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PART 9 N.I.Contributions

Rate of member contributionsN.I.

124.—(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), 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 24(3) which apply to the member not applied.

(4) The member contributions rate during a scheme year to which [F1the table at the end of] this regulation applies is the percentage, set out in [F2column 2 of the table], which applies to a member's annualised rate of pensionable earnings [F3(see column 1 of the table)] calculated in relation to each payment of a member's pensionable earnings.

[F4(4A) The figures in column 1 of the table (except for the figures of £150,001) are increased on 1st April 2021 and on 1st April of each subsequent scheme year, if there is a relevant increase in the consumer prices index, by appropriate percentage for the scheme year, rounded up to the nearest £1.

(4B) There is a relevant increase in the consumer prices index for a scheme year if the consumer prices index for the month of September before that scheme year is higher than that for the previous September.

(4C) The appropriate percentage for the scheme year is the same percentage as the percentage increase in the consumer prices index.]

(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—

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—

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 qualifying judicial office, the number of days in the period beginning on the day the member commenced the period of pensionable service in the qualifying judicial office and ending on the day before the day that this payment was made; or

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

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

[F5(9) In this regulation, “the consumer prices index” means the all items consumer prices index published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007.]

[F6Contributions table for scheme year 1st April 2020 to 31st March 2021

Column 1

Annualised rate of pensionable earnings

Column 2

Member contributions rate

Up to but not including £22,0054.6%
£22,005 to but not including £52,3925.45%
£52,392 to but not including £150,0017.35%
£150,001 and above8.05%]

Textual Amendments

Amount of pensionable earningsN.I.

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

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

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

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

Payment of member contributionsN.I.

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

[F7(1A) Member contributions that must be paid under section 52(4) of PSPJOA 2022 are to be paid in accordance with regulation 66 of the 2023 Regulations.]

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

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

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

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

Textual Amendments

Employers' contributionsN.I.

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

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

(a)annual administration charges; and

(b)any other administrative charges,

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

Deduction of payments for extra pension under Schedule 1N.I.

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

(a)added pension; and

(b)an effective pension age.

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

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

(a)regulation 21 applies; or

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

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

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

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

(2) If paragraph (1)(b) applies, the member is entitled to be paid an amount equal to the sum of all member contributions and payments resulting from the exercise of an option under Schedule 1 made by the member, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act M1 as a result of a refund of those contributions and payments.

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

Marginal Citations

M1Section 205 was amended by the Finance Act 2013 (c. 29) Schedule 46 paragraphs 119 and 121 and S.I. 2010/536.

Refund of payments for extra pension made by the memberN.I.

130.—(1) This paragraph applies if—

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

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

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

(2) The member is entitled to be paid an amount equal to all the payments for extra pension made by the member in respect of that option, less an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act as a result of a refund of those payments.