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40.—(1) A person (P) becomes a deferred member of this scheme in relation to a continuous period of pensionable service under this scheme (“period of service”) if paragraph (2) or (3) applies.
(2) This paragraph applies if —
(a)P ceases to be an active member of this scheme in relation to the period of service before reaching P’s state pension age;
(b)on ceasing to be an active member, P does not become a pensioner member of this scheme in relation to the period of service; and
(c)P has at least 2 years’ qualifying service or a transfer payment otherwise than from another occupational pension scheme has been received by this scheme in relation to P.
(3) For the purpose of this regulation, a person on a period of unpaid leave during which the employment relationship continues (1) ceases to be an active member if the period of leave exceeds 5 years.
(4) Paragraph (2) does not apply to a deferred member who falls within regulation 4(1)(b) or (d).
(5) A person becomes a deferred member of this scheme in relation to an amount of accrued added pension if—
(a)the circumstances in regulation 103(1) (deferment of added pension attributable to recent payments) apply; or
(b)the person exercises the option under regulation 121 (option to defer payment of retirement added pension).
See regulation 19 (periods of unpaid leave) for periods of unpaid leave during which the employment relationship continues
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