PART 1 E+WGeneral
Interpretation of ScheduleE+W
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;
“” means the amount of accrued earned pension attributable to a faster accrual election;
“” 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
“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.
Meaning of “amount of extra pension”E+W
2. The amount of extra pension for a person (P) at any given time is the sum of the following—
(a)the amount of accrued extra earned pension (if any) at that time;
(b)the amount of accrued additional pension (if any) at that time;
(c)the buy-out value at that time, if P has elected to buy out the standard reduction.
Meaning of “overall amount of extra pension”E+W
3.—(1) The overall amount of extra pension is—
(a)£6,500 for any financial year ending before 1st April 2016; and
(b)for any financial year beginning on or after that date—
(i)an amount determined by the Treasury for that financial year; or
(ii)if the Treasury has not determined an amount for that financial year, the amount calculated under sub-paragraph (2).
(2) If the Treasury has not determined an amount under sub-paragraph (1)(b)(i) for any financial year, the overall amount for that financial year is the amount to which the annual rate of a pension of an amount equal to the overall amount for the previous financial year would have been increased under PIA 1971 [rounded to the nearest £100,] 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 financial year.
Limit on electionsE+W
4.—(1) The scheme manager must not accept an additional pension election or a faster accrual election in relation to a member (P) at any time if—
(a)the scheme manager has accepted a buy-out election from P; and
(b)the buy-out value at that time exceeds the overall amount of extra pension at that time.
(2) The scheme manager must not accept an additional pension election or a faster accrual election that would result in the amount of extra pension exceeding the overall amount of extra pension.
Actuarial adviceE+W
5. The scheme manager must take advice from the scheme actuary before determining any amount under this Part.