SCHEDULE 4Contributions for additional pensions

Election to pay contributions for additional pension2

1

A person in pensionable employment who has not reached the age of 65 may elect to pay contributions for an additional pension by giving written notice to the Secretary of State.

2

The employer of a person in pensionable employment who has not reached the age of 65 may, with the consent of the employee, elect to pay contributions (as a lump sum) for an additional pension for the employee by written notice to the Secretary of State.

3

The former employer of a person—

a

who has ceased to be in pensionable employment, and

b

whose average salary has been restricted under regulation 39

may, with the consent of the former employee, elect to pay contributions (as a lump sum) for an additional pension for the employee by giving written notice to the Secretary of State.

4

Any election under sub-paragraph (3) must be made within 6 months after the date on which the former employee ceased to be in pensionable employment.

5

The notice must—

a

state the amount in respect of which the election is made, which must be a multiple of £250 or of such other sum as may be determined by the Secretary of State from time to time;

b

state whether the election is for an additional pension solely for the AP beneficiary or for both the AP beneficiary and the AP beneficiary's spouse, civil partner, surviving nominated partner or surviving nominated beneficiary;

c

contain such further information as may be specified by the Secretary of State; and

d

be accompanied by a declaration by the AP beneficiary that the AP beneficiary is in normal health.

6

Where the election is made under sub-paragraph (1), the notice must also state—

a

whether the contributions are to be paid as a lump sum, or

b

whether the contributions are to be paid in monthly payments and, if so, the number of monthly payments, which must not be more than 240.

7

The number of monthly payments must be such that the last is due be paid—

a

where the AP beneficiary is a pre-2007 entrant who has not reached the age of 60, before the AP beneficiary reaches that age, and

b

in any other case, before the AP beneficiary reaches the age of 65.

8

An election is accepted by the Secretary of State if the Secretary of State gives written notice to the person making it that it is accepted.