The European Parliamentary (United Kingdom Representatives) Pensions (Additional Voluntary Contributions Scheme) (No. 2) Order 1995

Benefits which may be provided

7.—(1) Subject to the limits set out in article 11, a contributor shall be entitled to whatever benefits are secured by the contributions paid by him.

(2) Permitted death in service benefits are—

(a) a lump sum;

(b) a return of the contributor’s contributions in respect of retirement benefits to the extent of the total realisable value of the investments made with the contributions paid by the contributor;

(c) a pension payable to the contributor’s spouse throughout the remainder of his or her lifetime.

(3) Permitted retirement benefits are—

(a) on the death of the contributor after retirement, a pension payable to one or more dependants throughout the remainder of their lifetime (save that, in the case of a child who is not incapable within the meaning of article 14(5)(c) of the principal Order, the pension shall only be payable until the child reaches the age of 17 or, if later, until the child ceases to be within his period of full-time education as defined by Schedule 5 to the principal Order); and

(b) a pension payable to the contributor throughout the remainder of his lifetime, under which—

(i) payments may be guaranteed to be payable for up to 10 years after retirement in any event; or

(ii) payments may be guaranteed to be payable for up to 5 years after retirement with any balance in respect of any period between death and the expiry of the period of 5 years being paid in one lump sum on death.

(4) Pensions may be level in payment, increase at a fixed rate, or vary in line with the index.