Legalize / United Kingdom / Statutory-Instrument

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

PDF Download

articles Not indexed

Reform history JSON API

Annualised rate of pensionable earnings	Member contributions rate	Member contributions rate
	Transition members from Section II of the PCSPS	Other transition members and non-transition members
Up to but not including £15,001	3%	4.6%
£15,001 to but not including £21,001	4.6%	4.6%
£21,001 to but not including £47,001£47,001 to but not including £150,001	5.45%7.35%	5.45%7.35%
£150,001 and above	8.05%	8.05%
Annualised rate of pensionable earnings	Member contributions rate	Member contributions rate
---	---	---
	Transition members from Section II of the PCSPS	Other transition members and non-transition members
Up to but not including £15,001	3.8%	4.6%
£15,001 to but not including £21,211	4.6%	4.6%
£21,211 to but not including £48,472£48,472 to but not including £150,001	5.45%7.35%	5.45%7.35%
£150,001 and above	8.05%	8.05%
Annualised rate of pensionable earnings	Member contributions rate	Member contributions rate
---	---	---
	Transition members from Section II of the PCSPS	Other transition members and non-transition members
Up to but not including £15,001	4.6%	4.6%
£15,001 to but not including £21,423	4.6%	4.6%
£21,423 to but not including £51,006£51,006 to but not including £150,001	5.45%7.35%	5.45%7.35%
£150,001 and above	8.05%	8.05%
Annualised rate of pensionable earnings	Member contributions rate	Member contributions rate
---	---	---
	Transition members from Section II of the PCSPS	Other transition members and non-transition members
Up to but not including £15,001	4.6%	4.6%
£15,001 to but not including £21,637	4.6%	4.6%
£21,637 to but not including £51,516£51,516 to but not including £150,001	5.45%7.35%	5.45%7.35%
£150,001 and above	8.05%	8.05%
Annualised rate of pensionable earnings	Member contributions rate
---	---
Up to but not including £22,601	4.6%
£22,601 to but not including £54,901	5.45%
£54,901 to but not including £150,001	7.35%
£150,001 and above	8.05%
Annualised rate of pensionable earnings	Member contribution rates
---	---
Up to but not including £23,101	4.6%
£23,101 up to but not including £56,001	5.45%
£56,001 up to but not including £150,001	7.35%
£150,001 and above	8.05%
Annualised rate of pensionable earnings	Member contributions rate
---	---
Up to but not including £32,001	4.6%
£32,001 to but not including £56,001	5.45%
£56,001 to but not including £150,001	7.35%
£150,001 and above	8.05%

(9) The figures in the column headed “Annualised rate of pensionable earnings” of the table headed “Scheme Year 1st April 2023 to 31st March 2024 and subsequently” (except for the figures of £56,001 and £150,001) are to be increased on 1st April 2024, 1st April 2025 and 1st April 2026 if there is a relevant increase in the consumer prices index or, should the Minister decide, any other index of the general level of prices in the United Kingdom, by the appropriate percentage for the scheme year rounded up to the nearest £100.

(10) The figures in the column headed “Annualised rate of pensionable earnings” of the table headed “Scheme Year 1st April 2023 to 31st March 2024 and subsequently” (except for the figure of £150,001) are to be increased on 1st April 2027 and on 1st April of each subsequent scheme year, if there is a relevant increase in the consumer prices index or, should the Minister decide, any other index of the general level of prices in the United Kingdom, by the appropriate percentage for the scheme year rounded up to the nearest £100.

(11) For the purposes of paragraphs (9) and (10), where there is a relevant increase after 1st April 2024, the figures to be increased on the relevant date are the figures applicable to the previous scheme year.

(12) There is a relevant increase in the consumer prices index or any index of the general level of prices in the United Kingdom for a scheme year if that index for the month of September before that scheme year is higher than that for the previous September.

(13) The appropriate percentage for the scheme year is the same percentage as any percentage increase in the consumer prices index or any other index decided by the Minister over the period specified by paragraph (12).

(14) For the purposes of paragraphs (9), (10), (12) and (13), “consumer prices index” means the general index of consumer prices (for all items) published by the Statistics Board.

Amount of pensionable earnings

135

(1) For the purpose of regulation 134, the amount of a member’s pensionable earnings for any pay period is determined in accordance with this regulation.

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

(3) For any period of assumed pay under regulation 27(3)(a), the amount of the member’s pensionable earnings is equal to the member’s reduced pay while on sick leave.

(4) For any period of assumed pay under regulation 27(3)(b) or(c), the amount of the member’s pensionable earnings is the amount of contractual remuneration or statutory pay actually paid to or for the member in respect of the period of adoption leave, maternity leave, parental leave, paternity leave or shared parental leave.

(5) For the purpose of regulation 134, when calculating a member’s annualised rate of pensionable earnings, the amount of a payment of a member’s pensionable earnings for a pay period excludes any amounts paid to the member in that pay period in the form of arrears of, or back-dated, pensionable earnings.

Payment of member contributions

136

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

(2) A member’s employer—

(a) may make contributions on the member’s behalf in circumstances determined by the scheme manager; and

(b) unless paragraph (3)(b) applies, must do so for any period of assumed pay under regulation27(3)(e) (unpaid leave).

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

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

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

Employers’ contributions

137

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

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

(a) annual administration charges; and

(b) any other administrative charges,

at such intervals and at such rates as the scheme manager may from time to time determine which must, where the employer is the employer of a Fair Deal eligible person, be as provided for in the Admission Agreement.

(3) Where the Admission Agreement provides for an employer of a Fair Deal eligible person to pay additional payments or charges to this scheme, that employer must make such additional payments or charges as required by the Admission Agreement.

Deduction of payments for extra pension under Schedule 1

138

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

(a) added pension;

(b) an effective pension age; and

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

139

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

(2) All member contributions and payments resulting from the exercise of an option under Schedule 1 (“payments for extra pension”) made by the member in relation to the period of pensionable service are only refundable if—

(a) regulation 24 (opting out before the end of one month) applies; or

(b) the member’s pensionable service ceases and—

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

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

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

(3) If paragraph (2)(b) applies, the member is entitled to be paid an amount equal to the sum of all member contributions and payments for extra pension made by the member, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of FA2004[^f00073] as a result of a refund of those contributions and payments.

(4) If all member contributions and payments for extra pension made by the member are refunded under this regulation, the member’s rights under this scheme in relation to the period of pensionable service are extinguished.

PART 10 — Transfers

CHAPTER 1 — Preliminary

Application of Part

140

This Part—

(a) supplements the rights conferred by or under Chapter 1 of Part 4ZA of PSA 1993 (transfer values) and is without prejudice to that Chapter; and

(b) supplements the rights conferred by or under Chapter 2 of that Part (early leavers: cash transfer sums and contribution refunds)[^f00074] and is without prejudice to that Chapter.

Interpretation in relation to Part

141

(1) In this Part—

“cash equivalent” means an amount calculated in accordance with regulations made under section 97 (calculation of cash equivalents) of PSA 1993[^f00075];

“club transfer value” means, in relation to an amount of accrued earned pension under this scheme or under another club scheme, an amount calculated by the scheme manager—in accordance with the club transfer arrangements; andby reference to the guidance and tables provided by the Government Actuary for this purpose that are in use on the date used for the calculation;

“guarantee date” has the meaning given in regulation 144;

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

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

“transfer value” means, for accrued rights to benefits other than accrued earned pension which is the subject of a club transfer—for accrued rights to benefits under this scheme, an amount equal to—the guaranteed cash equivalent of those benefits; orthe guaranteed cash equivalent together with any increase payable under regulation146; andfor accrued rights to benefits under another pension scheme, an amount—determined by the scheme actuary of that scheme; andspecified in a statement of accrued rights provided by the scheme manager of that scheme.

CHAPTER 2 — Transfers out

Transfer payments made to other schemes or pension arrangements

142

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

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

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

(b) a pension arrangement that is a qualifying recognised overseas pension scheme for the purposes of Part 4 (pension schemes etc.) of FA 2004 (see section 169(2)[^f00076] (recognised transfers) of that Act).

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

(4) A member may only require the scheme manager to use a transfer payment in a way specified in section 95(2) (ways of taking right to cash equivalent) of PSA 1993[^f00077].

(5) A member may only require the scheme manager to make a club transfer value payment during the period of 12 months beginning with the day on which the member becomes eligible to be an active member of the scheme to which the payment is to be made.

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

(7) If section 96(2) (further provisions concerning exercise of option under section 95) of PSA1993[^f00078] applies, benefits attributable to the following may be excluded from the transfer payment—

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

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

Application for a statement of entitlement

143

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

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

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

(4) P may make a second application by notice to the scheme manager in the period of 12 months beginning with the date of the first application[^f00079].

Statement of entitlement

144

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

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

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

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

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

(4) The scheme manager may specify in the statement of entitlement a guarantee date that falls within the 6 months beginning with the date of the member’s application for the statement of entitlement if, for reasons beyond the control of the scheme manager, the information needed to calculate the amount of the cash equivalent or club transfer value cannot be obtained before the end of the 3 month period.

Request for transfer payment to be made

145

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

(2) The request for the transfer payment must—

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

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

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

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

Calculating the amount of a transfer value or club transfer value

146

(1) If a transfer value is paid later than 6 months after the guarantee date, the amount of the guaranteed cash equivalent must be increased in accordance with regulations made under section97 (calculation of cash equivalents) of PSA1993.

(2) If a club transfer value is paid later than 6 months after the guarantee date, the amount of the club transfer value as specified in the statement of entitlement must be increased if necessary so that it is equal to the amount it would have been if the guarantee date had been the date on which the payment is made.

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

(4) In this regulation—

“minimum transfer value” means the total of—the sum of all member contributions and payments for extra pension made by the member; andthe sum of all transfer payments received by this scheme in relation to the member;

“member contributions” has the meaning given in regulation 134; and

“payments for extra pension” has the meaning given in regulation 139.

Effect of a transfer out

147

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

CHAPTER 3 — Transfers in

Application of Chapter

148

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

Interpretation of Chapter

149

In this Chapter—

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

“another pension scheme” means—another occupational pension scheme that is a registered pension scheme but is not a connected scheme;a personal pension scheme; orthe Civil Service Additional Voluntary Contribution Scheme;

“Civil Service Additional Voluntary Contribution Scheme” means the scheme which was made on21stDecember 1988 under section 1 (persons employed in the civil service etc.) of SA 1972 and which came into force on 1stJanuary 1989, as amended from time to time;

“club transfer value statement” means a statement under regulation 153 of the amount of club transfer earned pension;

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

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

“transfer statement” means a statement under regulation 151(2).

Request for acceptance of a transfer payment

150

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

(2) A transfer payment request—

(a) must specify—

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

(ii) the anticipated amount of the transfer payment;

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

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

(3) A request that a transfer payment be accepted from the Civil Service Additional Voluntary Contribution Scheme must be made—

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

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

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

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

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

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

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

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

(b) it is less than the amount required for that purpose, as calculated in accordance with guidance and tables determined by the Minister for the purposes of this paragraph, after consultation with the scheme actuary.

Transfer statement

151

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

(2) The scheme manager may require that, before making a transfer payment request, P must ask the scheme manager to provide a statement of the amount of transferred pension that P will be entitled to count under regulation 152 if the transfer date falls within the period of 2 months beginning with the date of that statement.

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

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

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

Amount of transferred pension

152

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

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

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

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

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

Club transfer value statement

153

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

(2) The scheme manager may require that, before making the transfer payment request, P must ask the scheme manager to provide a statement of the amount of club transfer earned pension that P will be entitled to count under regulation 154 if the transfer date falls within the period of 2 months beginning with the date of that statement.

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

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

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

(4) The statement must specify the basis on which an amount of accrued earned pension is revalued under the sending scheme while a member is in pensionable service under that scheme.

Amount of club transfer earned pension

154

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

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

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

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

CHAPTER 4 — Bulk transfers

Bulk transfers out

155

(1) This regulation applies if—

(a) the employment of one or more active members (“the transferring employees”) is transferred without their consent to a new employer,

(b) on that transfer, the transferring employees—

(i) cease to be eligible to be active members of this scheme; and

(ii) become active members of another occupational pension scheme (“the new employer’s scheme”);

(c) the scheme manager has agreed special terms for making transfer payments to the new employer’s scheme in respect of the rights of the transferring employees, after consultation with the scheme actuary; and

(d) the transferring employees have consented in writing to their rights being transferred in accordance with those terms.

(2) This regulation also applies if—

(a) the rights of one or more members (“the transferred members”) are transferred to another occupational pension scheme (“the new scheme”) from this scheme without their consent in accordance with section 73(2)(a)(i) and (4)(b) (form of short service benefit and its alternatives) of PSA 1993; and

(b) the scheme manager has agreed special terms for the making of transfer payments to the new scheme in respect of the rights of the transferred members, after consultation with the scheme actuary.

(3) The transfer payment to be made in respect of the rights of the transferring employees or the transferred members is an amount that the scheme manager determines to be appropriate under the special terms, after consulting the scheme actuary.

(4) This Part has effect with any modifications the scheme manager considers necessary to give effect to those terms.

(5) If a Minister of the Crown gives an undertaking concerning the pension rights of the transferring employees or the transferred members, this Part has effect with any modifications the scheme manager considers necessary to reflect the terms of the undertaking.

(6) If the transfer is directly or indirectly attributable to an enactment, this Part has effect with any modifications the scheme manager considers necessary in consequence of the transfer.

Bulk transfers in

156

(1) This regulation applies if—

(a) the employment of one or more persons (“the transferred employees”) is transferred without their consent to a new employer;

(b) on that transfer, the transferred employees—

(i) cease to be active members of an occupational pension scheme (“the former employer’s scheme”); and

(ii) become active members of this scheme;

(c) the scheme manager has agreed special terms for the acceptance of transfer payments from the former employer’s scheme in respect of the rights of the transferred employees, after consulting the scheme actuary; and

(d) the transferred employees have consented in writing to their rights being transferred in accordance with those terms.

(2) This regulation also applies if—

(a) the rights of one or more persons (“the transferred members”) are transferred from an occupational pension scheme (“the former scheme”) to this scheme without their consent in accordance with section 73(2)(a)(i) and (4)(b) (form of short service benefit and its alternatives) of PSA 1993; and

(b) the scheme manager has agreed special terms for the acceptance of transfer payments from the former scheme in respect of the rights of the transferred members, after consultation with the scheme actuary.

(3) This scheme has effect with any modifications the scheme manager considers necessary to give effect to the special terms.

(4) If a Minister of the Crown gives an undertaking concerning the pension rights of the transferred employees or the transferred members, this scheme has effect with any modifications the scheme manager considers necessary to reflect the terms of the undertaking.

(5) If the transfer is directly or indirectly attributable to an enactment, this scheme has effect with any modifications the scheme manager considers necessary in consequence of the transfer.

CHAPTER 5 — Miscellaneous transfers

EU and overseas transfers

157

(1) This regulation applies in the case of a member whose transfer is subject to transfer arrangements concluded with—

(a) the Communities Pension Scheme of the Institutions of the European Communities; or

(b) any other scheme for the provision of retirement benefits established outside the United Kingdom.

(2) This scheme applies in relation to the member with any modifications the scheme manager considers necessary to comply with—

(a) the terms of those arrangements;

(b) any applicable provision contained in or made under any enactment; and

PART 11 — Actuarial valuations and employer cost cap

Appointment of scheme actuary and actuarial valuations

158

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

(2) The scheme actuary is responsible for—

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

(b) preparing reports on the valuations.

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

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

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

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

Employer cost cap

159

(1) The employer cost cap for this scheme is 18.5% of pensionable earnings of members of this scheme.

(2) In the circumstances specified in paragraph (4), the Minister must consult such persons (or those appearing to the Minister to represent such persons) as appear to the Minister likely to be affected by any steps that will be taken, with a view to reaching agreement on the steps required to achieve the target cost for this scheme.

(3) If, following such consultation, agreement is not reached the percentage of the member’s pensionable earnings specified in regulation 43(4) as the amount of earned pension for a scheme year must be adjusted for pensionable earnings after the date of the adjustment, so that the target cost for this scheme is achieved.

(4) The circumstances are that the cost of this scheme goes beyond the margin either side of the employer cost cap for this scheme specified in regulations under section 12(5)(a) of the Act.

(5) In this regulation—

(a) “cost of this scheme” means the cost of this scheme calculated following a valuation in accordance with regulation 158; and

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

PART 12 — Supplementary

CHAPTER 1 — Dual capacity members

Meaning of “dual capacity member”

160

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

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

(i) an active member;

(ii) a deferred member;

(iii) a pensioner member;

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

(i) an active member;

(ii) a deferred member;

(iii) a pensioner member;

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

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

(a) in determining whether a person who is an active member is also a pensioner member, the fact that the person is an active member and the person’s rights in that capacity are to be disregarded[^f00080]; and

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

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

161

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

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

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

(2) In relation to payment of retirement benefits, paragraph (1) does not affect the interpretation of regulation 64 (exercise of partial retirement option) if a member is both an active member and a pensioner member by virtue of that regulation.

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

(a) the calculation under regulation 130 of a lump sum payable on the death of an active member of this scheme being made by reference to amounts that are relevant to the member in another capacity;

(b) the calculation under regulation 131 of a lump sum payable on the death of a pensioner member or deferred member of this scheme being made by reference to amounts that are relevant to the member in both of those capacities; or

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

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

CHAPTER 2 — Payment of benefits: general

Late payment of retirement index adjustment

162

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

Commutation of small pensions

163

(1) This regulation applies if—

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

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

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

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

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

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

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

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

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

(5) In this regulation—

“the commutation provisions” means the provisions permitting the commutation of pensions set out in— regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997[^f00081]; paragraph 7 of Schedule 29 (authorised lump sums – supplementary) to FA 2004 (which defines trivial commutation lump sums for the purposes of Part 4 of that Act)[^f00082] and, in relation to a pension payable under Part8 (death benefits), paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of Part 4 of that Act)[^f00083]; and regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations 2000[^f00084];

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

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

Guaranteed minimum pensions

164

(1) If a member has a guaranteed minimum under section 14 (earner’s guaranteed minimum) of PSA1993[^f00085] in relation to benefits 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 member and such a member’s rights under this scheme not to be met in the case of the member;

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

(2) If apart from this regulation—

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

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

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

(3) If—

(a) on reaching state pension age the member is still in employment (whether or not it is scheme employment); and

(b) if it is not scheme employment, the member consents to a postponement of the member’s entitlement under paragraph (2),

paragraph (2) does not apply until the member leaves employment.

This is subject to paragraph (4).

(4) If the member continues in employment for a further 5 years after reaching state pension age and does not then leave employment, the member is entitled from the end of that period to so much of the member’s pension under Parts 6 and 7 as equals the member’s guaranteed minimum (or, as the case may be, to so much of the member’s pensions under Parts 6 and 7 as together have a weekly rate equal to the member’s guaranteed minimum), unless the member consents to a further postponement of the entitlement.

(5) In the circumstances provided for in paragraph (3) or (4), the amount of the guaranteed minimum to which the member is entitled under this regulation is increased in accordance with section 15 (increase of guaranteed minimum where commencement of guaranteed minimum pension postponed) of PSA 1993.

(6) If—

(a) before state pension age the member becomes entitled to the immediate payment of a pension; and

(b) the member has a guaranteed minimum under section 14 of PSA 1993 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,

the weekly rate of the pension, so far as attributable to that service, must not be less than the guaranteed minimum, multiplied by such factor as is indicated in actuarial tables for a person of the member’s age and sex at the date on which the pension becomes payable.

(7) This paragraph applies if a person has ceased to be in employment that is contracted-out employment, within the meaning of Part 3 of PSA 1993 (certification of pension schemes and effects on members’ state scheme rights and duties), by reference to this scheme and either—

(a) a transfer payment in respect of all the person’s rights to benefits under this scheme, except the person’s rights in respect of the person’s guaranteed minimum or rights under section 9(2B) (requirements for certification of schemes: general) of PSA1993[^f00086] (“the person’s contracting-out rights”) has been made; or

(b) the person has no rights to benefits under this scheme apart from the person’s contracting-out rights.

(8) If paragraph (7) applies—

(a) from the date on which the person reaches state pension age the person is entitled to a pension payable for life at a weekly rate equal to the person’s guaranteed minimum, if any; and

(b) from the date on which the person reaches normal pension age under this scheme the person is entitled to a lump sum and pension in respect of the person’s rights under section 9(2B) of PSA 1993,

but a person falling within paragraph (7) is not to be regarded as a pensioner for the purposes of Part 8 (death benefits).

(9) Paragraphs (2) to (8) do not apply to—

(a) a pension that is forfeited—

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

(ii) 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[^f00087] or an applicable offence under the National Security Act 2023;

(b) a pension that is commuted under regulation 85 or 98 (serious ill-health: commutation of whole pension); or

(c) a pension that is commuted under regulation 163 where the conditions in regulation 60 (payment of a guaranteed minimum pension as a lump sum) of the Occupational Pension Schemes (Contracting-out) Regulations 1996[^f00088]are met,

but if any other provision of this scheme is inconsistent with this regulation, this regulation prevails.

(10) In this regulation, references to the amount of a pension are to its amount after the subtraction of the commutation amount, if any (but before the subtraction of the allocation amount, if any (see regulation 86(5)).

CHAPTER 3 — Forfeiture and set-off

Forfeiture: offences committed by members

165

(1) If a member is convicted of a relevant offence, the scheme manager may to the extent the scheme manager considers appropriate withhold benefits payable under this scheme to or in respect of the member.

(2) Paragraph (3) applies if benefits are to be withheld as a result of an offence falling within paragraph (b) of the definition of “relevant offence”.

(3) The scheme manager may only withhold that part of a person’s pension that exceeds any guaranteed minimum to which the person is entitled under—

(a) section14 of PSA 1993 (earner’s guaranteed minimum); or

(b) section17[^f00089] of that Act (minimum pension for surviving spouses and civil partners).

(4) In this regulation—

“forfeiture certificate” means a certificate stating that the Minister of the Crown issuing the certificate considers that the offence—has been gravely injurious to the interests of the State; oris liable to lead to serious loss of confidence in the public service; and

“relevant offence” means—one or more offences under the Official Secrets Acts 1911 to 1989[^f00090] , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023, for which the member has been sentenced on the same occasion to—a term of imprisonment of at least 10 years; or2 or more consecutive terms of imprisonment which add up to at least 10 years;an offence committed in connection with service as a public servant and in respect of which a Minister of the Crown has issued a forfeiture certificate.

Forfeiture: offences committed by a member’s beneficiary

166

(1) If the beneficiary of a deceased member of this scheme (D) is convicted of a relevant criminal offence, the scheme manager may withhold benefits payable to the beneficiary in respect of D.

(2) The scheme manager may withhold benefits to the extent the scheme manager considers appropriate but may only withhold that part of a pension that exceeds any guaranteed minimum to which the beneficiary is entitled under section 17 of PSA1993.

(3) If the scheme manager withholds all of the benefits payable to a beneficiary, Part8 (death benefits) applies as if the beneficiary had died before D.

(4) In this regulation, “relevant criminal offence” means—

(a) the murder of D;

(b) the manslaughter of D; or

Forfeiture: relevant monetary obligations and relevant monetary losses

167

(1) If a member (P) owes a relevant monetary obligation or has caused a relevant monetary loss, the scheme manager may withhold benefits payable to P under this scheme.

(2) The scheme manager may withhold benefits to the extent the scheme manager considers appropriate but may only withhold that part of P’s pension that exceeds any guaranteed minimum to which P is entitled under section 14 of PSA 1993.

(3) The scheme manager may not withhold more than the lesser of—

(a) the amount of the relevant monetary obligation or relevant monetary loss; and

(b) the value of P’s entitlement to benefits.

(4) The scheme manager may only withhold benefits if—

(a) there is no dispute as to the amount of the relevant monetary obligation or relevant monetary loss; or

(b) the relevant monetary obligation or relevant monetary loss is enforceable as follows—

(i) under an order of a competent court;

(ii) in consequence of an award of an arbitrator; or

(iii) in Scotland, in consequence of an award of an arbiter appointed (failing agreement between the parties) by the sheriff.

(5) In this regulation—

“relevant monetary obligation” means a monetary obligation which— was incurred to the Crown or P’s employer (if different); was incurred after P became an active member of this scheme; arose out of P’s criminal, negligent or fraudulent act or omission; and arose out of or was connected with service in the scheme employment in respect of which P is a member of this scheme; and

“relevant monetary loss” means a monetary loss which— was caused to this scheme; and arose as a result of P’s criminal, negligent or fraudulent act or omission.

Set-off

168

(1) The scheme manager may set off a relevant monetary obligation against a member’s entitlement to benefits under this scheme.

(2) In this regulation, a “relevant monetary obligation” is a monetary obligation owed by a member (P), which satisfies the conditions in paragraph (3), (4) or (5).

(3) The conditions are that the monetary obligation—

(a) was incurred to the Crown or P’s employer (if different);

(b) was incurred after P became an active member of this scheme; and

(c) arose out of or was connected with service in the scheme employment in respect of which P is a member of this scheme.

(4) The conditions are that the monetary obligation—

(a) was incurred to this scheme; and

(b) arose out of P’s criminal, negligent or fraudulent act or omission.

(5) The conditions are that the monetary obligation—

(a) was incurred to this scheme; and

(b) arose out of a payment made to P in error by the scheme manager.

(6) Paragraph (7) applies if a set-off is to be applied as a result of P owing a relevant monetary obligation which satisfies the conditions in paragraph (3).

(7) Where this paragraph applies, the scheme manager may not apply a set-off against that part of P’s entitlement to benefits that represents transfer credits within the meaning of section 124(1) (interpretation of Part 1) of PA1995[^f00091] (other than prescribed transfer credits for the purposes of section 91(5)(d) (exceptions from the inalienability of occupational pensions) of PA 1995[^f00092]).

(8) The scheme manager may only apply a set-off against that part of a member’s pension that exceeds any guaranteed minimum to which the member is entitled under section 14 of PSA 1993.

(9) The value of the set-off applied must not exceed the lesser of—

(a) the amount of the relevant monetary obligation; and

(b) the value of P’s entitlement to benefits.

(10) The scheme manager may only set off a relevant monetary obligation against P’s entitlement to benefits if—

(a) there is no dispute as to the amount of the relevant monetary obligation; or

(b) the relevant monetary obligation is enforceable—

(i) under an order of a competent court;

(ii) in consequence of an award of an arbitrator; or

(iii) in Scotland, in consequence of an award of an arbiter appointed (failing agreement between the parties) by the sheriff.

Forfeiture and set-off: procedure and appeals

169

(1) If the scheme manager proposes to withhold benefits or apply a set-off against a person’s entitlement to benefits, the scheme manager must notify the person of the proposal in writing.

(2) If the scheme manager withholds benefits under regulation 167 or applies a set-off against an entitlement to benefits under regulation 168, the scheme manager must give the member a certificate showing—

(a) the amount withheld or set off; and

(b) the effect of the withholding or set-off on the member’s benefits under this scheme.

(3) If the scheme manager proposes to withhold a person’s benefits under regulation 165 to 167, the person may appeal against the scheme manager’s proposal to the Civil Service Appeal Board.

(4) On an appeal made under paragraph (3) the Civil Service Appeal Board may—

(a) confirm or reject the scheme manager’s proposal; or

(b) amend it so as to reduce the extent to which the benefits are withheld.

(5) The scheme manager must comply with the Civil Service Appeal Board’s decision.

CHAPTER 4 — Payment and deduction of tax

Scheme manager to be scheme administrator for purposes of Part 4 of Finance Act 2004

170

(1) The scheme manager is appointed to be responsible for all functions that are functions conferred or imposed on the scheme administrator by or under Part 4 of FA2004 (pension schemes etc).

Payment on behalf of members of lifetime allowance charge

171

(1) A member of this scheme may request the scheme manager to pay on the member’s behalf any amount that is payable by way of the lifetime allowance charge under section 214 of FA 2004 (“the amount”) if—

(a) an event that is a benefit crystallisation event (“the event”) listed in the table in section 216(1) of FA 2004[^f00093] occurs in relation to the member; and

(b) the member and the scheme manager are jointly and severally liable in relation to the event.

(2) A request may only be made by notice given to the scheme manager before the event occurs.

(3) The scheme manager may only comply with a request if the member pays the amount to the scheme manager on or before the date on which the event occurs.

Reduction of benefits where lifetime allowance charge payable

172

(1) This regulation applies if—

(a) an event that is a benefit crystallisation event (“the event”) listed in the table in section216(1) of FA2004 (“the table”) occurs in relation to a member;

(b) the member and the scheme manager are jointly and severally liable in relation to the event; and

(c) no request has been duly made under regulation 171 in relation to the event or, if such a request has been made, the scheme manager is prevented from complying with it by paragraph (3) of that regulation.

(2) If this regulation applies—

(a) the scheme manager must pay the tax payable on the event;

(b) if the event is benefit crystallisation event 8 in the table (transfer to qualifying recognised overseas pension scheme), the amount or value of the sums or assets transferred must be reduced; and

(c) in the case of any other event in the table, the amount or value of the benefits payable to or in respect of the member must be reduced.

(3) The amount or value of the reduction—

(a) must fully reflect the amount of the tax so paid;

(b) must be determined in accordance with guidance provided by the scheme manager; and

Information about payment of annual allowance charge

173

(1) If a member’s pension scheme input amount for this scheme for a tax year exceeds the amount of the annual allowance for that tax year, paragraph (2) applies in respect of the member for that tax year.

(2) The scheme manager must provide the member with any information the scheme manager considers appropriate to assist the member to arrange payment of the annual allowance charge for a tax year—

(a) no later than 6th October after the end of that tax year; or

(b) where regulation 14A(6) (provision of pension savings statement where scheme administrator has not been provided with information about a member) of the Registered Pension Schemes (Provision of Information) Regulations 2006 applies in relation to a member, the date determined in accordance with that regulation.

(3) In this regulation, “pension scheme input amount” has the same meaning as in section237B(2) (liability of scheme administrator) of FA 2004[^f00094].

Reduction of benefits where annual allowance charge paid by scheme manager

174

(1) This regulation applies where—

(a) a member gives valid notice to the scheme manager of joint and several liability for an annual allowance charge under section 237B(3) of FA 2004; and

(b) the scheme manager satisfies the liability specified in the notice.

(2) The amount or value of the benefits payable to or in respect of the member for the tax year to which the notice relates must be reduced by the scheme manager in accordance with paragraph(3).

(3) Subject to paragraph (4), the amount or value of the reduction of benefits—

(a) must fully reflect the amount paid by the scheme manager; and

(b) must be consistent with normal actuarial practice.

(4) Benefits may only be reduced under this regulation to the extent that the reduction would not result in the loss of any part of a guaranteed minimum pension to which a person is entitled under sections 14 (earner’s guaranteed minimum) or 17 (minimum pension for surviving spouses and civil partners) of PSA 1993.

CHAPTER 5 — General

General prohibition on unauthorised payments

175

Nothing in these Regulations requires or authorises the making of any payment, which, if made, would be an unauthorised payment for the purposes of Part 4 of FA 2004 (pension schemes etc.) (see section 160(5) of that Act).

Calculation of periods of membership and service

176

(1) For the purposes of this scheme, periods of membership and service are to be expressed in the first instance in whole years, and days and fractions of a day, and the initial aggregation of periods that require to be aggregated is done in the first instance by reference to periods so expressed.

Determination of questions

177

Except as otherwise provided by these Regulations, any question arising under this scheme is to be determined by the scheme manager, whose decision on it is final.

Evidence of entitlement

178

(1) The scheme manager may require any person who is receiving a pension under this scheme to provide evidence to establish—

(a) the person’s identity; and

(b) the person’s continuing entitlement to payment of any amount.

(2) If the person does not provide the required evidence, the scheme manager may withhold the whole or any part of any benefits payable under this scheme in respect of the person.

Provision of benefit information statements to members

179

(1) The scheme manager must provide benefit information statements to each active member of this scheme in accordance with—

(a) section 14 of the Act (information about benefits); and

(b) directions made under that section (“Treasury directions”).

Information to be provided by employers

180

(1) An employer of a member of this scheme must, by such date as the scheme manager may specify, provide the scheme manager with such information as the scheme manager may request—

(a) in connection with the scheme manager’s or scheme administrator’s functions in relation to this scheme; or

(b) to enable the scheme manager or Minister to fulfil any obligations on the scheme manager or Minister set out in or under legislation.

(2) An employer of a Fair Deal eligible person must provide to the scheme manager within 30 days after the end of each complete scheme year during which the employer is an employer of a Fair Deal eligible person—

(a) a list of the Fair Deal eligible persons employed by the employer, stating whether they are active members of this scheme or have opted-out of active scheme membership; and

(b) a statement confirming that the persons listed are eligible to be active members of this scheme.

(3) An employer of a Fair Deal eligible person (P) must inform the scheme manager promptly and in any event within 28 days—

(a) if P opts out of this scheme; or

(b) of any changes to P’s eligibility to be an active member of this scheme including where P ceases to be eligible to be an active member of this scheme.

(a) An employer of a Fair Deal eligible person who is an active member of this scheme (M) must inform the scheme manager promptly and in any event within 28 days of any change in the matters set out in sub-paragraph (b) where the change affects M’s entitlement to benefits under or membership of this scheme.

(b) The matters are—

(i) M’s terms and conditions of employment including terms and conditions relating to any work done by M on functions or services other than the transferred services;

(ii) M’s working pattern or hours; and

(iii) M’s attendance at work, including any long term sick leave or other absences.

(5) An employer of a Fair Deal eligible person must inform the scheme manager immediately the employer becomes aware of any circumstance (including any actual or proposed change in the employer’s status) which is one which may give rise to the termination of the Admission Agreement.

Protections for the scheme in relation to employers of Fair Deal eligible persons

181

(1) Where an employer of a Fair Deal eligible person increases the pensionable earnings of a member of this scheme employed by the employer in a way which the scheme manager has determined is one where the resulting costs to this scheme or any connected scheme are costs which should be paid by the employer, the employer must pay to this scheme on demand the amount of the increase in this or the connected scheme’s costs or liabilities resulting from the increase.

(2) Where a Fair Deal eligible person exercises a choice available to the person under this scheme which leads to an increase in the contributions that the person’s employer is required to pay under this scheme, the employer must pay to this scheme the amount of the increase in contributions.

(3) Where an employer of a Fair Deal eligible person has breached any of the provisions of this scheme or any provision of the Admission Agreement the employer must pay to this scheme on demand the sum, as determined by the scheme manager, which is required to compensate this scheme for—

(a) any increase in this scheme’s costs or liabilities resulting from the breach; and

(b) any resulting additional administration expenses incurred by or on behalf of this scheme.

(4) Where an employer of a Fair Deal eligible person has entered into a contractual agreement (whether in the Admission Agreement or otherwise) with the scheme manager or the Minister to lodge a bond with the scheme, the scheme manager or Minister may call on the bond in the circumstances provided for in the contractual agreement.

(5) Where a person has entered into an agreement (whether in the Admission Agreement or otherwise) to indemnify this scheme in respect of contributions and other payments due to this scheme from an employer of a Fair Deal eligible person, that person must pay to this scheme on demand by the scheme manager or the Minister the sums due under the indemnity, in accordance with the provisions of the agreement.

Transitional provisions

182

Schedule 2 has effect.

SCHEDULE 1 — Payments for extra pension

PART 1 — General

Interpretation

1

In this Schedule—

“added pension option” means the option to make added pension payments;

“amount of accrued added pension” means the total of—the amount of accrued added (self only) pension (if any); andthe amount of accrued added (all beneficiaries) pension (if any);

“amount of extra pension” has the meaning given in paragraph2;

“appropriate pay period” means the pay period that the scheme manager considers appropriate;

“effective pension age option” means the option to make effective pension age payments;

“effective pension age payments” means periodical payments for an effective pension age made to this scheme;

“eligible employment” has the meaning given in paragraph 34;

“enhanced effective pension age option” means the option to make enhanced effective pension age payments;

“enhanced effective pension age payments” means periodical payments for an enhanced effective pension age made to this scheme;

“overall limit of extra pension” has the meaning given in paragraph3;

“periodical payment period” means the period for which periodical payments for added pension, an effective pension age or an enhanced effective pension age are payable;

“period of service”, in relation to this scheme, means a continuous period of pensionable service under this scheme;

“the relevant day”, in relation to a lump sum payment for added pension, means—if the scheme manager provides a statement of the amount of added pension, the first day after the period of one month beginning with the date of the statement; orotherwise, the day on which the lump sum payment is received by the scheme manager;

“the relevant scheme year” means the scheme year in which the relevant day falls;

“statement of the amount of added pension” means the statement referred to in paragraph 18;

“third party” means a third party approved by the scheme manager to make payments for extra pension in respect of an active member of this scheme; and

“value”, in relation to an effective pension age option or an enhanced effective pension age option, means a value determined by the scheme manager under Part 3 or 4 of this Schedule.

Meaning of “amount of extra pension”

2

The amount of extra pension at any given time is the total of the following—

(a) the amount of accrued added pension at that time;

(b) if the member has exercised one or more effective pension age options or enhanced effective pension age options, the value of each option as at that time.

Meaning of “overall limit of extra pension”

3

(1) The overall limit of extra pension is—

(a) £6,500 for any scheme year ending before 1stApril 2016; and

(b) for any scheme year beginning on or after 1stApril 2016—

(i) the overall limit of extra pension determined by the Treasury in respect of that scheme year as published before the start of that scheme year; or

(ii) if no such determination is made, the amount calculated under paragraph (2).

(2) The amount is the amount to which the annual rate of a pension of an amount equal to the overall limit of extra pension for the previous scheme year would have been increased under PIA1971 if—

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

(b) the beginning date for that pension were the first day of the previous scheme year.

Limit on elections

4

An added pension option may not be exercised in relation to a member if the member has exercised an effective pension age option or an enhanced effective pension age option and—

(a) the value of the effective pension age option or enhanced effective pension age option exceeds the overall limit of extra pension; or

(b) if the added pension option is exercised, the amount of extra pension would exceed the overall limit of extra pension.

Amount of accrued added pension may not exceed overall limit of extra pension

5

(1) At any given time, the total amount of accrued added pension in all the active member’s accounts established for a member under Part 5 may not exceed the overall limit of extra pension.

(2) If a member has opted to make periodical payments for added pension under this scheme, the scheme manager may by notice to the member cancel the added pension option if it appears to the scheme manager that the overall limit of extra pension will be exceeded if the member continues to make the periodical payments.

(3) If the scheme manager cancels the option, the periodical payments cease to be payable from the next pay period beginning after the date specified in the notice of cancellation.

(4) For the purpose of this paragraph, “amount of accrued added pension” does not include any amount attributable to a lump sum payable to a member under a compensation scheme.

Actuarial advice

6

The scheme manager must take advice from the scheme actuary before determining any amount under this Schedule.

PART 2 — Payments for added pension

CHAPTER 1 — Exercising the added pension option

Added pension option exercisable by member

7

(1) An active member of this scheme may opt to make added pension payments to increase—

(a) the member’s retirement benefits[^f00095] for a period of service; or

(b) the member’s retirement benefits and death benefits payable in respect of the member for a period of service.

(2) A member may exercise the added pension option by notice to the scheme manager in a form required by the scheme manager (“the option notice”).

(3) The option notice must state whether the added pension payments are to be made by—

(a) periodical payments; or

(b) a lump sum payment.

(4) If the whole or part of any lump sum payable to the member under a compensation scheme is to be used as a lump sum payment for added pension the option notice must specify this.

(5) A member may exercise the added pension option more than once but an option to make a lump sum payment for added pension may only be exercised once in any scheme year.

(6) An option to make a lump sum payment for added pension may only be exercised if the member—

(a) either—

(i) has been an active member of this scheme in relation to a continuous period of pensionable service for at least 12 months; or

(ii) is a transition member within the meaning of paragraph 1 of Schedule 2; and

(b) has been provided with a statement of the amount of added pension (if paragraph 18 applies).

Added pension option exercisable by employer or third party

8

(1) A third party or the employer of an active member of this scheme may, if the scheme manager approves, opt to make a lump sum payment for added pension to increase—

(a) the member’s retirement benefits for a period of service; or

(b) both the member’s retirement benefits and death benefits payable in respect of the member for a period of service.

(2) The employer or third party may exercise an added pension option by notice to the scheme manager in a form required by the scheme manager (“the option notice”).

(3) The employer or third party may exercise an added pension option more than once but only once in any scheme year.

(4) If an active member opts for the whole or part of any lump sum payable to the member under a compensation scheme to be used to make a lump sum payment for added pension, the member’s employer may opt to make a lump sum payment under this regulation.

CHAPTER 2 — Periodical payments for added pension

Application of Chapter

9

This Chapter applies in relation to an active member of this scheme who opts to make periodical payments for added pension under this scheme.

Member’s option to make periodical payments for added pension

10

(1) The option notice must specify—

(a) the periodical payment period; and

(b) the amount of the periodical payment to be deducted by the member’s employer from the member’s pensionable earnings in each pay period.

(2) The amount of the periodical payment may be expressed as—

(a) a percentage of the member’s pensionable earnings; or

(b) a fixed sum.

(3) The amount of the periodical payment must not be less than any minimum amount determined by the scheme manager.

Cancellation of option by member

11

(1) The member may, by notice to the scheme manager, cancel the option at any time during the periodical payment period.

(2) If the member cancels the option, the periodical payments cease to be payable from the beginning of the next scheme year after the scheme manager receives the notice of cancellation.

Periodical payments

12

(1) The periodical payments are payable by deduction by the member’s employer from the member’s pensionable earnings during the periodical payment period.

(2) The periodical payment period—

(a) begins with—

(i) if the member exercises the option within 3 months after joining this scheme, the first appropriate pay period beginning on or after the date on which the scheme manager receives the option notice; or

(ii) in any other case, the first appropriate pay period of the scheme year beginning on or after the date on which the scheme manager receives the option notice; and

(b) ends on the earlier of—

(i) the date on which the member ceases to be an active member of this scheme; and

(ii) the date specified in the option notice.

(3) Subject to sub-paragraph (4), during a period of assumed pay the member may—

(a) stop the periodical payments; or

(b) continue the periodical payments as if the member were receiving pensionable earnings at the full rate.

(4) During any period in which the member is receiving statutory maternity pay within the meaning of the Social Security Contributions and Benefits Act 1992[^f00096] or is on paid ordinary maternity leave, paid adoption leave , paid shared parental leave or paid paternity leave, the member may—

(a) stop the periodical payments; or

(b) make periodical payments of an amount determined by reference to the member’s actual pay during that period.

(5) If a member stops the periodical payments during a period of assumed pay, the member may, by notice to the scheme manager in a form required by the scheme manager, resume the periodical payments in the next pay period after the period of assumed pay ends.

Amount of added (self only) pension for a scheme year (periodical payments)

13

(1) This paragraph applies in relation to each scheme year during which a member makes periodical payments to increase the member’s retirement benefits only.

(2) An amount of added (self only) pension is credited to the active member’s account for that scheme year.

(3) The amount is determined by the scheme manager by reference to published actuarial tables, having regard to the cost in the scheme year of providing retirement benefits to a person of the member’s age and gender.

Amount of added (all beneficiaries) pension for a scheme year (periodical payments)

14

(1) This paragraph applies in relation to each scheme year during which a member makes periodical payments to increase—

(a) the member’s retirement benefits; and

(b) death benefits payable in respect of the member.

(2) An amount of added (all beneficiaries) pension is credited to the active member’s account for that scheme year.

(3) The amount is determined by the scheme manager by reference to published actuarial tables, having regard to the cost in the scheme year of providing retirement benefits to—

(a) a person of the member’s age; and

(b) dependants of a person of that age.

CHAPTER 3 — Lump sum payments for added pension made by member

Application of Chapter

15

This Chapter applies in relation to an active member of this scheme who opts to make a lump sum payment for added pension under this scheme.

Member’s option to make a lump sum payment for added pension

16

(1) The option notice must specify the amount of the lump sum which must not be less than any minimum amount determined by the scheme manager.

(2) The lump sum is payable immediately to the scheme manager by deduction by the member’s employer from the member’s pensionable earnings or otherwise.

Payment by lump sum from a compensation scheme

17

(1) This paragraph applies if the member specifies in the option notice that the whole or part of any lump sum payable to the member under a compensation scheme is to be used as a lump sum payment for added pension.

(2) The member’s employer may make a lump sum payment for added pension in relation to the member using the whole or part of the lump sum as specified in the option notice.

Statement of amount of added pension

18

(1) If the scheme manager so requires, the member before exercising the option must ask the scheme manager to provide a statement of the amount of added pension.

(2) A statement of the amount of added pension must set out the amount that would be credited to the active member’s account if the lump sum is received by the scheme manager within one month after the date of the statement.

(3) The statement must also—

(a) specify the overall limit of extra pension; and

(b) inform the member if it appears to the scheme manager that the overall limit of extra pension would be exceeded if the active member’s account is credited with the amount of added pension set out in the statement.

Amount of added (self only) pension (lump sum payment)

19

(1) This paragraph applies if a member opts to make a lump sum payment to increase the member’s retirement benefits only.

(2) Following payment of the lump sum by the member an amount of added (self only) pension is credited to the active member’s account for the relevant scheme year.

(3) The amount credited to the account is—

(a) if the scheme manager has provided a statement of the amount of added pension and the lump sum is received by the scheme manager within one month after the date of the statement, the amount specified in the statement; or

(b) otherwise, an amount determined by the scheme manager by reference to published actuarial tables, having regard to—

(i) the amount of the lump sum;

(ii) the cost as at the relevant day of providing retirement benefits to a person of the member’s age and gender;

(iii) factors relating to the member’s circumstances as at the relevant day; and

(iv) any other factors as at the date of the statement of the amount of added pension to which the scheme actuary considers regard should be had.

Amount of added (all beneficiaries) pension (lump sum payment)

20

(1) This paragraph applies if a member opts to pay a lump sum to increase—

(a) the member’s retirement benefits; and

(b) death benefits payable in respect of the member.

(2) On payment of the lump sum by the member an amount of added (all beneficiaries) pension is credited to the active member’s account in the relevant scheme year.

(3) The amount credited to the account is—

(a) if the scheme manager has provided a statement of the amount of added pension and the lump sum is received by the scheme manager within one month after the date of the statement, the amount specified in the statement; or

(b) otherwise, an amount determined by the scheme manager by reference to published actuarial tables, having regard to—

(i) the amount of the lump sum;

(ii) the cost as at the relevant day of providing retirement benefits to a person of the member’s age and dependants of a person of that age;

(iii) factors relating to the member’s circumstances as at the relevant day; and

(iv) any other factors as at the date of the statement of the amount of added pension pension to which the scheme actuary considers regard should be had.

CHAPTER 4 — Lump sum payments for added pension made by employer or third party

Application of Chapter

21

This Chapter applies in relation to an employer or third party who opts to make a lump sum payment for added pension in relation to an active member of this scheme.

Employer or third party option to make a lump sum payment for added pension

22

(1) The option notice must specify the amount by which the member’s added (self only) pension or added (all beneficiaries) pension for the relevant scheme year is to be increased.

(2) The amount of the lump sum payment is—

(a) if the option notice specifies an increase in the member’s added (self only) pension, an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the cost as at the relevant day of providing retirement benefits to a person of the member’s age and gender; and

(b) if the option notice specifies an increase in the member’s added (all beneficiaries) pension, an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the cost as at the relevant day of providing retirement benefits to—

(i) a person of the member’s age; and

(ii) the dependants of such a person.

(3) The lump sum payment must be paid in a manner determined by the scheme manager after consultation with the scheme actuary.

(4) The scheme manager must notify the employer or third party of the amount of the lump sum and the manner in which it is to be paid.

Amount of added (self only) pension (lump sum payment)

23

(1) This paragraph applies if an employer or third party opts to make a lump sum payment to increase the member’s added (self only) pension.

(2) On payment of the lump sum by the employer or third party an amount of added (self only) pension is credited to the active member’s account in the relevant scheme year.

(3) The amount credited to the account is an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the amount of the lump sum payment.

Amount of added (all beneficiaries) pension (lump sum payment)

24

(1) This paragraph applies if an employer or third party opts to pay a lump sum to increase the member’s added (all beneficiaries) pension.

(2) On payment of the lump sum by the employer or third party an amount of added (all beneficiaries) pension is credited to the active member’s account in the relevant scheme year.

(3) The amount credited to the account is an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the amount of the lump sum payment.

PART 3 — Effective pension age payments

CHAPTER 1 — Exercising the effective pension age option

Effective pension age option exercisable by the member

25

(1) This paragraph applies if an active member of this scheme in relation to a continuous period of pensionable service has a normal pension age above 65 years.

(2) Subject to sub-paragraphs (3) and (4), the member may opt to make periodical payments for an effective pension age of 1, 2 or 3 years below the member’s normal pension age (“effective pension age option”).

(3) An effective pension age option may not be exercised to achieve an effective pension age below 65 years.

(4) The member may opt to make periodical payments for an effective pension age of any period up to 3 years below the member’s normal pension age if that would achieve an effective pension age of 65 years.

(5) An effective pension age is—

(a) relative to normal pension age; and

(b) automatically adjusted to reflect any change in normal pension age.

Exercising the effective pension age option

26

(1) A member may exercise an effective pension age option by notice to the scheme manager in any form the scheme manager may require (“the option notice”).

(2) The option notice must state the effective pension age which is to apply under the option.

(3) A member may exercise an effective pension age option more than once.

(4) A member may not exercise an effective pension age option during—

(a) a period of assumed pay; or

(b) any scheme year in which the member has reached the overall limit of extra pension for that year.

Payment of pension at effective pension age

27

(1) For any part of a scheme year in which a member makes periodical payments for an effective pension age option, the member is entitled to payment of a full retirement earned pension or partial retirement earned pension attributable to the option at the effective pension age stated in the option without actuarial reduction.

(2) The amount of pension attributable to the option is reduced if the periodical payments are stopped before the end of the periodical payment period.

(3) For any period in which the periodical payments are stopped, an amount of standard earned pension is credited to the active member’s account instead of an amount of earned pension attributable to the option.

Member ceases to be in pensionable service under this scheme

28

(1) An effective pension age option in relation to a continuous period of pensionable service under this scheme ceases to have effect when the member ceases to be in that pensionable service.

(2) Periodical payments cease to be payable from the member’s last day of pensionable service.

(3) In the circumstances provided for in regulation 139(2), the member is entitled to a refund under that regulation of the periodical payments.

(4) If the member re-enters pensionable service under this scheme after a gap in pensionable service not exceeding 5 years, the periodical payments resume in the first pay period after the member re-enters pensionable service unless—

(a) the periodical payments have been refunded to the member under regulation 139; or

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.