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

Ill-health pensions

6.—(1) Article 11 of the Principal Order is amended as follows.

(2) For paragraph (2) substitute—

“(2) If on an application under paragraph (1)—

(a) the applicant (“A”) has certified to the Managers in such form as the Managers require that A does not intend to seek re-election to the European Parliament; and

(b) the Managers direct that they are satisfied that—

(i) A’s ceasing to be a Representative is a direct consequence of A’s ill-health;

(ii) A’s ill-health would permanently prevent A from adequately performing the duties of a Representative; and

(iii) A’s ill-health would permanently prevent A from performing any gainful work,

A will, subject to paragraph (16), be entitled to receive an upper-tier ill-health pension as from the time A ceased to be a Representative, payable under article 7 and calculated in accordance with paragraph (4).

(2A) If on an application under paragraph (1)—

(a) the applicant (“A”) has certified to the Managers in such form as the Managers require that A does not intend to seek re-election to the European Parliament; and

(b) the Managers direct that they are satisfied that—

(i) A’s ceasing to be a Representative is a direct consequence of A’s ill-health; and

(ii) A’s ill-health would permanently prevent A from adequately performing the duties of a Representative,

A will, subject to paragraph (16), be entitled to receive a lower-tier ill-health pension as from the time A ceased to be a Representative, payable under article 7 and calculated in accordance with paragraph (5A).”.

(3) For paragraph (3) substitute—

“(3) Where a participant (“P”) would become entitled to make an application under paragraph (1) if, because of ill-health, P were to cease as mentioned in paragraph (1) at a particular date in the future, P may make an application to the Managers before so ceasing, specifying in the application the date when P proposes so to cease.

(3A) Where—

(a) a participant (“P”) makes an application in accordance with paragraph (3); and

(b) the Managers direct that they are satisfied that if, because of ill-health, P ceases as mentioned in paragraph (1) at the time specified in the application, P will be entitled under paragraph (2) or (2A) to receive a pension under article 7 as from that time,

the Managers must give P notice in writing to that effect, specifying under which of paragraphs (2) or (2A) entitlement will arise.”.

(4) For paragraph (4) substitute—

“(4) The annual amount of an upper-tier ill-health pension payable under article 7 to a person (“P”) by virtue of paragraph (2) shall, subject to article 8, be calculated in accordance with article 7(2), (3) and (4) but for the purposes of the calculation P’s aggregate period of reckonable service shall, subject to paragraph (5), be increased by a period equal to the period between P’s ceasing as mentioned in paragraph (1) above and the time when P would attain the age of sixty-five years.”.

(5) After paragraph (5) insert—

“(5A) The annual amount of a lower-tier ill-health pension payable under article 7 to a person by virtue of paragraph (2A) shall, subject to article 8, be calculated in accordance with article 7(2), (3) and (4).”.

(6) In paragraph (6), after “because of ill-health if” insert “he makes an application under this article and”.

(7) In paragraph (7)—

(a) for “retired from gainful work” substitute “permanently ceased to perform gainful work”;

(b) for “an early pension” substitute “early payment of his pension”; and

(c) for “he so retired” substitute “he so ceased to perform gainful work”.

(8) For paragraph (8) substitute—

“(8) If, on an application under paragraph (7)—

(a) the applicant (“A”) has certified to the Managers in such form as the Managers require that A does not intend to seek re-election to the European Parliament; and

(b) the Managers direct that they are satisfied that—

(i) A’s ill-health would permanently prevent A from adequately performing the duties of a Representative; and

(ii) A has permanently ceased to perform gainful work as a direct consequence of A’s ill-health,

A shall, subject to paragraph (16), be entitled to receive a pension under article 7 as from the date of the direction.”.

(9) Omit paragraphs (10) and (10A)(1).

(10) For paragraph (11)(2) substitute—

“(11) In connection with an application made by a person under this article, the Managers must consider—

(a) evidence from a registered medical practitioner that, because of physical or mental impairment—

(i) the applicant is incapable of carrying on the applicant’s occupation; or

(ii) the applicant is incapable of performing any gainful work,

and that the incapacity is likely to be permanent; and

(b) such other evidence as the Managers consider appropriate.”.

(11) In paragraph (12)—

(a) for “medical practitioner” substitute “registered medical practitioner”; and

(b) omit “for the purpose”.

(12) After paragraph (12) insert—

“(13) Where the Managers require the applicant to undergo a medical examination, the Managers may refuse an application if the applicant refuses to undergo the medical examination.

(14) For the purposes of an application under this article, the Managers and the registered medical practitioner, when considering the applicant’s degree of incapacity, may take into account—

(a) the duties of a Representative as specified by the Managers; and

(b) where the applicant is a Representative, the location of the region that the applicant represents.

(15) In considering whether an applicant (“A”) is incapable of carrying on A’s occupation or of performing any gainful work, the Managers may take account of the views of any registered medical practitioner nominated by them as to the impact of any medical treatment that A could undergo.

(16) The Managers may, at such intervals as the Managers determine, review the continued payment of an ill-health pension in payment to a person (“P”) by virtue of this article and may reduce that pension to the extent they consider appropriate or terminate that pension if—

(a) in the case of a pension payable by virtue of paragraph (2) or (8), the Managers are no longer satisfied that P’s ill-health would permanently prevent P from—

(i) adequately performing the duties of a Representative; or

(ii) performing any gainful work; or

(b) in the case of a pension payable by virtue of paragraph (2A), the Managers are no longer satisfied that P’s ill-health would permanently prevent P from adequately performing the duties of a Representative.

(17) A review may not be carried out under paragraph (16) in respect of a person on or after the date on which the person attains the age of sixty-five years.

(18) Where a pension is reduced or terminated under paragraph (16), the pension payable with effect from the date when the reduction or termination applies shall, subject to paragraphs (20) and (22) and article 7(9), be the reduced pension (if any) that the Managers determine should continue to be payable under paragraph (16).

(19) Paragraph (20) applies where—

(a) a person’s pension has been reduced or terminated under paragraph (16); and

(b) that person subsequently fulfils the conditions for payment of a pension by virtue of article 10, including the requirement to apply in writing to the Managers.

(20) Where this paragraph applies, the amount of pension payable from the date of the person’s application under article 10 or, if later, such other date as may be specified in the application must be no less than an amount—

(a) calculated in accordance with article 10 instead of in accordance with this article; and

(b) reduced, in such manner as the Government Actuary determines, to take account of any lump sum received under article 8 at the time of retirement under this article.

(21) Paragraph (22) applies where—

(a) a person’s pension has been reduced or terminated under paragraph (16);

(b) paragraph (20) does not apply; and

(c) the person subsequently fulfils the conditions for payment of a pension under article 7.

(22) Where this paragraph applies, the amount of the pension payable from the date on which the person fulfils the conditions in article 7 must be no less than an amount—

(a) calculated in accordance with article 7, instead of in accordance with this article; and

(b) reduced, in such manner as the Government Actuary determines, to take account of any lump sum received under article 8 at the time of retirement under this article.

(23) For the purposes of this article—

“gainful work” means—

(a)

work from which the person concerned gains the whole or a substantial part of the person’s income (ignoring any income received from investments, trusts or other sources not related to work), being work—

(i)

under a contract of employment;

(ii)

as the holder of an office; or

(iii)

as a self-employed person engaged in a business or profession; or

(b)

work from which the person concerned would obtain such an income if the person had not waived payment in relation to that work,

and the Managers may treat voluntary or unpaid work as gainful work if they consider that the duties of that work are equivalent to employment for which the person concerned could obtain an income; and

“permanent” in relation to a situation or condition means that the situation or condition will continue until the applicant attains the age of sixty-five years.”.

(1)

Paragraph (10A) was inserted by S.I. 2006/919.

(2)

Paragraph (11) was substituted by S.I. 2006/919.