Design
I18Types of scheme
1
Scheme regulations may establish a scheme under section 1 as—
a
a defined benefits scheme,
b
a defined contributions scheme, or
c
a scheme of any other description.
2
A scheme under section 1 which is a defined benefits scheme must be—
a
a career average revalued earnings scheme, or
b
a defined benefits scheme of such other description as regulations made by the Department of Finance and Personnel may specify.
3
Such regulations may not specify a final salary scheme under subsection (2)(b).
4
A scheme under section 1 is a “career average revalued earnings scheme” if—
a
the pension payable to or in respect of a person, so far as it is based on the person's pensionable service, is determined by reference to the person's pensionable earnings in each year of pensionable service, and
b
those earnings, or a proportion of those earnings accrued as a pension, are under the scheme revalued each year until the person leaves pensionable service.
F14A
The extent to which a scheme under section 1 is a career average revalued earnings scheme is not affected by provision contained in scheme regulations that is made under section 78 of PSPJOA 2022 (local government schemes: power to pay final salary benefits).
5
Regulations made by the Department of Finance and Personnel under subsection (2)(b) are subject to negative resolution.