Part IIRestrictions on Right to Cash Equivalent
Right to further cash equivalent on termination of employment to which the scheme applies4.
(1)
(2)
Where this regulation applies, a right to any cash equivalent or any part of a guaranteed cash equivalent to which the member has not acquired a right but would, but for the operation of regulation 3 (or regulation 2A of the 1985 Regulations), have acquired a right by the date when the member’s employment terminates shall accrue to the member on that date.
(3)
Where a right to any part of a guaranteed cash equivalent accrues to a member under paragraph (2), the cash equivalent of the benefits to which that part relates shall be recalculated as at—
(a)
the date on which the member’s employment terminates; or, if later,
(b)
the date on which the member applies to take that part,
and that part shall be increased or reduced by the amount by which it falls short of or exceeds the value of the cash equivalent of those benefits as so recalculated.
(4)
““the relevant date” means the date when the member’s employment terminates or the date of the relevant application, whichever is the later;” and
““the last option date” means the date which falls—
- (a)
one year before the date on which the member attains normal pension age; or
- (b)
six months after the date when his employment terminates,
whichever is the later.”.
(5)
In this regulation “employment” means employment to which the scheme applies.