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The Judicial Pensions Regulations 2015

Type Statutory-Instrument

Publication 2015-02-09

Last updated 2024-12-17

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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$$P × 365N$where—P is the amount of a payment of the member’s pensionable earnings; andN is the number of days in the applicable payment period.$

(7) For the purposes of paragraph (6) the applicable payment period is—

(a) if it is the member’s first payment of pensionable earnings in relation to a continuous period of pensionable service in a scheme employment, the number of days in the period beginning on the day the member commenced the period of pensionable service in the scheme employment and ending on the day before the day that this payment was made; or

(b) in any other case, the period beginning on the day the previous payment of the member’s pensionable earnings was made and ending on the day before the day that this payment was made.

(8) If the scheme year in which the payment of pensionable earnings is made includes the day 29th February, paragraph (6) has effect with the substitution for “365” of “366”.

(9) In this regulation, “consumer prices index” means the all items consumer prices index published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007.

Column 1Annualised rate of pensionable earnings	Column 2Member contributions rate
Up to but not including £22,005	4.6%
£22,005 to but not including £52,392	5.45%
£52,392 to but not including £150,001	7.35%
£150,001 and above	8.05%

Amount of pensionable earnings

125

(1) For the purposes of regulation 124, the amount of a member’s pensionable earnings for any pay period is determined in accordance with this regulation.

(2) Unless paragraph (3) or (4) applies, the amount of the member’s pensionable earnings during any period of assumed pay is equal to the member’s assumed pay.

(3) For any period of assumed pay under regulation 24(3)(a), the amount of the member’s pensionable earnings is equal to the member’s reduced pay while on sick leave.

(4) For any period of assumed pay under regulation 24(3)(b) or(c), the amount of the member’s pensionable earnings is the amount of remuneration or statutory pay actually paid to or for the member in respect of the period of adoption leave, maternity leave, parental leave, paternity leave or additional paternity leave.

Payment of member contributions

126

(1) Member contributions are to be deducted by the member’s employer from the member’s pensionable earnings for each pay period.

(1A) Member contributions that must be paid under section 52(4) of PSPJOA 2022 are to be paid in accordance with regulation 66 of the 2023 Regulations.

(2) A member’s employer may make contributions on the member’s behalf in circumstances determined by the scheme manager.

(3) A member is not required to pay member contributions—

(a) while the member is on unpaid adoption leave, maternity leave, parental leave, paternity leave or additional paternity leave; or

(b) with the employer’s approval, while the member is on unpaid leave.

Employers’ contributions

127

(1) Each employer of an active member of this scheme must pay contributions to this scheme in respect of the member at the rate and at the intervals the scheme manager may for the time being determine after consultation with the scheme actuary.

(2) Each employer of an active member of this scheme must in addition pay to this scheme—

(a) annual administration charges; and

(b) any other administrative charges,

at such intervals and at such rates as the scheme manager may from time to time determine.

Deduction of payments for extra pension under Schedule 1

128

Schedule 1 has effect for the purpose of enabling deductions of payments for—

(a) added pension; and

(b) an effective pension age.

Refund of all member contributions and payments for extra pension made by the member

129

(1) Member contributions and payments resulting from the exercise of an option under Schedule 1 made by the member are only refundable if—

(a) regulation 21 applies; or

(b) the member ceases to be in pensionable service under this scheme and—

(i) the member has less than 2 years’ qualifying service;

(ii) if a transfer value payment has been received by this scheme in relation to the member, it was from another occupational pension scheme; and

(iii) the member has not reached normal pension age under this scheme.

(2) If paragraph (1)(b) applies, the member is entitled to be paid an amount equal to the sum of all member contributions and payments resulting from the exercise of an option under Schedule 1 made by the member, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of FA2004⁴⁶ as a result of a refund of those contributions and payments.

(3) If all member contributions and payments for extra pension made by the member are refunded under this regulation, the member’s rights under this scheme are extinguished.

Refund of payments for extra pension made by the member

130

(1) This paragraph applies if—

(a) a member cancels an effective pension age option during the periodical payment period under Part 3 of Schedule 1;

(b) the member has less than 2 years’ qualifying service; and

(2) The member is entitled to be paid an amount equal to all the payments for extra pension made by the member in respect of that option, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of FA2004 as a result of a refund of those payments.

PART 10 — Transfers

CHAPTER 1 — Preliminary

Application of Part

131

This Part—

(a) supplements the rights conferred by or under Chapter4 of Part 4 (transfer values) of PSA 1993 and is without prejudice to that Chapter; and

(b) supplements the rights conferred by or under Chapter 5 of that Part⁴⁷ (early leavers: cash transfer sums and contribution refunds) and is without prejudice to that Chapter.

Interpretation of Part

132

In this Part—

“cash equivalent” means an amount calculated in accordance with regulations made under section 97 (calculation of cash equivalents) of PSA 1993⁴⁸;

“guarantee date” has the meaning given in regulation 135;

“guaranteed cash equivalent” means, in relation to calculating the transfer value of accrued rights to benefits under this scheme, the cash equivalent of those benefits as at the guarantee date, as specified in a statement of entitlement;

“statement of entitlement” means, in relation to an active or deferred member’s accrued rights to benefits under this scheme, a statement by the scheme manager of the cash equivalent of those benefits as at the guarantee date;

“transfer value” means—for accrued rights to benefits under this scheme, an amount equal to—the guaranteed cash equivalent of those benefits; orthe guaranteed cash equivalent together with any increase payable under regulation137; andfor accrued rights to benefits under another pension scheme, an amount—determined by the scheme actuary of that scheme; andspecified in a statement of accrued rights provided by the scheme manager of that scheme.

CHAPTER 2 — Transfers out

Transfer value payments made to other schemes or pension arrangements

133

(1) A transfer value payment may only be made in respect of the accrued rights to benefits of an active or deferred member of this scheme.

(2) A transfer value payment may only be made to—

(a) a registered pension scheme that is not a connected scheme; or

(b) a pension arrangement that is a qualifying recognised overseas pension scheme for the purposes of Part 4 (pension schemes etc.) of FA 2004.

(3) A transfer value payment may not be made in respect of rights that are attributable (directly or indirectly) to a pension credit.

(4) A member may only require the scheme manager to use a transfer value payment in a way specified in section 95(2) (ways of taking right to cash equivalent) of PSA 1993⁴⁹.

(5) The whole of the transfer value payment must be made in accordance with the provisions of this regulation.

(6) If section 96(2) (further provisions concerning exercise of option under section 95) of PSA1993⁵⁰ applies, benefits attributable to the following may be excluded from the transfer value payment—

(a) the member’s accrued rights to a guaranteed minimum pension; or

(b) the member’s accrued rights attributable to service in contracted-out employment, within the meaning of Part 3 (certification of pension schemes and effects on members’ state scheme rights and duties) of PSA 1993, on or after 6 April 1997.

Application for a statement of entitlement

134

(1) This regulation applies in relation to an active or deferred member of this scheme (P) who requires a transfer value payment to be made in respect of P’s accrued rights to benefits under this scheme.

(2) Before requesting the transfer value payment, P must apply for a statement of entitlement by notice to the scheme manager.

(3) P may withdraw the application by notice to the scheme manager at any time before the statement is provided.

(4) P may make a second application by notice to the scheme manager in the period of 12 months beginning with the date of the first application⁵¹.

Statement of entitlement

135

(1) The scheme manager must specify in the statement of entitlement the date by reference to which the cash equivalent is calculated (“guarantee date”).

(2) Unless paragraph (4) applies, the guarantee date must fall within both the following periods—

(a) the 3 months beginning with the date of the member’s application for the statement of entitlement (“the 3 month period”); and

(b) the 10 days ending with the date on which the member is provided with that statement (“the 10 day period”).

(3) In counting the 10 day period, Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(4) The scheme manager may specify in the statement of entitlement a guarantee date that falls within the 6 months beginning with the date of the member’s application for the statement of entitlement if—

(a) for reasons beyond the control of the scheme manager, the information needed to calculate the amount of the cash equivalent cannot be obtained before the end of the 3 month period; and

(b) the scheme manager considers it reasonable to specify a guarantee date that falls outside the 3 month period.

Request for transfer value payment to be made

136

(1) An active or deferred member of this scheme who is provided with a statement of entitlement may request a transfer value payment to be made in respect of the member’s accrued rights to benefits under this scheme.

(2) The request for the transfer value payment must—

(a) be made by notice to the scheme manager;

(b) specify the pension scheme or other pension arrangement to which the transfer value payment is to be made; and

(3) The member by notice to the scheme manager may withdraw the request at any time before the transfer value payment is made.

(4) The member may not withdraw the request if an agreement for the use of the whole or part of the transfer value payment has already been entered into with a third party.

Calculating the amount of a transfer value

137

(1) If a transfer value is paid later than 6 months after the guarantee date, the amount of the guaranteed cash equivalent must be increased in accordance with regulations made under section97 (calculation of cash equivalents) of PSA1993.

(2) If the transfer value is less than the minimum transfer value, the amount of the transfer value must be increased so that it is equal to the amount of the minimum transfer value.

(3) In this regulation, “minimum transfer value” means the total of—

(a) the sum of all member contributions and payments for extra pension made by the member; and

(b) the sum of all transfer value payments received by this scheme in relation to the member.

“member contributions” has the meaning given in regulation 124; and

“payments for extra pension” are payments made under Schedule 1.

Effect of transfers-out

138

If a transfer value payment is made under this Chapter in respect of a member’s accrued rights to benefits under this scheme, those rights are extinguished.

CHAPTER 3 — Transfers in

Application of Chapter

139

This Chapter applies in relation to an active member of this scheme (P) who has accrued rights under another pension scheme.

Interpretation of Chapter

140

In this Chapter—

“accrued rights” does not include rights accrued under the Judicial Additional Voluntary Contributions Scheme if the scheme manager considers that the amount to which the member is entitled under that Scheme is sufficient for the purchase of an annuity for the member;

“another pension scheme” means—another occupational pension scheme that is a registered pension scheme but is not a connected scheme;a personal pension scheme; orthe Judicial Additional Voluntary Contributions Scheme;

“Judicial Additional Voluntary Contributions Scheme” means the additional voluntary contribution scheme constituted under Part 2 of the Judicial Pensions (Additional Voluntary Contributions) Regulations 1995⁵²;

“transfer date” means the earlier of—if the scheme manager has provided a transfer statement, the last day of the period of 2 months beginning with the date of the statement; orthe day on which the transfer value payment is received by the scheme manager;

“transfer payment request” means a request to the scheme manager under this Chapter that a transfer value payment be accepted from another pension scheme;

“transfer statement” means a statement under regulation 142(2).

Transfer payment requests

141

(1) P may by notice to the scheme manager make a transfer payment request in respect of some or all of P’s accrued rights to benefits under another pension scheme.

(2) A transfer payment request—

(a) must specify—

(i) the pension scheme from which the transfer value payment is requested to be made; and

(ii) the anticipated amount of the transfer value payment;

(b) must meet any other conditions the scheme manager requires; and

(c) subject to paragraph (3), must be made during the period of 12 months beginning with the day on which P becomes eligible to be an active member of this scheme.

(3) A transfer payment request in relation to the Judicial Additional Voluntary Contributions Scheme must be made—

(a) within the period of 3 months ending with the day on which P is first entitled to receive retirement benefits under this scheme; or

(b) if the scheme manager considers it reasonable in the circumstances, within any longer period the scheme manager directs.

(4) The scheme manager may direct that a transfer payment request is to be treated as having been made earlier than it was if the scheme manager considers it reasonable to do so in the circumstances.

(5) Subject to paragraph (6), on receiving a transfer payment request, the scheme manager may accept the transfer value payment if all of such conditions as the scheme manager may have required are met.

(6) The scheme manager may not accept a transfer payment request if—

(a) it would be applied in whole or in part in respect of—

(i) the member’s entitlement to a guaranteed minimum pension; or

(ii) the entitlement of the member’s spouse to a guaranteed minimum pension; and

(b) it is less than the amount required for that purpose, as calculated in accordance with actuarial tables.

Transfer statement

142

(1) This regulation applies in relation to a request by P for a transfer value payment to be accepted from another pension scheme.

(2) The scheme manager may require that, before making a transfer payment request, P must ask the scheme manager to provide a statement of the amount of transferred pension that P will be entitled to count under regulation 143 if the transfer date falls within the period of 2 months beginning with the date of that statement.

(3) The amount specified in the transfer statement must be an amount calculated by the scheme manager in accordance with actuarial guidance and tables by reference to—

(a) factors relating to P’s circumstances as at the end of that 2-month period; and

(b) any other factors as at the date of the statement that the scheme actuary considers should apply.

Amount of transferred pension

143

(1) This regulation applies in relation to a transfer value payment received from another pension scheme in relation to P.

(2) For the scheme year in which the transfer date falls, the amount of transferred pension P is entitled to count in respect of the transfer value payment is—

(a) the amount specified in the transfer statement; or

(b) if such a statement is not provided, an amount calculated by the scheme manager in accordance with actuarial guidance and tables by reference to any factors as at the transfer date that the scheme actuary considers should apply.

(3) The amount of transferred pension P is entitled to count in a scheme year must not be more than 50% of P’s annual rate of pensionable earnings as at the day P becomes an active member of this scheme.

PART 11 — Actuarial valuations and employer cost cap

Appointment of scheme actuary and actuarial valuations

144

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employer cost cap

145

(1) The employer cost cap for this scheme is 25.7 % of pensionable earnings of members of this scheme.

(2) If the cost of this scheme goes beyond the margin either side of the employer cost cap for this scheme specified in regulations under section 12(5)(a) (employer cost cap) of the Act, the Lord Chancellor must consult the scheme advisory board and such persons as appear likely to be affected by any steps that may be taken, with a view to reaching agreement with the relevant heads of jurisdiction on the steps required to achieve the target cost for this scheme.

(3) If, following such consultation, agreement is not reached, the percentage of the member’s pensionable earnings specified in regulation 39(3) as the amount of earned pension for a scheme year must be adjusted for pensionable earnings after the date of adjustment, so that the target cost for this scheme is achieved.

(4) In this regulation—

(a) “cost of this scheme” means the cost of this scheme calculated following a valuation in accordance with regulation 144; and

(b) “target cost for this scheme” means the target cost for this scheme specified in regulations under section 12(5)(b) (employer cost cap) of the Act.

PART 12 — Supplementary

CHAPTER 1 — Dual capacity members

Meaning of “dual capacity member”

146

(1) A person (P) is a dual capacity member of this scheme if—

(a) P is a member of this scheme in2 or more of the following capacities—

(i) an active member;

(ii) a deferred member;

(iii) a pensioner member;

(b) P is both a pension credit member of this scheme and a member of this scheme in one or more of the following capacities—

(i) an active member;

(ii) a deferred member;

(iii) a pensioner member;

(d) P is a pension credit member of this scheme entitled to 2 or more pension credits.

(2) For the purpose of paragraph (1)(a) or (b)—

(a) 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; and

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

Payment of benefits to or in respect of a dual capacity member

147

(1) If a person is a dual capacity member of this scheme—

(a) the benefits that are payable to or in respect of the member in each of the member’s capacities are treated separately for the purposes of these Regulations; and

(b) the amounts payable to or in respect of the member in each of the member’s capacities are determined accordingly.

(2) In relation to payment of retirement benefits, paragraph (1) does not affect the interpretation of regulation 60 if a member is both an active member and a pensioner member by virtue of that regulation.

(3) In relation to payment of death benefits, paragraph (1) does not prevent—

(a) the calculation under regulation 121 of a lump sum payable on the death of an active member of this scheme being made by reference to amounts that are relevant to the member in another capacity;

(b) the calculation under regulation 122 of a lump sum payable on the death of a deferred member or pensioner member of this scheme being made by reference to amounts that are relevant to the member in both of those capacities; or

(i) a deferred member of this scheme in relation to 2 or more continuous periods of pensionable service; or

(ii) a pensioner member of this scheme in relation to 2 or more continuous periods of pensionable service.

CHAPTER 2 — Payment of benefits: general

Late payment of retirement index adjustment

148

Nothing in these Regulations requires any part of a pension attributable to a retirement index adjustment to be paid before the end of the last active scheme year.

Commutation of small pensions

149

(1) This regulation applies if—

(a) the pension entitlement of a single capacity member or the pension entitlement of a single capacity member’s beneficiary does not exceed the small pensions commutation maximum; or

(b) the total pension entitlement of a dual capacity member or the total pension entitlement of a dual capacity member’s beneficiary does not exceed the small pensions commutation maximum.

(2) Unless the member has reached state pension age, this regulation does not apply if—

(a) the pension entitlement of the member or the member’s beneficiary under paragraph(1)(a) is equal to or exceeds the member’s guaranteed minimum; or

(b) the total pension entitlement of the member or the member’s beneficiary under paragraph(1)(b) is equal to or exceeds the member’s guaranteed minimum.

(3) The scheme manager may pay the member or the member’s beneficiary a lump sum of an amount advised by the scheme actuary as representing the cash value of the pension if—

(a) the member or the member’s beneficiary consents to receipt of a lump sum in place of the pension; and

(b) the requirements of the commutation provisions that apply in the circumstances are met.

(4) The payment of a lump sum under this regulation in place of a pension discharges all liabilities under this scheme in respect of that pension.

(5) In this regulation—

“the commutation provisions” means the provisions permitting the commutation of pensions set out in—regulation 2 (commutation of a pension under an occupational pension scheme) of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997⁵³;paragraph 7 of Schedule 29 (registered pension schemes: authorised lump sums - supplementary) to FA 2004 (which defines trivial commutation lump sums for the purposes of Part 4 of that Act)⁵⁴ and, in relation to a pension payable under Part8, paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of Part 4 of that Act)⁵⁵; andregulation 3 (commutation of the whole of pension credit benefit) of the Pension Sharing (Pension Credit Benefit) Regulations 2000⁵⁶;

“single capacity member” means a member of this scheme who is not a dual capacity member; and

“the small pensions commutation maximum” means the amount that is permitted to be commuted having regard to the commutation provisions that apply in the circumstances.

Guaranteed minimum pensions

150

(1) If a member has a guaranteed minimum under section 14 (earner’s guaranteed minimum) of PSA1993⁵⁷ in relation to benefits under this scheme—

(a) nothing in these Regulations permits or requires anything that would cause requirements under that Act in relation to such a member and their rights under this scheme not to be met in the case of the member;

(b) nothing in these Regulations prevents anything from being done which is necessary or expedient for the purposes of meeting such requirements in the case of the member; and

(2) If apart from this regulation—

(a) no pension would be payable to the member under this scheme; or

(b) the weekly rate of the pensions payable would be less than the guaranteed minimum,

a pension at a weekly rate equal to the guaranteed minimum is payable to the member for life from the date on which the member reaches state pension age or, as the case may be, pensions the aggregate weekly rate of which is equal to the guaranteed minimum are so payable.

(3) Subject to paragraph (4), if—

(a) on reaching state pension age the member is still in service (whether or not it is in a qualifying judicial office); and

(b) where the member is not in a qualifying judicial office, the member consents to a postponement of the member’s entitlement under paragraph (2),

paragraph (2) does not apply until the member ceases work.

(4) If the member continues in service for a further 5 years after reaching state pension age and remains in service, the member is entitled from the end of that period to so much of the member’s pension under Parts 6 and 7 as equals the member’s guaranteed minimum (or, as the case may be, to so much of the member’s pensions under Parts 6 and 7 as together have a weekly rate equal to the member’s guaranteed minimum), unless the member consents to a further postponement of the entitlement.

(5) In the circumstances provided for in paragraph (3) or (4), the amount of the guaranteed minimum to which the member is entitled under this regulation is increased in accordance with section 15 (increase of guaranteed minimum where commencement of guaranteed minimum pension postponed) of PSA 1993.

(6) If—

(a) before reaching state pension age the member becomes entitled to the immediate payment of a pension under this scheme; and

(b) the member has a guaranteed minimum under section 14 (earner’s guaranteed minimum) of PSA 1993 in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer value payment from another pension scheme in respect of which the member had such a guaranteed minimum,

the weekly rate of the pension, so far as attributable to that service, must not be less than the guaranteed minimum, multiplied by such factor as is indicated in actuarial tables for a person of the member’s age and sex at the date on which the pension becomes payable.

(7) This paragraph applies if a person has ceased to be in service that is contracted-out, within the meaning of Part 3 of PSA 1993 (certification of pension schemes and effects on members’ state scheme rights and duties), by reference to this scheme, and either—

(a) a transfer value payment in respect of all the person’s rights to benefits under this scheme, except the person’s rights in respect of the person’s guaranteed minimum or rights under section 9(2B) (requirements for certification of schemes: general) of PSA1993⁵⁸ (“the person’s contracting-out rights”) has been made; or

(b) the person has no rights to benefits under this scheme apart from the person’s contracting-out rights.

(8) If paragraph (7) applies—

(a) from the date on which the person reaches state pension age the person is entitled to a pension payable for life at a weekly rate equal to the person’s guaranteed minimum, if any; and

(b) from the date on which the person reaches normal pension age under this scheme the person is entitled to a lump sum and pension in respect of the person’s rights under section 9(2B) (requirements for certification of schemes: general) of PSA 1993,

but a person falling within paragraph (7) is not to be regarded as a pensioner for the purposes of Part 8 (death benefits).

(9) Paragraphs (2) to (8) do not apply to—

(a) a pension that is forfeited—

(i) as a result of a conviction for treason; or

(ii) under regulation 151, in a case where the relevant offence within the meaning of regulation 151 is an offence under the Official Secrets Acts 1911 to 1989⁵⁹ or an applicable offence under the National Security Act 2023;

(b) a pension that is commuted under regulation 77 or 90; or

(c) a pension that is commuted under regulation 149 where the conditions in regulation 60 (payment of a guaranteed minimum pension as a lump sum) of the Occupational Pension Schemes (Contracting-out) Regulations 1996⁶⁰ are met,

(10) In this regulation, references to the amount of a pension are to its amount after the subtraction of the commutation amount, if any, (but before the subtraction of the allocation amount, if any (see regulation 78(5)).

CHAPTER 3 — Forfeiture and set-off

Forfeiture: offences committed by members

151

(1) If a member is convicted of a relevant offence, the appropriate Minister may, in agreement with the relevant head of jurisdiction and to the extent that they both consider appropriate, withhold benefits payable under this scheme to or in respect of the member.

(2) Paragraph (3) applies if benefits are to be withheld as a result of an offence falling within paragraph (b) of the definition of “relevant offence”.

(3) The appropriate Minister may only withhold that part of a person’s pension that exceeds any guaranteed minimum to which the person is entitled under—

(a) section14 (earner’s guaranteed minimum) of PSA 1993; or

(b) section17⁶¹(minimum pension for surviving spouses and civil partners) of that Act.

(4) In this regulation—

“forfeiture certificate” means a certificate stating that the appropriate Minister and relevant head of jurisdiction issuing the certificate consider that the offence—has been gravely injurious to the administration of justice; oris liable to lead to serious loss of confidence in the judiciary; and

“relevant offence” means—one or more offences under the Official Secrets Acts 1911 to 1989 , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023, for which the member has been sentenced on the same occasion to—a term of imprisonment of at least 10 years; or2 or more consecutive terms of imprisonment which add up to at least 10 years;offences committed in connection with service in qualifying judicial office and in respect of which the appropriate Minister and relevant head of jurisdiction have issued a forfeiture certificate.

Forfeiture: offences committed by a member’s beneficiary

152

(1) If the beneficiary of a deceased member of this scheme (D) is convicted of a relevant criminal offence, the appropriate Minister may, in agreement with the relevant head of jurisdiction and to the extent that they both consider appropriate, withhold benefits payable to the beneficiary in respect of D.

(2) The appropriate Minister may, in agreement with the relevant head of jurisdiction and to the extent that they both consider it appropriate, withhold benefits, but may only withhold that part of a pension that exceeds any guaranteed minimum to which the beneficiary is entitled under section 17 (minimum pensions for widows and widowers) of PSA1993.

(3) If the appropriate Minister withholds all of the benefits payable to a beneficiary, Part8 applies as if the beneficiary had died before D.

(4) In this regulation, “relevant criminal offence” means—

(a) the murder of D;

(b) the manslaughter of D; or

Forfeiture: relevant monetary obligations and relevant monetary losses

153

(1) If a member (P) owes a relevant monetary obligation or has caused a relevant monetary loss, the appropriate Minister, subject to paragraph (2) may, in agreement with the relevant head of jurisdiction and to the extent that they both consider appropriate, withhold benefits payable to P under this scheme.

(2) The appropriate Minister may only withhold that part of P’s pension that exceeds any guaranteed minimum to which P is entitled under section 14 of PSA 1993.

(3) The appropriate Minister may not withhold more than the lesser of—

(a) the amount of the relevant monetary obligation or relevant monetary loss; and

(b) the value of P’s entitlement to benefits.

(4) The appropriate Minister may only withhold benefits if—

(a) there is no dispute as to the amount of the relevant monetary obligation or relevant monetary loss; or

(b) the relevant monetary obligation or relevant monetary loss is enforceable as follows—

(i) under an order of a competent court;

(ii) in consequence of an award of an arbitrator;

(iii) in Scotland, in consequence of an award of an arbiter appointed (failing agreement between the parties) by the sheriff.

(5) In this regulation—

“relevant monetary obligation” means a monetary obligation which—was incurred to the Crown or P’s employer (if different);was incurred after P became an active member of this scheme;arose out of P’s criminal or fraudulent act or omission; andarose out of or was connected with service in a qualifying judicial office in respect of which P is a member of this scheme.

“relevant monetary loss” means a monetary loss which—was caused to this scheme; andarose as a result of P’s criminal or fraudulent act or omission.

Set-off

154

(1) The appropriate Minister may, in agreement with the relevant head of jurisdiction, set off a relevant monetary obligation against a member’s entitlement to benefits under this scheme.

(2) In this regulation, a “relevant monetary obligation” is a monetary obligation owed by a member (P), which satisfies the conditions in paragraph (3), (4) or (5).

(3) The conditions are that the monetary obligation—

(a) was incurred to the Crown or P’s employer (if different);

(aa) arose out of P’s criminal or fraudulent act or omission;

(b) was incurred after P became an active member of this scheme; and

(c) arose out of or was connected with service in a qualifying judicial office in respect of which P is a member of this scheme.

(4) The conditions are that the monetary obligation—

(a) was incurred to this scheme; and

(b) arose out of P’s criminal or fraudulent act or omission.

(5) The conditions are that the monetary obligation—

(a) was incurred to this scheme; and

(b) arose out of a payment made to P in error by the scheme manager.

(6) Paragraph (7) applies if a set-off is to be applied as a result of P owing a relevant monetary obligation which satisfies the conditions in paragraph (3).

(7) Where this paragraph applies, the appropriate Minister may not apply a set-off against that part of P’s entitlement to benefits that represents transfer credits within the meaning of section 124(1) (interpretation of Part 1) of PA1995⁶² (other than prescribed transfer credits for the purposes of section 91(5)(d)⁶³ (exceptions from the inalienability of occupational pensions) of that Act).

(8) The appropriate Minister may only apply a set-off against that part of a member’s pension that exceeds any guaranteed minimum to which the member is entitled under section 14 of PSA 1993.

(9) The value of the set-off applied must not exceed the lesser of—

(a) the amount of the relevant monetary obligation;

(b) the value of P’s entitlement to benefits.

(10) The appropriate Minister may only set off a relevant monetary obligation against P’s entitlement to benefits if—

(a) there is no dispute as to the amount of the relevant monetary obligation; or

(b) the relevant monetary obligation is enforceable—

(i) under an order of a competent court;

(ii) in consequence of an award of an arbitrator;

(iii) in Scotland, in consequence of an award of an arbiter appointed (failing agreement between the parties) by the sheriff.

CHAPTER 4 — Payment and deduction of tax

Scheme manager to be scheme administrator for the purposes of Part 4 of Finance Act 2004

155

The scheme manager is appointed to be responsible for all functions that are functions conferred or imposed on the scheme administrator under Part 4 (pension schemes etc.) of FA2004.

Payment on behalf of members of lifetime allowance charge

156

(1) A member of this scheme may request the scheme manager to pay on the member’s behalf any amount that is payable by way of the lifetime allowance charge under section 214 (lifetime allowance charge) of FA 2004 (“the amount”) if—

(a) an event that is a benefit crystallisation event listed in the table in section 216(1)⁶⁴ (benefit crystallisation events and amounts crystallised) of FA2004 (“the event”) occurs in relation to the member; and

(b) the member and the scheme manager are jointly and severally liable in relation to the event.

(2) A request may only be made by notice given to the scheme manager before the event occurs.

(3) The scheme manager may only comply with a request if the member pays the amount to the scheme manager on or before the date on which the event occurs.

Reduction of benefits where lifetime allowance charge payable

157

(1) This regulation applies if—

(a) an event that is a benefit crystallisation event (“the event”) listed in the table in section216(1) of FA2004 (“the table”) occurs in relation to a member;

(b) the member and the scheme manager are jointly and severally liable in relation to the event; and

(c) no request has been duly made under regulation 156 in relation to the event or, if such a request has been made, the scheme manager is prevented from complying with it by paragraph (3) of that regulation.

(2) If this regulation applies—

(a) the scheme manager must pay the tax payable on the event;

(b) if the event is benefit crystallisation event 8 in the table (transfer to qualifying recognised overseas pension scheme), the amount or value of the sums or assets transferred must be reduced; and

(c) in the case of any other event in the table, the amount or value of the benefits payable to or in respect of the member must be reduced.

(3) The amount or value of the reduction—

(a) must fully reflect the amount of the tax so paid;

(b) must be determined in accordance with guidance provided by the scheme manager; and

Information about payment of annual allowance charge

158

(1) If a member’s pension scheme input amount for this scheme for a tax year exceeds the amount of the annual allowance for that tax year, paragraph (2) applies in respect of the member for that tax year.

(2) The scheme manager must, no later than 31st July after the end of the tax year, provide the member with any information the scheme manager considers appropriate to assist the member to arrange payment of the annual allowance charge for that tax year.

(3) In this regulation, “pension scheme input amount” has the same meaning as in section237B(2) (liability of scheme administrator) of FA 2004⁶⁵.

Reduction of benefits where annual allowance charge paid by scheme manager

159

(1) This regulation applies where—

(a) a member gives valid notice to the scheme manager of joint and several liability for an annual allowance charge under section 237B(3) (liability of scheme administrator) of FA 2004; and

(b) the scheme manager satisfies the liability specified in the notice.

(2) The amount or value of the benefits payable to or in respect of the member for the tax year to which the notice relates must be reduced by the scheme manager in accordance with paragraph(3).

(3) Subject to paragraph (4), the reduction in the amount or value of benefits—

(a) must fully reflect the amount paid by the scheme manager; and

(b) must be consistent with normal actuarial practice.

(4) Benefits may only be reduced under this regulation to the extent that the reduction would not result in the loss of any part of a guaranteed minimum pension to which a person is entitled under sections 14 (earner’s guaranteed minimum) or 17 (minimum pension for surviving spouses and civil partners) of PSA 1993.

CHAPTER 5 — General

General prohibition on unauthorised payments

160

Nothing in these Regulations requires or authorises the making of any payment, which, if made, would be an unauthorised payment for the purposes of Part 4 (pension schemes etc.) of FA 2004 (see section 160(5) (payments by registered pension schemes) of that Act).

Calculation of periods of membership and service

161

(1) For the purposes of this scheme, periods of membership and service are to be expressed in the first instance in whole years, and days and fractions of a day, and the initial aggregation of periods that require to be aggregated is done in the first instance by reference to periods so expressed.

Determination of questions

162

(1) Except as otherwise provided by these Regulations, any question arising under this scheme is to be determined by the scheme manager, whose decision on it is final.

(2) The scheme manager must, in consultation with the Judicial Pension Board, establish a procedure for the determination of disputes relating to members or other persons with an interest in the scheme.

(3) A procedure established under paragraph (2) must meet the requirements of section 50 (requirement for dispute resolution arrangements) of the PA 1995⁶⁶.

Evidence of entitlement

163

(1) The scheme manager may require any person who is receiving a pension under this scheme to provide evidence to establish—

(a) the person’s identity; and

(b) the person’s continuing entitlement to payment of any amount.

(2) If the person does not provide the required evidence, the scheme manager may withhold the whole or any part of any benefits payable under this scheme in respect of the person.

Provision of benefit information statements to members

164

(1) The scheme manager must provide benefit information statements to each active member of this scheme in accordance with—

(a) section 14 of the Act (information about benefits); and

(b) directions given under that section (“Treasury directions”).

(2) The statement must contain the following information about the member’s benefits as at the date of the statement—

(a) the amount of each description of accrued pension specified in the active member’s account as at that date;

(b) the opening balance of each description of pension for that year and the index adjustment for that opening balance;

(d) any other information required by Treasury directions.

Information to be provided by employers

165

(1) An employer of a member of this scheme must, by such date as the scheme manager may specify, provide the scheme manager with such information as the scheme manager may request—

(a) in connection with the scheme manager’s or scheme administrator’s functions in relation to this scheme; or

(b) to enable the scheme manager or Lord Chancellor to fulfil any obligations on the scheme manager or Lord Chancellor set out in or under legislation.

Transitional provisions

166

Schedule 2 has effect.

Modifying provisions and amendments

167

Schedule 3 has effect.

SCHEDULE 1 — Payments for extra pension

PART 1 — General

Interpretation

1

In this Schedule—

“added pension option” means the option to make added pension payments;

“amount of accrued added pension” means the total of—the amount of accrued added (self only) pension (if any); andthe amount of accrued added (all beneficiaries) pension (if any);

“amount of extra pension” has the meaning given in paragraph2;

“appropriate pay period” means the pay period that the scheme manager considers appropriate;

“overall limit of extra pension” has the meaning given in paragraph3;

“periodical payment period” means the period for which periodical payments for added pension or an effective pension age are payable;

“period of service”, in relation to this scheme, means a continuous period of pensionable service under this scheme;

“purported added pension payment” means a payment—which was made by either—a person “P” who has remediable service in a judicial office; ora relevant fee-paid judge who has relevant service in a judicial office;which was intended to be an added pension payment under this Part; andwhich was not an added pension payment under this Part due to—a determination by a court or tribunal that, as a result of a non-discrimination rule, any person has rights under a judicial legacy scheme in respect of P’s remediable service;an agreement between the scheme manager of a judicial legacy scheme and any person that, as a result of a non-discrimination rule, the person has any rights under the scheme in respect of P’s remediable service; orthe payment being made in relation to a relevant fee-paid judge;

“the relevant day”, in relation to a lump sum payment for added pension, means—if the scheme manager provides a statement of the amount of added pension, the first day after the period of one month beginning with the date of the statement; orotherwise, the day on which the lump sum payment is received by the scheme manager;

“the relevant scheme year” means the scheme year in which the relevant day falls;

“statement of the amount of added pension” means the statement referred to in paragraph 17;

“third party” means a third party approved by the scheme manager to make payments for extra pension in respect of an active member of this scheme; and

“value”, in relation to an effective pension age option, means a value determined by the scheme manager under paragraph 29 of this Schedule.

Meaning of “amount of extra pension”

2

The amount of extra pension at any given time is the total of the following—

(a) the amount of accrued added pension at that time;

(b) if the member has exercised one or more effective pension age options, the value of each option at that time.

Meaning of “overall limit of extra pension”

3

(1) The overall limit of extra pension is—

(a) £6,500 for any scheme year ending before 1stApril 2016; and

(b) for any scheme year beginning on or after 1stApril 2016—

(i) the overall limit of extra pension determined by the Treasury in respect of that scheme year as published before the start of that scheme year; or

(ii) if no such determination is made, the amount calculated under paragraph (2).

(2) The amount is the amount to which the annual rate of a pension of an amount equal to the overall limit of extra pension for the previous scheme year would have been increased under PIA1971 if—

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

(b) the beginning date for that pension were the first day of the previous scheme year.

Limit on added pension options

4

An added pension option may not be exercised in relation to a member if the member has exercised an effective pension age option and—

(a) the value of the effective pension age option exceeds the overall limit of extra pension; or

(b) if the added pension option is exercised, the amount of extra pension would exceed the overall limit of extra pension.

Amount of accrued added pension may not exceed overall limit of extra pension

5

(1) At any given time, the total amount of accrued added pension in all the active member’s accounts established for a member under Part 5 may not exceed the overall limit of extra pension.

(2) If a member has opted to make periodical payments for added pension, the scheme manager may by notice to the member cancel the added pension option if it appears to the scheme manager that the overall limit of extra pension will be exceeded if the member continues to make the periodical payments.

(3) If the scheme manager cancels the option, the periodical payments cease to be payable from the next pay period beginning after the date specified in the notice of cancellation.

Actuarial advice

6

The scheme manager must take advice from the scheme actuary before determining any amount under this Schedule.

PART 2 — Payments for added pension

CHAPTER 1 — Exercising the added pension option

Added pension option exercisable by member

7

(1) An active member of this scheme may opt to make added pension payments to increase—

(a) the member’s retirement benefits for a period of service; or

(b) both the member’s retirement benefits and death benefits payable in respect of the member for a period of service.

(2) A member may exercise the added pension option by notice to the scheme manager in a form required by the scheme manager.

(3) The option notice must state whether the added pension payments are to be made by—

(a) periodical payments; or

(b) a lump sum payment.

(4) A member may exercise the added pension option more than once but an option to make a lump sum payment for added pension may only be exercised once in any scheme year.

(5) An option to make a lump sum payment for added pension may only be exercised if the member—

(a) has been an active member of this scheme in relation to a continuous period of pensionable service for at least 12 months; and

(b) has been provided with a statement of the amount of added pension (if paragraph 18 applies).

Added pension option exercisable by employer or third party

8

(1) A third party or the employer of an active member of this scheme may, if the scheme manager approves, opt to make a lump sum payment for added pension to increase—

(a) the member’s retirement benefits for a period of service; or

(b) both the member’s retirement benefits and death benefits payable in respect of the member for a period of service.

(2) The employer or third party may exercise an added pension option by notice to the scheme manager in a form required by the scheme manager.

(3) The employer or third party may exercise an added pension option more than once but only once in any scheme year.

CHAPTER 2 — Periodical payments for added pension

Application of Chapter

9

This Chapter applies in relation to an active member of this scheme who opts to make periodical payments for added pension.

Member’s option to make periodical payments for added pension

10

(1) An option notice must specify—

(a) the periodical payment period; and

(b) the amount of the periodical payment to be deducted by the member’s employer from the member’s pensionable earnings in each pay period.

(2) The amount of the periodical payment may be expressed as—

(a) a percentage of the member’s pensionable earnings; or

(b) a fixed sum.

(3) The amount of the periodical payment must not be less than any minimum amount determined by the scheme manager.

Cancellation of option by member

11

(1) The member may, by notice to the scheme manager, cancel the option at any time during the periodical payment period.

(2) If the member cancels the option, the periodical payments cease to be payable from the beginning of the next scheme year after the scheme manager receives the notice of cancellation.

Periodical payments

12

(1) The periodical payments are payable by deduction by the member’s employer from the member’s pensionable earnings during the periodical payment period.

(2) The periodical payment period—

(a) begins with—

(i) if the member exercises the option within 3 months after joining this scheme, the first appropriate pay period beginning on or after the date on which the scheme manager receives the option notice; or

(ii) in any other case, the first appropriate pay period of the scheme year beginning on or after the date on which the scheme manager receives the option notice; and

(b) ends on the earlier of—

(i) the date on which the member ceases to be an active member of this scheme; and

(ii) the date specified in the option notice.

(3) Subject to sub-paragraph (4), during a period of assumed pay the member may—

(a) stop the periodical payments; or

(b) continue the periodical payments as if the member were receiving pensionable earnings at the full rate.

(4) During any period in which the member is receiving statutory maternity pay within the meaning of Part 12 (statutory maternity pay) of the Social Security Contributions and Benefits Act 1992⁶⁷ or is on paid ordinary maternity leave, paid adoption leave or paid paternity leave, the member may—

(a) stop the periodical payments; or

(b) make periodical payments of an amount determined by reference to the member’s actual pay during that period.

(5) If a member stops the periodical payments during a period of assumed pay, the member may, by notice to the scheme manager in a form required by the scheme manager, resume the periodical payments in the next pay period after the period of assumed pay ends.

Amount of added (self only) pension for a scheme year (periodical payments)

13

(1) This paragraph applies in relation to each scheme year during which a member makes periodical payments to increase the member’s retirement benefits only.

(2) An amount of added (self only) pension is credited to the active member’s account for that scheme year.

(3) The amount is determined by the scheme manager by reference to actuarial tables, having regard to the cost in the scheme year of providing retirement benefits to a person of the member’s age and gender.

Amount of added (all beneficiaries) pension for a scheme year (periodical payments)

14

(1) This paragraph applies in relation to each scheme year during which a member makes periodical payments to increase—

(a) the member’s retirement benefits; and

(b) death benefits payable in respect of the member.

(2) An amount of added (all beneficiaries) pension is credited to the active member’s account for that scheme year.

(3) The amount is determined by the scheme manager by reference to actuarial tables, having regard to the cost in the scheme year of providing retirement benefits to—

(a) a person of the member’s age; and

(b) dependants of a person of that age.

CHAPTER 3 — Lump sum payments for added pension made by member

Application of Chapter

15

This Chapter applies in relation to an active member of this scheme who opts to make a lump sum payment for added pension.

Member’s option to make a lump sum payment for added pension

16

(1) A member may exercise the option to make a lump sum payment for added pension by notice to the scheme manager in a form required by the scheme manager.

(2) The option notice must specify the amount of the lump sum, which must not be less than any minimum amount determined by the scheme manager.

(3) The lump sum is payable immediately to the scheme manager by deduction by the member’s employer from the member’s pensionable earnings or otherwise.

Statement of amount of added pension

17

(1) If the scheme manager so requires, the member before exercising the option to make a lump sum payment for added pension must ask the scheme manager to provide a statement of the amount of added pension.

(2) A statement of the amount of added pension must set out the amount that would be credited to the active member’s account if the lump sum is received by the scheme manager within one month after the date of the statement.

(3) The statement must also—

(a) specify the overall limit of extra pension; and

(b) inform the member if it appears to the scheme manager that the overall limit of extra pension would be exceeded if the active member’s account is credited with the amount of added pension set out in the statement.

Amount of added (self only) pension (lump sum payment)

18

(1) This paragraph applies if a member opts to make a lump sum payment to increase the member’s retirement benefits only.

(2) Following payment of the lump sum by the member, an amount of added (self only) pension is credited to the active member’s account for the relevant scheme year.

(3) The amount credited to the account is—

(a) if the scheme manager has provided a statement of the amount of added pension and the lump sum is received by the scheme manager within one month after the date of the statement, the amount specified in the statement; or

(b) otherwise, an amount determined by the scheme manager by reference to actuarial tables, having regard to—

(i) the amount of the lump sum;

(ii) the cost as at the relevant day of providing retirement benefits to a person of the member’s age and gender;

(iii) factors relating to the member’s circumstances as at the relevant day; and

(iv) any other factors as at the date of the statement of the amount of added pension to which the scheme actuary considers regard should be had.

Amount of added (all beneficiaries) pension (lump sum payment)

19

(1) This paragraph applies if a member opts to pay a lump sum to increase—

(a) the member’s retirement benefits; and

(b) death benefits payable in respect of the member.

(2) On payment of the lump sum by the member an amount of added (all beneficiaries) pension is credited to the active member’s account in the relevant scheme year.

(3) The amount credited to the account is—

(a) if the scheme manager has provided a statement of the amount of added pension and the lump sum is received by the scheme manager within one month after the date of the statement, the amount specified in the statement; or

(b) otherwise, an amount determined by the scheme manager by reference to actuarial tables, having regard to—

(i) the amount of the lump sum;

(ii) the cost as at the relevant day of providing retirement benefits to a person of the member’s age and dependants of a person of that age;

(iii) factors relating to the member’s circumstances as at the relevant day; and

(iv) any other factors as at the date of the statement of the amount of added pension to which the scheme actuary considers regard should be had.

CHAPTER 4 — Lump sum payments for added pension made by employer or third party

Application of Chapter

20

This Chapter applies in relation to an employer or third party who opts to make a lump sum payment for added pension in relation to an active member of this scheme.

Employer or third party option to make a lump sum payment for added pension

21

(1) An employer or third party may exercise the option to make a lump sum payment for added pension by notice to the scheme manager in a form required by the scheme manager.

(2) The option notice must specify the amount by which the member’s added (self only) pension or added (all beneficiaries) pension for the relevant scheme year is to be increased.

(3) The amount of the lump sum payment is—

(a) if the option notice specifies an increase in the member’s added (self only) pension, an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the cost as at the relevant day of providing retirement benefits to a person of the member’s age and gender; and

(b) if the option notice specifies an increase in the member’s added (all beneficiaries) pension, an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the cost as at the relevant day of providing retirement benefits to—

(i) a person of the member’s age; and

(ii) the dependants of such a person.

(4) The lump sum payment must be paid in a manner determined by the scheme manager after consultation with the scheme actuary.

(5) The scheme manager must notify the employer or third party of the amount of the lump sum and the manner in which it is to be paid.

Amount of added (self only) pension (lump sum payment)

22

(1) This paragraph applies if an employer or third party opts to make a lump sum payment to increase the member’s added (self only) pension.

(2) On payment of the lump sum by the employer or third party an amount of added (self only) pension is credited to the active member’s account in the relevant scheme year.

(3) The amount credited to the account is an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the amount of the lump sum payment.

Amount of added (all beneficiaries) pension (lump sum payment)

23

(1) This paragraph applies if an employer or third party opts to pay a lump sum to increase the member’s added (all beneficiaries) pension.

(2) On payment of the lump sum by the employer or third party an amount of added (all beneficiaries) pension is credited to the active member’s account in the relevant scheme year.

(3) The amount credited to the account is an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the amount of the lump sum payment.

PART 3 — Effective pension age payments

CHAPTER 1 — Exercising the effective pension age option

Effective pension age option exercisable by member

24

(1) This paragraph applies if an active member of this scheme in relation to a continuous period of pensionable service has a normal pension age above 65 years.

(2) Subject to sub-paragraphs (3) and (4), the member may opt to make periodical payments for an effective pension age of 1, 2 or 3 years below the member’s normal pension age (“effective pension age option”).

(3) An effective pension age option may not be exercised to achieve an effective pension age below 65 years.

(4) The member may opt to make periodical payments for an effective pension age of any period up to 3 years below the member’s normal pension age if that would achieve an effective pension age of 65 years.

(5) An effective pension age is—

(a) relative to normal pension age; and

(b) automatically adjusted to reflect any change in normal pension age.

Exercising the effective pension age option

25

(1) A member may exercise an effective pension age option by notice to the scheme manager in a form required by the scheme manager.

(2) The option notice must state the effective pension age which is to apply under the option.

(3) A member may exercise an effective pension age option more than once.

(4) A member may not exercise an effective pension age option during—

(a) a period of assumed pay; or

(b) any scheme year in which the member has reached the overall limit of extra pension for that year.

Payment of pension at effective pension age

26

(1) For any part of a scheme year in which a member makes periodical payments for an effective pension age option, the member is entitled to payment of a full retirement earned pension or partial retirement earned pension attributable to the option at the effective pension age stated in the option without actuarial reduction.

(2) The amount of pension attributable to the option is reduced if the periodical payments are stopped before the end of the periodical payment period.

(3) For any period in which the periodical payments are stopped, an amount of standard earned pension is credited to the active member’s account instead of an amount of earned pension attributable to the option.

Member ceases to be in pensionable service under this scheme

27

(1) An effective pension age option in relation to a continuous period of pensionable service under this scheme ceases to have effect when the member ceases to be in that pensionable service.

(2) Periodical payments cease to be payable from the member’s last day of pensionable service.

(3) In the circumstances provided for in regulation 129, the member is entitled to a refund under that regulation of the periodical payments.

(4) If the member re-enters pensionable service under this scheme after a gap in pensionable service not exceeding 5 years, should the member so opt, the periodical payments resume in the first pay period after the member re-enters pensionable service unless—

(a) the periodical payments have been refunded to the member under regulation 129; or

(b) a transfer value payment has been made to another scheme in respect of the member’s accrued rights under this scheme.

(5) The periodical payments resume under sub-paragraph (4) even if the member has reached the overall limit of extra pension for the scheme year in which the payments resume.

Cancellation of option

28

(1) A member may, by notice to the scheme manager, cancel an effective pension age option at any time during the periodical payment period.

(2) If the member cancels the option, the periodical payments cease to be payable from the beginning of the next scheme year after the scheme manager receives notice of the cancellation.

(3) If the member exercises an effective pension age option again within a period not exceeding 5 years, the periodical payments resume from the first pay period of the next scheme year beginning after the date on which the member exercises the option again.

(4) The periodical payments resume under sub-paragraph (3) even if the member has reached the overall limit of extra pension for the scheme year in which the payments resume.

Value of an effective pension age option

29

(1) The value of an effective pension age option at any time is a value determined by the scheme manager as at that time.

(2) A member who has exercised an effective pension age option—

(a) may at any time ask the scheme manager to provide a statement of the value of the effective pension age option; and

(b) must ask the scheme manager to provide a statement of the value of the effective pension age option before an added pension option may be exercised in relation to the member.

CHAPTER 2 — Making effective pension age payments

Amount of periodical payments

30

(1) Periodical payments for an effective pension age are payable by deduction by the member’s employer from the member’s pensionable earnings in every pay period during the periodical payment period.

(2) The amount of the periodical payments is an amount—

(a) determined by the scheme manager; and

(b) set out in a notice to the member.

(3) The scheme manager must determine the amount by reference to actuarial tables having regard to—

(a) the member’s age and gender; and

(b) the number of years before the member will reach normal pension age.

(4) Before the start of every scheme year, the scheme manager must—

(a) review the amount of the periodical payments; and

(b) if the scheme manager re-determines the amount, send the member notice of the amount payable from the start of the next scheme year.

Periodical payment period

31

The periodical payment period—

(a) begins with—

(i) if the member exercises the option within 3 months after joining this scheme — the first appropriate pay period beginning on or after the date on which the scheme manager receives the option notice; or

(ii) in any other case — the first appropriate pay period of the scheme year beginning on or after the date on which the scheme manager receives the option notice; and

(b) ends on the earlier of—

(i) the date on which the member ceases to be in pensionable service in the eligible employment to which the option relates; and

(ii) the date on which the member reaches the effective pension age.

Periodical payments during period of assumed pay

32

(1) Subject to sub-paragraph (2), during a period of assumed pay the member may—

(a) stop the periodical payments; or

(b) continue the periodical payments as if the member were receiving pensionable earnings at the full rate.

(2) During any period in which the member is receiving statutory maternity pay within the meaning of the Social Security Contributions and Benefits Act 1992 or is on paid ordinary maternity leave, paid adoption leave or paid paternity leave, the member may—

(a) stop the periodical payments; or

(b) make periodical payments of an amount determined by reference to the member’s actual pay during that period.

(3) A member may stop that part of the periodical payments which relates to the years after the member would reach the age of 60 and before the member would reach the age of 65 without stopping that part of the periodical payments which relates to the years after the member would reach the age of 65 and before the member would reach normal pension age.

(4) If a member stops the periodical payments during a period of assumed pay, the member may, by notice to the scheme manager in a form required by the scheme manager, resume the periodical payments in the next pay period after the period of assumed pay ends.

SCHEDULE 2 — Transitional provisions

PART 1 — General

Interpretation

1

In this Schedule—

“closing date”, in relation to a transition member, means—if the member is a tapered protection member of a relevant scheme, the tapered protection closing date for that member; orif the member is not a protected member of such a scheme, the scheme closing date;

“full protection member”, in relation to an existing scheme, has the meaning given in paragraphs 8, 9 and 9A;

“protected member”, in relation to a relevant scheme, means a full protection member or tapered protection member of that scheme;

“protection period”—for a full protection member of an existing scheme, has the meaning given in paragraph6;for a tapered protection member of an existing scheme, has the meaning given in paragraph 11;

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