Introduction
Section 16: Introduction
87.Subsection (1) defines the three main concepts in this Part of the Act.
88.The first concept is “qualifying member of the Royal Mail Pension Plan (“RMPP”. This means a group of persons who are or have been members of the Royal Mail Pension Plan (“RMPP specified by the Secretary of State by an order under this Part.
89.The second concept is “qualifying time”. This is the cut off date by reference to which it is determined what rights or entitlements under the Royal Mail Pension Plan (“RMPP scheme are “qualifying accrued rights”.
90.The third concept is “qualifying accrued rights”. These are the entitlements under the Royal Mail Pension Plan (“RMPP scheme that may be transferred to the new scheme under section 17. Qualifying accrued rights will cover
rights of qualifying members or their beneficiaries to future benefits under the Royal Mail Pension Plan (“RMPP;
rights of qualifying members or their beneficiaries to the current payment of a pension, or other benefit.
91.Subsection (2) provides that “qualifying accrued rights” exclude money purchase benefits, but include other benefits related to additional voluntary contributions (for example those relating to the purchase of added years of service), and also include pension credit rights, which are pension rights provided to the ex-spouse of a member if that member’s pension benefit is divided between them pursuant to a pension sharing order on divorce.
92.Subsection (3) provides that, if “qualifying members” include members who are in service after the qualifying time, their “qualifying accrued rights” will be calculated as if they had left the scheme at the qualifying time. So, in the case of current or active (rather than retired) members, the right that is transferred is to be calculated by reference to service up to the qualifying time and by reference to the member’s salary at or near the qualifying time, in accordance with the Royal Mail Pension Plan (“RMPP rules. If further rights accrue in respect of service before the qualifying time (e.g. where the pension is linked to the member’s final salary), amendments to the Royal Mail Pension Plan (“RMPP scheme will make it clear that these further rights will remain in the Royal Mail Pension Plan (“RMPP scheme. The Secretary of State has power to amend the Royal Mail Pension Plan (“RMPP scheme under section 19 to achieve this.
