Design
8Types of scheme
(1)
Scheme regulations may establish a scheme under section 1 as—
(a)
a defined benefits scheme,
(b)
a defined contributions scheme, or
(c)
a scheme of any other description.
(2)
A scheme under section 1 which is a defined benefits scheme must be—
(a)
a career average revalued earnings scheme, or
(b)
a defined benefits scheme of such other description as Treasury regulations may specify.
(3)
Treasury regulations may not specify a final salary scheme under subsection (2)(b).
(4)
A scheme under section 1 is a “career average revalued earnings scheme” if—
(a)
the pension payable to or in respect of a person, so far as it is based on the person's pensionable service, is determined by reference to the person's pensionable earnings in each year of pensionable service, and
(b)
those earnings, or a proportion of those earnings accrued as a pension, are under the scheme revalued each year until the person leaves pensionable service.
F1(4A)
The extent to which a scheme under section 1 is a career average revalued earnings scheme is not affected by provision contained in scheme regulations that is made under section 78 of PSPJOA 2022 (local government schemes: power to pay final salary benefits).
(5)
Treasury regulations under this section are subject to the negative Commons procedure.