SCHEDULE 2

Scheme flexibilities
PART 4

Election to buy out the standard reduction
CHAPTER 1

Making a buy-out election

Eligible to make buy-out election
29
1
A member (P) who has a normal pension age over 65 may elect to pay contributions to buy out the standard reduction (“buy-out election”) for a period of up to 3 years.
2
A buy-out election has effect from the day on which the Department accepts the election.
3
A buy-out election ceases to have effect when the earliest of the following occurs—
a
P reaches normal pension age;
b
a retirement pension other than a phased retirement pension becomes payable to P;
c
P revokes the election or is taken to revoke the election.
4
A buy-out election may only be made within 6 months after P enters pensionable service under this scheme.
5
When making a buy-out election, P must be—
a
in pensionable service; and
b
under normal pension age.
6
P may by written notice to the Department vary a buy-out election if P's normal pension age changes before a retirement pension becomes payable to P.

Making a buy-out election
30
1
A buy-out election made by a member (P) must state the number of years in respect of which the standard reduction is to be bought out.
2
A buy-out election must be made by written notice to the Department.
3
The notice of election must specify—
a
if P is in more than one eligible employment, the names of the employers in relation to P’s eligible employments.
b
P's name;
c
P's date of birth;
d
P's normal pension age;
e
the date on which P entered pensionable service;
f
P's annual rate of pensionable earnings for that employment.
4
The Department may ask P to provide further information.

Accepting a buy-out election
31
1
The Department may accept a buy-out election by giving written notice to the person who made the election (P).
2
The notice must state the buy-out value.
3
A buy-out election is accepted when P receives notice that the Department has accepted the election.

Determination of the buy-out value
32
1
The buy-out value is an amount determined by the Department.
2
If an additional pension election or a faster accrual election is subsequently made in respect of a person (P), the Department may—
a
re-determine the buy-out value; and
b
send a written notice to P stating the re-determined buy-out value.
Sch. 2 para. 30(3)(a) substituted (1.4.2015) by The Teachers’ Pensions (Miscellaneous Amendments) Regulations (Northern Ireland) 2015 (S.R. 2015/126), regs. 1, 15
Sch. 2 para. 29(4) modified (1.10.2023) by The Teachers’ Pension Scheme (Remediable Service) Regulations (Northern Ireland) 2023 (S.R. 2023/131), regs. 1, 31(1)