SCHEDULE 2Scheme flexibilities
PART 2Additional pension election
CHAPTER 4Additional pension contributions by monthly payments
Application of Chapter14
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.
Payment of contributions15
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.
Member leaves all pensionable service before end of contributions payment period16
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.
Retirement pension (other than ill health pension) becomes payable before end of contributions payment period17
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.