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.