Modification of Schedule 5 to the ActE+W+S
2.—(1) Schedule 5 to the Act (pension increase or lump sum where entitlement to retirement pension is deferred) M1 shall be modified in relation to transitional cases in accordance with the following paragraphs.
(2) In paragraph A1(1) (choice between increase of pension and lump sum where pensioner's entitlement is deferred)—
(a)after the words “12 months” there shall be inserted the words “ and at least 12 months of that period fall after 5th April 2005 ”;
(b)for paragraph (b) there shall be substituted the following paragraph—
“(b)that paragraph 1 is to apply in relation to so much of the period of deferment as falls before the first day of the first accrual period (as defined by paragraph 3B(2)) beginning on or after 6th April 2005 and that paragraph 3A (entitlement to lump sum) is to apply in relation to the remainder of the period of deferment.”.
(3) In paragraph 1(2) (increase of pension where pensioner's entitlement is deferred), for the words from “that amount” to the end of the sub-paragraph, there shall be substituted—
“(a)there are at least 7 incremental periods in the period of deferment;
(b)there are at least 5 incremental periods in the period of deferment and the amount of the increment for at least one of those periods is calculated in accordance with paragraph 2(3) as in force in relation to incremental periods beginning on or after 6th April 2005; or
(c)the person has made (or is treated as having made) an election under paragraph A1(1)(b) and there is at least one incremental period before the first day of the first accrual period (as defined by paragraph 3B(2)) beginning on or after 6th April 2005.”.
(4) In paragraph 3B (calculation of lump sum)—
(a)at the end of sub-paragraph (1), there shall be added the words “ or, if greater, the amount equal to the total amount of Category A or Category B retirement pension which would have been payable to the person during the period of 12 months ending with the last day of the period of deferment if his entitlement had not been deferred ”;
(b)in the definition of “accrual period” in sub-paragraph (2), for the words “a prescribed day of the week”, there shall be substituted the words “ the day of the week on which the person's retirement pension would have been payable had his entitlement not been deferred ”;
(5) In paragraph 3C (choice between increase of pension and lump sum where pensioner's deceased spouse has deferred entitlement)—
(a)at the end of paragraph (1)(d), there shall be added the words “ and throughout the period of 12 months beginning with 6th April 2005 ”;
(b)for paragraph (2)(b) there shall be substituted the following paragraph—
“(b)that paragraph 4 is to apply in relation to so much of S's period of deferment as falls before the first day of the first accrual period (as defined by paragraph 7B(2)) beginning on or after 6th April 2005 and that paragraph 7A (entitlement to lump sum) is to apply in relation to the remainder of that period of deferment.”.
(6) In paragraph 7B (calculation of lump sum)—
(a)at the end of sub-paragraph (1), there shall be added the words “ or, if greater, the amount equal to the total amount of Category A or Category B retirement pension which would have been payable to S during the period of 12 months ending with the day before his death if his entitlement had not been deferred ”;
(b)in the definition of “accrual period” in sub-paragraph (2), for the words “a prescribed day of the week”, there shall be substituted the words “ the day of the week on which S's retirement pension would have been payable had his entitlement not been deferred ”.
Marginal Citations
M1All the provisions of Schedule 5 that are being modified were inserted by Schedule 11 to the Pensions Act 2004.