The Postal Services Act 2011 (Transfer of Accrued Pension Rights) Order 2012

Children’s pensions

This section has no associated Explanatory Memorandum

14.—(1) There shall be paid in respect of the Children of a Member who dies after the Cut-Off Date an annual pension of the following proportions of the pension or the deferred pension (both RMSPS NRA60 Pension and RMSPS NRA65 Pension) that Member was receiving or, in the case of a deferred pension, would have been entitled to receive at that date had the pension then come into payment without the reduction set out in Rule 3(9)—

(a)where the Member dies after the Cut-Off Date and a pension is paid under Rule 11 (Spouse’s pension) (and, if applicable, Rule 12 (Spouse’s pension for Relevant Members)) or Rule 15 (Dependants’ pensions)—

  • 1 Child              ⅓ of the Member’s pension

  • 2 or more Children    ⅔ of the Member’s pension,

(b)where the Member dies after the Cut-Off Date and either no pension is paid under Rule 11 (Spouse’s pension) (and, if applicable, Rule 12 (Spouse’s pension for Relevant Members)) or Rule 15 (Dependant’s pensions) or a pension ceases to be paid under either of those Rules—

  • 1 Child              4/9 of the Member’s pension

  • 2 or more Children    8/9 of the Member’s pension,

provided that—

(i)for the purposes of this sub-paragraph (1) no account shall be taken of any person in categories (d), (e) or (f) of the definition of “Child” who in the opinion of the Secretary of State was not wholly or mainly dependent on the Member at the date of that Member’s retirement or earlier death;

(ii)the pension payable under this sub-paragraph (1) shall be calculated without regard to any surrender of part of the Member’s pension under Rule 16 (Surrender of part pension to provide for a spouse or other Dependant), inclusive of any amount that the Member was entitled to as a result of the exercise of the conversion option under Rule 17 (Conversion of lump sum into pension), and disregarding any exercise of the commutation option in Rule 18 (Commutation of pension);

(iii)in any circumstances which the Secretary of State considers appropriate he may pay the higher level of pension where a pension is paid under Rule 11 (Spouse’s pension) (and, if applicable, Rule 12 (Spouse’s pension for Relevant Members)) or Rule 15 (Dependants’ pensions), subject to the limits in Part IX (Overriding Finance Act Provisions) of this Schedule; and

(iv)should the payment of a pension to a Child under this sub-paragraph (1) constitute an unauthorised payment for the purposes of the Finance Act 2004, the Secretary of State has discretion not to pay that pension in accordance with Paragraph 3(a) of Part IX (Overriding Finance Act Provisions) of this Schedule.

(2) The annual rate of a children’s pension while—

(a)there is only one eligible Child, shall be initially not less than £173.33 per annum and thereafter subject only to increases under Rule 19 (Pensions Increases); and

(b)there are two or more eligible Children, shall be initially not less than £260 per annum and thereafter subject only to increases under Rule 19 (Pensions Increases).

(3) Subject to Part IX (Overriding Finance Act Provisions) of this Schedule, a Child of a deceased Member who, at the date of death of the Member, is incapable of self support by reason of bodily or mental infirmity may at the discretion of the Secretary of State either receive or continue to receive (as the case may be) a Child’s pension for as long as the Secretary of State may determine unless the Child is receiving a dependant’s pension under Rule 15 (Dependants’ pensions). For the purposes of this sub-paragraph only, the age limits specified in the definition of “Children” shall not apply.

(4) Where there are two or more eligible Children, the Secretary of State may at his discretion either pay any pension under this Rule equally between the Children or pay any pension in such shares to such Children as he determines.