SCHEDULE 2 Scheme flexibilities

PART 2 Additional pension election

CHAPTER 4 Additional pension contributions by monthly payments

14 Application of Chapter
This Chapter applies to a member (P)—
(a) in respect of whom an additional pension election is accepted; and
(b) whose notice of election states that contributions are to be paid by monthly payments.

15 Payment of contributions
(1) P must—
(a) make the first monthly payment within 2 months after the end of the month in which the additional pension election is accepted; and
(b) continue to make the monthly payments until the end of the contributions payment period.
(2) The final monthly payment must be made before P reaches normal pension age.
(3) If the scheme manager re-determines the amount of the monthly payment during the contributions payment period, P must pay the re-determined amount from the beginning of the next financial year.
(4) P is taken to revoke an additional pension election if—
(a) a monthly payment is missed; and
(b) the payment is not made within 3 months after P receives a written demand from the scheme manager.

16 Member leaves all pensionable service before end of contributions payment period
(1) This paragraph applies if P leaves all pensionable service before the end of the contributions payment period.
(2) If this paragraph applies—
(a) monthly payments for additional pension cease to be payable at the end of the period of one month beginning with the last day of pensionable service (“the one-month period”); and
(b) the amount of accrued additional pension as at the last day of pensionable service is an amount determined by the scheme manager.
(3) This paragraph does not apply if, within 2 months after the last day of pensionable service, P pays the scheme manager a lump sum of an amount determined by the scheme manager.
(4) For the purpose of this paragraph, P is not taken to have left all pensionable service if—
(a) during the one-month period, P begins a period of non-pensionable sick leave; and
(b) during the period of non-pensionable sick leave, an ill-health pension becomes payable to P.

17 Retirement pension (other than ill health pension) becomes payable before end of contributions payment period
(1) This paragraph applies if any of the following retirement pensions becomes payable to a member (P) before the end of the contributions payment period—
(a) an age retirement pension;
(b) a phased retirement pension (if P has elected to receive additional pension with it);
(c) a premature retirement pension;
(d) an early retirement pension.
(2) If this paragraph applies—
(a) monthly payments for additional pension cease to be payable on the entitlement day for that pension; and
(b) the amount of accrued additional pension as at the relevant last day is an amount determined by the scheme manager.