The Funded Public Service Pension Schemes (Reduction of Cash Equivalents) Regulations 2015

Reduction of cash equivalent

3.—(1) Where, under section 95(1) (ways of taking right to cash equivalent) of the 1993 Act(1), a member of a scheme to which this regulation applies requires the trustees or managers to use a cash equivalent for acquiring a right or entitlement to flexible benefits under the rules of another pension scheme, the cash equivalent must be reduced by percentage P, unless paragraph (4) applies.

(2) This regulation applies to a scheme which is a funded public service defined benefits scheme, or part of such a scheme, that is designated on the date of the application under section 95(1) of the 1993 Act.

(3) A cash equivalent may be reduced by percentage P under paragraph (1) only to the extent that it relates to benefits which are not money purchase benefits (within the meaning of the 1993 Act) or injury or compensation benefits (within the meaning of the Public Service Pensions Act 2013(2)).

(4) This paragraph applies where a scheme ceases to be designated before the date on which the trustees or managers do what is needed to carry out what the member required by making an application under section 95(1) of the 1993 Act.(3)

(5) Where paragraph (4) applies, no reduction of the member’s cash equivalent is to be made under these Regulations.

(6) The reduction made under this regulation (alone or in conjunction with reductions made under the 1996 Regulations) may produce the result that the amount by which a cash equivalent is to be reduced is such that a member has no right to receive anything.

(1)

Section 95(1) was substituted by the Pension Schemes Act 2015 c. 8, section 67, Schedule 4, paragraph 9.

(2)

2013 c. 25.

(3)

Section 95(1) was substituted by the Pension Schemes Act 2015 c. 8, section 67, Schedule 4, paragraph 9.