The Teachers’ Pension Scheme Regulations 2014

Regulations 3 and 14

SCHEDULE 1 Eligible employment

PART 1 General

CHAPTER 1 Interpretation

Interpretation

1.  In this Schedule—

“CA 2006” means the Companies Act 2006(1);

“EA 1996” means the Education Act 1996(2);

“IA 1986” means the Insolvency Act 1986(3);

“NHSA 2006” means the National Health Service Act 2006(4);

“NHSWA 2006” means the National Health Service (Wales) Act 2006(5);

“TPR 2010” means the Teachers’ Pensions Regulations 2010(6);

“TSAVCR 1994” means the Teachers’ Superannuation (Additional Voluntary Contributions) Regulations 1994(7);

“Academy” must be construed in accordance with section 579 of EA 1996;

“best value arrangement” means a contract or other arrangement made with a local authority for the provision of, or the making available of, services for the purposes of, or in connection with, the exercise of an education function of that local authority;

“COBIS” means the Council of British International Schools;

“education functions” must be construed in accordance with section 579 of EA 1996;

“European School” means an establishment satisfying article 2 of the European Communities (European Schools) Order 1972(8);

“function provider” means a body corporate other than a local authority which—

(a)

is specified in a direction under section 497A(4) of EA 1996,

(b)

is nominated under section 497A(4A) of EA 1996 or section 15 of the Local Government Act 1999(9), or

(c)

provides or makes available services under a best value arrangement;

“further education” has the meaning given in section 2(3) of EA 1996;

“guarantee” means—

(a)

in paragraph 2, a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the scheme manager in respect of sums due, under these Regulations and TSAVCR 1994, from the proprietor and from any other person by whom teachers are employed at the establishment;

(b)

in paragraph 3, a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the scheme manager in respect of sums due from the function provider under these Regulations and TSAVCR 1994;

“higher education” has the meaning given in section 120(1) of the Education Reform Act 1988(10);

“non-profit-making body” means a body, the constitution of which—

(a)

requires any surplus income or gains to be invested,

(b)

prohibits the distribution of the assets of the body, in cash or kind, by way of dividend, bonus or otherwise by way of profit to any member of the body or to a third party (other than for charitable purposes), and

(c)

provides for any net assets on the dissolution of the body to be applied for charitable purposes or for the purposes for which the body existed before its dissolution;

“organiser” means a person who performs duties in connection with the provision of education or services ancillary to education other than administrative services;

“proprietor”, in relation to a school or other establishment, means the person or body of persons responsible for the management of the school or other establishment;

“special school” has the meaning given in section 337 of EA 1996; and

“supervisor” means a person employed in a capacity connected with education which to a substantial extent involves the control or supervision of teachers.

Meaning of “accepted school”

2.—(1) An establishment is an accepted school if—

(a) immediately before 1st April 2015 it was an accepted school under regulation 13 of TPR 2010; or

(b) the scheme manager accepts it for the purpose of this paragraph by giving its proprietor a written notice specifying the date on which it becomes an accepted school.

(2) An establishment may be accepted only if—

(a) it is an establishment mentioned in sub-paragraph (3);

(b) its proprietor applies in writing to the scheme manager; and

(c) a guarantee is provided to the scheme manager.

(3) The establishments are—

(a) an independent school (in England) registered under section 99 of the Education and Skills Act 2008(11) or (in Wales) registered under section 161 of EA 2002;

(b) an establishment providing further education constituted by an amalgamation of establishments—

(i) which provided further education before the amalgamation; and

(ii) of which at least one was an accepted school;

(c) a school which is a member of COBIS and is located in a member State(12) other than the United Kingdom;

(d) the establishment which, when teachers were employed there for the purpose of the Ministry of Defence, was known as Welbeck, the Defence Sixth Form College.

(4) The date on which an establishment becomes an accepted school is a date agreed by the scheme manager and the proprietor as follows—

(a) for an establishment mentioned in sub-paragraph (3)(a), (c) or (d), the first day of a month after the month in which the establishment applies to be an accepted school; or

(b) for an establishment mentioned in sub-paragraph (3)(b), the date of the amalgamation.

(5) An establishment accepted by the scheme manager ceases to be an accepted school from the date specified in a written notice given to its proprietor by the scheme manager.

(6) A notice under sub-paragraph (5) may be given if—

(a) the proprietor of the establishment makes a written application to the scheme manager;

(b) the proprietor fails to comply with any provision of these Regulations or of TSAVCR 1994;

(c) the establishment ceases to be an establishment mentioned in sub-paragraph (3);

(d) where a guarantee was previously provided to the scheme manager, either the guarantee lapses, or because of a change in circumstances, the scheme manager considers that the guarantee is insufficient;

(e) where the proprietor of the establishment is an individual or a number of individuals, that individual or one of those individuals is an undischarged bankrupt or is the subject of a bankruptcy restrictions order or an interim order under Schedule 4A to IA 1986(13); or

(f) where the proprietor of the establishment is a company—

(i) a proposal for a voluntary arrangement has been made or approved in relation to the company under Part 1 of IA 1986;

(ii) an administration application has been made or a notice of intention to appoint an administrator has been filed with the court or an administrator has been appointed for the company under Schedule B1 to IA 1986(14);

(iii) a receiver, manager or administrative receiver has been appointed for the company under Part 3 of IA 1986;

(iv) a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been passed in relation to the company under Part 4 or 5 of IA 1986; or

(v) notice has been received that the company may be struck off the register of companies or an application to strike it off has been made under Part 31 of CA 2006.

(7) The proprietor of an accepted school must immediately give written notice to the scheme manager if—

(a) there is a change of proprietor; or

(b) any of the events mentioned in sub-paragraph (6)(e) or (f) occurs.

Accepted function providers

3.—(1) A function provider is accepted under this paragraph in respect of a function or service if the scheme manager gives it a written notice specifying—

(a) that function or service, and the local authority to which the function or service relates; and

(b) the date on which it becomes accepted in respect of that function or service, which must be a date agreed between the scheme manager and the function provider.

(2) A function provider may be accepted only if—

(a) it makes a written application to the scheme manager specifying the function or service in respect of which it wishes to be accepted; and

(b) a guarantee is provided to the scheme manager.

(3) The functions or services in respect of which a function provider may be accepted are—

(a) a function which it performs on behalf of a local authority in accordance with a direction under section 497A(4)(15) of EA 1996;

(b) an education function of a local authority which it is nominated to exercise under section 497A(4A)(16) of EA 1996 or section 15(6) of the Local Government Act 1999(17);

(c) a service which it provides or makes available under a best value arrangement for the purposes of, or in connection with, the exercise of an education function of a local authority.

(4) A function provider who immediately before 1st April 2015 was accepted under regulation 14 of TPR 2010 in respect of a function or service is treated as accepted under this paragraph in respect of that function or service.

(5) A function provider accepted under this paragraph ceases to be so accepted in respect of such functions and services, and from such date, as the scheme manager may specify in a written notice given to the function provider by the scheme manager.

(6) A notice under sub-paragraph (5) may be given if—

(a) the function provider makes a written application to the scheme manager;

(b) the function provider fails to comply with any provision of these Regulations or TSAVCR 1994;

(c) where a guarantee was previously provided to the scheme manager, either the guarantee lapses or because of a change in circumstances the scheme manager considers that the guarantee is insufficient;

(d) a proposal for a voluntary arrangement has been made or approved in relation to the function provider under Part 1 of IA 1986;

(e) an administration application has been made, a notice of intention to appoint an administrator has been filed with the court or an administrator has been appointed for the function provider under Schedule B1 to IA 1986;

(f) a receiver, manager or administrative receiver has been appointed for the function provider under Part 3 of IA 1986;

(g) a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been passed in relation to the function provider under Part 4 or 5 of IA 1986; or

(h) notice has been received that the function provider may be struck off the register of companies or an application to strike it off has been made under Part 31 of CA 2006.

(7) A function provider accepted under this paragraph must give written notice to the scheme manager immediately if any of the events mentioned in sub-paragraph (6)(d) to (h) occurs.

CHAPTER 2 Fair Deal transfers

Interpretation

4.  In this Chapter—

“contracting scheme employer” means an employer mentioned in paragraph 9(c) (governing body of a school maintained by a local authority), 10 (Academy) or 13 (special school not maintained by a local authority) who is a party to a Participation Agreement;

“Fair Deal transfer” means a TUPE transfer of employment described in a Participation Agreement;

“Fair Deal transfer date” means the date on which a Fair Deal transfer has effect;

“guarantee” means a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the scheme manager in respect of sums due from an accepted employer under these Regulations and TSAVCR 1994;

“Participation Agreement” means a contractual agreement between the scheme manager, a contracting scheme employer and an accepted employer relating to participation in this scheme; and

“transferred services” means services specified in the description of employment in the Participation Agreement.

Meaning of “accepted member”

5.—(1) A person (P) is an accepted member of this scheme if sub-paragraphs (2), (3) and (4) apply.

(2) Immediately before the Fair Deal transfer date P was employed—

(a) under a contract of employment and subject to existing Fair Deal arrangements; or

(b) by a contracting scheme employer to undertake eligible employment.

(3) Immediately before and on the Fair Deal transfer date P is employed to undertake the same employment described in a Participation Agreement.

(4) After the Fair Deal transfer date P is employed to undertake employment described in that Participation Agreement.

(5) P ceases to be an accepted member from the date P ceases to satisfy sub-paragraph (1).

Meaning of “accepted employer”

6.  An accepted employer in respect of transferred services is an employer other than an employer mentioned in section 1 of the Local Government Act 1999(18) who—

(a) is a party to a contract for services with a contracting scheme employer under which at least one employee, on and after the fair deal transfer date, is an accepted member;

(b) is a party to a Participation Agreement; and

(c) is not the subject of a written notice of cessation as an accepted employer under paragraph 8(1).

Obligations of an accepted employer

7.  An accepted employer must—

(a) provide the scheme manager with a guarantee if requested by the scheme manager;

(b) give written notice to the scheme manager immediately if any of the events in paragraph 8(2)(c) to (g) occurs.

Ceasing to be an accepted employer

8.—(1) An employer (E) ceases to be an accepted employer on the date specified in a written notice given by the scheme employer under this paragraph.

(2) A notice may be given if—

(a) E fails to comply with any provision of these Regulations or TSAVCR 1994;

(b) the scheme manager considers that a guarantee provided under this Chapter is insufficient because—

(i) the guarantee lapses, or

(ii) there is a change in circumstances;

(c) a proposal for a voluntary arrangement has been made or approved in relation to E under Part 1 of IA 1986;

(d) an administration application has been made, a notice of intention to appoint an administrator has been filed with the court or an administrator has been appointed for E under Schedule B1 to IA 1986(19);

(e) a receiver, manager or administrative receiver has been appointed for E under Part 3 of IA 1986;

(f) a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been passed in relation to E under Part 4 or 5 of IA 1986; or

(g) notice has been received that E may be struck off the register of companies or an application to strike it off has been made under Part 31 of CA 2006.

(3) The Secretary of State may by further written notice to E determine that E resumes accepted employer status with effect from a future date stated in the notice.

PART 2 Service pensionable without election

9.  Teacher employed by—

(a) a local authority in connection with its education functions;

(b) a local authority in a school which the authority maintains;

(c) the governing body of a school maintained by a local authority; or

(d) an institution providing further or higher education (or both) maintained by a local authority.

10.  Teacher employed—

(a) in an Academy, city technology college or a city college for the technology of the arts by the proprietor of such an establishment;

(b) in a 16 to 19 Academy by the proprietor of the Academy;

(c) by a Multi-Academy Trust; or

(d) by the sponsor of a proposed Academy, and in this paragraph “sponsor of a proposed Academy” means any person who approaches the Secretary of State expressing an interest in establishing and maintaining an Academy with a view to creating a charitable company limited by guarantee and which company it is proposed will then enter into an Academy agreement as defined in section 1 of the Academies Act 2010(20).

11.  Teacher employed by the proprietor of, or anyone else concerned in the management of, an accepted school (other than a teacher employed at an accepted school which is a member of COBIS and is located in a member State other than the United Kingdom).

12.  Teacher employed by a function provider in connection with the performance of a function or service in respect of which the function provider is accepted in accordance with paragraph 3 (accepted function providers).

13.  Teacher employed by the proprietor of, or anyone else concerned in the management of, a special school that is not maintained by a local authority.

14.  Teacher employed by the governing body (as defined in section 90 of the Further and Higher Education Act 1992(21)) of an institution—

(a) which is within the further or the higher education sector (as defined in section 91 of that Act); and

(b) to which grants are made by the Secretary of State or the Welsh Ministers, a body to which grants are made by the Secretary of State or the Welsh Ministers, other than—

(i) a university or a college of a university,

(ii) the Royal College of Art, and

(iii) the establishment which, when teachers were employed there for the purposes of the Ministry of Defence, was known as Welbeck, the Defence Sixth Form College.

15.  Teacher employed by a university established on or after 6th May 1992 which, immediately before it became such fell within paragraph 14(a) or (b).

16.  Teacher employed by the proprietor of—

(a) a community home as defined in section 53 of the Children Act 1989(22);

(b) a voluntary home as defined in section 60(23) of that Act; or

(c) a home provided in pursuance of arrangements under section 82(5) of that Act.

17.  Teacher employed by a local authority or by a voluntary organisation in an establishment which provides facilities under arrangements approved under section 66 of the Powers of Criminal Courts (Sentencing) Act 2000(24).

18.  Teacher employed by the Secretary of State or the Welsh Ministers in a special hospital provided by the Secretary of State or the Welsh Ministers under section 4 of NHSA 2006 or section 4 of NHSWA 2006.

19.  Teacher employed for the purpose of instructing, training or superintending the occupation of persons suffering from mental impairment, severe mental impairment, psychopathic disorder or mental illness—

(a) by the Secretary of State or the Welsh Ministers in a hospital provided by the Secretary of State or the Welsh Ministers under NHSA 2006 or NHSWA 2006;

(b) by a voluntary organisation to which financial assistance is given by a local authority or facilities are made available under section 12 of NHSA 2006 or section 10 of NHSWA 2006; or

(c) by a local authority in the exercise of its functions under paragraph 2 of Schedule 20 to NHSA 2006 or paragraph 2 of Schedule 16 to NHSWA 2006.

20.  Teacher employed by the Secretary of State in a European School.

21.  Organiser employed as a youth and community worker by a local authority in the exercise of its functions under sections 15, 507A, 507B(25) or 508 of EA 1996.

22.  Teacher employed by the Field Studies Council.

23.  An accepted member employed by an accepted employer.

PART 3 Service pensionable on election

24.  Teacher employed by the proprietor of an institution for the further education and training of disabled persons.

25.  Teacher, supervisor or youth worker employed for the purposes of the Ministry of Defence in service with, or for purposes connected with, the armed forces of the Crown unless—

(a) service in the employment is pensionable under the Public Service (Civil Servants and Others) Pensions Regulations 2014; or

(b) the teacher, supervisor or youth worker was engaged outside the United Kingdom and was not previously in eligible employment.

26.  Organiser employed by—

(a) a diocesan board of education established under the Diocesan Boards of Education Measure 1991(26);

(b) a body affiliated to the National Open College Network;

(c) a Roman Catholic diocesan schools commission;

(d) the Inspiring Futures Foundation;

(e) the Royal National College for the Blind;

(f) the Stapleford Centre.

PART 4 Service pensionable on election with employer consent

27.  Teacher employed in, or in connection with, an establishment for providing social or physical training for which grants are made by the Secretary of State, Sport England, Sport Wales or UK Sport, whose principal duty is to attend the establishment and provide the training or supervise its provision.

28.  Teacher employed by a person to whom grants are made by either the Secretary of State or a local authority in exercise of education functions in respect of expenditure incurred for the purpose for which the teacher is employed.

29.  Organiser employed by—

(a) Sport England;

(b) Sport Wales;

(c) UK Sport; or

(d) any other person, other than a local authority, to whom grants—

(i) are made by any of those bodies or by a local authority in exercise of education functions; or

(ii) are or have been made by the Secretary of State or the Welsh Ministers,

in respect of expenditure incurred for the purpose for which the organiser is employed.

30.  Organiser employed as a youth and community worker by a body to which grants are made by a local authority in the exercise of its functions under sections 15 or 508 of EA 1996.

31.  Organiser employed by—

(a) Action for Blind People;

(b) the Association of Christian Teachers;

(c) the Association of Business Schools;

(d) the Assessment and Qualification Alliance;

(e) the City and Guilds of London Institute;

(f) the Catholic Education Service;

(g) EMFEC;

(h) the Field Studies Council;

(i) Macmillan Cancer Support;

(j) the North East Religious Learning Resources Centre Limited;

(k) SCOPE.

32.  Teacher employed by a university who was employed by an institution mentioned in paragraph 9(d) or 14 immediately before the institution became part of the university.

33.  Teacher or organiser employed by a body formerly falling within paragraph 28, 29 or 30 which is a non-profit-making body whose principal source of funding is fees paid by a local authority.

34.  Teacher employed by the proprietor of, or anyone else concerned in the management of, an accepted school which is a member of COBIS and located in a member State other than the United Kingdom.

Regulations 3, 46 and 186

SCHEDULE 2 Scheme flexibilities

PART 1 General

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.

Meaning of “amount of extra pension”

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”

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 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 elections

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 advice

5.  The scheme manager must take advice from the scheme actuary before determining any amount under this Part.

PART 2 Additional pension election

CHAPTER 1 Making an additional pension election

Election to pay contributions for additional pension

6.—(1) This paragraph applies in relation to a member of this scheme (P) who—

(a) is in pensionable service under this scheme; and

(b) has not reached normal pension age under this scheme.

(2) P or, with P’s consent, P’s employer may elect to pay contributions for an additional pension in respect of P (“additional pension election”).

(3) An additional pension election—

(a) must state whether the election is for—

(i) an additional (self only) pension; or

(ii) an additional (self only) pension and an additional (surviving adult) pension; and

(b) must specify the annual rate of additional (self only) pension to be paid with P’s retirement pension.

Annual rate of additional (self only) pension

7.  The annual rate of additional (self only) pension specified in an additional pension election must be a multiple of—

(a) £250; or

(b) any other amount determined by the scheme manager.

Lump sum or monthly payments

8.—(1) An employer’s contributions for additional pension must be made by lump sum.

(2) A member’s additional pension contributions may be paid by lump sum or by monthly payments.

Making an additional pension election

9.—(1) An additional pension election by a member (P) must be made by written notice to the scheme manager stating whether additional pension contributions are to be paid—

(a) as a lump sum, or

(b) by monthly payments.

(2) If monthly payments are to be made, the notice must state the number of monthly payments, which—

(a) must not be more than 240; and

(b) must end before P reaches normal pension age under this scheme;

(3) If P is in pensionable service in relation to more than one employment, the notice must specify which employer is to deduct the contributions.

(4) The notice must be accompanied by a declaration by P that P is in normal health.

(5) The scheme manager may ask P or P’s employer to provide further information.

Accepting an additional pension election

10.—(1) The scheme manager may accept an additional pension election by giving written notice to—

(a) the member (P); and

(b) P’s employer.

(2) For the purpose of these Regulations, an additional pension election is accepted when P receives notice from the scheme manager.

CHAPTER 2 Amount of additional pension contributions

Determination of contributions payable

11.—(1) The scheme manager must determine the amount to be paid as a lump sum or as a monthly payment.

(2) The amount of the lump sum or monthly payment must reflect the cost of paying an additional (self only) pension and any additional (surviving adult) pension.

(3) The scheme manager may determine different amounts of lump sum or monthly payment—

(a) for different classes or descriptions of member; and

(b) depending on whether the additional pension election is for—

(i) an additional (self only) pension; or

(ii) an additional (self only) pension and an additional (surviving adult) pension.

(4) The scheme manager—

(a) may determine the amount of a monthly payment by reference to the length of the contributions payment period; and

(b) may exercise the functions under this paragraph so as to re-determine the amount of a monthly payment during the contributions payment period.

(5) Unless the scheme manager re-determines the amount, monthly payments following a gap in service during which an ill-health pension was payable are the same as before the gap.

CHAPTER 3 Additional pension contributions paid by lump sum

Lump sum contributions: payment of contributions and credit of additional pension

12.—(1) This paragraph applies to a member (P)—

(a) in respect of whom an additional pension election is accepted; and

(b) whose notice of election states that contributions are to be paid by lump sum.

(2) P’s additional pension account is to be credited with an amount equal to the annual rate of additional (self only) pension stated in the notice of election (“the amount of additional pension”) if the lump sum contribution is paid within one month after the additional pension election is accepted.

(3) P’s additional pension account is not to be credited with the amount of additional pension unless the lump sum contribution is paid within that time.

Refund of lump sum contribution

13.—(1) This paragraph applies if a member (P) has paid a lump sum contribution for additional pension.

(2) The lump sum contribution must be refunded if, before the end of the refund period—

(a) P dies;

(b) an ill-health pension becomes payable to P; or

(c) P leaves all pensionable service and P is neither qualified nor re-qualified for retirement benefits in respect of that service.

CHAPTER 4 Additional pension contributions by monthly payments

Application of Chapter

14.  This Chapter applies to a member (P)—

(a) in respect of whom an additional pension election is accepted; and

(b) whose notice of election states that contributions are to be paid by monthly payments.

Payment of contributions

15.—(1) P must—

(a) make the first monthly payment on or before the start date; and

(b) continue to make the monthly payments until the date on which the final monthly payment is due.

(2) The contributions payment period must end before P reaches normal pension age.

(3) If the scheme manager re-determines the amount of the monthly payment during the contributions payment period, P must pay the re-determined amount from the beginning of the next financial year.

(4) P is taken to revoke an additional pension election if—

(a) a monthly payment is missed; and

(b) the payment is not made within 3 months after P receives a written demand from the scheme manager.

Member leaves all pensionable service before end of contributions payment period

16.—(1) This paragraph applies if—

(a) P leaves all pensionable service before the end of the contributions payment period; and

(b) P does not pay the scheme manager a lump sum of an amount determined by the scheme manager within the period of 2 months beginning with the last day of pensionable service.

(2) If this paragraph applies—

(a) monthly payments for additional pension cease to be payable at the end of the period of one month beginning with the last day of pensionable service (“the one-month period”); and

(b) the amount of accrued additional pension as at the last day of pensionable service is an amount determined by the scheme manager.

(3) For the purpose of this paragraph, P is not taken to have left all pensionable service if—

(a) during the one-month period, P begins a period of non-pensionable sick leave; and

(b) during the period of non-pensionable sick leave, an ill-health pension becomes payable to P.

Retirement pension (other than ill-health pension) becomes payable before end of contributions payment period

17.—(1) This paragraph applies if any of the following retirement pensions becomes payable to P before the end of the contributions payment period—

(a) an age retirement pension;

(b) a phased retirement pension (if P has elected to receive additional pension with it);

(c) a premature retirement pension;

(d) an early retirement pension.

(2) If this paragraph applies—

(a) monthly payments for additional pension cease to be payable on the entitlement day for that pension; and

(b) the amount of accrued additional pension as at the relevant last day is an amount determined by the scheme manager.

CHAPTER 5 Revocation and refund

Revoking an additional pension election

18.—(1) P may revoke an additional pension election at any time before the end of the contributions payment period.

(2) A revocation must be by written notice to the scheme manager.

(3) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

(4) P is taken to revoke an additional pension election if—

(a) P leaves all pensionable service before the end of the contributions payment period; and

(b) P is qualified or re-qualified for retirement benefits in respect of that service.

(5) On the date of revocation—

(a) monthly payments for additional pension under that election cease to be payable; and

(b) the amount of accrued additional pension as at that date is an amount determined by the scheme manager.

Ill-health pension becomes payable before end of contributions payment period

19.—(1) This regulation applies if an ill-health pension becomes payable to a member (P) before the end of the contributions payment period for an additional pension election.

(2) If an ill-health pension becomes payable to P before the end of the refund period—

(a) any monthly payments that have been made under that additional pension election must be refunded to P; and

(b) the amount of accrued additional pension as at the last day of pensionable service must be adjusted by deducting the amount of accrued additional pension attributable to that election.

(3) If an ill-health pension becomes payable to P after the end of the refund period—

(a) the monthly payments under the additional pension election are treated as being paid until the earlier of—

(i) the end of the contributions payment period for that election; or

(ii) the day on which an ill-health pension ceases to be payable under regulation 114; and

(b) for the purpose of calculating the annual rate of ill-health pension, the amount of accrued additional pension is—

(i) if the declaration that accompanied the additional pension election was made in good faith, the amount of accrued additional pension calculated under regulation 46 or 47 as at the last day of pensionable service; or

(ii) if that declaration was not made in good faith, an amount determined by the scheme manager having regard to the contributions paid or treated as being paid; and

(4) If P re-enters pensionable service when an ill-health pension ceases to be payable under regulation 114, P may choose to resume the monthly payments.

Death in service before end of contributions payment period

20.—(1) This paragraph applies on the death of a member (D)—

(a) whose additional pension election is for an additional (self only) pension and an additional (surviving adult) pension;

(b) who dies in service within the meaning of Part 6 before the end of the contributions payment period for that election.

(2) If D dies before the end of the refund period—

(a) the monthly payments must be refunded to D’s surviving adult; and

(b) the additional pension account must be closed.

(3) If D dies after the end of the refund period—

(a) the monthly payments cease to be payable as at the date of D’s death; and

(b) for the purpose of calculating a survivor’s pension, the amount of accrued additional pension is—

(i) if the declaration that accompanied the additional pension election was made in good faith, the amount of accrued additional pension calculated under regulation 46 or 47 as at the day of D’s death; or

(ii) if that declaration was not made in good faith, an amount determined by the scheme manager having regard to the contributions paid or treated as being paid.

Member leaves all pensionable service before qualifying for retirement benefits

21.—(1) This paragraph applies if a member (P) leaves all pensionable service under this scheme before P is qualified for retirement benefits in respect of that service.

(2) On an application by P for a repayment of the balance of contributions—

(a) any monthly payments made before the last day of pensionable service must be refunded to P; and

(b) the additional pension account must be closed.

PART 3 Faster accrual election

CHAPTER 1 Making the election

Faster accrual election

22.—(1) This paragraph applies to a person (P) who—

(a) is in pensionable service under this scheme in relation to an employment; and

(b) has not reached normal pension age under this scheme.

(2) P may elect, in relation to an employment, to pay contributions to accrue earned pension at a faster accrual rate in any financial year (“faster accrual election”).

(3) A faster accrual election must state the faster accrual rate which is to apply to P’s pensionable earnings in that employment for that financial year.

(4) A faster accrual election must be made—

(a) if P was not in pensionable service in relation to that employment in that financial year, within one month after P enters pensionable service in relation to that employment; or

(b) otherwise, in the financial year before the financial year to which it relates.

(5) A faster accrual election has effect as follows—

(a) if sub-paragraph (4)(a) applies, from one month after the election is received by the scheme manager; or

(b) otherwise, from the start of the financial year to which it relates.

(6) A faster accrual election ceases to have effect at the end of the financial year to which it relates unless it is revoked before then.

Making a faster accrual election

23.—(1) A faster accrual election must be made by written notice to the scheme manager.

(2) The notice of election must specify—

(a) if the member (P) is in more than one eligible employment, the name of the employer who is to deduct the contributions;

(b) P’s name;

(c) P’s date of birth;

(d) P’s annual amount of pensionable earnings for that employment in the financial year to which the faster accrual election relates.

(3) The scheme manager may request further information to be provided.

Accepting a faster accrual election

24.—(1) The scheme manager may accept a faster accrual election by giving written notice to—

(a) the member (P); and

(b) P’s employer.

(2) For the purpose of these Regulations, a faster accrual election is accepted when P receives notice from the scheme manager.

CHAPTER 2 Payment of contributions

Determination of contributions payable

25.  The scheme manager must determine the amount of the monthly payment to be paid in respect of a faster accrual election.

Payment of contributions

26.—(1) A member (P)—

(a) must make the first monthly payment within 2 months after the end of the month in which the faster accrual election is accepted; and

(b) must continue to make the monthly payments until the end of the contributions payment period.

(2) The final monthly payment is due in the last month of the financial year to which the faster accrual election relates.

(3) P is taken to revoke a faster accrual election if—

(a) a monthly payment is missed; and

(b) the payment is not made within 3 months after P receives a written demand from the scheme manager.

CHAPTER 3 Revocation and refund

Revoking a faster accrual election

27.—(1) A member (P) may revoke a faster accrual election at any time before the end of the contributions payment period.

(2) A revocation must be by written notice to the scheme manager.

(3) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

(4) P is taken to revoke a faster accrual election if P leaves pensionable service in the employment to which the election relates before the end of the contributions payment period.

(5) If P revokes or is taken to revoke a faster accrual election and P is not entitled to be repaid the balance of contributions under regulation 189—

(a) P’s monthly payments cease to be payable on the date of revocation; and

(b) P’s active member’s account (or if P has left all pensionable service, P’s deferred member’s account or pensioner member’s account) must be credited with an amount determined by the scheme manager.

(6) If P revokes or is taken to revoke a faster accrual election and P is entitled to be repaid the balance of contributions under regulation 189—

(a) P’s monthly payments cease to be payable on the date of revocation; and

(b) P’s rights under this scheme are extinguished.

Member leaves all pensionable service before qualifying for retirement benefits

28.—(1) This paragraph applies if a member (P) leaves all pensionable service under this scheme before P is qualified for retirement benefits in respect of that service.

(2) On an application by P for a repayment of the balance of contributions, any monthly payments made by P before the last day of pensionable service must be refunded to P.

PART 4 Election to buy out the standard reduction

CHAPTER 1 Making a buy-out election

Eligible to make buy-out election

29.—(1) A member (P) who has a normal pension age over 65 may elect to pay contributions to buy out the standard reduction (“buy-out election”) for a period of up to 3 years.

(2) A buy-out election has effect from the day on which the scheme manager accepts the election.

(3) A buy-out election ceases to have effect when the earliest of the following occurs—

(a) P reaches normal pension age;

(b) a retirement pension other than a phased retirement pension becomes payable to P;

(c) P revokes the election or is taken to revoke the election.

(4) A buy-out election may only be made within 6 months after P enters pensionable service under this scheme.

(5) When making a buy-out election, P must be—

(a) in pensionable service; and

(b) under normal pension age.

(6) P may by written notice to the scheme manager vary a buy-out election if P’s normal pension age changes before a retirement pension becomes payable to P.

Making a buy-out election

30.—(1) A buy-out election made by a member (P) must state the number of years in respect of which the standard reduction is to be bought out.

(2) A buy-out election must be made by written notice to the scheme manager.

(3) The notice of election must specify—

(a) if P is in more than one eligible employment, the name of the employer who is to deduct the contributions;

(b) P’s name;

(c) P’s date of birth;

(d) P’s normal pension age;

(e) the date on which P entered pensionable service;

(f) P’s annual rate of pensionable earnings for that employment.

(4) The scheme manager may ask P to provide further information.

Accepting a buy-out election

31.—(1) The scheme manager may accept a buy-out election by giving written notice to the person who made the election (P).

(2) The notice must state the buy-out value.

(3) A buy-out election is accepted when P receives notice that the scheme manager has accepted the election.

Determination of the buy-out value

32.—(1) The buy-out value is an amount determined by the scheme manager.

(2) If an additional pension election or a faster accrual election is subsequently made in respect of a person (P), the scheme manager may—

(a) re-determine the buy-out value; and

(b) send a written notice to P stating the re-determined buy-out value.

CHAPTER 2 Payment of buy-out contributions

Determination of contributions payable

33.—(1) The scheme manager must determine the amount of the monthly payments to be paid in respect of a buy-out election.

(2) The scheme manager—

(a) may determine the amount of the monthly payments by reference to the number of years stated in the buy-out election and the length of the contributions payment period; and

(b) may exercise the functions under this paragraph so as to re-determine the amount of the monthly payments during the contributions payment period.

(3) Unless the scheme manager re-determines the amount, monthly payments following a gap in service not exceeding 5 years are the same as before the gap.

Payment of buy-out contributions

34.—(1) A member (P) must—

(a) make the first monthly payment within 2 months after the end of the month in which a buy-out election is accepted; and

(b) continue to make the monthly payments until the end of the contributions payment period.

(2) The final monthly payment is due in the month before the buy-out election has effect.

(3) If the scheme manager re-determines the amount of the monthly payment during the contributions payment period, P must pay the re-determined amount from the beginning of the next financial year.

(4) P is taken to revoke a buy-out election if—

(a) a monthly payment is missed; and

(b) the payment is not made within 3 months after P receives a written demand from the scheme manager.

Monthly payments during gap in service

35.—(1) A member (P) who has a gap in service during the contributions payment period may choose to resume monthly payments on re-entering pensionable service.

(2) P is taken to revoke a buy-out election if P’s gap in service exceeds 5 years.

CHAPTER 3 Revocation and refund

Revoking a buy-out election

36.—(1) A member (P) may revoke a buy-out election at any time before the end of the contributions payment period.

(2) If P revokes a buy-out election or is taken to revoke a buy-out election—

(a) P’s monthly payments cease to be payable on the date of revocation; and

(b) when a retirement pension becomes payable to P, the standard reduction applies to such proportion of the maximum three year period referred to in regulation 73 as is determined by the scheme manager.

(3) In determining the proportion, the scheme manager must take into account—

(a) the number of monthly payments made; and

(b) the number of years stated in the buy-out election.

(4) If P revokes the election or is taken to revoke a buy-out election, P may not make a subsequent buy-out election.

(5) A revocation must be by written notice to the scheme manager.

(6) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

Member leaves all pensionable service before qualifying for retirement benefits

37.—(1) This paragraph applies if a member (P) leaves all pensionable service under this scheme before P is qualified for retirement benefits in respect of that service.

(2) On an application by P for a repayment of the balance of contributions, any monthly payments made by P before the last day of pensionable service must be refunded to P.

Regulation 224

SCHEDULE 3 Transitional provisions

PART 1 Interpretation

Interpretation

1.  In this Schedule—

“exception” means an exception to section 18(1) of the Act;

“existing Fair Deal arrangements” means the arrangements by which a person (P) is a member of an occupational pension scheme comparable to the existing scheme and into which P’s employer pays contributions in respect of P, following a TUPE transfer from an employer mentioned in Parts 2, 3 or 4 of Schedule 1;

“existing scheme rules” means the provisions of the existing scheme, an existing club scheme or an existing public service scheme;

“full protection member”, in relation to the existing scheme, has the meaning given in Part 2;

“protected member”, in relation to the existing scheme, means a full protection member or tapered protection member of that scheme;

“protection period”—

(a)

for a full protection member of the existing scheme, has the meaning given in Part 2;

(b)

for a tapered protection member of the existing scheme, has the meaning given in Part 3;

“public service scheme” means a scheme under section 1 of the Act;

“scheme closing date”, in relation to the existing scheme, means 31st March 2015;

“tapered protection member”, in relation to the existing scheme, has the meaning given in Part 3;

“tapered protection closing date” has the meaning given in paragraph 4;

“transition date” means—

(a)

for a tapered protection member of an existing scheme, the day after the tapered protection closing date;

(b)

for a transition member by virtue of the application of paragraph 21 who is not a protected member of an existing scheme, the day after the scheme closing date; and

(c)

for a transition member by virtue of the application of paragraph 22 who is not a protected member of the existing scheme, the day after the Fair Deal transfer date.

Active membership of the existing scheme

2.  For the purpose of Parts 2, 3 and 4 of this Schedule, a person (P) is an active member of the existing scheme on a given date if on that date—

(a) P is in pensionable service under the existing scheme;

(b) P is on a gap in service not exceeding 5 years; or

(c) P is in receipt of an ill-health pension in respect of the existing scheme.

Gap in service after scheme closing date

3.—(1) Sub-paragraph (2) applies—

(a) after the scheme closing date; and

(b) in relation to a member of the existing scheme.

(2) A member (P) is not on a gap in service while P is in pensionable service under an existing scheme.

Meaning of “tapered protection closing date”

4.—(1) The closing date(27) for a tapered protection member of the existing scheme (“tapered protection closing date”) is a date between 31st May 2015 and 31st January 2022 (inclusive) determined by the scheme manager by reference to a table published for that purpose.

(2) The tapered protection closing date must fall on the last day of a month.

Continuity of service

5.—(1) This paragraph applies in relation to a transition member (P) who was a member of the existing scheme or an existing public service scheme before becoming an active member of this scheme.

(2) For the purpose of this Schedule, P has continuity of service unless P has a gap in service exceeding 5 years which—

(a) begins on or before the closing date; and

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

(3) In this paragraph, “closing date” means—

(a) if P is a tapered protection member of the existing scheme, P’s tapered protection closing date; or

(b) otherwise, the scheme closing date.

PART 2 Exceptions for full protection members

Meaning of “full protection member”

6.—(1) A person (P) to whom paragraph 7, 8 or 9 applies is a full protection member of the existing scheme.

(2) P ceases to be a full protection member of the existing scheme when P ceases to be in pensionable service under the existing scheme.

Active members of the existing scheme

7.  This paragraph applies if—

(a) P was an active member of the existing scheme, as defined in Part 1, on the scheme closing date and on 31st March 2012;

(b) a pension, other than a phased retirement pension, has not become payable to P on or after 1^st April 2012; and

(c) unless P dies, P would reach normal pension age under that scheme on or before 1st April 2022.

Active members of an existing public service scheme

8.  This paragraph applies if—

(a) P was an active member of an existing public service scheme on the scheme closing date and on 31st March 2012;

(b) P enters eligible employment not more than 5 years after leaving pensionable service under the existing public service scheme;

(c) a pension in respect of all of P’s service in the existing public service scheme has not become payable on or after 1^st April 2012; and

(d) unless P dies, P would reach normal pension age under the existing scheme and the existing public service scheme on or before 1st April 2022.

Fair Deal members

9.—(1) This paragraph applies if sub-paragraphs (2) and (3) apply.

(2) This sub-paragraph applies if—

(a) on or before the scheme closing date—

(i) P was an active member of the existing scheme;

(ii) P’s employment was transferred to an employer not mentioned in Parts 2, 3 or 4 of Schedule 1;

(iii) as a result of that transfer, P ceased to be in pensionable service under the existing scheme; and

(iv) P’s employment is subject to existing Fair Deal arrangements.

(b) after the scheme closing date—

(i) P is subject to a Fair Deal transfer; and

(ii) P is not a member of another pension scheme to which P’s employer pays contributions in respect of P.

(3) This sub-paragraph applies if—

(a) on 31st March 2012 and on the scheme closing date, P was an active member of the existing scheme or a pension scheme access to which was given under existing Fair Deal arrangements; and

(b) unless P dies, P would reach normal pension age under the existing scheme before 2nd April 2022.

Exception for full protection member during protection period

10.—(1) This paragraph applies to a person (P) if P is a full protection member of the existing scheme by virtue of the application of either paragraph 7 or 8.

(2) The protection period for P is the period which—

(a) begins on the day after the scheme closing date; and

(b) ends when P ceases to be a full protection member of that scheme.

(3) During the protection period—

(a) P’s pensionable service is pensionable service under the existing scheme; and

(b) section 18(1) of the Act does not apply in respect of that pensionable service.

Exception for Fair Deal full protection member during protection period

11.—(1) This paragraph applies to a person (P) if P is a full protection member of the existing scheme by virtue of the application of paragraph 9.

(2) The protection period for P is the period which—

(a) begins on the Fair Deal transfer date; and

(b) ends when P ceases to be a full time protection member under the existing scheme.

(3) During the protection period—

(a) P’s pensionable service is pensionable service under the existing scheme; and

(b) section 18(1) of the Act does not apply in respect of that pensionable service.

Full protection member not eligible to join this scheme

12.  While a person (P) is a full protection member of the existing scheme, P is not eligible to be an active member of this scheme.

PART 3 Exceptions for tapered protection members

Meaning of “tapered protection member”

13.—(1) A person (P) to whom paragraph 14, 15 or 16 applies is a tapered protection member of the existing scheme.

(2) P ceases to be a tapered protection member of the existing scheme on whichever of the following days occurs first—

(a) P’s tapered protection closing date; or

(b) the day on which P ceases to be in pensionable service under the existing scheme.

Active members of the existing scheme

14.  This paragraph applies if—

(a) P was an active member of the existing scheme, as defined in Part 1, on the scheme closing date and on 31st March 2012;

(b) a pension, other than a phased retirement pension, has not become payable to P on or after 1st April 2012; and

(c) unless P dies, P would reach normal pension age under that scheme between 2nd April 2022 and 1st September 2025 (inclusive).

Active members of an existing public service scheme

15.  This paragraph applies if—

(a) P was an active member of an existing public service scheme on the scheme closing date and on 31st March 2012;

(b) P enters eligible employment not more than 5 years after leaving pensionable service under the existing public service scheme;

(c) a pension in respect of all of P’s service in the existing public service scheme has not become payable on or after 1st April 2012; and

(d) unless P dies, P would reach normal pension age under—

(i) the existing scheme between 2nd April 2022 and 1st September 2025 (inclusive); and

(ii) the existing public service scheme on or before 1st September 2025.

Fair Deal members

16.—(1) This paragraph applies if sub-paragraphs (2) and (3) apply.

(2) This sub-paragraph applies if—

(a) on or before the scheme closing date—

(i) P was an active member of the existing scheme;

(ii) P’s employment was transferred to an employer not mentioned in Parts 2, 3 or 4 of Schedule 1;

(iii) as a result of that transfer, P ceased to be in pensionable service under the existing scheme; and

(iv) P’s employment is subject to existing Fair Deal arrangements.

(b) after the scheme closing date—

(i) P is subject to a Fair Deal transfer; and

(ii) P is not a member of another pension scheme to which P’s employer pays contributions in respect of P.

(3) This sub-paragraph applies if—

(a) on 31^st March 2012 and on the scheme closing date, P was an active member of the existing scheme or a pension scheme access to which was given under existing Fair Deal arrangements; and

(b) unless P dies, P would reach normal pension age under the existing scheme between 2^nd April 2022 and 1^st September 2025 (inclusive).

Exception for tapered protection members during protection period

17.—(1) This paragraph applies to a person (P) if P is a tapered protection member of the existing scheme by virtue of the application of either paragraph 14 or 15.

(2) The protection period for P is the period which—

(a) begins on the day after the scheme closing date; and

(b) ends when P ceases to be a tapered protection member.

(3) During the protection period—

(a) P’s pensionable service is pensionable service under the existing scheme;

(b) section 18(1) of the Act does not apply in respect of that pensionable service; and

(c) benefits are to be provided under the existing scheme to or in respect of P in relation to that pensionable service.

Exception for Fair Deal tapered protection member during protection period

18.—(1) This paragraph applies to a person (P) if P is a tapered protection member of the existing scheme by virtue of the application of paragraph 16.

(2) The protection period for P is the period which—

(a) begins on the Fair Deal transfer date; and

(b) ends when P ceases to be a tapered protection member of the existing scheme.

(3) During the protection period—

(a) P’s pensionable service is pensionable service under the existing scheme;

(b) section 18(1) of the Act does not apply in respect of that pensionable service; and

(c) benefits are to be provided under the existing scheme to or in respect of P in relation to that pensionable service.

Tapered protection member not eligible to join this scheme

19.  While a person (P) is a tapered protection member of the existing scheme, P is not eligible to be an active member of this scheme.

PART 4 Transition members becoming active members of this scheme

Meaning of “transition member”

20.  A person (P) to whom either paragraph 21 or 22 applies is a transition member.

Active members of the existing scheme

21.  This paragraph applies to a person (P) if—

(a) P is a member of the existing scheme by virtue of his or her pensionable service under that scheme before the transition date;

(b) P is a member of this scheme by virtue of his or her pensionable service under this scheme on or after the transition date; and

(c) either—

(i) unless P dies, P would reach normal pension age under this scheme on or after 2^nd September 2025, or

(ii) P enters post-benefit service between 31^st March 2012 and the scheme closing date.

Fair Deal members

22.—(1) This sub-paragraph applies if sub-paragraphs (2) and (3) apply.

(2) This sub-paragraph applies if—

(a) on or before the scheme closing date—

(i) P was an active member of the existing scheme;

(ii) P’s employment was transferred to an employer not mentioned in Parts 2, 3 or 4 of Schedule 1;

(iii) as a result of that transfer, P ceased to be in pensionable service under the existing scheme; and

(iv) P’s employment is subject to existing Fair Deal arrangements.

(b) after the scheme closing date—

(i) P is subject to a Fair Deal transfer; and

(ii) P is not a member of another pension scheme to which P’s employer pays contributions in respect of P.

(3) This sub-paragraph applies if—

(a) on the scheme closing date, P was an active member of the existing scheme or a pension scheme access to which was given under existing Fair Deal arrangements; and

(b) unless P dies, P would reach normal pension age under this scheme on or after 2nd September 2025.

Transition members with continuity of service

23.  A transition member (P) who has continuity of service becomes an active member of this scheme—

(a) if P is in pensionable service on the transition date, on that date; or

(b) on re-entering pensionable service after the transition date.

Transition members without continuity of service

24.  A transition member (P) who does not have continuity of service becomes an active member of this scheme when P re-enters pensionable service on or after the transition date.

PART 5 Receipt of club transfer values

Application of Part

25.—(1) This Part applies to a member who applies under these Regulations for a club transfer value to be accepted from an existing club scheme (“the sending scheme”).

(2) This Part does not apply if—

(a) the person (P) has reached 75;

(b) retirement benefits have become payable to P under this scheme or under the sending scheme; or

(c) the sending scheme was a money purchase arrangement to which P’s previous employer made no contribution.

Member with full protection

26.—(1) This paragraph applies if a full protection member of the existing scheme applies to the scheme manager for a club transfer value to be accepted.

(2) On receipt of the application, the scheme manager must accept payment of the club transfer value if it is offered.

(3) The club transfer value must be paid into the existing scheme.

Member with tapered protection or no protection

27.—(1) This paragraph applies if a tapered protection member or a transition member who is not a protected member applies to the scheme manager for a club transfer value to be accepted.

(2) On receipt of the application, the scheme manager must accept payment of the club transfer value if it is offered.

(3) Payment of the club transfer value—

(a) must be accepted into the existing scheme if the payment relates to pensionable service before the transition date;

(b) must be accepted into this scheme if the payment relates to pensionable service on or after the transition date.

PART 6 Bulk transfer payments for accepted members

Application of Part

28.  This Part applies in relation to all persons who—

(a) were active members of the existing scheme in relation to an employment before that employment was transferred;

(b) as a result of that transfer became subject to existing Fair Deal arrangements and ceased to be active members of the existing scheme in relation to that employment;

(c) while subject to that transfer, were active members of an occupational pension scheme; and

(d) as a result of a Fair Deal transfer become accepted members of this scheme.

Accepting a bulk transfer payment

29.—(1) This paragraph applies if another occupational pension scheme (“the sending scheme”) offers to make a bulk transfer payment in respect of all persons to whom this Part applies.

(2) The scheme manager for the existing scheme must accept a bulk transfer payment if it is offered.

(3) A transfer payment in respect of a person (P) may not be accepted as part of a bulk transfer payment if—

(a) it relates to service on or after the Fair Deal transfer date; or

(b) retirement benefits have become payable to P under the sending scheme.

(4) In this Part, “bulk transfer payment” means a single transfer payment in respect of all persons to whom this Part applies.

(5) The bulk transfer payment must be accepted into the existing scheme.

PART 7 Payment of benefits to transition members

CHAPTER 1 General

Reaching normal pension age

30.—(1) If a transition member (P) who applies for payment of retirement benefits under both schemes has reached normal pension age under the existing scheme but has not reached normal pension age under this scheme, the benefits payable under this scheme are to be actuarially reduced.

(2) If P has reached normal pension age neither under the existing scheme nor under this scheme, the benefits payable under both schemes are to be actuarially reduced.

(3) If P has reached normal pension age—

(a) under the existing scheme only, the benefits payable under that scheme are to be actuarially enhanced under the existing scheme rules (if applicable); or

(b) under both schemes, the benefits payable under both schemes are to be actuarially enhanced (if applicable).

Application of existing scheme rules

31.—(1) The existing scheme rules apply in relation to the calculation of benefits payable in respect of pensionable service under the existing scheme, save that an application for payment of benefits must be made under regulation 162 of these Regulations and not under TPR 2010.

(2) The existing scheme rules apply in relation to the payment of additional pension with a retirement pension under the existing scheme, save that an application for payment of benefits must be made under regulation 162 of these Regulations and not under TPR 2010.

(3) The existing scheme rules apply in relation to an election made by a person (P) for contributions to be paid monthly under paragraph 2(1) (election to pay contributions for additional pension) of Schedule 4 to TPR 2010 if the election is made before—

(a) the date P ceases to be in pensionable service under the existing scheme, if P is a full protection member; or

(b) the transition date.

Determination of final salary

32.—(1) For the purpose of calculating benefits payable under the existing scheme to or in respect of a transition member with continuity of service, the member’s final salary is determined by reference to Part 5 of TPR 2010.

(2) Where a salary restriction under regulation 39 of TPR 2010 applies in respect of the benefits payable to a transition member, no repayment of contributions is payable under regulation 26 of TPR 2010.

Annual rate of pension

33.  Save where provided otherwise in paragraph 46 (application for supplementary death grant), the annual rate of pension payable to a transition member is found by adding—

(a) the annual rate of pension payable under the existing scheme; and

(b) the annual rate of pension payable under this scheme.

CHAPTER 2 Application for payment of benefits

Application for payment of age retirement pension

34.—(1) An application by a transition member (P) for payment of an age retirement pension under this scheme is also an application for payment of an age retirement pension in respect of P’s pensionable service under the existing scheme.

(2) A transition member (P) who has not reached normal pension age under this scheme may apply under regulation 162 of these Regulations for payment of age retirement benefits in respect of P’s pensionable service under the existing scheme without applying for payment of P’s retirement benefits in respect of pensionable service under this scheme.

Application for payment of phased retirement pension

35.—(1) A transition member (P) who makes a phased retirement application under this scheme may elect to receive phased retirement benefits—

(a) in respect of pensionable service under the existing scheme only;

(b) in respect of pensionable service under this scheme only; or

(c) in respect of pensionable service under both the existing scheme and this scheme .

(2) P’s application for phased retirement benefits in respect of pensionable service under both the existing scheme and this scheme may specify a different phased retirement proportion for each scheme.

Application for payment of premature retirement pension

36.  A transition member (P) who applies for payment of a premature retirement pension under this scheme will receive any benefits due to P in respect of P’s pensionable service in the existing scheme as part of P’s premature retirement pension payable under this scheme.

Application for payment of early retirement pension

37.  A transition member (P) who applies for payment of an early retirement pension under this scheme will receive any benefits due to P in respect of P’s pensionable service in the existing scheme as part of P’s early retirement pension payable under this scheme.

Application for payment of ill-health pension

38.—(1) A transition member (P) will receive any benefits payable under this scheme as part of P’s ill-health pension payable under the existing scheme if—

(a) P applies before P’s transition date for payment of an ill-health pension, and

(b) P’s application is successfully determined after that date.

(2) P will receive under this scheme any benefits due to P in respect of P’s pensionable service in the existing scheme if P makes a successful application for payment of an ill-health pension under this scheme.

Entitlement to payment of total incapacity pension

39.—(1) Save as provided in sub-paragraph (2), a transition member (P) is not entitled to payment of total incapacity benefits under regulation 65 of TPR 2010.

(2) P may receive payment of total incapacity benefits under the existing scheme regulations if—

(a) before P’s transition date, P makes an application under regulation 65 of TPR 2010 which is not determined by the transition date;

(b) P’s application is successfully determined after the transition date; and

(c) P has not made a subsequent application under regulation 162 of these regulations for payment of total incapacity benefits.

Entitlement to payment of a short-service serious ill-health grant

40.—(1) Save as provided in this paragraph, a transition member (P) is not entitled to payment of a short-service serious ill-health grant under regulation 79 of TPR 2010.

(2) P may receive payment of a short-service serious ill-health grant under the existing scheme regulations if—

(a) before P’s transition date, P makes an application under regulation 79 of TPR 2010 which is not determined by the transition date;

(b) P’s application is successfully determined after the transition date; and

(c) P has not made a subsequent application under regulation 162 of these regulations for payment of a short-service serious ill-health grant.

(3) The amount of the payment of a short-service ill-health grant payable under sub-paragraph (2) is calculated under regulation 122 of these Regulations.

Application for payment of a surviving adult pension

41.—(1) When the surviving adult of a transition member applies for payment of a surviving adult pension under this scheme, the surviving adult must also apply for payment of an adult pension under the existing scheme.

(2) The short-term rate of surviving adult pension—

(a) is payable under this scheme; but

(b) is not payable under regulation 95 of the existing scheme.

(3) The enhancement of a surviving adult pension—

(a) is applied under regulation 145 of these Regulations; but

(b) is not applied under Schedule 9 to the existing scheme.

Application for payment of an additional (surviving adult) pension

42.  When the surviving adult of a transition member applies for payment of an additional (surviving adult) pension under this scheme, the surviving adult must also apply for payment of an additional pension under the existing scheme.

Application for payment of a child pension

43.—(1) When the eligible child of a transition member applies for payment of a child pension under this scheme, the eligible child must also apply for payment of a child pension under the existing scheme.

(2) The short-term rate of child pension—

(a) is payable under this scheme; but

(b) is not payable under regulation 98 of the existing scheme.

(3) The enhancement of a child pension—

(a) is applied under regulation 152 of these Regulations; but

(b) is not applied under Schedule 9 to the existing scheme.

Application for payment of a death in service grant

44.—(1) The beneficiary of a transition member (D) is not entitled to a death in service grant under regulation 83 or 84 of the existing scheme.

(2) The amount of the death in service grant paid under this scheme must be reduced by the amount of any retirement lump sum paid under regulation 60 of the existing scheme in respect of D’s pensionable service under that scheme.

Application for payment of a death out of service grant

45.—(1) When the beneficiary of a transition member applies for payment of a death out of service grant under this scheme, the beneficiary must also apply for payment of a death out of service grant under the existing scheme.

(2) The amount of the death out of service grant paid under this scheme must be reduced by the amount of any retirement lump sum paid under regulation 60 of the existing scheme in respect of D’s pensionable service under that scheme.

Application for supplementary death grant

46.—(1) An application for a supplementary death grant by the beneficiary of a transition member is an application for a supplementary death grant under this scheme and under the existing scheme.

(2) Paragraph 33 (annual rate of pension) does not apply in respect of an application under this paragraph.

Application for payment of benefits for pension credit members

47.—(1) A transition member (P) who has not reached normal pension age under the existing scheme when P applies for payment of a pension credit retirement pension under this scheme will receive payment of any benefits payable to P in respect of pensionable service under the existing scheme.

(2) If P applies for payment of a pension credit retirement pension after having reached normal pension age under the existing scheme, P may apply for payment from this scheme of a pension credit retirement pension in respect of pensionable service under—

(a) the existing scheme;

(b) this scheme; or

(c) the existing scheme and this scheme.

PART 8 Provision in relation to the existing scheme

Election for employment not to be pensionable in relation to existing scheme continues to have effect

48.  A person (P) is taken to have opted out of this scheme in relation to an eligible employment if, on P’s transition date, an election for that employment not to be pensionable has effect in relation to the existing scheme.

Qualifying for retirement benefits under the existing scheme

49.  In determining whether a transition member is qualified for retirement benefits under the existing scheme, the member’s qualifying service includes the total of—

(a) the member’s qualifying service under the existing scheme; and

(b) the member’s qualifying service under this scheme.

Repayment of balance of contributions

50.  An application by a transitional member (P) for the repayment of the balance of P’s contributions under regulation 189 is also an application for any repayment of the balance of contributions due to P under regulations 22 to 24 of TPR 2010.

Residential emoluments

51.  Where the money value of a transition member’s (P)’s residential benefits in kind is treated as part of P’s contributable salary by virtue of an application under regulation 16(4) of TPR 2010, this has effect as if the application were made under regulation 37 of these Regulations Transfer payments in respect of the existing scheme.

52.  A transfer payment made in respect of a transition member by the scheme manager must be in relation to any benefits accrued in this scheme and any service accrued in the existing scheme.

Nomination continues to have effect

53.  A nomination under regulation 82 (death grant), 90 (surviving nominated partner) or 91 (surviving nominated beneficiary) of the existing scheme has effect as if made under Part 6 of these Regulations.

Election to pay contributions by a person serving in a reserve force

54.—(1) An election by a transition member (P) to pay contributions made under regulation 19 of TPR 2010 has effect as if made under regulation 26 of these Regulations.

(2) On becoming an active member of this scheme P does not begin to accrue service which counts for the purpose of benefits in respect of P’s permanent service for the purpose of regulation 19(3) of TPR 2010.

(1)

2006 c.46.

(2)

1996 c.56.

(3)

1986 c.45.

(4)

2006 c.41.

(5)

2006 c.42.

(6)

S.I. 2010/990; relevant amending instruments are S.I. 2011/614, S.I. 2012/673, S.I. 2012/979, S.I. 2012/2270, S.I. 2013/275 and S.I. 2014/424.

(7)

S.I. 1994/2924; as amended by S.I. 1997/3001, S.I. 2000/666, S.I. 2000/3028, S.I. 2001/3649, S.I. 2005/2198, S.I. 2006/736, S.I. 2006/2214, S.I. 2006/3122, S.I. 2008/541, S.I. 2010/990 and S.I. 2011/614.

(8)

S.I. 1972/1582.

(9)

1999 c.27.

(10)

1988 c.40.

(11)

2008 c.25

(12)

See Part 2 of Schedule 1 of the European Communities Act 1972 (c.68) for the meaning of “member State”.

(13)

Schedule 4A was inserted by the Enterprise Act 2002 (c.40), Schedule 20.

(14)

Schedule B1 was inserted by the Enterprise Act 2002 (c.40), Schedule 16.

(15)

Section 497A was inserted by the School Standards and Framework Act 1998 (c.31), section 8.

(16)

Subsection (4A) was inserted by the Education Act 2002 (c.32), section 60.

(17)

1999 c.27.

(18)

1999 c.27.

(19)

Schedule B1 was inserted by the Enterprise Act 2002 (c.40), Schedule 16.

(20)

2010 c.32.

(21)

1992 c.13.

(22)

1989 c.41.

(23)

Section 60 was amended by the Care Standards Act 2000 (c.14), Schedule 4.

(24)

2000 c.6.

(25)

Sections 507A and 507B were inserted by the Education and Inspections Act 2006 (c.40), section 6.

(26)

1991 No. 2.

(27)

See section 18(4) and (7) of the Act for the meaning of “closing date”.