The European Parliamentary (United Kingdom Representatives) Pensions (Amendment) Order 2010

Contributions from salary

4.—(1) Article 5 of the Principal Order is amended as follows.

(2) For paragraphs (2) to (2E)(1) substitute—

“(2) For the purposes of paragraph (1) the appropriate percentage—

(a) in relation to a payment of salary made in respect of a period beginning on or after 1st April 1992 and ending before 5th July 2001, is 6 per cent; or

(b) in relation to a period beginning on or after 5th July 2001 and ending before 1st April 2004—

(i) in respect of all or any part of such period as a Category 1 contributor is 9 per cent; or

(ii) in respect of all or any part of such period as a Category 2 contributor is 6 per cent; or

(c) in relation to a period beginning on or after 1st April 2004 and ending before 14th July 2009—

(i) in respect of all or any part of such period as a Category 1 contributor is 10 per cent; or

(ii) in respect of all or any part of such period as a Category 2 contributor is 6 per cent; or

(d) in relation to any period beginning on or after 14th July 2009—

(i) in respect of all or any part of such period as a Category 1 contributor is 11.9 per cent; or

(ii) in respect of all or any part of such period as a Category 2 contributor is 7.9 per cent; or

(iii) in respect of all or any part of such period as a Category 3 contributor is 5.9 per cent.

(2A) A participant who is an opted-out Representative may exercise the option to select a membership category by giving a qualifying notice to the Managers no later than 1st August 2010.

(2B) In this article a qualifying notice is a notice in a form acceptable to the Managers which—

(a) is in writing;

(b) is signed by the participant to whom it relates (“P”) at a time when P is a participant; and

(c) specifies whether P wishes to make contributions as a Category 1, Category 2 or Category 3 contributor.

(2C) Where a participant exercises the option in paragraph (2A), the effective date of the option is 14th July 2009.

(2D) Where a participant (“P”) does not exercise the option in paragraph (2A)—

(a) if P was a Category 1 contributor immediately before 14th July 2009, P continues as a Category 1 contributor on and after that date; and

(b) if P was a Category 2 contributor immediately before 14th July 2009, P continues as a Category 2 contributor on and after that date.

(2E) Paragraph (2F) applies if, as a result of a participant (“P”) exercising the option in paragraph (2A), the contributions deducted from P’s salary on and after the effective date of the option exceed the sums required to be deducted in respect of P under paragraph (1) on and after the effective date of the option.

(2F) If this paragraph applies in respect of a participant (“P”), as soon as reasonably practicable after receiving P’s qualifying notice, the Managers must—

(a) calculate the difference (“the Excess”) between—

(i) the contributions deducted from P’s salary on and after the effective date of the option; and

(ii) the contributions required to be deducted in respect of P under paragraph (1) on and after the effective date of the option; and

(b) cease deducting contributions from P’s salary under paragraph (1).

(2G) Where the Managers have ceased deducting contributions under paragraph (2F), they must resume deducting contributions when the amount of contributions not deducted as a result of paragraph (2F) is equal to the amount of the Excess.

(2H) If an opted-out Representative ceases to be a participant before the amounts referred to in paragraph (2G) are equal, the Managers must repay the difference to the opted-out Representative.”.

(1)

Paragraphs (2) to (2E) were substituted for paragraph (2) as originally enacted by S.I. 2003/1416. The substituted paragraph (2)(b) was amended by S.I. 2005/1924. The substituted paragraph (2)(c) and the word “; and” immediately preceding it were inserted by S.I. 2005/1924. The substituted paragraph (2A) was substituted again by S.I. 2005/1924.