The Parliamentary Pensions (Amendment) Regulations 1995

SCHEDULE

1.  In this Schedule—

“Member” means a person to whom this Schedule applies; and

“the appointed date” means, in the case of each Member, such date on or after 1st April 1995 as the Trustees may appoint.

2.  The Trustees shall apply the provisions of this Schedule to a Member as at the appointed date.

Calculation of reckonable service

3.  The Trustees shall calculate such of the Member’s aggregate period of reckonable service as a participating Member as has accrued, making such of the following adjustments as may apply to him—

(a) where he is paying periodical contributions for the purchase of added years, the number of such years purchased as at the appointed date shall be calculated in accordance with the formula

where—

• A is the number of added years he applied to purchase by periodical contributions (after making any relevant adjustment under regulation E2(1A)(a) or (b) of the principal Regulations); and

• B is the period (expressed to the nearest day) during which periodical contributions have been paid); and

• C is the total period during which periodical contributions are payable under the contract, and where the Trustees have accepted more than one application from him to purchase added years by the payment of periodical contributions, each contract shall be apportioned accordingly;

(b) the amount (if any) of his actual period of reckonable service as a participating Member as fell after he attained the age of sixty-five years shall be disregarded.

Refunds

4.—(1) If the Member’s accrued aggregate period of reckonable service exceeds that which would provide him with such maximum pension as would be calculated in respect of him at his normal retirement date under Schedule 2 to the principal Regulations, the Trustees shall, in accordance with the provisions of this paragraph, refund to him the contributions he has paid into the Fund in respect of the excess.

(2) Subject to sub-paragraph (3), when making a refund under sub-paragraph (1), the Trustees shall refund contributions in the following order—

(i) contributions paid in respect of any added years included in the Member’s accrued aggregate period of reckonable service as a participating Member; and

(ii) contributions paid in respect of the balance of the excess, the most recent contributions first.

(3) Where the number of added years included in the Member’s accrued aggregate period of reckonable service as a participating Member is greater than the excess, the Trustees shall calculate the amount of all his contributions paid in respect of added years and the amount refunded shall be that proportion of the total amount of contributions paid for added years as the excess bears to the number of added years accrued.

(4) When calculating an amount of contributions as at the appointed date, the Trustees shall add interest from the dates on which the contributions were paid respectively.

(5) The Trustees shall pay any refund with interest from the appointed date when the Member so requests or, if no such request has then been made, when a pension comes into payment to or in respect of him under the principal Regulations.

Deduction of tax from refunds of contributions

5.  Regulation N5(2) of the principal Regulations shall apply in the case of any refund made under paragraph 4 as if it were a refund made under regulation N3 or N4 of those Regulations.

Reduction in added years being purchased

6.—(1) In the case of a Member who is purchasing added years by paying periodical contributions, the Trustees shall calculate, in accordance with paragraph 8(5) of Schedule 6 to the principal Regulations, the maximum added years he may purchase by way of future contributions.

(2) For the purposes of the calculation under sub-paragraph (1), the Trustees shall—

(a) take as his accrued aggregate period of reckonable service as a participating Member the period calculated under paragraph 3; and

(b) disregard his future added years.

(3) If the number of future added years which the Member has contracted to purchase exceeds the maximum calculated under sub-paragraph (1), the number of future added years which he has contracted to purchase shall be reduced to that maximum.

(4) Subject to sub-paragraph (5), if a reduction in a Member’s future added years is made under sub-paragraph (3), the annual amount of any periodical contributions which (apart from the provisions of this paragraph) would be payable by him on or after the appointed date shall be reduced by the proportion (up to and including 100%) which the amount of the reduction bears to the number of future added years referred to in sub-paragraph (3).

(5) If the future added years referred to in paragraph (3) are being purchased by the Member under more than one application under the Parliamentary Pensions (Purchase of Added Years) Order 1978 or under the principal Regulations, a reduction under paragraph (3) shall be effected taking those applications in such order as the Trustees shall consider appropriate, having regard to any preferences expressed to them in writing by the Member.

(6) In this paragraph, “future added year” means, as at the appointed date, and after taking into account any relevant adjustment under regulation E2(1A)(a) or (b) of the principal Regulations, an added year in respect of which the Member’s application to purchase by paying periodical contributions has been accepted by the Trustees but which is not included in his accrued aggregate period of reckonable service as a participating Member.