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SCHEDULE 2Scheme flexibilities

PART 2Additional pension election

CHAPTER 2Amount of additional pension contributions

Determination of contributions payable

11.—(1) The scheme manager must determine the amount to be paid as a lump sum or as a monthly payment.

(2) The amount of the lump sum or monthly payment must reflect the cost of paying an additional (self only) pension and any additional (surviving adult) pension.

(3) The scheme manager may determine different amounts of lump sum or monthly payment—

(a)for different classes or descriptions of member; and

(b)depending on whether the additional pension election is for—

(i)an additional (self only) pension; or

(ii)an additional (self only) pension and an additional (surviving adult) pension.

(4) The scheme manager—

(a)may determine the amount of a monthly payment by reference to the length of the contributions payment period; and

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

(5) Unless the scheme manager re-determines the amount, monthly payments following a gap in service during which an ill health pension was payable are the same as before the gap.