PART 13 U.K.THE FEE-PAID JUDICIAL ADDED YEARS SCHEME

CHAPTER 3 U.K.ACTIVE FPJAYS MEMBERS

Contributions by active FPJAYS members U.K.

111.—(1) The cost for an active FPJAYS member (“M”) of purchasing each added year is to be determined in accordance with the formula—

where—

a

A is the relevant benefits figure (see paragraph (2));

b

B is the salary which would have been M's appropriate annual salary on the assumed contribution commencement date if M had retired on that date.

(2) The relevant benefits figure is calculated by taking the following steps—

Step 1

• Use the salary that would have been M's appropriate annual salary on the assumed contribution commencement date, if M had retired on that date, to determine which is the applicable salary group for M specified in Table 1;

Step 2

• In the part of Table 1 for M's salary group, determine which entry in column 1 describes the period expressed in years and any fraction of a year beginning with the assumed contribution commencement date and ending with M's assumed retirement date (ignoring the heading of that column);

Step 3

• Add together the personal benefits and family benefits percentage figures which correspond to the entry in column 1 referred to in Step 2.

(3) M may make contributions to purchase added years by way of—

(a) up to three lump sum payments, made within three years beginning with the date on which M gave notice under regulation 104(2) (but no more than one lump sum payment may be made in each calendar year), in respect of any contributions relating to the period beginning with the assumed contribution commencement date and ending with the day before the periodic contributions start date; and

(b) periodic deductions from fees, which commence on the periodic contributions start date, in relation to contributions relating to the period beginning with the periodic contributions start date and ending with M's assumed retirement date.

(4) The aggregate amount of the lump sum payments M may make under paragraph (3)(a) is the smaller of—

(a) the amount equal to the sum of the amounts determined for each tax year during the period beginning with the assumed contribution commencement date and ending with the day before the periodic contributions start date in accordance with the following formula—

where—

i

FI is M's annual fee income for the tax year in question which is subject to income tax, or if lower, the permitted maximum for that tax year, and

ii

C is the sum of any contributions made by M to any other judicial pension scheme in that tax year, excluding any contributions made by the member in accordance with regulation 3 of the Judicial Pensions (Contributions) Regulations 2012; and

(b) the amount determined in accordance with the formula—

where—

i

C is the cost of one added year, determined in accordance with paragraph (1),

ii

D is the number of added years which M has notified to the administrators under regulation 110(1)(c) that M intends to purchase,

iii

E is the period beginning with the assumed contribution commencement date and ending with M's assumed retirement date, expressed in years and any fraction of a year,

iv

F is the period beginning with the assumed contribution commencement date and ending with the day before the periodic contributions start date, expressed in years and any fraction of a year.

(5) M's “annual fee income” for the purposes of paragraph (4)(a)(i), is the total of the fees paid to M in respect of qualifying fee-paid days in the tax year concerned.

(6) The maximum aggregate amount of periodic contributions M may make under paragraph (3)(b) is calculated in accordance with the formula—

where—

a

C is the cost of one added year, determined in accordance with paragraph (1);

b

D is the number of added years which M has specified M intends to purchase;

c

E is the period beginning with the assumed contribution commencement date and ending with M's assumed retirement date, expressed in years and any fraction of a year;

d

F is the period beginning with the periodic contributions start date and ending with M's assumed retirement date, expressed in years and any fraction of a year;

e

X is the difference between the maximum amount which M could have contributed under paragraph (3)(a) and the amount M actually contributed under that provision.

(7) The requirement to make periodic contributions to the FPJAYS continues until M—

(a) reaches the assumed retirement age;

(b) retires;

(c) notifies the administrators that M wishes the contributions to cease; or

(d) dies.