SCHEDULE 2Scheme flexibilities

PART 1General

Interpretation of Schedule

1.

In this Schedule—

additional pension contributions” means contributions for an additional pension;

additional pension election” means an election under Chapter 1 of Part 2 of this Schedule;

amount of accrued extra earned pension” means the amount of accrued earned pension attributable to a faster accrual election;

amount of extra pension” has the meaning given in paragraph 2;

buy-out contributions” means contributions to buy out the standard reduction;

buy-out election” means an election under Chapter 1 of Part 4 of this Schedule;

buy-out value” means an amount determined or re-determined by the scheme manager in accordance with Part 4 of this Schedule;

contributions” means—

(a)

additional pension contributions;

(b)

faster accrual contributions; or

(c)

buy-out contributions;

“contributions payment period”, for contributions paid monthly, means the period which—

(a)

begins on the start date; and

(b)

ends on the date on which the final monthly payment is due;

election” means—

(a)

an additional pension election;

(b)

a faster accrual election; or

(c)

a buy-out election;

faster accrual contributions” means contributions for a faster accrual rate;

faster accrual election” means an election under Chapter 1 of Part 3 of this Schedule;

faster accrual rate”, in relation to P's pensionable earnings, means 1/45th, 1/50th or 1/55th;

“monthly payments”, in respect of an election, means contributions paid monthly;

overall amount” means the overall amount of extra pension as defined in paragraph 3;

refund period”, in relation to additional pension contributions, means the period ending one year after the start date;

“start date”—

(a)

for contributions paid by lump sum, means the date on which the scheme manager receives the lump sum; and

(b)

for monthly payments, means the first day of the second month after the month in which the election is accepted.