CHAPTER 2Making a buy-out election
Eligible to make buy-out election
31.—(1) A member (P) who has a normal pension age over 65 may elect to pay contributions to buy out the standard reduction (“buy-out election”) for a period of up to 3 years.
(2) A buy-out election has effect from the day on which the scheme manager accepts the election.
(3) A buy-out election ceases to have effect when the earliest of the following occurs—
(a)P reaches normal pension age;
(b)a retirement pension other than a phased retirement pension becomes payable to P;
(c)P revokes the election or is taken to revoke the election.
(4) A buy-out election may only be made within 6 months after P enters pensionable service under this scheme.
(5) When making a buy-out election, P must be—
(a)in pensionable service; and
(b)under normal pension age.
(6) P may by written notice to the scheme manager vary a buy-out election if P’s normal pension age changes before a retirement pension becomes payable to P.
Making a buy-out election
32.—(1) A buy-out election made by a member (P) must state the number of years in respect of which the standard reduction is to be bought out.
(2) A buy-out election must be made by written notice to the scheme manager.
(3) The notice of election must specify—
(a)if P is in more than one eligible employment, the name of the employer who is to deduct the contributions;
(b)P’s name;
(c)P’s date of birth;
(d)P’s normal pension age;
(e)the date on which P entered pensionable service;
(f)P’s annual rate of pensionable earnings.
(4) The scheme manager may ask P to provide further information.
Accepting a buy-out election
33.—(1) The scheme manager may accept a buy-out election by giving written notice to the person who made the election (P).
(2) The notice must state the buy-out value.
(3) A buy-out election is accepted when P receives notice that the scheme manager has accepted the election.