Calculation of benefits in respect of transfer paymentsU.K.
88.—(1) This regulation applies for the purposes of calculating the annual pension and derivative benefits to be provided to P to reflect a transfer payment into the principal scheme (“the additional pension”).
(2) In this regulation—
(a)the guaranteed minimum pension used in the calculations is that provided by the Department for Work and Pensions, or, in relation to Northern Ireland, the Department for Communities which corresponds to the application of revaluation orders under section 148 of the Social Security Administration Act 1992 F1 or section 130 of the Social Security Administration (Northern Ireland) Act 1992 F2;
(b)the transfer payment is to include the amount of any limited revaluation premium (as defined in section 55 of the Pension Schemes Act 1993 F3 and section 51 of the Pension Schemes (Northern Ireland) Act 1993 F4) paid by a previous scheme (as those provisions had effect before they were repealed).
(3) The additional pension in respect of a transfer payment is to be calculated in accordance with the formula—
(4) For the purpose of the calculations in paragraph (3)—
(a)TP is the transfer payment from the scheme from which P is transferring;
(b)MLA is the market level adjustment;
(c)PF is the pension factor set out in Table 5 applicable to P's age last birthday as at the relevant date;
(d)L is the lump sum factor set out in Table 5 applicable to P's age last birthday as at the relevant date;
(e)SF1 is the spouse's or civil partner's factor applicable to P's age last birthday as at the relevant date set out in the column under the heading—
(i)WM in Table 5 where P is married or a civil partner at the relevant date;
(ii)WS in Table 5 where P is neither married nor a civil partner at the relevant date;
(f)SF2 is the spouse's or civil partner's factor applicable to P's age last birthday as at the relevant date set out in the column under the heading—
(i)GSM in Table 5 where P is male and neither married nor a civil partner at the relevant date;
(ii)GSF in Table 5 where P is female and neither married nor a civil partner at the relevant date;
(g)g78 is the guaranteed minimum pension per annum accrued prior to 6th April 1988;
(h)g88 is the guaranteed minimum pension per annum accrued on or after 6th April 1988;
(i)GMP is the guaranteed minimum pension factor applicable to P's age last birthday as at the relevant date set out in the column under the heading—
(i)GM in Table 5 where P is male; and
(ii)GF in Table 5 where P is female.
(5) The lump sum payable under regulation 25 in respect of the transfer payment is
(6) The surviving adult's pension payable under regulation 36 in respect of the transfer payment is
(7) The children's pension payable under regulation 42 in respect of the transfer payment bears the same proportion to the additional pension as the rate of the children's pension payable under that regulation under the principal scheme bears to the rate of the P's pension under that scheme as set out in regulation 43.
Textual Amendments
F11992 (c.5). Section 148 was amended by paragraph 27 of Schedule 8 to the Pension Schemes Act 1993 (c.48) and section 37 of the Child Support, Pensions and Social Security Act 2000 (c.19).
F21992 (c.8). Section 130 was amended by S.I. 1995/3213 (N.I.22).
F3Section 55 was repealed by paragraph 37 of Schedule 13 to the Pensions Act 2014 (c.19).
F4Section 51 was repealed by paragraph 37 of Schedule 13 to the Pensions Act (Northern Ireland) 2015 (c.5).