Part VIIGuaranteed Minimum Pensions

Fixed rate revaluation of guaranteed minimum pensions for early leavers62.

(1)

This regulation applies to a case where a scheme provides, under section 12(2) of the Act (revaluation of earnings factors), for the earnings factors of an earner whose service in contracted-out employment by reference to the scheme is terminated before he attains pensionable age to be determined by reference to the last order that comes into force under section 130 of the Administration Act before the end of the tax year in which his service is terminated.

(2)

Subject to paragraph (3), in a case to which this regulation applies, the prescribed percentage for the purpose of section 12(3) of the Act is, in relation to each period of service in respect of which accrued rights to guaranteed minimum pension have been acquired under, or transferred to, the scheme—

(a)

where the period of service terminated before 6th April 1988, 8.5 per cent. compound;

(b)

where that period of service terminated on or after 6th April 1988 but before 6th April 1993, 7.5 per cent. compound;

(c)

where that period of service terminated on or after 6th April 1993 but before 6th April 1997, 7 per cent. compound;

(d)

where that period of service terminates on or after 6th April 1997, 6.25 per cent. compound.

(3)

Paragraph (2) only applies so as to permit the same provision to be made for all members of the scheme, so however that separate provision may be made for members as regards their rights to guaranteed minimum pensions under the scheme arising in respect of a transfer or transfer payment made in accordance with section 16(1) (transfer of accrued rights) or section 24 (ways of giving effect to protected rights) of the Act67 or regulations made under those provisions or for members whose guaranteed minimum pensions are, or are to be, appropriately secured within the meaning of section 15(3) of the Act.