C1PART 5BENEFITS FOR PERSONS ENTITLED TO PENSION CREDITS
Application of Part and interpretation29
1
This Part applies where—
a
b
that pension credit is derived from the rights of another person (“P”) under the principal scheme.
2
In this Part “the transferee”, “the 1999 Act”, “the 1999 Order” and “P” have the meanings given by paragraph (1).
Pension credit derived from the principal scheme: entitlement to pension30
1
On the pension start day the transferee becomes entitled to the payment for life of a pension.
Annual rate of pension under regulation 3031
1
The annual rate of the pension to which the transferee is entitled under regulation 30 is the rate in relation to which the following condition is met.
2
The condition is that the sum of—
a
the value of the pension, and
b
the value of any lump sum to which the transferee is entitled under this Part,
equals the amount of the pension credit.
3
For this purpose, the value of the pension and of any lump sum must be calculated—
a
in accordance with regulations made by the Secretary of State under paragraph 5(b) of Schedule 5 to the 1999 Act, or
b
(in any case where the 1999 Order applies) in accordance with regulations made by the Department for Communities under paragraph 5(b) of Schedule 5 to the 1999 Order,
and any regulations made by the Secretary of State or by the Department for Communities for the purposes of those provisions apply accordingly.
4
The annual rate of the pension must be calculated in in such manner as may be approved by the Government Actuary or by an actuary authorised by the Government Actuary to act on behalf of the Government Actuary for that purpose.
Lump sum for transferee at age 6532
1
This regulation applies if the transferee becomes entitled to the pension credit before P becomes entitled to a lump sum under Part 3.
2
At the time the transferee becomes entitled to a pension under regulation 30, the transferee becomes entitled to a lump sum.
3
The amount of the lump sum is to be determined in accordance with the following formula—
where A is the annual rate of the pension to which the transferee is entitled under this Part.
Lump sum where transferee dies before age 6533
1
This regulation applies if the transferee dies before reaching the normal pension age.
2
On the day after that on which the transferee dies the relevant person becomes entitled to a lump sum.
3
The amount of the lump sum is to be determined in accordance with the following formula—
where A is the annual rate of the pension to which the transferee would have been entitled under regulation 30 if the transferee had become entitled to a pension under that regulation on the day on which the transferee died.
4
In paragraph (2) “the relevant person” means—
a
the person (if any) nominated by the transferee for the purpose of this regulation by notice in writing to the administrators; or
b
in default of such nomination, the transferee's personal representatives on behalf of the transferee's estate.
Exclusions34
The appropriate Minister has no power to accept for the benefit of a member of the principal scheme—
a
a payment under paragraph 1(3) of Schedule 5 to the 1999 Act or paragraph 1(3) of Schedule 5 to the 1999 Order,
b
c
any other payment,
to the extent that that payment directly or indirectly represents a pension credit.
Pts. 1-11 restricted (10.3.2022 for specified purposes, 1.4.2022 in so far as not already in force) by Public Service Pensions and Judicial Offices Act 2022 (c. 7), ss. 90, 131(1)(2)(f)