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The Public Service (Civil Servants and Others) Pensions Regulations 2014

Type Statutory-Instrument

Publication 2014-07-23

Last updated 2025-11-17

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(b) for a full retirement added (all beneficiaries) pension, a deferred added (all beneficiaries) pension.

Annual rate of full retirement pension (active members)

61

(1) This regulation applies when an active member of this scheme becomes entitled to the immediate payment of a full retirement pension.

(2) The annual rate of any description of a full retirement pension payable to the member is calculated by—

(a) taking the amount of that description of full retirement pension specified in the full retirement account;

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

(d) subtracting the total allocation amount (if any) specified in that account in relation to that amount.

(3) The annual rate of any description of full retirement pension is calculated without subtracting the early payment reduction if the member buys out the early payment reduction in relation to that description of full retirement pension.

Annual rate of full retirement pension (deferred members)

62

(1) This regulation applies when a deferred member of this scheme becomes entitled to the immediate payment of a full retirement pension.

(2) The annual rate of any description of full retirement pension payable to the member is calculated by—

(a) taking the provisional amount of the relevant description of deferred pension specified in the deferred member’s account;

(b) adding the late payment supplement (if any) specified in that account in relation to that provisional amount;

(d) subtracting the commutation amount (if any) specified in that account in relation to that amount; and

(e) subtracting the total allocation amount (if any) specified in that account in relation to that amount.

(3) The annual rate of any description of full retirement pension is calculated without subtracting the early payment reduction if the member buys out the early payment reduction in relation to that description of full retirement pension.

(4) In this regulation, “the relevant description of deferred pension” means—

(a) for a full retirement standard earned pension, deferred standard earned pension;

(b) for a full retirement earned pension attributable to an effective pension age option or an enhanced effective pension age option, deferred earned pension attributable to that option;

(d) for a full retirement added (self only) pension, deferred added (self only) pension; and

(e) for a full retirement added (all beneficiaries) pension, deferred added (all beneficiaries) pension.

Full retirement pension ceases to be payable

63

(1) A full retirement pension ceases to be payable to a member who re-enters pensionable service under this scheme within 28 days after the last day of the service in relation to which the pension was payable.

(2) If paragraph (1) applies in relation to a member—

(a) the scheme manager must—

(i) cease to pay the pension; and

(ii) recover any payment of pension or lump sum made;

(b) the full retirement account must be closed; and

(c) the active member’s account must be re-established under Part 5 (pension accounts) and treated as if it had never been closed.

CHAPTER 3 — Partial retirement benefits

Exercise of partial retirement option

64

(1) This regulation applies if—

(a) a person (P) is an active member of this scheme in relation to a continuous period of pensionable service;

(b) P has reached normal minimum pension age;

(c) the terms on which P is employed have changed and as a result of that change the annual rate of P’s permanent pensionable earnings is reduced to 80% of their amount before the change or less; and

(d) P would be entitled to the immediate payment of a full retirement pension in relation to that period of service if P left pensionable service and claimed payment of the pension.

(2) P may opt to continue in pensionable service but claim payment of the whole or part only of P’s accrued pensions for the continuous period of pensionable service before P’s pensionable earnings were reduced (“partial retirement option”).

(3) P may not exercise a partial retirement option more than once in relation to a description of accrued pension.

Partial retirement option notice

65

(1) A partial retirement option may only be exercised—

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

(b) in the 3 months after P’s pensionable earnings are reduced, on a date agreed by the member and the scheme manager.

(2) An option notice must specify—

(a) whether P claims payment of—

(i) the whole of P’s accrued pensions; or

(ii) part only of P’s accrued pensions; and

(b) if P claims payment of part only–

(i) the descriptions of accrued pension for which payment is claimed; and

(ii) the proportion of each description of accrued pension for which payment is claimed (“option proportion”), which must comply with regulation 66.

Option proportion

66

(1) A partial retirement option which relates to a description of accrued added pension must relate to all of the descriptions of P’s accrued added pension.

(2) If P claims payment of accrued standard earned pension P must also claim payment of any of P’s accrued added pension.

(3) If P claims payment of P’s accrued added pension P must also claim payment of any accrued standard earned pension.

(4) If P claims payment of part only of P’s accrued pensions, the following are the option proportions of each description of accrued pension which can be claimed—

(a) 100% of each of the descriptions of P’s accrued pensions for which payment is claimed;

(b) an option proportion lower than 100% for one description of accrued pension claimed and 100% for each of the other descriptions of P’s accrued pension claimed.

(5) For the purposes of paragraph (4)(b), any accrued standard earned pension and accrued added pension claimed is treated together as if it were one description of accrued pension.

Entitlement to partial retirement pension or full retirement pension

67

An active member of this scheme (P) who exercises the partial retirement option is entitled to the immediate payment for life of—

(a) if P claims payment of part only of P’s accrued pensions, a partial retirement pension calculated in accordance with regulation 55; or

(b) if P claims payment of the whole of P’s accrued pensions, a full retirement pension calculated in accordance with regulation 52.

Annual rate of partial retirement pension

68

(1) This regulation applies if an active member of this scheme (P) exercises the partial retirement option in respect of part only of P’s accrued pensions.

(2) The annual rate of each description of partial retirement pension is calculated under regulation 61 by reference to the amount of each description of full retirement pension specified in the full retirement account.

(3) Regulation 61 applies as if—

(a) the reference to a full retirement pension were a reference to a partial retirement pension; and

(b) the reference to the full retirement account were a reference to the partial retirement account.

Annual rate of full retirement pension

69

(1) This regulation applies if an active member of this scheme (P) exercises the partial retirement option in respect of the whole of P’s accrued pensions.

(2) The annual rate of each description of full retirement pension is calculated under regulation61 by reference to the amount of that description of full retirement pension specified in the full retirement account.

(3) Regulation 61 applies as if the last day of pensionable service were the day before the day on which the member exercised the partial retirement option.

CHAPTER 4 — Ill-health benefits

Meaning of “permanent breakdown in health”

70

For the purpose of these Regulations, a member’s breakdown in health is “permanent” if the scheme medical adviser is of the opinion that the breakdown will continue until the member reaches prospective normal pension age.

Meaning of “incapacity for employment” and “total incapacity for employment”

71

For the purpose of these Regulations—

(a) a member’s breakdown in health involves “incapacity for employment” if the scheme medical adviser is of the opinion that, as a result of the breakdown, the member is incapable of doing the member’s own or a comparable job; and

(b) a member’s breakdown in health involves “total incapacity for employment” if the scheme medical adviser is of the opinion that, as a result of the breakdown—

(i) the member is incapable of doing the member’s own or a comparable job; and

(ii) the member is incapable of gainful employment.

Meaning of “lower tier payment threshold”

72

An active member of this scheme meets the lower tier threshold for payment of an ill-health pension (“lower tier payment threshold”) if—

(a) the member’s breakdown in health involves incapacity for employment; or

(b) the member is partially retired, the member’s breakdown in health involves total incapacity for employment.

Meaning of “upper tier payment threshold”

73

An active member of this scheme meets the upper tier threshold for payment of an ill-health pension (“upper tier payment threshold”) if—

(a) the member is not partially retired; and

(b) the member’s breakdown in health involves total incapacity for employment.

Entitlement to ill-health pension

74

(1) An active member of this scheme who has not reached normal pension age under this scheme is entitled to the immediate payment of an ill-health pension under this scheme, in accordance with the provisions of this Chapter, if the conditions in paragraph (2) are met.

(2) The conditions are—

(a) the member or the member’s employer has claimed payment of an ill-health pension;

(b) the scheme medical adviser—

(i) is of the opinion that the member has suffered a permanent breakdown in health involving incapacity for employment or total incapacity for employment; and

(ii) gives the scheme manager and the employer a certificate stating that opinion (“ill-health retirement certificate”);

(d) the employer agrees that the member is entitled to retire on ill-health grounds.

(3) If the member meets the lower tier payment threshold, a lower tier earned pension is payable in respect of the member’s continuous period of pensionable service.

(4) If the member meets the upper tier payment threshold—

(a) a lower tier earned pension is payable in respect of the member’s continuous period of pensionable service; and

(b) an upper tier top up earned pension is payable in respect of the period that begins when the member becomes entitled to the immediate payment of an ill-health pension and ends when the member reaches prospective normal pension age.

(5) A full retirement added pension of any description is payable with a lower tier earned pension if the full retirement account specifies an amount of full retirement added pension of that description.

Provisional award of ill-health pension

75

(1) This regulation applies if the scheme medical adviser is unable to form an opinion on the following matters—

(a) whether a member (P) has suffered a permanent breakdown in health involving incapacity for employment or total incapacity for employment;

(b) whether P’s breakdown in health involves—

(i) incapacity for employment; or

(ii) total incapacity for employment.

(2) The scheme medical adviser may recommend that—

(a) for a period specified in the recommendation (being a period of not more than 5 years), P is taken to have suffered a permanent breakdown in health involving whichever of the following is specified in the recommendation—

(i) incapacity for employment; or

(ii) total incapacity for employment; and

(b) P’s case should be reviewed by the scheme medical adviser at the end of the period specified in the recommendation.

(3) If the scheme manager agrees to the recommendation—

(a) the scheme manager must determine if P meets the lower tier payment threshold or the upper tier payment threshold; and

(b) P is entitled to the immediate payment of—

(i) an ill-health pension in accordance with regulation 74; and

(ii) any full retirement added pension payable with it.

(4) At the end of the period specified in the recommendation—

(a) the scheme medical adviser must give the scheme manager an opinion on the matter to which the recommendation related; and

(b) regulation 74 applies to P accordingly, subject to paragraph (5).

(5) If as a result of the opinion P ceases to be entitled to payment of a lower tier earned pension, an upper tier top up earned pension or a full retirement added pension, that pension continues to be payable for a period of 3 months beginning with the date of the opinion.

Annual rate of ill-health pension

76

(1) The annual rate of ill-health pension is calculated as follows—

(a) the annual rate of lower tier earned pension is calculated in the same way as the annual rate of full retirement earned pension[^f00056] is calculated under regulation 61, but without subtracting the early payment reduction;

(b) the annual rate of upper tier top up earned pension is calculated in the same way as the annual rate of full retirement earned pension is calculated under regulation 61, but—

(i) the references to the member’s full retirement earned pension are taken to be references to the enhancement fraction of the earnings-related part of that pension; and

(ii) the early payment reduction is not subtracted.

(2) The annual rate of any full retirement added pension payable with a lower tier earned pension is calculated in the same way as it is calculated under regulation 61, but without subtracting the early payment reduction.

(3) In this regulation—

“the earnings-related part”, in relation to the member’s full retirement earned pension, means the proportion of that pension not attributable to an amount of transferred pension;

“the enhancement fraction” is—$AB$where—

A is the member’s assumed period of pensionable service (expressed in years); and

B is the shorter of—the member’s period of service (expressed in years); andthe number of scheme years in relation to which an amount of earned pension was specified in the active member’s account;

“the member’s assumed period of pensionable service” means the period (expressed in years)—beginning with the day after the member’s period of service ceased; andending with—for a member employed for a fixed term, the day with which that term ends; orfor a member otherwise employed, the day before the day on which the member will reach prospective normal pension age (assuming that the member lives until that age); and

“period of service” means a continuous period of pensionable service under this scheme.

Periodical review of entitlement to upper tier top up earned pension

77

(1) This regulation applies in relation to a member of this scheme (P) who meets the upper tier payment threshold.

(2) The scheme medical adviser—

(a) must periodically review whether, as a result of P’s breakdown in health, P remains incapable of gainful employment; and

(b) after carrying out a review, must give an opinion on that matter to the scheme manager.

(3) A review must be carried out—

(a) at any time the scheme manager directs; and

(b) in any event—

(i) before the fifth anniversary of the day on which P became entitled to the pension; and

(ii) subsequently at intervals not exceeding 5 years.

(4) A review is not required after the member reaches normal pension age under this scheme.

(5) P ceases to be entitled to an upper tier top up earned pension—

(a) at the end of the period of 3 months beginning with the date on which the scheme medical adviser, after carrying out a review, gives an opinion that P is no longer incapable of gainful employment; or

(b) if earlier, the day on which P returns to service in a scheme employment.

Deferment of accrued earned pension attributable to a transfer payment

78

(1) This regulation applies in relation to a member of this scheme—

(a) who is entitled to an ill-health pension; and

(b) whose active member’s account as at the end of the last day of pensionable service specifies an amount of accrued earned pension attributable in whole or in part to a transfer payment received by this scheme in relation to the member in the 24 months before that last day.

(2) If the scheme manager so directs, the member becomes a deferred member of this scheme in respect of that amount of accrued earned pension and accordingly—

(a) a deferred member’s account must be established under Part 5 (pension accounts);

(b) that amount of accrued earned pension must be specified in the deferred member’s account as the provisional amount of deferred earned pension; and

(c) that amount of accrued earned pension is not included in the calculation of the annual rate of full retirement earned pension.

Deferment of added pension attributable to recent payments

79

(1) This regulation applies in relation to a member of this scheme—

(a) who is entitled to payment of an ill-health pension; and

(b) whose active member’s account as at the end of the last day of pensionable service specifies an amount of accrued added pension that is attributable in whole or in part to a lump sum payment for added pension made under Schedule 1 within the 12 months before the relevant day.

(2) The member becomes a deferred member of this scheme in respect of that amount of accrued added pension and accordingly—

(a) a deferred member’s account must be established under Part 5 (pension accounts);

(b) that amount of accrued added pension must be specified in the deferred member’s account as the provisional amount of the relevant description of deferred added pension; and

(c) that amount of accrued added pension is not included in the calculation of the annual rate of full retirement added pension payable with the lower tier earned pension.

(3) In paragraph (1), “the relevant day” means—

(a) the day on which the member’s employer first asked the scheme medical adviser for the opinion mentioned in regulation 74(2)(b) by virtue of which the member is entitled to payment of the ill-health pension; or

(b) if the member was on sick leave on that day and did not return to service from that leave, the day on which that leave began.

CHAPTER 5 — Payment options

Options under this Chapter

80

The options under this Chapter are—

(a) the option under regulation 82 to buy out the early payment reduction;

(aa) the option under regulation 82A to partially buy out the early payment reduction;

(b) the option under regulation 83 to defer payment of a full retirement added pension;

(c) the option under regulation 84 (option to commute part of pension) to exchange part of a retirement pension for a lump sum;

(d) the option under regulation 85 to exchange the whole of the member’s accrued pensions for a lump sum.

Exercising an option under this Chapter

81

(1) A member may exercise an option under this Chapter by notice to the scheme manager in any form the scheme manager requires.

(2) In this Chapter, “option notice” means a notice by which a member exercises an option under this Chapter.

Option to buy out early payment reduction

82

(1) This regulation applies if—

(a) a member of this scheme becomes entitled under Chapter2 or 3 to the immediate payment of a full retirement pension or a partial retirement pension; and

(b) the member has not reached—

(i) normal pension age under this scheme; or

(ii) if applicable, the member’s effective pension age or enhanced effective pension age.

(2) The member may opt under this regulation to buy out the early payment reduction that would otherwise apply to the calculation of the annual rate of retirement pension.

(3) The cost must be met by way of a special payment to this scheme made by—

(a) the member;

(b) the member’s employer (“the employer”); or

(4) The employer may make a special payment using a lump sum payable to the member under a compensation scheme.

(5) Any special payment by the employer must be made—

(a) in accordance with the compensation scheme; or

(b) with the consent of the Minister.

(6) If the employer makes a special payment under paragraph (5)(a)—

(a) the lump sum payable to the member under the compensation scheme is reduced by the amount of the special payment; and

(b) if the amount of the special payment is more than the whole of the lump sum payable to the member under the compensation scheme, any difference is not chargeable to the member.

(7) The cost of buying out the early payment reduction is an amount determined by the scheme manager after consulting the scheme actuary.

Option to defer payment of added pension

83

(1) This regulation applies if a member of this scheme—

(a) becomes entitled to the immediate payment of a full retirement added pension of any description; and

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

(2) The member may opt under this regulation to defer payment of the full retirement added pension of that description.

(3) A member who exercises the option under this regulation becomes a deferred member of this scheme in respect of the full retirement added pension of that description and accordingly—

(a) a deferred member’s account must be established under Part 5 (pension accounts); and

(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 any form the scheme manager requires, 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 regulation62.

Option to commute part of pension

84

(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 FA 2004 (see section241 of that Act[^f00057]).

(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 14 (earner’s guaranteed minimum) of PSA1993[^f00058] in relation to the whole or part of a pension as a result of the receipt by this scheme of a transfer 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)

85

(1) This regulation applies in relation to an active member or deferred member of this scheme whom the scheme medical adviser certifies 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 (“this option”) 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$where—A means the total annual amount of full retirement pension;B means the total annual amount of partial retirement pension; andC means the total annual amount of ill-health pension.$

(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 PIA 1971 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 PIA 1971 calculated as at that date.

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

CHAPTER 6 — Allocation of part of pension

Allocation election

86

(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 14 (earner’s guaranteed minimum) of PSA1993 in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer 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

87

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

(a) the total amount of retirement pension allocated under this Chapter (“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 FA 2004[^f00059] 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 election (or the elections taken together) complying.

Making an allocation election

88

(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 86(3); and

(d) be accompanied by a certificate from the scheme medical adviser 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

89

(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 FA 2004.

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

90

(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 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 (the pension death benefit rules) of FA 2004[^f00060].

(2) In this regulation, “allocated pension” has the meaning given in regulation 89(1)(b).

PART 7 — Benefits for pension credit members

Entitlement to pension credit member’s pension

91

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 under this scheme;

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

Claim for early payment

92

(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 under regulation 94; 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 satisfied that on that date the requirements of regulation7(5) of the Pension Sharing (Pension Credit Benefit) Regulations 2000[^f00061] are met.

Annual rate of pension credit member’s pension

93

(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 buys out the early payment reduction[^f00062], the annual rate of pension is calculated without subtracting the early payment reduction.

Option to buy out early payment reduction

94

(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 tables setting out the cost of buying out the early payment reduction, after consulting the scheme actuary.

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

Reduction in pension debit member’s benefits

95

The benefits to which a pension debit member is entitled under this Part are subject to the reduction to be made under section 31 (reduction of benefit) of WRPA1999.

Pension credit member’s rights

96

(1) If regulation 7(5) of the Pension Sharing (Pension Credit Benefit) Regulations 2000 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

97

(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 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 FA2004 (see section241 of that 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 6 (retirement benefits) before the date on which the pension sharing order takes effect.

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

98

(1) This regulation applies in relation to a pension credit member whom the scheme medical adviser certifies has 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 apart from 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 PIA 1971 calculated as at that date.

Application of Part to pension adjustment orders

99

(1) Where a pension adjustment order is made in respect of benefits under this scheme, this Part applies with any modifications the scheme manager considers necessary to give effect to that order.

(2) In this regulation, a “pension adjustment order” means an order made under section 12 of the Irish Family Law Act 1995[^f00063].

PART 8 — Death benefits

CHAPTER 1 — Pensions for surviving adults

Surviving adults

100

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 ... 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 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 at the date of the member’s death.

Meaning of “surviving nominated partner”

101

(1) A person (P) is a surviving partner of a deceased member of this scheme if P satisfies the scheme manager that immediately before the member’s death—

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

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

Meaning of “surviving adult’s pension”

102

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 lower tier earned pension;

(d) a dependant’s added pension.

Meaning of “dependant’s earned pension”

103

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 lower tier earned pension”

104

A dependant’s lower tier earned pension is a pension payable on the death of a member of this scheme if the member was entitled to the immediate payment of a lower tier earned pension as at the date of the member’s death.

Meaning of “dependant’s upper tier top up earned pension”

105

A dependant’s upper tier top up earned 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 upper tier top up earned pension as at the date of the member’s death.

Meaning of “dependant’s added pension”

106

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

107

(1) This regulation applies where a member was, at the date of the member’s death,—

(a) an active member of this 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 was a transition member with continuity of service, the continuous period of pensionable service mentioned in paragraph (a) includes the member’s period of pensionable service under the PCSPS before the transition date for that member (but not service that has been transferred into the PCSPS).

(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 a lower tier earned pension was payable as at the date of the member’s death, a dependant’s lower tier earned pension;

(c) if an upper tier top up earned pension was payable as at the date of the member’s death, a dependant’s upper tier top up earned pension;

(d) 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 where—

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

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

(5) Paragraph (4) is subject to regulation 120 (guaranteed minimum pensions for surviving spouses and civil partners).

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

108

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

(b) the total 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 lower tier earned pension is an amount equal to 37.5% of the annual rate of P’s lower tier earned pension, calculated without subtracting the commutation amount (if any) and the total allocation amount (if any).

(4) The annual rate of a dependant’s upper tier top up earned pension is an amount equal to 37.5% of the amount of the notional annual rate of P’s upper tier top up earned pension, calculated without subtracting the commutation amount (if any) and the total allocation amount (if any).

(5) The annual rate of a dependant’s added pension is an amount equal to 37.5% of the total 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.

(6) In this regulation—

“the enhancement fraction” means $XY$where—

X is the lower of—the number of years in the member’s assumed period of pensionable service; and10;

Y is the lower of—the number of years for which the member has been an active member of this scheme; andif the member was entitled to payment of an ill-health pension, the number of scheme years in relation to which an amount of earned pension was specified in the active member’s account before the member became entitled to payment of that pension[^f00064];

“the member’s assumed period of pensionable service” means the period (expressed inyears)—beginning with the day after the member’s last day of pensionable service; andending with—for a member employed for a fixed term, the day with which that term would have ended; andfor a member otherwise employed, the day before the day on which the member would have reached prospective normal pension age if the member had lived until that age; and

“notional annual rate”, in relation to P’s upper tier top up earned pension, is the lesser of the following amounts—the amount of the annual rate of P’s upper tier top up earned pension; andthe amount of P’s full retirement earned pension or partial retirement earned pension.

(7) In working out the amount of full retirement earned pension or partial retirement earned pension for the purpose of the definition in paragraph (6) of “notional annual rate” —

(a) unless sub-paragraph (b) applies, the accrued earned pension is the lesser of—

(i) the amount of accrued earned pension not attributable to a transfer 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 is the lesser of—

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

(ii) the enhancement fraction of the amount mentioned in sub-paragraph (a)(i).

(8) In accordance with section 7(4) of PIA 1971, for the purposes of this regulation 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

109

(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)

110

(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 was 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 the PCSPS before the transition date for that member (but not service that has been transferred into the PCSPS).

(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 52(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 52(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 at the date of the member’s death was entitled under regulation67(a) to the immediate payment of a partial retirement pension)—

(a) unless sub-paragraph (b) applies, the accrued earned pension under this scheme includes an additional amount equal to the lesser of—

(i) the amount of accrued earned pension not attributable to a transfer 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 under this scheme 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 payment and accrued earned pension under PCSPS which is not attributable to a transfer payment; and

(ii) the enhancement fraction of the amount mentioned in sub-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 $XY$where—

X is the lower of—the member’s assumed period of pensionable service (expressed in years); and10;

Y is the lower of—the number of years for which the member has been an active member of this scheme; andnumber 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; andending with—for a member employed for a fixed term, the day on which that term would have ended; andfor a member otherwise employed, 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

111

(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 calculated under regulation 108, 109 or 110, 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”

112

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 lower tier earned pension;

(d) a child’s added pension.

Meaning of “eligible child”

113

(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 members’ 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 conditions A to C; or

(i) meets any of 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 in the opinion of the scheme medical adviser 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) An eligible child’s pension is not payable to a person during a gap period.

Eligible child’s pension

114

(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 lower tier earned pension is payable if a lower tier earned pension was payable to the member as at the date of the member’s death;

(c) a child’s upper tier top up earned pension is payable if an upper tier top up earned pension was payable to the member as at the date of the member’s death;

(d) 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

115

(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 111) 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 lower tier earned pension, a dependant’s lower tier earned pension;

(d) for a child’s added pension, a dependant’s added 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

116

(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 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.

Suspension and recovery of pensions paid under this Part

117

(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) cease paying the pension; and

(b) recover any payment made under the award.

(3) Paragraph (2) does not affect any right the scheme manager has to recover a payment or an overpayment.

Provisional awards of eligible child’s pensions: later adjustments

118

(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 the matters referred to in paragraph 1(c), as applicable.

(3) Paragraph (2) does not affect any right the scheme manager has to recover a payment or an overpayment.

Adjustment of benefits to comply with FA 2004 where members die over 75

119

(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 FA 2004.

(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 of FA 2004.

Guaranteed minimum pensions for surviving spouses and civil partners

120

(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 17[^f00065] of PSA1993 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.

(2) Paragraphs (3) and (4) are without prejudice to the generality of paragraph (1).

(3) This paragraph applies 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.

(4) If paragraph (3) applies—

(a) 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; or

(b) if paragraph (3)(b) applies, the pensions payable are increased to the amount specified in sub-paragraph (a).

(5) Paragraph (4) does not apply to a pension that is forfeited—

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

(b) under regulation 165, in a case where the relevant offence within the meaning of regulation 165 is an offence under the Official Secrets Acts 1911 to 1989[^f00066] or an applicable offence under the National Security Act 2023.

CHAPTER 4 — Payment of lump sum death benefits

Payment of lump sum death benefit

121

(1) A lump sum death benefit may be paid where—

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

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

(2) But a lump sum death benefit is not payable where—

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

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

(3) The lump sum death benefit must be paid 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nominations for lump sum death benefits

122

(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 signed notice to the scheme manager in a form the scheme manager requires or is willing to accept.

(5) A member may revoke or alter a nomination by a further signed notice to the scheme manager in a form the scheme manager requires or is willing to accept.

Invalid nominations of individuals

123

(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

124

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

(a) the person or persons nominated by the member under regulation 122 (“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.

Pension protection lump sum death benefit

125

(1) A lump sum death benefit is treated for the purposes of FA2004 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) the lump sum death benefit meets all of the conditions required by FA 2004 for it to be treated as a pension protection lump sum death benefit (see paragraph 14 of Part 2 (lump sum death benefit rule) of Schedule 29 to FA 2004[^f00067]).

(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 FA2004[^f00068] in respect of a pension protection lump sum death benefit.

Recovery of payments

126

(1) 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.

(2) Paragraph (1) does not affect any other right the scheme manager has to recover a payment or an overpayment.

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

127

(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 122 (“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 PIA 1971 during that period.

(5) In this regulation “the pension protection period” means the period beginning with the day of the member’s death and ending with the day before 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”

128

(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 permanent 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 in the 10 scheme years immediately before the last active scheme year (“the earnings 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 PIA 1971 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—

(a) 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 the PCSPS before the transition date for that member; and

(b) in respect of a period of assumed pay, “pensionable earnings” means the member’s assumed pay.

Meaning of “annualised final pay”

129

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

(2) But if the continuous period of pensionable service includes 29thFebruary, paragraph(1) has effect with the substitution for “365” of “366”.

(3) In this regulation—

(a) 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 the PCSPS before the transition date for that member; and

(b) in respect of a period of assumed pay, “pensionable earnings” means the member’s assumed pay.

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

130

(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 the PCSPS 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—

(a) X is—

(i) 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

(ii) if P’s period of service was less than 12 months, twice P’s annualised final pay; and

(b) Y is the total of—

(i) any lump sum paid under this scheme to P before P’s death; and

(ii) 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 any the early payment reduction; andthe amount of any increase in the annual rate of that pension under PIA1971 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)

131

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

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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[^f00069].

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

(a) the total annual amount of P’s full retirement pensions in relation to that 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 PIA 1971[^f00070]; and

(b) the amount of any increase in the annual rate of that pension under PIA1971 payable as at the date of P’s death.

(6) The calculation in paragraph (5)(a) is carried out without subtracting any early payment reduction.

(7) 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

132

(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 PSA 1993[^f00071] 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 amount of 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 PIA 1971[^f00072]; and

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

Amount payable under court order to former spouse or civil partner

133

(1) This regulation applies if on the death of a member of this scheme 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 the lump sum death benefit is first determined as if no such order had been made, and then this Part applies as if the amount of the lump sum death benefit were reduced by the amount payable under the court order.

PART 9 — Contributions

Rate of member contributions

134

(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),

(i) 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 27(3) which apply to the member not applied; and

(ii) payment of the money value of any benefit in kind which forms part of a member’s pensionable earnings is treated as having been made at a time or apportioned across a period of time as determined by the scheme manager.

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

(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 scheme employment, the number of days in the period beginning on the day the member commenced the period of pensionable service in the scheme employment 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 29th February, paragraph (6) has effect with the substitution for “365” of “366”.

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