SCHEDULE 2Transitional provisions

PART 5Payment of ill-health benefits to transition members with continuity of service

Transition member who has not reached normal pension age under the PCSPS(NI)I129

1

This paragraph applies in relation to a transition member with continuity of service who—

F10za

is not a person in relation to whom paragraph 29B applies;

a

becomes entitled to an ill-health pension under this scheme; and

b

has not reached normal pension age under the PCSPS(NI).

2

If this paragraph applies—

a

an ill-health pension and lump sum are not payable under the PCSPS(NI);

b

an ill-health pension is payable under this scheme in accordance with this paragraph; and

c

the member becomes a deferred member of the PCSPS(NI).

F13

If the member meets the lower tier payment threshold only—

a

the annual rate of ill-health pension payable under this scheme is the sum of–

i

the annual rate of a lower tier earned pension payable under this scheme; and

ii

the annual rate of full retirement earned pension that would, if the member was entitled to payment of an ill-health pension under the PCSPS(NI), be payable to the member at normal pension age under the PCSPS(NI); and

b

the member (“M”) is entitled to payment of a lump sum of the amount of the lump sum that would, had M been entitled to payment of an ill-health pension under the PCSPS(NI), been payable to M under the rules of the PCSPS(NI) applicable to M.

4

F7Subject to sub-paragraphs (4A) and (4B) and paragraph 29A, if the member meets the upper tier payment threshold—

a

the annual rate of ill-health pension payable under this scheme is the sum of–

i

the annual rate of a lower tier earned pension payable under this scheme;

ii

the annual rate of an upper tier top up earned pension payable under this scheme; and

iii

the annual rate of full retirement earned pension that would, if the member was entitled to payment of an ill-health pension under the PCSPS(NI), be payable to the member at normal pension age under the PCSPS(NI); and

b

the member (“M”) is entitled to payment of a lump sum of the amount of the lump sum that would, had M been entitled to payment of an ill-health pension under the PCSPS(NI), been payable to M under the rules of the PCSPS(NI) applicable to M.

F84A

Where the conditions in sub-paragraph (4B) are met, the annual rate of an upper tier top up earned pension payable under this scheme is determined in accordance with paragraph 29A.

4B

The conditions are—

a

In the period of 12 months beginning with the day on which M became an active member of this scheme—

i

M was on a period of unpaid sick leave; or

ii

M was on a period of sick leave on reduced pay in respect of which M was paid at a rate determined by M’s employer to be appropriate because it is equivalent to the annual rate of an ill-health pension;

b

The latest period of leave mentioned in sub-paragraph (a) ended less than 12 months before M became entitled to an ill-health pension under this scheme.

5

If, after the ill-health pension becomes payable under this paragraph, a transfer payment is made from the PCSPS(NI) in respect of the member’s rights under that scheme, the scheme manager must deduct from the amount of ill-health pension payable under this paragraph in respect of service in the PCSPS(NI) an amount which is equal to the value of the pension represented by that transfer payment.

6

If the full retirement account specifies an amount of full retirement added pension of any description, the following pensions are payable with the lower tier earned pension—

a

the annual rate of full retirement added pension of that description payable under this scheme; and

b

the annual rate of full retirement added pension that would, if the member was entitled to payment of an ill-health pension under the PCSPS(NI), be payable to the member with that pension under the PCSPS(NI).

7

The amount of pension payable under this paragraph which represents the amount that would have been payable under the PCSPS(NI) is subject to the same conditions, and ceases to be payable in the same circumstances, as the pension to which the member would have been entitled under the PCSPS(NI) in accordance with the rules of that scheme.

8

In this paragraph—

a

a reference to the annual rate of a full retirement earned pension payable under the PCSPS(NI) means the annual pension payable under the following provisions–

i

if the member was an active member of Section I of the PCSPS(NI) before becoming an active member of this scheme, rule D1 of that Section;

ii

if the member was an active member of Section II of the PCSPS(NI) before becoming an active member of this scheme, rules 3.1 to 3.3a of that Section;

iii

if the member was an active member of Section III of the PCSPS(NI) before becoming an active member of this scheme, rule E.2 of that Section;

b

a reference to full retirement added pension payable under the PCSPS(NI) means added pension payable under the following provisions–

i

if the member was an active member of Section I of the PCSPS(NI) before becoming an active member of this scheme, rule C1.11 of that Section;

ii

if the member was an active member of Section II of the PCSPS(NI) before becoming an active member of this scheme, rule 14.13 of that Section;

iii

if the member was an active member of Section III of the PCSPS(NI) before becoming an active member of this scheme, rule E.2 of that Section; and

c

a reference to an ill-health pension payable under the PCSPS(NI) means a pension payable under the following provisions–

i

if the member was an active member of Section I of the PCSPS(NI) before becoming an active member of this scheme, rule D4 of that Section;

ii

if the member was an active member of Section II of the PCSPS(NI) before becoming an active member of this scheme, rules 3.4 to 3.7 of that Section;

iii

if the member was an active member of Section III of the PCSPS(NI) before becoming an active member of this scheme, rules E.7 to E.9 of that Section.

F629A

1

Where this paragraph applies, the annual rate of upper tier top up earned pension payable under this scheme is the greater of the annual rates of upper tier top up earned pension calculated in accordance with—

a

regulation 76; and

b

sub-paragraph (2).

2

The annual rate of upper tier top up earned pension calculated in accordance with this sub-paragraph is calculated in the same way as the annual rate of full retirement earned pension is calculated under regulation 61, but—

a

the references to the member’s full retirement earned pension are taken to be references to the enhancement fraction of the deemed pension; and

b

the early payment reduction is not subtracted.

3

In this paragraph—

  • “deemed pension” means the amount of earned pension the member would have accrued in the member’s deemed period of pensionable service if the circumstances in paragraph 29(4B)(a) had not applied;

  • “the enhancement fraction” is—

    where—

  • A is the member’s assumed period of pensionable service; and

  • B is the shorter of—

    1. a

      the member’s deemed period of pensionable service;

    2. b

      the number of scheme years in relation to which an amount of earned pension was specified in the active member’s account, or would have been if the circumstances in paragraph 29(4B)(a) had not applied;

  • “the member’s assumed period of pensionable service” means the period (expressed in years)—

    1. a

      beginning with the day after the member’s period of service ceased; and

    2. b

      ending with—

      1. i

        for a member employed for a fixed term, the day with which that term ends; or

      2. ii

        for a member otherwise employed, the day before the day on which the member will reach prospective normal pension age (assuming that the member lives until that age);

  • “the member’s deemed period of pensionable service” means the period (expressed in years)—

    1. a

      beginning with the day the member became an active member of this scheme; and

    2. b

      ending with the day on which the member became entitled to an ill-health pension under this scheme.

F9Transition member who made an application for ill-health pension under the PCSPS(NI) on or before 31st March 2022 which is determined after that date29B

1

This paragraph applies in relation to a transition member (“M”)—

a

with continuity of service;

b

who before the transition date—

i

had made an application for an ill-health pension under the PCSPS(NI) (their “ill-health pension application”); and

ii

had not reached normal pension age under the PCSPS(NI);

c

whose ill-health pension application is determined on or after the transition date; and

d

who would have been entitled to payment of an ill-health pension under the PCSPS(NI) if their ill-health pension application had been determined on 31st March 2022.

2

Where this paragraph applies—

a

an ill-health pension and lump sum are not payable under the PCSPS(NI);

b

an ill-health pension is payable under this scheme in accordance with this paragraph;

c

M becomes a deferred member of the PCSPS(NI);

d

M is entitled to payment of a lump sum of the amount which would have been payable to M under the PCSPS(NI).

3

Where M was not a member of Section II of the PCSPS(NI) immediately before the transition date and—

a

M would have met a payment threshold in the PCSPS(NI) and M meets the equivalent payment threshold in this scheme, the annual rate of ill-health pension payable under this scheme in respect of the payment threshold is the greater of—

i

the rate calculated in accordance with paragraph 29(3) (in respect of the lower tier payment threshold) or, if it applies, (4) (in respect of the upper tier payment threshold); and

ii

the rate which would have been payable to M under the PCSPS(NI) in respect of that payment threshold; or

b

M would have met a payment threshold in the PCSPS(NI) and M does not meet the equivalent payment threshold in this scheme, the annual rate of ill-health pension payable under this scheme in respect of the payment threshold is the rate which would have been payable to M under the PCSPS(NI) in respect of that payment threshold.

4

Where M was a member of Section II of the PCSPS(NI) immediately before the transition date, the annual rate of ill-health pension payable under this scheme is—

a

where M meets a payment threshold in this scheme, the greater of—

i

the rate calculated in accordance with paragraph 29(3) (in respect of the lower tier payment threshold) or, if it applies, (4) (in respect of the upper tier payment threshold); and

ii

the rate which would have been payable to M under the PCSPS(NI); or

b

where M does not meet a payment threshold in this scheme, the rate which would have been payable to M under the PCSPS(NI).

5

If the full retirement account specifies an amount of full retirement added pension of any description, the rate payable is the annual rate of full retirement added pension that would, if the member was entitled to payment of an ill-health pension under the PCSPS(NI), be payable to the member with that pension under the PCSPS(NI).

6

Any rate or amount payable under this paragraph which is determined by reference to a rate or an amount that would have been payable under the PCSPS(NI) is subject to the same conditions, and ceases to be payable in the same circumstances, as the rate or amount which would have been payable under the PCSPS(NI) in accordance with the rules of that scheme.

7

The following provisions of the PCSPS(NI) apply in relation to a transition member with continuity of service who is receiving payment of an ill-health pension in accordance with this paragraph as they apply in relation to such a member who is receiving payment of an ill-health pension in accordance with paragraph 29—

a

rule N.9 of Section I;

b

rule 18.13 of Section II;

c

rule M.9 of Section III.

8

In this paragraph—

a

the question of whether M would have met a payment threshold in the PCSPS(NI) is the question of whether M would have met the lower tier payment threshold or the upper tier payment threshold in the PCSPS(NI) if their ill-health pension application had been determined on 31st March 2022;

b

M only meets a payment threshold in this scheme if, in addition to meeting the criteria for that threshold, M would be entitled to payment of an ill-health pension under this scheme (disregarding this paragraph);

c

a reference to an amount or a rate which would have been payable to M under the PCSPS(NI) is a reference to the amount or the rate which would have been payable to M under the PCSPS(NI) if their ill health application had been determined on 31st March 2022;

d

terms which are defined for the purpose of paragraph 29 have the same meaning as in that paragraph.

Transition member who has reached normal pension age under the PCSPS(NI)I230

1

This paragraph applies in relation to a transition member with continuity of service who is receiving payment of an ill-health pension in accordance with paragraph 29.

2

When the member reaches normal pension age under the PCSPS(NI)—

a

the benefits payable under paragraph 29 in respect of service in the PCSPS(NI) cease to be payable under this scheme; F2...

b

the member becomes entitled under the PCSPS(NI) to the immediate payment of a full retirement earned pension within the meaning of paragraph 29, in accordance with the rules of that schemeF3; and

c

no lump sum is payable to the member under the PCSPS(NI).

3

In calculating the annual rate of full retirement earned pension payable under the PCSPS(NI) for the purposes of sub-paragraph (2)(b), the following are subtracted—

a

the commutation amount (if any) F4, to the extent that it relates to pension payable under paragraph 29(3)(a)(ii) and 29(4)(a)(iii)

F5b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

an amount equal to any transfer payment made to another scheme before the member reached normal pension age under the PCSPS(NI).

4

Before the amounts in sub-paragraph (3)(a) and (b) are subtracted they must be increased by the amount by which the annual rate of a pension of that amount would have been increased under the 1971 Act if—

a

that pension was eligible to be so increased; and

b

the beginning date for that pension was the date that ill-health pension became payable under this scheme.