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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

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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

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

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

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

(ii) the conversion amount (if any).

SECTION 3 — Closure of accounts

Ill-health pension ceases to be payable

78

If an ill-health pension ceases to be payable under regulation 114 or 118, the pensioner member's account must be closed.

Phased retirement pension ceases to be payable

79

If a phased retirement pension ceases to be payable under regulation 97, the pensioner member's account must be closed.

CHAPTER 8 — Pension credit member's pension account

Pension credit member's pension account

80

(1) A pension account must be established for each pension credit member (“the pension credit member's account”).

(2) The pension credit member's account must specify the amount of credited pension and for that amount—

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

(b) the conversion amount (if any).

(3) In these Regulations, “amount of credited pension” means an amount equal to the pension credit calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to WRPA 1999.

Separate account for each capacity of membership

81

(1) If a pension credit member is also an active member, deferred member or pensioner member, the pension credit member's account is in addition to the other account or accounts to be established under this Part in respect of the member in the other capacity.

(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

82

(1) A person (P) is qualified for retirement benefits under this scheme if—

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

(b) a transfer payment otherwise than from another occupational pension scheme has been accepted in relation to P.

(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) for a transition member, any period of pensionable service under the existing scheme before the member's transition date;

(c) if a transfer payment has been accepted from another occupational pension scheme in relation to P, a period equal to P's period of pensionable service under that scheme.

(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

83

(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 .

Payment of retirement benefits for post-benefit service

84

For the purpose of calculating benefits in respect of a period of post-benefit service, a person (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)

85

(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

86

(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 162 for the payment of an age retirement pension.

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

Annual rate of age retirement pension

87

(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 conversion amount (if any) specified in that account in relation to that amount.

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

88

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 178.

CHAPTER 3 — Phased retirement

Interpretation of Chapter

89

(1) In this Chapter—

“average annual rate” means the average rate of pensionable earnings in a 12 month period;

“increased annual rate”, in relation to pensionable earnings, has the meaning given in regulation 97(2);

“new employment” has the meaning given in regulation 91(2);

“new employment condition” has the meaning given in regulation 91;

“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 162 for payment of a phased retirement pension;

“previous employment” has the meaning given in regulation 91(2);

“reduced annual rate”, in relation to pensionable earnings, means the annual rate of P's pensionable earnings following the reduction referred to in regulation 90;

“reduced annual rate condition” has the meaning given in regulation 90.

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

The reduced annual rate condition

90

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 rate 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 12 months of pensionable service immediately before the reduction.

The new employment condition

91

(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 92 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 12 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 Parts 2 to 4 of Schedule 1, each of which 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); andif the employer is a function provider, P's duties relate to functions or services in respect of which the function provider is accepted under paragraph 3 of Schedule 1; orone 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)

92

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

93

(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 162 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 94 to receive an additional pension with the phased retirement earned pension.

(3) Subject to regulation 97, a phased retirement pension is payable for life.

Phased retirement applications

94

(1) For the purpose of regulation 93, 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

95

(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

96

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;

(d) 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;

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

(f) subtracting the conversion amount (if any) specified in that account in relation to that amount.

Cessation of phased retirement pension

97

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 annual amount of P's pensionable earnings in that 12 month period is more than 80% of the average annual rate—

(i) if P met the reduced annual rate condition, in the 12 months of pensionable service immediately before the reduced annual rate took effect; or

(ii) if P met the new employment condition, in the last 12 months of the previous employment.

Subsequent phased retirement applications

98

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

(a) a phased retirement pension ceases to be payable under regulation 97 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 94 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 94.

(5) In this regulation—

“original application” means P's application under regulation 162 for payment of the original pension;

“original pension” means a phased retirement pension that ceases to be payable under regulation 97;

“previous phased retirement application” includes the original application.

CHAPTER 4 — Premature retirement

Interpretation of “pensionable service”

99

For the purpose of this Chapter, a person in respect of whom an election under regulation 26 has effect is not treated as being in pensionable service.

Meaning of “entitlement day” (premature retirement pension)

100

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

Entitlement to premature retirement pension

101

(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 under Part 3 of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015 as a result of P's pensionable service being terminated;

(f) P has left all eligible employment;

(g) P has applied under regulation 162 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) If the employer is not the local authority, the local authority must give the notice under sub-paragraph (1)(d) if—

(a) P's pensionable service was in relation to an employment that falls within category A (as defined by regulation 34(1) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015; and

(b) the governing body of the school or institution mentioned in that provision asks the local authority to do so.

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

Annual rate of premature retirement pension

102

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

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

(f) subtracting the conversion amount (if any) specified in that account in relation to that amount.

CHAPTER 5 — Early retirement

Meaning of “entitlement day” (early retirement pension)

103

(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 162 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 162 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 162 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 sub-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

104

(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 162 for the payment of an early retirement pension; and

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

(1A) P is not entitled to payment of an early retirement pension from the entitlement day if—

(a) P has applied under regulation 162 for payment of an early retirement pension;

(b) P’s application is made in accordance with regulation 103(2) or (4)(b); and

(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

105

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

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

(f) subtracting the conversion amount (if any) specified in that account in relation to that amount.

CHAPTER 6 — Ill-health retirement

SECTION 1 — General

Interpretation

106

In this Chapter—

“ill-health application” means an application under regulation 162 for payment of—an ill-health pension; andif applicable, a total incapacity pension; and

“stepped down employment” has the meaning given in regulation 117.

Incapacity definitions

107

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

108

(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 whether P is entitled to the payment of an ill-health pension and, if applicable, 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.

SECTION 2 — Ill-health pension

Entitlement day for ill-health pension

109

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

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

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

(d) the date of any previous medical report following consideration of which the scheme manager is not satisfied that P meets the incapacity condition or, if applicable, the total incapacity condition.

(2) The scheme manager may only make the determination mentioned in paragraph (1)(a) after consideration of a medical report produced no more than 18 months before the date on which P made the ill-health application.

Entitlement to ill-health pension

110

(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 162 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—

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

(ii) if paragraph (3) applies, that 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 pensionable service 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.

(3A) Where paragraph (3) applies, the illness or injury which P relies upon in P’s ill-health application to meet the incapacity condition must be—

(a) the same illness or injury which was the reason, or as the case may be, one of the reasons for P leaving pensionable employment; or

(b) connected to or consequent upon that injury or illness.

(4) Except as provided in regulation 114, an ill-health pension is payable for life.

No entitlement to ill-health pension

111

(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) a direction under section 142 of EA 2002 given on a ground mentioned in subsection (4)(a), (b) or (c) of that section has effect in respect of P,

(b) the Secretary of State is considering giving such a direction in respect of P,

(d) the General Teaching Council for Wales or the Secretary of State has made, or the General Teaching Council for Wales or the Secretary of State makes, or is considering making, a prohibition order in relation to P on the grounds of unacceptable professional conduct or that P has been convicted of a relevant offence.

(3) But paragraph (2) does not apply if the Secretary of State determines that the only reason for the direction or the direction being considered, for including, or considering including, P in any of the lists; or for making, or considering making, a prohibition order is unrelated to P's culpable behaviour.

(4) The lists are—

(a) the children's barred list (established under section 2(1)(a) of SVGA 2006);

(b) a list maintained under the law of Scotland or Northern Ireland which the Secretary of State specifies by order under section 3(2)(b) of SVGA 2006 as corresponding to the children's barred list;

(d) a list maintained under the law of Scotland or Northern Ireland which the Secretary of State specifies by order under section 3(3)(b) of SVGA 2006 as corresponding to the adults' barred list.

(5) In this regulation—

“prohibition order”, “relevant offence” and “unacceptable professional conduct” have the same meanings as in Schedule 2 to the Teaching and Higher Education Act 1998 ; and

“SVGA 2006” means the Safeguarding Vulnerable Groups Act 2006 .

When ill-health pension does not become payable

112

(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 114 or 118 is taken not to become payable before D's death.

Annual rate of ill-health pension

113

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

114

An ill-health pension ceases to be payable to a person (P), unless P has reached normal pension age, on the earlier 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.

SECTION 3 — Total incapacity pension

Meaning of “entitlement day” (total incapacity pension)

115

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

116

(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;

(2) For a person in stepped down employment, the scheme manager must be satisfied that P's total incapacity is wholly or partly related to the ill-health which led to the change in the terms of employment.

(3) 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.

(4) Except as provided in regulation 118, the total incapacity pension is payable for life.

Annual rate of total incapacity pension

117

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

$$P S 2 × A R 57$where—AR means P's annual rate of pensionable earnings—as at the last day of pensionable service; orif P applies for a total incapacity pension while P is in stepped down employment, as at the day before P's annual rate of pensionable earnings was first reduced under paragraph (2);PSmeans P's prospective service (in years and fractions of a year);$

(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; and

(3) For the purpose of sub-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

118

(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%, unless P has reached normal pension age before that date.

(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 of a medical report requested by the scheme manager under regulation 175 which shows that P no longer meets the incapacity condition or, if applicable, the total incapacity condition;

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

(d) the date on which P engages in any other form of work unless—

(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.

CHAPTER 7 — Short-service serious ill-health grant

Application for payment of grant

119

(1) An application made by a person (P) under regulation 162 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.

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

120

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

121

(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 has left all eligible employment because P is incapacitated;

(d) P has not reached 75;

(e) within 6 months of leaving all pensionable service P has applied under regulation 162 for payment of the grant; and

(f) the scheme manager is satisfied after consideration of a 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

122

(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 119, 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)

123

The entitlement day for a short-service annuity is the date specified in an application under regulation 162 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

124

(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 162 for payment of the annuity.

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

Annual rate of short-service annuity

125

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

(a) all of the members' 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 162; 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

126

In this Part—

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

“survivor's benefits” means one or more 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.

Meaning of “dies in service”

127

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

(a) D dies while in pensionable service under this scheme;

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

(d) paragraph (2) applies.

(2) This paragraph applies if—

(a) D dies within 12 months after leaving pensionable service in all eligible employment because P 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”

128

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”

129

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

When a retirement pension does not become payable

130

For the purpose of these Regulations—

(a) an ill-health pension does not become payable before the death of a member (D) 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 114 or 118 is taken not to become payable before D's death; and

(c) a phased retirement pension that does become payable before D's death but ceases to be payable under regulation 97 does not become payable before D's death.

Payment of survivor benefits for post-benefit service

131

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

132

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”

133

(1) For the purpose of a death grant, a person (P) is a member's “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 personal representatives 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”

134

(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”

135

(1) For the purposes of a survivor’s pension, a member’s partner (P) is a “surviving qualifying partner” if the conditions in paragraph (2) are satisfied for a continuous period of at least 2 years ending on the member’s death.

(2) The conditions are—

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

(b) the member and P live 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.

Meaning of “surviving nominated beneficiary”

136

(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 (4) are satisfied.

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

(3) The notice must—

(a) be signed by both the member and P; and

(b) state that the conditions in paragraph (4) are satisfied.

(4) 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;

(ca) no person has satisfied the conditions in regulation 135 in relation to the member for a continuous period of 2 years or more;

(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.

(5) 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 (4) ceases to be satisfied;

(d) P dies.

Meaning of “eligible child”

137

(1) In these Regulations, a person is an “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 the D's death; and

(c) is not wholly maintained out of money provided by Parliament or raised by council tax by a local authority (including a non-metropolitan district council for an area for which there is a county council).

(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

138

On the death of a member (D), where a death grant is to be paid, the payment must be made—

(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 133(4) and (5); or

(i) to D's surviving adult; or

(ii) if there is no surviving adult, to D's personal representatives as part of D's estate.

SECTION 2 — Death in service

Death in service grant

139

(1) A death grant may be paid 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.

(2A) For the purposes of paragraph (2), an ill-health pension and, if applicable, a total incapacity pension are taken to become payable if—

(a) before D’s death D made an ill-health application;

(b) at the same time as D made the ill-health application, D made an application under regulation 171 (commutation of whole pension (serious ill-health)) for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c) following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

(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 168 not attributable to additional pension;

(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 part of a lump sum under regulation 168 not attributable to additional pension;

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

SECTION 3 — Death out of service

Death out of service grant

140

(1) A death grant may be paid 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) D dies following a period of 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 following a period of post-benefit service and a retirement pension other than a phased retirement pension in respect of that period becomes payable before D's death

(2A) For the purposes of paragraph (2), an ill-health pension and, if applicable, a total incapacity pension are taken to become payable if—

(a) before D’s death D made an ill-health application;

(b) at the same time as D made the ill-health application, D made an application under regulation 171 for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c) following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

(3) The amount of the death out of service grant for D—

(a) if a surviving adult pension becomes payable on D's death, is found by—

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

(ii) multiplying that amount by 2.25; and

(iii) deducting the amounts specified in paragraph (4);

(b) if a surviving adult pension does not become payable on D's death, but D was qualified for retirement benefits, is the greater of—

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

(ii) the total of the amounts specified in paragraph (6).

(4) The amounts to be deducted under paragraph 3(a) are—

(a) if D dies following a period of pensionable service that is not post-benefit service—

(i) any part of a lump sum under regulation 168 not attributable to additional pension; and

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

(b) if D dies following a period of post-benefit service, any part of a lump sum under regulation 168 in relation to the post-benefit service which is not attributable to additional pension.

(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 the total of the amounts specified in paragraph (6).

(6) The amounts are—

(a) all members' contributions, additional pension contributions, buy-out contributions and faster accrual contributions paid up to the date of D's death, excluding—

(i) any contributions paid in respect of a pension benefit which has become payable before the application for repayment; and

(ii) any contributions paid in respect of any period of pensionable service for which a short-service serious ill-health grant has been paid;

(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.

Supplementary death grant payable on death of pensioner member

141

(1) A death grant may be paid 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

142

(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) Subject to Part 8, a surviving adult pension is payable for life in accordance with Chapter 2 of that Part.

(4) The annual rate of the pension is to be calculated in accordance with regulations 143 and 144.

Annual rate of surviving adult pension: short-term

143

(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 , neonatal care 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 144 (“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

144

(1) 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

145

(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

146

(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

147

(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;

(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 94 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

148

(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

149

(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 £3,045.

(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 150 and 151.

(8) Chapter 2 of Part 8 provides for payment of pensions.

Annual rate of child pension: short-term

150

(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 number of months or part months for which the surviving adult pension was not payable under sub-paragraph (ii).

(2) The short-term rate of child pension is

(a) if D dies in service—

AR 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 , neonatal care leave or adoption leave); and

EC is the number of D’s eligible children;

(b) if D dies as a pensioner member—

AR 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);

EC is the number of D’s eligible children;

(3) If the rate calculated under paragraph (2) is smaller than the annual rate calculated in accordance with regulation 151 (“long-term rate”), the short-term rate is the same as the long-term rate.

Annual rate of child pension: long-term

151

(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—

$R × a c c r u e d e a r n e d p e n s i o n E C$

(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) “accrued earned pension” is D's accrued earned pension as at the date of D's death; and

(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

152

(1) This regulation applies if a member (D)—

(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 E C$where—R is—37.5%, if a surviving adult pension is payable;50%, if a surviving adult pension is not payable or has ceased to be payable;S is the sum of the following amounts—the amount of D's accrued earned pension as at the date of D's death; andthe amount found by multiplying half D's prospective service (in years and fractions of a year) by 1/57th of D's annual rate of pensionable earnings as at the date of D's death;EC is—2, if a child pension is payable to no more than 2 eligible children; orthe number of eligible children, if a child pension is payable to more than 2 eligible children; and$

PART 7 — Benefits for pension credit members

CHAPTER 1 — General

Interpretation

153

In these Regulations—

“pension credit” means a credit under section 29(1)(b) of the 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 155(1);

“pension debit member” means, in relation to a pension credit member, the person whose rights under these Regulations become subject to a debit 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

154

(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 162 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 day on which a pension-sharing order takes effect.

Entitlement to pension credit retirement pension

155

(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 162 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

156

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

157

(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 personal representatives 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

158

(1) A death grant may be paid 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 155.

(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

159

(1) A death grant may be paid 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

160

(1) On the death of a pension credit member, where a death grant is to be paid, the payment must be made—

(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 157(4) and (5); or

(i) to the member's surviving spouse , surviving civil partner or surviving qualifying partner; or,

(ii) if there is no such person, to the member's personal representatives as part of the member's estate.

(2) In paragraph (1)(c)(i) “surviving qualifying partner” has the meaning given by regulation 135.

PART 8 — Payment of benefits

CHAPTER 1 — Application for payment of benefits

Benefits payable by the scheme manager

161

(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

162

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

(2) An application may include a request that a pension be paid monthly or quarterly.

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

(4) 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

Interpretation

163

In this Chapter—

“cessation date” means the last day on which the pension is payable;

“initial payment date”—for monthly payment of pension, means the first payment date which follows the payable date or, if the payable date falls on the payment date, the payable date;for quarterly payment of pension, means the third payment date which follows the payable date or, if the payable date falls on the payment date, the second payment date which follows the payable date;

“payable date” means the date on which the pension becomes payable;

“payment date”—for a survivor's pension, is the 28th day of the month; andfor a retirement pension, is the day before the day of the month on which the person to whom the pension is payable was born, and—where the person was born on the 1st day, it is the last day of the month;where the person was born on the 30th day, for any month in which there is no 29th day it is the 28th day of the month; andwhere the person was born on the 31st day, for any month in which there is no 30th day it is the last day of the month; and

“pension” includes an annuity.

Monthly payment of pension

164

(1) A pension is to be paid in accordance with this regulation unless P's application for payment of benefits included a request that the pension be paid quarterly.

(2) The initial payment of the pension is to be made on the initial payment date.

(3) The amount of the initial payment is—

$$D I D M × A R 12$where—AR is the annual rate of the pension;DI is the number of days in the period beginning on the payable date and ending on the initial payment date and is 1 where the payable date falls on the initial payment date, andDM is the number of days in the period beginning on the day which falls one month before the day after the initial payment date and ending on the initial payment date.$

(4) The amount to be paid on the payment date in each subsequent month until the cessation date is—

$A R 12$

where AR is the annual rate of the pension.

(5) If the cessation date does not fall on a payment date, the final payment is to be made on, or as soon as possible after, the cessation date.

(6) The amount of the final payment is—

$$D F D M × A R 12$where—AR is the annual rate of the pension;DF is the number of days in the period beginning on the day immediately following the last payment date before the cessation date and ending on the cessation date, andDM is the number of days in the period beginning on the day immediately following the last payment date before the cessation date and ending on what would have been the next payment date if the pension had not ceased to be payable.$

Quarterly payment of pension

165

(1) A pension is to be paid to a person (P) in accordance with this regulation if P's application for payment of benefits included a request that the pension be paid quarterly.

(2) The initial payment is to be made on the initial payment date.

(3) The amount of the initial payment is—

$$D I D Q × A R 4$where—AR is the annual rate of the pension;DI is the number of days in the period beginning on the payable date and ending on the initial payment date, andDQ is the number of days in the period beginning on the day which falls 3 months before the day after the initial payment date and ending on the initial payment date.$

(4) The amount to be paid on the payment date in every third month after the month in which the initial payment date falls is—

$A R 4$

where AR is the annual rate of the pension.

(5) If the cessation date does not fall on a payment date under paragraph (4), the final payment is to be made on, or as soon as possible after, the cessation date.

(6) The amount of the final payment is—

$$D F D Q × A R 4$where—AR is the annual rate of the pension;DF is the number of days in the period beginning on the day immediately following the last payment date under paragraph (4) and ending on the cessation date; andDQ is the number of days in the period beginning on the day immediately following the last payment date under paragraph (4) and ending on what would have been the next such payment date if the pension had not ceased to be payable.$

Apportionment Act 1870 not to apply

166

The Apportionment Act 1870 being inconsistent with regulations 164 (monthly payment of pension) and 165 (quarterly payment of pension) does not apply to benefits under these Regulations.

CHAPTER 3 — Payment of lump sums

Member declaration

167

(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 would not apply.

(2) The declaration must be—

(a) signed by the member;

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

Conversion of part of pension

168

(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 day on which a pension-sharing order takes effect 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 162 for payment of the pension; and

(i) the amount of the lump sum which the member wishes to receive; or

(ii) the conversion amount.

Amount of lump sum payable under regulation 168

169

The amount of a lump sum payable to a person (P) under regulation 168 must—

(a) be a multiple of £12; and

(b) not exceed P's permitted maximum.

Conversion amount

170

(1) Paragraph (2) applies for the purpose of calculating the annual rate of pension payable to a member (P) who receives a lump sum under regulation 168.

(2) The conversion amount is—

$1 12 × a m o u n t o f t h a t l u m p s u m .$

(3) If a retirement pension converted under regulation 168 ceases to be payable under regulation 97 or 114, the conversion 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)

171

(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 162 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 168 to receive a lump sum under that regulation—

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

(b) the conversion amount under that regulation is to be deducted when calculating the annual rate under regulation 172(2)(a).

(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 171 instead of retirement pension

172

(1) This regulation applies to a member (P) who applies under regulation 171 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

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