Part DRetirement Benefits

Overriding provisions (contracting-out and Finance Act requirements, etc.)

Guaranteed minimum pensions for members in contracted-out employment, etc.

D16.—(1) Where—

(a)the employment of a member in any local government employment is contracted-out employment; and

(b)the member has a guaranteed minimum pension under section 10 of the Pension Schemes (Northern Ireland) Act 1993 in relation to benefits under these regulations,

then paragraphs (2) to (4) apply as respects the member’s employment.

(2) The member who ceases to hold his local government employment is from the date on which he attains state pensionable age entitled to a pension at a weekly rate equal to that guaranteed minimum (unless on ceasing to hold his local government employment he is entitled to a retirement pension at a higher rate).

(3) If the member—

(a)attains state pensionable age while in local government employment;

(b)continues in the same employment for a further period of 5 years; and

(c)does not then cease to hold it,

then he is entitled from the end of that period to so much of his retirement pension as equals that guaranteed minimum (unless he consents to a postponement of the entitlement).

(4) The guaranteed minimum referred to in paragraphs (2) and (3) shall, so far as it is attributable to earnings factors for the tax year 1988-89 or for subsequent tax years, be increased in accordance with the requirements of section 105 of the Pension Schemes (Northern Ireland) Act 1993.

(5) A person’s retirement pension is not to be reduced under regulation D13 to less than the aggregate of—

(a)any minimum rate of equivalent pension benefits applicable under the Insurance Act, and

(b)the annual rate obtained by multiplying one eightieth of the person’s pensionable remuneration by the length in years of the whole period of the person’s membership in contracted-out employment during the period beginning with the relevant date and ending with 30th April 1995.

(6) In paragraph (5) “the relevant date” means—

(a)in the case of a man, 17th May 1990; and

(b)in the case of a woman, 6th April 1978.

(7) Where—

(a)if these regulations had come into force on 17th May 1990, a man would have been entitled to make an election under regulation D9(3), and

(b)he gives notice of such election within six months of the commencement date,

the election may be expressed to have the effect as if these regulations had commenced on 17th May 1990 and the notice had been given on the first day on which he would in that case have been entitled to give notice of the election.

(8) Where a person’s local government employment is or was contracted-out employment, a surrender under regulation D14 (together with any previous surrenders) shall not result—

(a)in the annual rate of the retirement pension being less than one eightieth of the pensionable remuneration, multiplied by the length in years of the whole period of his membership in contracted-out employment after 5th April 1978, or

(b)(disregarding the effect of the preceding paragraphs) in the weekly rate of the retirement pension being less than his guaranteed minimum, if any.

(9) Where a person making a surrender under regulation D14—

(a)is in local government employment,

(b)has attained normal retirement age, and

(c)has a statutory pension entitlement,

references in paragraph (8) to the retirement pension are references to the retirement pension which would become payable if he were to cease to hold his employment on the day on which the surrender takes effect.

(10) Where this regulation applies it overrides any provision in these regulations to the extent to which it conflicts with it, except—

(a)regulation D15 and Part I of Schedule D5 (reduction of retirement pension in the case of certain re-employed pensioners);

(b)regulation H4 (forfeiture of rights); and

(c)regulation H5 (commutation of small pensions).