SCHEDULE 2Scheme flexibilities

PART 4Election to buy out the standard reduction

CHAPTER 2Payment of buy-out contributions

Determination of contributions payable

33.

(1)

The Department must determine the amount of the monthly payments to be paid in respect of a buy-out election.

(2)

The Department—

(a)

may determine the amount of the monthly payments by reference to the number of years stated in the buy-out election and the length of the contributions payment period; and

(b)

may exercise the functions under this paragraph so as to re-determine the amount of the monthly payments during the contributions payment period.

(3)

Unless the Department re-determines the amount, monthly payments following a gap in service not exceeding 5 years are the same as before the gap.