The Judicial Pensions Regulations 2022

Amendment to the Public Service Pensions Act 2013 (Judicial Offices) Order 2015

131

• (1) In article 3 of the Public Service Pensions Act 2013 (Judicial Offices) Order 2015⁴⁷ (“the Judicial Offices Order”), for “the Schedule” substitute “Schedule 1 or Schedule 2”.

• (2) The Schedule to the Judicial Offices Order is amended as follows—

• (a) after the entry for “Chair of the Health Service Products (Pricing, Cost Control and Information) Appeals Tribunal holding office on or after 1st April 2021” insert the following entries—

Chair of the Police Appeals Tribunal”; “Chair of the Plant Varieties and Seeds Tribunal

• (b) after the entry for “Master of the Rolls” insert the following entries—

Member of a panel constituted under Article 7(1) of the Social Security (Northern Ireland) Order 1998 who is appointed to serve as a member of that panel and is a barrister or solicitor”; “Member of a panel of chairmen appointed under Article 82 of the Fair Employment and Treatment (Northern Ireland) Order 1998”; “Member of a panel of chairmen appointed under regulation 4(1)(a) of the Industrial Tribunals (Constitution and Rules of Procedure) Regulations (Northern Ireland) 2005

• (c) after the entry for “Other member of the Upper Tribunal, where the office is held by a person who sits as a Chairman in the Lands Chamber and is a Member or Fellow of the Royal Institution of Chartered Surveyors holding office on or after 1st April 2021” insert the following entries—

Part-time Sheriff (Scotland)”; “Part-time Stipendiary Magistrate (Scotland)”; “Part-time Summary Sheriff (Scotland)”; “President of appeals tribunals (within the meaning of Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998) appointed under Article 6 of that Order

• (d) after the entry “President of the Welsh Tribunals holding office on or after 1st April 2021” insert the following entries—

President or other member of the Lands Tribunal where that office is held on a salaried basis”; “President or Vice-President of the Industrial Tribunals and Fair Employment Tribunal appointed under Article 82 of the Fair Employment and Treatment (Northern Ireland) Order 1998

• (e) for the entry for “President or Chairman of the Special Educational Needs Tribunal for Wales” substitute—

President or member of the legal chair panel of the Education Tribunal for Wales

• (f) after the entry for “Temporary High Court Judge (Northern Ireland)” insert—

Temporary Judge (Scotland)

• (3) The existing Schedule to the Judicial Offices Order is renamed “Schedule 1”.

• (4) After Schedule 1 to the Judicial Offices Order, as so renamed, insert the Schedule set out in Schedule 2 to these Regulations.

Information to be provided by employers

132

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 Lord Chancellor to fulfil any obligations on the scheme manager or Lord Chancellor set out in or under legislation.

Financial provision

133

Any pension or lump sum payable under this scheme to or in respect of a person who has held an office specified in Part 1 of Schedule 1 to the Judicial Pensions and Retirement Act 1993⁴⁸ is to be charged on, and paid out of, the Consolidated Fund.

Transitional provisions

134

Schedule 1 has effect.

Sitting in retirement offices

135

Schedule 2 has effect.

Modifying provisions and amendments

136

Schedule 3 has effect.

SCHEDULE 1 — Transitional provisions

PART 1 — General

Interpretation

1

In this Schedule—

• “closing date”, in relation to a transition member, means 31st March 2022⁴⁹;

• “transition date”, in relation to a transition member, means the day after the closing date;

• “transition member” means a person— who is a member of a pre-2022 scheme by virtue of the person’s pensionable service under that scheme before the transition date; and who is a member of this scheme by virtue of the person’s pensionable service under this scheme.

Meaning of “continuity of service”

2

• (1) A transition member (T) has continuity of service between pensionable service in a pre-2022 scheme and pensionable service in this scheme (“continuity of service”) unless T has a gap in service exceeding 5 years which—

• (a) begins on or before the transition date; and

• (b) ends on the day on which T becomes an active member of this scheme.

• (2) In this paragraph a reference to “pensionable service” in relation to the Fee-Paid Judges Scheme is a reference to qualifying judicial service.

Commencement of active membership of this scheme

3

• (1) A person who is a transition member on entering pensionable service under this scheme who does not have continuity of service becomes an active member of this scheme on the day the person is appointed to qualifying judicial office.

• (2) A person who is a transition member on entering pensionable service under this scheme who has continuity of service (T) becomes an active member of this scheme—

• (a) if T is in pensionable service in a qualifying judicial office on the transition date, on that date; or

• (b) if T is not in pensionable service in a qualifying judicial office on the transition date, on the day T enters pensionable service in a qualifying judicial office after that date.

PART 2 — Payment of ill-health benefits to transition members with continuity of service

Transition member who has not reached normal pension age under a pre-2022 scheme

4

• (1) This paragraph applies to a transition member with continuity of service who becomes entitled to an ill-health pension under this scheme and a pre-2022 scheme.

• (2) If the member is entitled under this scheme and a pre-2022 scheme to immediate payment of an ill-health pension, the annual rate of that ill-health pension is, subject to sub-paragraph (3), the sum of—

• (a) the annual rate of an ill-health pension under the pre-2022 scheme; and

• (b) the annual rate of an ill-health pension under this scheme.

• (3) Where a member is entitled to immediate payment of an ill-health pension, payment of any enhancement in respect of the member’s assumed period of pensionable service is not payable under a pre-2022 scheme.

• (4) In this paragraph, “the member’s assumed period of pensionable service” means the period—

• (a) beginning with the day after the day on which the member’s continuous period of pensionable service ceased; and

• (b) ending with—

• (i) for a member appointed for a fixed term, the day on which that term ends; or

• (ii) for all other appointments, the day before the day on which the member will reach prospective normal pension age (assuming that the member lives until that age).

• (5) In this paragraph a reference to “pensionable service” in relation to the Fee-Paid Judges Scheme is a reference to qualifying judicial service.

PART 3 — Payment of death benefits in respect of transition members with continuity of service

Annual rate of surviving adults’ pensions payable under this scheme when a transition member dies in service

5

• (1) This paragraph applies in relation to a transition member with continuity of service—

• (a) who dies as an active member of this scheme; and

• (b) whose period of service is at least 12 months.

• (2) Where there is an entitlement under this scheme and a pre-2022 scheme to a surviving adult’s pension, the annual rate of that pension is, subject to sub-paragraph (3), the sum of—

• (a) the amount of dependant’s earned pension calculated under regulation 84 (annual rate of surviving adult’s pensions payable on death of active member (death in service)) at the date of death; and

• (b) the amount of the equivalent surviving adult’s pension payable under the pre-2022 scheme.

• (3) Where there is an entitlement to a surviving adult’s pension, the payment of any enhancement in respect of the member’s assumed period of pensionable service is not payable under a pre-2022 scheme.

• (4) In this paragraph—

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

• “period of service” means— the member’s continuous period of pensionable service under this scheme; and the member’s pensionable service under a pre-2022 scheme before the closing date.

• (5) In this paragraph a reference to “pensionable service” in relation to the Fee-Paid Judges Scheme is a reference to qualifying judicial service.

Annual rate of eligible child’s pension payable under this scheme when a transition member dies in service

6

• (1) This paragraph applies in relation to a transition member with continuity of service—

• (a) who dies as an active member of this scheme; and

• (b) whose period of service is at least 12 months.

• (2) The annual rate of child’s pension payable is, subject to sub-paragraph (3), the sum of—

• (a) the annual rate of child’s earned pension calculated under regulation 89 (annual rate of eligible child’s pension); and

• (b) the annual rate of child’s pension payable under the pre-2022 scheme.

• (3) Where a child’s pension is payable, the payment of any enhancement in respect of the member’s assumed period of pensionable service is not payable under a pre-2022 scheme.

• (4) In this paragraph—

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

• “period of service” means— the member’s continuous period of pensionable service under this scheme; and the member’s pensionable service under a pre-2022 scheme before the closing date.

• (5) In this regulation a reference to “pensionable service” in relation to the Fee-Paid Judges Scheme is a reference to qualifying judicial service.

Death in service lump sum

7

• (1) This paragraph applies in relation to a transition member with continuity of service who dies in service within the meaning of regulation 97 (payment of lump sum death benefit to nominees or personal representatives).

• (2) On the death of the member—

• (a) a lump sum death benefit is payable under regulation 97; but

• (b) a death in service lump sum death benefit is not payable under a pre-2022 scheme.

Death out of service lump sum

8

• (1) For the purpose of payment of death benefits, a transition member with continuity of service who dies as a deferred member or pensioner member of this scheme dies out of service under this scheme and a pre-2022 scheme.

• (2) On the death of such a member—

• (a) if regulation 103 (amount payable on death of deferred member or pensioner member (death out of service)) applies to the member, a lump sum death benefit is payable under that regulation; and

• (b) if the member is a pensioner member of a pre-2022 scheme and the conditions for payment of a death out of service lump sum death benefit under the rules of the pre-2022 scheme are met, a death out of service lump sum death benefit is payable under that scheme.

PART 4 — Transitional provisions relating to pre-2022 scheme

Pensionable service under pre-2022 scheme

9

• (1) This paragraph applies in relation to a transition member with continuity of service (T) who is in pensionable service under this scheme.

• (2) In determining whether T qualifies under a pre-2022 scheme for retirement benefits, T’s pensionable service under that scheme is to be treated as terminating when T’s pensionable service under this scheme terminates;

• (3) In determining T’s final salary for any purposes of a pre-2022 scheme under Schedule 7 (final salary link) to the Act, pensionable earnings derived from service under this scheme are to be regarded as derived from service under a pre-2022 scheme; and

• (4) Where T has a working pattern or patterns involving a pro rata reduction in salary as at the date when they cease pensionable service in this scheme, T’s final salary for a pre-2022 scheme is to be calculated by reference to their full-time equivalent final salary, or to the proportion or proportions of their full-time equivalent final salary appropriate to T’s working pattern as at the closing date.

Repayment of contributions under pre-2022 scheme

10

If a transition member with continuity of service (T) opts out of this scheme and T has less than 2 years’ qualifying service, T must be repaid T’s member’s contributions under a pre-2022 scheme.

Qualifying for retirement benefits under the pre-2022 scheme

11

In determining whether a transition member with continuity of service (T) qualifies for retirement benefits under a pre-2022 scheme, T’s qualifying service includes the total of—

• (a) T’s qualifying service under a pre-2022 scheme; and

• (b) T’s qualifying service under this scheme.

Nomination under the pre-2022 scheme continues to have effect

12

• (1) This paragraph applies if a transition member with continuity of service (T) has not nominated a person under these Regulations to receive a lump sum death benefit under this scheme.

• (2) An existing nomination has effect as if made under these Regulations until T makes a nomination under these Regulations.

• (3) In this paragraph, “existing nomination” means a nomination which—

• (a) was made for the purpose of a pre-2022 scheme; and

• (b) as at the closing date, had effect under that scheme.

Pre-commencement contributions

13

Regulation 58(4) (payment of pre-commencement contributions amount) of the FPJR 2017 applies with the modification that for the words in sub-paragraph (b) from “where P dies before retiring” to the end there is substituted “if applicable, the death in service lump sum payable under regulation 102 in the Judicial Pensions Regulations 2022.”.

PART 5 — Transitional provisions relating to the 2015 scheme

Deferred members of the 2015 scheme

14

• (1) This paragraph applies to a transition member with continuity of service (T) who—

• (a) is a member of the 2015 scheme by virtue of T’s pensionable service under that scheme before the transition date; or

• (b) is deemed to have been an active member of the 2015 scheme by virtue of regulations 38A(2) or 38B(2) of, or paragraphs 23A(2) or 23B(2) of Schedule 1 to, the 2015 Regulations.

• (2) Subject to sub-paragraph (3), T is deemed to be an active member of the 2015 scheme until T becomes a deferred or pensioner member of this scheme.

• (3) T is not required to make any member contributions in the 2015 scheme after the transition date.

• (4) If T re-enters pensionable service under this scheme after a gap in service not exceeding 5 years, T ceases to be a deferred member of the 2015 scheme.

SCHEDULE 2 — Sitting in Retirement offices

SCHEDULE 3 — Modifying provisions and amendments

PART 1 — Modification of early leaver and other provisions

Application of this Part

1

• (1) This Part applies where a person (P)—

• (a) is a member of an existing scheme listed in paragraphs 2 to 15 of Schedule 5 (existing pension schemes) to the Act, whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 (final salary link) to the Act;

• (b) is a member of this scheme by virtue of pensionable service under this scheme; and

• (c) is a person to whom paragraph 1 or 2 of Schedule 7 to the Act applies by virtue of that person’s pensionable service for this scheme, and whose final salary falls for the purposes of the old scheme to be determined by reference to that paragraph.

• (2) This Part also applies where a person (P)—

• (a) is a member of the Fee-Paid Judges Scheme by virtue of pensionable service under that scheme;

• (b) is a member of this scheme by virtue of pensionable service under this scheme; and

• (c) P’s service in the Fee-Paid Judges Scheme and service in the new scheme are continuous.

• (3) In this Part “the old scheme” means a scheme referred to in sub-paragraph (1)(a) or (2)(a) of which P is a member.

Preservation of benefit

2

• (1) Chapter 1 of Part 4 of the PSA 1993 (protection for early leavers: preservation of benefit) is modified as follows in relation to P.

• (2) In the application of that Chapter to the old scheme—

• (a) in section 70⁵⁰ (interpretation), in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or this scheme, as appropriate in the relevant contexts;

• (b) in section 71(1) (basic principle as to short service benefit)—

• (i) the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or this scheme must make that provision;

• (ii) a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to this scheme;

• (iii) a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service under this scheme;

• (iv) a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under this scheme, and subsequent references in the Chapter to “short service benefit” are to be construed accordingly;

• (c) in section 71(5), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service under this scheme;

• (d) in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either under the old scheme or under the old scheme and this scheme taken together; and

• (e) in sections 72(2) (no discrimination between short service and long service beneficiaries), 74(6) and (7) (computation of short service benefit), 75(3) and (4) (credits) and 76(1) and (3) (pension increases), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service under this scheme.

• (3) In the application of that Chapter to this scheme—

• (a) in section 70, in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or this scheme;

• (b) in section 71(1)—

• (i) the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or this scheme must make that provision;

• (ii) a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to this scheme;

• (iii) a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under this scheme, and subsequent references in the Chapter to “short service benefit” are to be construed accordingly;

• (c) in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either under this scheme or under the old scheme and this scheme taken together; and

• (d) in section 74(6), in relation to pensionable service which is terminated, the reference to the beginning of that service is to be taken as a reference to the beginning of pensionable service under the old scheme.

Revaluation of preserved benefit

3

• (1) Chapter 2 of Part 4 of the PSA 1993 (protection for early leavers: revaluation of accrued benefits) is modified as follows.

• (2) In the application of Chapter 2 for the purpose of revaluing benefit payable to or in respect of P under the old scheme—

• (a) in section 83(1)(a)(ii)⁵¹ (scope of Chapter 2), the reference to the date on which P’s pensionable service ends is to be taken as a reference to the date on which P’s pensionable service ends under this scheme; and

• (b) subsequent references in that Chapter to “the termination date” and the “pre-pension period” are to be construed accordingly.

PART 2 — Amendments

Amendments to the Judicial Pensions Regulations 2015

4

• (1) The 2015 Regulations are amended as follows.

• (2) In regulation 9(2) (scheme advisory board: establishment), after “making changes to this scheme” insert “and the scheme established by the Judicial Pensions Regulations 2022”.

• (3) For regulation 41(2) (closure of active member’s account) substitute—

(2) The scheme manager must re-establish an active member’s account under this Chapter when the scheme manager closes a deferred member’s account under regulation 46.

• (4) Omit regulation 49 (closure of full retirement account).

• (5) In regulation 56(1)(b) (entitlement to full retirement pension) for “pensionable service under this scheme” substitute “qualifying judicial office”.

• (6) After regulation 56(6) insert—

(7) Where P resumes service in qualifying judicial office, this will not affect any entitlement under this regulation.

• (7) Omit regulation 59 (full retirement pension ceases to be payable).

• (8) In regulation 60 (exercise of partial retirement option)—

• (a) in paragraph (1)(c), for “annual rate” substitute “amount”,

• (b) in paragraph (2), after “part only of P’s accrued pensions” insert—

in respect of a particular office

, and

• (c) after paragraph (3), insert—

(4) Where P holds more than one judicial office— (a) P may exercise a partial retirement option separately in relation to each office held; and (b) P may only access the pension accrued in relation to the particular office or offices in respect of which P is exercising the partial retirement option. (5) For the purposes of calculating P’s annual pensionable earnings in relation to paragraph (1)(c) where P is a fee-paid office holder, the amount of pensionable earnings that P receives in respect of a particular office is calculated as follows— Z per annum, where: - [image omitted] where— - J means the total fee-paid income in respect of that office over the preceding three years, or, if less than three years, over the period since P was first appointed to that office; K means the lesser of— (a) 3; or (b) the period in years (and a fraction of a year, determined by complete months) from the first sitting day in that particular office until the date of partial retirement, “complete month” includes an incomplete month that consists of at least 16 days; and Z means the annualised total of fees from that particular office. (6) Where P holds multiple assignments within the First-tier Tribunal or the Upper Tribunal— (a) the reduction in earnings in paragraph (1)(c) refers to service in each chamber of the relevant tribunal; and (b) in paragraph (5) references to an office are to be taken as references to an assignment to a tribunal chamber.

• (9) In regulation 61 (partial retirement option notice)—

• (a) in paragraph (2)(a)(i) after “pensions” insert—

to which the office relates

, and

• (b) in paragraph (2)(a)(ii) after “pensions” insert—

to which the office relates

, and

• (c) at the end of paragraph (2)(b) insert—

, and (d) if P holds more than one office, the office or offices in respect of which P is exercising the partial retirement option.

• (10) In regulation 64 (annual rate of partial retirement pension) at the end of paragraph (1) insert “in the office from which P is taking partial retirement.”.

• (11) In regulation 65 (annual rate of full retirement pension) at the end of paragraph (1) insert “in the office from which P is taking partial retirement.”.

• (12) Omit regulation 144 (appointment of scheme actuary and actuarial valuations)⁵².

• (13) After regulation 167 insert—

• Financial provision (168) (1) Except as otherwise provided in this regulation, any pension or lump sum payable under this scheme to or in respect of a person who has held an office specified in Part 1 of Schedule 1 to the Judicial Pensions and Retirement Act 1993 is to be charged on, and paid out of, the Consolidated Fund. (2) Paragraph (1) does not apply in relation to any pension or other benefits payable in respect of— (a) payments for added pension or effective pension age; (b) special payments to buy out the early payment reduction; (c) a transferred pension; (d) a partnership pension account. (3) This regulation is treated as having come into force on 1st April 2015.

Amendments to the Judicial Pensions (Additional Voluntary Contributions) Regulations 2017

5

• (1) The Judicial Pensions (Additional Voluntary Contributions) Regulations 2017⁵³ are amended as follows.

• (2) In regulation 2 (interpretation)—

• (a) in the appropriate places, insert—

• “the 2022 Regulations” means the Judicial Pensions Regulations 2022;

• “the 2022 Scheme” means the Judicial pension scheme created by the 2022 Regulations;

; and

• (b) in the definition of “active member”, insert at the end “or the 2022 scheme”.

Signed

We consent to the making of these Regulations

Michael Tomlinson — Alan Mak — Two of the Lord Commissioners of Her Majesty’s Treasury — 16th March 2022

Dominic Raab — Lord Chancellor — Ministry of Justice — At 9.21 a.m. on 17th March 2022

Alister Jack — Secretary of State — Scotland Office — 16th March 2022

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

Part 2 of these Regulations establishes a scheme for the payment of pensions and other benefits to members of the judiciary. The scheme so established is a career average revalued earnings scheme.

Part 3 contains governance provisions, including the responsibilities of the scheme manager and the delegation of the scheme manager’s functions.

Part 4 provides for scheme membership. It sets out the key concepts of qualifying judicial office and pensionable earnings. It contains eligibility and enrolment provisions.

Part 5 provides for the establishment of a member’s pension accounts in relation to a continuous period of pensionable service under this scheme. It also provides for the establishment of a pension credit member’s account.

Chapter 1 explains how adjustments to amounts of accrued pension are calculated.

Chapter 2 explains how the amount of accrued pension is calculated.

Chapter 4 provides for the establishment of the active member’s account. This Chapter shows how the proportion of pensionable earnings accrued as pension is revalued each year until the member leaves pensionable service.

Chapter 5 provides for the establishment of the deferred member’s account and explains how the provisional amount of each description of deferred pension is calculated.

Chapter 6 provides for the establishment of a full retirement account is established and sets out how the amount of full retirement pension must be specified.

Chapter 7 provides for the establishment of a partial retirement account is established in respect of a particular office held, and sets out how the amount of partial retirement pension must be specified.

Chapter 8 provides for the establishment of a pension credit member’s account.

Part 6 provides for a member’s entitlement to payment of retirement benefits including partial retirement benefits and ill-health benefits. It also provides for the allocation of benefits. It sets out the key concept of qualifying service.

Part 7 provides for benefits for pension credit members.

Part 8 provides for death benefits payable to surviving adults and eligible children and for the payment of lump sums. It provides for payments to be stopped and recovered in certain cases.

Part 9 provides for the payment of contributions by members and employers.

Part 10 provides for making transfer value payments.

Part 11 provides for actuarial valuations and the employer cost cap.

Part 12 contains supplementary provisions on payment of pensions, forfeiture and set off, payment and deduction of tax and miscellaneous provisions including the determination of questions.

Schedule 1 contains transitional provisions, including the key concepts of transition members and continuity of service. It provides for ill-health benefits and death benefits for transition members with continuity of service.

Schedule 2 contains the list of specified Sitting in Retirement offices which are created under section 123 of the Public Service Pensions and Judicial Offices Act 2022 (c. 7) and are added as Schedule 2 to the Public Sector Pensions Act 2013 (Judicial Offices) Order 2015 (S.I. 2015/580 as amended).

Schedule 3 modifies provisions of the Pension Schemes Act 1993 (c. 48). It also amends the Judicial Pensions Regulations (S.I. 2015/182 as amended), the Judicial Pensions (Additional Voluntary Contributions) Regulations 2017 (S.I. 2017/512) and the Judicial Pensions (Fee-Paid Judges) Regulations 2017 (S.I. 2017/522 as amended).

An impact assessment has not been prepared for this instrument as no impact on the costs of business or the voluntary sector is foreseen.

Footnotes

Editorial notes