Pensions bridging: Pensionable age on or before 5th April 20163

1

This regulation applies to a member who reached pensionable age5 on or before 5th April 2016.

2

The following are prescribed circumstances for the purposes of paragraph 2(4) of Schedule 28 to the Finance Act 20046—

a

a reduction in the rate of the scheme pension, taking effect at a time during the permitted period, which together with any previous reductions of the kind referred to in this paragraph does not exceed the relevant state retirement pension rate at that time, or

b

the pension ceasing to be payable at a time during the permitted period if at that time that rate is greater than the rate of the pension.

3

In paragraph (2)

a

“the permitted period” means the period beginning with the day on which the member reaches the age of 60 and ending with the day on which the member reaches the age of 65,

b

“relevant state retirement pension rate” at any time means—

i

where no employment of the member to which the pension scheme relates is or has been other than contracted-out employment by reference to the pension scheme, 125% of the rate of the basic pension at that time,

ii

where no such employment of the member is or has been contracted-out employment by reference to the pension scheme, 250% of the rate of the basic pension at that time, and

iii

otherwise, the percentage of the rate of the basic pension is that found by the formula set out below —

125+(125AB)math

Where—

  • A is the total number of years of a member’s employment to which the pension scheme relates which is not or has not been contracted-out, and

  • B is the total number of years of a member’s employment to which the pension scheme relates.

4

For the purposes of paragraph (3)(b)—

a

“contracted-out employment” has the meaning given in section 8(1) and (1A) of the Pension Schemes Act 19937 or section 4(1) of the Pension Schemes (Northern Ireland) Act 19938, and

b

“the basic pension” means the basic pension specified in section 44(4) of the Social Security Contributions and Benefits Act 19929 or section 44(4) of the Social Security Contributions and Benefits (Northern Ireland) Act 199210.