SCHEDULE
1. In this Schedule—
“participant” means a person to whom this Schedule applies; and
“the appointed date” means, in the case of each participant, such date on or after 1st April 1995 as the Managers may appoint.
2. The Managers shall apply the provisions of this Schedule to a participant as at the appointed date.
Calculation of reckonable service
3. The Managers shall calculate such of the participant’s aggregate period of reckonable service 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 article 6(2)(a) or (b) of the principal Order); 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 Managers 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 fell after he attained the age of sixty-five years shall be disregarded.
Refunds
4.—(1) If the participant’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 Order, the Managers shall, in accordance with the provisions of this paragraph, refund to him the contributions he has paid in respect of the excess.
(2) Subject to sub-paragraph (3), when making a refund under sub-paragraph (1), the Managers shall refund contributions in the following order—
(i)contributions paid in respect of any added years included in the participant’s accrued aggregate period of reckonable service; 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 participant’s accrued aggregate period of reckonable service is greater than the excess, the Managers 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 a refund of contributions as at the appointed date, the Managers shall add interest from the dates on which the contributions were paid respectively.
(5) The Managers shall pay any refund with interest from the appointed date when the participant 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 Order.
Deduction of tax from refunds of contributions
5. Regulation N5(2) of the Parliamentary Pensions (Consolidation and Amendment) Regulations(1) 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 participant who is purchasing added years by paying periodical contributions, the Managers shall calculate, in accordance with paragraph 8(5) of Schedule 7 to the principal Order, the maximum added years he may purchase by way of future contributions.
(2) For the purposes of the calculation under sub-paragraph (1), the Managers shall—
(a)take as his accrued aggregate period of reckonable service the period calculated under paragraph 3; and
(b)disregard his future added years.
(3) If the number of future added years which the participant has contracted to purchase by paying periodical contributions 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 participant’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 participant under more than one application, a reduction under paragraph (3) shall be effected taking those applications in such order as the Managers shall consider appropriate, having regard to any preferences expressed to them in writing by the participant.
(6) In this paragraph, “future added year” means, as at the appointed date, and after taking into account any relevant adjustment under article 6(2)(a) and (b) of the principal Order, an added year in respect of which the participant’s application to purchase has been accepted by the Managers but which is not included in his accrued aggregate period of reckonable service.
S.I. 1993/3253.