The Public Service (Civil Servants and Others) Pensions Regulations 2014

CHAPTER 2 Full retirement benefits

Entitlement to full retirement pension

60.—(1) A member of this scheme (P) is entitled to the immediate payment for life of a full retirement earned pension if—

(a) P has reached normal minimum pension age;

(b) P has ceased to be in pensionable service under this scheme; and

(c) P has claimed payment of a full retirement pension.

(2) But if P has not reached normal pension age under this scheme, P is not so entitled unless—

(a) P has at least 2 years’ qualifying service;

(b) a transfer payment otherwise than from another occupational pension scheme has been received by this scheme in relation to P; or

(c) the employment of the member was transferred without the member’s consent to a new employer and on that transfer the member ceased to be eligible to be an active member of this scheme.

(3) On becoming entitled to the immediate payment for life of a full retirement earned pension, P is entitled to the immediate payment for life of a full retirement added pension of any description as follows—

(a) for an active member who becomes a pensioner member, if the full retirement account specifies an amount of full retirement added pension of that description;

(b) for a deferred member who becomes a pensioner member, if the deferred member’s account specifies a provisional amount of the relevant deferred added pension.

(4) The claim for payment of a full retirement pension may only be made by notice to the scheme manager in a form required by the scheme manager.

(5) A claim for a full retirement pension to be paid before P reaches normal pension age under this scheme must state if any of the following applies—

(a) P has opted to buy out the early payment reduction;

(b) P has exercised an effective pension age option;

(c) P has exercised an enhanced effective pension age option.

(6) In this regulation, “relevant deferred added pension” means—

(a) for a full retirement added (self only) pension, a deferred added (self only) pension;

(b) for a full retirement added (all beneficiaries) pension, a deferred added (all beneficiaries) pension.

Annual rate of full retirement pension (active members)

61.—(1) This regulation applies when an active member of this scheme becomes entitled to the immediate payment of a full retirement pension.

(2) The annual rate of any description of a full retirement pension payable to the member is calculated by—

(a) taking the amount of that description of full retirement pension specified in the full retirement account;

(b) subtracting the early payment reduction (if any) specified in that account in relation to that amount;

(c) subtracting the commutation amount (if any) specified in that account in relation to that amount; and

(d) subtracting the total allocation amount (if any) specified in that account in relation to that amount.

(3) The annual rate of any description of full retirement pension is calculated without subtracting the early payment reduction if the member buys out the early payment reduction in relation to that description of full retirement pension.

Annual rate of full retirement pension (deferred members)

62.—(1) This regulation applies when a deferred member of this scheme becomes entitled to the immediate payment of a full retirement pension.

(2) The annual rate of any description of full retirement pension payable to the member is calculated by—

(a) taking the provisional amount of the relevant description of deferred pension specified in the deferred member’s account;

(b) adding the late payment supplement (if any) specified in that account in relation to that provisional amount;

(c) subtracting the early payment reduction (if any) specified in that account in relation to that amount;

(d) subtracting the commutation amount (if any) specified in that account in relation to that amount; and

(e) subtracting the total allocation amount (if any) specified in that account in relation to that amount.

(3) The annual rate of any description of full retirement pension is calculated without subtracting the early payment reduction if the member buys out the early payment reduction in relation to that description of full retirement pension.

(4) In this regulation, “the relevant description of deferred pension” means—

(a) for a full retirement standard earned pension, deferred standard earned pension;

(b) for a full retirement earned pension attributable to an effective pension age option or an enhanced effective pension age option, deferred earned pension attributable to that option;

(c) for a full retirement club transfer earned pension, deferred club transfer earned pension;

(d) for a full retirement added (self only) pension, deferred added (self only) pension; and

(e) for a full retirement added (all beneficiaries) pension, deferred added (all beneficiaries) pension.

Full retirement pension ceases to be payable

63.—(1) A full retirement pension ceases to be payable to a member who re-enters pensionable service under this scheme within 28 days after the last day of the service in relation to which the pension was payable.

(2) If paragraph (1) applies in relation to a member—

(a) the scheme manager must—

(i) cease to pay the pension; and

(ii) recover any payment of pension or lump sum made;

(b) the full retirement account must be closed; and

(c) the active member’s account must be re-established under Part 5 (pension accounts) and treated as if it had never been closed.