PART 9Contributions

CHAPTER 2Employees’ contributions

Contributions for standard earned pension179

1

In each pay period an active member (P) must pay contributions for standard earned pension (“standard contributions”) at a rate determined in accordance with regulations (“standard contributions rate”).

2

The standard contributions rate is a percentage of P’s pensionable earnings for a pay period.

Contributions under Schedule 2180

Schedule 2 has effect for the purpose of enabling—

a

payment of additional pension contributions by lump sum; and

b

monthly payments of—

i

faster accrual contributions;

ii

additional pension contributions; and

iii

buy-out contributions.

Contributions payable during a period of permanent service in the armed forces181

1

This regulation applies if—

a

an election under regulation 25 has effect in respect of a period of permanent service; and

b

the member (P) pays contributions by monthly payments.

2

Unless paragraph (3) applies, the amount of P’s contributions in respect of any pay period that falls within the period of permanent service is the total of—

a

the amount of standard contributions payable in respect of P’s notional salary; and

b

any contributions under Schedule 2 payable monthly.

3

This paragraph applies if during the period of permanent service P’s permanent service pay, when aggregated with any payments under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 195132 (“aggregated pay”), is less than the amount of P’s notional salary for that period.

4

If paragraph (3) applies—

a

the amount of P’s aggregated pay in a pay period is taken to be the amount of P’s pensionable earnings for that period; and

b

P’s contributions in that period are payable at the standard contributions rate.