Types of scheme
8.—(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.
(5) Regulations made by the Department of Finance and Personnel under subsection (2)(b) are subject to negative resolution.