This Statutory Rule has been printed in substitution of the SR of the same number and is being issued free of charge to all known recipients of that Statutory Rule.

2014 No. 290

Public Service Pensions

The Public Service (Civil Servants and Others) Pensions Regulations (Northern Ireland) 2014

Made26th November 2014

Coming into operation in accordance with regulation 1(2) and (3)

The Department of Finance and Personnel makes these Regulations in exercise of the powers conferred by sections 1(1), (2)(a)1, 2(1), 3(1), (2), (3)(a) and (c), 4(5) and (6) as read with sections 4(1), 5(1) and (3)(c), 8(1)(a)2, 12(6) and (7)3, 18(5), (6), (7) and (8), 25(3), paragraph 1 of Schedule 2, Schedule 3 and paragraphs 1(2)(ii) and 2(2)(ii) and 5(1) of Schedule 7 to the Public Service Pensions Act (Northern Ireland) 20144.

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

PART 1Preliminary

Citation and commencementI11

1

These Regulations may be cited as the Public Service (Civil Servants and Others) Pensions Regulations (Northern Ireland) 2014.

2

Part 1, regulations 138 and 182, Schedule 1 (payments for extra pension) and Schedule 2 (transitional provisions) shall come into operation on 18th December 2014.

3

The remaining provisions come into operation on 1st April 2015.

InterpretationI22

In these Regulations—

“the Act” means the Public Service Pensions Act (Northern Ireland) 2014;
“the 1971 Act” means the Pensions (Increase) Act (Northern Ireland) 19715;
“the 1972 Order” means the Superannuation (Northern Ireland) Order 19726;
“the 1993 Act” means the Pension Schemes (Northern Ireland) Act 19937;
“the 1995 Order” means the Pensions (Northern Ireland) Order 19958;
“the 1999 Order” means the Welfare Reform and Pensions (Northern Ireland) Order 19999;
“the 2004 Act” means the Finance Act 200410;
“accrued added pension” means—
1. a
  accrued added (self only) pension (if any); and
2. b
  accrued added (all beneficiaries) pension (if any);
“accrued club transfer earned pension”—
1. a
  for the purpose of calculating the amount of a description of full retirement pension or the provisional amount of a description of deferred pension, is the amount calculated in accordance with regulation 35(5);
2. b
  for the purpose of calculating the F44amount of a description of partial retirement pension, is the amount calculated in accordance with regulation 36(5);
“accrued earned pension” means—
1. a
  in relation to this scheme—
  1. i
    accrued standard earned pension (if any);
  2. ii
    accrued earned pension attributable to an effective pension age option (if any);
  3. iii
    accrued club transfer earned pension (if any);
2. b
  in relation to another pension scheme, accrued rights to benefits under that scheme which are the equivalent of accrued earned pension under this scheme;
“accrued pension” means—
1. a
  accrued earned pension under this scheme; and
2. b
  accrued added 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”—
1. a
  for the purpose of calculating the amount of a description of full retirement pension or the provisional amount of any description of deferred pension, is the amount calculated in accordance with regulation 35(3);
2. b
  for the purpose of calculating the amount of a description of partial retirement pension, is the amount calculated in accordance with regulation 36(3);
F45“active member” has the meaning given in regulation 2A;
“active member’s account” has the meaning given in regulation 40(2);
“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 consulting with the scheme actuary or taking into account tables prepared by the scheme actuary;
“actuarial tables” means tables determined by the scheme manager after consultation with the scheme actuary;
“added pension” means, in relation to this scheme—
1. a
  added (self only) pension (if any); and
2. b
  added (all beneficiaries) pension (if any);
“added pension payments” means periodical payments or a lump sum payment for added pension made to this scheme;
F46“additional adoption leave” means additional ordinary adoption leave under Article 107B of The Employment Rights (Northern Ireland) Order 1996;
F47“additional maternity leave” has the meaning given in regulation 2(1) of the Maternity and Parental Leave etc. Regulations (Northern Ireland) 1999;
F48...12
“Admission Agreement” has the meaning given in regulation 16;
F49“adoption leave” means ordinary adoption leave or additional adoption leave;
“age addition” has the meaning given in regulation 33(4);
“the allocation amount” means the amount of the pension allocated as a result of making an allocation election;
“allocation election” means an election under regulation 86;
“amount of added pension”, in relation to a scheme year, means an amount calculated in accordance with regulation 43(7);
“amount of credited pension” has the meaning given in regulation 56(5);
“amount of earned pension”, in relation to a scheme year, means an amount calculated in accordance with regulation 43(4);
“annual allowance” has the meaning given in section 228 (annual allowance) of the 2004 Act14;
“annual allowance charge” has the meaning given in section 227 (annual allowance charge) of the 2004 Act15;
“annual rate”—
1. a
  for each description of pension, has the meaning given in Part 6 (retirement benefits); and
2. b
  in relation to pensionable earnings, means the amount of pensionable earnings payable for a scheme year;
“assumed age addition” has the meaning given in regulation 34(3);
“assumed pay” has the meaning given in regulation 27(2);
“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 the 1971 Act16;
“beneficiary”, in relation to a deceased member, means the surviving adult or eligible child of the member;
F50“child-related leave” means adoption leave, maternity leave, parental leave, paternity leave or shared parental leave;
“civil service” means the civil service of Northern Ireland;
“closing date”, in relation to a transition member, has the meaning given in paragraph 1 of Schedule 2 (transitional provisions);
“club scheme” means a registered occupational pension scheme (other than a connected scheme) that has agreed to make and receive club transfer value payments under the club transfer arrangements;
“club transfer” means a transfer to or from this scheme under the club transfer arrangements;
“club transfer arrangements” means arrangements approved by the scheme manager as providing reciprocal arrangements between this scheme and other registered occupational pension schemes for making and receiving club transfer value payments;
“club transfer earned pension” means pension attributable to the receipt of a club transfer value payment;
“club transfer value” has the meaning given in regulation 141
“club transfer value payment” means payment of a club transfer value;
“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—
1. a
  exercisable under regulation 84 in relation to a retirement pension ;or
2. b
  exercisable under regulation 97 in relation to a pension credit member’s pension;
“compensation scheme” means—
1. a
  the Civil Service Compensation Scheme (Northern Ireland) made under Article 3 (superannuation schemes as respects civil servants etc.) of the 1972 Order17 which was made on the 28th August 1996, as amended from time to time;
2. b
  a scheme made under section 1(2)(a) of the Act providing for redundancy compensation payments;
F51“connected scheme” has the meaning given in regulation 2B;
“continuity of service”, in relation to a transition member, has the meaning given in paragraph 2 of Schedule 2;
“continuous period of pensionable service”, in relation to this scheme, means a period of pensionable service under this scheme disregarding any gap in pensionable service not exceeding 5 years, unless otherwise provided;
“death benefits” means benefits payable under Part 8 (death benefits);
“deferred member”, in relation to this scheme, has the meaning given in regulation 28;
“deferred member’s account” has the meaning given in regulation 47(3);
“description of accrued added pension” means any of the following—
1. a
  accrued added (self only) pension; or
2. b
  accrued added (all beneficiaries) pension;
“description of accrued pension” means accrued pension of a description mentioned in regulation 29;
“description of added pension” means any of the following—
1. a
  added (self only) pension; F52...
2. b
  added (all beneficiaries) pension;
“description of deferred pension” means any of the following—
1. a
  deferred standard earned pension;
2. b
  deferred earned pension attributable to an effective pension age option;
3. c
  deferred club transfer earned pension;
4. d
  deferred added (all beneficiaries) pension;
5. e
  deferred added (self only) pension;
“description of full retirement pension” means a full retirement pension of a description mentioned in regulation 30;
“description of partial retirement pension” means a partial retirement pension of a description mentioned in regulation 31;
“description of pension” means any of the following—
1. a
  standard earned pension;
2. b
  transferred pension;
3. c
  earned pension attributable to an effective pension age option;
4. d
  club transfer earned pension;
5. e
  added (all beneficiaries) pension;
6. f
  added (self only) pension;
“the Department” means the Department of Finance and Personnel;
“dual capacity member” has the meaning given in regulation 160;
“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 or, if applicable, effective pension age;
“effective pension age”, in relation to a member who has exercised an effective pension age option, means the age at which the member is entitled to payment, without actuarial reduction, of a full retirement earned pension or partial retirement earned pension attributable to that option;
“effective pension age payments” has the meaning given in paragraph 1 of Schedule 1 (payments for extra pension);
“effective pension age option” has the meaning given in paragraph 1 of Schedule 1;
“eligible child” has the meaning given in regulation 113;
“eligible child’s pension” has the meaning given in regulation 112;
“employment” includes an office or appointment and related expressions are to be read accordingly;
“Fair Deal eligible person” has the meaning given in regulation 16;
“Fair Deal transfer date” has the meaning given in regulation 16;
“full retirement account” has the meaning given in regulation 51(4);
“full retirement added pension” means, unless otherwise provided—
1. a
  full retirement added (self only) pension (if any); and
2. b
  full retirement added (all beneficiaries) pension (if any);
“full retirement earned pension” means, unless otherwise provided—
1. a
  full retirement standard earned pension (if any);
2. b
  full retirement earned pension attributable to an effective pension age option (if any);
3. c
  full retirement club transfer earned pension (if any);
“full retirement pension” means—
1. a
  full retirement earned pension; and
2. b
  full retirement added pension (if any);
“guaranteed minimum” means the guaranteed minimum as defined in sections 1018 (earner’s guaranteed minimum) and 1319 (minimum pensions for widows and widowers) of the 1993 Act—
1. a
  as increased in accordance with the requirements of section 10520 of that Act (annual increase of guaranteed minimum pensions); and
2. b
  if a reduction has been made under section 11A21 of that Act (reduction of guaranteed minimum in consequence of pension debit), as reduced in accordance with that section;
“ill-health pension”, in relation to pension payable under this scheme, means—
1. a
  a lower tier earned pension; and
2. b
  an upper tier top up earned pension (if applicable); or
3. c
  if paragraph 29 of Schedule 2 applies, a pension payable under that paragraph;
“index adjustment” means—
1. a
  in relation to the opening balance of a description of pension other than club transfer earned pension for any scheme year, the change in prices in F53the previous scheme year22;and
2. b
  in relation to the opening balance of club transfer earned pension for any scheme year, the in-service revaluation index that the sending scheme would have applied to the transferred pension for F54the previous scheme year , had it not been transferred.
“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;
“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 any description 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 F4is over normal pension age under this scheme or, if applicable, effective pension age, 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;
“lower tier earned pension” means accrued earned pension payable if a member meets the lower tier payment threshold;
“lower tier payment threshold” has the meaning given in regulation 72;
“lump sum death benefit” means a lump sum paid under Part 8 (death benefits) on the death of a member;
“maternity leave” means ordinary maternity leave or additional maternity leave F55...23;
“member”, in relation to this scheme, means an active member, deferred member, pensioner member or pension credit member of this scheme;
“member contributions” has the meaning given in regulation 134;
“normal minimum pension age” has the same meaning as in section 279(1) (other definitions) of the 2004 Act24.
“normal pension age”, in relation to this scheme, is determined in accordance with section 10 of the Act;
“occupational pension scheme” has the meaning given in section 1 (categories of pension schemes) of the 1993 Act25;
“opening balance”, in relation to a description of pension for a scheme year, has the meaning given in regulation 44;
“option proportion”, in relation to a description of accrued pension, means the proportion specified in a notice under regulation 65;
F56“ordinary adoption leave” means ordinary adoption leave under Article 107A of The Employment Rights (Northern Ireland) Order 19965;
“ordinary maternity leave” has the meaning given in regulation 2(1) of the Maternity and Parental Leave etc. Regulations (Northern Ireland) 1999;
“parental leave” has the meaning given in regulation 2(1) of the Maternity and Parental Leave etc. Regulations (Northern Ireland) 1999;
“partial retirement account” has the meaning given in regulation 54;
“partial retirement added pension” means—
1. a
  partial retirement added (self only) pension (if any); and
2. b
  partial retirement added (all beneficiaries) pension (if any);
“partial retirement earned pension” means—
1. a
  partial retirement standard earned pension (if any);
2. b
  partial retirement earned pension attributable to an effective pension age option (if any); F57and
3. c
  partial retirement club transfer earned pension (if any);
“partial retirement option” means the option exercisable under regulation 64;
“partial retirement pension” means—
1. a
  partial retirement earned pension; and
2. b
  partial retirement added pension (if any);
“partially retired”, in relation to a member of this scheme, means a member who has exercised the partial retirement option;
F58“partnership pension account” has the meaning given in regulation 2C;
“paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations (Northern Ireland) 200226;
“pay period” means the period in respect of which a payment of pensionable earnings is made;
F60“PCSPS(NI) partial retirement option” means the option exercisable under rule—
1. a
  D.1A of Section I of the PCSPS(NI);
2. b
  3.3b of Section II of the PCSPS(NI); or
3. c
  E.4 of Section III of the PCSPS(NI);
“pension credit” has the meaning given under Article 121(1) of the 1995 Order27;
“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 56;
“pension credit member’s pension” means a pension payable under regulation 91;
“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 Article 28 (reduction of benefit) of the 1999 Order;
“pensionable earnings” has the meaning given in regulation 26;
“pensionable public service” means pensionable service under an existing scheme28 or an existing public body pension scheme as defined in paragraph 1 of Schedule 2 (transitional provisions);
F59“pensionable service”, in relation to a pension scheme, means service which qualifies a person to a pension or other benefits under that scheme;
“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 Article 25 (activation of pension sharing) of the 1999 Order29;
“period of assumed pay” has the meaning given in regulation 27(1);
“permanent pensionable earnings” has the meaning given in regulation 26(4);
“personal pension scheme” means a personal pension scheme as defined in section 1 (categories of pension schemes) of the 1993 Act that is a registered pension scheme;
“the PCSPS(NI)” means the Principal Civil Service Pension Scheme (Northern Ireland), the pension scheme made under Article 3 (superannuation schemes as respects civil servants etc.) of the 1972 Order which is the principal civil service pension scheme within the meaning of Article 4 further provisions relating to schemes under Article 3 of that Order;
“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 the Department’s directions under 11(2) of the Act, determines would apply in relation to those benefits;
“protected member”, in relation to the PCSPS(NI), has the meaning given in paragraph 1 of Schedule 2;
“provisional amount”, in relation to any description of deferred pension, has the meaning given in regulation 48(2);
“qualifying service” has the meaning given in regulation 59;
“registered”, in relation to a pension scheme, means registered under Chapter 2 of Part 4 (registration of pension schemes) of the 2004 Act;
“the relevant last day”, in relation to a continuous period of pensionable service, means—
1. a
  for a partially retired member, the day before the day on which the partial retirement option was exercised; and
2. b
  otherwise, the member’s last day of pensionable service;
“retirement index adjustment”, in relation to an amount of accrued pension, has the meaning given in regulation 32;
“retirement benefits” means benefits payable under Part 6 (retirement benefits);
“retirement pension” means any of the following—
1. a
  a full retirement pension;
2. b
  a partial retirement pension;
3. c
  an ill health pension (and any full retirement added pension payable with it);
“this scheme” means the scheme established by these Regulations;
“scheme actuary” means the actuary appointed by the Department under regulation 158;
“scheme closing date” means 31st March 2015;
“scheme employment” has the meaning given in regulation 13;
“scheme manager” has the meaning given in regulation 4;
“scheme medical adviser” means the medical adviser appointed by the scheme manager for the time being to provide a consulting service on medical matters relevant to this scheme;
“scheme year” means a period of one year beginning with 1st April and ending with 31st March;
“sending scheme” means a club scheme which pays a club transfer value;
F61“shared parental leave” has the meaning given in regulation 3(1) of The Shared Parental Leave Regulations (Northern Ireland) 20156;
“stakeholder pension scheme” means a scheme which is a stakeholder pension scheme for the purposes of Part 2 (Stakeholder Pension Schemes) of the 1999 Order (see Article 330 of that Order);
“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—
1. a
  statutory adoption pay within the meaning of section 167ZL(1) (entitlement) of the Social Security Contributions and Benefits (Northern Ireland) Act 199231;
2. b
  statutory maternity pay within the meaning of section 160(1) (statutory maternity pay – entitlement and liability to pay) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
3. c
  F62... statutory paternity pay within the meaning of section 167ZA(1) (entitlement: birth) or 167ZB(1) (entitlement: adoption) of the Social Security Contributions and Benefits (Northern Ireland) Act 199232; or
4. d
  F63statutory shared parental pay within the meaning of section 167ZU (Entitlement: birth) or section 167ZW (Entitlement: adoption) of the Social Security Contributions and Benefits (Northern Ireland) Act 19927;
“surviving adult”, in relation to a deceased member of this scheme, has the meaning given in regulation 100;
“surviving adult’s pension” has the meaning given in regulation 102;
“surviving civil partner” has the meaning given in regulation 100;
F64...
F65“surviving partner” has the meaning given in regulation 101;
“surviving spouse” has the meaning given in regulation 100;
“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 (retirement benefits);
“transfer payment” means a transfer value payment or a club transfer value payment;
“transfer value” has the meaning given in regulation 141;
“transfer value payment” means payment of a transfer value;
“the transferred services” has the meaning given in regulation 16;
“transferred pension” means pension attributable to the receipt of a transfer value payment;
F5transition date”, in relation to a transition member, has the meaning given in paragraph 1 of Schedule 2 (transitional provisions);
“transition member” has the meaning given in F66paragraph 1 of Schedule 2 (transitional provisions);
“upper tier top up earned pension” means top up earned pension payable if a member meets the upper tier payment threshold.
“upper tier payment threshold” has the meaning given in regulation 73;
F67“weekly rate”, in relation to a guaranteed minimum pension, means, in cases where the pension is paid otherwise than at weekly intervals, a rate which is equivalent to the earner’s guaranteed minimum having regard to the period in respect of which the pension is paid;
“whole of the member’s accrued pensions” means—
1. a
  all the member’s accrued earned pension under this scheme; and
2. b
  all the member’s accrued added pension (if any).

F38Active Membership2A

1

A person (P) is an active member of this scheme if—

a

P is in pensionable service under this scheme; or

b

P is not in pensionable service under this scheme and paragraph (2) or (3) applies.

2

i

paying contributions; or

ii

not paying contributions because the person is not receiving earnings which are pensionable earnings for the purposes of the person’s pension scheme (other than because the person is on an unauthorised absence); or

iii

not paying contributions because the person received benefits under section 2 (Compulsory and Redundancy category (1972 Section members)) of the Civil Service Compensation Scheme or section 3 (Flexible category (1972 Section members)) of that Scheme on the basis that the person’s reckonable service within the meaning of those sections was enhanced and the period by which that service was enhanced exceeds the period beginning with the day on which the person’s retirement under those sections began and ending with the day before the person was re-employed in the scheme employment.

PART 2Establishment of scheme

Establishment and scopeI973

1

A scheme is established for the payment of pensions and other benefits to or in respect of—

a

civil servants35; and

b

persons to whom this scheme may potentially relate by virtue of paragraph (2) and in respect of whom the Department makes a determination under section 25(5) of the Act.

2

This scheme may potentially relate to the following persons—

a

a person who holds an employment which is remunerated out of moneys appropriated by a transferred provision or out of a Consolidated Fund;

b

a person who holds an employment which is remunerated out of a fund established by or under an Act of the Northern Ireland Assembly;

c

a person who is employed by a public body specified in an Order made by the Department under section 32(1) of the Act.

d

a person who holds an employment which is listed in Schedule 1 (kinds of employment etc. Referred to in Article 3) to the 1972 Order36;

e

a person who holds an employment which is specified in an enactment as an employment to which the F68PCSPS(NI) relates or to which this scheme may potentially relate;

f

a person who holds an employment which is specified in a list produced for the purpose of Article 3(3A) (superannuation schemes as respects civil servants etc) of the 1972 Order37;

g

a person to whom this scheme relates by virtue of sub-paragraphs (a) to (e) and by virtue of a previous determination under section 25(5) of the Act who ceases to hold an employment mentioned in any of sub-paragraphs (a) to (e);

h

a person who, at any time before or after these Regulations come into operation—

i

ceased to be a civil servant; or

ii

ceased to hold an employment which F69was at the time the person ceased to hold that employment listed in Schedule 1 to the 1972 Order.

3

If the Department makes a determination under section 25(5) of the Act in relation to a person mentioned in F70paragraph (2)(f) to (h) , the person is not eligible to be an active member of this scheme unless the person meets the conditions of eligibility set out in regulation 16.

PART 3Governance

Scheme managerI984

1

a

to secure compliance with—

i

these Regulations;

ii

any other legislation relating to the governance and administration of this scheme and any statutory pension scheme that is connected with it; and

iii

requirements imposed by the Pensions Regulator in relation to this scheme or any statutory pension scheme that is connected with it; and

b

in the performance of the scheme manager’s functions under these Regulations.

3

The Northern Ireland Civil Service Pension Board may determine its own procedures, subject to the approval of the scheme manager.

Northern Ireland Civil Service Pension Board: membershipI1387

1

The Northern Ireland Civil Service Pension Board is to consist of the following members who are to be entitled to vote in its proceedings (“voting members”)—

a

a chair appointed by the scheme manager; and

b

at least 6, and no more than 16, persons appointed by the chair with the approval of the scheme manager.

2

The chair cannot be an employer representative or a member representative41.

3

Equal numbers of employer representatives and member representatives must be appointed under paragraph (1)(b), including a departmental finance director who is to be treated as an employer representative.

4

The chair may, with the approval of the scheme manager, appoint up to 4 members of the Northern Ireland Civil Service Pension Board, who are not to be entitled to vote in its proceedings (“non-voting members”).

5

A non-voting member cannot be an employer representative or a member representative.

6

A member of the Northern Ireland Civil Service Pension Board is to hold and vacate office in accordance with the terms of that member’s appointment.

7

In this regulation, “departmental finance director” means—

a

an accounting officer appointed by the Department under section 9(6) of the Government Resources and Accounts Act (NI) 200142; or

b

a civil servant43who has responsibility for the financial management of a government department.

Northern Ireland Civil Service Pension Board: conflicts of interestI1398

1

Before appointing, or approving the appointment of, any person under regulation 7, the scheme manager must be satisfied that that person does not have a conflict of interest44.

2

The scheme manager must be satisfied from time to time that none of the members of the Northern Ireland Civil Service Pension Board has a conflict of interest.

3

If the scheme manager determines that a member of the Northern Ireland Civil Service Pension Board has a conflict of interest, the scheme manager must terminate the appointment of the member.

4

A member of the Northern Ireland Civil Service Pension Board, or a person proposed to be appointed as such a member, must provide the scheme manager with any information the scheme manager may reasonably require for the purpose of paragraph (1) or (2).

Payment of fees and expensesI1409

The Department may—

a

pay fees to or in respect of members of the Northern Ireland Civil Service Pension Board of such amounts as the Department may determine; and

b

reimburse members of the Northern Ireland Civil Service Pension Board in respect of any reasonable expenses incurred by them in the performance of their duties in relation to this scheme.

2

Any person engaged under a contract for services or engaged locally overseas is not in F73scheme employment .

Eligible personsI14414

1

For the purpose of this Part an eligible person is a person who is eligible to be an active member of this scheme.

2

A person who is in service in a scheme employment (P) is an eligible person in relation to that service unless paragraph (3) or (4) applies.

3

This paragraph applies if the terms of the employment exclude P from being an active member of this scheme.

4

This paragraph applies if, in relation to service in that employment—

a

P is a protected member of the PCSPS(NI).

b

P has a partnership pension account; or

c

P is a member of any other pension scheme and P’s employer pays contributions to that scheme in respect of P.

Service in 2 or more scheme employmentsI14515

If a person is in service in 2 or more scheme employments, regulation 14 applies separately in relation to each employment.

if the scheme manager has agreed that P may carry out functions or services in another description of employment specified in a published list, those other functions or services must be treated as if they were the transferred services; and

c

time spent carrying out activities associated with the transferred services (such as training relevant to the transferred services) may be treated as time spent carrying out the transferred services.

5

A person who ceases to meet the conditions of eligibility ceases to be a Fair Deal eligible person on the date that the person ceases to meet those conditions.

6

In these F75Regulations —

“Admission Agreement” means a contractual agreement between the Department and P’s employer (and if applicable a F76third party ) relating to participation in this scheme;
“Fair Deal transfer date” means the date specified in the published list as the date on which a person, in order to be eligible to be an active member of this scheme in respect of the transferred services, must have been employed to carry out those services;
“published list” means a list of persons to whom the scheme relates published for the purposes of section 25(9) of the Act; and
“the transferred services”, in relation to a person, means the functions or services in the description of employment specified in a published list that relates to that person.

CHAPTER 2Pensionable service

Application of ChapterI14617

1

This Chapter applies in relation to a continuous period of service in a scheme employment.

2

If a person is in service in 2 or more scheme employments at the same time, this Chapter applies separately in relation to each of the employments.

Interpretation of ChapterI14718

In this Chapter—

“automatic re-enrolment date”, in relation to a person in service in a scheme employment, means a date determined under regulation 12 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations (Northern Ireland) 201047;
“continuous period of service”, in relation to scheme employment, means a period of service in scheme employment disregarding any gap in service not exceeding 5 years;
“first eligible day of service”, in relation to a continuous period of service in a scheme employment, means the day on which a person becomes an eligible person in relation to that service.

Automatic enrolmentI14819

1

Where a person (P) who is in pensionable service under this scheme moves from one scheme employment to another without a gap in service, P continues in pensionable service under this scheme.

2

A person (P) who is not in pensionable service under this scheme immediately before P’s first eligible day of service in a scheme employment begins pensionable service under this scheme on P’s first eligible day of service in that employment unless—

a

“benefit in kind” means anything other than money provided to a member of this scheme in connection with the member’s pensionable service;
“money value”, in relation to a benefit in kind, means—
1. a
  an amount determined by the employer in accordance with the arrangement under which the benefit is provided; or
2. b
  otherwise, an amount determined by the scheme manager;
“permanent pensionable earnings”, in respect of any period, means—
1. a
  basic pay in respect of that period F82(not including pay received in respect of a period of sick leave on reduced pay at a rate determined by the member’s employer to be appropriate because it is equivalent to the annual rate of an ill-health pension) ;
2. b
  any allowance granted on a permanent basis that the scheme manager determines to be permanent pensionable earnings in respect of that period; and
3. c
  the money value of any benefit in kind that the scheme manager determines to be permanent pensionable earnings in respect of that period;
“fluctuating pensionable earnings”, in respect of any period, means any of the following that the scheme manager determines to be fluctuating pensionable earnings in respect of that period—
1. a
  any non-consolidated performance-related pay not forming part of basic pay;
2. b
  any allowance not granted on a permanent basis; and
3. c
  the money value of any benefit in kind.

F835

In this regulation—

a

the total fluctuating pensionable earnings in respect of any period must not exceed one third of the total permanent pensionable earnings in respect of the same period.

b

for the purposes of this regulation “total fluctuating pensionable earnings” applies only to industrial employees of the Northern Ireland Civil Service, and means—

i

to the extent (if any) that the Department has determined that they are to be treated as fluctuating pensionable earnings for the purposes of these Regulations, bonuses, and

ii

to that extent (if any) allowances not granted on a permanent basis.

Meaning of “assumed pay”I8327

d

partial retirement added (self only) pension; and

e

partial retirement added (all beneficiaries) pension.

CHAPTER 2Calculation of adjustments

Calculation of “retirement index adjustment”I10532

1

F86Subject to regulation 32A, theF87... retirement index adjustment for an amount of accrued pension is—

a m o u n t o f a c c r u e d p e n s i o n \times r e t i r e m e n t i n d e x p e r c e n t a g e

where—

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

2

The retirement index percentage is—

A \times \frac{B}{12}

where—

A means—

a
for accrued club transfer earned pension, the in-service revaluation index that applies in relation to the sending scheme for the leaving year; and
b
for any other description of accrued pension, 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.

normal pension age under this scheme; or

b

where applicable, the member’s effective pension age.

b

must specify the details required by these Regulations.

3

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

Closure and adjustment of pension accounts on transfer outI15938

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 payment is made in respect of all of the member’s accrued rights under this scheme; or

b

all members’ contributions and payments for extra pension 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 payment or the refund 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 scheme51.

4

Paragraph (1)(a) does not require the scheme manager to close a pension credit member’s account if the transfer 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 5Active member’s account

3

The amount of club transfer earned pension for a scheme year must be specified separately in relation to each sending scheme.

4

The amount of earned pension for a scheme year is 2.32% of the member’s pensionable earnings for that year F91.

5

The amount of transferred pension for a scheme year is the amount (if any) which the member is entitled to count under regulation 152 for that year.

6

The amount of club transfer earned pension for a scheme year is the amount (if any) which the member is entitled to count under regulation 154 for that year.

7

The amount of added pension of any description for a scheme year is the amount (if any) credited to the active member’s account in that scheme year under paragraph 13 or 14 of Schedule1 (payments for extra pension).

8

In this regulation, “earned pension” means the following descriptions of pension—

a

standard earned pension (if any); and

b

earned pension attributable to the exercise of an effective pension age option (if any).

F929

For the purpose of paragraph (4), in respect of a period of assumed pay under this scheme, “pensionable earnings” means the member’s assumed pay.

Opening balance, index adjustment and age additionI16244

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 for each description of pension—

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” in relation to a description of pension—

a

for the scheme year immediately following the scheme year in which the active member’s account is established, means the amount of that 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 that pension for the previous scheme year and the index adjustment for that opening balance;

ii

the amount of that 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 accountI16345

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 47; or

b

a full retirement account under regulation 51.

2

The scheme manager must re-establish an active member’s account under this Chapter when the scheme manager closes—

F93the scheme manager must reduce that description of accrued pension by the option proportion specified; and

b

Chapter 5 (active member’s account) applies in relation to the member as if the amount of that description of accrued pension had always been so reduced.

4

In this regulation, “partial retirement option notice” means an option notice given in accordance with regulation 65.

for a partial retirement added (all beneficiaries) pension, accrued added (all beneficiaries) pension.

CHAPTER 9Pension accounts for pension credit members

Establishment of pension credit member’s accountI17356

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 2 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, and for that amount—

a

the early payment reduction (if any); and

b

the commutation amount (if any).

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—

“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 the 1999 Order;
“relevant amount” is the amount that the scheme manager, after consultation with the scheme actuary, considers appropriate having regard to—
1. a
  the cash equivalent that would have been payable under Chapter 2 of Part 4A (requirements relating to pension credit benefit: transfer values) of the 1993 Act52 in respect of the pension credit member’s right to benefits under this scheme attributable (directly or indirectly) to the pension credit; and
2. b
  the provisions of Articles 26 (creation of pension debits and credits) and 28 (reduction of benefit) of the 1999 Order.

Other pension accountsI17457

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 6Retirement benefits

CHAPTER 1General

Application of PartI17558

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

Annual rate of full retirement pension (active members)I17761

1

This regulation applies when an active member of this scheme becomes entitled to the immediate payment of a full retirement pension.

2

The annual rate of any description of a full retirement pension payable to the member is calculated by—

a

taking the amount of that description of 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;

c

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

d

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

3

The annual rate of any description of full retirement pension is calculated without subtracting the early payment reduction if the member buys out the early payment reduction in relation to that description of full retirement pension.

Annual rate of full retirement pension (deferred members)I17862

1

c

the active member’s account must be re-established under Part 5 (pension accounts) and treated as if it had never been closed.

CHAPTER 3Partial retirement benefits

Exercise of partial retirement optionI18064

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 on which P is employed have changed and as a result of that change the annual rate of P’s permanent pensionable earnings is reduced to 80% of their amount before the change or less; and

d

P would be entitled to the immediate payment of a full retirement pension in relation to that period of service if P left pensionable service and claimed payment of the pension.

2

P may opt to continue in pensionable service but claim payment of the whole or part only of P’s accrued pensions 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 relation to a description of accrued pension.

Partial retirement option noticeI18165

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

whether P claims payment of—

i

the whole of P’s accrued pensions; or

ii

part only of P’s accrued pensions; and

b

if P claims payment of part only—

i

the descriptions of accrued pension for which payment is claimed; and

ii

the proportion of each description of accrued pension for which payment is claimed (“option proportion”), which must comply with regulation 66.

Option proportionI18266

1

A partial retirement option which relates to a description of accrued added pension must relate to all of the descriptions of P’s accrued added pension.

2

If P claims payment of accrued standard earned pension P must also claim payment of any of P’s accrued added pension.

3

If P claims payment of P’s accrued added pension P must also claim payment of any accrued standard earned pension.

4

If P claims payment of part only of P’s accrued pensions, the following are the option proportions of each description of accrued pension which can be claimed—

a

100% of each of the descriptions of P’s accrued pensions for which payment is claimed;

b

an option proportion lower than 100% for one description of accrued pension claimed and 100% for each of the other descriptions of P’s accrued pension claimed.

5

For the purposes of paragraph (4)(b), any accrued standard earned pension and accrued added pension claimed is treated together as if it were one description of accrued pension.

Entitlement to partial retirement pension or full retirement pensionI18367

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 55; or

b

if P claims payment of the whole of P’s accrued pensions, a full retirement pension calculated in accordance with regulation 52.

Annual rate of partial retirement pensionI18468

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.

2

The annual rate of each description of partial retirement pension is calculated under regulation 61 by reference to the amount of each description of full retirement pension specified in the full retirement account.

3

Regulation 61 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 pensionI18569

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.

2

The annual rate of each description of full retirement pension is calculated under regulation 61 by reference to the amount of that description of full retirement pension specified in the full retirement account.

3

Regulation 61 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 4F41Ill-Health benefits

Annotations:

the member is not partially retired; and

b

the member’s breakdown in health involves total incapacity for employment.

F39Payment thresholds: further interpretation73A

In regulations 72 and 73, a reference to a member who is partially retired includes a reference to a transition member with continuity of service who has exercised the PCSPS(NI) partial retirement option.

Entitlement to ill-health pensionI11174

1

An active member of this scheme who has not reached normal pension age under this scheme is entitled to the immediate payment of an ill-health pension under this scheme, in accordance with the provisions of this Chapter, if the conditions in paragraph (2) are met.

2

The conditions are—

a

the member or the member’s employer has claimed payment of an ill-health pension;

b

the scheme medical adviser—

i

is of the opinion that the member has suffered a permanent breakdown in health involving incapacity for employment or total incapacity for employment; and

ii

gives the scheme manager and the employer a certificate stating that opinion (“ill-health retirement certificate”);

c

the member has at least 2 years’ qualifying service; and

d

the employer agrees that the member is entitled to retire on F97ill-health grounds.

3

If the member meets the lower tier payment threshold, a lower tier earned pension is payable in respect of the member’s continuous period of pensionable service.

4

If the member meets the upper tier payment threshold—

a

a lower tier earned pension is payable in respect of the member’s continuous period of pensionable service; and

b

an upper tier top up earned pension is payable in respect of the period that begins when the member becomes entitled to the immediate payment of an ill-health pension and ends when the member reaches prospective normal pension age.

5

A full retirement added pension of any description is payable with a lower tier earned pension if the full retirement account specifies an amount of full retirement added pension of that description.

1

The annual rate of ill-health pension is calculated as follows—

a

the annual rate of lower tier earned pension is calculated in the same way as the annual rate of full retirement earned pension54 is calculated under regulation 61, but without subtracting the early payment reduction;

b

the annual rate of upper tier top up earned pension is calculated in the same way as the annual rate of full retirement earned pension is calculated under regulation 61, but—

i

the references to the member’s full retirement earned pension are taken to be references to the enhancement fraction of the earnings-related part of that pension; and

ii

the early payment reduction is not subtracted;

2

The annual rate of any full retirement added pension payable with a lower tier earned pension is calculated in the same way as it is calculated under regulation 61, but without subtracting the early payment reduction.

3

In this regulation—

“the earnings-related part”, in relation to the member’s full retirement earned pension, means the proportion of that pension not attributable to an amount of transferred pension;
“the enhancement fraction” is
AB
where—
- A is the member’s assumed period of pensionable service (expressed in years); and
- B is the shorter of—
  1. a
    the member’s period of service (expressed in years); and
  2. b
    the number of scheme years in relation to which an amount of earned pension was specified in the active member’s account;
- “the member’s assumed period of pensionable service” means the period (expressed in years)—
  1. a
    beginning with the day after the member’s period of service ceased; and
  2. b
    ending with—
    1. i
      for a member employed for a fixed term, the day with which that term ends; or
    2. ii
      for a member otherwise employed, the day before the day on which the member will reach prospective normal pension age (assuming that the member lives until that age); and
- “period of service” means a continuous period of pensionable service under this scheme.

at the end of the period of 3 months beginning with the date on which the scheme medical adviser, after carrying out a review, gives an opinion that P is no longer incapable of gainful employment; or

b

if earlier, the day on which P returns to service in a scheme employment.

Deferment of accrued earned pension attributable to a transfer paymentI19178

1

This regulation applies in relation to a member of this scheme—

a

who is entitled to an ill-health pension; and

b

whose active member’s account as at the end of the last day of pensionable service specifies an amount of accrued earned pension attributable in whole or in part to a transfer payment received by this scheme in relation to the member in the 24 months before that last day.

2

If the scheme manager so directs, the member becomes a deferred member of this scheme in respect of that amount of accrued earned pension and accordingly—

a

a deferred member’s account must be established under Part 5 (pension accounts);

b

that amount of accrued earned pension must be specified in the deferred member’s account as the provisional amount of deferred earned pension; and

c

that amount of accrued earned pension is not included in the calculation of the annual rate of full retirement earned pension.

the day on which the member’s employer first asked the scheme medical adviser for the opinion mentioned in regulation 74(2)(b) by virtue of which the member is entitled to payment of the ill-health pension; or

b

if the member was on sick leave on that day and did not return to service from that leave, the day on which that leave began.

CHAPTER 5Payment options

Options under this ChapterI11380

The options under this Chapter are—

a

the option under regulation 82 to buy out the early payment reduction;

F99aa

the option under regulation 82A to partially buy out the early payment reduction;

b

the option under regulation 83 to defer payment of a full retirement added pension;

c

the option under regulation 84 (option to commute part of pension) to exchange part of a retirement pension for a lump sum;

d

the option under regulation 85 to exchange the whole of the member’s accrued pensions for a lump sum.

Exercising an option under this ChapterI19381

1

A member may exercise an option under this Chapter by notice to the scheme manager in any form the scheme manager requires.

2

In this Chapter, “option notice” means a notice by which a member exercises an option under this Chapter.

the lump sum payable to the member under the compensation scheme is reduced by the amount of the special payment; and

b

if the amount of the special payment is more than the whole of the lump sum payable to the member under the compensation scheme, any difference is not chargeable to the member.

7

The cost of buying out the early payment reduction is an amount determined by the scheme manager after consulting the scheme actuary.

If the employer makes a special payment under paragraph (5)(a), the lump sum payable to the member under the compensation scheme is reduced by the amount of the special payment.

7

The scheme manager, after consulting the scheme actuary, must determine the actuarial reduction that would apply if a member exercises the option under this regulation.

8

Where a member exercises the option under this regulation, references in these Regulations to the early payment reduction apply as if the reference were to the actuarial reduction determined under this regulation.

Option to defer payment of added pensionI19583

1

This regulation applies if a member of this scheme—

a

becomes entitled to the immediate payment of a full retirement added pension of any description; and

b

has not reached normal pension age under this scheme.

2

The member may opt under this regulation to defer payment of the full retirement added pension of that description.

3

A member who exercises the option under this regulation becomes a deferred member of this scheme in respect of the full retirement added pension of that description and accordingly—

a

a deferred member’s account must be established under Part 5 (pension accounts); and

b

the amount of full retirement added pension of that description must be specified in the deferred member’s account as the provisional amount of deferred added pension of that description.

4

The member is entitled to payment of the full retirement added pension of that description when the member gives notice to the scheme manager, in any form the scheme manager requires, that the member wishes to take that full retirement added pension.

5

The annual rate of the full retirement added pension is calculated in accordance with regulation 62

Option to commute part of pensionI19684

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

If a member exercises the option, 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 a scheme chargeable payment for the purposes of Part 4 (pension schemes etc.) of the 2004 Act (see section 241 of that Act55)

5

If paragraph (6) applies, the member may opt to exchange only so much of the pension (after subtracting the allocation amount, if any) that exceeds the guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the scheme actuary.

6

This paragraph applies if the member has a guaranteed minimum under section 10 (earner’s guaranteed minimum) of the 1993 Act56 in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer payment from another pension scheme in respect of which the member had such a guaranteed minimum.

Option to commute whole of member’s accrued pensions (serious ill-health)I19785

1

This regulation applies in relation to an active member or deferred member of this scheme whom the scheme medical adviser certifies has a life-expectancy of less than 12 months.

2

The member may opt under this regulation to exchange the whole of the member’s accrued pensions for a lump sum.

3

An option under this regulation (“this option”) 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) \times 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 the 1971 Act 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 the 1971 Act calculated as at that date.

6

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

CHAPTER 6Allocation of part of pension

Allocation ElectionI19886

1

This regulation applies in relation to a full retirement earned pension or a partial retirement earned 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

c

financially interdependent with the member.

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.

5

If paragraph (6) applies, the member may elect to allocate only so much of the pension (after subtracting the commutation amount, if any) that exceeds the guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the scheme actuary.

6

This paragraph applies if the member has a guaranteed minimum under section 10 (earner’s guaranteed minimum) of the 1993 Act in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer payment from another pension scheme in respect of which the member had such a guaranteed minimum.

Restriction on total amount of pension that may be allocatedI8687

1

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

a

the total amount of retirement pension allocated under this F10Chapter (“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 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 of the whole of P’s accrued pensions;

c

P’s spouse or civil partner status will not change before P dies;

d

all of P’s beneficiaries will survive P; and

e

any beneficiary who would have been P’s dependant for the purposes of paragraph 15(2) or (3) of Schedule 28 (registered pension schemes: authorised pensions – supplementary) to the 2004 Act57 will be such a dependant when P dies.

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 election (or the elections taken together) complying.

the day before the pension becomes payable.

3

A claim for early payment—

a

must state whether P has opted to buy out the early payment reduction under regulation 94; and

b

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 satisfied that on that date the requirements of regulation 7(5) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 200059 are met.

Annual rate of pension credit member’s pensionI20293

1

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

a

4

A pension credit member may not exchange pension for lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension schemes etc.) of the 2004 Act (see section 241 of that Act).

5

This regulation does not apply if the pension debit member from whose rights the pension is derived received a lump sum under Part 6 (retirement benefits) before the date on which the pension sharing order takes effect.

1

Where a pension adjustment order is made in respect of benefits under this scheme, this Part applies with any modifications the scheme manager considers necessary to give effect to that order.

2

In this regulation, a “pension adjustment order” means an order made under section 12 of the Irish Family Law Act 199561.

PART 8Death benefits

CHAPTER 1Pensions for surviving adults

Surviving adultsI115100

In these Regulations—

“surviving adult”, in relation to a deceased member of this scheme, means the member’s surviving spouse, surviving civil partner or surviving F102... partner;
“surviving civil partner”, in relation to a deceased member of this scheme, means a person who was in a civil partnership with the member at the date of the member’s death; and
“surviving spouse”, in relation to a deceased member of this scheme, means a person who was married to the member at the date of the member’s death.

would have become entitled to such a pension had the member not died.

Entitlement to surviving adult’s pensionI89107

b

for a pension that would otherwise be payable to a surviving civil partner, the civil partnership was formed less than 6 months before the member’s death.

5

Paragraph (4) is subject to regulation 120 (guaranteed minimum pensions for surviving spouses and civil partners).

Annual rate of surviving adult’s pensions payable on death of pensioner memberI119108

1

if the member is a transition member with continuity of service, the accrued earned pension is the lesser of—

i

the total amount of accrued earned pension under this scheme which is not attributable to a transfer payment and accrued earned pension under the PCSPS(NI) which is not attributable to a transfer payment; and

ii

the enhancement fraction of the amount mentioned in sub-paragraph (a)(i).

8

In accordance with section 7(4) of the 1971 Act, for the purposes of this regulation there is to be disregarded any increase in the annual rate of a pension since the beginning date for that pension.

Annual rate of surviving adult’s pensions payable on death of deferred memberI210109

1

This regulation applies on the death of a deferred member of this scheme.

2

The annual rate of a dependant’s earned pension is an amount equal to 37.5% of the sum of the provisional amount of deferred earned pension specified in the deferred member’s account.

3

The annual rate of a dependant’s added pension is an amount equal to 37.5% of the provisional amount of deferred added (all beneficiaries) pension specified in the deferred member’s account.

Annual rate of surviving adult’s pensions payable on death of active member (death in service)I90110

1

This regulation applies on the death of an active member of this scheme in relation to a continuous period of pensionable service of at least 12 months.

2

If the member F108was a transition member with continuity of service, the continuous period of pensionable service mentioned in paragraph (1) includes the member’s period of pensionable service under the PCSPS(NI) before the F16transition date for that memberF15(but not service that has been transferred into the PCSPS(NI)) .

3

The annual rate of a dependant’s earned pension is an amount equal to 37.5% of the amount of full retirement earned pension that would have been specified in the member’s full retirement account under regulation 52(2) had P become entitled to the immediate payment of a full retirement pension on the date of P’s death.

4

The annual rate of a dependant’s added pension is an amount equal to 37.5% of the amount of full retirement added (all beneficiaries) pension that would have been specified in the member’s full retirement account under regulation 52(2) had P become entitled to the immediate payment of a full retirement pension on the date of P’s death.

5

When calculating the amount of a member’s full retirement earned pension (except in relation to a member who at the date of the member’s death was entitled under regulation 67(a) to the immediate payment of a partial retirement pension)—

a

unless sub-paragraph (b) applies, the accrued earned pension under this scheme includes an additional amount equal to the lesser of—

i

the amount of accrued earned pension not attributable to a transfer payment; and

ii

the enhancement fraction of the amount mentioned in paragraph (i);

b

if the member F109was a transition member with continuity of service, the accrued earned pension under this scheme includes an additional amount equal to the lesser of—

i

the total amount of accrued earned pension under this scheme which is not attributable to a transfer payment and accrued earned pension under PCSPS(NI) which is not attributable to a transfer payment; and

ii

the enhancement fraction of the amount mentioned in sub-paragraph (a)(i); and

c

the early payment reduction (if any), the commutation amount (if any) and the total allocation amount (if any) are not subtracted.

6

In this regulation—

“the enhancement fraction” means $\frac{X}{Y}$ where—
- X is the lower of—
  1. a
    the member’s assumed period of pensionable service (expressed in years); and
  2. b
    10;
- Y is the lower of—
  1. a
    the number of years for which the member has been an active member of this scheme; and
  2. b
    number of scheme years in relation to which an amount of earned pension was specified in the active member’s account; and
- “the member’s assumed period of pensionable service” means the period (expressed in years)—
  1. a
    beginning with the day after the date of the member’s death; and
  2. b
    ending with—
    1. i
      for a member employed for a fixed term, the day F110on which that term would have ended; and
    2. ii
      for a member otherwise employed, the day before the day on which the member would have reached prospective normal pension age if the member had lived until that age.

Reduction in pensions in cases of wide age disparityI211111

1

This regulation applies if, on the death of a member of this scheme, a surviving adult’s pension is payable to a person (“the dependant”) who is more than 12 years younger than the member.

2

The annual rate of the surviving adult’s pension is reduced by the lower of—

a

50% of the amount of the annual rate of the pension calculated under regulation 108, 109 or 110, as applicable; and

b

2.5 x (N –12)% of the amount of the annual rate of the pension so calculated,

where N is the number of whole years by which the dependant is younger than the member.

CHAPTER 2Pensions for eligible children

Meaning of “eligible child’s pension”I212112

In these Regulations, “eligible child’s pension” means any of the following pensions payable under this Part—

a

a child’s earned pension;

b

child’s lower tier earned pension;

c

a child’s upper tier top up earned pension;

d

a child’s added pension.

the date on which the person becomes engaged full-time in gainful employment;

e

the person’s 19th birthday.

6

For the purpose of Condition B, a person who is under the age of 22 at the date of the member’s death is taken to be in full-time education or vocational training if the person has temporarily stopped full-time education or vocational training for a period of up to 15 months (“gap period”).

7

An eligible child’s pension is not payable to a person during a gap period.

Eligible child’s pensionI214114

1

This regulation applies if a member of this scheme dies leaving an eligible child.

2

An eligible child’s pension is only payable in respect of such period or periods during which a child or young person is an eligible child.

3

An eligible child’s pension is not payable in respect of any period before a child’s birth.

4

An eligible child’s pension is payable in respect of an eligible child as follows—

a

a child’s earned pension is payable if the member was entitled to the immediate payment of a full retirement pension as at the date of the member’s death or the member would have become entitled to such a pension had the member not died;

b

a child’s lower tier earned pension is payable if a lower tier earned pension was payable to the member as at the date of the member’s death;

c

a child’s upper tier top up earned pension is payable if an upper tier top up earned pension was payable to the member as at the date of the member’s death;

d

a child’s added pension is payable if the member was entitled to the immediate payment of an added (all beneficiaries) pension as at the date of the member’s death or would have become entitled to such a pension had the member not died.

if an eligible child’s pension is payable in respect of 2 or more eligible children, the annual rate of eligible child’s pension payable to each eligible child is equal to the appropriate fraction of the annual rate of the corresponding surviving adult’s pension multiplied by 4 and divided by 3.

5

In this regulation, “the appropriate fraction” means

\frac{2}{Y}

where—

Y is the number of eligible children in respect of whom an eligible child’s pension is payable immediately after the date of the member’s death.

CHAPTER 3Payment of pensions for surviving adults and eligible children

Payment of pensions under this PartI216116

1

A surviving adult’s pension or eligible child’s pension is payable from the day after the date of the member’s death.

2

Unless the scheme manager directs otherwise, an eligible child’s pension payable in respect of an eligible child aged under 18 must be paid—

a

if the child is in the care of the member’s surviving adult, to the surviving adult; and

b

in any other case, to the child’s guardian.

Suspension and recovery of pensions paid under this PartI217117

1

This regulation applies if—

a

on a member’s death a pension has been awarded and paid under this Part; and

b

it later appears to the scheme manager that the member or the person to whom the pension has been paid made a false declaration or deliberately suppressed a material fact in connection with the award.

2

The scheme manager may—

a

cease paying the pension; and

b

recover any payment made under the award.

3

Paragraph (2) does not affect any right the scheme manager has to recover a payment or an overpayment.

Provisional awards of eligible child’s pensions: later adjustmentsI218118

1

This regulation applies where—

a

an active member, deferred member or pensioner member of this scheme has died:

b

a pension is paid in respect of one or more persons under this Part on the basis that they were eligible children as at the date of the member’s death and that there were then no other eligible children; and

c

it later appears that—

i

A member of this scheme may nominate a person or persons to receive a lump sum death benefit.

2

The member may nominate—

a

one or more individuals;

b

For the purposes of this Chapter, for a continuous period of pensionable service that is less than 12 months, a member’s annualised final pay is—

F P \times \frac{365}{N}

where—

FP is the amount of the member’s permanent pensionable earnings F114payable in respect of that period of service; and
N is the number of days in that period.

2

But if the continuous period of pensionable service includes 29th February, paragraph (1) has effect with the substitution for “365” of “366”.

F1153

In this regulation—

a

b

in respect of a period of assumed pay, “pensionable earnings” means the member’s assumed pay.

Amount payable on death of active member (death in service)I93130

1

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

2

If the member is a transition member with continuity of service, the period of service includes the member’s period of pensionable service under the PCSPS(NI) before the F17transition date for that member .

3

For the purpose of this regulation, a person dies in service if the person dies while an active member of this scheme in relation to a period of service.

4

The amount of the lump sum death benefit payable in respect of a person who dies in service (P) is the amount in paragraph (5) or (6), whichever is the greater.

5

The amount in this paragraph is an amount equal to

X - Y

where—

a

X is—

i

if P’s period of service was at least 12 months, twice the amount that would have been P’s final pay if P had ceased to be in pensionable service at the time of death; or

ii

if P’s period of service was less than 12 months, twice P’s annualised final pay; and

b

Y is the total of—

i

any lump sum paid under this scheme to P before P’s death; and

ii

any lump sum death benefit payable under this scheme or under the partnership pension account death benefits scheme in respect of P after P’s death.

6

The amount in this paragraph is an amount equal to

X - Y

where—

X is the total annual amount of P’s full retirement pensions in relation to that period of service, multiplied by 5;
Y is the total amount of any payments of retirement pension made to P under this scheme; and

“total annual amount” in relation to P’s full retirement pensions means the total of—
1. a
  the annual rate of each description of full retirement pension calculated as if the beginning date for that pension were the date of P’s death, but without subtracting any of the early payment reduction; and
2. b
  the amount of any increase in the annual rate of that pension under the 1971 Act payable as at the date of P’s death.

7

For the purpose of this regulation, any amounts paid or payable to or in respect of P in the capacity of a pension credit member are disregarded.

For the purpose of this regulation any amounts paid or payable to or in respect of the member in the capacity of a pension credit member are disregarded.

Amount payable on death of pension credit memberI226132

1

Paragraph (2) applies if a pension credit member of this scheme dies before any benefits derived from a pension credit have become payable to the member.

2

The amount of the lump sum death benefit is equal to 25% of the cash equivalent that would have been payable under Chapter 2 of Part 4A (requirements relating to pension credit benefit: transfer values) of the 1993 Act69 in respect of the member’s right to benefits under this scheme attributable (directly or indirectly) to a pension credit if—

a

the member had been entitled to require the payment of that amount; and

b

the amount had been payable as at the date of the member’s death.

3

Paragraph (4) applies if a pension credit member dies after the pension credit member’s pension becomes payable.

4

The amount of the lump sum death benefit is equal to the amount of pension credit member’s pension that would have been payable to the member during so much of the period of 5 years beginning with the date on which the pension became payable as falls after the date of the member’s death.

5

In paragraph (4), “amount of pension credit member’s pension” means the total of—

a

the amount of the annual rate of that pension as at the date the pension was deemed to begin for the purposes of section 8(2A) (meaning of “pension” and other supplementary provisions) of the 1971 Act70; and

b

the amount of any increase in the annual rate of that pension under that Act payable as at the date of the member’s death.

Amount payable under court order to former spouse or civil partnerI227133

1

This regulation applies if on the death of a member of this scheme the scheme manager is required under a court order to pay any part of a lump sum death benefit to the member’s former spouse or civil partner.

2

The amount of the lump sum death benefit is first determined as if no such order had been made, and then this Part applies as if the amount of the lump sum death benefit were reduced by the amount payable under the court order.

PART 9Contributions

Rate of member contributionsI96134

1

An active member of this scheme must pay contributions to this scheme (“member contributions”) on the member’s pensionable earnings for each pay period at a rate determined under this regulation (“member contributions rate”).

2

The member contributions rate which applies to a member’s pensionable earnings is the rate which applies when the member’s pensionable earnings are paid.

3

For the purposes of paragraph (2),

F118a

assumed pay for any pay period is treated as having been paid when pensionable earnings for that period would have been paid had the circumstances in regulation 27(3) which apply to the member not applied; and

F119b

payment of the money value of any benefit in kind which forms part of a member’s pensionable earnings is treated as having been made at a time or apportioned across a period of time as determined by the scheme manager.

F354

In this regulation—

a

for the purpose of calculating the rate of member contributions, pensionable earnings are determined in relation to each pay period and are the sum of;

i

the member’s basic amount of pensionable salary; and

ii

the member’s permanent pensionable allowances; and

iii

the member’s fluctuating pensionable earnings;

b

the member contributions rate during scheme year 1st April 2019 to 31st March 2020 is the relevant percentage rate set out in the table in this regulation, which applies to a member’s annualised rate of pensionable earnings calculated in relation to each payment of a member’s pensionable earnings;

c

for the purpose of this regulation, the total pensionable earnings in relation to a payment excludes any arrears or retrospective element when determining the member’s annualised rate of pensionable earnings;

d

the Department must, having considered the advice of the scheme actuary, determine the pensionable earnings bands and contribution percentage rates in the table set out in this regulation in respect of each subsequent scheme year.

5

Where the member’s pensionable earnings for a scheme year are payable to the member in 12 instalments, the member’s annualised rate of pensionable earnings is calculated as follows, rounded down to the nearest whole pound—

12 P

where P is the amount of a payment of the member’s pensionable earnings.

6

Where the member’s pensionable earnings for a scheme year are payable otherwise than in 12 instalments, the member’s annualised rate of pensionable earnings is calculated as follows, rounded down to the nearest whole pound—

P \times \frac{365}{N}

where—

P is the amount of a payment of the member’s pensionable earnings; and
N 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 29^th February, paragraph (6) has effect with the substitution for “365” of “366”.

F37Scheme Year 1stApril 2019 to 31st March 2020

Annualised rate of pensionable earnings		Member contributions rate
	Transition members from Section II of the PCSPS(NI)	Other transition members and non-transition members
Up to but not including £15,001	4.6%	4.6%
£15,001 to but not including £23,501	4.6%	4.6%
£23,501 to but not including £54,501	5.45%	5.45%
£54,501 to but not including £150,001	7.35%	7.35%
£150,001 and above	8.05%	8.05%

F36...


	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .

F36...


	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .

F36...


	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .

F36...


	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .
F36. . .	F36. . .	F36. . .

Amount of pensionable earningsI121135

1

For the purpose of regulation 134, 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 27(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 27(3)(b) or (c), the amount of the member’s pensionable earnings is the amount of contractual 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 F120shared parental leave.

Payment of F121member contributionsI122136

1

Member contributions are to be deducted by the member’s employer from the member’s pensionable earnings in each pay period.

2

A member’s employer—

a

may make contributions on the member’s behalf in circumstances determined by the scheme manager; and

b

unless paragraph (3)(b) applies, must do so for any period of assumed pay under regulation 27(3)(e) (unpaid leave).

added pension; and

b

an effective pension age.

Refund of all member contributions and payments for extra pension made by the memberI123139

1

This regulation applies in relation to a continuous period of pensionable service under the scheme.

2

All member contributions and payments resulting from the exercise of an option under Schedule 1 (“Payments for extra pension”) made by the member in relation to the period of pensionable service are only refundable if—

a

regulation 24 (opting out before the end of one month) applies; or

b

the member’s pensionable service ceases and—

i

the member has less than 2 years’ qualifying service;

ii

if a transfer 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.

3

If paragraph (2)(b) applies, the member is entitled to be paid an amount equal to the sum of all member contributions and payments for extra pension made by the member, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act71 as a result of a refund of those contributions and payments.

4

If all F123member contributions and payments for extra pension made by the member are refunded under this regulation, the member’s rights under this scheme in relation to the period F123of pensionable service are extinguished.

PART 10Transfers

CHAPTER 1Preliminary

Application of PartI124140

This Part—

a

supplements the rights conferred by or under F124Chapter 1 of Part 4ZA of the 1993 Act F124(transfer rights: general) and is without prejudice to that Chapter; and

b

supplements the rights conferred by or under F125Chapter 2 of that Part (early leavers: cash transfer sums and contribution refunds)72 and is without prejudice to that Chapter.

Interpretation in relation to PartI229141

In this Part—

“cash equivalent” means an amount calculated in accordance with regulations made under section 93 (calculation of cash equivalents) of the 1993 Act73;
“club transfer value” means, in relation to an amount of accrued earned pension under this scheme or under another club scheme, an amount calculated by the scheme manager—
1. a
  in accordance with the club transfer arrangements; and
2. b
  by reference to the guidance and tables provided by the Government Actuary for this purpose that are in use on the date used for the calculation;
“guarantee date” has the meaning given in regulation 144;
“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”, in relation to an active or deferred member’s accrued rights to benefits under this scheme, means a statement by the scheme manager of the cash equivalent or club transfer value of those benefits as at the guarantee date;
“transfer value” means, for accrued rights to benefits other than accrued earned pension which is the subject of a club transfer—
1. a
  for accrued rights to benefits under this scheme, an amount equal to—
  1. i
    the guaranteed cash equivalent of those benefits; or
  2. ii
    the guaranteed cash equivalent together with any increase payable under regulation 146; and
2. b
  for accrued rights to benefits under another pension scheme, an amount—
  1. i
    determined by the scheme actuary of that scheme; and
  2. ii
    specified in a statement of accrued rights provided by the scheme manager of that scheme.

CHAPTER 2Transfers out

Transfer payments made to other schemes or pension arrangementsI125142

1

A transfer 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 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 the 2004 Act (see section 169(2)74 (recognised transfers) of the Act).

3

A transfer 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 payment in a way specified in section 91(2) (ways of taking right to cash equivalent) of the 1993 Act75.

5

A member may only require the scheme manager to make a club transfer value payment during the period of 12 months beginning with the day on which the member becomes eligible to be an active member of the scheme to which the payment is to be made.

6

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

7

If section 92(2) (further provisions concerning exercise of option under section 91) of the 1993 Act76 applies, benefits attributable to the following may be excluded from the transfer 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 the 1993 Act, on or after F1266th April 1997 .

Application for a statement of entitlementI230143

1

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

2

Before requesting the transfer 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 application77.

Statement of entitlementI231144

1

The scheme manager must specify in the statement of entitlement the date by reference to which the cash equivalent or club transfer value 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, for reasons beyond the control of the scheme manager, the information needed to calculate the amount of the cash equivalent or club transfer value cannot be obtained before the end of the 3 month period.

Request for transfer payment to be madeI232145

1

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

2

The request for the transfer payment must—

a

be made by notice to the scheme manager;

b

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

c

meet any other conditions the scheme manager requires.

3

The member may, by notice to the scheme manager withdraw the request at any time before the transfer 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 payment has already been entered into with a third party.

Calculating the amount of a transfer value or club transfer valueI233146

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 section 93 (calculation of cash equivalents) of the 1993 Act.

2

If a club transfer value is paid later than 6 months after the guarantee date, the amount of the club transfer value as specified in the statement of entitlement must be increased if necessary so that it is equal to the amount it would have been if the guarantee date had been the date on which the payment is made.

3

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

4

In this regulation—

“minimum transfer value” means the total of—
1. a
  the sum of all member contributions and payments for extra pension made by the member; and
2. b
  the sum of all transfer payments received by this scheme in relation to the member;
“member contributions” has the meaning given in regulation 134; and
“payments for extra pension” has the meaning given in regulation 139.

Effect of F127a transfer outI126147

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

CHAPTER 3Transfers in

Application of ChapterI234148

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

Interpretation of ChapterI235149

In this Chapter—

“accrued rights” does not include rights accrued under the Northern Ireland Civil Service Additional Voluntary Contribution 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—
1. a
  another occupational pension scheme that is a registered pension scheme but is not a connected scheme;
2. b
  a personal pension scheme; or
3. c
  the Northern Ireland Civil Service Additional Voluntary Contribution Scheme;
“Northern Ireland Civil Service Additional Voluntary Contribution Scheme” means the scheme which was made on 23rd March 1989 under Article 3 of the 1972 Order, as amended from time to time;
“club transfer value statement” means a statement under regulation 153 of the amount of club transfer earned pension;
“transfer date” means the earlier of—
1. a
  if the scheme manager has provided a transfer statement or a club transfer value statement, the last day of the period of 2 months beginning with the date of the statement; or
2. b
  the day on which the transfer payment is received by the scheme manager;
“transfer payment request” means a request to the scheme manager under this Chapter that a transfer payment be accepted from another pension scheme;
“transfer statement” means a statement under regulation 151(2).

The amount of club transfer earned pension specified in the statement must be calculated by the scheme manager in accordance with actuarial guidance and tables by reference to—

on that transfer, the transferring employees—

i

cease to be eligible to be active members of this scheme, and

ii

become active members of another occupational pension scheme (“the new employer’s scheme”),

c

the scheme manager has agreed special terms for making transfer payments to the new employer’s scheme in respect of the rights of the transferring employees, after consultation with the scheme actuary, and

d

the transferring employees have consented in writing to their rights being transferred in accordance with those terms.

2

This regulation also applies if—

a

the rights of one or more members (“the transferred members”) are transferred to another occupational pension scheme (“the new scheme”) from this scheme without their consent in accordance with section 69(2)(a)(i) and (4)(b) (form of short service benefit and its alternatives) of the 1993 Act, and

b

the scheme manager has agreed special terms for the making of transfer payments to the new scheme in respect of the rights of the transferred members, after consultation with the scheme actuary.

3

The transfer payment to be made in respect of the rights of the transferring employees or the transferred members is an amount that the scheme manager determines to be appropriate under the special terms, after consulting the scheme actuary.

4

This Part has effect with any modifications the scheme manager considers necessary to give effect to those terms.

5

If the Department gives an undertaking concerning the pension rights of the transferring employees or the transferred members, this Part has effect with any modifications the scheme manager considers necessary to reflect the terms of the undertaking.

6

If the transfer is directly or indirectly attributable to an enactment, this Part has effect with any modifications the scheme manager considers necessary in consequence of the transfer.

Bulk transfers inI240156

Employer cost capI242159

1

The employer cost cap for this scheme is 18.3% of pensionable earnings of members of this scheme.

2

In the circumstances specified in paragraph (4), the Department must consult such persons (or those appearing to the Department to represent such persons) as appear to the Department likely to be affected by any steps that will be taken, with a view to reaching agreement 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 43(4) as the amount of earned pension for a scheme year must be adjusted for pensionable earnings after the date of the adjustment, so that the target cost for this scheme is achieved.

4

The circumstances are that 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) of the Act.

5

In this regulation—

a

“cost of this scheme” means the cost of this scheme calculated following a valuation in accordance with regulation 158; and

b

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

PART 12Supplementary

CHAPTER 1Dual capacity members

Meaning of “dual capacity member”I243160

1

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

a

P is a member of this scheme in 2 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;

c

P is a member of this scheme in relation to 2 or more continuous periods of pensionable service; or

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 disregarded78; 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 memberI129161

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 F130Regulations ; 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 64 (exercise of partial retirement option) 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 130 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 131 of a lump sum payable on the death of a pensioner member or deferred member of this scheme being made by reference to amounts that are relevant to the member in both of those capacities; or

c

the calculation under regulation 131 of a lump sum payable on the death of—

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 2Payment of benefits: general

Late payment of retirement index adjustmentI244162

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.

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—
1. a
  regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 199779;
2. b
  paragraph 7 of Schedule 29 (authorised lump sums – supplementary) to the 2004 Act (which defines trivial commutation lump sums for the purposes of Part 4 of that Act)80 and, in relation to a pension payable under Part 8 (death benefits), F131... paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of Part 4 of that Act)81; and
3. c
  regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 200082;
“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 pensionsI245164

1

If a member has a guaranteed minimum under section 10 (earner’s guaranteed minimum) of the 1993 Act83 in relation to benefits under this scheme—

a

nothing in these Regulations permits or requires anything that would cause requirements made by or under that Act in relation to such a member and such a member’s 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

c

the following provisions are without prejudice to the generality of this paragraph.

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

If—

a

on reaching state pension age the member is still in employment (whether or not it is scheme employment); and

b

but if any other provision of this scheme is inconsistent with this regulation, this regulation prevails.

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 86(5)).

CHAPTER 3Forfeiture and set-off

Forfeiture: offences committed by membersI131165

1

If a member is convicted of a relevant offence, the scheme manager may to the extent the scheme manager considers 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 scheme manager may only withhold that part of a person’s pension that exceeds any guaranteed minimum to which the person is entitled under—

a

section 10 of the 1993 Act (earner’s guaranteed minimum); or

b

section 1387 of that Act F132(minimum pensions for widows, widowers and surviving civil partners) .

4

In this regulation—

“forfeiture certificate” means a certificate stating that the F133Minister of the Crown issuing the certificate considers that the offence—

a

has been gravely injurious to the interests of the State or

b

is liable to lead to serious loss of confidence in the public service; and

“relevant offence” means—

F134a

one or more offences under the Official Secrets Acts 1911 to 198988F187, 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—

i

a term of imprisonment of at least 10 years; or

ii

2 or more consecutive terms of imprisonment which add up to at least 10 years;

F135b

F135an offence committed in connection with service as a public servant and in respect of which the Department has issued a forfeiture certificate.

Forfeiture: offences committed by a member’s beneficiaryI246166

1

If the beneficiary of a deceased member of this scheme (D) is convicted of a relevant criminal offence, the scheme manager may withhold benefits payable to the beneficiary in respect of D.

2

The scheme manager may withhold benefits to the extent the scheme manager considers appropriate but may only withhold that part of a pension that exceeds any guaranteed minimum to which the beneficiary is entitled under section 13 of the 1993 Act.

3

If the scheme manager withholds all of the benefits payable to a beneficiary, Part 8 (death benefits) 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

c

any other offence of which the unlawful killing of D is an element.

Forfeiture: relevant monetary obligations and relevant monetary lossesI132167

1

If a member (P) owes a relevant monetary obligation or has caused a relevant monetary loss, the scheme manager may withhold benefits payable to P under this scheme.

2

The scheme manager may withhold benefits to the extent the scheme manager considers appropriate but may only withhold that part of P’s pension that exceeds any guaranteed minimum to which P is entitled under section 10 of the 1993 Act.

3

The scheme manager 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 scheme manager 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; or

ii

in consequence of an award of an arbitrator.

5

In this regulation—

“relevant monetary obligation” means a monetary obligation which—

a

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

b

was incurred after P became an active member of this scheme;

c

arose out of P’s criminal, negligent or fraudulent act or omission; and

d

arose out of or was connected with service in the scheme employment in respect of which P is a member of this scheme; and

“relevant monetary loss” means a monetary loss which—

F136a

was caused to this scheme; and

F137b

arose as a result of P’s criminal, negligent or fraudulent act or omission.

1

If the scheme manager proposes to withhold benefits or apply a set-off against a person’s entitlement to benefits, the scheme manager must notify the person of the proposal in writing.

2

If the scheme manager withholds benefits under regulation 167 or applies a set-off against an entitlement to benefits under regulation 168, the scheme manager must give the member a certificate showing—

a

the amount withheld or set off; and

b

the effect of the withholding or set-off on the member’s benefits under this scheme.

3

If the scheme manager proposes to withhold a person’s benefits under regulation 165 to 167, the person may appeal against the scheme manager’s proposal to the Northern Ireland Civil Service Appeal Board.

4

On an appeal made under paragraph (3) the Northern Ireland Civil Service Appeal Board may—

a

confirm or reject the scheme manager’s proposal; or

b

amend it so as to reduce the extent to which the benefits are withheld.

5

The scheme manager must comply with the Northern Ireland Civil Service Appeal Board’s decision.

CHAPTER 4Payment and deduction of tax

Scheme manager to be scheme administrator for purposes of Part 4 of Finance Act 2004I249170

The scheme manager is appointed to be responsible for all functions that are functions conferred or imposed on the scheme administrator by or under Part 4 of the 2004 Act (pension schemes etc).

Payment on behalf of members of lifetime allowance chargeI250171

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 of the 2004 Act (“the amount”) if—

a

an event that is a benefit crystallisation event (“the event”) listed in the table in section 216(1) of the 2004 Act91 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.

in the case of any reduction to pension benefits, must be consistent with normal actuarial practice.

Information about payment of annual allowance chargeI133173

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.

F1782

The scheme manager must provide the member with any information the scheme manager considers appropriate to assist the member to arrange payment of the annual allowance charge for a tax year—

a

no later than 6th October after the end of that tax year; or

b

where regulation 14A(6) (provision of pension savings statement where scheme administrator has not been provided with information about a member) of the Registered Pension Schemes (Provision of Information) Regulations 2006 applies in relation to a member, the date determined in accordance with that regulation.

3

In this regulation, “pension scheme input amount” has the meaning given in section 237B(2) (liability of scheme administrator) of the 2004 Act92.

Reduction of benefits where annual allowance charge paid by scheme managerI134174

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) of the 2004 Act; 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 amount or value of the reduction 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 section 10 (earner’s guaranteed minimum) or 13 F138(minimum pensions for widows, widowers and surviving civil partners) of the 1993 Act.

CHAPTER 5General

General prohibition on unauthorised paymentsI252175

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 of the 2004 Act (pension schemes etc.) (see section 160(5) of that Act).

Calculation of periods of membership and serviceI253176

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.

This is subject to paragraph (3).

2

If, when all periods of membership or service that require to be aggregated have been aggregated, there is any excess part day over the number of whole days, that excess is rounded up to a full day.

This is subject to paragraph (3).

3

If membership or service is referred to in these Regulations as membership or service in years—

a

the days referred to in paragraph (1); and

b

the full days referred to in paragraph (2),

are converted into years by dividing the number of days in excess of the period of whole years by 365, and using the result to 4 decimal places.

4

If a period of membership or service is less than one year, this regulation applies as if the words “whole years, and” were omitted from paragraph (1) and the words “in excess of the period of whole years” were omitted from paragraph (3).

Determination of questionsI254177

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.

Evidence of entitlementI255178

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 membersI256179

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 made under that section (Department directions).

1

Where an employer of a Fair Deal eligible person increases the pensionable earnings of a member of this scheme employed by the employer in a way which the scheme manager has determined is one where the resulting costs to this scheme or any connected scheme are costs which should be paid by the employer, the employer must pay to this scheme on demand the amount of the increase in this or the connected scheme’s costs or liabilities resulting from the increase.

2

Where a Fair Deal eligible person exercises a choice available to the person under this scheme which leads to an increase in the contributions that the person’s employer is required to pay under this scheme, the employer must pay to this scheme the amount of the increase in contributions.

3

Where an employer of a Fair Deal eligible person has breached any of the provisions of this scheme or any provision of the Admission Agreement the employer must pay to this scheme on demand the sum, as determined by the scheme manager, which is required to compensate this scheme for—

a

any increase in this scheme’s costs or liabilities resulting from the breach; and

b

any resulting additional administration expenses incurred by or on behalf of this scheme.

4

Where an employer of a Fair Deal eligible person has entered into a contractual agreement (whether in the Admission Agreement or otherwise) with the scheme manager or the Department to lodge a bond with the scheme, the scheme manager or Department may call on the bond in the circumstances provided for in the contractual agreement.

5

Where a person has entered into an agreement (whether in the Admission Agreement or otherwise) to indemnify this scheme in respect of contributions and other payments due to this scheme from an employer of a Fair Deal eligible person, that person must pay to this scheme on demand by the scheme manager or the Department the sums due under the indemnity, in accordance with the provisions of the agreement.

Transitional provisionsI4182

Schedule 2 has effect.

F1F139Ill-health benefits for persons who have a partnership pension account183

Schedule 3 (which makes provision for F140ill-health benefits for persons who have a partnership pension account) has effect.

Death benefits in respect of persons who have a partnership pension account184

Schedule 4 (which makes provision for death benefits in respect of persons who have a partnership pension account) has effect.

Sealed with the Official Seal of the Department of Finance and Personnel on 26th November 2014.

(L.S.)Mike BrennanA senior officer of theDepartment of Finance and Personnel

SCHEDULE 1Payments for extra pension

Regulation 138

PART 1General

InterpretationI51

In this Schedule—

“added pension option” means the option to make added pension payments;
“amount of accrued added pension” means the total of—
1. a
  the amount of accrued added (self only) pension (if any); and
2. b
  the amount of accrued added (all beneficiaries) pension (if any);
“amount of extra pension” has the meaning given in paragraph 2;
“appropriate pay period” means the pay period that the scheme manager considers appropriate;
“effective pension age option” means the option to make effective pension age payments;
“effective pension age payments” means periodical payments for an effective pension age made to this scheme;
F19...
“overall limit of extra pension” has the meaning given in paragraph 3;
“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;
“the relevant day”, in relation to a lump sum payment for added pension, means—
1. a
  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; or
2. b
  otherwise, 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 18;
“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 Part 3 or 4 of this Schedule.

Meaning of “amount of extra pension”I62

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 as at that time.

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 under this scheme, 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.

4

For the purpose of this paragraph, “amount of accrued added pension” does not include any amount attributable to a lump sum payable to a member under a compensation scheme.

Actuarial adviceI106

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

PART 2Payments for added pension

i

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

ii

is a transition member within the meaning of paragraph 1 of Schedule 2; 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 partyI128

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 (“the option notice”).

3

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

4

If an active member opts for the whole or part of any lump sum payable to the member under a compensation scheme to be used to make a lump sum payment for added pension, the member’s employer may opt to make a lump sum payment under this regulation.

CHAPTER 2Periodical payments for added pension

Application of ChapterI139

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

Member’s option to make periodical payments for added pensionI1410

1

The 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 memberI1511

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.

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)I1713

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 published 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)I1814

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 published 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 3Lump sum payments for added pension made by member

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)I2319

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

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

Application of ChapterI2521

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 pensionI2622

1

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.

2

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

PART 3Effective pension age payments

CHAPTER 1Exercising the effective pension age option

Effective pension age option exercisable by F142the memberI2925

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 optionI3026

1

A member may exercise an effective pension age option by notice to the scheme manager in any form the scheme manager may require (“the option notice”).

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 ageI3127

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 schemeI3228

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 139(2), 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, 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 139; or

b

a transfer 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 optionI3329

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 optionI3430

a

begins with—

i

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 payI3733

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 (Northern Ireland) Act 199296 or is on paid ordinary maternity leave, paid adoption leave F143, paid shared parental 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 SCHEDULE 2Transitional provisions

Regulation 182

PART 1General

Interpretation-generalI381

In this Schedule—

“Article 3(3A) eligible person” means a person who is eligible to be an active member of the PCSPS(NI) by virtue of being a person who is in service in an office or employment specified in a list produced for the purposes of Article 3(3A) (superannuation schemes as respects civil servants, etc) of the 1972 Order97;
“closing date”, in relation to a transition member, means—
1. za
  F180if the member is a full protection member of the PCSPS(NI), 31st March 2022;
2. a
  if the member is a tapered protection member of the PCSPS(NI), the tapered protection closing date for that member; or
3. b
  if the member is not a protected member of that scheme, the scheme closing date;
“existing public body pension scheme” means a public body pension scheme specified on a list published by the Department for the purpose of this Schedule;
“full protection member”, in relation to the PCSPS(NI), has the meaning given in paragraph 9;
“protected member”, in relation to the PCSPS(NI), means a full protection member or tapered protection member of that scheme;
“protection period”—
1. a
  for a full protection member of the PCSPS(NI), has the meaning given in paragraph 10;
2. b
  for a tapered protection member of the PCSPS(NI), has the meaning given in paragraph 20;
“tapered protection closing date”, in relation to a tapered protection member of the PCSPS(NI), has the meaning given in paragraph 3;
“tapered protection member”, in relation to the PCSPS(NI), has the meaning given in paragraph 19;
“transition date”, in relation to a transition member, means—
1. za
  F181if the member is a full protection member of the PCSPS(NI), 1st April 2022;
2. a
  if the member is a tapered protection member of the PCSPS(NI), the day after the tapered protection closing date for that member;
3. b
  if the member is not a protected member of that scheme, the day after the scheme closing date or, if later, the day the person ceased to be a protected member of the scheme;
“transition member” means a person—
1. a
  who is a member of the PCSPS(NI) by virtue of the person’s pensionable service under that scheme before the transition date; and
2. b
  who is a member of this scheme by virtue of the person’s pensionable service under this scheme.

For the purpose of Parts 2 and 3 of this Schedule, a person (P) is an active member of an existing public body pension scheme on a given date if on that date—

a

P is in pensionable service under that scheme; or

b

P is on a gap in service not exceeding 5 years.

2

For the purpose of sub-paragraph (1)(b), after the closing date for the existing public body pension scheme, P is not on a gap in service while P is in pensionable public service.

3

In sub-paragraph (2), “the closing date for the existing public body pension scheme” means the date determined under section 32(2) of the Act by the public authority responsible for that scheme.

Commencement of active membership of this schemeF144 I447

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

PART 2Exceptions to section 18(1) of the Act: full protection members of the PCSPS(NI)

Interpretation of PartI458

In this Part—

“active member of an existing public body pension scheme” has the meaning given in paragraph 6;
“active member of an existing scheme” has the meaning given in paragraph 5; and
“active member of the PCSPS(NI)” has the meaning given in paragraph 4

In this paragraph—

“exception” means–
1. a
  in relation to an existing scheme, an exception under section 18(5) or 18(6) of the Act provided for in F21scheme regulations in relation to that scheme ;
2. b
  in relation to an existing public body pension scheme, an exception under section 32(4) of the Act provided for by the public authority responsible for that scheme;
“fully protected member” of an existing scheme or an existing public body scheme means a person in respect of whom an exception applies, which exception is one to which section 18(7) of the Act (or that section as applied by section 32(4)) applies for the purposes of that scheme.

8

For the purpose of paragraph (4)(b), after the scheme closing date P is not on a gap in service while P is in pensionable public service.

Exception for full protection members during protection periodI4710

1

The protection period for a person (P) who is a full protection member of the PCSPS(NI) is the period which—

a

begins on the day after the scheme closing date (or if paragraph 15(3) applies, the day after the existing public body pension scheme closed to all members); and

b

ends when P ceases to be a full protection member of the PCSPS(NI) (unless P is a tapered protection member by virtue of paragraph 9(5)).

2

During the protection period—

a

P is eligible to be in pensionable service under the PCSPS(NI);

b

section 18(1) of the Act does not apply in respect of that pensionable service; and

c

benefits are to be provided under the PCSPS(NI) to or in respect of P in relation to that pensionable service.

Full protection member not eligible to join this schemeI4811

While a person (P) is a full protection member of the PCSPS(NI), P is not eligible to be an active member of this scheme.

Members of the PCSPS(NI) on scheme closing dateI4912

1

This paragraph applies if sub-paragraph (2) or sub-paragraph (3) applies.

2

This sub-paragraph applies if—

a

P was an active member of the PCSPS(NI) on the scheme closing date and on 31st March 2012; and

b

P would, unless P dies, reach normal pension age under that scheme on or before 1st April 2022.

3

This sub-paragraph applies if—

a

P was an active member of an existing scheme other than the PCSPS(NI) or an existing public body pension scheme (“P’s transitional scheme”) on 31st March 2012;

b

P was an active member of the PCSPS(NI) on the scheme closing date; and

c

P would, unless P dies, reach normal pension age under the PCSPS(NI) and P’s transitional scheme on or before 1st April 2022.

Pre-fresh start prison officersI5013

1

This paragraph applies if P was in service as a pre-fresh start prison officer under Section II of the PCSPS(NI) on—

a

31st March 2012;

b

the scheme closing date; and

c

1st April 2015.

2

For the purposes of this paragraph, P is in service as a pre-fresh start prison officer if P is in service as a prison officer to whom rule 2.26 of Section II of the PCSPS(NI) applies.

3

In sub-paragraph (2), “in service as a prison officer” has the meaning given in rule 2.25 of Section II of the PCSPS(NI).

P would, unless P dies, reach normal pension age under the PCSPS(NI) and P’s transitional scheme on or before 1st April 2022.

Fair Deal eligible persons transferred out on or before 31st March 2012I5216

F1591

This paragraph applies if—

a

in the case of a person who is an Article 3(3A) eligible person, sub-paragraphs (2), (3), (4) and (5) apply; or

b

in the case of a person who is a civil servant or a person serving in an employment or office listed in Schedule 1 to the 1972 Order, sub-paragraphs (2), (3) and (5) apply.

2

This sub-paragraph applies if—

a

P ceased to be an active member of the PCSPS(NI) on a date (P’s transfer date) on or before 31st March 2012;

F160b

P begins service which is pensionable under the PCSPS(NI) as—

i

an Article 3(3A) eligible person;

ii

a civil servant; or

iii

a person serving in an employment or office listed in Schedule 1 to the 1972 Order,

on a date (P’s re-joining date) after 31st March 2012;and

c

Between P’s transfer date and P’s re-joining date—

i

P was not eligible to be in pensionable service under the PCSPS(NI) F161and was continuously employed to carry out functions or services related to P’s pensionable service under the PCSPS(NI) before P’s transfer date ; or

ii

P was only eligible to be in pensionable service under the PCSPS(NI) as a result of a transfer of the transferred services, and during such period that P would have been eligible to be in pensionable service under the PCSPS(NI) as a result of the transfer P was–

aa

an active member of the PCSPS(NI); and

P was an active member of an existing scheme or an existing public body pension scheme (“P’s transitional scheme”) on 31st March 2012;

b

P ceased to be an active member of the PCSPS(NI) or of this scheme on a date (P’s transfer date) after 31st March 2012;

c

P was an active member of an existing scheme or an existing public body pension scheme throughout the period between 31st March 2012 and P’s transfer date;

F164d

P begins service which is pensionable under the PCSPS(NI) as—

i

an Article 3(3A) eligible person;

ii

a civil servant; or

iii

a person serving in an employment or office listed in Schedule 1 to the 1972 Order,

on a date (P’s re-joining date) after P’s transfer date; and

e

Between P’s transfer date and P’s re-joining date—

i

P was not eligible to be in pensionable service under the PCSPS(NI) F165and was continuously employed to carry out functions or services related to P’s pensionable service under the PCSPS(NI) before P’s transfer date ; or

ii

aa

an active member of the PCSPS(NI); and

bb

continuously employed to carry out the transferred services whilst P was eligible to be an active member of the PCSPS(NI).

F1663

This sub-paragraph applies if P is an active member of the PCSPS(NI) as—

a

an Article 3(3A) eligible person;

b

a civil servant; or

c

a person serving in an employment or office listed in Schedule 1 to the 1972 Order,

continuously after P’s re-joining date.

4

This sub-paragraph applies if P is a Fair Deal eligible person.

5

This sub-paragraph applies if P would, unless P dies, reach normal pension age under the PCSPS(NI) and P’s transitional scheme before 2nd April 2022.

6

In this paragraph, “continuously” means without a gap of any period.

PART 3Exceptions to section 18(1) of the Act: tapered protection members of the PCSPS(NI)

Interpretation of PartI5418

In this Part—

“active member of an existing public body pension scheme” has the meaning given in paragraph 6;
“active member of an existing scheme” has the meaning given in paragraph 5; and “active member of the PCSPS(NI)” has the meaning given in paragraph 4.

For the purpose of paragraph (4)(b), after the scheme closing date P is not on a gap in service while P is in pensionable public service.

Exception for tapered protection members during protection periodI5620

1

The protection period for a tapered protection member of the PCSPS(NI) is the period which—

a

begins on the day after the scheme closing date (or if paragraph 24(3) applies, the day after the day that the existing public body pension scheme closed to any further accrual by members of benefits under the scheme); and

b

ends when P ceases to be a tapered protection member of the PCSPS(NI).

2

During the protection period—

a

P is eligible to be in pensionable service under the PCSPS(NI);

b

section 18(1) of the Act does not apply in respect of that pensionable service; and

c

benefits are to be provided under the PCSPS(NI) to or in respect of P in relation to that pensionable service.

Tapered protection member not eligible to join this schemeI5721

While a person (P) is a tapered protection member of the PCSPS(NI), P is not eligible to be an active member of this scheme.

Members of the PCSPS(NI) on scheme closing dateI5822

1

This paragraph applies if sub-paragraph (2) or sub-paragraph (3) applies.

2

This sub-paragraph applies if—

a

P was an active member of the PCSPS(NI) on the scheme closing date and on 31st March 2012; and

b

P would, unless P dies, reach normal pension age under the PCSPS(NI) between 2nd April 2022 and 1st September 2025 (inclusive).

3

This sub-paragraph applies if—

a

P was an active member of an existing scheme other than the PCSPS(NI), or of an existing public body pension scheme, (“P’s transitional scheme”) on 31st March 2012;

b

P was an active member of the PCSPS(NI) on the scheme closing date; and

c

P would, unless P dies, reach normal pension age under—

i

the PCSPS(NI) during the period beginning with 2nd April 2022 and ending with 1st September 2025; and

ii

P’s transitional scheme on or before 1st September 2025.

the PCSPS(NI) during the period beginning with 2nd April 2022 and ending with 1st September 2025; and

ii

P’s transitional scheme on or before 1st September 2025.

Fair Deal eligible persons transferred out on or before 31st March 2012I6025

F1671

This paragraph applies if—

a

in the case of a person who is an Article 3(3A) eligible person, sub-paragraphs (2), (3), (4) and (5) apply; or

b

in the case of a person who is a civil servant or a person serving in an employment or office listed in Schedule 1 to the 1972 Order, sub-paragraphs (2), (3) and (5) apply.

2

This sub-paragraph applies if—

a

P ceased to be an active member of the PCSPS(NI) on a date (P’s transfer date) on or before 31st March 2012;

F168b

P begins service which is pensionable under the PCSPS(NI) as—

i

an Article 3(3A) eligible person;

ii

a civil servant; or

iii

a person serving in an employment or office listed in Schedule 1 to the 1972 Order,

on a date (P’s re-joining date) after 31st March 2012; and

c

Between P’s transfer date and P’s re-joining date—

i

P was not eligible to be in pensionable service under the PCSPS(NI) F169and was continuously employed to carry out functions or services related to P’s pensionable service under the PCSPS(NI) before P’s transfer date ; or

ii

aa

an active member of the PCSPS(NI); and

P was an active member of an existing scheme or an existing public body pension scheme (“P’s transitional scheme”) on 31st March 2012;

b

P ceased to be an active member of the PCSPS(NI) or of this scheme on a date (P’s transfer date) after 31st March 2012;

c

P was an active member of an existing scheme or an existing public body pension scheme throughout the period between 31st March 2012 and P’s transfer date;

F172d

P begins service which is pensionable under the PCSPS(NI) as—

i

an Article 3(3A) eligible person;

ii

a civil servant; or

iii

a person serving in an employment or office listed in Schedule 1 to the 1972 Order,

on a date (P’s re-joining date) after P’s transfer date; and

e

Between P’s transfer date and P’s re-joining date—

i

P was not eligible to be in pensionable service under the PCSPS(NI) F173and was continuously employed to carry out functions or services related to P’s pensionable service under the PCSPS(NI) before P’s transfer date ; or

ii

aa

b

in relation to an existing public body pension scheme, an exception under section 32(4) of the Act provided for by the public authority responsible for that scheme; and

F4229A

1

Where this paragraph applies, the annual rate of upper tier top up earned pension payable under this scheme is the greater of the annual rates of upper tier top up earned pension calculated in accordance with—

a

regulation 76; and

b

sub-paragraph (2).

2

The annual rate of upper tier top up earned pension calculated in accordance with this sub-paragraph is calculated in the same way as the annual rate of full retirement earned pension is calculated under regulation 61, but—

a

the references to the member’s full retirement earned pension are taken to be references to the enhancement fraction of the deemed pension; and

b

the early payment reduction is not subtracted.

3

In this paragraph—

“deemed pension” means the amount of earned pension the member would have accrued in the member’s deemed period of pensionable service if the circumstances in paragraph 29(4B)(a) had not applied;
“the enhancement fraction” is—
$\frac{A}{B}$
where—
A is the member’s assumed period of pensionable service; and
B is the shorter of—
1. a
  the member’s deemed period of pensionable service;
2. b
  the number of scheme years in relation to which an amount of earned pension was specified in the active member’s account, or would have been if the circumstances in paragraph 29(4B)(a) had not applied;
“the member’s assumed period of pensionable service” means the period (expressed in years)—
1. a
  beginning with the day after the member’s period of service ceased; and
2. b
  ending with—
  1. i
    for a member employed for a fixed term, the day with which that term ends; or
  2. ii
    for a member otherwise employed, the day before the day on which the member will reach prospective normal pension age (assuming that the member lives until that age);
“the member’s deemed period of pensionable service” means the period (expressed in years)—
1. a
  beginning with the day the member became an active member of this scheme; and
2. b
  ending with the day on which the member became entitled to an ill-health pension under this scheme.

the question of whether M would have met a payment threshold in the PCSPS(NI) is the question of whether M would have met the lower tier payment threshold or the upper tier payment threshold in the PCSPS(NI) if their ill-health pension application had been determined on 31st March 2022;

b

M only meets a payment threshold in this scheme if, in addition to meeting the criteria for that threshold, M would be entitled to payment of an ill-health pension under this scheme (disregarding this paragraph);

c

a reference to an amount or a rate which would have been payable to M under the PCSPS(NI) is a reference to the amount or the rate which would have been payable to M under the PCSPS(NI) if their ill health application had been determined on 31st March 2022;

d

terms which are defined for the purpose of paragraph 29 have the same meaning as in that paragraph.

the member’s pensionable service under the PCSPS(NI) before the F31transition date for that member .

1

This paragraph applies in relation to a transition member with continuity of service who dies in service within the meaning of regulation 130 (death in service).

2

On the death of the member—

a

a lump sum death benefit is payable under regulation 130; but

b

a death in service lump sum death benefit is not payable under the PCSPS(NI)

3

Where the member was an active member of Section I of the PCSPS(NI) before becoming an active member of this scheme, the member is entitled to an additional payment calculated in accordance with the table.

4

In the table, “final pay” means the member’s final pay calculated under regulation 128 (meaning of “final pay”).

Member dies in scheme year beginning on	Additional payment
1st April 2015	1 x final pay
1st April 2016	0.9 x final pay
1st April 2017	0.8 x final pay
1st April 2018	0.7 x final pay
1st April 2019	0.6 x final pay
1st April 2020	0.5 x final pay
1st April 2021	0.4 x final pay
1st April 2022	0.3 x final pay
1st April 2023	0.2 x final pay
1st April 2024	0.1 x final pay
1st April 2025 or any subsequent 1st April	0 x final pay

Death out of service lump sumI6934

This paragraph applies if a member of the PCSPS(NI) (or the member’s employer on behalf of the member)—

a

claimed payment of an ill-health pension under that scheme before the member’s transition date; and

b

the pension does not become payable before the member’s transition date.

2

If the member is not entitled to immediate payment of an ill-health pension under the PCSPS(NI), the member joins this scheme on whichever is the later of—

a

the member’s transition date; and

b

the day after all relevant appeal rights in relation to the scheme medical adviser’s decision not to give an ill-health retirement certificate are exhausted.

3

In this paragraph—

“all relevant appeal rights” includes the member’s appeal rights under section 2.04 (F149... Retirement on Medical Grounds) of the Northern Ireland Civil Service HR Handbook; and
“ill-health retirement certificate” means a certificate given by the scheme medical adviser under the PCSPS(NI) stating that, in the opinion of the scheme medical adviser, the member has suffered a permanent breakdown in health involving incapacity for employment or total incapacity for employment.

the member’s qualifying service under this scheme.

Final salary link not to apply again to a pension in paymentI7540

Where any element of a pension under the PCSPS(NI) which is in payment has been calculated by reference to Schedule 7 (final salary link) to the Act, that element of the pension is not recalculated by reference to Schedule 7 in consequence of a subsequent period of pensionable public service (within the meaning of paragraph 3 of Schedule 7 to the Act) unless the further period of pension is aggregated under the rules of the PCSPS(NI) applicable to the member.

PART 8Miscellaneous transitional provisions

Declaration continues to have effectI7641

1

This paragraph applies if a transition member with continuity of service has not made a declaration under these Regulations that another adult is the dependant of the member for the purpose of death benefits under this scheme.

2

An existing declaration has effect as if made under these Regulations until the transition member makes a declaration under these Regulations.

3

In this paragraph, “existing declaration” means a declaration which—

a

was made for the purpose of the PCSPS(NI); and

b

as at the closing date, had effect under that scheme.

Nomination under the PCSPS(NI) continues to have effectI7742

1

This paragraph applies if a transition member with continuity of service has not nominated a person under these Regulations to receive a lump sum death benefit under this scheme.

2

An existing nomination has effect as if made under these Regulations until the transition member makes a nomination under these Regulations.

3

In this paragraph, “existing nomination” means a nomination which—

a

was made for the purpose of the PCSPS(NI); and

b

as at the closing date, had effect under that scheme.

PART 9Transfer of final salary benefits

a

P is treated as an active member of this scheme during the period of prospective service; and

b

the period of prospective service counts as qualifying service.

F2SCHEDULE 3The Partnership Pension Account F43Ill-Health Benefits Arrangements

Regulation 183

Annotations:

Amendments (Textual)

Sch. 3 inserted (1.4.2015) by The Public Service (Civil Servants and Others) Pensions (Amendment) Regulations (Northern Ireland) 2015 (S.R. 2015/181), reg. 1, Sch. 1

F43

Word in Sch. 3 heading substituted (with effect in accordance with of the amending Rule) by The Public Service (Civil Servants and Others) Pensions (Amendment) Regulations (Northern Ireland) 2022 (S.R. 2022/67), regs. 1(2), 59(2)

PART 1Preliminary

Interpretation - general1

In this Schedule—

“the 2002 Section” means Section I of the PCSPS(NI);
“the 2007 Section” means Section III of the PCSPS(NI);
“alpha” means the scheme established by regulation 3;
“eligible service” has the meaning given in paragraph 2;
“final pensionable earnings” has the meaning given in paragraph 3;
“ill-health benefits” in relation to a person means benefits payable in the event of the person’s ill-health;
“incapacity for employment” has the meaning given in paragraph 4;
“partnership ill-health benefits arrangements” means the arrangements for payment of ill-health benefits set out in this Schedule or in the scheme made under section 1 of the 1972 Order which provided for F153ill-health benefits for persons who have a partnership pension account;
“permanent breakdown in health” has the meaning given in paragraph 5; and
“qualifying partnership service” has the meaning given in paragraph 6.

Meaning of “eligible service”2

1

In this Schedule, “eligible service” in relation to a person to whom this Schedule applies (P) means the aggregate of the periods of service (expressed in years) referred to in F154sub-paragraph (2) which fall within P’s current period of scheme employment to which sub-paragraph (3) applies.

2

The periods referred to in this sub-paragraph are—

a

any period of service during which P has a partnership pension account to which P’s employer is paying contributions;

b

any period which counts as qualifying service under the 2002 Section or the 2007 Section which is qualifying partnership service in relation to P; and

c

any period during which P is in pensionable service under alpha which is qualifying partnership service in relation to P.

3

This sub-paragraph applies to a period of service in scheme employment in respect of which P—

a

receives pensionable earnings; or

b

is treated as receiving assumed pay.

4

If a person (P) to whom this Schedule applies is in part-time service at any time during the periods referred to in F155sub-paragraph (2) , the eligible service in respect of the period during which P is in part-time service is—

\frac{A}{(N \times 52.2)} y e a r s

where–

A is the number of hours of P’s part-time service in the period in question (excluding meal breaks, unless they are paid for part-time staff); and
N is the number of weekly full-time conditioned hours in the period in question for a person in the same grade as P (excluding meal breaks unless they are paid for part-time staff).

5

If the number of weekly full-time conditioned hours varies during the period in question, the calculation in sub-paragraph (4) must be made separately for each period within the period of part-time service in question during which that number remains the same.

Meaning of “final pensionable earnings”3

1

In this Schedule, “final pensionable earnings” in relation to a person (P) to whom this Schedule applies means the greater of—

a

P’s permanent pensionable earnings in the 12 months ending on the last day of P’s eligible service; and

b

P’s permanent pensionable earnings in one of the last two complete scheme years ending on or before the last day on which P was in scheme employment.

2

This sub-paragraph applies where—

a

P’s last day of eligible service is after 29^th July 2007;

b

P returned from unpaid leave or unpaid absence during the 12 months ending with P’s last day of eligible service;

c

P was in scheme employment during the whole of the period of 12 months ending with P’s last day of eligible service; and

d

during the period of unpaid leave or unpaid absence referred to in paragraph (b) P did not have a partnership pension account to which P’s employer was paying contributions.

3

Where sub-paragraph (2) applies, the period of 12 months referred to in sub-paragraph (1)(a) shall be taken as being the period of 365 days plus the number of days during the period of unpaid leave or unpaid absence referred to in sub-paragraph (2)(b).

4

If the period of 365 days referred to in sub-paragraph (3) includes 29^th February, that sub-paragraph has effect with the substitution for “365” of “366”.

5

For the purpose of sub-paragraph (1), P’s permanent pensionable earnings for any period include any assumed pay which P is treated as receiving during that period.

6

If P was in part-time service during any period which is relevant for the purpose of sub-paragraph (1), P’s final pensionable earnings are calculated as if P received the full-time rate during that period.

7

If P was not in scheme employment during the whole of the 12 month period referred to in sub-paragraph (1)(a), that sub-paragraph applies as if it referred to P’s annualised permanent pensionable earnings in P’s latest period of scheme employment ending with P’s last day of eligible service.

8

For the purposes of sub-paragraph (7), P’s annualised permanent pensionable earnings for a period are—

P P E \times \frac{365}{N}

where–

PPE is P’s permanent pensionable earnings for the period; and
N is the number of days in the period.

9

If the period referred to in sub-paragraph (8) includes 29th February, sub-paragraph (8) has effect with the substitution for “365” of “366”.

10

Only pensionable earnings in P’s latest continuous period of service in scheme employment are to be taken into account for the purposes of sub-paragraph (1)(a) and (b).

11

In sub-paragraph (10), “continuous period of service in scheme employment” means a period of service in scheme employment disregarding any gap in service in scheme employment not exceeding 6 months.

Meaning of “incapacity for employment”4

In this Schedule, a person’s breakdown in health involves “incapacity for employment” if the scheme medical adviser is of the opinion that as a result of the breakdown the person is incapable of doing the person’s own or a comparable job.

Meaning of “permanent breakdown in health”5

In this Schedule, a person’s breakdown in health is “permanent” if the scheme medical adviser is of the opinion that the breakdown will continue until the person reaches pension age.

Meaning of “qualifying partnership service”6

In this Schedule, “qualifying partnership service” means the aggregate of the following periods—

a

any period beginning on or after 1^st October 2002 falling within a person’s latest period of scheme employment during which the person has a partnership pension account (regardless of whether the person’s employer pays contributions);

b

any period which counts as qualifying service under the 2002 Section or the 2007 Section provided that the last day of such period was immediately before the person held a partnership pension account;

c

where a person (P) was in pensionable service under alpha immediately before P held a partnership pension account—

i

any period during which P was in pensionable service under alpha provided that the last day of such period was immediately before P held a partnership pension account; and

ii

any period which counts as qualifying service under the 2002 Section or the 2007 Section provided that the last day of such period was immediately before P’s period of qualifying partnership service within paragraph (i); and

d

in the case of a person who is transferred to scheme employment without the person’s consent and who has a partnership pension account immediately after that transfer, the whole of the period during which that person was an active member of an occupational pension scheme in the person’s employment immediately prior to the transfer.

Calculation of periods of service7

Where this Schedule provides for a period of service to be expressed in years, regulation 176 applies for the purposes of this Schedule.

PART 2Application

Sub-paragraph (2) applies where—

a

a lump sum has been awarded to a person (P) under this Schedule; and

b

it subsequently appears to the scheme manager that P made a false declaration about P’s health or deliberately suppressed a material fact that was relevant to the award.

2

The scheme manager may withhold the whole or part of the lump sum or recover any payment of the lump sum that has been made.

F3SCHEDULE 4The Partnership Death Benefits Arrangements

Regulation 184

Annotations:

Amendments (Textual)

Sch. 4 inserted (1.4.2015) by The Public Service (Civil Servants and Others) Pensions (Amendment) Regulations (Northern Ireland) 2015 (S.R. 2015/181), reg. 1, Sch. 2

PART 1Preliminary

Interpretation1

In this Schedule—

“the 1972 Section” means Section II of the PCSPS(NI)”;
“the 2002 Section” means Section I of the PCSPS(NI);
“the 2007 Section” means Section III of the PCSPS(NI);
“alpha” means the scheme established by regulation 3;
“death benefits” in relation to a person means benefits payable in the event of the person’s death;
“final pensionable earnings” has the meaning given in paragraph 2;
“last day of eligible service” in relation to a person (P) means the last day, during P’s current period of service in scheme employment, of P’s latest period of service during which P has a partnership pension account to which P’s employer is paying contributions; and
“partnership death benefits arrangements” means the arrangements for payment of death benefits set out in this Schedule or in the scheme made under Article 3 of the 1972 Order which provided for death benefits for persons who have a partnership pension account.

Meaning of “final pensionable earnings”2

1

In this Schedule, “final pensionable earnings” in relation to a person (P) to whom this Schedule applies means the greater of—

a

P’s permanent pensionable earnings in the 12 months ending on P’s last day of eligible service; and

b

P’s permanent pensionable earnings in one of the last 2 complete scheme years ending on or before the last day on which P was in scheme employment.

2

This sub-paragraph applies where—

a

P’s last day of eligible service is after 29th July 2007;

b

P returned from unpaid leave or unpaid absence during the 12 months ending with P’s last day of eligible service;

c

P was in scheme employment during the whole of the period of 12 months ending with P’s last day of eligible service; and

d

during the period of unpaid leave or unpaid absence referred to in paragraph (b) P did not have a partnership pension account to which P’s employer was paying contributions.

3

4

If the period of 365 days referred to in sub-paragraph (3) includes 29^th February, that paragraph has effect with the substitution for “365” of “366”.

5

For the purpose of sub-paragraph (1), P’s permanent pensionable earnings for any period include any assumed pay which P is treated as receiving during that period.

6

If P was in part-time service during any period which is relevant for the purpose of sub-paragraph (1), P’s final pensionable earnings are calculated by reference to P’s actual rate of pensionable earnings during that period.

7

8

For the purposes of sub-paragraph (7), P’s annualised permanent pensionable earnings for a period are—

P P E \times \frac{365}{N}

where–

PPE is P’s permanent pensionable earnings for the period; and
N is the number of days in the period.

9

If the period referred to in sub-paragraph (8) includes 29^th February, sub-paragraph (8) has effect with the substitution for “365” of “366”.

10

Only pensionable earnings in P’s latest continuous period of service in scheme employment are to be taken into account for the purposes of sub-paragraph (1)(a) and (b).

11 PART 2Application

Persons to whom this Schedule applies3

Subject to paragraph 4, this Schedule applies to any person who—

a

has a partnership pension account; and

b

is in service in a scheme employment immediately prior to the person’s death.

Exclusions from Schedule application4

This Schedule does not apply to a person (P) if—

a

the terms of P’s employment provide that the partnership death benefits arrangements do not apply to P;

b

P’s employer has made alternative provision for death benefits in respect of P;

c

P’s employer is not making payments to the scheme manager for the arrangements for payment of death benefits set out in this Schedule to apply to P; or

d

P opts for the partnership death benefits arrangements not to apply to P.

PART 3Lump sum death benefits

Payment of lump sum death benefits5

A lump sum death benefit is payable if a person to whom this Schedule applies dies before reaching the age of 75.

Nominations for lump sum death benefits6

1

A person to whom this Schedule applies (P) may nominate a person or persons to receive a lump sum death benefit.

2

3

If the scheme manager decides to pay the lump sum death benefit to the nominees and to P’s personal representatives, the payment is to be made to them in such proportions as the scheme manager considers appropriate.

Amount of lump sum death benefits9

1

Subject to sub-paragraphs (2) to (6), the amount of the lump sum death benefit payable in respect of a person to whom this Schedule applies (P) is equal to the amount of P’s final pensionable earnings multiplied by 3.

2

If, in respect of P, a lump sum is payable under rule E.16 of the 2002 Section (amount of lump sum benefit under rule E.14: deferred members), the amount specified in sub-paragraph (1) is only payable if and to the extent that it exceeds the aggregate amount of any lump sum payments made in respect of P under rule E.16 of the 2002 Section.

3

If, in respect of P, a lump sum is payable under rule 3.16 of the 1972 Section (preserved benefits), the amount specified in sub-paragraph (1) is only payable if and to the extent that it exceeds the aggregate amount of any lump sum payments made in respect of P under rule 3.16 of the 1972 Section.

4

If, in respect of P, a lump sum is payable under rule F.13 of the 2007 Section (amount of lump sum benefit under rule F.11: deferred members and pensioner members) as it applies to a deceased deferred member of Section III (within the meaning of that Section), the amount specified in sub-paragraph (1) is only payable if and to the extent that it exceeds the aggregate amount of any lump sum payments made in respect of P under rule F.13 of the 2007 Section.

5

If, in respect of P, a lump sum is payable under regulation 131 (amount payable on death of deferred member or pensioner member of alpha (death out of service)) as it applies to a deceased deferred member of alpha (within the meaning of that scheme), the amount specified in sub-paragraph (1) is only payable if and to the extent that it exceeds the aggregate amount of any lump sum payments made in respect of P under regulation 131.

6

If, in respect of P, lump sums are payable under two or more of the provisions of the PCSPS or alpha referred to in sub-paragraphs (2) to (5), the amount specified in sub-paragraph (1) is only payable if and to the extent that it exceeds the aggregate amount of the lump sums that are payable.

EXPLANATORY NOTE

(This note is not part of the Regulations)

Part 2 of these Regulations establishes a scheme for the payment of pensions and other benefits to civil servants and other persons as determined by the Department under section 25(5) of the Public Service Pensions Act (Northern Ireland) 2014 (c.2). The scheme so established is a career average revalued earnings scheme.

Part 3 contains governance provisions including delegation of the scheme manager’s functions and establishment of the Northern Ireland Civil Service Pension Board and a scheme advisory board.

Part 4 provides for scheme membership. It sets out the key concepts of scheme employment and pensionable earnings. It contains eligibility and auto-enrolment provisions.

Part 5 provides for the establishment of a member’s pension accounts in relation to a continuous period of pensionable service under this scheme. It also provides for the establishment of a pension credit member’s account.

Part 6 provides for a member’s entitlement to payment of retirement benefits including partial retirement benefits and ill-health benefits. It also provides for the assignment of benefits. It sets out the key concept of qualifying service.

Part 7 provides for benefits for pension credit members.

Part 8 provides for death benefits payable to surviving adults and eligible children and for payment of lump sum benefits. It also provides for the recovery and suspension of the payments in certain cases.

Part 9 provides for the payment of contributions by members and employers.

Part 10 provides for making and receiving transfer payments.

Part 11 provides for actuarial valuations and employer cost cap.

Part 12 contains supplementary provisions on payment of pensions, forfeiture and set off, payment and deduction of tax and miscellaneous provisions including the determination of questions.

Schedule 1 makes provision for payments for extra pension.

Schedule 2 makes transitional provision.

An impact assessment has not been prepared for this rule as no impact on the costs of business or the voluntary sector is foreseen.