Legalize / United Kingdom / Scotland / Scottish-Statutory-Instrument

The Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014

Type Scottish-Statutory-Instrument

Publication 2014-11-05

Last updated 2025-08-01

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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(2) If a pension credit member has rights under this scheme which are attributable, directly or indirectly, to pension credit derived from the rights of more than one pension debit member of this scheme, a separate account is to be established under this regulation in respect of the pension credit attributable to the rights of each such pension debit member.

PART 5 — Retirement benefits for teachers

CHAPTER 1 — Interpretation

Qualifying for retirement benefits

79

(1) A person (P) is qualified for retirement benefits in respect of a period of pensionable service if—

(a) P has at least 2 years’ qualifying service; or

(b) after P enters pensionable service, a transfer value payment or cash transfer sum is accepted under Part 10 (transfers) in respect of P’s rights accrued under a personal pension scheme.

(2) In these Regulations, a period of qualifying service is the total of the following—

(a) any period of pensionable service under this scheme (other than a period of post-benefit service);

(b) if after P enters pensionable service under this scheme a transfer value payment or cash transfer sum has been accepted under Part 10 in respect of rights accrued under another occupational pension scheme, a period equal to the person’s period as an active member in that scheme;

(c) for a transition member with continuity of service, any period of pensionable service under the existing scheme before the closing date.

(3) Any pensionable service in respect of which a person’s rights under this scheme or the existing scheme are extinguished is not qualifying service.

Re-qualifying for retirement benefits in respect of post-benefit service

80

(1) A person (P) is re-qualified for retirement benefits under these Regulations if—

(a) P has at least 12 months’ post-benefit qualifying service; or

(b) a transfer payment otherwise than from another occupational pension scheme has been accepted in relation to P during P’s post-benefit service.

(2) In these Regulations, a period of post-benefit qualifying service is the total of the following—

(a) any period of post-benefit service under this scheme;

(b) for a transition member in respect of post-benefit service, any period of post-benefit service under the existing scheme before the member’s transition date;

(c) if after P enters a period of post-benefit service a transfer payment has been accepted in respect of rights accrued under another occupational pension scheme, a period equal to the person’s period of pensionable service under that scheme.

(3) For the purpose of these Regulations, P enters a period of “post-benefit service” when—

(a) P re-enters pensionable service—

(i) on or after reaching normal pension age; and

(ii) after a retirement pension (other than a phased retirement pension) or a short-service serious ill-health grant becomes payable; or

(b) P re-enters pensionable service—

(i) before reaching normal pension age; and

(ii) after a retirement pension (other than an ill health pension or phased retirement pension) or a short-service serious ill-health grant becomes payable.

(4) For the purpose of these Regulations, P does not enter a period of “post-benefit service” if P re-enters pensionable service—

(a) before reaching normal pension age; and

(b) after an ill-health pension or phased retirement pension becomes payable.

(5) Any period of service in respect of which P’s rights under this scheme or the existing scheme are extinguished is not included in a period of post-benefit service[^f00023].

Payment of retirement benefits for post-benefit service

81

For the purpose of calculating benefits in respect of a period of post-benefit service, P is taken to enter pensionable service for the first time when P enters the period of post-benefit service.

CHAPTER 2 — Age retirement

Meaning of “entitlement day” (age retirement pension)

82

(1) The entitlement day for an age retirement pension is as follows.

(2) If a person (P) is qualified for retirement benefits, the entitlement day is the earliest of the following—

(a) if P is in pensionable service on the day on which P reaches normal pension age—

(i) the day after P leaves all pensionable service; or

(ii) the day on which P reaches 75; and

(b) if P is not in pensionable service on the day on which P reaches normal pension age, the day on which P reaches normal pension age.

(3) If P is re-qualified for retirement benefits, the entitlement day is the earliest of the following—

(a) if P is in pensionable service on the date of application, the day after P leaves all pensionable service;

(b) if P has left all pensionable service on the date of application, such day as P specifies in the application, which must be no earlier than 6 weeks after the date of application;

(4) In this regulation, “date of application” means the day on which P applies for the payment of an age retirement pension.

Entitlement to age retirement pension

83

(1) A member (P) is entitled to payment of an age retirement pension from the entitlement day if—

(a) P has reached normal pension age;

(b) P is qualified or re-qualified for retirement benefits;

(d) P has applied under regulation 159 for the payment of an age retirement pension.

(2) An age retirement pension is payable for life.

Annual rate of age retirement pension

84

(1) This regulation applies if an active member or a deferred member (P) becomes entitled to payment of an age retirement pension.

(2) The annual rate of age retirement pension payable to P is found by—

(a) taking the amount of full retirement earned pension specified in P’s pensioner member’s account;

(b) applying the actuarial adjustment (if any) specified in that account in relation to that amount;

(d) adding the amount of full retirement additional pension (if any) specified in that account; and

(e) subtracting the commutation amount (if any) specified in that account in relation to the sum of those amounts.

Arrears of pension payable to deferred member who becomes pensioner member after reaching normal pension age

85

A deferred member (P) who becomes a pensioner member after reaching normal pension age is entitled to be paid the total of the following—

(a) the amount found by multiplying the sum of the amount of full retirement earned pension and the amount of full retirement additional pension (if any) specified in P’s pensioner member’s account by the period (in years and fractions of a year) for which P was a deferred member after reaching normal pension age; and

(b) interest payable on that amount in accordance with regulation 172.

CHAPTER 3 — Phased retirement

Interpretation of Chapter

86

(1) In this Chapter—

“average annual rate”, in relation to pensionable earnings in a 6 month period, means the amount of pensionable earnings in that period multiplied by 2;

“increased annual rate”, in relation to pensionable earnings, has the meaning given in regulation 94;

“new employment” has the meaning given in regulation 88(2);

“new employment condition” has the meaning given in regulation 88;

“pensionable earnings”, for a person not in an eligible employment, means the amount which would be the person’s pensionable earnings if the employment were eligible employment;

“phased retirement application” means an application under regulation 159 for payment of a phased retirement pension;

“previous employment” has the meaning given in regulation 88(2);

“reduced annual rate”, in relation to pensionable earnings, means the annual rate of a person’s pensionable earnings following the reduction referred to in regulation 87;

“reduced annual rate condition” has the meaning given in regulation 87.

(2) When calculating the reduced annual rate or increased annual rate of a person’s pensionable earnings, any standard increase[^f00024] which takes effect on or after the entitlement day must be ignored.

The reduced annual rate condition

87

A person (P) meets the reduced annual rate condition if—

(a) P is in one or more eligible employments;

(b) the terms of employment change and as a result there is a reduction in the annual amount of P’s pensionable earnings; and

(c) the reduced annual rate is not more than 80% of the average annual rate of P’s pensionable earnings for the 6 months of pensionable service immediately before the reduction.

The new employment condition

88

(1) A person (P) meets the new employment condition if—

(a) P leaves all eligible employment;

(b) within 6 months after leaving all eligible employment, P enters a new employment; and

(c) on the day after the entitlement day referred to in regulation 89 the reduced annual rate of P’s pensionable earnings in the new employment does not exceed 80% of the average annual rate of P’s pensionable earnings for the last 6 months of the previous employment.

(2) In this regulation—

“a new employment” means— one or more new eligible employments; one or more employments with an employer mentioned in any paragraph in Part 2 of Schedule 1 that is not an eligible employment where P’s normal duties in the employment include providing education or services ancillary to education (other than administrative services); or one or more new eligible employments and one or more employments mentioned in paragraph (b); and

“previous employment” means one or more previous eligible employments.

Meaning of “entitlement day” (phased retirement pension)

89

The entitlement day for a phased retirement pension is—

(a) if a person (P) meets the reduced annual rate condition, the day on which the reduced annual rate takes effect; or

(b) if P meets the new employment condition, the day on which P enters a new employment.

Entitlement to phased retirement pension

90

(1) A person (P) is entitled to payment of a phased retirement earned pension from the entitlement day if—

(a) P has reached normal minimum pension age but has not reached 75;

(b) P is qualified or re-qualified for retirement benefits;

(d) P has made a phased retirement application; and

(e) P has not applied under regulation 159 for payment of any other retirement pension.

(2) P is entitled to payment of a phased retirement additional pension from the entitlement day if P has applied under regulation 91 to receive an additional pension with the phased retirement earned pension.

(3) Subject to regulation 94, a phased retirement pension is payable for life.

Phased retirement applications

91

(1) For the purpose of regulation 90, a person (P) must make a phased retirement application within 3 months after the entitlement day.

(2) The application must—

(a) be accompanied by a certificate from P’s current employer stating that P meets the reduced annual rate condition or the new employment condition; and

(b) state whether P is applying to receive an additional pension with the phased retirement earned pension.

(3) A certificate is not required in relation to the new employment condition if the scheme manager is satisfied that P’s current employer has not received the necessary information about P’s previous employment from P’s previous employer.

Phased retirement proportion

92

(1) A phased retirement application must specify the proportion of accrued earned pension for which payment is claimed (“phased retirement proportion”).

(2) The phased retirement proportion must not exceed 75%.

Annual rate of phased retirement pension

93

The annual rate of phased retirement pension payable to a member (P) is found by—

(a) taking the amount of phased retirement earned pension specified in P’s pensioner member’s account;

(b) applying the standard reduction (if any) and the actuarial adjustment (if any) specified in that account in relation to that amount;

(c) if P has applied to receive an additional pension with the phased retirement earned pension, adding the amount of phased retirement additional pension specified in that account;

(d) applying the actuarial adjustment (if any) specified in that account in relation to that amount; and

(e) subtracting the commutation amount (if any) specified in that account in relation to the sum of those amounts.

Cessation of phased retirement pension

94

(1) A phased retirement pension ceases to be payable to a member (P) if—

(a) in the 12 months after the entitlement day, the annual rate of P’s pensionable earnings increases; and

(b) as a result, the increased annual rate is more than 80% of the average annual rate of P’s pensionable earnings in—

(i) if P met the reduced annual rate condition, the 6 months of pensionable service immediately before the reduced annual rate took effect; or

(ii) if P met the new employment condition, the last 6 months of the previous employment.

(2) In this regulation, “increased annual rate” means the annual rate of P’s pensionable earnings in the 12 months after the entitlement day.

Subsequent phased retirement applications

95

(1) P may make a subsequent phased retirement application if—

(a) a phased retirement pension ceases to be payable under regulation 94 but P once more meets the reduced annual rate condition or the new employment condition; or

(b) while P is receiving a phased retirement pension, the terms of P’s employment change or P enters a new employment and P once more meets the reduced annual rate condition or the new employment condition.

(2) P may not make a subsequent phased retirement application if—

(a) P has made 3 previous phased retirement applications; or

(b) P has not reached 60 and has made 2 previous phased retirement applications.

(3) If P makes a subsequent phased retirement application after a phased retirement pension ceases to be payable—

(a) the phased retirement proportion specified in that application must be the same as or greater than the phased retirement proportion specified in the original application;

(b) if P applied under regulation 91 to receive an additional pension as part of the original pension, P must apply under that regulation to receive an additional pension as part of the new phased retirement pension (“the new pension”); and

(i) P must apply under that regulation to receive a lump sum in place of part of the new pension (“new lump sum”);

(ii) the amount of the new lump sum must be the same as or greater than the amount of the original lump sum; and

(iii) the amount of lump sum payable is the amount of the new lump sum less the amount of the original lump sum.

(4) Any subsequent phased retirement application must be made in accordance with regulation 91.

(5) In this regulation—

“original application” means P’s application under regulation 159 for payment of the original pension;

“original pension” means a phased retirement pension that ceases to be payable under regulation 94;

“previous phased retirement application” includes the original application.

CHAPTER 4 — Premature retirement

Interpretation “pensionable service”

96

For the purpose of this Chapter, a person in respect of whom an election under regulation 25 has effect is not treated as being in pensionable service.

Meaning of “entitlement day” (premature retirement pension)

97

The entitlement day for a premature retirement pension is the day after a person leaves all eligible employment.

Entitlement to premature retirement pension

98

(1) A person (P) is entitled to payment of a premature retirement pension from the entitlement day if—

(a) P has reached normal minimum pension age but has not reached normal pension age;

(b) P is qualified or re-qualified for retirement benefits;

(c) P’s pensionable service in relation to an employment is terminated by reason of P’s redundancy or in the interests of the efficient discharge of the functions of P’s employer;

(d) P’s employer gives written notice to the scheme manager stating that—

(i) P’s pensionable service was terminated by reason of P’s redundancy or in the interests of the efficient discharge of the employer’s functions; and

(ii) the employer agrees that a premature retirement pension should become payable to P;

(e) P receives no compensation as a result of P’s pensionable service being terminated;

(f) P has left all eligible employment;

(g) P has applied under regulation 159 for payment of a premature retirement pension; and

(h) P has not applied under that regulation for payment of any other retirement pension.

(2) P is not entitled to payment of a premature retirement pension in respect of any pensionable service after P reaches normal pension age.

(3) A premature retirement pension is payable for life.

Annual rate of premature retirement pension

99

The annual rate of premature retirement pension payable to a person (P) is found by—

(a) taking the amount of full retirement earned pension specified in P’s pensioner member’s account;

(b) applying the standard reduction (if any) and the actuarial adjustment (if any) specified in that account in relation to that amount;

(d) applying the actuarial adjustment (if any) specified in that account in relation to that amount; and

(e) subtracting the commutation amount (if any) specified in that account in relation to the sum of those amounts.

CHAPTER 5 — Early retirement

Meaning of “entitlement day” (early retirement pension)

100

(1) The entitlement day for an early retirement pension is as follows.

(2) If a person (P) is not in eligible employment when P applies under regulation 159 for payment of the pension, the entitlement day is a day specified in P’s application which is at least 6 weeks after the day on which the application is made.

(3) If P is in eligible employment when P applies under regulation 159 for payment of the pension and P’s employer agrees that an early retirement pension should become payable to P, the entitlement day is the day after P leaves all eligible employment.

(4) If P is in eligible employment when P applies under regulation 159 for payment of the pension and P’s employer does not agree that an early retirement pension should become payable to P—

(a) if P continues in eligible employment for at least 6 months after the date on which P asks P’s employer to agree, the entitlement day is the day after P leaves all eligible employment;

(b) if P leaves all eligible employment before the end of 6 months after the date on which P asks P’s employer to agree, the entitlement day is a day specified in P’s application which is at least 6 weeks after the day on which the application is made.

(5) Despite paragraphs (2) to (4), the entitlement day must not be before the day on which P—

(a) reaches normal minimum pension age; or

(b) leaves all eligible employment.

Entitlement to early retirement pension

101

(1) A person (P) is entitled to payment of an early retirement pension from the entitlement day if—

(a) P has reached normal minimum pension age but has not reached normal pension age;

(b) P is qualified or re-qualified for retirement benefits;

(d) P has applied under regulation 159 for the payment of an early retirement pension; and

(e) P has not applied under that regulation for payment of any other retirement pension.

(2) P is not entitled to payment of an early retirement pension in respect of any pensionable service after P reaches normal pension age.

(3) An early retirement pension is payable for life.

Annual rate of early retirement pension

102

The annual rate of the early retirement pension payable to a person (P) is found by—

(a) taking the amount of full retirement earned pension specified in P’s pensioner member’s account;

(b) applying the standard reduction (if any) and the actuarial adjustment (if any) specified in that account in relation to that amount;

(d) applying the actuarial adjustment (if any) specified in that account in relation to that amount; and

(e) subtracting the commutation amount (if any) specified in that account in relation to the sum of those amounts.

CHAPTER 6 — Ill health retirement

SECTION 1 — General

Interpretation

103

In this Chapter—

“ill-health application” means an application under regulation 159 for payment of— an ill-health pension; and if applicable, a total incapacity pension;

“medical report” means a medical report accompanying an ill-health application.

Incapacity definitions

104

In this Chapter, a person (P)—

(a) is incapacitated if, as a result of illness or injury, P is unfit to be in eligible employment despite appropriate medical treatment;

(b) meets the incapacity condition if—

(i) P is incapacitated; and

(ii) P is likely to be incapacitated permanently; and

(i) P is incapacitated; and

(ii) P’s ability to carry out any work is impaired by more than 90% and is likely to be impaired by more than 90% permanently.

Ill-health applications

105

(1) An ill-health application made by a person (P)—

(a) must be accompanied by all the medical evidence necessary for the scheme manager to determine that P is entitled to the payment of an ill-health pension or a total incapacity pension; and

(b) must be signed by P’s employer unless—

(i) P left all eligible employment for a reason other than because P was incapacitated; or

(ii) P made the ill-health application more than 2 years after the last day of pensionable service.

(2) The medical evidence must include a medical report containing evidence that P meets—

(a) the incapacity condition; and

(b) if applicable, the total incapacity condition.

(3) An application for a total incapacity pension will not be granted unless it is made—

(a) before P leaves all eligible employment; or

(b) within 2 years after the last day of pensionable service.

SECTION 2 — Ill-health pension

Entitlement day for ill-health pension

106

(1) The entitlement day for an ill-health pension is the latest of the following—

(a) the day specified in the medical report as the day on which a person (P) first met the incapacity condition or, if applicable, the total incapacity condition;

(b) the day which occurs 6 months before the date of a medical report following consideration of which the scheme manager is satisfied that P meets the incapacity condition or, if applicable, the total incapacity condition;

(2) The entitlement day must not be before the date of any medical report following consideration of which the scheme manager was not satisfied that P met the incapacity condition or, if applicable, the total incapacity condition.

Entitlement to ill-health pension

107

(1) A member (P) is entitled to payment of an ill-health pension from the entitlement day if—

(a) P is qualified or re-qualified for retirement benefits;

(b) P has not reached normal pension age;

(d) P has applied under regulation 159 for payment of an ill health pension;

(e) P has not applied under that regulation for payment of any other retirement pension; and

(f) the scheme manager is satisfied after consideration of a medical report that—

(i) if paragraph (2) applies, P meets the incapacity condition and the total incapacity condition; or

(ii) if paragraph (3) applies, P meets the incapacity condition.

(2) This paragraph applies if—

(a) P left all eligible employment for a reason other than because P was incapacitated; or

(b) P made the ill health application more than 2 years after the last day of pensionable service.

(3) This paragraph applies if—

(a) P left all eligible employment because P was incapacitated; and

(b) P made the ill-health application—

(i) before leaving all eligible employment; or

(ii) within 2 years after the last day of pensionable service.

(4) Except as provided in regulation 111, an ill-health pension is payable for life.

No entitlement to ill-health pension

108

(1) A member (P) is not entitled to payment of an ill-health pension—

(a) in respect of any pensionable service after P reaches normal pension age; or

(b) if paragraph (2) applies.

(2) This paragraph applies if—

(a) P is registered or formerly registered with the General Teaching Council for Scotland and—

(i) P’s name has been removed from that Council’s register following a direction by the Council’s Disciplinary Committee; or

(ii) P is under an investigation which might result in such removal; or

(b) P—

(i) is not and has not been registered with that Council; and

(ii) has ceased to be in pensionable employment as a result of a dismissal on grounds of misconduct.

When ill-health pension does not become payable

109

(1) If an ill-health pension does not become payable before the death of a member (D), a death grant is payable in respect of the member.

(2) For the purpose of paragraph (1)—

(a) an ill-health pension does not become payable before D’s death unless the initial payment of the pension is made before D’s death; and

(b) an ill-health pension that becomes payable before D’s death but ceases to be payable under regulation 111 or 115 is taken not to become payable before D’s death.

Annual rate of ill-health pension

110

The annual rate of ill-health pension payable to a person (P) is found by—

(a) taking the amount of full retirement earned pension specified in P’s pensioner member’s account;

(b) adding the amount of full retirement additional pension (if any) specified in that account; and

When ill-health pension ceases to be payable

111

(1) An ill-health pension ceases to be payable on the earlier of the following dates—

(a) the date on which a person (P) re-enters eligible employment;

(b) the date on which P engages in any work as a teacher which is not an eligible employment.

(2) An ill-health pension does not cease to be payable on that date if P has reached normal pension age.

SECTION 3 — Total incapacity pension

Meaning of “entitlement day” (total incapacity pension)

112

The entitlement day for a total incapacity pension payable with an ill-health pension is the same as the entitlement day for the ill-health pension.

Entitlement to total incapacity pension

113

(1) A total incapacity pension is payable to a person (P) from the entitlement day if—

(a) P is entitled to an ill-health pension because the scheme manager is satisfied that P meets the incapacity condition;

(b) P has applied under regulation 159 for payment of an ill-health pension and a total incapacity pension; and

(2) A total incapacity pension is not payable to P if—

(a) P left an eligible employment for a reason other than because P was incapacitated; or

(b) P made the ill-health application—

(i) after leaving all eligible employment; and

(ii) more than 2 years after the last day of pensionable service.

(3) Except as provided in regulation 115, the total incapacity pension is payable for life.

Annual rate of total incapacity pension

114

(1) The annual rate of total incapacity pension payable to a person (P) is—

$$PS 2 × AR 57$ where— AR means P’s annual rate of pensionable earnings— as at the last day of pensionable service; or if P applies for a total incapacity pension while P is in stepped down employment, as at the day before P’s annual rate of pensionable earnings was first reduced under paragraph (2); PS means P’s prospective service (in years and fractions of a year); “P’s prospective service” means the period beginning with the day after the entitlement day and ending on the day on which P would have reached prospective normal pension age.$

(2) P is in stepped down employment if—

(a) P is in an eligible employment;

(b) the terms of that employment are changed wholly or partly because of P’s ill-health;

(3) For the purpose of paragraph (ii) of the definition of AR, P’s annual rate of pensionable earnings is increased by the amount (if any) by which it would have been increased if it had been an official pension within the meaning of section 5(1) of PIA 1971—

(a) beginning, and first qualifying for increases under that Act, on the day after the day on which P’s annual rate of pensionable earnings is reduced; and

(b) ending on the day on which the scheme manager receives P’s application for the total incapacity pension.

Cessation of total incapacity pension

115

(1) A total incapacity pension ceases to be payable to a person (P) on the date on which P’s ability to carry out any work ceases to be impaired by more than 90%.

(2) For the purpose of paragraph (1), P’s ability to carry out any work ceases to be impaired by more than 90% on the earliest of the following dates—

(a) the date on which P re-enters eligible employment;

(b) the date on which P engages in any work as a teacher which is not an eligible employment;

(i) P provides the scheme manager with a certificate from a registered medical practitioner stating that, in the opinion of the practitioner, P continues to meet the total incapacity condition despite engaging in such work; and

(ii) the scheme manager is satisfied that P continues to meet that condition despite engaging in such work.

(3) A total incapacity pension does not cease to be payable on that date if P has reached normal pension age.

CHAPTER 7 — Short-service serious ill health grant

Application for payment of grant

116

(1) An application made by a person (P) under regulation 159 for payment of a short-service serious ill-health grant—

(a) must be accompanied by all the medical evidence necessary for the scheme manager to determine that P is entitled to the payment; and

(b) must be signed by P’s employer.

(2) The medical evidence must include a medical report containing evidence that P—

(a) meets the incapacity condition; and

(b) has a life expectancy of less than a year.

(3) An application is not to be granted unless it is made—

(a) before P leaves all eligible employment; or

(b) within 6 months after the last day of pensionable service.

Meaning of “entitlement day” (short-service serious ill-health grant)

117

The entitlement day for a short-service serious ill-health grant is the day after a person (P) leaves all eligible employment because P is incapacitated.

Entitlement to short-service serious ill-health grant

118

(1) A person (P) is entitled to payment of a short-service serious ill-health grant on the entitlement day if—

(a) P was in pensionable service (other than post-benefit service) for at least 12 months;

(b) P leaves all eligible employment because P is incapacitated;

(d) P has not reached 75;

(e) P has applied under regulation 159 for payment of the grant; and

(f) the scheme manager is satisfied after consideration of the medical report that—

(i) P meets the incapacity condition; and

(ii) P has a life expectancy of less than a year.

(2) This regulation does not apply if P is in a period of post-benefit service immediately before the entitlement day.

Amount of grant

119

(1) The amount of a short-service serious ill-health grant is the greater of—

(a) 1/6th of the member’s annual rate of pensionable earnings as at the last day of pensionable service; and

(b) the total of the amounts specified in paragraph (2).

(2) The amounts are—

(a) all members’ contributions, additional pension contributions, buy-out contributions and faster accrual contributions paid up to the date of receipt of the application under regulation 159, except any paid in respect of a period of pensionable service for which a short-service serious ill-health grant has been paid; and

(b) interest on those contributions from the first day of the financial year following that in which they were paid to the date of payment at 3% per year, compounded with yearly rests.

CHAPTER 8 — Short-service annuity for post-benefit service

Meaning of “entitlement day” (short-service annuity)

120

The entitlement day for a short-service annuity is the date specified in an application under regulation 159 for payment of the annuity, which must be no earlier than 6 weeks after the day on which the application is made.

Entitlement to short-service annuity

121

(1) A person (P) is entitled to payment from the entitlement day of a short-service annuity in respect of post-benefit service if—

(a) P enters a period of post-benefit service;

(b) P is not re-qualified for retirement benefits in respect of that service;

(d) P has applied under regulation 159 for payment of the annuity.

(2) A short-service annuity is payable for life.

Annual rate of short-service annuity

122

The annual rate of a short-service annuity is the actuarial equivalent of the sum of—

(a) all of the member’s standard contributions, faster accrual contributions (if any) and additional pension contributions (if any) in respect of a period of post-benefit service paid up to the date of receipt of the application under regulation 159; and

(b) interest to the date of payment at 3% per year, compounded with yearly rests on those contributions from the first day of the financial year following that in which they were paid.

PART 6 — Survivor’s benefits

CHAPTER 1 — General interpretation

General

123

In this Part—

“member” means a member other than a pension credit member;

“survivor’s benefits” means any of the following— a death grant; a survivor’s pension;

“survivor’s pension” means a surviving adult pension, additional (surviving adult) pension or child pension.

When a retirement pension does not become payable

124

For the purpose of this Part—

(a) an ill-health pension does not become payable before D’s death unless the initial payment of the pension is made before D’s death;

(b) an ill-health pension that does becomes payable before D’s death but ceases to be payable under regulation 111 or 115 is taken not to become payable before D’s death; and

(c) a phased retirement pension that does becomes payable before D’s death but ceases to be payable under regulation 94 does not become payable before D’s death.

Meaning of “dies in service”

125

(1) A member (D) dies in service for the purpose of survivor’s benefits if—

(a) D dies while in pensionable service;

(b) D dies while on non-pensionable family leave immediately following a period of pensionable service;

(d) paragraph (2) applies.

(2) This paragraph applies if—

(a) D dies within 12 months after leaving pensionable service in all eligible employment because D was incapacitated; and

(b) a retirement pension other than a phased retirement pension does not become payable in relation to that service before D’s death.

Meaning of “dies out of service”

126

A member (D) dies out of service for the purpose of survivor’s benefits if—

(a) D does not die in service; or

(b) D does not die as a pensioner member.

Meaning of “dies as a pensioner member”

127

In this Part, a member (D) dies as a pensioner member if a retirement pension becomes payable before D’s death.

Payment of survivor benefits for post-benefit service

128

For the purpose of calculating survivor benefits in respect of a member’s period of post-benefit service, the member (D) is taken to have entered pensionable service for the first time when D entered the period of post-benefit service.

Death of a dual capacity member

129

The annual rate of a survivor’s pension applies to the surviving adult or eligible child of a dual capacity member in relation to each of the member’s capacities.

CHAPTER 2 — Specific interpretation

Meaning of “death grant beneficiary”

130

(1) For the purpose of a death grant, a person (P) is a “death grant beneficiary” if—

(a) P is an individual;

(b) the member has nominated P to receive a death grant or a share of a death grant on the member’s death; and

(2) A member may nominate P by giving written notice to the scheme manager.

(3) The nomination ceases to have effect if—

(a) the member revokes the nomination by giving written notice to the scheme manager;

(b) the member subsequently nominates a different person in place of P; or

(4) If a member nominates more than one death grant beneficiary, the notice must state—

(a) the share of the death grant to be paid to each beneficiary; and

(b) whether, if a beneficiary dies before the member, the beneficiary’s share must be paid—

(i) to the surviving beneficiaries in accordance with paragraph (5); or

(ii) to the member’s executors as part of the member’s estate.

(5) If a beneficiary’s share is to be paid to the surviving beneficiaries, it is to be paid to them in shares such that the proportion which each surviving beneficiary’s share bears to each of the other surviving beneficiaries’ shares is the same as it was in the nomination.

Meaning of “surviving adult”

131

(1) For the purpose of a death grant, the “surviving adult” of a member who has died means the member’s—

(a) surviving spouse;

(b) surviving civil partner; or

(2) For the purpose of a survivor’s pension, the “surviving adult” of a member who has died means the member’s—

(a) surviving spouse;

(b) surviving civil partner;

(d) surviving nominated beneficiary.

Meaning of “surviving nominated partner”

132

(1) For the purpose of a survivor’s pension, a member’s partner (P) is a “surviving nominated partner” if—

(a) the member has nominated P to receive a pension on the member’s death; and

(b) at the date of the member’s death—

(i) the nomination has effect; and

(ii) the conditions in paragraph (3) were satisfied for a continuous period of at least 2 years ending on that date.

(2) A member may nominate P by giving the scheme manager a written declaration signed by both the member and P stating that the conditions in paragraph (3) are satisfied.

(3) The conditions are that—

(a) the member is able to marry or form a civil partnership with P;

(b) the member and P are living with each other as if they were a married couple or civil partners;

(d) the member and P are financially interdependent or P is financially dependent on the member.

(4) A nomination ceases to have effect if—

(a) the member or P revokes the nomination by giving written notice to the scheme manager;

(b) the member makes a subsequent nomination under this regulation;

(d) P dies.

Meaning of “surviving nominated beneficiary”

133

(1) For the purpose of a survivor’s pension, a person (P) is a member’s “surviving nominated beneficiary” if—

(a) the member has nominated P to receive a pension on the member’s death; and

(b) at the date of the member’s death—

(i) the nomination has effect; and

(ii) the conditions in paragraph (3) are satisfied.

(2) A member may nominate P by giving the scheme manager a written notice signed by both the member and P stating that the conditions in paragraph (3) are satisfied.

(3) The conditions are that—

(a) a retirement pension (other than phased retirement pension) has not become payable to the member;

(b) P is an individual;

(d) P is not living with another person as if they were a married couple or civil partners;

(e) P is not an eligible child of the member;

(f) if P is the member’s parent, brother or sister—

(i) P has never married nor formed a civil partnership; or

(ii) P is widowed or a surviving civil partner;

(g) if P is the member’s step-parent, P is widowed or a surviving civil partner; and

(h) P is wholly or mainly financially dependent on the member.

(4) A nomination ceases to have effect if—

(a) the member or P gives written notice of revocation to the scheme manager;

(b) any condition in paragraph (3) ceases to be satisfied;

(d) P dies.

Meaning of “eligible child”

134

(1) In these Regulations, a person is the “eligible child” of a member who dies (D) if—

(a) the person—

(i) is D’s child and was born before D died or within 12 months after D’s death;

(ii) was adopted by D; or

(iii) was accepted by D as a member of D’s family and was wholly or mainly financially dependent on D at the date of D’s death;

(b) the person has never married or formed a civil partnership; and

(2) Condition 1 is that the person is under 17.

(3) Condition 2 is that the person—

(a) is 17 or over and under 23;

(b) is receiving full-time education; and

(4) Condition 3 is that the person—

(a) is incapable of earning a livelihood by reason of physical or mental impairment;

(b) because of that impairment, was dependent on D at the date of D’s death; and

(c) is not wholly maintained out of money provided by the UK Parliament or the Scottish Parliament or by council tax levied by a local authority.

(5) For the purpose of Condition 2—

(a) a person is receiving full-time education if the person attends a full-time vocational training course which runs for a period of at least 2 years;

(b) a person does not cease to receive full-time education if the person takes a single break of up to a year (or such longer period as the scheme manager may determine in the circumstances of the particular case); and

(c) a person who ceases to receive full-time education is taken to receive it up to and including the week which includes whichever of the following days occurs first after the end of the term in which the person ceases to receive it—

(i) the first Monday in January;

(ii) the first Monday after Easter Monday;

(iii) the first Monday in September.

CHAPTER 3 — Death grant

SECTION 1 — General

Payment of death grant

135

On the death of a member (D), a death grant may be payable as follows—

(a) to D’s death grant beneficiary;

(b) if there is more than one death grant beneficiary, to those beneficiaries in the shares determined in accordance with regulation 130(4) and (5); or

(i) to D’s surviving adult; or

(ii) if there is no surviving adult, to D’s executors as part of D’s estate.

SECTION 2 — Death in service

Death in service grant

136

(1) A death grant may be payable under this regulation if a member (D) dies in service (“death in service grant”).

(2) A death in service grant is not payable if—

(a) D dies while in pensionable service that is not post-benefit service and a retirement pension other than a phased retirement pension becomes payable before D’s death; or

(b) D dies while in a period of post-benefit service and a retirement pension in respect of that period becomes payable before D’s death.

(3) If D dies while in pensionable service that is not post-benefit service, the amount of the death in service grant is found by—

(a) multiplying D’s annual rate of pensionable earnings as at the date of D’s death by 3; and

(b) deducting the following amounts previously paid to D in respect of pensionable service under this scheme—

(i) any part of a lump sum under regulation 162;

(ii) any short-service serious ill-health grant.

(4) If D dies while in a period of post-benefit service, the amount of the death in service grant is found by—

(a) multiplying D’s annual rate of pensionable earnings as at the date of D’s death by 3; and

(b) deducting the following amounts previously payable to D under this scheme in respect of both the period of post-benefit service and any previous period of pensionable service—

(i) any lump sum under regulation 162 not attributable to additional pension;

(ii) any short-service serious ill-health grant.

SECTION 3 — Death out of service

Death out of service grant

137

(1) A death grant may be payable under this regulation if a member (D) dies out of service (“death out of service grant”).

(2) A death out of service grant is not payable if a retirement pension other than a phased retirement pension becomes payable before D’s death.

(3) If a surviving adult pension becomes payable on D’s death, the amount of the death out of service grant is found by—

(a) taking the amount of D’s accrued earned pension as at the date of D’s death;

(b) multiplying that amount by 2.25; and

(i) any part of a lump sum under regulation 162;

(ii) any short-service serious ill-health grant.

(4) If a surviving adult pension does not become payable on D’s death, but D was qualified for retirement benefits, the amount of the death out of service grant is the greater of—

(a) the amount calculated under paragraph (3); or

(b) D’s balance of contributions.

(5) If at the date of D’s death D was not qualified for retirement benefits or a short-service serious ill-health grant had not become payable, the amount of the death out of service grant is an amount equal to D’s balance of contributions.

Supplementary death grant payable on death of pensioner member

138

(1) A death grant may be payable under this regulation (“supplementary death grant”) if—

(a) a member (D) dies as a pensioner member; and

(b) AR is greater than AP.

(2) The amount of the death grant is AR-AP,

where—

AR is 5 x D’s annual rate of retirement pension payable as at the date of D’s death; and

AP is the total amount of pension which was payable to D up until D’s death.

CHAPTER 4 — Surviving adult pensions

Surviving adult pensions

139

(1) This regulation applies on the death of a person (D) if D is qualified or re-qualified for retirement benefits.

(2) A surviving adult pension becomes payable to D’s surviving adult from the day after the date of D’s death.

(3) A surviving adult pension is payable for life.

(4) The annual rate of the pension is to be calculated in accordance with regulations 140 and 141.

Annual rate of surviving adult pension: short-term

140

(1) The short-term rate of surviving adult pension—

(a) applies if a member (D) dies in service or dies as a pensioner member; and

(b) is payable for the first 3 months after D’s death.

(2) The short-term rate is calculated as follows—

(a) if D dies in service, it is D’s annual rate of pensionable earnings as at the date of D’s death (disregarding any reduction by reason of sick leave, maternity leave, paternity leave, shared parental leave , parental bereavement leave or adoption leave);

(b) if D dies as a pensioner member, it is D’s annual rate of retirement pension as at the date of D’s death; or

(c) if the rate calculated under sub-paragraph (a) or (b) is smaller than the annual rate calculated in accordance with regulation 141 (“long-term rate”), it is the same as the long-term rate.

(3) In this regulation, “annual rate of retirement pension” means annual rate of phased retirement earned pension or annual rate of full retirement earned pension.

Annual rate of surviving adult pension: long-term

141

(1) Subject to regulation 142, the long-term rate of surviving adult pension applies—

(a) if a member (D) dies out of service; or

(b) otherwise, when the short-term rate ceases to be payable.

(2) The long-term rate of surviving adult pension is 37.5% of D’s full retirement earned pension as at the date of D’s death.

(3) If a pension sharing order has taken effect, the long-term rate must be reduced by the same proportion by which D’s annual rate of retirement pension as at the date of D’s death was reduced or would have been reduced by that pension sharing order.

Enhancement of surviving adult pension

142

(1) This regulation applies if a member (D) has not reached prospective normal pension age and—

(a) dies in service; or

(b) dies as a pensioner member after an ill-health pension and a total incapacity pension become payable to D.

(2) If this regulation applies, the long-term rate of surviving adult pension is 37.5% of the sum of the following amounts—

(a) the amount of D’s accrued earned pension as at the date of D’s death; and

(b) the amount found by multiplying half D’s prospective service (in years and fractions of a year) by 1/57th of D’s annual rate of pensionable earnings as at the date of D’s death.

(3) In this regulation, “D’s prospective service” means the period (in years and fractions of a year) beginning with the day after the date of D’s death and ending on the day on which D would have reached prospective normal pension age.

CHAPTER 5 — Additional (surviving adult) pensions

Additional pensions for surviving adults

143

(1) This regulation applies on the death of a member (D) if—

(a) D is qualified or re-qualified for retirement benefits;

(b) the scheme manager accepted an election for an additional (self only) pension and an additional (surviving adult) pension in respect of D;

(d) that account specified an amount of additional pension immediately before D’s death.

(2) From the day after D’s death, an additional (surviving adult) pension becomes payable to D’s surviving adult.

(3) An additional (surviving adult) pension is payable for life.

Annual rate of additional (surviving adult) pension: short-term

144

(1) The short-term rate of additional (surviving adult) pension—

(a) applies if a member (D) dies in service or dies as a pensioner member; and

(b) is payable for the first 3 months after D’s death.

(2) The short-term rate is calculated as follows—

(a) if D dies in service, it is the annual rate of additional (self only) pension payable as at D’s death; or

(b) if D dies as a pensioner member—

(i) where a phased retirement pension became payable before D’s death, it is the annual rate of additional (self only) pension which would have been payable as at D’s death if D had applied under regulation 91 to receive additional pension with the phased retirement earned pension; and

(ii) where a retirement pension other than a phased retirement pension became payable before D’s death, it is the annual rate of additional (self only) pension payable as at D’s death.

(3) Part 2 of Schedule 2 makes further provision in relation to payment of additional pension in respect of a member who dies in service.

Annual rate of additional (surviving adult) pension: long-term

145

(1) The long-term rate of additional (surviving adult) pension applies—

(a) if a member (D) dies out of service; or

(b) otherwise, when the short-term rate ceases to be payable.

(2) The long-term rate of additional (surviving adult) pension is half the annual rate of additional (self only) pension payable as at the date of D’s death.

(3) If a pension-sharing order has taken effect, the long-term rate must be reduced by the same proportion by which D’s annual rate of retirement pension as at the date of D’s death was reduced or would have been reduced by that pension sharing order.

CHAPTER 6 — Child pensions

Entitlement to child pension

146

(1) This regulation applies on the death of a person (D) if D is qualified or re-qualified for retirement benefits.

(2) A child pension becomes payable to an eligible child of D from the day after the date of D’s death.

(3) If a child is an eligible child of more than 2 members who die—

(a) the child is only entitled to payment of a child pension in respect of 2 of those members; and

(b) the 2 highest child pensions are payable.

(4) A child pension is not payable while an eligible child—

(a) is on a break from receiving full-time education; or

(b) attends a full-time vocational training course in respect of which the eligible child is paid at a rate which equals or exceeds the annual rate at which an official pension within the meaning of section 5(1) of PIA 1971 would be payable if the pension had begun, and first qualified for increases under that Act, on 1st April 2014 and had then been payable at an annual rate of £3045.

(5) A child pension ceases to be payable when the person to whom it was payable ceases to be an eligible child.

(6) If D dies in service or dies as a pensioner member, paragraphs (4) and (5) do not apply while the short-term rate of child pension is payable.

(7) The annual rate of a child pension is to be calculated in accordance with regulations 147 and 148.

Annual rate of child pension: short-term

147

(1) The short-term rate of child pension—

(a) applies if a member (D) dies in service or dies as a pensioner member; and

(b) is payable as follows—

(i) if a surviving adult pension does not become payable on D’s death, for the first 6 months after D’s death;

(ii) if a surviving adult pension becomes payable on D’s death and continues to be payable for the first 3 months after D’s death, for those 3 months; or

(iii) if a surviving adult pension becomes payable on D’s death but ceases to be payable before the end of the first 3 months after D’s death, for those 3 months plus the length of the period from the date on which the surviving adult pension ceased to be payable to the date 3 months after D’s death.

(2) The short term rate of child pension is calculated as follows—

(a) if D dies in service, it is D’s annual rate of pensionable earnings as at the date of D’s death (disregarding any reduction by reason of sick leave, maternity leave, paternity leave, shared parental leave , parental bereavement leave or adoption leave) divided by the number of D’s eligible children to whom a pension is payable;

(b) if D dies as a pensioner member, it is D’s annual rate of retirement pension payable as at the date of D’s death (disregarding any reduction by virtue of a pension sharing order) divided by the number of D’s eligible children to whom a pension is payable; or

(c) if the rate calculated under sub-paragraph (a) or (b) is smaller than the annual rate calculated in accordance with regulation 148 (“long-term rate”), it is the same as the long-term rate.

(3) In this regulation, “annual rate of retirement pension” means annual rate of phased retirement earned pension or annual rate of full retirement earned pension.

Annual rate of child pension: long-term

148

(1) The long-term rate of child pension applies—

(a) if a member (D) dies out of service; or

(b) otherwise, when the short-term rate ceases to be payable.

(2) The long-term rate of child pension is—

$R x accured earned pension EC.$

(3) R is—

(a) 37.5%, if a surviving adult pension is payable;

(b) 50%, if a surviving adult pension is not payable or has ceased to be payable.

(4) In paragraph (2), “accrued earned pension” is D’s accrued earned pension as at the date of D’s death.

(5) EC is—

(a) 2, if a child pension is payable to no more than 2 eligible children; or

(b) the number of eligible children, if a child pension is payable to more than 2 eligible children.

Enhancement of child pension

149

(1) This regulation applies if a member (D) has not reached prospective normal pension age and—

(a) dies in service; or

(b) dies as a pensioner member after an ill health pension and a total incapacity pension become payable to D.

(2) If this regulation applies, the long-term rate of child pension is—

$R×S EC$

where—

R is— 37.5%, if a surviving adult pension is payable; 50%, if a surviving adult pension is not payable or has ceased to be payable;

S is the sum of the following amounts— the amount of D’s accrued earned pension as at the date of D’s death; and the amount found by multiplying half D’s prospective service (in years and fractions of a year) by 1/57th of D’s annual rate of pensionable earnings as at the date of D’s death;

EC is— 2, if a child pension is payable to no more than 2 eligible children; or the number of eligible children, if a child pension is payable to more than 2 eligible children; and

“D’s prospective service” means the period (in years and fractions of a year) beginning with the day after the date of D’s death and ending on the day on which D would have reached prospective normal pension age.

PART 7 — Benefits for pension credit members

CHAPTER 1 — General

Interpretation of Part

150

In this Part—

“pension credit” means a credit under section 29(1)(b) of WRPA 1999 as against the scheme manager as the person responsible for this scheme;

“pension credit member” means a person entitled to a pension credit;

“pension credit retirement pension” means a pension payable under regulation 152(1);

“pension debit member” means, in relation to a pension credit member, the person whose rights under these Regulations become subject to a debt under section 29(1)(a) of WRPA 1999 when the pension credit member becomes entitled to a pension credit.

CHAPTER 2 — Pension credit retirement pension

Entitlement day for pension credit retirement pension

151

(1) The entitlement day for a person’s (P’s) pension credit retirement pension is—

(a) the day on which P reaches normal pension age; or

(b) if P has reached normal minimum pension age but has not reached normal pension age, a day specified in P’s application under regulation 159 for payment of the pension which is at least 6 weeks after the day on which the application is made.

(2) The entitlement day must not be before the transfer day.

Entitlement to pension credit retirement pension

152

(1) A pension credit member (P) is entitled to payment of a pension credit retirement pension from the entitlement day if P has applied under regulation 159 for payment of the pension.

(2) If P is entitled to 2 or more pension credits—

(a) benefits are payable to P under this scheme as if P were 2 or more members, each being entitled to one of the pension credits; and

(b) the amounts payable are determined accordingly.

(3) A pension credit retirement pension is payable for life.

Annual rate of pension credit retirement pension

153

The annual rate of a pension credit retirement pension is found by—

(a) taking the amount of credited pension specified in the pension credit member’s account;

(b) applying the actuarial adjustment (if any) specified in the account in relation to that amount; and

CHAPTER 3 — Death grant

Meaning of death grant beneficiary

154

(1) A person (P) is a “death grant beneficiary” of a pension credit member if—

(a) the member has nominated P to receive a death grant or a share of a death grant on the member’s death; and

(b) at the date of the member’s death, the nomination has effect.

(2) A member may nominate P by giving written notice to the scheme manager.

(3) The nomination ceases to have effect if—

(a) the member revokes the nomination by giving written notice to the scheme manager;

(b) the member subsequently nominates a different person in place of P; or

(4) If a member nominates more than one death grant beneficiary, the notice must state—

(a) the share of the death grant to be paid to each beneficiary; and

(b) whether, if a beneficiary dies before the member, the beneficiary’s share must be paid—

(i) to the surviving beneficiaries in accordance with paragraph (5); or

(ii) to the member’s executors as part of the member’s estate.

(5) If a beneficiary’s share is to be paid to the surviving beneficiaries, it is to be paid to them in shares such that the proportion which each surviving beneficiary’s share bears to each of the other surviving beneficiaries’ shares is the same as it was in the nomination.

(6) A death grant beneficiary must be an individual.

Death grant: death of pension credit member before pension becomes payable

155

(1) A death grant is payable under this regulation on the death of a pension credit member (D) who dies before a pension credit retirement pension becomes payable to D under regulation 152.

(2) The amount of the death grant is found by—

(a) taking the amount of credited pension which would have become payable to D at the date of D’s death if D had reached normal pension age; and

(b) multiplying that amount by 2.25.

Death grant: death of pension credit member after benefits payable

156

(1) A death grant is payable under this regulation on the death of a pension credit member (D) if—

(a) a pension credit retirement pension became payable before D’s death; and

(b) AR is greater than AP.

(2) The amount of the death grant is AR-AP.

(3) In this regulation—

“AR” is 5 times the annual rate of the pension credit retirement pension payable as at the date of D’s death;

“AP” is the total amount of that pension payable up until D’s death.

Payment of death grant

157

On the death of a pension credit member, the death grant must be paid—

(a) to the death grant beneficiary;

(b) if there is more than one death grant beneficiary, to those beneficiaries in the shares determined in accordance with regulation 154(4) and (5); or

(i) the member’s surviving spouse or surviving civil partner; or

(ii) if there is no such person, to the member’s executors as part of the member’s estate.

PART 8 — Payment of benefits

CHAPTER 1 — Application for payment of benefits

Benefits payable by the scheme manager

158

(1) Benefits under these Regulations are payable by the scheme manager.

(2) Benefits are not payable to or in respect of a member unless the provisions of this Chapter are complied with.

Application for payment of benefits

159

(1) A person (P) must apply in writing to the scheme manager for payment of benefits.

(2) P must satisfy a written request from the scheme manager to provide any information specified in the request.

(3) The information must be information—

(a) in P’s possession; or

(b) which P can reasonably be expected to obtain.

CHAPTER 2 — Payment of pensions

Payment of pension

160

(1) This regulation applies to the payment of a pension.

(2) A pension is normally to be paid monthly, but—

(a) may, on the application of the person entitled to it, be paid quarterly; or

(b) may be paid in such instalments and at such intervals as the scheme manager may think appropriate.

(3) Where payment of any such sum is due in respect of a period which is less than the interval at which it is payable—

(a) the amount payable in respect of each complete month of the period shall be 1/12th of the annual rate of the sum; and

(b) the amount payable in respect of a period of less than 1 complete month shall be—

$A 12 × B C$

(4) In paragraph (3)(b)—

(a) A is the annual rate of the pension;

(b) B is the number of days in respect of which the benefit is payable; and

CHAPTER 3 — Payment of lump sums

Member declaration

161

(1) The scheme manager may not pay a member a lump sum under this Chapter unless the member declares in writing that, on payment of the lump sum, paragraph 3A of Schedule 29 to FA 2004[^f00025] would not apply.

(2) The declaration must be—

(a) signed by the member;

(b) in a form specified by the scheme manager; and

Commutation of part of pension

162

(1) The following members may apply to the scheme manager to receive a lump sum in place of part of a pension—

(a) a member who is entitled to payment of a retirement pension;

(b) a pension credit member who is entitled to payment of a pension credit retirement pension.

(2) Paragraph (1)(b) only applies if—

(a) the member’s pension credit is derived from rights attributable to the pensionable service of a pension debit member; and

(b) a retirement pension does not become payable to the pension debit member before the transfer day in respect of that pensionable service.

(3) An application under this regulation must—

(a) be in writing;

(b) be made when the member applies under regulation 159 for payment of the pension; and

Amount of lump sum payable under regulation 162

163

The amount of a lump sum payable under regulation 162 must—

(a) be a multiple of £12; and

(b) not exceed P’s permitted maximum.

Commutation amount for lump sum payable under regulation 162

164

(1) For the purpose of calculating the annual rate of pension payable to a member (P) who receives a lump sum under regulation 162, the commutation amount is 1/12th of the amount of the lump sum.

(2) If a retirement pension commuted under regulation 165 ceases to be payable under regulation 94 or 111, the commutation amount for any retirement pension that subsequently becomes payable to P is an amount determined by the scheme manager after consulting the scheme actuary.

Commutation of whole pension (serious ill-health)

165

(1) This regulation applies to a member (P) who, on the entitlement day for a pension, has a life expectancy of less than a year.

(2) P may apply to the scheme manager to receive a lump sum instead of the pension.

(3) The application must—

(a) be in writing;

(b) be made when P applies under regulation 159 for payment of the pension; and

(c) be accompanied by all the medical evidence necessary for the scheme manager to determine that P is entitled to payment of the lump sum.

(4) If P is eligible to apply under regulation 162 to receive a lump sum under that regulation—

(a) the largest permissible lump sum is to be paid under that regulation; and

(b) the commutation amount under that regulation is to be deducted when calculating the annual rate under regulation 166.

(5) In this regulation, “pension” means—

(a) an age retirement pension and any phased retirement pension payable with it;

(b) an ill-health pension and a total incapacity pension or phased retirement pension payable with it; or

Amount of lump sum payable under regulation 165 instead of retirement pension

166

(1) This regulation applies to a member (P) who applies under regulation 165 to receive a lump sum instead of a retirement pension.

(2) The amount of the lump sum payable to P is the total of—

(a) for an age retirement pension, ill health pension or total incapacity pension, a sum equal to 5 x the annual rate of the retirement pension; and

(b) for a phased retirement pension that is already in payment, a sum equal to—

(A-B) x the annual rate of the phased retirement pension

where—

A is 5, and

B is the period (in years and fractions of a year) from the date on which the phased retirement pension was first paid until the date of the application[^f00026].

Amount of lump sum payable under regulation 165 instead of a pension credit retirement pension

167

(1) This regulation applies to a member (P) who applies under regulation 165 to receive a lump sum instead of a pension credit retirement pension.

(2) The amount of the lump sum payable to P is an amount equal to 5 times the annual rate of the pension credit retirement pension.

Commutation: small pensions

168

(1) If paragraph (2) applies, the scheme manager may, on the application of a member (P), commute a retirement pension by paying a lump sum to P.

(2) This paragraph applies if—

(a) the lump sum is a trivial commutation lump sum as defined in paragraphs 7 and 7A of Schedule 29 to FA 2004 or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009[^f00027];

(b) the application under paragraph (1) is made when P applies under regulation 159 for payment of the retirement pension;

(d) a transfer value payment or cash transfer sum has not been accepted under Part 10 in respect of P’s rights accrued under a personal pension scheme; and

(e) in the 5 years ending with the date of the application, a transfer value payment or cash transfer sum has not been accepted under Part 10 in respect of rights accrued under another occupational pension scheme.

(3) If a lump sum is paid under paragraph (1), benefits are not payable under Part 6 on P’s death.

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