PART 3

The past service scheme

Contracted-out employment

Guaranteed minimum pension
27
1
This section overrides the preceding provisions of this Part (other than section 26) in so far as they would apply to service by a member of the past service scheme in employment which was contracted-out by reference to the scheme.
2
If the member has a guaranteed minimum under section 14 of the Pension Schemes Act 1993 in respect of the contracted-out service, the weekly rate of the pension in respect of that service must—
a
on the date on which the member reaches the state pensionable age, be at least the member’s guaranteed minimum;
b
if the member dies leaving a surviving spouse or civil partner, be at least half that guaranteed minimum.
3
If the member has not performed a qualifying period of pensionable service, the weekly rate of the pension in respect of the contracted-out service is—
a
on the date on which the member reaches the state pensionable age, equal to the member’s guaranteed minimum;
b
if the member dies leaving a spouse or civil partner, equal to half that guaranteed minimum.
4
“Weekly rate”, in relation to a pension paid otherwise than at weekly intervals, means a rate equivalent to the guaranteed minimum of the member in question, with regard being had to the period in respect of which the pension is paid.
5
A reference to a member’s guaranteed minimum, so far as attributable to earnings after 5 April 1988, is a reference to that minimum as increased in accordance with Chapter 2 of Part 5 of the Pension Schemes Act 1993.