SCHEDULE 2Scheme flexibilities
PART 3Faster accrual election
CHAPTER 1Making the election
Faster accrual election22
1
A member (P) may elect, in relation to pensionable service in an eligible employment, to pay contributions to accrue earned pension at a faster accrual rate in a financial year (“faster accrual election”).
2
A faster accrual election must state the faster accrual rate which is to apply to P’s pensionable earnings in that employment for that financial year.
3
A faster accrual election—
a
must be made—
i
in the financial year before the financial year to which it relates; or
ii
if P is a new joiner, within one month after P enters pensionable service in relation to an employment;
b
has effect from—
i
the start of the financial year to which it relates; or
ii
if P is a new joiner, one month after the election is received by the scheme manager; and
c
ceases to have effect at the end of the financial year to which it relates unless it is revoked before then.
4
When making a faster accrual election, P must be—
a
in pensionable service; and
b
under normal pension age.