The Occupational Pension Schemes (Transfer Values) Regulations 1996

Right to further cash equivalent on termination of employment to which the scheme appliesE+W+S

4.—(1) This regulation applies to a case where regulation 3 (or regulation 2A of the Occupational Pension Schemes (Transfer Values) Regulations 1985 M1) has operated to restrict a member’s cash equivalent and subsequently the member’s employment terminates on a date which is at least one year earlier than the date on which the member would attain the age which is the normal pension age for the scheme or, where the normal pension age is earlier than 60, the age of 60.

(2) Where this regulation applies, a right to any cash equivalent or any part of a guaranteed cash equivalent to which the member has not acquired a right but would, but for the operation of regulation 3 (or regulation 2A of the Occupational Pension Schemes (Transfer Values) Regulations 1985), have acquired a right by the date when the member’s employment terminates shall accrue to the member on that date.

(3) Where a right to any part of a guaranteed cash equivalent accrues to a member under paragraph (2), the cash equivalent of the benefits to which that part relates shall be recalculated as at—

(a)the date on which the member’s employment terminates; or, if later,

(b)the date on which the member applies to take that part

and that part shall be increased or reduced by the amount by which it falls short of or exceeds the value of the cash equivalent of those benefits as so recalculated.

(4) In relation to any case to which this regulation applies there shall be substituted for the definitions of “relevant date" in section 94(2) of the 1993 Act (right to cash equivalent) and of “the last option date" in section 95(8) of that Act (ways of taking right to cash equivalent) the following definitions—

““relevant date" means the date when the member’s employment terminates or the date of the relevant application, whichever is the later”, and

““the last option date" means the date which falls—

(a)one year before the date on which the member attains normal pension age; or

(b)six months after the date when his employment terminates,

whichever is the later”.

(5) In this regulation “employment" means employment to which the scheme applies.

Modifications etc. (not altering text)

C6Reg. 4 applied (with modifications) (1.4.2015 coming into force in accordance with ) by The National Health Service Pension Scheme (Consequential Provisions) Regulations 2015 (S.I. 2015/432), regs. 1(2), 12(3)

Marginal Citations

M1S.I. 1985/1931. The relevant amending instruments are S.I. 1987/1107, S.I. 1988/523, S.I. 1990/1142 and S.I. 1994/1062.