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The Judicial Pensions Regulations 2022

Type Statutory-Instrument

Publication 2022-03-17

Last updated 2025-04-06

State In force

Department King's Printer of Acts of Parliament

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Made: at 9.21 a.m. on 17th March 2022

Laid before Parliament: at 3.00 p.m. on 17th March 2022

Coming into force in accordance with regulation 1

The Lord Chancellor has had regard to the matters referred to in section 5(3) of the 2013 Act.

PART 1 — Preliminary

Citation and commencement

1

(1) These Regulations may be cited as the Judicial Pensions Regulations 2022.

(2) Parts 1 and 3, regulation 12, and paragraph 4(13) of Schedule 3 and regulation 137 insofar as it relates to that sub-paragraph come into force on the day after the day on which they are made.

(3) Regulations 132(1), (3) and (4) and Schedule 2 come into force in respect of an office specified in that Schedule on the same day as sections 123 and 124 of the Public Service Pensions and Judicial Offices Act 2022[^f00004] come into force for all purposes in respect of that office.

(4) The remaining provisions come into force on 1st April 2022.

Interpretation

2

In these Regulations—

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

“the 2015 Regulations” means the Judicial Pensions Regulations 2015[^f00005];

“the 2015 scheme” means the scheme established by the Judicial Pensions Regulations 2015;

“FA 2004” means the Finance Act 2004[^f00006];

“FPJR 2017” means the Judicial Pensions (Fee-Paid Judges) Regulations 2017[^f00007];

“PIA 1971” means the Pensions (Increase) Act 1971[^f00008];

“PSA 1993” means the Pension Schemes Act 1993[^f00009];

“PA 1995” means the Pensions Act 1995[^f00010];

“WRPA 1999” means the Welfare Reform and Pensions Act 1999[^f00011];

“accrued pension” means—in relation to another pension scheme, accrued rights to benefits under that scheme which are the equivalent of accrued standard earned pension under this scheme; andin relation to this scheme, accrued standard earned pension (if any);

“accrued rights”, in relation to benefits under this scheme, does not include a right to benefits attributable (directly or indirectly) to a pension credit;

“accrued standard earned pension”—for the purpose of calculating the amount of full retirement pension or the provisional amount of deferred pension, has the meaning given in regulation 24(2) (calculation of amount of accrued standard earned pension for purpose of deferment or full retirement);for the purpose of calculating the amount of partial retirement pension, has the meaning given in regulation 25(2) (calculation of amount of accrued standard earned pension for purpose of partial retirement);

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

“active member’s account” has the meaning given in regulation 29(2) (establishment of active member’s account);

“actuarial guidance” means guidance given by the scheme manager after consultation with the scheme actuary;

“actuarial reduction” in relation to reduction of pension payable to a member who has not reached normal pension age, means a reduction determined by the scheme manager after consultation with the scheme actuary or taking into account tables prepared by the scheme actuary;

“additional maternity leave” has the meaning given in regulation 2(1) (interpretation) of the Maternity and Parental Leave etc. Regulations 1999[^f00012];

“additional paternity leave” has the meaning given in regulation 2(1) (interpretation) of the Additional Paternity Leave Regulations 2010[^f00013];

“adoption leave” means ordinary adoption leave under section 75A (ordinary adoption leave), or additional ordinary adoption leave under section 75B (additional adoption leave), of the Employment Rights Act 1996[^f00014];

“age addition” has the meaning given in regulation 22(3) (determination of “the age addition”);

“allocation amount” means the amount of pension allocated as a result of making an allocation election;

“allocation election” means an election under regulation 63(2) (allocation election);

“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 (pension credits: mode of discharge) to WRPA 1999;

“amount of earned pension”, in relation to a scheme year, means an amount calculated in accordance with regulation 30(3) (amount of pension for a scheme year);

“annual rate”—in relation to standard earned pension, has the meaning given in Chapters 2 (regulations 48 and 49) and 3 (regulations 53 and 54) of Part 6 (retirement benefits); andin relation to pensionable earnings, means the amount of pensionable earnings payable for a scheme year;

“appropriate Minister” means—in relation to any qualifying judicial office whose jurisdiction is exercised exclusively in relation to Scotland, the Secretary of State; orsubject to paragraph (a) above, the Lord Chancellor;

“assignment”, in relation to this scheme, means the assigning of a member in accordance with paragraph 9 of Part 2 of Schedule 4 to the Tribunals, Courts and Enforcement Act 2007[^f00015];

“assumed age addition” has the meaning given in regulation 23(3) (determination of “the assumed age addition”);

“assumed pay” has the meaning given in regulation 17(2) (in respect of salaried office holders) and regulation 18(3) (in respect of fee-paid office holders);

“the beginning date”, in relation to a pension not attributable (directly or indirectly) to a pension credit, means the date on which the pension is deemed to begin for the purpose of section 8(2) (meaning of “pension” and other supplementary provisions) of PIA 1971[^f00016];

“beneficiary”, in relation to a deceased member, means the surviving adult or eligible child of the member;

“closing date” in relation to a transition member, has the meaning given in paragraph 1 of Schedule 1[^f00017];

“the commutation amount” means the amount of pension exchanged for a lump sum as a result of the exercise of the commutation option;

“commutation option” means the option to exchange part of a pension for a lump sum—exercisable under regulation 60 (option to commute part of pension) in relation to a retirement pension; orexercisable under regulation 72 (option for pension credit member to commute part of pension) in relation to a pension credit member’s pension;

“connected scheme” means another statutory pension scheme that is connected, within the meaning of section 4(6) (scheme manager) of the Act, with this scheme;

“continuity of service” has the meaning given in paragraph 2 of Schedule 1;

“continuous period of pensionable service” means a period of pensionable service under this scheme disregarding any gap in pensionable service not exceeding 5 years, unless otherwise provided;

“continuous period of service”, in relation to qualifying judicial office, means a period of service in one or more qualifying judicial offices disregarding any gap in service not exceeding 5 years;

“death benefits” means benefits payable under Part 8 (death benefits);

“deferred member” has the meaning given in regulation 19 (meaning of “deferred member”);

“deferred member’s account” has the meaning given in regulation 34(3) (establishment of deferred member’s account);

“dependant” has the meaning given in paragraph 15 of Schedule 28 to the FA 2004[^f00018];

“dual capacity member” has the meaning given in regulation 118 (meaning of “dual capacity member”);

“early payment reduction” means the actuarial reduction that is applied when calculating the annual rate of pension payable to a member of this scheme who has not reached normal pension age under this scheme;

“eligible child” has the meaning given in regulation 87 (meaning of “eligible child”);

“eligible child’s pension” has the meaning given in regulation 86 (meaning of “eligible child’s pension”);

“employer” means the person responsible for the remuneration of a qualifying judicial officeholder;

“the Fee-Paid Judges Scheme” means the scheme established by Parts 1 to 11 of the FPJR 2017;

“fee-paid office” means an office where service is remunerated by payment of fees, as opposed to the payment of salary;

“full retirement account” has the meaning given in regulation 38(4) (establishment of full retirement account);

“full retirement pension” means full retirement standard earned pension;

“head of jurisdiction” means—in England and Wales, the Lord Chief Justice of England and Wales,in Scotland, the Lord President of the Court of Session, andin Northern Ireland, the Lord Chief Justice of Northern Ireland;

“ill-health pension” has the meaning given by regulation 56 (entitlement to ill-health pension);

“index adjustment” means, in relation to the opening balance of standard earned pension for any scheme year, the change in prices in the previous scheme year[^f00019];

“Judicial Pension Board” means the Judicial Pension Board established by regulation 6(1) (Judicial Pension Board: establishment) of the 2015 Regulations;

“last active scheme year” means the scheme year in which an active member of this scheme ceases to be in pensionable service under this scheme;

“last day of pensionable service” means the last day of a continuous period of pensionable service under this scheme;

“late payment supplement”, in relation to the provisional amount of deferred pension, means an additional amount of pension determined by the scheme manager after consulting the scheme actuary to be appropriate if a deferred member of this scheme is over normal pension age under this scheme before becoming entitled to the immediate payment of a full retirement pension;

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

“lump sum death benefit” means a lump sum paid under Chapter 4 of Part 8 (payment of lump sum death benefits) on the death of a member;

“maternity leave” means ordinary maternity leave or additional maternity leave as defined in regulation 2(1) (interpretation) of the Maternity and Parental Leave etc. Regulations 1999[^f00020];

“medical certificate” is a certificate prepared by a registered medical practitioner at the request of the scheme manager;

“member” means an active member, deferred member, pensioner member or pension credit member of this scheme;

“member contributions” has the meaning given in regulation 105 (rate of member contributions);

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

“normal minimum pension age” has the same meaning as in section 279(1) (other definitions) of FA 2004[^f00021];

“normal pension age”, in relation to this scheme, is determined in accordance with section 10 (pensions age) of the Act;

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

“opening balance” has the meaning given in regulation 31(3) (opening balance);

“option proportion” has the meaning given in regulation 50(2)(c) (partial retirement option notice);

“ordinary maternity leave” has the meaning given in regulation 2(1) (interpretation) of the Maternity and Parental Leave etc. Regulations 1999;

“parental leave” means leave under regulation 13(1) (entitlement to parental leave) of the Maternity and Parental Leave etc. Regulations 1999;

“partial retirement account” has the meaning given in regulation 40(2) (establishment of partial retirement account);

“partial retirement option” means the option exercisable under regulation 49(2) (exercise of partial retirement option);

“partial retirement pension” means partial retirement standard earned pension;

“partially retired”, in relation to a member of this scheme, means a member who has exercised the partial retirement option;

“paternity leave” means leave under regulation 4 (entitlement to paternity leave: birth) or 8 (entitlement to paternity leave: adoption) of the Paternity and Adoption Leave Regulations 2002[^f00022];

“pay period” means the period in respect of which a payment of pensionable earnings is made;

“pension credit” has the meaning given in section 124(1) (interpretation of Part 1) of PA 1995[^f00023];

“pension credit member”, in relation to this scheme, means a person who has rights under this scheme which are attributable (directly or indirectly) to a pension credit under a pension sharing order following divorce or nullity of marriage;

“pension credit member’s account” has the meaning given in regulation 42 (establishment of pension credit member’s account);

“pension credit member’s pension” means a pension payable under regulation 68 (entitlement to pension credit member’s pension);

“pension debit” means a debit under section 29(1)(a) (creation of pension credits and debits) of WRPA 1999;

“pension debit member”, in relation to this scheme, means a person who is a member of this scheme whose benefits or future benefits under this scheme have been reduced under section 31 (reduction under pension sharing order following divorce or nullity of marriage) of WRPA 1999;

“pensionable earnings” has the meaning given in regulation 16 (pensionable earnings);

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

“pension sharing order” means any provision or order specified in section 28 (activation of pension sharing) of WRPA 1999[^f00024];

“period of assumed pay” has the meaning given in regulation 17(1) (in relation to salaried office holders) and regulation 18(1) (in relation to fee-paid office holders);

“pre-2022 scheme” means—a scheme mentioned in any of paragraphs 2 to 15 of Schedule 5 to the Act (judicial schemes);a scheme mentioned in paragraph 2 of Schedule 5 to the Public Service Pensions Act (Northern Ireland) 2014[^f00025];the 2015 scheme;the scheme established by the Judicial Pensions Regulations (Northern Ireland) 2015[^f00026]; orthe Fee-Paid Judges Scheme;

“prospective normal pension age”, in relation to a member’s prospective entitlement to benefits under this scheme, means the normal pension age that the scheme manager, by reference to Treasury directions[^f00027] made under section 11(2) (valuations) of the Act, determines would apply in relation to those benefits;

“provisional amount of deferred pension” has the meaning given in regulation 35(2) (provisional amount of deferred pension);

“qualifying judicial office” has the meaning given in regulation 7 (qualifying judicial office);

“qualifying judicial service” has the meaning given in regulation 6 (qualifying judicial service) of the FPJR 2017;

“qualifying service” has the meaning given in regulation 45 (qualifying service);

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

“the relevant last day”, in relation to a continuous period of pensionable service, means—for a partially retired member, the day before the day on which the partial retirement option was exercised in accordance with regulation 50, orthe member’s last day of pensionable service;

“retirement index adjustment”, in relation to an opening balance, has the meaning given in regulation 21 (calculation of “retirement index adjustment”);

“retirement benefits” means benefits payable under Part 6 (retirement benefits);

“retirement pension” means any of the following—a full retirement pension;a partial retirement pension;an ill-health pension;

“salaried office” means an office where service is remunerated by the payment of salary, as opposed to the payment of fees;

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

“scheme actuary” means the actuary appointed by the Lord Chancellor under regulation 117 (appointment of scheme actuary and actuarial valuations);

“scheme advisory board” means the scheme advisory board established by regulation 9(1) (scheme advisory board: establishment) of the 2015 Regulations;

“scheme closing date” means 31st March 2022[^f00028];

“scheme manager” has the meaning given in regulation 4 (scheme manager) of the 2015 Regulations;

“scheme year” means a period of one year beginning with 1st April and ending with 31st March;

“standard earned pension” means pension which is earned under this scheme and which is payable without actuarial reduction at normal pension age;

“statutory pay” means—statutory adoption pay within the meaning of section 171ZL(1) (entitlement) of the Social Security Contributions and Benefits Act 1992(24)[^f00029];statutory maternity pay within the meaning of section 164(1) (statutory maternity pay - entitlement and liability to pay) of the Social Security Contributions and Benefits Act 1992;statutory paternity pay within the meaning of section 171ZA(1) (entitlement: birth) or 171ZB(1) (entitlement: adoption) of the Social Security Contributions and Benefits Act 1992[^f00030]; ...statutory shared parental pay within the meaning of section 171ZU (entitlement: birth) or section 171ZV (entitlement: adoption) of the Social Security Contributions and Benefits Act 1992[^f00031] ; or statutory neonatal care pay within the meaning of section 171ZZ16 (entitlement) of the Social Security Contributions and Benefits Acts 1992;

“surviving adult”, in relation to a deceased member of this scheme, has the meaning given in regulation 76 (surviving adults);

“surviving adult’s pension” has the meaning given in regulation 78 (meaning of “surviving adult’s pension”);

“surviving civil partner” has the meaning given in regulation 76;

“surviving spouse” has the meaning given in regulation 76;

“tax year” means a period of one year which is the period of assessment for income tax purposes;

“total allocation amount”, in relation to an amount of retirement pension, means the total amount of that pension allocated under Chapter 6 of Part 6 (allocation of part of pension);

“transfer value” has the meaning given in regulation 110 (interpretation of Part);

“transfer value payment” means payment of a transfer value;

“transition member” has the meaning given in paragraph 1 of Schedule 1;

“trivial commutation lump sum” has the meaning given in paragraph 7 of Schedule 29 to the FA 2004.

PART 2 — Establishment of the scheme

Establishment and scope

3

A career average revalued earnings scheme is established as a defined benefits scheme for the payment of pensions and other benefits to or in respect of—

(a) the judiciary[^f00032], and

(b) persons in respect of whom the Lord Chancellor makes a determination under section 25(5) (extension of schemes) of the Act.

PART 3 — Governance

Scheme manager

4

(1) Before exercising any discretion under these Regulations, the scheme manager must obtain a recommendation from the Judicial Pension Board.

(2) If the scheme manager exercises any discretion under these Regulations contrary to a recommendation made by the Judicial Pension Board, the scheme manager must provide written reasons for doing so to the Judicial Pension Board and to the member to whom the discretion relates (if any).

(3) The scheme manager and the Judicial Pension Board may agree that paragraphs (1) and (2) do not apply to specific discretions or in specific circumstances.

Delegation

5

(1) The Lord Chancellor may delegate any functions under these Regulations, including this power.

(2) The scheme manager may delegate any functions under these Regulations, including this power.

(3) The Judicial Pension Board may delegate any functions under these Regulations.

Payment of fees and expenses

6

The Lord Chancellor may—

(a) pay fees to or in respect of members of the Judicial Pension Board and the scheme advisory board of such amounts as the Lord Chancellor may determine; and

(b) reimburse members of the Judicial Pension Board and the scheme advisory board in respect of any reasonable expenses incurred by them in the performance of their duties in relation to this scheme.

PART 4 — Scheme membership

CHAPTER 1 — Eligibility for active membership

Qualifying judicial office

7

For the purpose of these Regulations, a person who is appointed to an office specified in an order made under paragraph 2 of Schedule 1 (judiciary) to the Act is in a qualifying judicial office.

Eligible persons

8

(1) For the purposes of this Part, an eligible person is a person who is eligible to be an active member of this scheme.

(2) A person who begins service in a qualifying judicial office (P) becomes an eligible person in relation to that service unless paragraph (3) applies.

(3) This paragraph applies if the terms of P’s office exclude P from being an active member of this scheme.

Service in two or more qualifying judicial offices

9

If a person is in service in two or more qualifying judicial offices, regulation 8 applies separately in relation to each office.

CHAPTER 2 — Pensionable service

Application of Chapter

10

(1) This Chapter applies in relation to a continuous period of service in a qualifying judicial office.

(2) If a person is in service in two or more qualifying judicial offices, this Chapter applies separately in relation to each of the offices.

Enrolment

11

A person (P) begins pensionable service under this scheme in relation to a qualifying judicial office on the first day on which P becomes an eligible person in relation to service in that office unless regulation 13 (opting out before the end of one month) applies.

Opting out of this scheme

12

(1) A person (P) opts out of this scheme in relation to service in a qualifying judicial office if P opts not to be an active member of this scheme in relation to that service.

(2) P may only exercise the option under paragraph (1) by notice to the scheme manager in a form required by the scheme manager (“opt-out notice”).

(3) The option is taken to be exercised on the date on which the opt-out notice is received by the scheme manager.

Opting out before the end of one month

13

(1) This regulation applies if a person (P) opts out of this scheme in relation to a continuous period of service in a qualifying judicial office before the end of one month after P’s first day of a continuous period of service in that office (or within any longer period the scheme manager considers appropriate).

(2) If this regulation applies, P is taken never to have been in pensionable service under this scheme in relation to the continuous period of service in that office.

Opting out after one month

14

(1) This regulation applies if a person (P) opts out of this scheme in relation to a continuous period of service in a qualifying judicial office not less than one month after P’s first day of a continuous period of service in that office.

(2) If P opts out of this scheme by opt-out notice, P ceases to be in pensionable service under this scheme in relation to that office—

(a) on the first day of the first pay period beginning on or after the date on which the option is exercised; or

(b) if the scheme manager considers that day inappropriate, on the first day of any later pay period the scheme manager considers appropriate.

Opting into this scheme

15

(1) A person (P) who, in relation to a qualifying judicial office, is an eligible person but is not in pensionable service under this scheme may opt to become an active member of this scheme in relation to service in that office.

(2) The option under this regulation may only be exercised by notice to the scheme manager in a form required by the scheme manager (“opt-in notice”).

(3) If P exercises the option under this regulation in relation to service in a qualifying judicial office, P is taken to exercise that option on the date on which the opt-in notice is received by the scheme manager.

(4) If P opts out of this scheme within 12 months after opting in, P may not opt in again until after the end of that period of 12 months.

CHAPTER 3 — Pensionable earnings

Pensionable earnings

16

For the purpose of calculating a member’s pension or other benefits under this scheme, the member’s pensionable earnings for any period are the sum of—

(a) the member’s earnings for service in a qualifying judicial office for that period; and

(b) any allowance granted on a permanent basis that the scheme manager determines to be pensionable earnings for that period.

Meaning of “assumed pay”: salaried office holders

17

(1) For the purpose of these Regulations, an active member of this scheme who is a salaried office holder (P) receives assumed pay in that office in respect of any period in which any of the circumstances in paragraph (3) apply (“period of assumed pay”).

(2) For the purpose of paragraph (1), “assumed pay” means the amount equal to the pensionable earnings that P would have received in that period if those circumstances had not applied.

(3) The circumstances are—

(a) P is on sick leave on reduced pay;

(b) P is on adoption leave, maternity leave, parental leave, paternity leave , additional paternity leave or neonatal care leave;

(d) P is on secondment to a different employer under an arrangement providing for P to continue to be an active member of this scheme in relation to P’s service although P is paid by that employer.

Meaning of “assumed pay”: fee-paid office holders

18

(1) Where a fee-paid office holder holds more than one judicial office, this regulation applies separately in relation to each office held.

(2) For the purpose of these Regulations, an active member of this scheme who is a fee-paid office holder (P) receives assumed pay in respect of any period in which any of the circumstances in paragraph (5) apply (“period of assumed pay”).

(3) For the purposes of paragraph (2), “assumed pay” means an amount of pensionable earnings for the period in question based upon the annualised amount calculated in accordance with paragraph (4).

(4) For the purposes of paragraph (3), the amount of pensionable earnings that P receives in respect of a particular office is calculated as follows—

Z per annum, where:

$$Z=JK$where—J means the total fee-paid income in respect of that particular office over the preceding three years, or, if less than three years, over the period since the first sitting day in that particular office;“preceding three years” means the period of three years ending with the day before the period of assumed pay;“period since the first sitting day in that particular office” means the period beginning with the first day in the particular office and ending with the day before the beginning of the period of assumed pay;K means the lesser of—3; orthe period in years (and a fraction of a year, determined by complete months) from the first sitting day in that particular office until the beginning of the period of assumed pay;“complete month” includes an incomplete month that consists of at least 16 days; andZ means the annualised total of fees from that particular office.$

(5) The circumstances are—

(a) P is on sick leave on reduced pay;

(b) P is on adoption leave, maternity leave, parental leave, paternity leave , additional paternity leave or neonatal care leave;

(d) P is on secondment to a different employer under an arrangement providing for P to continue to be an active member of this scheme in relation to P’s service although P is paid for by that employer.

(6) In this regulation, where P holds multiple assignments within the First-tier Tribunal or the Upper Tribunal, references to an office are to be taken as references to an assignment to a particular chamber.

CHAPTER 4 — Deferred membership

Meaning of “deferred member”

19

A person (P) becomes a deferred member of this scheme in relation to a continuous period of pensionable service under this scheme if—

(a) P ceases to be an active member of this scheme in relation to that period of service;

(b) P does not become a pensioner member of this scheme in relation to that period of service; and

Refund of all member contributions made by the member

20

(1) Member contributions made by the member are only refundable if—

(a) regulation 13 (opting out before the end of one month) applies; or

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

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

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

(2) If all member contributions made by the member are refunded under this regulation, the member’s rights under this scheme are extinguished.

(3) For the purposes of this regulation a refund of contributions may be made (at the election of the member)—

(a) by payment to the member; or

(b) by payment to a registered pension scheme.

PART 5 — Pension accounts

CHAPTER 1 — Calculation of adjustments

Calculation of “retirement index adjustment”

21

(1) The retirement index adjustment for an amount of accrued pension is—

$amount of accrued pension×retirement index percentage$

where—“amount of accrued pension” means an amount of any description of accrued pension;“retirement index percentage” means the retirement index percentage calculated under paragraph (2).

(2) The retirement index percentage is—

$$A×B12$where—A means the in-service revaluation index that applies in relation to this scheme for the leaving year;B is the number of complete months in the period between the beginning of the leaving year and the end of the relevant last day; and“complete month” includes an incomplete month that consists of at least 16 days.$

(3) In paragraph (2), “in-service revaluation index”, in relation to a pension scheme, means the percentage increase or decrease by which the pensionable earnings of a person, or a proportion of those earnings accrued as a pension, are revalued whilst the person is in pensionable service in that pension scheme.

Determination of “the age addition”

22

(1) This regulation applies in relation to every scheme year in which an active member’s account is open that is subsequent to the scheme year in which the member reaches normal pension age under this scheme, other than—

(a) the scheme year in which the account is established under this Part; and

(b) the scheme year immediately following that.

(2) At the beginning of the scheme year the scheme manager having regard to actuarial guidance must determine the age addition to be awarded for that scheme year by reference to the opening balance of that account for the previous scheme year.

(3) In these Regulations, “the age addition” means an additional amount of pension determined by reference to the proportion of the previous scheme year in which a member had reached normal pension age under this scheme.

Determination of “the assumed age addition”

23

(1) This regulation applies when a deferred member’s account, full retirement account or partial retirement account is established under this Part for a member who reaches normal pension age under this scheme at least one month before the relevant last day.

(2) For each description of accrued pension specified in the account, the scheme manager having regard to actuarial guidance must determine the assumed age addition to be awarded.

(3) In these Regulations, “the assumed age addition” means the age addition that would have been awarded for standard earned pension had the member not left pensionable service or not partially retired in the leaving year, determined by reference to the proportion of the leaving year for which the member was an active member of this scheme who had reached normal pension age under this scheme.

CHAPTER 2 — Calculation of accrued pension

Calculation of amount of accrued standard earned pension for purpose of deferment or full retirement

24

(1) For the purpose of calculating the amount of full retirement pension or the provisional amount of deferred pension, the amount of accrued pension is an amount calculated in accordance with this regulation.

(2) The amount of accrued standard earned pension is the total of the following amounts specified in the active member’s account as at the end of the relevant last day—

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

(b) the amount of standard earned pension for the last active scheme year.

Calculation of amount of accrued standard earned pension for purpose of partial retirement

25

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

(2) The amount of accrued standard earned pension is the option proportion of the total of the following amounts specified in the active member’s account as at the end of the relevant last day—

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

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

CHAPTER 3 — Pension accounts: general

Establishment of pension accounts: general

26

(1) A pension account—

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

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

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

Closure and adjustment of pension accounts on transfer out

27

(1) Except as otherwise provided in this regulation, the scheme manager must close all pension accounts relating to a member of this scheme if—

(a) a transfer value payment is made in respect of the member’s accrued rights under this scheme; or

(b) all members’ contributions made by the member are refunded to the member under Part 9 (contributions).

(2) Paragraph (1) does not require the scheme manager to close an account that includes amounts to which the transfer value payment does not relate or is not attributable.

(3) An account that is not closed because of paragraph (2) must be adjusted as the scheme manager considers appropriate to reflect the extinguishment of rights under this scheme.

(4) Paragraph (1)(a) does not require the scheme manager to close a pension credit member’s account if the transfer value payment is made in respect of the accrued rights of a member who is both—

(a) a pension credit member of this scheme; and

(b) an active member, deferred member or pensioner member of this scheme.

CHAPTER 4 — Active member’s account

Application of Chapter

28

(1) This Chapter applies in relation to a continuous period of pensionable service under this scheme.

(2) For a person who is an active member of this scheme in relation to two or more continuous periods of pensionable service at the same time, this Chapter applies separately in relation to each of those periods of service.

Establishment of active member’s account

29

(1) The scheme manager must establish a pension account for a member who is in pensionable service from the day on which the member begins pensionable service.

(2) For the purpose of these Regulations, an account established under paragraph (1) is called an active member’s account.

(3) Where a member holds multiple assignments within the First-tier Tribunal or the Upper Tribunal, the scheme manager must establish a pension account in respect of each assignment.

Amount of pension for a scheme year

30

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

(2) The active member’s account must specify the amount of standard earned pension for the scheme year.

(3) The amount of earned pension for a scheme year is—

(a) in relation to a member exercising the option mentioned in regulation 105 (rate of member contributions), 2.42% of the member’s pensionable earnings for that year; and

(b) in relation to any other case, 2.5% of the member’s pensionable earnings for that year.

Opening balance

31

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

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

(a) the opening balance for the scheme year and the index adjustment for the opening balance; and

(b) if applicable, the age addition awarded at the beginning of the scheme year.

(3) In these Regulations, “opening balance”—

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

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

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

(ii) the amount of pension for the previous scheme year as at the end of the previous scheme year; and

(iii) if applicable, the age addition awarded at the beginning of the previous scheme year.

Closure of active member’s account

32

(1) The scheme manager must close an active member’s account in relation to a period of service when the scheme manager establishes in relation to that period of service—

(a) a deferred member’s account under regulation 34 (establishment of deferred member’s account); or

(b) a full retirement account under regulation 38 (establishment of full retirement account).

(2) The scheme manager must re-establish an active member’s account under this Chapter when the scheme manager closes a deferred member’s account under regulation 37 (closure of deferred member’s account after gap in pensionable service not exceeding 5 years).

CHAPTER 5 — Deferred member’s account

Application of Chapter

33

(1) This Chapter applies in relation to a continuous period of pensionable service under this scheme.

(2) For a person who is a deferred member of this scheme in relation to two or more continuous periods of pensionable service, this Chapter applies separately in relation to each of those periods of service.

Establishment of deferred member’s account

34

(1) This regulation applies when an active member of this scheme becomes a deferred member of this scheme.

(2) The scheme manager must—

(a) close the active member’s account for the period of service in relation to which the member becomes a deferred member; and

(b) establish a pension account for the deferred member for that period of service.

(3) For the purpose of these Regulations, an account established under paragraph (2)(b) is called a deferred member’s account.

Provisional amount of deferred pension

35

(1) The deferred member’s account must specify the provisional amount of deferred pension.

(2) The provisional amount of deferred pension is the sum of—

(a) the amount of accrued standard earned pension calculated under regulation 24 (calculation of amount of accrued standard earned pension for purpose of deferment or full retirement) (“accrued amount”); and

(b) the assumed age addition (if any) for the accrued amount.

Adjustment of provisional amount

36

(1) This regulation applies when a deferred member of this scheme in relation to a period of service becomes entitled to the immediate payment of a full retirement pension for that period of service.

(2) For the provisional amount of deferred pension, the deferred member’s account must specify—

(a) the late payment supplement (if any);

(b) the early payment reduction (if any);

(d) the total allocation amount (if any).

Closure of deferred member’s account after gap in pensionable service not exceeding 5 years

37

(1) This regulation applies when a deferred member of this scheme in relation to a continuous period of pensionable service re-enters pensionable service under this scheme after a gap in pensionable service not exceeding 5 years.

(2) The scheme manager must—

(a) close the deferred member’s account in relation to that period of service and treat the deferred member’s account as if it were never established;

(b) re-establish the active member’s account under Chapter 4 (active member’s account) in relation to that period of service; and

(i) was in pensionable service under this scheme; but

(ii) received no pensionable earnings.

CHAPTER 6 — Full retirement account

Establishment of full retirement account

38

(1) This regulation applies in relation to a continuous period of pensionable service under this scheme.

(2) When an active member of this scheme becomes entitled to the immediate payment of a full retirement pension or an ill-health pension in relation to a continuous period of pensionable service under this scheme, the scheme manager must—

(a) close the active member’s account (or accounts, as the case may be) for that continuous period of pensionable service; and

(b) establish an account (or accounts, as the case may be) for the pensioner member for that period of service.

(3) When an active member of this scheme exercises the partial retirement option in respect of the whole of the member’s accrued pensions in one of their offices in relation to a continuous period of service and becomes entitled to the immediate payment of a full retirement pension in respect of the office or offices in which they are taking partial retirement, the scheme manager must—

(a) close the active member’s account (or accounts, as the case may be) for the period of earlier service;

(b) establish an account (or accounts, as the case may be) for the pensioner member for that period of earlier service; and

(c) establish a new active member’s account (or accounts, as the case may be) under Chapter 4 (active member’s account) for the member’s continuing service as if the first day of pensionable service is the day after the option date.

(4) For the purpose of these Regulations, an account established for a member under paragraph (2)(b) or (3)(b) is called a full retirement account.

(5) In this regulation—

“continuing service” means pensionable service that continues in accordance with regulation 49(2) (exercise of partial retirement option) from the option date;

“option date” means the date on which the partial retirement option is exercised and the member becomes entitled to the immediate payment of a full retirement pension; and

“period of earlier service” means the continuous period of pensionable service ending on the option date.

Amount of full retirement pension

39

(1) A full retirement account under regulation 38(4) must specify the amount of full retirement pension.

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

(a) the amount of the accrued standard earned pension calculated under regulation 24 (“accrued amount”); ...

(b) the assumed age addition (if any) for the accrued amount ; and

(3) The full retirement account must specify—

(a) the early payment reduction (if any);

(b) the commutation amount (if any); and

CHAPTER 7 — Partial retirement account

Establishment of partial retirement account

40

(1) This regulation applies if an active member of this scheme (P) in relation to a continuous period of pensionable service in respect of a particular office—

(a) exercises the partial retirement option in respect of part only of P’s accrued pensions for that period of service; and

(b) becomes entitled under regulation 51(a) (entitlement to partial retirement pension or full retirement pension) to the immediate payment of a partial retirement pension for that period of service.

(2) The scheme manager must—

(a) establish a pensioner member’s account (“the partial retirement account”) for that period of service; and

(b) adjust P’s active member’s account in accordance with paragraph (3).

(3) The amount of accrued pension for which a partial retirement option notice specifies an option proportion is reduced by that option proportion.

(4) After that adjustment, Chapter 4 (active member’s account) applies in relation to P as if the amount of accrued pension for which a partial retirement option notice specifies an option proportion had always been reduced by that option proportion.

(5) In this regulation, “partial retirement option notice” means an option notice under regulation 50 (partial retirement option notice).

(6) Where P exercises a partial retirement option under paragraph (1)(a) in respect of a First-tier Tribunal or Upper Tribunal office in which P holds multiple assignments (and therefore multiple accounts in accordance with regulation 29(3) (establishment of active member’s account)), paragraph (2) applies in respect of each account held.

Amount of partial retirement pension

41

(1) Any partial retirement account must specify the amount of partial retirement pension.

(2) The amount of partial retirement pension is the sum of—

(a) the amount of accrued standard earned pension calculated under regulation 24 (accrued amount); and

(b) the assumed age addition (if any) for the accrued amount.

(3) The partial retirement account must specify—

(a) the early payment reduction (if any);

(b) the commutation amount (if any); and

CHAPTER 8 — Pension accounts for pension credit members

Establishment of pension credit member’s account

42

(1) The scheme manager must establish a pension account for each pension credit member of this scheme (“the pension credit member’s account”).

(2) If a pension credit is derived from two or more pension debit members, the scheme manager must establish a pension credit member’s account in relation to each pension debit member.

(3) The pension credit member’s account must specify the amount of credited pension.

(4) On the establishment of the pension credit member’s account, the accounts established under this Part for the pension debit member must be reduced by the relevant amount.

(5) In this regulation—

“relevant amount” is the amount that the scheme manager, after consultation with the scheme actuary, considers appropriate having regard to— the cash equivalent that would have been payable under Chapter 2 of Part 4A (requirements relating to pension credit benefit: transfer values) of PSA 1993[^f00033] had this scheme been a funded occupational pension scheme in respect of the pension credit member’s right to benefits under this scheme attributable (directly or indirectly) to the pension credit; and the provisions of sections 29 (creation of pension credits and debits) and 31 (reduction of benefit) of WRPA 1999.

Other pension accounts

43

If a pension credit member of this scheme is also an active member, deferred member or pensioner member of this scheme, the scheme manager must establish a pension credit member’s account in addition to any other account established for the member under this Part.

PART 6 — Retirement benefits

CHAPTER 1 — General

Application of Part

44

This Part applies in relation to retirement benefits payable in respect of a continuous period of pensionable service under this scheme.

Qualifying service

45

(1) In these Regulations, “qualifying service” means the total of—

(a) any continuous period of pensionable service under this scheme;

(b) for a transition member with continuity of service, the member’s pensionable service under a pre-2022 scheme before the transition date for that member.

(2) None of the following counts as qualifying service—

(a) any pensionable service under this scheme in respect of which a person’s rights under this scheme are extinguished;

(b) any pensionable service under a pre-2022 scheme in respect of which a person’s rights under that scheme are extinguished;

(3) In this regulation a reference to “pensionable service” in relation to the Fee-Paid Judges Scheme is a reference to qualifying judicial service.

CHAPTER 2 — Full retirement benefits

Entitlement to full retirement pension

46

(1) A member of this scheme (P) is entitled to the immediate payment for life of a full retirement pension if—

(a) P has reached normal minimum pension age;

(b) subject to sub-paragraph (3), has ceased to be in qualifying judicial office; and

(2) But if P has not reached normal pension age under this scheme, P is not so entitled unless P has at least two years’ qualifying service.

(3) Where P exercises a partial retirement option under regulation 49(2) (exercise of partial retirement option), P is entitled to a full retirement pension under paragraph (1) in respect of the particular office or offices for which the option is being exercised, notwithstanding that P remains in qualifying judicial office.

(4) The claim for payment of a full retirement pension may only be made by notice to the scheme manager in a form required by the scheme manager.

(5) Where P resumes service in qualifying judicial office, this will not affect any entitlement under this regulation.

Annual rate of full retirement pension (active members)

47

(1) This regulation applies when an active member of this scheme becomes entitled to the immediate payment of a full retirement pension in respect of a particular office.

(2) The annual rate of a full retirement pension payable to the member is calculated by—

(a) taking the amount of that full retirement pension specified in the full retirement account;

(b) subtracting the early payment reduction (if any) specified in that account in relation to that amount;

(d) subtracting the total allocation amount (if any) specified in that account in relation to that amount.

(3) Where a member holds multiple accounts in respect of multiple assignments within the First-tier Tribunal or the Upper Tribunal, paragraph (2) applies in respect of each account held.

Annual rate of full retirement pension (deferred members)

48

(1) This regulation applies when a deferred member of this scheme becomes entitled to the immediate payment of a full retirement pension in respect of a particular office.

(2) The annual rate of full retirement pension payable to the member is calculated by—

(a) taking the provisional amount of deferred pension specified in the deferred member’s account;

(b) adding the late payment supplement (if any) specified in that account in relation to that provisional amount;

(d) subtracting the commutation amount (if any) specified in that account in relation to that amount; and

(e) subtracting the total allocation amount (if any) specified in that account in relation to that amount.

(3) Where a member holds multiple accounts in respect of multiple assignments within the First-tier Tribunal or the Upper Tribunal, paragraph (2) applies in respect of each account held.

CHAPTER 3 — Partial retirement benefits

Exercise of partial retirement option

49

(1) This regulation applies if—

(a) a person (P) is an active member of this scheme in relation to a continuous period of pensionable service;

(b) P has reached normal minimum pension age;

(c) the terms of P’s appointment have changed and as a result of that change the amount of P’s annual pensionable earnings in respect of service in a particular office is reduced to 80% of the amount before the change or less; and

(d) P would be entitled to the immediate payment of a full retirement pension if P left pensionable service and claimed payment of the pension in respect of that particular office.

(2) P may opt to continue in pensionable service but claim payment of the whole or part only of P’s accrued pensions in respect of a particular office for the continuous period of pensionable service before P’s pensionable earnings were reduced (“partial retirement option”).

(3) P may not exercise a partial retirement option more than once in respect of a particular judicial office.

(4) Where P holds more than one judicial office—

(a) P may exercise a partial retirement option separately in relation to each office held; and

(b) P may only access the pension accrued in relation to the particular office or offices in respect of which P is exercising the partial retirement option.

(5) For the purposes of calculating P’s annual pensionable earnings in relation to paragraph (1)(c) where P is a fee-paid office holder, the amount of pensionable earnings that P receives in respect of a particular office is calculated as follows—

Z per annum, where:

$$Z=JK$ where— J means the total fee-paid income in respect of that office over the preceding three years, or, if less than three years, over the period since P was first appointed to that office; K means the lesser of— 3; or the period in years (and a fraction of a year, determined by complete months) from the first sitting day in that particular office until the date of partial retirement; “complete month” includes an incomplete month that consists of at least 16 days; and Z means the annualised total of fees from that particular office.$

(6) Where P holds multiple assignments within the First-tier Tribunal or the Upper Tribunal—

(a) the reduction in earnings in paragraph (1)(c) refers to service in each chamber of the relevant tribunal; and

(b) in paragraph (5) references to an office are to be taken as references to an assignment to a tribunal chamber.

Partial retirement option notice

50

(1) A partial retirement option may only be exercised—

(a) by notice to the scheme manager in a form required by the scheme manager (“option notice”); and

(b) in the 3 months after P’s pensionable earnings are reduced, on a date agreed by the member and the scheme manager.

(2) An option notice must specify—

(a) if P holds more than one office, the office or offices in respect of which P is exercising the partial retirement option;

(b) whether P claims payment of—

(i) the whole of P’s accrued pensions to which the office relates; or

(ii) part only of P’s accrued pensions to which the office relates; and

(c) if P claims payment of part only, the proportion of each description of accrued pension for which payment is claimed (“option proportion”).

Entitlement to partial retirement pension or full retirement pension

51

An active member of this scheme (P) who exercises the partial retirement option is entitled to the immediate payment for life of—

(a) if P claims payment of part only of P’s accrued pensions, a partial retirement pension calculated in accordance with regulation 41(2) (amount of partial retirement pension); or

(b) if P claims payment of the whole of P’s accrued pensions, a full retirement pension calculated in accordance with regulation 39(2) (amount of full retirement pension).

Annual rate of partial retirement pension

52

(1) This regulation applies if an active member of this scheme (P) exercises the partial retirement option in respect of part only of P’s accrued pensions in the office from which P is taking partial retirement.

(2) The annual rate of partial retirement pension is calculated under regulation 47 (annual rate of full retirement pension (active members)) by reference to the amount of full retirement pension specified in the full retirement account.

(3) Regulation 47 applies as if—

(a) the reference to a full retirement pension were a reference to a partial retirement pension; and

(b) the reference to the full retirement account were a reference to the partial retirement account.

Annual rate of full retirement pension when taking partial retirement

53

(1) This regulation applies if an active member of this scheme (P) exercises the partial retirement option in respect of the whole of P’s accrued pensions in the office for which P is taking partial retirement.

(2) The annual rate of full retirement pension is calculated under regulation 47 (annual rate of full retirement pension (active members)) by reference to the amount of full retirement pension specified in the full retirement account.

(3) Regulation 47 applies as if the last day of pensionable service were the day before the day on which the member exercised the partial retirement option.

CHAPTER 4 — Ill-health benefits

Meaning of “permanent breakdown in health”

54

For the purposes of this Chapter, a member’s breakdown in health is “permanent” if it is likely to continue until the member reaches prospective normal pension age.

Meaning of “incapacity for employment”

55

For the purposes of this Chapter, a member’s permanent breakdown in health involves “incapacity for employment” if, as a result of the breakdown, the member is incapable of discharging the duties of their qualifying judicial office.

Entitlement to ill-health pension

56

(1) An active member of this scheme who has not reached normal pension age under this scheme is entitled to immediate payment of an ill-health pension under this scheme, in accordance with the provisions of this Chapter, if the following conditions are met—

(a) a member has claimed payment of an ill-health pension;

(b) a medical certificate states that the member has suffered a permanent breakdown in health involving incapacity for employment; and

(i) the member has at least two years’ qualifying service, or

(ii) where the member has less than two years’ qualifying service, the scheme manager determines that the member is entitled to an ill-health pension.

(2) The annual rate of an ill-health pension payable under this regulation is calculated in accordance with regulation 57.

Annual rate of ill-health pension

57

(1) The annual rate of an ill-health pension is the sum of—

(a) the annual rate of full retirement pension, calculated in the same way as for an active member under regulation 47 (annual rate of full retirement pension (active members)), but without subtracting the early payment reduction; and

(b) an ill-health enhancement.

(2) In this regulation—

“an ill-health enhancement” means— for a salaried member, half the annual rate of a full retirement pension calculated in respect of the member’s assumed period of pensionable service and based on the member’s pensionable earnings in that particular office as at the date their pensionable service ceases; for a fee-paid member, half the annual rate of a full retirement pension calculated in respect of the member’s assumed period of pensionable service in that particular office and based on the member’s pensionable earnings calculated in accordance with paragraph (3), as at the date their pensionable service ceases;

“the member’s assumed period of pensionable service” means the period (expressed in years and complete months)— beginning with the day after the member’s continuous period of pensionable service in that particular office ceased; and ending with— for a member appointed for a fixed term, the day with which that term ends; or for all other appointments, the day before the day on which the member will reach prospective normal pension age (assuming that the member lives until that age);

“complete months” includes an incomplete month that consists of at least 16 days.

(3) In this regulation, for the purposes of calculating an ill-health enhancement for a fee-paid office-holder, the amount of pensionable earnings in a particular office is calculated as follows—

CHAPTER 5 — Payment options

Options under this Chapter

58

The options under this Chapter are—

(a) the option under regulation 60 (option to commute part of pension) to exchange part of a retirement pension for a lump sum;

(b) the option under regulation 61 (option to commute whole of member’s accrued pensions (serious ill-health)) to exchange the total of the member’s accrued pensions for a lump sum in cases of serious ill-health.

Exercising an option under this Chapter

59

A member may exercise an option under this Chapter by notice (a “commutation notice”) to the scheme manager in a form required by the scheme manager.

Option to commute part of pension

60

(1) A member who becomes entitled to the immediate payment of a retirement pension under this scheme may opt under this regulation to exchange part of the pension for a lump sum.

(2) An option under this regulation may only be exercised before the first payment of the pension is made.

(3) Where a member exercises the option mentioned in paragraph (1), for every £1 by which the amount of the member’s annual rate of pension is reduced, the member must be paid a lump sum of £12.

(4) A member may not exchange pension for lump sum under this regulation to the extent that it would result in more than 35.7% of the member’s pre-commuted pension being exchanged for the lump sum.

Option to commute whole of member’s accrued pensions (serious ill-health)

61

(1) This regulation applies where there is a medical certificate stating that an active member or deferred member of this scheme has a life-expectancy of less than 12 months.

(2) The member may opt under this regulation to exchange the total of that member’s accrued pensions for a lump sum.

(3) An option under this regulation may only be exercised before the first payment of the pension is made.

(4) The lump sum payable to the member is an amount equal to—

(A+B+C) x 5

where—

A means the total annual amount of full retirement pension;

B means the total annual amount of partial retirement pension; and

C means the total annual amount of ill-health pension.

(5) For the purpose of paragraph (4), “total annual amount” means—

(a) in relation to a full retirement pension or partial retirement pension to which the member would be entitled apart from this option, the sum of—

(i) the annual rate of pension to which the member would be entitled apart from this option, calculated as at the date the option is exercised, but without subtracting the early payment reduction (if any); and

(ii) the amount of increase (if any) in the annual rate of that pension under PIA 1971 calculated as at that date; and

(b) in relation to an ill-health pension, the sum of—

(i) the annual rate of pension to which the member would be entitled apart from this option, calculated as at the date when payment would first be due, but without subtracting the early payment reduction (if any); and

(ii) the amount of increase (if any) in the annual rate of that pension under PIA 1971 calculated as at that date.

(6) The lump sum must be paid to the member as soon as is reasonably practicable after the option is exercised.

Commutation supplement

62

(1) Where—

(a) a member (P) ceases to be in pensionable service under this scheme (other than by death in service); and

(b) P has exercised the option under either regulation 60(1) or regulation 61(2),

CHAPTER 6 — Allocation of part of pension

Allocation election

63

(1) This regulation applies in relation to a full retirement pension or a partial retirement pension payable in respect of a member’s pensionable service under this scheme.

(2) The member may elect to allocate part of the retirement pension to a beneficiary (“allocation election”).

(3) The beneficiary of an allocation election must be a person who, when the allocation election is made, is—

(a) the member’s spouse or civil partner;

(b) financially wholly or mainly dependent on the member; or

(4) If the member wishes to allocate pension to more than one beneficiary, the member must make a separate allocation election in respect of each beneficiary.

Restriction on total amount of pension that may be allocated

64

(1) The sum of the following must not exceed the annual rate of retirement pension that would be payable to the member (P)—

(a) the total amount of retirement pension allocated under this Part (“total allocation amount”); and

(b) the annual rate of surviving adult’s pension that would be payable on P’s death.

(2) In determining whether the restriction in paragraph (1) is met, it is to be assumed that—

(a) P will have become a pensioner member before P’s death;

(b) P will exercise the commutation option so as to exchange for a lump sum the maximum amount possible;

(d) all of the beneficiaries of P to whom an allocation is made will survive P.

(3) If at the time an allocation election is made it would result in the restriction in paragraph (1) not being met, the scheme manager may treat the election (or each of the elections) as allocating a smaller amount that would result in the restriction being met.

Making an allocation election

65

(1) If requested by a member (P), the scheme manager must advise P of the last day on which P may make an allocation election.

(2) An allocation election may only be made—

(a) by notice to the scheme manager in a form required by the scheme manager; and

(b) before the election closing date.

(3) An allocation election must—

(a) specify the amount of retirement pension to be allocated;

(b) name the beneficiary;

(i) P is in good health; and

(ii) the beneficiary is a person who meets the conditions set out in regulation 63(3) (allocation election); and

(d) be accompanied by a medical certificate giving the opinion that P is in good health.

(4) Before the election closing date, the member may, by notice to the scheme manager in a form required by the scheme manager—

(a) revoke the election; or

(b) amend the election by altering the amount of retirement pension to be allocated.

(5) Subject to paragraph (6) or (7), the election takes effect on the election closing date.

(6) An allocation election has no effect unless the scheme manager is satisfied that when P made the election the matters stated in the declaration were true.

(7) An allocation election has no effect if P or the beneficiary dies before the election closing date.

(8) In this regulation, “election closing date” means the earlier of—

(a) the date advised by the scheme manager under paragraph (1); or

(b) the day before the pension becomes payable.

Effect of allocation election

66

(1) If an allocation election takes effect—

(a) the member’s pension is reduced accordingly (and this reduction applies even if the beneficiary predeceases the member); and

(b) if the beneficiary survives the member, on the member’s death the beneficiary becomes entitled to the payment of a pension for life (“allocated pension”) of an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to—

(i) the amount of retirement pension allocated under the election, and

(ii) the beneficiary’s age and gender.

(2) The scheme manager may withhold payment from the beneficiary if—

(a) the member dies before the end of the period of two years beginning with the date on which the election takes effect; and

(b) the scheme manager is satisfied that the member made a false declaration about the member’s state of health when making the election.

(3) An allocation election in relation to a retirement pension has no effect if it would result in an allocated pension being paid—

(a) on the member becoming entitled to the retirement pension, to a person who is not—

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

(ii) financially wholly or mainly dependent on the member; or

(iii) financially interdependent with the member;

(b) on the death of the member, to a person who is not the member’s surviving adult.

Adjustment of allocated benefit (members who have reached the age of 75)

67

(1) The amount of allocated pension payable to the beneficiary of an allocation election may be adjusted in a manner determined by the scheme manager if the member who made the allocation election dies after reaching the age of 75.

(2) In this regulation, “allocated pension” has the meaning given in regulation 66(1)(b).

PART 7 — Pension credit and debit members

CHAPTER 1 — Benefits for pension credit members

Entitlement to pension credit member’s pension

68

A pension credit member (P) of this scheme is entitled to the immediate payment for life of a pension credit member’s pension under this scheme if—

(a) P has reached normal pension age;

(b) the pension sharing order under which P is entitled to the pension credit has taken effect; and

Claim for early payment

69

(1) This regulation applies in relation to a pension credit member (P) who—

(a) has reached normal minimum pension age; and

(b) has not reached normal pension age under this scheme.

(2) P may claim early payment of a pension credit member’s pension by notice to the scheme manager in a form required by the scheme manager.

(3) A claim for early payment must specify the date on which payment of the pension is claimed (“the claim date”).

(4) P is entitled to the immediate payment for life of a pension credit member’s pension on the claim date if the scheme manager is reasonably satisfied that on that date the requirements of regulation 7(5) (early retirement or deferred retirement) of the Pension Sharing (Pension Credit Benefit) Regulations 2000[^f00034] are met.

Pension credit member’s rights

70

(1) Benefits that are attributable (directly or indirectly) to a pension credit may not be aggregated with any other benefit to which a pension credit member is entitled under this scheme.

(2) If a pension credit member is a dual capacity member, 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.

Annual rate of pension credit member’s pension

71

The annual rate of a pension credit member’s pension is calculated by—

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

(b) subtracting the early payment reduction (if any) specified in that account in relation to that amount; and

Option for pension credit member to commute part of pension

72

(1) A pension credit member who becomes entitled to payment of a pension credit member’s pension under this scheme may, subject to paragraph (5), opt to exchange part of the pension for a lump sum.

(2) The option under this regulation may only be exercised—

(a) by notice to the scheme manager in a form required by the scheme manager; and

(b) before the first payment of the pension is made.

(3) If a pension credit member exercises the option under this regulation, for every £1 by which the amount of the member’s annual rate of pension is reduced, the member must be paid a lump sum of £12.

(4) This regulation does not apply if the pension debit member from whose rights the pension is derived received a lump sum under this Part before the date on which the pension sharing order takes effect.

(5) For the purposes of paragraph (1) the part of the pension exchanged must not exceed 35.7% of the overall value of the pension.

Option for pension credit member to commute whole pension (serious ill-health)

73

(1) This regulation applies to a pension credit member who can show, to the satisfaction of the scheme manager, that they have a life expectancy of less than 12 months.

(2) The pension credit member may opt to exchange the whole of the pension credit member’s pension under this scheme for a lump sum.

(3) The option under this regulation (“this option”) may only be exercised—

(a) by notice to the scheme manager in a form required by the scheme manager; and

(b) before the first payment of the pension is made.

(4) The lump sum—

(a) is an amount equal to the total annual amount of the pension credit member’s pension, multiplied by 5; and

(b) must be paid to the pension credit member as soon as is reasonably practicable after this option is exercised.

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