PART 4ADDITIONAL REQUIREMENTS IN RELATION TO GUARANTEED MINIMUM PENSIONS

Fixed rate revaluation of guaranteed minimum pensions for early leavers

24.—(1) This regulation applies where a scheme provides, in accordance with section 16(2) of the 1993 Act (as substituted by paragraph 16 of Schedule 13 to the Pensions Act 2014), for a person’s earnings factors to be determined for the purposes of section 14(2) of the 1993 Act by reference to the last order to come into force under section 148 of the Social Security Administration Act 1992 before the end of the last service tax year.

[F1(2) Subject to paragraph (3), in a case to which this regulation applies, the scheme is to provide for the weekly equivalent mentioned in section 14(2) of the 1993 Act to be increased, in relation to the period of service in respect of which accrued rights to a guaranteed minimum pension have been acquired under, or transferred to, the scheme, by at least—

(a)4.75 per cent compound, where the period of pensionable service under the scheme terminates on or after 6th April 2016 but before 6th April 2017;

(b)3.5 per cent compound, where the period of pensionable service under the scheme terminates on or after 6th April 2017F2... [F3but before 6th April 2022;]]

[F4(c)3.25 per cent compound, where the period of pensionable service under the scheme terminates on or after 6th April 2022.]

(3) The scheme may make provision which is different to that made by virtue of paragraph (2) with respect to—

(a)members whose rights to guaranteed minimum pensions under the scheme arise in respect of a transfer or transfer payment made in accordance with section 20(1) of the 1993 Act or regulations made under that provision;

(b)members whose guaranteed minimum pensions are, or are to be, appropriately secured within the meaning of section 19(3) of the 1993 Act.

Textual Amendments