PART 1Membership, contributions and benefits
Pension accounts
Deferred pensioner member accounts28
1
When a pensioner member who has been in receipt of Tier 3 benefits has those benefits discontinued under regulation 37(3) or (7)(c) (special provision in respect of members receiving Tier 3 benefits)—
a
the member's retirement pension account must be closed, and
b
a deferred pensioner member account must be opened.
2
The deferred pensioner member account must specify the amount of accrued pension transferred from the member's retirement pension account.
3
The amount of accrued pension transferred under paragraph (2) is the opening balance for the following Scheme year and, thereafter, the balance in the account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the Pensions (Increase) Act 1971 M1 applied.
4
The amount in the deferred pensioner member's account may be adjusted by amounts calculated in accordance with actuarial guidance issued by the Secretary of State as a result of a pension sharing order or to account for any tax to which the administering authority may become chargeable under the Finance Act 2004 in accordance with regulation 87 (tax).