevant child unless and until the Managers direct that they are satisfied that the marriage or cohabitation has been terminated and that for exceptional reasons it is proper that she should be so treated.

6

Where the deceased was a woman, no child of any marriage of hers shall be a relevant child for the purposes of article 14 if the father of the child was living at the death of the deceased, unless—

• (a) the Managers direct that they are satisfied that for exceptional reasons the child should be so treated;

• or

• (b) the actual reckonable service of the deceased includes service on or after 17th May 1990,

and, if (b) applies, the pension payable to the child shall be that proportion of the pension calculated in accordance with article 14(2) which is attributable to that part of the aggregate period of reckonable service of the deceased which accrued on or after 17th May 1990.

SCHEDULE 6 — FIVE YEAR GUARANTEE

Guarantees for widows and widowers

1

• (1) Where a pensioner dies during the pensioner’s five year period and is survived by a widow or widower, sub-paragraphs (2) to (6) of this paragraph shall apply.

• (2) If for any part of the pensioner’s five year period, the aggregate of the following amounts namely—

• (a) the amount payable to the widow or widower by way of pension under article 12 apart from this sub-paragraph (including any enhancement payable under article 15); and

• (b) any amount which (by direction of the Managers under article 14(4)) is payable by way of pension under article 14 for the benefit of any relevent child or children of the deceased pensioner,

is less than the amount mentioned in sub-paragraph (3) of this article, then for that part of that period the difference shall be payable to the widow or widower.

• (3) The said amount is the amount which, if the deceased pensioner had lived, would have been payable to him for the part of the deceased pensioner’s five year period in question by way of pension under article 7 (including an early retirement pension or an ill-health pension payable by virtue of article 9, 10 or 11).

• (4) If the widow or widower of the deceased pensioner dies during the deceased pensioner’s five year period, there shall be paid to the personal representative of the widow or widower a lump sum which shall be calculated by deducting the amount mentioned in paragraph (a) below from the amount mentioned in paragraph (b) below—

• (a) the total of any pensions which (by direction of the Managers under article 14(4)) would have been payable under article 14 for the benefit of any relevant child or children of the deceased pensioner if the annual sum payable under article 14(2) (after the death of the widow or widower of the deceased pensioner) in respect of each relevant child had continued during the period ending on the pensioner’s children’s prospective pension end date for that child;

• (b) the amount which would have been payable to the deceased pensioner if the annual amount of the pension to which he was entitled under article 7 (including an early retirement pension or an ill-health pension payable by virtue of article 9, 10 or 11) were to have been paid to him during the remainder of the pensioner’s five year period.

• (5) In this Schedule, “the pensioner’s five year period” means the period of five years beginning with the day on which he became entitled to receive a pension under article7 (including an early retirement pension or an ill-health pension payable by virtue of article 9, 10 or 11).

• (6) In this Schedule, “the pensioner’s children’s prospective pension end date” means, in respect of any relevant child of a deceased pensioner the sooner of—

• (a)

• (i) the date before that on which that child reaches seventeen years of age; or

• (ii) if the child is within his period of full time education as defined by Schedule 5, such later date as the Managers may determine being no later than the date before that on which the child reaches twenty-two years of age;

• and

• (b) the end of the pensioner’s five year period.

Guarantees where children but no spouse survive

2

• (1) Where a pensioner dies during the pensioner’s five year period and is survived by a relevant child or children, but no spouse, sub-paragraph (2) of this paragraph shall apply.

• (2) There shall be paid to the personal representative of the deceased pensioner a lump sum which shall be calculated by deducting the amount mentioned in paragraph (a) below from the amount mentioned in paragraph (b) below—

• (a) the total of any pensions payable under article 14 (by direction of the Managers under article 14(4)) for the benefit of any relevant child or children of the deceased pensioner, if the annual sum payable under article 14(2) (after the death of the pensioner) in respect of each relevant child were to continue during the period ending on the pensioner’s children’s prospective pension end date for that child;

• (b) the amount which would have been payable to the deceased pensioner if the annual amount of the pension to which he was entitled under article 7 (including an early retirement pension or an ill-health pension payable by virtue of article 9, 10 or 11) were to have been paid to him during the remainder of the pensioner’s five year period after his death.

Guarantees where no survivors

3

• (1) Where a pensioner dies within the pensioner’s five year period and is not survived by a spouse nor by any relevant child or children, sub-paragraph (2) of this article shall apply.

• (2) There shall be paid to the personal representative of the deceased pensioner a lump sum calculated as if the annual amount of the pension to which he was entitled under article 7 (including an early retirement pension or an ill-health pension payable by virtue of article 9, 10 or 11) were to be paid to him during the remainder of the pensioner’s five year period after his death.

• (3) This article shall not apply if a gratuity is paid under article 17.

Remarriage or cohabitation of surviving spouse

4

• (1) If during a deceased pensioner’s five year period—

• (a) the widow or widower of that deceased pensioner remarries or cohabits with another person; and

• (b) the Managers direct that the widow’s or widower’s pension be paid or restored under article 12(4) or (5);

the Managers may direct that payments under paragraph 1(2) shall continue until the end of the pensioner’s five year period or until such either date as the Managers may in their discretion think fit.

• (2) If, during a deceased pensioner’s five year period—

• (a) the widow or widower of that deceased pensioner remarries or cohabits with another person; and

• (b) the Managers direct that only the guaranteed minimum pension to which the widow or widower is entitled be paid;

the Managers may direct that a lump sum be paid to the personal representative of the deceased pensioner calculated as follows—

• (i) if the Managers direct under article 14(3) that the pension payable to any relevant child or children of the deceased pensioner shall for exceptional reasons be payable, by deducting the total of the guaranteed minimum pension payable to the widow or widower during the remainder of the pensioner’s five year period from the amount calculated in accordance with paragraph 2(2); or

• (ii) otherwise, by deducting the total of the guaranteed minimum pension payable to the widow or widower during the remainder of the pensioner’s five year period from the amount calculated in accordance with paragraph 3(2);

or, in either case, any such lesser sum as the Managers may in their discretion think fit.

Early termination of child’s period of full time education

5

—If

• (a) a sum has been paid to the personal representative of the widow or widower of a deceased pensioner under paragraph 1(4) or to the personal representative of a deceased pensioner under paragraph 2(2); and

• (b) the period of full time education of any relevant child of the deceased pensioner has come to an end on a date earlier than the pensioner’s children’s prospective pension end date for that child used in the calculation of that sum;

the Managers may pay a further sum to the said personal representative calculated by deducting the amount mentioned in paragraph (ii) below from the amount mentioned in paragragh (i) below—

• (i) the total of any pensions which would have been payable for the benefit of that child if the payments had continued until his pensioner’s children’s prospective pension end date;

• (ii) the total of the pensions which have been paid for his benefit.

SCHEDULE 7 — PURCHASE OF ADDED YEARS

Interpretation

1

For the purpose of this Schedule:—

• “periodical contributions” means the sums payable by a participant whose application to purchase added years otherwise than by a single payment has been accepted by the Managers;

• “single mandate Representative” means a participant to whom section 1(2)(b) of the 1979 Act does not apply.

Purchase of added years by periodical contributions

2

• (1) A participant may apply in writing to the Managers to purchase added years by periodical contributions payable until he attains the age of sixty-five years and the Managers shall accept his application if all the following conditions in respect of that application are satisfied:—

• (a) the participant will not at his next birthday after the date of the application have attained the age of sixty-five;

• (b) the participant has satisfied the Managers, in whatever manner the Managers shall require, that he is in good health;

• (c) the number of added years which the participant has applied to purchase does not exceed the maximum permitted by paragraph 8;

• (d) the participant has supplied to the Managers such information and evidence as they may require and has indicated whether his application is made under the provisions of this sub-paragraph or sub-paragraph (2) below; and

• (e) the participant is, at the date when the Managers receive the application, a single mandate Representative.

• (2) A participant may, within the period of twelve months immediately following the date when he commenced a period of service as a single mandate Representative, or within such longer period as the managers may in special circumstances and at their discretion allow, apply in writing to the Managers to purchase added years by the payment of periodical contributions for a period of either four or five years and the Managers shall accept his application if, at the date when the Managers receive the application, the participant has not reached the age of sixty-five years and if the conditions of sub-paragraph (1)(b), (c), (d), and (e) above are satisfied in respect of that application.

Applications to be irrevocable

3

An application by a participant to purchase added years shall be irrevocable on and from the date when the Managers accept his application.

Payment of periodical contributions

4

Where an application by a participant to purchase added years by periodical contributions is accepted by the Managers:—

• (a) contributions shall, subject to the provisions of paragraph 5, be payable to the Treasury:—

• (i) in the case of an application under paragraph 2(1), from the date of the participant’s birthday next following the receipt by the Managers of his application and until the participant attains the age of sixty-five years; and

• (ii) in the case of an application under paragraph 2(2), for whichever of the periods of four or five years the participant has chosen for the payment of periodical contributions, beginning on such date not later than two months from the date of acceptance of the application as the Managers shall specify by notice in writing to the participant;

• (b) contributions by a participant shall be payable by deductions from his salary or, in the case of arrears, in such manner as the Treasury shall require; and

• (c) the contributions payable by a participant for the added years shall be calculated in accordance with tables prepared from time to time by the Government Actuary.

Interrupted service

5

• (1) If a participant dies or ceases to be a Representative because of ill-health in circumstances to which paragraphs (1), (2), (3) or (6) of article 11 apply and he:—

• (a) has applied to purchase added years by periodical contributions; and

• (b) has been notified in writing by the Managers that his application has been accepted,

no further contributions will be payable from the day following the date of his death or from the date he ceases to be a Representative, as the case may be, and any added years that he has applied to purchase by periodical contributions shall be credited in full as reckonable service.

• (2) If a participant who has applied to purchase added years by periodical contributions and whose application has been accepted by the Managers ceases to be a Representative in circumstances to which paragraphs (1), (2), (3) or (6) of article 11 do not apply, or if a participant ceases to be a single mandate Representative, no contributions will be payable by him from the day following the date when he so ceases, but his reckonable service as a single mandate Representative will be increased in respect of each applicantion by

$$A×BC$ where: A is the number of added years he applied to purchase by periodical contributions; B is the period (expressed to the nearest day) during which periodical contributions have been paid; C is the total period during which periodical contributions would have been payable in accordance with paragraph 4(a).$

• (3) If a former participant or participant to whom sub-paragraph (2) of this paragraph has applied subsequently commences a further period of service as a single mandate Representative before he has attained the age of sixty-five years, in circumstances in which the periods together constitute an aggregate period of reckonable service as a single mandate Representative, then subject to sub-paragraphs (4) and (6) of this paragraph, he may give notice to the Managers in writing within the period of three months beginning with the date upon which he commenced the further period of service that he intends to resume payment of his periodical contributions in respect of the added years for which he was making periodical contributions in his immediately preceding period of service and such contributions shall then be payable from the date when he commenced the further period of service, and shall continue until he attains the age of sixty-five years at the rate or rates applicable during the immediately preceding period.

• (4) Where a former participant or participant who ceased for a period to pay periodical contributions by reason only of his ceasing to serve as a Representative or as a single mandate Representative, but subsequently became a single mandate Representative again and resumed the purchase of added years by periodical contributions in accordance with sub-paragraph (3) below thereafter becomes entitled to a pension under article 7, his reckonable service as a single mandate Representative shall be increased in accordance with sub-paragraph (2) above except that C shall be read as the total period during which he would have paid contributions for those added years if his service as a single mandate Representative had been continuous.

• (5) If a former participant or participant to whom sub-paragraph (2) above has applied, subsequently commences a further period of service as a single mandate Representative before he has attained the age of sixty-five years, in circumstances in which the periods together constitute an aggregate period of reckonable service, then subject to sub-paragraphs (4) and (6) below, he may, if, in consequence of his break in service as a single mandate Representative there has been a reduction in the number of added years which he is able to purchase in full, with the agreement of the Managers, and subject to the provisions of paragraph 8(1), apply to purchase some or all of the number of added years comprised in that reduction at the rate applicable to the participant’s birthday next following the receipt by the Managers of his application.

• (6) Sub-paragraphs (3), (4) and (5) of this paragraph shall not apply where the application to purchase added years before the participant ceased to be a Representative or a single mandate Representative was made under paragraph 2(2).

Purchase of added years by lump sum

6

• (1) Subject to the provisions of sub-paragraph (2), below, a participant may apply in writing to the Managers to purchase added years by a lump sum payment.

• (2) The Managers shall accept an application to purchase added years under this paragraph if all the following conditions in respect of that application are satisfied:—

• (a) the participant has not reached the age of sixty-five years;

• (b) the participant applies to the Managers within the period of twelve months immediately following the date when he commenced a period of service as a single mandate Representative or within such longer period as the Managers may in special circumstances and at their discretion allow;

• (c) the participant has not applied to the Managers under the provisions of article 11 for an early pension because of ill-health;

• (d) the number of added years which the participant applies to purchase does not exceed the maximum permitted by paragraph 8;

• (e) the participant has supplied to the Managers such information and evidence as they may require; and

• (f) the participant is, at the date when the Managers receive the application, a single mandate Representative.

• (3) A participant who has applied to purchase added years under the provisions of paragraph 2(2) and to whom paragraph 5(2) applies may, in respect of any such application, if:—

• (a) in consequence of his ceasing to be a Representative or a single mandate Representative there has been a reduction in the number of added years which he is able to purchase in full,

• (b) the conditions of sub-paragraphs 2(c), (d) and (e) above are satisfied in respect of the application made under paragraph 2(2), and

• (c) the application under this sub-paragraph is made within three months of his ceasing to be a Representative or a single mandate Representative,

apply in writing to the Managers to purchase by a lump sum payment some or all of the number of added years comprised in that reduction at the rate applicable at the Representative’s birthday next following the receipt by the Managers of the application.

Lump sum payments

7

• (1) Any participant who has applied to the Managers to purchase added years by a lump sum payment shall, within the period of six months commencing on the date when his application is accepted by the Managers make the lump sum payment to the Treasury which shall be calculated by the Managers by reference to a Member’s pensionable salary at the time when his application was received by the Managers and in accordance with tables to be prepared from time to time by the Government Actuary and the amount of his reckonable service as a single mandate Representative shall be increased accordingly with effect from the date that the lump sum payment is received by the Treasury.

• (2) If, after an application to purchase added years by lump sum payment has been made by a participant and accepted by the Managers, the payment is not received by the Treasury within the period of six months commencing on the date when his application is accepted by the Managers, the application to purchase shall cease to be valid.

Limits on purchase of added years

8

• (1) Subject to sub-paragraphs (2) to (4) below the annual amount of a participant’s periodical contributions when aggregated with the annual amount of the participant’s contributions under article 5, and any other additional voluntary contributions shall not in any tax year exceed 15 per cent of the annual amount of a Member’s pensionable salary for the time being or, if he joined the scheme on or after 1st June 1989 and that salary exceeds the permitted maximum, 15 per cent of the permitted maximum.

• (2) Sub-paragraph (1) shall not apply to the purchase of added years by periodical contributions payable for a period of four years in accordance with paragraph 2(2) and 4(a)(ii) and for the purpose of the calculation referred to in sub-paragraph (1) above such contributions shall be disregarded.

• (3) Subject to sub-paragraph (4) below, sub-paragraph (1) above shall not apply to a Representative’s periodical contributions which on 31st July 1984 were payable in accordance with paragraph 4(a)(i).

• (4) If after 31st July 1984 a participant has applied or applies to the Managers to purchase added years by periodical contributions, the annual amount of periodical contributions payable by him in accordance with paragraph 4(a)(i), or for period of five years in accordance with paragraphs 2(2) and 4(a)(ii), shall not be such as to exceed, at any time during the period such contributions would be so payable, the amount (if any) by which for the time being:

• (a) the annual amount of his periodical contributions referred to in paragraph (3) (if any) aggregated with the annual amount of his contributions under article 5,

is less than—

• (b) the limit under sub-paragraph (1) above.

• (5) Subject to sub-paragraph (1) above, the maximum added years that a participant may purchase both by lump sum payment and by periodical contributions shall be calculated so that his pension under article 7 when aggregated with the pension equivalent of any lump sum under article 8 and any pension under any additional voluntary contributions scheme shall not exceed whichever may be appropriate of the limits set out in Schedule 2.

Further applications to purchase added years

9

Subject to the provisions of this Order, the Managers may accept more than one application from a participant to purchase added years by the payment of periodical contributions or lump sum payments.

SCHEDULE 8 — REVOCATIONS, MODIFICATIONS, SAVINGS AND TRANSITIONAL PROVISIONS

PART I — REVOCATIONS

(1)	(2)	(3)
Orders revoked	References	Extent of revocation
The European Parliament (United Kingdom Representatives) Pensions Order 1980	SI 1980/1450	The whole instrument
The European Parliament (United Kingdom Representatives) Pensions (Amendment) Order 1982	SI 1982/133	The whole instrument
The European Parliament (United Kingdom Representatives) Pensions (Amendment) Order 1985	SI 1985/1116	The whole instrument
The European Parliament (United Kingdom Representatives) Pensions (Amendment) Order 1992	SI 1992/1197	The whole instrument

PART II — Modifications to the European Parliament (United Kingdom Representatives) Pensions Order 1980

Interpretation

1

In this Part, “the 1980 Order” means the European Parliament (United Kingdom Representatives) Pensions Order 1980[^f00015].

Contributions

2

In article 4 of the 1980 Order, after paragraph (2), with effect from 2nd April 1991, there shall be inserted,

(3) Where on or after 2nd April 1991 a person’s aggregate period of reckonable service exceeds that which would give rise to the maximum pension allowed in respect of that person under article 6(1A) below, no deduction shall be made from his salary under this article.

Early abated pensions

3

Paragraphs 4, 5 and 6 below shall have effect from 2nd April 1991 in respect of persons who have actual reckonable service on or after that date.

4

After Article 8A of the 1980 Order there shall be inserted the following article:

(8B) (1) Where on or after 2nd April 1991 a person who— (a) is a Representative and ceases to be a Representative; (b) has attained the age of fifty years; and (c) has actual reckonable service of not less than fifteen years (hereinafter referred to in respect of a person as his “qualifying period”), applies in writing to the Managers for an immediate pension under this article, then, if the Managers are satisfied that he does not intend to stand for re-election to the European Parliament, he shall be entitled to receive a pension under this article as if he had attained the age of sixty-five years on the date of his application or, if later, such other date as may be there specified; but the annual amount of the pension to which he is entitled both before and after he attains the age of sixty-five years, shall (subject to article 7) be an amount calculated in accordance with Schedule 7. (2) For the purposes of paragraph (1)(c) above, service of a person as a Member of the House of Commons, whether rendered before, on or after 2nd April 1991, may count towards his qualifying period to the extent that it is not concurrent with service as a Representative.

5

For Schedule 7 to the 1980 Order there shall be substituted Schedule 4 to this Order, with the following modifications—

• (a) for the references to article 10, there shall be substituted references to article 8B; and

• (b) for the reference to article 7(9), there shall be substituted a reference to article 6(6).

6

In article 10(8)(b) of the 1980 Order there shall be substituted for the words “article 7(2), 8(3) or 8A(2)” the words “article 7(2), 8(3), 8A(2) or 8B”.

Ill-health pensions

7

In the 1980 Order, with effect from 1st April 1992, in respect of persons with actual reckonable service on or after that date—

• (a) in article 9(4)[^f00016], for the words “subject to paragraphs (5) and (6)” to the end, there shall be substituted—

• be increased by a period equal to the period between his ceasing as mentioned in paragraph (1) above and the time when he would attain the age of sixty-five years.

; and

• (b) article 9(6) shall be deleted.

Widows', widowers' and children’s pensions

8

• (1) The modifications in paragraphs (2) and (3) below shall apply, with effect from 2nd April 1991, in relation to a pension payable in respect of a deceased Representative who died on or after 6th April 1988.

• (2) In article 10(2) of the 1980 Order (amount of widows' pensions) there shall be substituted for the words “one-half” the words “five-eighths”.

• (3) In article 12(2) of the 1980 Order (amount of children’s pensions) there shall be substituted for the words from “a sum equal to one quarter” to the end of the sentence the words—

(a) a sum equal to one-quarter of the basic or prospective pension of the deceased if there is one child or, if there is more than one, a sum equal to three-sixteenths of the basic or prospective pension of the deceased for each relevant child not exceeding two; or (b) if the widow or widower is dead and subject to sub-paragraph (3) below, a sum equal to five-sixteenths of the basic or prospective pension of the deceased for each relevant child not exceeding two.

Death gratuity

9

In article 15(5)(a) of the 1980 Order, with effect from 6th April 1988 in respect of persons with reckonable service on or after that date, there shall be substituted for the words “the amount of his pensionable salary” the words “the amount equal to twice his pensionable salary”.

Five year guarantee

10

Articles 17(2) and 18 of and Schedule 6 to this Order shall apply in respect of a deceased Representative—

• (a) whose actual reckonable service includes service at any time on or after 1st April 1992 but not after this Order comes into force; and

• (b) who was entitled to receive a pension under the scheme at the time of his death,

as if the 1980 Order had been amended by the inclusion of the said provisions with effect from 1st April 1992.

PART III — Savings

1

The revocation by this Order of a transitional provision relating to the coming into force of a provision re-enacted in this Order does not affect the operation of that transitional provision, so far as it remains capable of having effect, in relation to the provision as re-enacted.

2

• (1) The revocation by this Order of a provision previously repealed or revoked subject to savings does not affect the previous operation of those savings.

• (2) The revocation by this Order of a saving made on the previous repeal or revocation of a provision does not affect the operation of the saving in so far as it remains capable of having effect.

PART IV — Transitional Provisions

1

• (1) The re-enactment of provisions in this Order, and the consequent revocation of those provisions by this Order, does not affect the continuity of the law.

• (2) The general rule is that the provisions of this Order apply, in accordance with sub-paragraph (1), to matters arising before the commencement of this Order as to matters arising after that commencement.

• (3) The general rule has effect subject to any express provision to the contrary.

• (4) The general rule does not mean that the provisions of this Order apply to cases to which the corresponding revoked provisions did not apply by virtue of transitional provisions made in connection with the commencement of the revoked provisions (such transitional provisions are saved by paragraph 1 of Part III).

2

Where a period of time specified in a provision of any Order revoked and re-enacted by this Order is current at the commencement of this Order, this Order has effect as if the corresponding provision of this Order had been in force when that period began to run.

Signed

Michael Howard — One of Her Majesty’s Principal Secretaries of State — 21st June 1994

Explanatory note

(This note is not part of the Order)

This Order consolidates, with amendments, and revokes the European Parliament (United Kingdom Representatives) Pensions Order 1980 and the Orders amending that Order.

Some changes constitute no more than the omission of spent provisions. For example, because of the change in the accrual rate in 1984, consequential provisions were introduced to enable Representatives to apply to cancel added years of service purchased, but only by application within twelve months of 31st August 1985.

There are also a number of changes of substance.

Article 4 provides for Representatives to choose to opt out of the scheme, as required by social security legislation. A Representative who exercises the right also has a right to opt back in, exercisable within three months after the date of a General Election of Representatives or a by-election at which he was elected to the Parliament. Article 20 contains a consequential provision enabling accrued pension benefits to be transferred to a personal pension scheme on opt-out.

Article 5 contains a new provision stopping deductions from a Representative’s salary if he has sufficient reckonable service to earn a maximum pension.

Article 10 introduces new early retirement provisions, under which a full accrued pension is payable from the age of 60 and an abated pension from the age of 50 to a Representative who has the requisite amount of service. Provision is also made for service as a Member of the House of Commons, including service before this Order, to count towards the qualifying period of service. The previous arrangements for early retirement at a dissolution have been revoked, except in so far as they provide for early abated pensions without a qualifying period of service.

Article 11 incorporates improved enhancement rules in relation to ill-health pensions, by providing for an increase in the aggregate period of reckonable service equal to the full period of potential pensionable service to the age of 65.

Articles 12, 14, 16 and 17 alter the amount of widows' and widowers' benefits, children’s benefits and death gratuity.

Article 18 introduces a guarantee which continues payment in full to a Representative’s survivors of a pension which has come into payment before that Representative’s death until the expiry of the period of five years after it first came into payment. If at any relevant time there are no survivors qualifying for a pension, a lump sum is paid in lieu.

Amendments are also made to apply the earnings cap imposed by section 590C of the Income and Corporation Taxes Act 1988, to Representatives who joined the scheme after 1st June 1989 and to bring the Order into line with current social security legislation.

Section 4(3)(g) of the European Parliament (Pay and Pensions Act) 1979 confers express power to make Orders retrospective in effect. Part II of Schedule 8 extends many of the changes introduced by this Order to former Representatives who, at the date this Order comes into force, are pensioners or deferred pensioners. This is achieved by way of retrospective amendments to the European Parliament (United Kingdom Representatives) Pensions Order 1980. Provision is made for opting-out where rights in relation to former Representatives could be adversely affected (article 31).

Footnotes

[^f00001]: 1979 c. 50. (Section 3 of the European Communities (Amendment) Act 1986 (c. 58) substituted references to the European Parliament for references to the Assembly of the European Communities in Acts and other instruments.)

[^f00002]: 1988 c. 1.

[^f00003]: 1993 c. 48.

[^f00004]: Section 590C was inserted into the Taxes Act 1988 by the Finance Act 1989 (c. 26), Schedule 6, paragraphs 4 and 18(2).

[^f00005]: S.I. 1993/3253.

[^f00006]: Circumstances have been prescribed by regulations 33B, 33C and 33D of the Occupational Pension Schemes (Contracting-Out) Regulations 1984 (S.I. 1984/380 as amended by S.I. 1987/1100).

[^f00007]: S.I. 1985/1931; regulation 2D was inserted by S.I. 1988/1016.

[^f00008]: S.I. 1987/1112; regulation 2A was inserted by S.I. 1988/1016.

[^f00009]: 1965 c. 32; relevant amendments were made to section 6 by the Parliamentary and other Pensions Act 1972 (c. 48), section 24(4) and by the Parliamentary and other Pensions Act 1987 (c. 45), section 6(2) and Schedule 4.

[^f00010]: S.I. 1980/1450.

[^f00011]: 1978 c. 30.

[^f00012]: Paragraph 29 of Schedule 6 to the Finance Act 1989 (c. 26) provides for a Class B participant to elect to become a Class A participant.

[^f00013]: Section 611A was inserted by the Finance Act 1989 (c. 26), Schedule 6, paragraphs 15 and 18(1).

[^f00014]: Section 596(2) was amended by the Finance Act 1989 (c. 26), Schedule 6, paragraphs 8(1), 2(b) and 18(1).

[^f00015]: S.I. 1980/1450.

[^f00016]: Article 9(4) was amended by article 8 of S.I. 1985/1116.