PART 5Pension accounts
CHAPTER 7Pension accounts for pension credit members
Establishment of pension credit member's account68
1
The scheme manager must establish a pension account for each pension credit member of this scheme (“the pension credit member's account”).
2
If a pension credit is derived from 2 or more pension debit members, the scheme manager must establish a pension credit member's account in relation to each pension debit member.
3
On the establishment of a pension credit member's account, the pension credit member's account must specify the amount of credited pension, and for that amount—
a
the early payment reduction (if any); and
b
the commutation amount (if any).
4
On the establishment of the pension credit member's account, the accounts established under this Part for the pension debit member must be reduced by the relevant amount.
5
In this regulation—
“amount of credited pension” means an amount equal to the pension credit calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to the 1999 Order M1; and
“relevant amount” is the amount determined by the scheme manager in accordance with actuarial guidance having regard to—
- a
the cash equivalent that would have been payable under Chapter 2 of Part 4A (requirements relating to pension credit benefit; transfer values) of the 1993 Act M2 in respect of the pension credit member's right to benefits under this scheme attributable (directly or indirectly) to the pension credit; and
- b
articles 26 (creation of pension credits and debits) and 28 (reduction of benefit) of the 1999 Order.
- a
Other pension accounts69
If a pension credit member of this scheme is also an active member, deferred member or pensioner member of this scheme, the scheme manager must establish a pension credit member's account in addition to any other account established for the member under this Part.