PART 3Modification of early leaver and other provisions
Application of this Part5
1
This Part applies where a person (P)—
a
is a member of the old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2013 Act (final salary link);
b
is a member of the new scheme by virtue of pensionable service for the new scheme; and
c
is—
i
a person to whom paragraph 1 or 2 of Schedule 7 to the 2013 Act applies by virtue of that person’s pensionable service for the new scheme, and whose final salary falls for the purposes of the old scheme to be determined by reference to that paragraph; or
ii
a person to whom—
aa
Schedule 1 to the National Health Service Superannuation Scheme (Scotland) Regulations 2011; or
bb
Part 3 of the National Health Service Superannuation Scheme (2008 Section) (Scotland) Regulations 2013,
applies and who has pensionable service for the old scheme and pensionable service for the new scheme which are continuous.
2
For the purposes of paragraph (1)(c)(ii)—
a
paragraph 3 of Schedule 7 to the 2013 Act (continuity of employment) applies as it applies for the purposes of paragraphs 1(2)(a) and 2(2)(a) of that Schedule; and
b
P’s pensionable service for the old scheme and pensionable service for the new scheme are not continuous if scheme regulations made pursuant to section 8A(4)(b) of the Pensions (Increase) Act 19719 (references to “service”: relevant old scheme pension in payment) apply to P.
Certification6
1
Section 15A of the 1993 Act10 (reduction of guaranteed minimum in consequence of pension debit) is modified as follows in relation to P.
2
In the application of that section to the old scheme, the reference in subsection (2) of that section to pensionable service under the scheme is to be taken as a reference to pensionable service either for the old scheme or for the new scheme.
Preservation of benefit7
1
Chapter 1 of Part 4 of the 1993 Act (protection for early leavers: preservation of benefit under occupational scheme) is modified as follows in relation to P.
2
In the application of that Chapter to the old scheme—
a
in section 7011 (interpretation), in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme;
b
in section 71(1) (basic principle as to short service benefit)—
i
the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or the new scheme must make that provision;
ii
a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to the new scheme;
iii
a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
iv
a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme,
and subsequent references in the Chapter to “short service benefit” are to be construed accordingly;
c
in section 71(5), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
d
in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the old scheme or for the old and new schemes taken together; and
e
in sections 72(2) (no discrimination between short service and long service beneficiaries), 74(6) and (7) (computation of short service benefit), 75(3) and (4) (credits) and 76(1) and (3) (pension increases), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
3
In the application of that Chapter to the new scheme—
a
in section 70, in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme;
b
in section 71(1)—
i
the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or the new scheme must make that provision;
ii
a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to the new scheme;
iii
a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme,
and subsequent references in the Chapter to “short service benefit” are to be construed accordingly;
c
in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the new scheme or for the old and new schemes taken together; and
d
in section 74(6), in relation to pensionable service which is terminated, the reference to the beginning of that service is to be taken as a reference to the beginning of pensionable service under the old scheme.
Revaluation of preserved benefit8
1
Chapter 2 of Part 4 of the 1993 Act (protection for early leavers: revaluation of accrued benefits excluding guaranteed minimum payment) is modified as follows.
2
In the application of Chapter 2 for the purpose of revaluing benefit payable to or in respect of P under the old scheme—
a
in section 83(1)(a)(ii)12 (scope of Chapter 2), the reference to the date on which P’s pensionable service ends is to be taken as a reference to the date on which P’s pensionable service ends in relation to the new scheme; and
b
subsequent references in that Chapter to “the termination date” and the “pre-pension period” are to be construed accordingly.
Protection of increases in guaranteed minimum pensions9
1
Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows.
2
In the application of that Chapter to P as a member of the old scheme—
a
in section 87(1)(a)(i)13 (general protection principle), the reference to the time when P ceases to be in contracted-out employment by reference to a scheme is to be taken as a reference to the time when P ceases to be in employment which is contracted-out by reference to the new scheme; and
b
subsequent references to “the cessation date” are to be construed accordingly.
Protection of increases in guaranteed minimum pensions after abolition of contracting-out10
1
Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows.
2
In the application of that Chapter to P as a member of the old scheme—
a
in section 87(1)(a)(i) (general protection principle), the reference to the time when P ceases to be in pensionable service under a scheme that was, before the second abolition date, a salary-related contracted-out scheme is to be taken as a reference to the time when P ceases to be in pensionable service in relation to the new scheme; and
b
subsequent references to “the cessation date” are to be construed accordingly.
Transfer values11
1
Chapter 4 of Part 4 of the 1993 Act (protection for early leavers: transfer values) is modified as follows.
2
In the application of that Chapter to P as a member of the old scheme, in—
a
section 93(1)(a)14 (scope of Chapter 4);
b
section 97(3)(a) (calculation of cash equivalents); and
c
section 98(1A) and (3)15 (variation and loss of rights under section 94),
a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
Transfer values regulations12
1
The Occupational Pension Schemes (Transfer Values) Regulations 199616 are modified as follows.
2
In the application of regulation 3 of those Regulations (rules on continuation in employment after termination of pensionable service) to P as a member of the old scheme—
a
in paragraph (1), a reference to employment to which a scheme applies is to be taken as a reference to employment to which the new scheme applies;
b
in paragraph (1)(a), a reference to P’s pensionable service terminating at P’s request is to be taken as a reference to P’s pensionable service in relation to the new scheme so terminating; and
c
in paragraph (1)(b)(i), a reference to P’s pensionable service continuing until the guarantee date is to be taken as a reference to P’s pensionable service in relation to the new scheme so continuing.
3
In the application of regulation 4 of those Regulations (right to further cash equivalent on termination of employment to which the scheme applies) to P as a member of the old scheme, in paragraphs (1), (2), (3)(a) and (4) a reference to termination of P’s employment is to be taken as a reference to termination of P’s employment to which the new scheme applies.
Cash transfers and contribution refunds13
1
Chapter 5 of Part 4 of the 1993 Act17 (protection for early leavers: cash transfers and contribution refunds) is modified as follows.
2
In the application of that Chapter to P as a member of the old scheme—
a
in section 101AA(1) (scope of Chapter 5), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
b
in section 101AA(2), a reference in the opening words and in paragraph (a) to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the old scheme or for the old and new schemes taken together; and
c
in section 101AB(1) and (3) (right to cash transfer sum and contribution refund), 101AC(1) and (2)(a) (notification of right to cash transfer sum or contribution refund) and 101AI(7) (rights under section 101AB: definition of “reply date”), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
3
In the application of that Chapter to P as a member of the new scheme, in section 101AA(2) a reference in the opening words and in paragraph (a) to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the new scheme or for the old and new schemes taken together.