Regulation 73
1.—(1) The annual rate of age retirement pension payable to the member (M) is found by—
(a)taking the amount of full retirement earned pension specified in the M's pensioner member's account;
(b)subtracting the conversion amount (if any) specified in that account in relation to that amount;
(c)subtracting the allocation amount (if any) specified in that account in relation to that amount;
(d)adding the amount of full retirement additional pension (if any) specified in that account;
(e)subtracting the conversion amount (if any) specified in that account in relation to that amount; and
(f)subtracting the allocation amount (if any) specified in that account in relation to that amount.
(2) In calculating the pension under this paragraph the scheme manager must take account of—
(a)any buy-out election under Chapter 3 of Part 4;
(b)the scheme years that fall within the buy-out period (see regulation 44(6)); and
(c)in relation to each such scheme year, the number of years in respect of which the actuarial reduction is bought out.
2.—(1) The late payment actuarial increase must be calculated in relation to so much of the amount of pension to which the member would otherwise be entitled under paragraph 1(1)(a) and (d) as is attributable to—
(a)all of the member's pensionable service; and
(b)any contributions paid under regulation 59.
(2) The amount of late payment actuarial increase must be calculated in accordance with guidance and tables provided by the scheme actuary to the scheme manager for the purposes of this regulation.
(3) In preparing that guidance and those tables the scheme actuary must use such factors as the scheme actuary considers appropriate having regard, in particular, to—
(a)the period after reaching normal pension age before the member becomes entitled to payment of the pension; and
(b)the life expectancy of the member.
(4) In calculating the amount of actuarial increase under sub-paragraph (2), the scheme manager must take account of—
(a)any buy-out election under Chapter 3 of Part 4;
(b)the scheme years that fall within the buy-out period (see regulation 44(6)); and
(c)in relation to each such scheme year, the number of years in respect of which the actuarial reduction is bought out.
3.—(1) Subject to sub-paragraphs (2) and (3), an application under regulation 76 must—
(a)be in writing in such form as the scheme manager may require;
(b)be made—
(i)when the member applies under paragraph 4 of Schedule 3 for payment of the pension; or
(ii)before such later time as the scheme manager specifies in writing; and
(c)specify—
(i)the amount of the lump sum which the member wishes to receive (which must be a multiple of £12); or
(ii)the conversion amount (which must be a whole number of pounds and a multiple of 12).
(2) If the pension is an ill-health pension under regulation 89, an application under regulation 76 must be made—
(a)at the time of claiming that ill-health pension; or
(b)before such later time as the scheme manager specifies in writing.
(3) If the pension is an ill-health pension at Upper Tier paid in substitution for an ill-health pension at Lower Tier by virtue of regulation 92(5) an application under regulation 76—
(a)may only be made in relation to the difference between those pensions; and
(b)must be made—
(i)at the time the member become aware of the determination under regulation 92(5); or
(ii)before such later time as the scheme manager specifies in writing.
(4) A member must not exchange pension for a lump sum under regulation 76 to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension schemes etc) of the 2004 Act (see section 241 of that Act).
4.—(1) The scheme manager must not pay a member a lump sum under regulation 77 unless the member declares in writing that, on payment of the lump sum, paragraph 3A of Schedule 29 to the 2004 Act M1 would not apply.
(2) The declaration must be—
(a)signed by the member;
(b)in a form specified by the scheme manager; and
(c)provided by a date determined by the scheme manager.
Marginal Citations
M1Paragraph 3A of Schedule 29 was inserted by section 159 of the Finance Act 2006 (c.25).
5. If the member has a guaranteed minimum under section 14 of the 1993 Act in relation to the whole or part of a pension, regulation 76 only applies to so much of the pension as exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member's description in tables provided to the scheme manager by the scheme actuary.
6.—(1) The annual rate of early retirement pension payable to the member (M) is found by—
(a)taking the amount of full retirement earned pension specified in M's pensioner member's account;
(b)applying the actuarial adjustment (if any) specified in that account in relation to that amount;
(c)subtracting the conversion amount (if any) specified in that account in relation to that amount;
(d)subtracting the allocation amount (if any) specified in that account in relation to that amount;
(e)adding the amount of full retirement additional pension (if any) specified in that account;
(f)applying the actuarial adjustment (if any) specified in that account in relation to that amount; and
(g)subtracting the conversion amount (if any) specified in that account in relation to that amount.
(2) For the purposes of sub-paragraph (1)(b), the actuarial reduction must take account of—
(a)any buy-out election under Chapter 3 of Part 4;
(b)the scheme years that fall within the buy-out period (see regulation 44(6)); and
(c)in relation to each such scheme year, the number of years in respect of which the actuarial reduction is bought out.
7.—(1) The annual rate of premature retirement pension payable to the member (M) is found by—
(a)taking the amount of full retirement earned pension specified in M's pensioner member's account;
(b)applying the actuarial reduction (if any) specified in that account in relation to that amount;
(c)subtracting the conversion amount (if any) specified in that account in relation to that amount;
(d)subtracting the allocation amount (if any) specified in that account in relation to that account;
(e)adding the amount of full retirement additional pension (if any) specified in that account;
(f)applying the actuarial reduction (if any) specified in that account in relation to that amount; and
(g)subtracting the conversion amount (if any) specified in that account in relation to that amount.
(2) For the purposes of sub-paragraph (1)(b), the actuarial reduction must take account of—
(a)any buy-out election under Chapter 3 of Part 4;
(b)the scheme years that fall within the buy-out period (see regulation 44(6)); and
(c)in relation to each such scheme year, the number of years in respect of which the actuarial reduction is bought out.