The Police Pensions (Additional Voluntary Contributions) Regulations 1991

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision for the payment of additional voluntary contributions by members of the pension scheme (“the main scheme”) constituted by the Police Pensions Regulations 1987 (“the 1987 Regulations”) in order to secure additional benefits financed by investing the contributions.

The Regulations provide for the making of elections of various kinds. Regulation 3 contains general provisions as to their making and acceptance; regulation 4 provides for elections to pay basic contributions so as to secure an additional retirement pension; regulation 5, for elections to pay death benefit contributions so as to secure a lump sum death benefit in the event of death while paying such contributions; regulation 6 allows elections made under regulations 4 and 5 to be varied or cancelled. While an election has effect and the person concerned is a member of the main scheme he remains a basic contributor or, as the case may be, a death benefit contributor for the purposes of these Regulations (regulation 7).

Regulation 8 deals with the payment of contributions and imposes a limit on their total amount; regulation 9(1) and (2) require the police authority to invest basic contributions with Equitable Life, in one or more of the ways specified, in accordance with any wishes expressed by the contributor; regulation 9(3) requires death benefit contributions to be invested so as to secure the amount of cover specified. A transfer value accepted from another additional voluntary contributions scheme is to be invested as if it had consisted of basic contributions (regulation 10).

On retirement, investments (except those made with death benefit contributions) are to be realised and a retirement pension purchased with the proceeds from one of the insurers listed in Schedule 1, in accordance with any wishes expressed by the contributor in a pension election (regulation 11(1) to (6)). Regulation 11(7) makes default provision, and regulation 11(8) and (9) allow the proceeds of realisation to be paid as a lump sum in some circumstances.

Regulation 12 provides for the payment of death benefits secured by contributions under regulation 5.

Regulation 13, with Schedule 2, imposes limits on benefits of all kinds payable under the Regulations; to the extent that a limit would otherwise be exceeded, a capital sum is payable, after deduction of tax (regulation 15(4) to (6)).

Regulation 14 provides for the realisable value of investments to be repaid where there is a right to repayment of contributions paid under the 1987 Regulations, and where a basic contributor or former basic contributor dies before retirement.

Benefit and other payments are to be made by police authorities in accordance with regulation 15. Regulation 16 requires them to be given information needed for the purposes of their functions under the Regulations. Regulation 17 confers rights of appeal as required by section 6 of the Police Pensions Act 1976.

Section 1(5) of the Police Pensions Act 1976 confers express power to make regulations retrospective in effect. These Regulations have effect as from 6th April 1990, the beginning of the 1990—91 tax year. Regulation 18 makes incidental provision, including provision for payments made direct to Equitable Life before that date, in anticipation of these Regulations, to be treated as basic contributions invested in the preceding tax year, for which the Regulations are deemed to have had effect in that case.