PART 10PENSION SHARING
PRELIMINARY PROVISIONS
Pension debit member82.
(1)
The benefits payable to a pension debit member shall be reduced to take into account the debit to which the shareable rights of the pension debit member are subject under a pension sharing order.
(2)
The amount of the reduction shall be calculated in accordance with guidance issued for this purpose by the Government Actuary.
SHARING OF RIGHTS UNDER THE SCHEME
Interpretation83.
References in this Part to a pension credit member are to that person in relation to his pension credit rights and not in relation to any other rights he may have under the Scheme.
Discharge of liability for pension credit rights84.
(1)
(2)
Where the Committee discharges its liability by conferring pension credit rights on the person entitled to the pension credit, those shall be to—
(a)
a pension and if applicable a lump sum grant; and
(b)
a death grant.
(3)
A pension credit member is not entitled to a lump sum grant if the transferor has been paid a retirement grant before the valuation date.
(4)
The pension at the valuation date shall be calculated—
(a)
(b)
in accordance with guidance issued by the Government Actuary.
Aggregation85.
(1)
Pension credit rights or pension credit benefits may not be aggregated with any other rights or benefits under the Scheme (including those attributable to a different pension credit).
(2)
Where a pension credit member is also an active member, he may not count any period which he may count for any purpose as a period of membership in connection with his pension credit benefits towards the membership period required before he is entitled to any benefit which relates to his active membership, or in the calculation of that benefit.
Death of a person entitled to a pension credit before discharge86.
(1)
Where a person entitled to a pension credit dies before liability in respect of his pension credit has been discharged in accordance with regulation 84(1) (discharge of liability for pension credit rights), such liability shall be discharged by the Committee by payment of a lump sum.
(2)
The lump sum shall be equal to 3 times the annual rate of the pension that would have been paid to him if on the date of his death he had become entitled to a pension as a pension credit member, calculated in accordance with guidance issued by the Government Actuary.
(3)
The Committee shall pay the lump sum to the deceased’s personal representatives.
Safeguarded rights87.
(1)
(2)
The “safeguarded percentage” is the percentage of the shareable rights by reference to which the amount of the pension credit is determined which are contracted-out rights.
(3)
“Contracted-out rights” has the meaning given in section 64A(5) of the 1993 Act.
Valuation date88.
For the purposes of—
(a)
calculating the cash equivalent referred to in Article 27(2) of the 1999 Order; and
(b)
regulation 84(3) and (4) (discharge of liability for pension credit rights),
the valuation date shall be the first day of the implementation period as defined in Article 31(1) of that Order.
PENSION CREDIT MEMBERS AND PENSION CREDIT
Application of the Regulations to pension credit members89.
Calculation90.
(1)
(2)
Where applicable, the lump sum grant shall be equal to 3 times the annual rate of pension.
Payment of benefits91.
(1)
A pension credit member who attains normal benefit age is entitled to the immediate payment of a pension and, if applicable, a lump sum grant.
(2)
The pension and if applicable the lump sum grant are payable from the fund or admission agreement fund.
(3)
The pension is payable for life.
Death grants: pension credit members92.
(1)
Regulations 23 (death grants: active members), 32 (death grants: deferred members) and 35 (death grants: pensioner members) of the Benefits Regulations shall apply in relation to a pension credit member.
(2)
The Committee at its absolute discretion may make payments of a death grant to or for the benefit of the pension credit member’s nominee or personal representatives, or any person appearing to the Committee to have been his relative or dependant at any time.
(3)
If the Committee has not made payments under paragraph (2) equalling in aggregate the pension credit member’s death grant before the expiry of the period of 2 years—
(a)
beginning with his death; or
(b)
beginning with the date on which the Committee could reasonably be expected to have become aware of his death,
it must pay an amount equal to the shortfall to the pension credit member’s personal representatives.
Commutation: small pensions93.
(1)
Regulation 39 (commutation: small pensions) of the Benefits Regulations shall apply if as a result of a pension sharing order the annual rate of the retirement pension which a member who has attained normal benefit age is entitled to be paid falls below the sum mentioned in that regulation.
(2)
Regulation 39 of those Regulations shall apply in respect of the retirement pension payable to a pension credit member in respect of a pension credit and the amount of that pension shall for the purpose of this regulation be aggregated with any other pension payable to that member under the Scheme.
TRANSFERS
Transfers out94.
Transfers in95.
(1)
A pension credit member is not entitled to request the Committee to accept a transfer value for relevant pension rights and the Committee must not accept a transfer value of such rights where they have accrued to a pension credit member.
(2)
“Relevant pension rights” has the meaning given in regulation 79(2) (inward transfers of pension rights).