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The Teachers’ Pension Scheme Regulations 2014

Type Statutory-Instrument

Publication 2014-03-05

Last updated 2025-04-06

State In force

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Made: 5th March 2014

Laid before Parliament: 7th March 2014

Coming into force in accordance with regulation 1(2)

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 1(1) , (2)(d) , (3) and (4), 2 , 3(1), (2), (3)(a) and (c) and (4), 4(1) and (3) , 5(1), (2) and (4) , 7(1) and (4) , 8(1)(a) and (2)(a), 14, 18(1), (2), (4)(b) and (5) to (9) and paragraph (c) of the definition of “employer” in section 37, and paragraph 4 of Schedule 1, paragraph 4(a) of Schedule 2, Schedule 3, paragraph 18 of Schedule 5, paragraph 6 of Schedule 6, and paragraphs 1(2)(ii), 2(2)(ii) and 5 of Schedule 7 to the Public Service Pensions Act 2013 .

In accordance with section 21 of that Act, the Secretary of State has consulted the representatives of such persons as appear to the Secretary of State likely to be affected by these Regulations.

In accordance with section 3(5) of that Act, these Regulations are made with the consent of the Treasury.

PART 1 — Preliminary

Citation, extent and commencement

1

(1) These Regulations—

(a) may be cited as the Teachers' Pension Scheme Regulations 2014; and

(b) extend to England and Wales.

(2) These Regulations come into force as follows—

(a) this Part and Part 2 come into force on 1st April 2014;

(b) the remaining provisions come into force on 1st April 2015.

Establishment of Teachers' Pension Scheme 2015

2

(1) These Regulations establish a scheme for the payment of pensions and other benefits to or in respect of teachers in England and Wales.

(2) For the purpose of these Regulations, a person in an eligible employment is a teacher.

(3) This scheme is to be known as the Teachers' Pension Scheme 2015.

Interpretation

3

In these Regulations—

“the Act” means the Public Service Pensions Act 2013;

“EA 2002” means the Education Act 2002 ;

“FA 2004” means the Finance Act 2004 ;

“PA 1995” means the Pensions Act 1995 ;

“PA 2008” means the Pensions Act 2008 ;

“PIA 1971” means the Pensions (Increase) Act 1971 ;

“PSA 1993” means the Pension Schemes Act 1993 ;

“WRPA 1999” means the Welfare Reform and Pensions Act 1999 ;

“accepted member” has the meaning given in Part 1 of Schedule 1;

“accrual rate” means the fraction of pensionable earnings that accrue as earned pension for a financial year;

“accrued additional pension”—for the purpose of a full retirement pension, has the meaning given in regulation 46;for the purpose of a phased retirement pension, has the meaning given in regulation 47;

“accrued club transfer earned pension”—for the purpose of a full retirement pension, has the meaning given in regulation 46;for the purpose of a phased retirement pension, has the meaning given in regulation 47;

“accrued earned pension”—for the purpose of a full retirement pension, has the meaning given in regulation 46;for the purpose of a phased retirement pension, has the meaning given in regulation 47;

“accrued pension” means—accrued earned pension;accrued club transfer earned pension (if any); andaccrued additional pension (if any);

“accrued rights” does not include a right to benefits attributable (directly or indirectly) to a pension credit;

“active member”, in relation to this scheme, means a person who is in pensionable service under this scheme;

“active member's account” has the meaning given in regulation 50;

“actuarial”, in relation to a calculation or value, means determined by, or in accordance with tables or guidance prepared by, the scheme actuary;

“actuarial adjustment” has the meaning given in Chapter 7 of Part 4;

“additional pension” means—additional (self only) pension; oradditional (surviving adult) pension;

“additional pension account” has the meaning given in Chapter 5 of Part 4;

“additional pension contributions” has the meaning given in Part 1 of Schedule 2;

“additional pension election” has the meaning given in Part 1 of Schedule 2;

“additional (self only) pension” means an additional pension payable to a pensioner member;

“additional (surviving adult) pension” means an additional pension payable to the member's surviving adult after the member has died;

“adoption leave” has the meaning given in regulation 2(1) of the Paternity and Adoption Leave Regulations 2002 ;

“age retirement pension” means a pension payable under Chapter 2 of Part 5;

“amount of credited pension” has the meaning given in regulation 80(3);

“annual amount of pensionable earnings”, in relation to any year, means the amount of pensionable earnings payable in that year;

“annual rate of pensionable earnings” means—for a member who is in pensionable service in relation to one full-time employment only, the annual rate of pensionable earnings for that employment;for a member who is in pensionable service in relation to one part-time employment only, the annual rate of pensionable earnings that would be payable if that employment were a full-time employment;for a member who is in pensionable service in relation to one irregular employment only, the annual rate of pensionable earnings that would be payable if that employment were a full-time employment; andfor a member who is in pensionable service in relation to more than one employment, the member's full-time equivalent annual rate of pensionable earnings calculated under Chapter 5 of Part 3;

“balance of contributions” means the amount of contributions repayable under regulation 189;

“buy-out contributions” has the meaning given in Part 1 of Schedule 2;

“carer’s leave” means leave under section 80J of the Employment Rights Act 1996;

“cash transfer sum” has the meaning given in section 101AB of PSA 1993 ;

“child pension” means a pension payable under regulation 149;

“club scheme” means a registered occupational pension scheme (other than a connected scheme) that has agreed to make and receive transfer value payments under the club transfer arrangements;

“club transfer” means a transfer to or from this scheme under the club transfer arrangements;

“club transfer arrangements” means arrangements approved by the scheme manager as providing reciprocal arrangements between this scheme and other registered occupational pension schemes for making and receiving transfer value payments;

“club transfer earned pension” means pension attributable to the receipt of a club transfer value;

“club transfer value”, in relation to earned pension accrued under this scheme or under another club scheme, has the meaning given in Part 10 (transfers);

“conversion amount” has the meaning given in regulation 75;

“connected scheme” has the meaning given in regulation 4;

“continuity of service”, in relation to a transition member, has the meaning given in Part 1 of Schedule 3;

“contributions equivalent premium” means a premium under section 55(2) of PSA 1993;

“contracting scheme employer” has the meaning given in Part 1 of Schedule 1;

“death grant” means a death grant under Part 6;

“deferred member”, in relation to this scheme, means a person (other than an active member or pensioner member of this scheme) who has accrued rights under this scheme;

“deferred member's account” has the meaning given in Chapter 6 of Part 4;

“dual capacity member” has the meaning given in regulation 21;

“early retirement pension” means a pension payable under regulation 104;

“earned pension” means pension calculated by reference to a member's pensionable earnings;

“eligible child” has the meaning given in regulation 137;

“eligible employment” has the meaning given in Part 3;

“employed” means employed under a contract of employment;

“employer”, for a person employed by the governing body of a school maintained by a local authority, means—the local authority; orfor the purpose of an additional pension election, the local authority and the governing body;

“employment” means employment under a contract of employment;

“entitlement day”, in relation to a benefit payable under a Chapter in Part 5, has the meaning given in that Chapter;

“existing Fair Deal arrangements” has the meaning given in Part 1 of Schedule 3;

“an existing club scheme” means a registered occupational pension scheme which belonged to the transfer club on the scheme closing date;

“an existing scheme” means an existing scheme as defined in section 18(2) of the Act;

“the existing scheme” means the scheme constituted by regulations made under section 9 of the Superannuation Act 1972 (whether made before or after the coming into force of these Regulations);

“the existing scheme regulations” means the Teachers’ Pension Regulations 2010;

“Fair Deal transfer” has the meaning given in Part 1 of Schedule 1;

“Fair Deal transfer date” has the meaning given in Part 1 of Schedule 1;

“faster accrual contributions” has the meaning given in Part 1 of Schedule 2;

“faster accrual earned pension”, in relation to a financial year, means the amount of earned pension calculated by applying the faster accrual rate to the member's pensionable earnings for that year;

“faster accrual election” has the meaning given in Part 1 of Schedule 2;

“financial year” means the 12 months ending with 31st March in any year;

“full protection member” has the meaning given in Part 2 of Schedule 3;

“full retirement additional pension” has the meaning given in regulation 70;

“full retirement earned pension” has the meaning given in regulation 69;

“full retirement pension” means—a full retirement earned pension; anda full retirement additional pension (if any);

“full-time”, in relation to employment, has the meaning given in regulation 16(a);

“function provider” has the meaning given in Part 1 of Schedule 1;

“GMP age” means 65 in the case of a man or 60 in the case of a woman;

“guaranteed minimum” means a guaranteed minimum under section 14 of PSA 1993;

“guaranteed minimum pension” has the meaning given in section 8(2) of PSA 1993;

“ill-health pension” means a pension payable under regulation 110;

“ill-health retirement benefits” means—an ill-health pension; anda lump sum payable under regulation 168 in place of part of that pension;

“incapacitated” has the meaning given in Chapter 6 of Part 5 (ill-health retirement);

“index adjustment” means—in relation to the opening balance of earned pension for any financial year (other than the opening balance of club transfer earned pension), means the percentage increase or decrease in prices specified in the Treasury order for the previous financial year, plus 1.6%; andin relation to the opening balance of club transfer earned pension for any financial year, means the adjustment that would apply to the opening balance of that amount of earned pension under the sending scheme for the previous financial year;

“initial payment” has the meaning given in regulation 164 or 165;

“last active financial year” has the meaning given in regulation 46;

“last day of pensionable service”, in relation to a member, means the day on which a member leaves all pensionable service;

“leaver index adjustment” has the meaning given in Chapter 1 of Part 4;

“leaver PIA index adjustment” has the meaning given in Chapter 1 of Part 4;

“local authority” means—a county council,a metropolitan district council,a non-metropolitan district council for an area for which there is no county council,a county borough council (in Wales),a London borough council,the Common Council of the City of London,the Council of the Isles of Scilly;

“maternity leave” means ordinary maternity leave or additional maternity leave within the meaning of the Maternity and Parental Leave etc. Regulations 1999 ;

“member”, in relation to this scheme, means an active member, deferred member, pensioner member or pension credit member;

“members' contributions” means contributions payable under regulation 185(1) on pensionable earnings;

“members' contributions rate” has the meaning given in regulation 185;

“neonatal care leave” means leave under section 80EF of the Employment Rights Act 1996;

“non-pensionable family leave” means a period of adoption leave, maternity leave, parental leave, shared parental leave , parental bereavement leave , paternity leave carer’s leave or neonatal care leave ... during which the employee—does not receive any statutory pay; andis not paid a salary or is paid less than half the salary;

“non-pensionable sick leave” means a period of sick leave taken by an employee with the consent of the employer, during which the employee—does not receive any statutory pay; andis not paid a salary or is paid less than half the employee's salary;

“normal minimum pension age” has the same meaning as in section 279(1) of FA 2004;

“normal pension age”—in relation to this scheme, is determined in accordance with section 10 of the Act; andin relation to the existing scheme, has the meaning given in that scheme;

“occupational pension scheme” has the meaning given in section 1 of PSA 1993;

“opening balance”, in relation to earned pension or transferred pension, has the meaning given in regulation 54;

“opening balance”, in relation to additional pension, has the meaning given in regulation 59;

“parental bereavement leave” has the meaning given in regulation 3 of the Parental Bereavement Leave Regulations 2020;

“parental leave” means leave within the meaning of Part 3 of the Maternity and Parental Leave etc. Regulations 1999;

“Participation Agreement” has the meaning given in Part 1 of Schedule 1;

“part-time”, in relation to employment, has the meaning given in regulation 16(b);

“paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002 ;

“pay order” means an order under section 122 of EA 2002, for the time being in force and includes any document referred to in such an order;

“pay period”, in relation to the payment of a member's pensionable earnings, means the period in respect of which the payment is made;

“pension credit” has the meaning given in Chapter 1 of Part 7 (benefits for pension credit members);

“pension credit member” has the meaning given in Chapter 1 of Part 7;

“pension credit member's account” has the meaning given in regulation 80;

“pension credit retirement pension” has the meaning given in Chapter 1 of Part 7;

“pension debit member” has the meaning given in Chapter 1 of Part 7;

“pensionable earnings” has the meaning given in Chapter 4 of Part 3;

“pensioner member”, in relation to this scheme, means a person who is entitled to payment of a retirement pension under this scheme;

“pensioner member's account” has the meaning given in regulation 76;

“pension-sharing order” means any provision or order specified in section 28 of WRPA;

“period of permanent service”, in relation to service in the armed forces, has the meaning given in regulation 26;

“permitted maximum” means the amount determined in accordance with paragraph 2 of Schedule 29 to FA 2004;

“personal pension scheme” means a personal pension scheme as defined in section 1 of PSA 1993 that is a registered pension scheme;

“phased retirement application” has the meaning given in Chapter 3 of Part 5;

“phased retirement additional pension” has the meaning given in regulation 72;

“phased retirement earned pension” has the meaning given in regulation 71;

“phased retirement pension” means—a phased retirement earned pension; anda phased retirement additional pension (if any);

“phased retirement proportion” means the proportion of accrued earned pension specified in a phased retirement application;

“PIA index adjustment”, in relation to the opening balance of additional pension for any financial year, means the amount by which the annual rate of a pension of an amount equal to the opening balance would have been increased in that year under PIA 1971 if—that pension were eligible to be so increased; andthe beginning date for that pension were the first day of the previous financial year;

“post-benefit service” has the meaning given in regulation 83(3);

“premature retirement pension” means a pension payable under regulation 101;

“prospective normal pension age”, in relation to a member's prospective entitlement to benefits under this scheme, means the normal pension age that the scheme manager determines (by reference to Treasury directions made under section 11(2) of the Act) would apply in relation to those benefits;

“protected member” has the meaning given in Part 1 of Schedule 3;

“public service scheme” means a scheme under section 1 of the Act;

“qualified”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 82;

“registered”, in relation to a pension scheme, means registered under Chapter 2 of Part 4 of FA 2004;

“re-qualified”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 83;

“retirement benefits” means—a retirement pension; andany lump sum payable under regulation 168 in place of part of that pension;

“retirement pension” means—an age retirement pension;a phased retirement pension;a premature retirement pension;an early retirement pension;an ill-health pension;a total incapacity pension;

“salary” means gross salary payable under a contract of employment;

“this scheme” means the scheme established by these Regulations;

“scheme actuary” means the person appointed by the scheme manager for the time being to provide a consulting service on actuarial matters;

“scheme closing date” has the meaning given in Part 1 of Schedule 3;

“scheme manager” has the meaning given in Part 2;

“sending scheme” means a pension scheme to which an application is made for payment of a transfer value or a club transfer value;

“shared parental leave” has the meaning given in regulation 3(1) of the Shared Parental Leave Regulations 2014;

“short-service serious ill-health grant” means a grant payable under Chapter 7 of Part 5;

“standard accrual rate”, in relation to a member's pensionable earnings, means 1/57th;

“standard earned pension”, in relation to a financial year, means the amount of earned pension calculated by applying the standard accrual rate to the member's pensionable earnings for that year;

“standard increase”, in relation to pensionable earnings, has the meaning given in Chapter 4 of Part 3;

“standard rate”, in relation to interest, means the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury;

“standard reduction” has the meaning given in Chapter 7 of Part 4;

“statutory pay” means—statutory adoption pay, statutory maternity pay or statutory paternity pay within the meaning of the Social Security Contributions and Benefits Act 1992 , ...statutory neonatal care pay payable in accordance with Part 12ZE of the Social Security Contributions and Benefits Act 1992,... statutory shared parental pay payable in accordance with Part 12ZC of the Social Security Contributions and Benefits Act 1992 , or statutory parental bereavement pay payable in accordance with Part 12ZD of the Social Security Contributions and Benefits Act 1992;

“surviving adult” has the meaning given in regulation 134;

“surviving adult pension” means a pension payable under regulation 142;

“surviving civil partner” means a person who, at the time of a member's death, was in a civil partnership with the member;

“surviving nominated beneficiary” has the meaning given in regulation 136;

“surviving qualifying partner” has the meaning given in regulation 135;

“surviving spouse” means a person who, at the time of a member's death, was married to the member;

“survivor's pension” has the meaning given in Chapter 1 of Part 6;

“tapered protection member” has the meaning given in Part 3 of Schedule 3;

“total incapacity benefits” means—a total incapacity pension; anda lump sum payable under regulation 168 in place of part of that pension;

“total incapacity pension” means a pension payable under regulation 116;

“transfer club” means the club of registered occupational pension schemes which make and receive transfer value payments under the club transfer arrangements;

“transfer payment” means a transfer value payment or a cash transfer sum made or received by this scheme in relation to a member;

“transfer value”, in relation to accrued rights other than rights to earned pension accrued under this scheme or under another club scheme, has the meaning given in Part 10 (transfers);

“transfer value payment” means—the payment of a transfer value or club transfer value under Part 10 (transfers); orthe payment of a transfer value under Chapter 4 of Part 4 of PSA 1993;

“transferred pension” means pension attributable to the receipt of a transfer value;

“transition member” has the meaning given in Part 4 of Schedule 3;

“the Treasury order”, in relation to a given period, means the Treasury order made under section 9(2) of the Act that specifies a percentage increase or decrease in prices in relation to that period;

“TUPE transfer” means a transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 .

Connected schemes

4

(1) In these Regulations, “connected scheme” means another statutory pension scheme that is connected, within the meaning of section 4(6) of the Act, with this scheme.

(2) The scheme established by the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994 is not a connected scheme.

Leaving pensionable service

5

(1) For the purpose of these Regulations, a person (P) leaves all pensionable service—

(a) if P is in pensionable service in relation to one employment only, when P leaves pensionable service in relation to that employment; or

(b) if P is in pensionable service in relation to more than one employment, when P leaves pensionable service in relation to all those employments.

(2) For the purpose of these Regulations, P leaves pensionable service in relation to an eligible employment when—

(a) P begins a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave in relation to that employment;

(b) P opts out of this scheme in relation to that employment; or

Leaving eligible employment

6

(1) For the purpose of these Regulations, a person (P) leaves all eligible employment—

(a) if P is in one eligible employment only, when P leaves that employment; or

(b) if P is in more than one eligible employment, when P leaves all those employments.

(2) For the purpose of these Regulations—

(a) P leaves an eligible employment when P ends a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave in relation to that employment and does not return to that employment; but

(b) P does not leave an eligible employment unless at least one complete day has passed since P's last day in that employment.

PART 2 — Governance

Scheme manager

7

(1) The Secretary of State is the scheme manager for this scheme and any connected scheme.

(2) The scheme manager is responsible for managing this scheme and any connected scheme.

(3) The responsible authority may delegate any functions of the scheme manager under these Regulations, including this power to delegate.

Establishment of pension board

8

(1) A pension board (“the Teachers' Pension Scheme Pension Board”) is established.

(2) The Teachers' Pension Scheme Pension Board is responsible for assisting the scheme manager in relation to securing compliance with—

(a) these Regulations;

(b) any other legislation relating to the governance and administration of this scheme and any connected scheme; and

(3) The scheme manager is to determine the process by which the Teachers' Pension Scheme Pension Board discharges its functions.

Membership of pension board

9

(1) Subject to paragraph 2, the scheme manager may determine—

(a) the membership of the Teachers' Pension Scheme Pension Board;

(b) the manner in which the Teachers' Pension Scheme Pension Board members may be appointed and removed; and

(2) The Teachers' Pension Scheme Pension Board is to include equal numbers representing the employers and members.

Conflict of interest

10

(1) The scheme manager must be satisfied that any person to be appointed as a member of the Teachers' Pension Scheme Pension Board does not have a conflict of interest .

(2) The scheme manager must be satisfied from time to time that none of the members of the Teachers' Pension Scheme Pension Board has a conflict of interest.

(3) A person who is to be appointed as a member of the Teachers' Pension Scheme Pension Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (1).

(4) A person who is a member of the Teachers' Pension Scheme Pension Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (2).

Establishment of scheme advisory board

11

(1) A scheme advisory board (“the Teachers' Pension Scheme Advisory Board”) is established.

(2) The Teachers' Pension Scheme Advisory Board is responsible for providing advice to the scheme manager, at the scheme manager's request, on the desirability of changes to this scheme.

(3) The scheme manager is to determine the process by which the Teachers' Pension Scheme Advisory Board discharges its functions.

Membership of scheme advisory board

12

The scheme manager may determine—

(a) the membership of the Teachers' Pension Scheme Advisory Board;

(b) the manner in which the Teachers' Pension Scheme Advisory Board members may be appointed and removed; and

Conflict of interest

13

(1) The scheme manager must be satisfied that any person to be appointed as a member of the Teachers' Pension Scheme Advisory Board does not have a conflict of interest.

(2) The scheme manager must be satisfied from time to time that none of the members of the Teachers' Pension Scheme Advisory Board has a conflict of interest.

(3) A person who is to be appointed as a member of the Teachers' Pension Scheme Advisory Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (1).

(4) A person who is a member of the Teachers' Pension Scheme Advisory Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (2).

PART 3 — Scheme membership

CHAPTER 1 — Interpretation

Meaning of “an eligible employment”

14

An eligible employment is an employment mentioned in Part 2, 3 or 4 of Schedule 1.

Meaning of “P's automatic enrolment date” and “P's automatic re-enrolment date”

15

For the purpose of this Part—

(a) “P's automatic enrolment date” is the date on which section 3 of PA 2008 applies to a person (P) in relation to P's eligible employment; and

(b) “P's automatic re-enrolment date” is a date determined under regulation 12 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 in relation to P's eligible employment.

Meaning of “full-time” and “part-time” employment

16

For the purpose of these Regulations—

(a) an employment is “full-time” if the contract of employment describes it as full-time (whether in those terms or otherwise); and

(b) an employment is “part-time” if the contract of employment describes it as part-time (whether in those terms or otherwise).

Meaning of “irregular employment”

17

(1) For the purpose of these Regulations, an employment is an irregular employment if the contract of employment requires the employee—

(a) to be available for work for the period specified in the contract of employment, and

(b) to undertake and be remunerated for work during that period only when so required by the employer.

(2) A person in pensionable service in relation to an irregular employment is in pensionable service for the period specified in the contract of employment.

Meaning of “opt-out notice” and “opt-in notice”

18

For the purpose of these Regulations—

(a) “opt-out notice”, in relation to service in an eligible employment, means a notice under regulation 28 or 31; and

(b) “opt-in notice”, in relation to service in an eligible employment, means a notice under regulation 29 or 32.

CHAPTER 2 — Membership

Eligibility for active membership

19

(1) A person (P) is eligible to be an active member of this scheme if—

(a) P is in an eligible employment; and

(b) P has reached 16 and has not reached 75.

(2) P is not eligible to be an active member of this scheme if

(a) P is employed in an accepted school in which P has a financial interest;

(b) P is a full protection member of the existing scheme;

(d) P satisfies the conditions in regulation 7(10) of the existing scheme regulations.

(3) In this regulation—

“a financial interest” does not include the right to receive a salary; and

“accepted school” has the meaning given in paragraph 2 of Schedule 1.

More than one employment

20

A person may be an active member of this scheme in relation to more than one employment.

Dual capacity membership

21

(1) A person is a dual capacity member of this scheme if the person is a member in 2 or more of the following capacities—

(a) an active member;

(b) a deferred member;

(2) In determining whether a person who is an active member is also a pensioner member, the fact that the person is an active member and the person's rights in that capacity are to be disregarded.

(3) In determining whether a person who is an active member or a pensioner member is also a deferred member, the fact that the person is an active member or a pensioner member and the person's rights in that capacity are to be disregarded.

Payment of retirement benefits to dual capacity members

22

Retirement benefits under this scheme are payable to a dual capacity member as if the member were 2 or more members and the amounts payable are determined accordingly .

CHAPTER 3 — Pensionable service

SECTION 1 — General provisions

Service not pensionable unless member is entitled to pay

23

(1) A person (P) in an eligible employment is not in pensionable service in relation to that employment unless P is entitled to be paid—

(a) P's salary in respect of that employment;

(b) if P is on adoption leave, maternity leave, parental leave, shared parental leave , parental bereavement leave , neonatal care leave, paternity leave or carer’s leave ...—

(i) at least half P's salary in respect of that employment; or

(ii) statutory pay; or

(2) P is not in pensionable service in relation to an employment during a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave from that employment.

Service not pensionable unless members' contributions are paid

24

(1) The scheme manager may decide that a period of service in respect of which members' contributions are not paid is not a period of pensionable service if—

(a) the scheme manager has sent the member a demand under regulation 194 (“the demand”) in respect of those contributions; and

(b) within 3 years after the date of the demand, the member has not paid the whole of the amount and interest stated in the demand;

but this is subject to paragraph (3)

(2) The period of service is not a period of pensionable service if the scheme manager—

(a) gives the member written notice to that effect; and

(b) repays the member any amount paid in part satisfaction of the demand;

but this is subject to paragraph (3)

(3) A period within the previous provisions of this regulation counts as a period of pensionable service to the extent that regulation 192(2) covers it.

SECTION 2 — Service in Her Majesty's armed forces

Pensionable service – armed forces service

25

For the purpose of these Regulations, a person is in pensionable service during any period of permanent service in the armed forces in respect of which an election under regulation 26 has effect or is taken to have effect.

Election for armed forces service to be pensionable

26

(1) This regulation applies in relation to an active member (P) who is called out, or recalled, for permanent service in Her Majesty's armed forces under a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996 .

(2) P may by written notice to the scheme manager elect to treat the period of permanent service as pensionable service.

(3) For the purpose of these Regulations, P leaves all pensionable service from the beginning of the period of permanent service if P does not make an election within 6 months after the period of permanent service ends.

(4) If P makes an election, the scheme manager must give P a written notice setting out the contributions payable in respect of the period of permanent service.

(5) The election has effect from the beginning of the period of permanent service if—

(a) P pays the contributions by lump sum within 3 months after receiving the notice; or

(b) P pays contributions by monthly payments in accordance with regulation 187 in respect of the whole period.

(6) If P only pays contributions in respect of part of the period of permanent service, the election has effect only in respect of that part of the period.

(7) In this regulation, a period of permanent service begins when P is called out or recalled and ends on whichever is the earlier of—

(a) the day on which P's permanent service ends, or

(b) the day on which P begins to accrue benefits under the Armed Forces Pension Scheme or any other occupational pension scheme in respect of P's permanent service.

(8) If P dies while in permanent service and P has not made an election—

(a) P is taken to have made an election;

(b) any contributions payable are to be deducted from any benefits payable under these Regulations; and

SECTION 3 — Pensionable service on or after automatic enrolment date

Pensionable service on or after automatic enrolment date

27

(1) This Section applies in relation to a person (P) who—

(a) is eligible to be an active member of this scheme; and

(b) is in an eligible employment on or after P's automatic enrolment date for that employment.

(2) P is in pensionable service in relation to that employment if—

(a) the employment is mentioned in Part 2 of Schedule 1 and an opt-out notice under this Section does not have effect in relation to service in that employment;

(b) the employment is mentioned in Part 3 or 4 of Schedule 1 and—

(i) P's employer has made arrangements for P to be an active member of this scheme in relation to service in that employment; and

(ii) an opt-out notice under this Section does not have effect in relation to service in that employment; or

(i) immediately before P's automatic enrolment date for that employment, an opt-in notice under Section 4 had effect in relation to service in that employment; and

(ii) an opt-out notice under this Section does not have effect in relation to service in that employment.

Opting out of this scheme after automatic enrolment date

28

(1) A person (P) opts out of this scheme in relation to service in an eligible employment if P opts not to be an active member of this scheme in relation to that service.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-out notice”).

(3) An opt-out notice has effect as follows—

(a) if the scheme manager receives the opt-out notice within 3 months after P enters the employment, from the first day of the employment;

(b) if sub-paragraph (a) does not apply and the scheme manager receives the opt-out notice within 3 months after P's automatic enrolment date for the employment, from P's automatic enrolment date;

(c) if neither sub-paragraph (a) nor (b) applies and the scheme manager receives the opt-out notice within 3 months after P's automatic re-enrolment date, from P's automatic re-enrolment date;

(d) otherwise, from the first day of the month after the month in which the scheme manager receives the opt-out notice.

(4) An opt-out notice ceases to have effect from the earliest of—

(a) the date on which a subsequent opt-in notice has effect in relation to service in that employment,

(b) P's automatic re-enrolment date for that employment, and

Opting into this scheme after automatic enrolment date

29

(1) A person (P) opts into this scheme in relation to service in an eligible employment if P opts to become an active member of this scheme in relation to service in that employment.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-in notice”).

(3) P may opt into this scheme in relation to service in an employment if—

(a) the employment is mentioned in Part 2 of Schedule 1, and P has previously opted out of this scheme in relation to service in that employment; or

(b) the employment is mentioned in Part 3 or 4 of Schedule 1, and P's employer has consented to P opting into this scheme.

(4) For an employment mentioned in Part 2 of Schedule 1, an opt-in notice has effect—

(a) if the scheme manager receives the opt-in notice not later than 3 months after P enters the employment, from the first day of the employment; or

(b) if sub-paragraph (a) does not apply, from the first day of the month after the month in which the scheme manager receives the opt-in notice.

(5) For an employment mentioned in Part 3 or 4 of Schedule 1—

(a) if the scheme manager receives both the opt-in notice and P's employer's written consent to the exercise of the option not later than 3 months after P enters the employment, the opt-in notice has effect from the first day of the employment;

(b) if sub-paragraph (a) does not apply, the opt-in notice has effect from the later of—

(i) the first day of the month after the month in which the scheme manager receives the opt-in notice, and

(ii) the first day of the month after the month in which the scheme manager receives P's employer's written consent to the exercise of the option.

(6) An opt-in notice ceases to have effect from the date on which a subsequent opt-out notice has effect.

SECTION 4 — Pensionable service before automatic enrolment date

Pensionable service before automatic enrolment date

30

(1) This Section applies in relation to a person (P) who—

(a) is eligible to be an active member of this scheme; and

(b) is in an eligible employment before P's automatic enrolment date for that employment.

(2) P is in pensionable service in relation to that employment if—

(a) the employment is mentioned in Part 2 of Schedule 1, and an opt-out notice under this Section does not have effect in relation to service in that employment; or

(b) the employment is mentioned in Part 3 or 4 of Schedule 1, and an opt-in notice under this Section has effect in relation to service in that employment.

Opting out of this scheme before automatic enrolment date

31

(1) A person (P) opts out of this scheme in relation to service in an eligible employment if P opts not to be an active member of this scheme in relation to that service.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-out notice”).

(3) An opt-out notice has effect—

(a) if the scheme manager receives the opt-out notice no later than 3 months after P enters the employment, from the first day of the employment; or

(b) otherwise, from the first day of the month after the month in which the scheme manager receives the opt-out notice.

(4) An opt-out notice ceases to have effect from the earliest of—

(a) the date on which a subsequent opt-in notice has effect;

(b) P's automatic enrolment date for that employment; and

Opting into this scheme before automatic enrolment date

32

(1) A person (P) opts into this scheme in relation to service in an eligible employment if P opts to become an active member of this scheme in relation to service in that employment.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-in notice”).

(3) P may opt into this scheme in relation to service in an employment if—

(a) the employment is mentioned in Part 2 of Schedule 1 and an opt-out notice has effect;

(b) the employment is mentioned in Part 3 of Schedule 1; or

(4) For an employment mentioned in Part 2 or 3 of Schedule 1, an opt-in notice has effect—

(a) if the scheme manager receives the opt-in notice not later than 3 months after P enters the employment – from the first day of the employment; or

(b) if sub-paragraph (a) does not apply, from the first day of the month after the month in which the scheme manager receives the opt-in notice.

(5) For an employment mentioned in Part 4 of Schedule 1—

(a) if the scheme manager receives the opt-in notice and P's employer's written consent to the exercise of the option not later than 3 months after P enters the employment – the opt-in notice has effect from the first day of the employment;

(b) if sub-paragraph (a) does not apply, the opt-in notice has effect from the later of—

(i) the first day of the month after the month in which the scheme manager receives the opt-in notice; and

(ii) the first day of the month after the month in which the scheme manager receives P's employer's written consent to the exercise of the option.

(6) An opt-in notice ceases to have effect from the date on which a subsequent opt-out notice has effect.

CHAPTER 4 — Pensionable earnings

Interpretation

33

In this Chapter—

“notional pensionable earnings” means the amount by which a member's pensionable earnings are reduced during—a period of sick leave (other than a period of non-pensionable sick leave); ora period of adoption leave, maternity leave, parental leave, shared parental leave , parental bereavement leave , neonatal care leave, paternity leave or carer’s leave ... (other than a period of non-pensionable family leave);

“notional salary”, in relation to a period of permanent service in respect of which an election under regulation 26 has effect or is taken to have effect, means P's pensionable earnings for the pay period immediately before the period of permanent service began, increased by—the amount (if any) of any standard increase applied in relation to P's eligible employment during P's period of permanent service; andthe amount (if any) by which those pensionable earnings together with any standard increase would have been increased if they had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the day after the day on which the period of permanent service began;

“residential accommodation” means residential accommodation provided to a person (P) in connection with P's employment;

“residential benefits in kind” means—any residential accommodation provided to a person (P);any heat, lighting or water provided free in respect of residential accommodation; andany council tax paid on P's behalf in respect of residential accommodation;

“salary sacrifice arrangement” means—if a person (P) is a school teacher, an arrangement specified in a pay order under which P gives up the right to receive part of P's salary in return for P's employer agreeing to provide P with benefits in kind as specified in the pay order;if P is not a school teacher, an arrangement of the type mentioned in sub-paragraph (a) in which P's employer agrees to provide P with benefits in kind of an identical description to those specified in a pay order;

“school teacher” means a school teacher for the purpose of section 122 of EA 2002; and

“standard increase” means an increase in pensionable earnings that—is applied generally to employees in P's position under a pay order or by P's employer; andis unrelated to any change in P's duties or hours of work or otherwise to the particular circumstances of P's case.

Pensionable earnings for school teachers

34

(1) This regulation applies to an active member (P) who is a school teacher.

(2) P's pensionable earnings for any pay period are the sum of the following amounts paid in that pay period to P by P's employer in respect of P's pensionable service—

(a) all salary and allowances paid for the performance of P's contractual duties in accordance with a pay order;

(b) the amount of any payment in respect of overtime;

(c) any salary or statutory pay paid while P is on sick leave, carer’s leave, maternity leave, paternity leave, ... parental leave shared parental leave , parental bereavement leave neonatal care leave, or adoption leave;

(d) an amount equal to any part of P's salary which P has given up the right to receive under a salary sacrifice arrangement.

(3) P's pensionable earnings do not include any amounts mentioned in regulation 36.

Pensionable earnings for other members

35

(1) This regulation applies to an active member (P) who is not a school teacher.

(2) P's pensionable earnings for any pay period are the sum of the amounts set out in paragraph (3) paid in that pay period to P for P's own use by P's employer in respect of P's pensionable service.

(3) The amounts are—

(a) the amount of salary, wages, fees and other payments paid under a contract of employment;

(b) the amounts mentioned in regulation 34(2)(b) to (d);

(c) the amount of any payment made to P by way of bonus under a pay settlement that applies to all employees (or all employees of a particular class or description) at the institution where P is employed; and

(d) the amount of any payment made to P that is calculated by reference to any of the following—

(i) P's performance;

(ii) the performance of all employees at the institution where P is employed; or

(iii) the performance of that institution.

(4) P's pensionable earnings do not include any amounts mentioned in regulation 36.

Amounts not forming part of pensionable earnings

36

(1) This regulation applies to any active member (P).

(2) P's pensionable earnings do not include any of the following amounts paid to P by P's employer—

(a) any benefit in kind, or the money value of such a benefit, excluding—

(i) any residential benefits in kind; or

(ii) a benefit in kind under a salary sacrifice arrangement;

(b) any bonus other than a payment under regulation 35(3)(c);

(d) any amount paid for the performance of duties that are not carried out in the course of P's pensionable service;

(e) any payment in consideration for the loss of, or the agreement to give up the right to, paid leave under P's contract of employment;

(f) any payment in lieu of notice to terminate P's contract of employment;

(g) if P is employed in an employment mentioned in paragraph 20 of Schedule 1 (teacher in a European school), any amount not payable by, or money value of a benefit in kind not attributable to, the Secretary of State.

Application for residential benefits in kind to form part of pensionable earnings

37

(1) This regulation applies to a person (P) who receives residential benefits in kind.

(2) P's employer (E) may apply in writing to the scheme manager asking for the money value of those residential benefits in kind to form part of P's pensionable earnings.

(3) The application must be made within 3 months after the later of—

(a) the first day of P's employment; or

(b) the first day on which residential accommodation is provided to P.

(4) The application must be accompanied by a statement certifying that E will—

(a) review the value of the residential benefits in kind at the times mentioned in paragraph (5); and

(b) inform the scheme manager in writing of the results of each review.

(5) E must review the money value of the residential benefits in kind as follows—

(a) the first review must be carried out within 2 years after the later of—

(i) the first day of P's employment; or

(ii) the first day on which residential accommodation is provided to P; and

(b) each subsequent review must be carried out within 2 years after the previous review.

Money value of residential benefits in kind to form part of pensionable earnings

38

(1) The scheme manager, if satisfied that it is reasonable for residential accommodation to be provided to a person (P) by P's employer (E) in connection with P's employment, may decide that the money value of residential benefits in kind forms part of P's pensionable earnings from—

(a) the first day of P's employment; or

(b) if later, the first day on which residential accommodation is provided to P.

(2) If the money value of the residential accommodation exceeds 1/6th of the aggregate of the amounts mentioned in regulation 34(2) or 35(3)(a) and (b), the excess does not form part of P's pensionable earnings.

(3) The scheme manager may revoke a decision that the money value of residential benefits in kind forms part of P's pensionable earnings if E does not—

(a) carry out the reviews in accordance with regulation 37; or

(b) inform the scheme manager of the results of those reviews within a reasonable time.

(4) If paragraph (3) applies, the scheme manager must—

(a) calculate the amount attributable to the overpayment of contributions (“the amount”); and

(b) repay the amount to E together with interest applied in accordance with paragraph (6).

(5) The amount is the difference between—

(a) the sum of the amount of members' contributions, any faster accrual contributions and any buy-out contributions which E deducted from P's pensionable earnings during the period in which the residential benefits in kind formed part of P's pensionable earnings; and

(b) the sum of the amount of members' contributions, any faster accrual contributions and any buy-out contributions which E would have deducted from P's pensionable earnings during that period had the residential benefits in kind not formed part of P's pensionable earnings.

(6) Interest is applied to the amount at the rate of 3% each year, compounded with yearly rests—

(a) from the first day of the financial year following the year in which the contributions were first deducted;

(b) until the day on which the amount attributable to the overpayment of contributions is repaid.

Pensionable earnings for the purpose of accruing benefits

39

For the purpose of calculating a member's (P's) amount of earned pension for a pay period—

(a) if P's pensionable earnings are reduced during sick leave, carer’s leave, adoption leave, maternity leave, parental leave, shared parental leave , parental bereavement leave , neonatal care leave or paternity leave ..., P's pensionable earnings for that period include P's notional pensionable earnings; and

(b) if an election under regulation 26 has effect or is taken to have effect for that period, are an amount equal to P's notional salary.

CHAPTER 5 — Annual rate of pensionable earnings for multiple employments

Multiple regular full-time or part-time employments

40

(1) This regulation applies if—

(a) a person (P) is in pensionable service in relation to more than one employment, and

(b) each employment is a regular full-time or part-time employment.

(2) P's annual rate of pensionable earnings is found by—

(a) calculating the D value for each employment; and

(b) adding all the D values.

(3) The D value for an employment is

(4) FT means the annual rate of pensionable earnings for that employment.

(5) C means

(a) for a full-time employment, the A value is 1;

(b) for a part-time employment, the A value is

(d) B is the sum of all the A values.

Multiple employments including at least one irregular employment

41

(1) This regulation applies if—

(a) a person (P) is in pensionable service in relation to more than one employment; and

(b) at least one employment is an irregular employment.

(2) P’s full-time equivalent annual rate of pensionable earnings is the higher of—

(a) Figure 1; and

(b) either--

(i) Figure 2, if P is in more than one regular employment; or

(ii) Figure 3, if P is only in one regular employment;

where—

Figure 1 is obtained by dividing the sum of the annual rates of each of P’s employments by the total number of P’s employments;

Figure 2 is the annual rate of pensionable earnings for P’s regular employments as set out in paragraph (2) of regulation 40, disregarding P’s irregular employment or employments; and

Figure 3 is the full-time equivalent rate of pensionable earnings for P’s sole regular employment.

PART 4 — Pension accounts

CHAPTER 1 — Interpretation

Interpretation

42

In this Part—

“the leaving year” means the financial year in which the relevant last day falls;

“the relevant last day” means—for a member who has made a phased retirement application, the day before the entitlement day for a phased retirement pension; andotherwise, the last day of pensionable service.

Pensionable service

43

For the purpose of this Part, a person (P) who re-enters pensionable service after a gap in service not exceeding 5 years is taken to be in pensionable service during the gap.

Meaning of “leaver index adjustment”

44

(1) The leaver index adjustment for an amount of accrued earned pension other than an amount of club transfer accrued earned pension is an amount calculated as follows—

Step 1

Add 1.6 to the percentage increase or decrease in prices specified in the Treasury order in relation to the leaving year.

Step 2

Multiply the result at Step 1 by A/B

where—A is the number of complete months in the period between the beginning of the leaving year and the end of the relevant last day; andB is 12.

The resulting percentage is the leaver index percentage.

Step 3

Multiply the amount of accrued earned pension by the leaver index percentage.

The resulting amount is the leaver index adjustment.

(2) The leaver index adjustment for an amount of club transfer accrued earned pension is the adjustment that would apply under the sending scheme to an amount of accrued earned pension equal to the amount of club transfer accrued earned pension specified in the active member's account at the end of the relevant last day.

(3) In this regulation, “complete month” includes an incomplete month that consists of at least 16 days.

Meaning of “leaver PIA index adjustment”

45

(1) The leaver PIA index adjustment for an amount of accrued additional pension is calculated in accordance with paragraph (2).

(2) The leaver PIA index adjustment is the amount by which the annual rate of a pension of an amount equal to the amount of accrued additional pension would have been increased in the leaving year under PIA 1971 if—

(a) that pension were eligible to be so increased; and

(b) the beginning date for that pension were the day after the relevant last day.

CHAPTER 2 — Calculation of accrued pension

Calculation of amount of accrued pension for purposes of deferment or full retirement

46

(1) For the purpose of a full retirement pension, the amount of accrued pension is calculated in accordance with this regulation.

(2) For the purpose of a deferred member's account, the amount of accrued earned pension is calculated in accordance with paragraph (3).

(3) The amount of accrued earned pension is the sum of the following amounts specified in the active member's account as at the end of the last day of pensionable service—

(a) the opening balance of standard earned pension for the last active financial year and the index adjustment for that opening balance;

(b) the amount of standard earned pension (if any) for the last active financial year;

(c) the opening balance of faster accrual earned pension (if any) for the last active financial year and the index adjustment for that opening balance;

(d) the amount of faster accrual earned pension (if any) for the last active financial year;

(e) the opening balance of club transfer earned pension (if any) for the last active financial year and the index adjustment for that opening balance;

(f) the amount of club transfer earned pension (if any) for the last active financial year;

(g) the opening balance of transferred pension (if any) for the last active financial year and the index adjustment for that opening balance; and

(h) the amount of transferred pension (if any) for the last active financial year.

(4) The amount of accrued additional pension is—

(a) the sum of the following amounts specified in the additional pension account as at the end of the last day of pensionable service—

(i) the opening balance of additional pension for the last active financial year; and

(ii) the PIA index adjustment (if any) for that opening balance; or

(b) an amount determined by the scheme manager under Part 2 of Schedule 2.

(5) In these Regulations, “the last active financial year” means the financial year in which the last day of pensionable service falls.

Calculation of amount of accrued pension for purpose of phased retirement

47

(1) For the purpose of a phased retirement pension, the amount of accrued pension is calculated in accordance with this regulation.

(2) The amount of accrued earned pension is the phased retirement proportion of the sum of the following amounts specified in the active member's account as at the end of the relevant last day—

(a) the opening balance of standard earned pension for the leaving year and the index adjustment for that opening balance;

(b) the amount of standard earned pension for the leaving year;

(c) the opening balance of faster accrual earned pension (if any) for the leaving year and the index adjustment for that opening balance;

(d) the amount of faster accrual earned pension (if any) for the leaving year;

(e) the opening balance of club transfer earned pension (if any) for the leaving year and the index adjustment for that opening balance;

(f) the amount of club transfer earned pension (if any) for the leaving year;

(g) the opening balance of transferred pension (if any) for the leaving year and the index adjustment for that opening balance; and

(h) the amount of transferred pension (if any) for the leaving year.

(3) If a member claims payment of additional pension under regulation 94, the amount of accrued additional pension is—

(a) the sum of the following amounts specified in the additional pension account as at the end of the relevant last day—

(i) the opening balance of additional pension for the leaving year; and

(ii) the PIA index adjustment (if any) for that opening balance; or

(b) an amount determined by the scheme manager under Part 2 of Schedule 2.

CHAPTER 3 — Pension accounts: general

Establishment of pension accounts: general

48

(1) The scheme manager must establish and maintain one or more pension accounts for each member of this scheme in accordance with this Part.

(2) A pension account—

(a) may be kept in any form the scheme manager considers appropriate; and

(b) must specify the details required by these Regulations.

(3) References in these Regulations to any amount specified in a pension account are references to the amount that is required by these Regulations to be so specified and not, if different, the amount actually so specified.

Closure of pension accounts on transfer out or repayment of balance of contributions

49

All pension accounts relating to a member (P) (other than a pension credit member's account) must be closed if—

(a) a transfer payment is made in respect of P's accrued rights under this scheme; or

(b) P is repaid the balance of contributions under regulation 189.

CHAPTER 4 — Active member's account

Establishment of active member's account

50

(1) A pension account must be established for each active member (“the active member's account”) from the first day of pensionable service under this scheme.

(2) If a person is an active member in relation to more than one employment, only one active member's account is to be established.

(3) The active member's account must remain open until the member leaves all pensionable service under this scheme.

Receipt of transfer values

51

(1) This regulation applies if a transfer value is received from another pension scheme (other than a connected scheme) in relation to an active member of this scheme.

(2) On receipt of the transfer value payment, the active member's account must be credited with the amount of transferred pension the member is entitled to count under Part 10 (transfers).

Receipt of club transfer values

52

(1) This regulation applies if a club transfer value is received from another club scheme in relation to an active member of this scheme.

(2) On receipt of the transfer value payment, the active member's account must be credited with an amount of club transfer earned pension the member is entitled to under Part 10 (transfers).

Account to specify amount of pension for a financial year

53

(1) This regulation applies in relation to every financial year in which an active member's account is open.

(2) The active member's account must specify—

(a) the amount of standard earned pension (if any) for the financial year;

(b) the amount of faster accrual earned pension (if any) for the financial year;

(d) the amount of transferred pension (if any) for the financial year.

(3) The amount is—

(a) for standard earned pension, 1/57th of the member's pensionable earnings for that year;

(b) for faster accrual earned pension, the fraction of the member's pensionable earnings for that year specified in a faster accrual election;

(c) for club transfer earned pension, the sum of all club transfer values received in relation to the member in that year; and

(d) for transferred pension, the amount which a member is entitled to count under Part 10 (transfers) for that year.

Account to specify opening balance and index adjustment

54

(1) This regulation applies in relation to every financial year in which an active member's account is open other than the financial year in which the account is established.

(2) The active member's account must specify—

(a) the opening balance of standard earned pension for the financial year and the index adjustment for that opening balance;

(b) the opening balance of faster accrual earned pension (if any) for the financial year and the index adjustment for that opening balance; and

(c) the opening balance of transferred pension (if any) for the financial year and the index adjustment for that opening balance.

(3) The opening balance in relation to a description of pension—

(a) for the financial year immediately following the financial year in which the active member's account is established, means the amount of that pension for the previous financial year as at the end of the previous financial year;

(b) for any subsequent financial year, means the sum of the following amounts—

(i) the opening balance of that pension for the previous financial year and the index adjustment for that opening balance; and

(ii) the amount of that pension for the previous financial year as at the end of the previous financial year.

(4) In this regulation, “a description of pension” means—

(a) standard earned pension;

(b) faster accrual earned pension (if any);

(d) transferred pension (if any).

Ill-health pension ceases to be payable

55

If an ill-health pension ceases to be payable to a person (P) under regulation 114 or 118 and P re-enters pensionable service—

(a) the pensioner member's account must be closed;

(b) the active member's account must be re-established and credited with an amount equal to the annual rate of pension payable immediately before the ill-health pension ceased to be payable.

Phased retirement pension ceases to be payable

56

If a phased retirement pension ceases to be payable under regulation 97 and P re-enters pensionable service—

(a) the pensioner member's account must be closed; and

(b) the active member's account must be adjusted by increasing the amount of accrued earned pension by the phased retirement proportion.

CHAPTER 5 — Additional pension account

Establishment of additional pension account

57

(1) An additional pension account must be established for each active member (P) in respect of whom an additional pension election is made.

(2) If P is an active member in relation to more than one employment, only one additional pension account is to be established.

(3) The additional pension account must remain open until—

(a) an additional pension is paid in respect of P;

(b) a transfer payment is made in respect of P's rights to the accrued additional pension; or

(4) Part 2 of Schedule 2 has effect in relation to the making of an additional pension election.

Account to specify amount of additional pension

58

(1) This regulation applies in relation to every financial year in which an additional pension election is made.

(2) The additional pension account must specify in relation to any additional pension election made in that financial year an amount equal to the annual rate of additional (self only) pension specified in the additional pension election.

Account to specify opening balance and PIA index adjustment

59

(1) This regulation applies in relation to every financial year in which an additional pension account is open other than the financial year in which the account is established.

(2) The account must specify the opening balance of additional pension for the financial year and the PIA index adjustment for that opening balance.

(3) The opening balance of additional pension—

(a) for the financial year immediately following the financial year in which the additional pension account is established, means the amount of additional pension specified in the account as at the end of the previous financial year; and

(b) for any subsequent financial year, means the sum of the following amounts—

(i) the opening balance of additional pension for the previous financial year;

(ii) the PIA index adjustment for that opening balance; and

(iii) the amount of additional pension for the previous financial year.

Ill-health pension ceases to be payable

60

(1) This regulation applies if—

(a) an additional pension is payable with an ill-health pension; and

(b) the ill-health pension ceases to be payable under regulation 114 or 118.

(2) The additional pension account must be re-established and credited with an amount equal to the annual rate of additional (self only) pension.

Phased retirement pension ceases to be payable

61

(1) This regulation applies if—

(a) an additional pension is payable with a phased retirement pension; and

(b) the phased retirement pension ceases to be payable under regulation 97.

(2) The additional pension account must be re-established and credited with an amount equal to the annual rate of additional (self only) pension.

CHAPTER 6 — Deferred member's account

Establishment of deferred member's account

62

When an active member leaves all pensionable service and becomes a deferred member—

(a) the active member's account must be closed; and

(b) a pension account for the deferred member must be established (“deferred member's account”).

Account to specify amount of accrued earned pension and leaver index adjustment

63

The deferred member's account must specify—

(a) the amount of accrued earned pension calculated under regulation 46(3); and

(b) the leaver index adjustment for that amount.

Deferred member's account closed after break not exceeding 5 years

64

(1) If a deferred member re-enters pensionable service under this scheme after a gap in service not exceeding 5 years—

(a) the deferred member's account must be closed; and

(b) the active member's account must be re-established.

(2) The active member's account—

(a) must specify the amount of accrued earned pension as at the beginning of the gap in service; and

(b) must be adjusted as if the member had continued as an active member during the gap in service but had received no pensionable earnings.

Deferred member's account closed after service under another public service scheme

65

(1) This regulation applies if—

(a) a deferred member (P) re-enters pensionable service under this scheme after a gap in service of more than 5 years;

(b) the gap in service included a period of service under another public service scheme; and

(2) When P re-enters pensionable service under this scheme—

(a) the deferred member's account must be closed; and

(b) the active member's account must be re-established.

(3) For the financial year in which the active member's account is re-established, the opening balance for each description of pension must be equal to the amount of accrued pension specified in the deferred member's account in relation to that description of pension as at the end of the gap in service.

Deferred member's account remains open after a gap in service of more than 5 years

66

(1) This regulation applies if a deferred member (P) re-enters pensionable service under this scheme after a gap in service of more than 5 years.

(2) When P re-enters pensionable service under this scheme (“the further service”)—

(a) the deferred member's account remains open; and

(b) an active member's account must be established in respect of the further service.

(3) In this regulation, “gap in service” does not include any period of service under another public service pensions scheme.

Deferred member's account established after ill-health pension ceases to be payable

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If an ill-health pension ceases to be payable to a person (P) under regulation 114 or 118 and P does not re-enter pensionable service—

(a) a deferred member's account must be established; and

(b) that account must be credited with an amount equal to the annual rate of pension payable immediately before the ill-health pension ceased to be payable.

Deferred member's account established after phased retirement pension ceases to be payable

68

If a phased retirement pension ceases to be payable to a person (P) under regulation 97 and P does not re-enter pensionable service—

(a) a deferred member's account must be established; and

(b) the scheme manager must increase the amount of accrued earned pension by the phased retirement proportion.

CHAPTER 7 — Pensioner members' accounts

SECTION 1 — Interpretation

Meaning of “full retirement earned pension”

69

(1) The amount of full retirement earned pension is the sum of—

(a) the amount of accrued earned pension calculated under regulation 46(3); and

(b) the leaver index adjustment for that amount.

(2) In calculating the amount of full retirement earned pension, the leaver index adjustment is not applied to the amount of accrued earned pension if a transfer payment is made in respect of the member's rights to that accrued pension before the end of the last active financial year.

Meaning of “full retirement additional pension”

70

(1) The amount of full retirement additional pension is the sum of—

(a) the amount of accrued additional pension calculated under regulation 46(4); and

(b) the leaver PIA index adjustment for that amount.

(2) In calculating the amount of full retirement additional pension, the leaver PIA index adjustment is not applied to the amount of accrued additional pension if a transfer payment is made in respect of the member's rights to that accrued pension before the end of the last active financial year.

Meaning of “phased retirement earned pension”

71

The amount of phased retirement earned pension is the sum of—

(a) the amount of accrued earned pension calculated under regulation 47(2); and

(b) the leaver index adjustment for that amount.

Meaning of “phased retirement additional pension”

72

The amount of phased retirement additional pension is the sum of—

(a) the amount of accrued additional pension calculated under regulation 47(3); and

(b) the leaver PIA index adjustment for that amount.

Meaning of “standard reduction”

73

(1) The standard reduction is 3% and applies in relation to a maximum of 3 years between age 65 and a member's normal pension age.

(2) The standard reduction is applied when calculating the annual rate of pension payable to a member (P) who—

(a) was an active member immediately before the entitlement day for a phased retirement pension, premature retirement pension or early retirement pension; and

(b) on the entitlement day for that pension—

(i) has reached normal minimum pension age; but

(ii) has not reached normal pension age.

(3) If a retirement pension becomes payable to P on or after the date on which P reaches 65, the standard reduction applies in relation to a proportion, determined by the scheme manager, of the time left until P reaches normal pension age.

Meaning of “actuarial adjustment”

74

(1) In these Regulations, “actuarial adjustment” means the actuarial adjustment that is applied when calculating the annual rate of pension payable to—

(a) a member who, on the entitlement day for a pension other than an age retirement pension or an ill-health pension, has not reached normal pension age; or

(b) an active member or a deferred member who becomes a pensioner member after reaching normal pension age.

(2) In the case of an actuarial adjustment applied under paragraph (1)(b)—

(a) the actuarial adjustment only relates to a period of pensionable service of the active member or the deferred member after reaching normal pension age; and

(b) the actuarial adjustment must only be applied to the accrued earned pension of the active member or the deferred member that accrued before reaching normal pension age.

Meaning of “conversion amount”

75

In these Regulations, “conversion amount”, in relation to any pension converted in part to a lump sum under regulation 168, means the amount of pension converted to a lump sum.

SECTION 2 — Establishment of pensioner members' accounts

Pension accounts for active or deferred members who become pensioner members

76

(1) When an active member becomes entitled to payment of a retirement pension other than a phased retirement pension in respect of any pensionable service—

(a) the active member's account and any additional pension account must be closed; and

(b) a pension account for the pensioner member must be established (“the pensioner member's account”).

(2) When a deferred member becomes entitled to payment of a retirement pension other than a phased retirement pension in respect of any pensionable service—

(a) the deferred member's account and any additional pension account must be closed; and

(b) a pension account for the pensioner member must be established (“the pensioner member's account”).

(3) The pensioner member's account must specify—

(a) the amount of full retirement earned pension payable to the member, and for that amount—

(i) the standard reduction (if any);

(ii) the actuarial adjustment (if any); and

(iii) the conversion amount (if any); and

(b) the amount of full retirement additional pension payable to the member, and for that amount—

(i) the actuarial adjustment (if any); and

(ii) the conversion amount (if any).

Pension accounts for phased retirement members

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(1) On the entitlement day for a phased retirement pension—

(a) a pensioner member's account must be established for the member;

(b) if the member is an active member, the active member's account must be adjusted by reducing the amount of accrued earned pension specified in that account by the phased retirement proportion;

(c) if the member is a deferred member, the deferred member's account must be adjusted by reducing the amount of accrued earned pension specified in that account by the phased retirement proportion;

(d) after the adjustment, Chapters 2 and 3 apply in relation to the member as if the amount of accrued earned pension specified in the active member's account or deferred member's account had always been reduced by the phased retirement proportion; and

(e) if the member has applied under regulation 94 to receive additional pension with the phased retirement earned pension, the additional pension account must be closed.

(2) The pensioner member's account must specify—

(a) the amount of phased retirement earned pension payable to the member, and for that amount—

(i) the standard reduction (if any);

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