30 April 2009
Universities Superannuation Scheme
New Rules of Universities Superannuation Scheme
Copyright: Pendragon
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Copyright: Universities Superannuation Scheme 2009
THIS DEED is made on 1 May 2009
BY UNIVERSITIES SUPERANNUATION SCHEME LIMITED (a company registered in England under company number 1167127) whose registered office is at Royal Liver Building, Liverpool L3 1PY
BY UNIVERSITIES SUPERANNUATION SCHEME LIMITED (a company registered in England under company number 1167127) whose registered office is at Royal Liver Building, Liverpool L3 1PY
Background
Operating Provisions
In accordance with rule 21 of the Former Rules, the Trustee Company, with the consents of the Joint Negotiating Committee and of the Funding Councils, adopts the following rules contained in this deed, to replace the Former Rules in their entirety, with effect from 1 May 2009, which is the "Effective Date" as defined in sub-rule 1.1 below, in accordance with the terms of the following rules:
In accordance with rule 21 of the Former Rules, the Trustee Company, with the consents of the Joint Negotiating Committee and of the Funding Councils, adopts the following rules contained in this deed, to replace the Former Rules in their entirety, with effect from 1 May 2009, which is the "Effective Date" as defined in sub-rule 1.1 below, in accordance with the terms of the following rules:
New Rules of Universities Superannuation Scheme
1
Definitions
1.1
Except where the context otherwise requires, the following expressions
shall have the following meanings and shall be shown in italics throughout
these rules:
together with any increases, on those of the above benefits which are
pension benefits (whether currently or prospectively payable), which are awarded
by the trustee company under sub-rule 15.4 (Pension Increases).
Ed. Note:
Please note that for editorial purposes, defined terms will appear as
non-italicised pink text on Perspective.
"1989 Act Member" means
any member or former member who joined or rejoined the scheme after 31 May 1989, excluding an individual who with the consent
of HMRC has been treated as
a pre-1989 Act member. A
person who as a pre-1989 Act member elected to become a 1989 Act
member with effect from 1 June 1989 under section 17 (Inland Revenue limits) of the rules which governed
the scheme immediately before
the effective date is included
as a 1989 Act member.
"ABS" (Alternative benefits
service) means a period of eligible
employment after 5 April 1988 in respect of which alternative benefits accrue, except that:
(a)
where an eligible employee is a member in respect
of more than one employment, and is in contracted-out employment by reference to the scheme, that individual will be in ABS only in relation to the employment in respect of which alternative benefits accrue; and
(b)
where a person is in eligible
employment, and is a member of FSSU or belongs to a pension
scheme to which either of sub-rules 42.2.4 or 42.2.5 applies in respect of an eligible employment; or would be in eligible employment but for being ineligible for membership under sub-rule
5.2 (Maximum entry age and excluded cases); then alternative benefits shall not be treated as accruing to that person
in respect of that eligible employment.
"Accepted Employee" means
an excluded post employee whom
the trustee company has consented
to treat as an eligible employee under sub-rule 5.6 (Excluded
post employees).
"Accounting Date" means
31 March in each year, or such other date as the trustee company may decide.
"Active Member" means
a member who is an eligible employee and who is either contributing to the fund under rule 6 (Member
contributions) or who is exempted or excluded from paying contributions under rule 9 (Continuation contributions)
or rule 10 (Late retirement)
or is a member in respect
of whom contributions are being made under sub-rule 40.3.2 (Contributions during maternity, paternity
and adoption leave) or 38.1 (Salary sacrifice).
"Active Membership" means
the period of membership of
an active member, excluding
any period during which membership is suspended.
"Actuary" means the Fellow
of the Institute of Actuaries or Fellow of the Faculty of Actuaries in Scotland
who is appointed by the trustee
company to advise either generally or in any particular case.
"Additional Pensionable Service" means in relation to a member who has 5 or more years' pensionable service (calculated without applying the part-time service fraction for this purpose), for the purposes of calculating
an enhanced incapacity pension,
notional additional pensionable
service of the lesser of (a) and (b) below:
(a)
the number of additional years' service which
the member would have accrued
if eligible employment had
continued from retirement until
the earlier of normal retirement
age and the date when the member's pensionable service amounts in aggregate to 40 years; and
(b)
the following number of years' additional pensionable service:
(i)
if the member has 5
or more, but less than 10, years' pensionable service (calculated without applying the part-time service fraction for this purpose), the number of years' pensionable service at retirement; or
(ii)
if the member has 10
or more, but less than 20, years' pensionable service (calculated without applying the part-time service fraction for this purpose), the greater of:
(A)
20 years minus the number of years' pensionable service (calculated without applying the part-time service fraction for this purpose); and
(B)
6 years and 243 days; or
"Allocation" means the
surrender by any person under rule 28 of part of that person's pension out of the fund.
"Alternative Benefits" means
either:
(a)
additional pension under section 44 of the Social Security Contributions and Benefits Act 1992;
or
(b)
benefits under an appropriate personal pension scheme which meets the
requirements of section 9(5) of
PSA 93.
Where an eligible employee is not in contracted-out
employment, having opted not to be a member or having withdrawn from membership, and is not liable to pay any primary Class 1 National Insurance
Contributions, or is liable to pay them only at the reduced rate, alternative benefits shall be deemed to accrue.
"Appropriate Period" means,
in relation to a period of temporary absence under sub-rule 39.2 (Voluntary absence and secondment), such
period as the employer and
the trustee company may agree,
not exceeding such period during which either the member retains an express statutory right to return to work for the employer, or the employer retains a definite expectation that the member will return, or would do so but for circumstances beyond the
control of both member and employer, subject to the following
maxima:
(a)
if the period of absence is to enable the member to undergo full-time education connected with the employment,
or to be seconded to another employer, up to 10 years or such longer period
as the trustee company may
agree; or
(b)
in any other case other than absence to enable the member to take up work of national importance, one year or such longer
period as the trustee company may
agree.
The employer shall promptly
notify the trustee company in
writing of the date when the voluntary absence or secondment ends.
In the case of a VTE,
subject to (a) and (b) above, the period shall end on the first of the following
to occur:
(c)
taking the last date on which salary was payable before the absence, the second accounting date after that date;
"Associated Employer" means,
in relation to 2 or more employers, each such employer, if one is under the control of the other or others,
or both or all are under the control of a third party.
"Auditor's Certificate" means
a certificate from the institution's auditors (in a form specified by the trustee company) as to the completeness and accuracy of information
provided to the trustee company.
"Authorised Maximum" means,
in relation to any lump sum benefit payable to a member, former member or ex-spouse participant, in connection
with that individual becoming entitled to a pension under the scheme, the lowest of:
(a)
the available portion of that individual's lump sum allowance (as defined
in paragraph 2 of Schedule
29 of FA 04) immediately before becoming entitled to that lump sum
benefit;
(b)
the applicable amount as defined in paragraph 3 of Schedule 29 of FA 04; and
(c)
25% of the aggregate value of such lump sum and pension under the scheme, as determined by the trustee company on actuarial advice.
"AVC Provider" means
a fund manager under section
34(3) of PA 95 with which the trustee company invests MPAVCs.
"Beneficiary" means,
in relation to a person, either:
(a)
that person's spouse or civil
partner; or
(b)
any other individual nominated by that person who would in the opinion
of the trustee company be
(or have been) a dependant of
that person, but excluding any one who would be (or have been) an eligible child by virtue only of paragraphs (a) and (b)(i) of the definition
of eligible child.
In the case of an individual who was the spouse or civil partner of that person when that person first became entitled
to receipt of a pension under the scheme, that individual shall remain a dependant, for the purposes of this definition, even if the marriage
or civil partnership has subsequently
been dissolved or annulled.
"Benefits in Kind" means,
where the employer with the
consent of the trustee company so
determines, an amount of salary derived from benefits in kind, excluding such benefits as are within
paragraph (b)(i) of the definition of salary, which either:
(a)
where the benefits are assessable to income tax as employment income,
shall be computed under Part 3 of
ITEPA; or
(b)
where the benefits are not assessable to income tax as employment income,
shall be determined by the trustee
company with the consent of the employer and the member.
"Calculation Date" means,
in relation to a VT employment,
the relevant date or, in
relation to salary for any
period before the scheme year in
which the relevant date falls,
the accounting date.
"Civil Partner" has the
meaning given in the Civil Partnership
Act 2004 and "civil partnership" has a corresponding meaning.
"Comparable Scheme" means,
in relation to a member, either:
(a)
an occupational pension scheme;
(b)
a relevant statutory scheme within the meaning of the tax code; or
"Compound Interest" means
interest calculated with yearly rests (or such shorter rests as the trustee company may decide) on
the amount of principal and interest accrued at the commencement of the year
(or other shorter period), with no interest being allowed on any addition
to principal or accruing interest since the commencement of that year or period.
"Contracted-out Employment",
in relation to an eligible employee, has the meaning given by section 8 of PSA 93.
"Contracted-out Scheme" means
a scheme by reference to which an employer holds, or is named in a schedule to, a contracting-out certificate
under Part 3 of PSA 93 covering
the member's employment.
"Control", in relation
to a company or an unincorporated association, has the same meaning as in section 416 of the Taxes Act for
the purposes of Part 11 of that
Act, except that in relation to associated employers of a company other than a close company, it shall
have the same meaning as in section
840 of the Taxes Act. In relation to a partnership, it has the meaning
in section 840 of the Taxes Act. In relation to rule 41 (Admission of institutions) and the definition of institution, it includes such other governance or ownership arrangements
within sub-paragraphs (i) or (ii) of paragraph (c) of that definition as the trustee company, after consultation
with institutions within those
sub-paragraphs, may decide prior to the admission of that body to participate
in the scheme. Control shall have a corresponding meaning in these rules when used as a verb.
"Conversion Rate" means
the amount of additional pensionable
service or additional benefits to be credited to or in respect of a member or former member for each £1,000 of the member's fund of that person that is to be transferred to the main section of the fund under an election under rule 35.10 (Transfer for defined benefits).
"Co-opted Director" means
an individual co-opted to membership of the board in accordance with the articles of association of the trustee company.
"CPA" (Contractual pension
age) means, in relation to a CPA
member, the earliest of the ages (on or after age 60 and before age
65) at which, immediately prior to the termination of that individual's pensionable service, that individual
had the express or implied right to retire on an immediate pension either:
(a)
under the terms of the last contract of employment or terms of appointment
applicable to the individual's latest employment as an active member in respect of which the individual accrued pensionable service; or
(b)
in respect of a former member entitled to preserved benefits under sub-rules 30.4.1 or 30.5.3
[See 2nd reference]
(Multiple appointments), or sub-rule 37.2 (Deferred pensioner
rejoining), or any similar or corresponding provision of the rules, or of the previous rules of the scheme in force at the date when the former member ceased membership, under the terms of the last contract of employment or terms of appointment
applicable to the individual's last employment as an active member, from which the individual accrued any pensionable service that does not fall to be aggregated with any pensionable service that accrued
from subsequent active membership.
"CPA Member" means an active member, former member or pensioner
member who is within one or more of the following categories:
(a)
a male active member with pensionable service prior to 17
May 1990 who on ceasing the employment in respect of which the CPA applies will have a CPA of less than 65;
(b)
an active member with pensionable service after 31 March
1995 who on ceasing the employment in respect of which the CPA applies will have a CPA of less than 63 years and 6 months;
(c)
a former member with
prior periods of pensionable service and one or more CPAs,
whose benefits have not yet been brought into payment under the rules or under the previous rules of the scheme in force at the date when the former member ceased the employment in respect of which the CPA applies;
(d)
a pensioner member who
was a former member with prior
periods of pensionable service and
one or more CPAs, whose benefits
have been brought into payment under the rules or under the previous rules of the scheme in force at the date when the pensioner member ceased the employment in respect of which the CPA applies; or
(e)
a former member with
prior periods of pensionable service and one or more CPAs who
has exercised the former member's statutory right, or right under the scheme, to take a transfer payment of the former member's accrued past service rights under the scheme to a transfer arrangement, where the amount of the transfer value was calculated on the assumption
of a normal pension age of
more than 60 (whether or not the benefits attributable to those rights have
yet been brought into payment).
"Deferred Pensioner" means
a former member who is (or
was immediately prior to death) entitled under the scheme to benefits which have not yet come into payment, or a person
to whom paragraph D of sub-rule
20.1, or sub-rule
30.4.1 applies, notwithstanding that that person has not ceased to
be a member.
"Dependant" means, in
relation to a person, an individual (whether or not a relative) who in the opinion of the trustee company is at the time of the death of that person wholly or
partly either:
(a)
financially dependent on that person; or
(b)
dependent on that person because of any physical or mental disability.
"Discretionary Trusts" means,
in relation to any sum directed to be held on such trusts in respect of a
deceased individual, the trusts, powers and provisions set out below:
(a)
the trustee company may
pay or apply the whole or any part of that sum to or for the benefit of all
or any of the relatives, dependants, personal representatives
or nominated beneficiaries of
the deceased individual in such shares and proportions as the trustee company may decide;
(b)
if the deceased leaves no relative or dependant,
the trustee company may elect
to retain all or any part of the sum in the fund;
(c)
the trustee company may
declare in respect of the sum or any part of it such separate trusts, terms
and limitations (including for maintenance, education, advancement and accumulation
of income during a minority) as the trustee company may by deed appoint without infringing the rule against
perpetuities; the trustee company may appoint as trustees of such trusts any 2 or more persons or a
trust corporation and may provide for the remuneration of any such trustee;
(d)
to the extent that the trustee
company does not exercise the powers under paragraphs (a) and (c) within
2 years of the death of the individual, the trustee company shall hold that sum outside the fund upon trust for the personal representatives of that individual
or, if there are none, the statutory next of kin of that individual; and
(e)
the trustee company may
have regard to any document signed by the individual expressing wishes as
to the disposal to or for the benefit of nominated beneficiaries of any sum to be held upon the discretionary trusts.
"Dispute Resolution Function" means
the functions and powers delegated to the advisory committee by the board in connection with dispute resolution arrangements made under section 50 of PA 95, which may
include any or all powers and duties of the trustee company under that section.
"Earnings Cap" means,
in relation to any year commencing 6 April or to any relevant date falling within that year, such amount as was specified
for that year in or under section
590C of the Taxes Act.
"Eligible Child" means,
in relation to a person, an individual who:
(a)
is a lawful or legally adopted child, alive or unborn at the death of
that person, or is (or would have been if born before that person died) a dependant who is a stepchild or natural child, or is a dependant accepted by the person as a member of the family; and
(b)
falls within one or more of the following sub-paragraphs:
(i)
is under age 18 or is receiving full-time education or undergoing full-time
training approved by the trustee
company;
(ii)
at the death of that person or on ceasing to qualify under (i) above,
is physically or mentally incapable of being self-supporting; or
(iii)
having qualified under (ii) above, but having ceased to do so by becoming
able to carry on remunerative employment so as to be self-supporting, is again,
within 2 years or such reasonable longer period as the trustee company may decide, incapable of being self-supporting by reason
of the same physical or mental incapacity as fell within (ii) above.
An eligible child to
whom sub-paragraph (b)(ii) applies shall remain an eligible child until the physical or mental incapacity ceases and shall
not become an eligible child again
unless (b)(iii) above applies.
"Eligible Employment" means
employment as an eligible employee or, in relation to any period before 7 February 1994, employment as
an "Employee" as defined in Rule 1 of the rules of the scheme in force at that time.
"Employer" means an institution participating in the scheme, and means, in relation
to:
(a)
an eligible employee,
the employer or prospective employer;
(b)
a member, the employer,
or each employer if the person has more than one concurrent employment; and
(c)
a former member, the
last institution (or each
of the last institutions if
that person had more than one employment terminating concurrently) to have
employed that person as a member.
"Excluded Post Employee" means
an employee of an institution who
is in an office, post or employment, or category of employment, which the institution has declared to be non-pensionable
under sub-rule 5.6.
"Ex-Spouse" means a former
spouse or former civil partner of
a member or former member to whom pension
credit rights have been or are to be credited.
"Fails to Return to Work" means,
in relation to a member who,
having commenced MPA leave,
subsequently either:
(b)
fails to return to work either:
(2)
(where applicable) immediately after the end of the member's additional maternity leave or additional adoption leave as
defined under section 73 and section 75B of ERA; or
(3)
immediately after the end of such longer period as the member is contractually or statutorily entitled to be absent from work
pursuant to Part 8 of ERA.
"Fluctuating Remuneration" means,
where the employer with the
consent of the trustee company so
determines, an amount of salary derived from remuneration which varies in amount over time, including benefits in kind, but excluding
remuneration in respect of a period before 6 April 2006 unless it was assessable
for that period to income tax as employment income or fell within the category
of remuneration which HMRC generally
consented to being included in salary before 6 April 2006.
"FSAVC Scheme" (Free
standing additional voluntary contributions scheme) means a scheme which was
a retirement benefits scheme within the meaning that expression had under section 611 of the Taxes Act whilst
that section was in force prior to 6 April 2006:
(a)
to which a member has
made additional voluntary contributions;
(b)
to which the employer did
not contribute; and
(c)
which was approved under section 591 of the Taxes Act before 6 April 2006.
"FSSU Member" means a
person who was an employee of an institution before 1 April 1975 and who was subject to an FSSU agreement until the date of joining the scheme.
"Fund" means the fund
constituted by rule 3 comprising
the main section and the supplementary section.
"Funding Council" means
whichever of the Higher Education Funding Council for England ("HEFCE"), the Higher Education Funding Council for Wales and the Scottish
Further and Higher Education Funding Council may make grants to the particular institution, or, if none of them
may do so, HEFCE, and "Funding Councils" means all of those councils collectively.
"GMP" (Guaranteed Minimum
Pension) means a guaranteed minimum pension payable under the scheme in accordance with PSA 93.
"Greater Appointment" means,
in relation to an individual with 2 or more appointments, the appointment
carrying the highest salary;
where 2 or more salaries are
equal, the member shall elect
which appointment to treat as the greater.
"Gross", in relation
to any category of a member's remuneration,
means the full amount of remuneration in that category which the member would have been entitled to receive, but for absence from work
and but for any deductions permitted under section 13 of the ERA and but for any other deduction which
would have been so permitted if Part 2 of the ERA had applied where the member worked.
"Health Service Scheme" means
any of the schemes governed by section
10 of the Superannuation Act 1972.
"Health Service Transfer Agreement" means such of the following as applies to a member's employer:
(a)
the agreement dated 1 March 1995 between the Secretary of State for
Health and the trustee company relating
to the transfer of employees to institutions from nurse training establishments and Colleges of Health;
(b)
the agreement dated 1 July 1996 between the Secretary of State for Scotland
and the trustee company relating
to the transfer of employees to institutions from Colleges of Nursing and Midwifery Education;
(c)
the agreement dated 1 September 1997 between the Department for Health
and Social Services for Northern Ireland and the trustee company relating to the transfer of employees to institutions from Colleges of Nursing and Midwifery Education.
"Incapacity Qualifying Employment" means an individual's employment with either:
(a)
a university domiciled in the United Kingdom;
(b)
a higher education corporation within the meaning of section 123 of
the Education Reform Act 1988;
(c)
an institution designated under section 44 of the Further and Higher
Education (Scotland) Act 1992; or
(d)
a comparable body in Northern Ireland,
where in each case all periods of that individual's active membership after first ceasing after 10 December 1999 to be
a member of a comparable scheme would
have been pensionable service within the meaning of PSA 93 for the purposes of that scheme.
"Institution" means a
body, whether incorporated or not, which:
(a)
is resident in the United Kingdom; and
(c)
is either:
(i)
a university or university college or higher education institution (as
defined in section 65(5) of the Further and Higher Education Act 1992) or
an institution designated under section 44 of the Further and Higher Education
(Scotland) Act 1992;
(ii)
any other body which is established for the purpose of higher education
or research and not for profit; or
(iii)
any body which is under the control of one or more employers falling under (i) or (ii) above and which is established to, and does,
carry on any activities which in the opinion of the trustee company are both conducted for the benefit, and materially
support the primary objects, of each of those employers; and
(d)
has fulfilled the requirements of rule 41 (Admission of institutions).
"Investment" means any
investment permitted under sub-rule 35.3 (Money purchase AVCs) concluded by the trustee company with an AVC
provider to provide benefits in respect of MPAVCs.
"Investment Committee" means
the sub-committee of the board of
the trustee company referred
to in rule 63.
"KIT Days" (Keeping in
touch days) means any days to which any of sections 71(3)(c), 73(3)(b), 75A(2A) and 75B(3)(b) of ERA applies.
"Known Medical Condition" means,
in relation to a member who
last became an active member 2
or more, but less than 5 years ago (with each appointment to which active membership relates being considered separately for these purposes),
a medical condition, which was known to the member or the employer when
the member last became an active member, as a result of which
the member retires or ceases the eligible
employment. A medical condition will be excluded from this definition
if both:
(a)
the member or the employer notified the trustee company in writing of the condition before or at the time of
(or within what the trustee company determined to be a reasonable period after) the date the active membership last commenced; and
(b)
the trustee company determined
at that time that it was not likely to cause the member to retire or
cease eligible employment on
the grounds of incapacity in
the 5 years from the date when the member last commenced active
membership, provided that the member shall have the right to require the trustee company to make such a determination on the member joining the scheme or taking up additional employment (or within a reasonable period
thereafter), if the member meets
the reasonable expenses of the trustee company in obtaining a medical opinion.
"Land" means any interest
derived from or connected with land, including an undivided share in land
and any mining or mineral rights, whether developed or not and whether income
producing or not, including (without limitation) buildings, structures and
fixtures erected on land, any excavations and works of all kinds, and the
shares and securities of any body corporate established solely for the purpose
of acquiring and holding any such interest.
"Lesser Appointment" means,
in relation to an individual with 2 or more appointments, the appointment
carrying the lower salary or,
where 2 or more salaries are
equal, the appointment which the member elects to be treated as the lower.
"Local Government Scheme" means
the Local Government Pension Scheme, or a scheme within that scheme.
"Long Service Benefits" means
the benefits which would fall to be paid to or in respect of a member if the member remained
in service until and retired on attaining normal pension age.
"Lump Sum AVCs" means added years AVCs which are payable,
as agreed by the member with
the trustee company, otherwise
than by regular instalments.
"Main Section" means
the balance of the fund after
deducting the amount attributable to the supplementary section.
"MAM" (Multiple appointment
member) means a member who
holds 2 or more separate eligible
employments, whether with the same institution or not, to which sub-rule 32.11 (Concurrent Variable Time and non-Variable Time employment)
does not apply.
"Material Break" means
a break, which is material in the trustee company's opinion, between periods of active membership and/or membership of a comparable scheme.
"Maximum Contribution" means
maximum total added years AVCs of
15% of the member's salary in any reference period.
"Medical Opinion" means
an opinion on the available evidence and on the balance of probabilities which
is received by the trustee company from one or more of the registered medical practitioners (or other
medical advisers determined by the trustee company to be suitably qualified) who are appointed by the trustee company.
"Member" means:
(a)
an eligible employee who
is a member of the scheme in
accordance with rule 5 (Terms
of entry); or
(b)
an individual who immediately before the effective date was a member of the scheme by virtue of its rules then in force, who would have remained
so on the effective date had
those rules not been superseded,
and who has in either case not withdrawn under rule 36 in respect of all eligible employments, and "Membership" has a corresponding meaning.
"Member's Fund" means
the amount payable to or in respect of a member or former member under
any investment on any date
on which any benefit commences to be payable, excluding any lump sum life
assurance benefit.
"MHO" (Mental health
officer) in relation to a member, has the meaning given in a health service transfer agreement.
"Minimum Pension Age" means,
in relation to any member, former member or ex-spouse participant, age 55 or such lower age at which a pension
may be paid to that person in accordance with the pension rules under section 165 of FA 04 without the
ill-health condition under paragraph 1 of Schedule 28 to that Act being satisfied.
"MPA Leave" (Maternity,
paternity and adoption leave) means any period for which a member is entitled to be absent from eligible employment because of pregnancy, childbirth or adoption including
any period during which such a member receives statutory maternity, paternity or adoption pay from the employer or is exercising statutory
rights under Part 8 of the ERA (other than parental leave), or any other period to which rule 40 is applied by sub-rule 40.1, for which in either case that member is entitled to be absent because of pregnancy, childbirth or
adoption, or any period immediately after such period during which the member is exercising a statutory
right to parental leave.
"MPAVC Fund" (Money
purchase AVC fund) comprises, so far as not expended in providing benefits:
(a)
all MPAVCs;
(b)
assets transferred into the scheme in respect of the member derived from voluntary contributions paid by that member to secure additional benefits on a money purchase basis; and
(c)
all investments representing (a) and (b) above and the income on them.
"Nominated Beneficiary" means
any individual or corporation named in a signed expression of wish relating
to the disposal of any sum to be held upon the discretionary trusts, as referred to in paragraph (e) of the definition
of "
discretionary trusts
",
who is neither a relative nor
a dependant of the individual
expressing the wish.
"Non-Discrimination Guarantee" means a guarantee given by an institution to the trustee
company in relation to an employee or class of employees on terms that:
(a)
The institution guarantees
that the inclusion of those employees as members will not give rise to any breach of sections 62 to 64 of PA 95, or of DDA, or of any equal treatment or equal access laws, nor amount to
unlawful discrimination.
(b)
If that guarantee can no longer be sustained because of circumstances
arising after the trustee company has agreed to include the employees as members, those employees shall remain as eligible employees, if those circumstances are determined by the trustee company, after consulting
with the institution, not
to have been reasonably foreseeable at the date of that agreement. The trustee company may, however, attach
such conditions to the continuance of those employees as eligible employees as it may on actuarial advice deem necessary or appropriate.
(c)
The institution guarantees
that in the reasonable opinion of the institution the relevant designation, determination or modification
under the rules will not
prejudice unfairly any one or more other groups of its employees or of employees
of any of its associated employers.
"Non-Standard Salary Decrease" means any decrease in a member's remuneration (including benefits in kind) which appears to the trustee company to have as its main object, or one of its main objects,
a reduction in the amount of contributions payable to the fund either by the member or by the employer or
both, save that the following decreases in remuneration shall not be non-standard salary decreases:
(a)
a decrease arising from a member relinquishing an appointment or taking up another with demonstrably
lighter responsibilities or graded at a lower level under an appropriate job
evaluation scheme; or
(b)
a decrease caused by a reduction in responsibilities or regrading under
an appropriate job evaluation scheme within an existing appointment, where
the reduction is not made in contemplation of retirement; or
(c)
a decrease that the trustee
company has confirmed in writing, at the request of the employer or the member,
that it will not treat as a non-standard
salary decrease.
"Non-Standard Salary Increase" means any increase in a member's remuneration (including benefits in kind) which appears to the trustee company either:
(a)
to have as its main object, or one of its main objects, the enhancement
of benefits under the scheme for
the member; or
(b)
to relate to service with
an employer other than, and
subsequent to, a period in respect of which the member had agreed with the same or an associated employer (or with a body to any of whose functions such
an employer has succeeded),
to an abatement of salary in
connection with an increase in the rate of that member's other remuneration,
save that the following increases in remuneration shall not be non-standard salary increases (except
that the trustee company shall
have a discretion in this regard in relation to members who have elected for enhanced protection under schedule 2):
(i)
an increase arising out of a nationally negotiated pay settlement; or
(ii)
an increase arising out of a new permanent appointment or a promotion,
regrading, clinical excellence award or regular review of salary not made or received in contemplation of retirement; or
(iii)
an increase that the trustee
company has confirmed in writing, at the request of the employer or the member,
that it will not treat as a non-standard
salary increase.
"OAL Period" (Ordinary
adoption leave period) means an ordinary adoption leave period for the purposes
of Chapter 1A of Part 8 of
ERA, or such period as would be so if that Act extended to the place
where the member is or was
employed.
"OML Period" (Ordinary
maternity leave period) means an ordinary maternity leave period for the purposes
of Chapter 1 of Part 8 of ERA, or such period as would be so if that Act extended to the place where
she is or was employed.
"Ordinary MPAL Period" (Ordinary
maternity, paternity and adoption leave period) means an OML period, an OAL period or a paternity leave period.
"Paid Adoption Absence" has
the meaning in paragraph
5B of Schedule 5 to SSA 89, and includes every KIT day within such a period.
"Paid Maternity Absence" has
the meaning in paragraph 5
of Schedule 5 to SSA 89, and includes every KIT day within such a period.
"Paid MPA Leave" (Paid
maternity, paternity and adoption leave) means a period of paid maternity absence, paid paternity absence or paid adoption absence and includes every KIT day within such a period.
"Part II Member" means
an eligible employee who was
an employee of an institution on
1 April 1975 and was a member of a part II scheme immediately before that date and remained a member of
that scheme until the date of joining this scheme.
"Part II Scheme" means
a health service scheme, a local government scheme or a statutory teachers' scheme.
"Partial Incapacity" means
ill-health of, or injury to, a member or former member,
not amounting to total incapacity, which causes that individual to be able for the long term to discharge
the duties of neither:
(a)
an eligible employment currently
held by that individual or held immediately before last ceasing to be an eligible employee;
nor
(b)
any other employment (whether or not available) which has a scope and
a nature similar to that in (a).
"Part-Timers Regulations" means
the regulations made under section 19 of the Employment Relations Act 1999.
"Part-Time Service" means
a period of service which
is notified by the employer to
the trustee company to be
less than a full-time commitment.
"Part-time Service Fraction" means,
in relation to part-time service in any eligible employment, whichever fraction is applicable of the following (but so that the
aggregate of the fractions for all concurrent part-time service shall not exceed 1):
(a)
The fraction of a full-time commitment which the institution deems to be devoted to that eligible employment and has notified to the trustee company, confirming in writing that it conforms with the Part-timers Regulations. Such notification
shall be deemed to include a non-discrimination
guarantee.
(b)
If (a) does not apply or where, in addition to remuneration in respect
of part-time service, a member is in an eligible employment for which part or all of the salary does not reflect the part-time character of that employment
because it is referable to such member's total employment or is not fixed remuneration for that employment:
where:
AS = salary excluding fluctuating remuneration of an equivalent
full-time employment.
This paragraph (b) shall not apply where a value for AS cannot be ascertained.
(c)
In relation to a VT employment for which no notification has been made under (a) above:
where:
AS = the aggregate of the fixed annual salary and any fixed allowances
for an equivalent regular full-time employment (or employments) designated
by the employer, as specified
in writing by the employer to
the trustee company and the VTE (whether by reference to a
scale or otherwise) and certified in writing by the employer to entail no breach of the Part-timers Regulations.
(d)
If none of paragraphs (a) to (c) applies, then in relation to a VT employment:
where:
D = an amount designated by the trustee company in a manner consistent with the Part-timers Regulations.
The trustee company shall
designate D by reference to a nationally applicable salary scale selected
by the trustee company with
the consent of the JNC. D
shall in any scheme year be
the same for all VT employments to which it is applied and shall be greater than 75%, but not greater
than 90%, of the average amount of salaries of all active members, as certified by the trustee
company on actuarial advice, for the scheme year which
is 2 years before the relevant scheme year, increased in proportion to any increase in the RPI published for the last month before the relevant scheme year over that published for the one 12 months before that,
or shall fall within such other range as the trustee company may determine with the prior consent of the JNC.
(e)
If none of paragraphs (a) to (c) applies and:
(1)
in relation to such categories of eligible employment as, at the request of the employer, the trustee company may agree; and
(2)
where the trustee company agrees that paragraph (d) above may be disapplied in the absence under
paragraphs (a) to (c) of an ascertainable salary for the equivalent full-time employment, or in such other circumstances
as the trustee company may
determine,
such fraction as the trustee
company may agree at the request of the employer as would have been determined under (b) if notional figures
could have been used by the employer for the amounts described in (b).
The trustee company may
not disapply paragraph (d) above, or apply this paragraph (e), unless it has
obtained a non-discrimination guarantee.
"Paternity Leave Period" means
a period within, or coinciding with, that leave which is paternity leave for
the purposes of Chapter 3 of
Part 8 of ERA, or would be so if that Act applied to the place where
that member is or was employed.
"Pensionable Salary" means,
subject to sub-rule 31.1.1, in respect of the
service
which ceased on the relevant date, the greater of:
(a)
the member's highest salary for any period of 12 complete
months ending on the last day of a month during the last 3 years before the relevant date; and
(b)
the highest yearly average of the total salary of the member for
any 3 consecutive years ending at the end of any month within the last 10
years before the relevant date,
increased, except for the last year before the relevant date, in proportion to any increase in the RPI between that published at the last day of the relevant year and
that published at the relevant date, but excluding any amount in respect of VT employment which is concurrent with eligible employment which is not VT employment and to which sub-rules 32.12 to 32.15 apply.
"Pensionable Service" means
a number of years consisting
of the aggregate of:
(a)
full-time service;
(c)
any period of additional pensionable
service credited on or after retirement on the grounds of total incapacity or on death by reference to such retirement;
(d)
any additional period purchased by AVCs (including under sub-rule 35.11 (Benefits on death before retirement));
(e)
any additional period, credited by reason of a special contribution
paid by an employer or a member (or a person treated as a member) or under rule 71 (Power to compromise claims), as a result of the trustee company compromising or
satisfying any claim;
(f)
any additional period credited (without being attributable to any particular
time period) as a result of a transfer under rule 44 (Individual transfers in) or 45 (Bulk transfers in); and
(g)
any other period which counts as pensionable service under these rules, or under any of the rules formerly governing the scheme,
provided that pensionable
service shall not exceed actual service save in respect of VTEs or additional pensionable
service or under sub-rule
4.2.2 (Deductions from the supplementary section).
"Pension Credit Rights" means
benefits, or actual or prospective rights to benefits, under the scheme to or in respect of an ex-spouse by reference to a pension credit arising under the scheme or under a transfer
arrangement.
"Pensioner Member" means
a pensioner who is drawing
a pension from the fund by
reason of having been a member,
or was such a person immediately before death, or would in the opinion of
the trustee company have
been so but for the pension being commuted under rule 50 (Commutation above lifetime allowance) or rule 51 (Total commutation for
serious ill-health).
"Perpetuity Period" means
the period of 80 years from 2 December 1974 plus such further period as may
be lawful, including any period during which the trusts of the scheme are exempt from the application of the rule against perpetuities.
The entire such period shall be the perpetuity period for the purposes of
the scheme under the rule
against perpetuities for the purposes of section 1 of the Perpetuities and
Accumulations Act 1964.
"Pre-1989 Act Member" means
a member or former member who last joined, or with HMRC's consent was treated as having so last joined, the scheme before 1 June 1989, unless that individual elected to be a 1989 Act Member under section 17 (Inland Revenue limits) of the rules which governed
the scheme immediately before
the effective date.
"Pre-Scheme Service" means,
in relation to a person who was entitled prior to 28 August 1992 to treat
such service as pensionable, a period of employment which was:
(a)
prior to joining the scheme;
(b)
with any of the institutions;
(c)
in a non-academic or non-academically-related post; and
(d)
a period which does not count as a period of pensionable service under any other provision of the rules,
but excluding any such period during which the institution maintained an occupational pension scheme of which the member was, or was eligible to be, a member, or where a member had opted for ABS on
or after 6 April 1988. Any period of pre-scheme service shall be reduced by such period as the trustee company acting on actuarial advice shall decide if proviso (i) to clause 3(f) of the
Third Deed of Amendment dated 14 February 1995 relating to the scheme applies.
"Pre-Scheme University Service" means, in relation to a person who was entitled prior to 28 August
1992 to treat such service as pensionable, a period of employment with an institution which:
(b)
is a period of eligible employment, or was a period of employment prior to the commencement of the scheme which had the scheme then been in existence would have been a period of eligible employment;
(d)
is not a period of employment prior to joining the scheme of a member who
was in eligible employment on
5 and 6 April 1980;
(e)
is not a period of ABS;
and
Any period of pre-scheme university
service shall be reduced by such period as the trustee company acting on actuarial advice shall decide, if proviso (i) to clause 3(f) of the
Third Deed of Amendment dated 14 February 1995 relating to the scheme applies.
"Preservation Regulations" means the Occupational Pension Schemes (Preservation
of Benefit) Regulations 1991.
"Preserved Benefits" means
the benefits which must be payable to or in respect of a former member in order that the scheme shall comply with the preservation requirements.
"Qualifying Service" means
such period of service or
other qualification as entitles a member or former member to preserved benefits.
"Redundancy" means cessation
of eligible employment attributable
wholly or mainly to:
(a)
the employer ceasing,
or intending to cease, to carry on the activity for the purposes of which
the member was employed, or
ceasing, or intending to cease, to carry on that activity in the place in
which the member worked; or
(b)
the requirements of that activity for employees of the employer to carry out work of a particular kind, or for employees of
the employer to carry out
work of a particular kind in that place, ceasing or diminishing, or being
expected to cease or diminish.
If within one month of such cessation of eligible employment the member is offered a comparable post entitling the member to continued membership, or if any successor to the business or functions of the employer offers the member comparable employment such as to disentitle the member to a redundancy payment under ERA, there shall be deemed to be no redundancy.
"Relative" means, in
respect of a deceased member, former member or ex-spouse, any living individual who is:
(a)
the surviving spouse or civil
partner;
(b)
a lawful, natural or adoptive parent or the surviving spouse or civil partner of such parent;
(c)
a lawful, natural or adoptive child, or remoter issue, of such parent,
or the spouse or civil partner,
or surviving spouse or civil partner, of any such person; or
(d)
a former spouse or civil partner.
"Relevant Benefits" means
those benefits which a registered
pension scheme is permitted to provide under section 150 of FA 04.
"Relevant Date" means,
in relation to a member or former member, the date of actual retirement in the case of late
retirement under rule 10 (Late
retirement), and in all other cases, whichever is the earliest of the date
of cessation of eligible employment or of service or
death or the day before normal retirement
age, provided that in all cases the date is no later than the day before
the individual's 75th birthday.
"Retirement" means the
cessation, on or after minimum pension
age, of employment which gives entitlement to membership without the member taking any other employment which would give entitlement to membership, and "Retire" and "Retired" have
corresponding meanings. A member shall be deemed to retire no later than the date which is immediately before the member's 75th birthday.
"Salary" means, in respect
of eligible employments of
a member, the aggregate of:
(a)
the gross fixed salary
or salaries and fixed cash allowances (excluding those under (b)(i) below);
and
(b)
where the employer with
the consent of the trustee company (such consent to be given on an individual or a class basis and subject
to such terms and conditions as the trustee company may think fit) so determines:
(i)
any fixed cash allowances agreed between the member and the employer and
taken in place of benefits in kind and all or any part of a member's benefits taken in kind which are, by agreement between the member and the employer, treated for the purposes of the scheme as being a notional fixed cash allowance; and
(ii)
any fluctuating remuneration averaged over the preceding 12 months or over the whole period, if
shorter.
"Salary Sacrifice Arrangement" means an arrangement whereby a member's contract of employment with an institution is varied so as to reduce the cash remuneration to which
the member would otherwise
be entitled in respect of service after the date of that variation and either:
(a)
the institution provides
the member with non-cash benefits
in respect of the member's eligible employment with that institution which are specified
on a list of applicable non-cash benefits which is published from time to
time by the trustee company;
or
(b)
the institution has
executed a supplementary deed of accession to the scheme with the trustee company relating to the arrangement in a form acceptable to the trustee company and the institution pays additional contributions in respect of the member under sub-rule
38.1.
"Scheme" means the Universities
Superannuation Scheme established by a declaration of trust dated 2 December
1974.
"Scheme Year" means
the year beginning the day after one accounting date and ending with the next accounting date.
"Service" means a period
of employment as an eligible employee which entitles a member to
benefits under the rules on
or after retirement. Service must be continuous, subject
to the rules relating to any suspension of membership or break in service. Service will be
deemed to be continuous although partly performed with one institution and partly with another. Where a period of service ceases on any day, it shall be deemed to do so immediately
before the beginning of the next day and no earlier.
"Special Class Member" means
a member who is within one
of the special classes as defined in a Health Service transfer agreement.
"Specified Employee" means
an employee of an institution which
has, subject to the agreement of the trustee company, specified that individual as an eligible employee, either by name or by reference to a class of employees
to which that individual belongs.
"Statutory Teachers' Scheme" means
any of the schemes governed by section
9 of the Superannuation Act 1972.
"Stepchild" means an
individual other than a person's lawful, natural or adopted child who, immediately
before the last occasion when that person married, or formed a civil partnership with, another person, was that other person's lawful,
natural or adopted child.
"Supplementary Benefits" means
each of the following:
(a)
the benefits in payment under USDPS immediately before 1 April 1988 which became payable from the fund on and after that date;
(b)
those of the benefits payable under the following provisions of the rules which are paid in respect
of supplementary service or
are expressed to be a charge on the supplementary section:
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(Enhanced incapacity benefits),
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(Lump sum benefits on death in active membership before normal retirement
age), on the death of a member without
leaving a spouse, civil partner, dependant or child who is entitled
to a survivor's, dependant's or children's pension,
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(Lump sum benefits on death of a pensioner member),
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(Survivor's pension for life on death of active member before normal
retirement age),
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(Initial survivor's pension on death of pensioner member),
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(Survivor's pension for life on death of pensioner member)
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(Dependants' pensions where the member or pensioner member was not living
with the spouse or civil partner)
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(Children's pensions on the death of an active or pensioner member)
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(Death in receipt of an incapacity pension)
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"Supplementary Service" means
the number of years by which
the pensionable service (including additional pensionable service (if
any)) of a member at the relevant date falls short of the pensionable service which would
have accrued to the member by normal retirement age. Where the member was at the relevant date in part-time
service, that number shall be multiplied by the part-time service fraction. If added years AVCs have been paid in respect of the member, that period shall be reduced by any reduction in the number
of years' pensionable service purchased by added years AVCs under sub-rule 34.4 (Actuarially reduced early benefits). If the aggregate
of pensionable service (including additional pensionable service (if
any)) and supplementary service would exceed 40 years, the supplementary service shall be reduced to the extent of the excess.
"Tax Code" means Chapter 1 of Part 14 of the Taxes Act as it stood on 5 April 2006, and any conditions laid down by HMRC for approval of schemes under
that chapter as at 5 April 2006.
"Total Incapacity" means
ill-health of, or injury to, a member or former member which
causes that individual to be able for the long term to discharge the duties
of neither:
(a)
the employment currently held by the member as an eligible employee or which was held by the individual immediately before last ceasing
to be an eligible employee;
nor
(b)
any other employment for which an employer would be likely to pay the
individual more than a small fraction of the amount which would but for the
cessation of eligible employment have been that individual's salary.
"Transfer Arrangement" means
one or more registered pension schemes or recognised overseas pension schemes as defined in FA 04.
"Transfer Club" means
the arrangements for a common basis of transfer payments operated by certain
occupational pension schemes relating to public sector employment and by other occupational pension schemes which
have agreed to participate.
"Transferring FSSU Member" means
an FSSU member who elected
to become a member before
6 April 1980 under the provisions for transfer then in force.
"Transferring Part II Member" means a part II member who elected to become a member before 6 April 1980 under the provisions for transfer then in
force.
"Trivial Amount" means
the sum of £260 per year or such higher amount as may be prescribed
under section 21(1) of PSA 93 and section 91(5)(c)
of PA 95.
"Trustee Company" means
Universities Superannuation Scheme Limited or any successor trustee or trustees
of the scheme appointed under sub-rules 59.2 to 59.4.
"UCU" means the University
and College Union or any other recognised trade union which assumes the functions,
rights and obligations of UCU.
"UCU Appointee" means
a person appointed by UCU to
the JNC or to the advisory committee, as the case may be.
"UCU Director" means
an individual appointed by UCU to
be a member of the board in
accordance with the articles of association of the trustee company.
"Unpaid MPA Leave" (Unpaid
maternity, paternity and adoption leave) means a period of MPA leave for which no statutory maternity pay, statutory paternity
pay, statutory adoption pay or contractual or other remuneration is paid to
the member, and includes every KIT day within such a period.
"USDPS" means the Universities
Supplementary Dependants (and Ill-health Retirement) Pension Scheme, established
by a declaration of trust dated 2 December 1974 under its original name of
the Universities Supplementary Dependants Pension Scheme, which was amalgamated
with the scheme on 1 April
1988.
"UUK" means Universities
of the United Kingdom, a company limited by guarantee and registered as a
charity (registered number 1001127).
"UUK Appointee" means
a person appointed by UUK to
the JNC or to the advisory committee, as the case may be.
"UUK Director" means
an individual appointed by UUK to
be a member of the board in
accordance with the articles of association of the trustee company.
"VTE" (Variable time
employee) means an eligible employee in relation to a VT employment, including an individual who holds in addition one or more employments
which are not VT employments.
The trustee company, having
consulted the employer, shall
determine whether an eligible employee is a VTE in any case
where in the opinion of the trustee
company doubt arises.
"VT Employment" (Variable
time employment) means an eligible
employment which is not remunerated either by a fixed annual salary
or in such a way that it would be reasonably practicable for a part-time service fraction to be computed in respect of that employment
under paragraph (b) of the definition of part-time service fraction and includes an employment which the trustee company, at the request
of, or after consultation with, the employer, has determined is to be treated as VT employment. The trustee
company shall not make such a determination unless the employer has given a non-discrimination
guarantee to the trustee
company and complies with its terms.
"Withdrawing Institution" means
an institution to which one
or more of the following applies:
(a)
the institution ceases
to be resident in the United Kingdom;
(b)
the institution ceases
to fall within any category of body which the trustee company approves for participation in the scheme;
(c)
the institution or the trustee company finds it to be
impracticable or inexpedient for the institution to continue to participate in the scheme;
(d)
the institution establishes,
maintains or contributes to another pension scheme in breach of rule 42 (Exclusivity);
(e)
a proposal is made to the creditors of the institution by its directors, or by other duly authorised members of
the institution, for a voluntary
arrangement under Part 1 of the Insolvency Act 1986, or a trust deed is drawn
up on behalf of the institution for
its creditors;
(f)
an instrument is drawn up appointing a receiver or an administrative
receiver of the institution,
which will, if all the statutory requirements are met, have effect under Part
2 (or, as the case may be, Part 3) of the Insolvency Act 1986;
(g)
a resolution is duly proposed to the members of the institution under section 84 of the Insolvency Act 1986 for the winding
up of that institution; or
(h)
a petition is presented to a court of competent jurisdiction for the
winding up of the institution under
Part 4 or 5 of the Insolvency Act 1986 or, where the institution is not to be treated as a company or an unregistered company
for the purposes of either of those parts of that Act, an application is made,
or a petition presented, to the Accountant in Bankruptcy for the sequestration
of the estate of the institution under section 6 of the Bankruptcy (Scotland) Act 1985,
provided that:
(A)
if at any time a "relevant event" within the meaning of section 75(6A) of PA 95 occurs
in relation to an institution which
is not then a withdrawing institution under the foregoing provisions of this definition, that institution shall be treated as having become a withdrawing institution on the day immediately preceding the day of
that event; and
(B)
if at any time it appears to the trustee company that the fulfilment by the institution of the conditions in any of paragraphs (a) to (h) above
has not resulted, and is unlikely to result, in the occurrence in relation
to that institution of a "relevant event" (as defined in (A) above), it may treat any such conditions
as not having been so fulfilled.
"Year" means any complete
period of 365 days (or 366 in a leap year). In relation to pensionable service and supplementary service, any additional day or part of a day shall count
(even in a leap year) as 1/365th of a year.
1.2
General interpretation
1.2.1
Unless the context otherwise requires, in these rules the singular shall include the plural and the plural shall include
the singular; the masculine, feminine or neuter gender shall include the other
genders; and persons shall include corporations and unincorporated associations.
1.2.2
Neither the arrangement of these rules nor any headings or sub-headings shall affect the interpretation
of the rules.
1.2.3
Where the context so requires, in relation to a person to whom these rules apply under rule 2, any reference in these rules to a rule or provision of the scheme shall include a reference
to the corresponding or equivalent rule or provision previously in force at
the relevant time, and any reference in any document to a rule or provision
of the scheme previously in force shall refer to the corresponding or equivalent
rule or provision in these rules.
1.2.4
All references to any enactment, regulations or orders shall be deemed
to include a reference to any modification or re-enactment or re-issue thereof
in force and to any corresponding enactment, regulations or orders applicable
to Northern Ireland.
1.2.5
A reference to benefits accruing or payable "in respect of" a member or former member does not include, unless expressly stated in these rules to the contrary, any benefits
so accruing or payable, directly or indirectly, by virtue of a pension sharing order to which that person was a party.
2
Commencement
2.2
These rules apply to
and in respect of all persons who are or become active members at any time on or after the effective date and to all persons claiming through such active members, and come into force on that date to the exclusion of
all rules and other provisions relating to the scheme prior to that date.
2.3
Benefits payable to or in respect of any former member who does not have any service on or after the effective
date shall be governed by the previous rules in force (or treated as
having been in force) at the date when the former member last left service (as then defined for the purposes of
the scheme).
2.4
These rules apply to
benefits payable under any pension
sharing order which is made on or after the effective date or, in the case of any pension credit rights that had been granted under a transfer arrangement, payable at the date (if later) on which the trustee company agreed to assume
liability. The benefits payable under any pension sharing order which is made before that date shall be governed
by the previous rules in force at that date of making of that order.
2.5
These rules shall not
apply to the calculation of the benefits payable to or in respect of a member or ex-spouse participant by reference to a relevant date which is before the effective date.
3
Fund
The fund comprises all
the assets held by the trustee company for the purposes of the scheme other than the MPAVC
fund. The fund is allocated
to two notional sections called the main section and the supplementary
section.
4
Supplementary Section and Supplementary Benefits
4.1
The supplementary section of the fund
The amount attributable to the supplementary section shall be the aggregate of the amounts under sub-rules 4.1.1 to 4.1.3 and 4.3, minus the aggregate of the amounts under sub-rule 4.2. The assets of the supplementary section shall be the aggregate of the following:
The amount attributable to the supplementary section shall be the aggregate of the amounts under sub-rules 4.1.1 to 4.1.3 and 4.3, minus the aggregate of the amounts under sub-rule 4.2. The assets of the supplementary section shall be the aggregate of the following:
4.1.1
all amounts transferred from USDPS pursuant to the amalgamation of USDPS with the fund on
1 April 1988;
4.1.2
the sum of 0.35% (or such other proportion as the trustee company may decide after consulting the JNC) of each active member's salary received by
the trustee company after
31 March 1988; and
4.1.3
such proportion of the income and capital profits of the fund as the trustee company shall decide.
4.2
Deductions from the supplementary section
The following shall be liabilities of, and payable from, the supplementary section:
The following shall be liabilities of, and payable from, the supplementary section:
4.2.2
benefits payable in respect of a member who died in service with less than 5 years' pensionable service (calculated without applying any part-time service fraction for this purpose);
4.2.3
that part of any pension credit
rights paid, or of any payment made to a transfer arrangement in respect of pension credit rights, which is derived from a pensioner member's rights to supplementary benefits;
4.2.5
any amount that the trustee
company, with the JNC's consent,
may decide to transfer irrevocably to the main section.
4.3
Deficiency in the supplementary section
If the actuary certifies that the assets of the supplementary section are not sufficient to finance the supplementary benefits currently and prospectively payable, the trustee company may, after consulting the JNC, notwithstanding anything to the contrary in the rules:
If the actuary certifies that the assets of the supplementary section are not sufficient to finance the supplementary benefits currently and prospectively payable, the trustee company may, after consulting the JNC, notwithstanding anything to the contrary in the rules:
4.3.1
increase the rate of contribution credited to the supplementary section under sub-rule 4.1.2, and thereby correspondingly increase the members' contributions under sub-rule 6.1 (Ordinary member contributions); and/or
4.3.2
adjust, in such manner as the trustee company shall on actuarial
advice determine, the amount of the supplementary benefits prospectively payable,
to the intent that supplementary
benefits shall never be financed from the main section.5
Terms of Entry
5.1
Eligible employees
An eligible employee is an employee of an institution participating in the scheme who is either:
An eligible employee is an employee of an institution participating in the scheme who is either:
5.1.2
employed by a university or university college in a role comparable
to a post under sub-rule 5.1.1 in terms of responsibility and/or salary and
by reference to that institution's job-evaluated pay structure; or
5.1.3
an employee of a non-university institution in a post of comparable status to that of an employee under
sub-rules 5.1.1 or 5.1.2; or
In order to become a member, an eligible employee must
satisfy whichever are applicable of the following provisions of this rule.
5.2
Maximum entry age and excluded cases
5.2.1
An eligible employee shall
not be entitled to become a member if the eligible employee is either:
(a)
subject to sub-rule 5.2.2, a pensioner member other than a pensioner member who is in receipt of a pension under rule 13 (Early pensions on incapacity) or
(b)
a pensioner member to
whom sub-rule 30.5.1 applies;
a person to whom a lump sum has been paid in total commutation of his or her
benefits under rule 51 (Total
commutation for serious ill-health); or
5.2.2
Notwithstanding paragraph 5.2.1(a) of sub-rule 5.2.1, an eligible employee who is a pensioner member to whom sub-rule 37.3 (Pensioner rejoining after total incapacity) applies
may become a member only on
satisfying the requirements of sub-rule 37.3.
5.2.3
Where an eligible employee who is a pensioner member (other than a pensioner
member who is in receipt of a pension under rule 13 (Early pensions on incapacity)) may become a member under this sub-rule 5.2,
such a pensioner member shall
be subject to a maximum age for admission to membership of 50 years.
5.2.4
The following provisions of this rule 5 shall apply only to an eligible employee who satisfies
the requirements of this sub-rule 5.2.
5.3
Automatic entry to membership
Except as provided in sub-rules 5.4 (Membership by application only) and 5.14 (Alternative benefits service members by application) , an eligible employee shall become a member of the scheme immediately upon commencing an eligible employment unless he or she either:
Except as provided in sub-rules 5.4 (Membership by application only) and 5.14 (Alternative benefits service members by application) , an eligible employee shall become a member of the scheme immediately upon commencing an eligible employment unless he or she either:
5.3.2
has the right in respect of that employment to participate in a health service scheme (or such a
right contingent only on a statutory direction from the Secretary of State
or on the equivalent direction in Northern Ireland) or another occupational pension scheme or other pension scheme to which the employer contributes, to which either of sub-rules 42.2.4 or 42.2.5 (Exclusivity) applies; or
5.3.3
was, immediately before 6 April 2006, disqualified from being an eligible employee because his or
her membership would have
prejudiced approval of the scheme under the tax code and
remains in the same eligible employment.
For the avoidance of doubt, an individual may be (or become, or withdraw
from being) a member in relation
to more than one eligible employment, and/or in relation to some, but not all, of that individual's eligible employments.
5.4
Membership by application only
5.4.1
Individuals in eligible employment
An eligible employee who
has remained in continuous eligible
employment since entering eligible employment (or since 5 April 1980 if later) and who has been
since the commencement of eligible
employment (or 5 April 1980 if later) entitled in respect of that employment
to contribute to FSSU or to
a part II scheme, but who
elects while so entitled to cease all such contributions, may apply to the trustee company to become a member in respect of that employment.
On acceptance in writing by the trustee company of such an application, the eligible employee shall become a member of the scheme on
the first day of the month following that acceptance, or on such earlier date
as the trustee company may
decide.
5.4.2
Individuals prior to or on entering eligible employment
An eligible employee who
wishes to become a member in
respect of an eligible employment in relation to which he or she has the right to participate in a health service scheme (or such a
right contingent only on such a direction as is referred to in sub-rule 5.3.2),
or other pension scheme to
which either of sub-rules
42.2.4 or 42.2.5 (Exclusivity) applies, or to have the employer contribute to such scheme to which sub-rule 42.2.5 applies, may, on or before entering that
employment, apply to the trustee
company to become a member, confirming in writing that all contributions in respect of that individual
to all other pension schemes (to
which employer contributions have been made in respect of that employment)
have ceased, or will cease prior to the eligible employee becoming a member. On acceptance in writing of such an application by the trustee company, the eligible employee shall become a member on the first day of the month following that acceptance, or
on such earlier date as the trustee
company may decide.
5.5
Form of application
Any application for membership shall be in such form as the trustee company may prescribe.
Any application for membership shall be in such form as the trustee company may prescribe.
5.6
Excluded post employees
An institution may declare that an office, post or employment or category of employment shall not give any holder of that office, post or employment nor of employment within that category, the right to be treated as an eligible employee. No future holder of such office, post or employment shall have a right to be treated as an eligible employee, except with the consent of the trustee company.
An institution may declare that an office, post or employment or category of employment shall not give any holder of that office, post or employment nor of employment within that category, the right to be treated as an eligible employee. No future holder of such office, post or employment shall have a right to be treated as an eligible employee, except with the consent of the trustee company.
5.7
Exclusion of VTEs
A declaration under sub-rule 5.6 shall not be effective in relation to a VTE unless the institution notifies that person in writing of the effect of that declaration within the specified time under Part 1 of ERA for receipt by that person of a statement of his or her terms and conditions of employment.
A declaration under sub-rule 5.6 shall not be effective in relation to a VTE unless the institution notifies that person in writing of the effect of that declaration within the specified time under Part 1 of ERA for receipt by that person of a statement of his or her terms and conditions of employment.
5.8
Particulars to the trustee company
The institution must provide full particulars of any declaration under sub-rule 5.6 or 5.7 to the trustee company within 14 days (or such longer period as the trustee company may allow) after the institution has first notified any of its employees or prospective employees of that declaration.
The institution must provide full particulars of any declaration under sub-rule 5.6 or 5.7 to the trustee company within 14 days (or such longer period as the trustee company may allow) after the institution has first notified any of its employees or prospective employees of that declaration.
5.9
Cross-border employees
An individual who is or becomes a "qualifying person" for the purposes of Part 7 of PA 04 is not an eligible employee, if that individual becoming a member would involve the trustee company accepting contributions from a "European employer" within the meaning of regulations under that part. Such an individual may not be an eligible employee without the agreement of the trustee company.
An individual who is or becomes a "qualifying person" for the purposes of Part 7 of PA 04 is not an eligible employee, if that individual becoming a member would involve the trustee company accepting contributions from a "European employer" within the meaning of regulations under that part. Such an individual may not be an eligible employee without the agreement of the trustee company.
5.10
Non-discrimination guarantee
An institution which designates an employee or class of employees as specified employees shall be deemed to give a non-discrimination guarantee to the trustee company. The institution shall provide to the trustee company such supporting evidence, including any relevant legal opinion, as the trustee company may reasonably require, that the terms of that guarantee are, and continue to be, capable of fulfilment.
An institution which designates an employee or class of employees as specified employees shall be deemed to give a non-discrimination guarantee to the trustee company. The institution shall provide to the trustee company such supporting evidence, including any relevant legal opinion, as the trustee company may reasonably require, that the terms of that guarantee are, and continue to be, capable of fulfilment.
5.11
Health service scheme members
An individual who with effect from the date of entry into an eligible employment is a member of a health service scheme may not become a member of the scheme in respect of that eligible employment if the individual elects to continue in active membership of a health service scheme in respect of that employment.
An individual who with effect from the date of entry into an eligible employment is a member of a health service scheme may not become a member of the scheme in respect of that eligible employment if the individual elects to continue in active membership of a health service scheme in respect of that employment.
5.12
Members of other pension schemes
An employee who on becoming an eligible employee either:
An employee who on becoming an eligible employee either:
5.12.1
is a member of another occupational
pension scheme to which either of sub-rules 42.2.4 or 42.2.5 (Exclusivity) applies, and has
the right to participate in that other scheme; or
5.12.2
is a member of any other pension scheme to which sub-rule 42.2.5 applies to which the employer and employee agree that the employer will contribute;
shall not be eligible for membership of the scheme in respect of that eligible
employment. An employee shall be treated as a member of another pension scheme for these purposes
if the employee has applied for membership of that other scheme and that application
has not been effectively withdrawn or refused.
5.13
Previous alternative benefits service
An eligible employee who has a previous period of ABS shall be entitled to become a member only if he or she either:
An eligible employee who has a previous period of ABS shall be entitled to become a member only if he or she either:
5.13.2
applied to become a member within 6 months of the later of first becoming an eligible employee or opting for alternative benefits, and has supplied a declaration in such form as
the trustee company may require
that he or she is in normal health; or
5.13.3
has ceased to be an eligible
employee after the last previous period of ABS and has again become an eligible employee, has not been employed by an institution in the 6 months before again becoming an eligible employee, and has supplied a declaration in such form as the trustee company may require that
he or she is in normal health; or
5.13.4
has provided a declaration in such form as the trustee company may require that he or she is in normal health, has
been subject to such medical examination as the trustee company shall require, and has agreed with the trustee company to pay such increased contributions to the scheme as the trustee company may require under sub-rule
6.2.
The trustee company may
waive or modify the above requirements for a declaration, or other evidence,
that an eligible employee is
in normal health.
5.14
Alternative benefits service members by application
5.14.1
An eligible employee to
whom sub-rule 5.13.1 or 5.13.3 applies shall become a member on the date of re-entering eligible employment.
5.14.2
An eligible employee to
whom sub-rule 5.13.2 or 5.13.4 applies shall only become a member on the first day of the month following the trustee company's acceptance of his or her application for membership, after compliance with the requirements of sub-rule 5.13.2 or 5.13.4 (whichever is applicable), or
on such earlier date as the trustee
company may decide.
6
Member Contributions
6.1
Ordinary member contributions
A member shall contribute 6.35% of salary to the fund unless rule 38 applies.
A member shall contribute 6.35% of salary to the fund unless rule 38 applies.
6.2
Special member contributions
Instead of contributions under sub-rule 6.1, the trustee company may require or permit a member to make contributions to the fund at a different rate if either:
Instead of contributions under sub-rule 6.1, the trustee company may require or permit a member to make contributions to the fund at a different rate if either:
6.2.1
the member has had a
prior period of ABS, did not
become a member when first
eligible to do so and in the opinion of the trustee company is not in a normal state of health for a person of
the member's age and occupation,
in which case a higher contribution may be payable; or
6.3
Contributions by a non-member
The trustee company may require an individual who is not a member to contribute to the fund and be treated as a member where an institution has paid, or is to pay, one or more contributions in respect of that individual under rule 47 (Special employer contributions) and contributions by that individual are required under an order of a Court or tribunal of competent jurisdiction, or under an agreement to compromise actual or potential proceedings before such a Court or tribunal.
The trustee company may require an individual who is not a member to contribute to the fund and be treated as a member where an institution has paid, or is to pay, one or more contributions in respect of that individual under rule 47 (Special employer contributions) and contributions by that individual are required under an order of a Court or tribunal of competent jurisdiction, or under an agreement to compromise actual or potential proceedings before such a Court or tribunal.
6.4
Deduction of contributions
The employer shall deduct from salary the member's contributions. Those contributions shall be a debt due from the employer to the trustee company.
The employer shall deduct from salary the member's contributions. Those contributions shall be a debt due from the employer to the trustee company.
7
Ordinary Employer Contributions
7.2
Each employer shall
contribute to the fund while
the scheme continues the
amounts determined by the trustee
company, acting on actuarial
advice, to be required to satisfy the rights of members to benefit under the scheme.
7.3
Time limits and interest
7.3.1
The trustee company shall
set the due dates for payment of contributions by institutions under section
227 of PA 04 and shall inform institutions of those dates. The due date for payment of a contribution
deducted by the employer from
a member's remuneration shall
not be later than the date permitted under section 49(8) of PA 95. Contributions under rules 6, 7, 34
[See 2nd reference]
[See 3rd reference]
(Added years AVCs) and 35 (Money purchase AVCs) shall be payable on a monthly
basis. Any amount paid by an institution to the trustee company shall
be applied in satisfaction of the institution's liability to pay amounts deducted from a member's salary before
it is applied to any other purpose.
7.3.2
The trustee company may
specify dates from which the trustee
company may require the institution to pay interest on unpaid contributions at such rates as the trustee company on actuarial advice may decide. The trustee company may require an institution to pay an administration charge where interest is so payable.
Interest may not be charged before the first day of the month following the
month in respect of which the contribution is to be paid in relation to monthly
contributions, or before 30 days from the due date for payment of other contributions.
Notwithstanding this, interest may be charged at any time from the due date
for payment of a contribution under rule 43 (Withdrawal of institutions) or section 75 of PA 95.
7.4
Representation of institutions for scheme funding consultations
UUK is the person nominated by the rules to act as the representative of the institutions for the purposes of the consultation required by the trustee company with the institutions under section 229 of PA 04.
UUK is the person nominated by the rules to act as the representative of the institutions for the purposes of the consultation required by the trustee company with the institutions under section 229 of PA 04.
8
Benefits at Normal Retirement Age
A member who has either
attained normal retirement age and
to whom rule 10 does not
apply, or (having attained age 60) is entitled to retire on pension in accordance with the member's terms of appointment or contract of employment, shall from
the day after the date of retirement be entitled to:
9
Continuation Contributions
9.1
A member shall cease
to contribute to the fund and
cease to be in service on
completing 40 years' pensionable
service, or in the case of a member over the age of 55 who is either an MHO or a special class member, 45 years' pensionable service. Pensionable service purchased
by AVCs made under rule 34 (Added years AVCs) or
derived from an election under sub-rule 35.10 (Transfer for defined benefits) taking effect after
5 April 2006 shall not count towards those periods of 40 years' or 45 years' pensionable service. The cessation
of contributions and service under
this sub-rule applies unless the member elects with the consent of the trustee company to continue to pay contributions. Where a member is in more than one eligible employment and more than one year's pensionable service is derived from service in any year,
the excess shall not count towards those periods of 40 years' or 45 years' pensionable service.
9.2
A member to whom sub-rule
9.1 applies may elect by 2 months' written notice to the trustee company, or such lesser notice period as the trustee company may accept, to recommence or continue to pay contributions
under rule 6 (Member contributions)
or schedule 6 (Salary
reduction) until the earliest of:
9.2.3
the expiry of 2 months' written notice by the member to the trustee company to cease to contribute, or such lesser period as the trustee company may allow.
9.3
Once a member has so
elected to cease contributions, that member may not subsequently elect to recommence contributions.
9.4
An employer may contribute
to the fund in respect of
a member who is paying contributions
under sub-rule 9.2.
If the employer does make
such contributions, then the member shall continue to accrue pensionable service.
9.5
If the employer does
not so contribute, the trustee company acting on actuarial advice shall decide the amount of the pension and lump sum to be paid in
respect of the member's contributions.
Insofar as those benefits are based on pensionable service, they shall be such proportion as the actuary shall determine of the benefits payable if the employer had contributed. The trustee company shall notify the member of that proportion as at the time of the member's election to pay contributions and that proportion shall apply
to the member for the purposes
of this rule. The benefits under sub-rules 20.1 (Lump sum benefits on death in active membership), 23.1 (Initial survivor's pension
on death of active member), 25.1 (Initial survivor's pension on death in deferment), and 26.1 (Dependant's pension)
shall be the same as those payable if the employer had contributed.
10
Late Retirement
10.1
Member contribution election at normal retirement age
A member who was in service immediately before normal retirement age may either:
A member who was in service immediately before normal retirement age may either:
10.2
Applicability of the following provisions
This rule applies to a member who remains in service after normal retirement age. Rule 8 (Benefits at normal retirement age) does not apply to such a member.
This rule applies to a member who remains in service after normal retirement age. Rule 8 (Benefits at normal retirement age) does not apply to such a member.
10.3
Benefits if employer does not contribute
If a member elects to continue to contribute after normal retirement age, but the employer does not so contribute, the trustee company acting on actuarial advice shall decide the amount of the pension and lump sum to be paid in respect of those contributions.
If a member elects to continue to contribute after normal retirement age, but the employer does not so contribute, the trustee company acting on actuarial advice shall decide the amount of the pension and lump sum to be paid in respect of those contributions.
10.4
Pre-1 December 2006 normal retirement age
Where normal retirement age was attained before 1 December 2006 and service continues after 30 November 2006, the member shall be entitled to receive the following benefits from the day after the date of retirement:
Where normal retirement age was attained before 1 December 2006 and service continues after 30 November 2006, the member shall be entitled to receive the following benefits from the day after the date of retirement:
10.4.2
subject to sub-rule 10.3, in respect of pensionable service accrued or credited after 30 November 2006:
10.5
Post-30 November 2006 normal retirement age
Where normal retirement age is attained after 30 November 2006 and service continues thereafter, the member shall be entitled to receive the following benefits from the day after the date of retirement:
Where normal retirement age is attained after 30 November 2006 and service continues thereafter, the member shall be entitled to receive the following benefits from the day after the date of retirement:
10.5.2
subject to sub-rule 10.3, in respect of pensionable
service accrued or credited after normal retirement age:
10.6
Exclusion of benefits for post-normal retirement age contributions
No increase shall be made under sub-rule 10.4.1 to any pension or lump sum which is derived from contributions paid in respect of a period after normal retirement age, but before 1 December 2006. The trustee company acting on actuarial advice shall decide the amount of the pension and lump sum to be paid in respect of those contributions.
No increase shall be made under sub-rule 10.4.1 to any pension or lump sum which is derived from contributions paid in respect of a period after normal retirement age, but before 1 December 2006. The trustee company acting on actuarial advice shall decide the amount of the pension and lump sum to be paid in respect of those contributions.
10.7
Pre-6 April 2006 Revenue limits
The aggregate value of the pensions and lump sums payable on retirement after normal retirement age under sub-rule 10.4 shall not exceed the limit specified in rule 17.3(a) (Inland Revenue limits) of the rules governing the scheme immediately before the effective date in relation to a 1989 Act member who attained normal retirement age before 6 April 2006.
The aggregate value of the pensions and lump sums payable on retirement after normal retirement age under sub-rule 10.4 shall not exceed the limit specified in rule 17.3(a) (Inland Revenue limits) of the rules governing the scheme immediately before the effective date in relation to a 1989 Act member who attained normal retirement age before 6 April 2006.
11
Early Retirement at the Instance of the Employer
11.1
Members to whom this rule applies
This rule applies to a member:
This rule applies to a member:
11.1.1
who has 5 or more years' pensionable service (calculated without applying the part-time service fraction for this purpose);
11.1.3
has not in respect of that eligible employment become entitled to a pension under any of rules 8 (Benefits at normal retirement
age), 10 (Late retirement)
and 13 (Early pensions
on incapacity); and
11.2
Applicable circumstances of retirement
This rule applies to a member:
This rule applies to a member:
11.2.2
whose employment is terminated in the interests of the efficient exercise
of the institution's functions
(unless the employer dismissed
the member for good cause
other than by reason of the physical or mental incapacity of the member or redundancy)
and the employer gives its
consent to payment of the benefits; or
11.3
Benefits
A member to whom this rule applies may elect to receive from the day after the date of retirement:
A member to whom this rule applies may elect to receive from the day after the date of retirement:
11.4
Adjustments to transferred in service
That part of the benefits payable under this rule which is attributable to pensionable service credited to the member under rule 44 (Individual transfers in) shall be subject to actuarial reduction, as determined by the trustee company on actuarial advice, provided that:
That part of the benefits payable under this rule which is attributable to pensionable service credited to the member under rule 44 (Individual transfers in) shall be subject to actuarial reduction, as determined by the trustee company on actuarial advice, provided that:
11.4.1
where pensionable service has been credited by reference to a transfer payment which was received
by the trustee company before
1 April 2009, this sub-rule 11.4 shall apply as if it were replaced by rule 10.5(d) of the rules
of the scheme as they had
effect immediately before that date; and
11.4.2
where the trustee company has, before 1 September 2009 or such later date as the trustee company may allow, provided the member with an offer of pensionable service in anticipation of a transfer payment, and that
offer is accepted within 3 months of being made, the member may elect that the former rule 10.5(d) shall apply as under sub-rule 11.4.1 above.
The employer may pay
such additional contributions to the scheme to remove this reduction as the trustee company may decide on actuarial advice.12
Member's Early Retirement
12.1
A member who has attained
age 60, has 5 or more years' pensionable
service (calculated without applying the part-time service fraction for this purpose) and leaves employment
otherwise than under any of rules
8 (Benefits at normal retirement age), 11 or 13
[See 2nd reference]
may elect to receive from the day after the date
of retirement:
adjusted under sub-rule 12.2.
adjusted under sub-rule 12.2.
12.2
If the pension commences before the age of 63 years and 6 months (or
such lower age as the trustee company may decide, acting on actuarial
advice and subject to the consent of the JNC), the pension and lump sum shall be reduced by such amount as the trustee company, on actuarial advice, shall decide.
12.3
That part of the benefits payable under this rule that is attributable
to pensionable service credited
to the member under rule 44 (Individual transfers
in) shall be subject to actuarial reduction, as determined by the trustee company on actuarial
advice, unless the member has made an election under sub-rule 11.4.2.
13
Early Pensions on Incapacity
13.1
Application of this rule
This rule applies to a member who satisfies all of the following conditions:
This rule applies to a member who satisfies all of the following conditions:
13.1.1
Service
The member has either:
(b)
completed 2 consecutive years in aggregate of active membership and membership of any comparable scheme in the continuous employment throughout of one or
more institutions and during
which there has been no material
break; or
(c)
been a member of a comparable
scheme after 10 December 1999 by virtue of incapacity qualifying employment and would have been entitled, on retirement
on the date of ceasing eligible employment while satisfying the ill health, infirmity or incapacity requirements
under that scheme, to an immediate early pension under that scheme, without
actuarial reduction.
13.1.2
Employer agrees incapacity
In the employer's opinion
the member is suffering from incapacity at the date of the relevant
cessation of eligible employment.
13.1.3
Trustee company agrees incapacity type
The trustee company determines
that the member is suffering
from total incapacity or partial incapacity.
13.1.4
Reason for retirement or cessation of eligible employment
The trustee company determines
that the member has retired or ceased one or more eligible employments on the grounds
of total incapacity or partial incapacity before normal retirement age and, in a
case of total incapacity,
without continuing in any other eligible employment.
13.1.5
Application to the trustee company
The member applies to
the trustee company, in a
form acceptable to the trustee company, for benefits under this rule, unless the trustee company determines that regulation 8(3) of the Preservation Regulations is satisfied.
13.2
Non-enhanced incapacity benefits
A member who retires or ceases an eligible employment on the grounds of partial incapacity or total incapacity shall be entitled from the day after such retirement or cessation of eligible employment to:
A member who retires or ceases an eligible employment on the grounds of partial incapacity or total incapacity shall be entitled from the day after such retirement or cessation of eligible employment to:
13.3
Enhanced incapacity benefits
A member, who either last became an active member 5 or more years ago (construed in accordance with sub-rule 13.4) or, having last become an active member 2 or more years before ceasing active membership, had no known medical condition, and who retires or ceases eligible employment on the grounds of total incapacity, shall be entitled from the day after such retirement to:
Such a member shall also be entitled to a pension and lump sum based on the number of years' supplementary service (if any) calculated as follows:
A member, who either last became an active member 5 or more years ago (construed in accordance with sub-rule 13.4) or, having last become an active member 2 or more years before ceasing active membership, had no known medical condition, and who retires or ceases eligible employment on the grounds of total incapacity, shall be entitled from the day after such retirement to:
Such a member shall also be entitled to a pension and lump sum based on the number of years' supplementary service (if any) calculated as follows:
13.4
5 years' service qualification for enhanced incapacity benefits
A member shall be treated for the purposes of sub-rule 13.3 as having last become an active member 5 or more years ago, if either:
A member shall be treated for the purposes of sub-rule 13.3 as having last become an active member 5 or more years ago, if either:
13.4.1
the member has five
or more consecutive years in aggregate of active membership and membership of any comparable scheme, throughout which the member has been employed by the same institution, or in an employment to be treated in the trustee company's opinion as that of the same institution, without any material break; or
13.4.2
the member is concurrently
in receipt of a non-enhanced incapacity
pension by reference to the cessation of one appointment ("appointment A") and in active membership by reference to another appointment ("appointment B") and that member last became an active
member 5 or more years after the date the member became an active member by reference to appointment
A, provided that the date of becoming an active member by reference to appointment B is no more than 2 years after the cessation of appointment A.
13.5
Retrospective determination
Where a member has ceased to be in eligible employment before the trustee company has determined that the member is, and was on last ceasing to be in that eligible employment, suffering from incapacity, and the member has retired or ceased that eligible employment on the grounds of incapacity, the trustee company may, after consulting with the employer, decide that the member shall benefit under this rule from the date of cessation of eligible employment. Any amount that has as a result of that cessation of eligible employment been paid to the former member shall be deducted from the benefits payable to that individual under this rule.
Where a member has ceased to be in eligible employment before the trustee company has determined that the member is, and was on last ceasing to be in that eligible employment, suffering from incapacity, and the member has retired or ceased that eligible employment on the grounds of incapacity, the trustee company may, after consulting with the employer, decide that the member shall benefit under this rule from the date of cessation of eligible employment. Any amount that has as a result of that cessation of eligible employment been paid to the former member shall be deducted from the benefits payable to that individual under this rule.
13.6
Withdrawal or suspension of incapacity pension
Where a pensioner member entitled to a pension under this rule has not attained normal retirement age, the trustee company may:
Where a pensioner member entitled to a pension under this rule has not attained normal retirement age, the trustee company may:
13.6.1
withdraw or suspend the pension for any period prior to normal retirement age if the trustee company determines that the pensioner member is no longer suffering from incapacity; or
13.6.2
withdraw an enhanced incapacity
pension but continue to pay a non-enhanced incapacity pension if the trustee company determines that the pensioner member is suffering from partial incapacity and not total incapacity.
13.7
Resumption of incapacity pension
The trustee company may at any time up to normal retirement age resume payment of a pension under this rule which it has withdrawn, if the trustee company determines that the pensioner member is suffering partial incapacity or total incapacity.
The trustee company may at any time up to normal retirement age resume payment of a pension under this rule which it has withdrawn, if the trustee company determines that the pensioner member is suffering partial incapacity or total incapacity.
13.8
Later finding of total incapacity
13.8.1
If the trustee company determines
that a pensioner member,
who has not attained normal retirement
age and is in receipt of a non-enhanced incapacity pension, is suffering from total incapacity and not partial incapacity, the trustee company may pay an enhanced incapacity pension at the level at which it would have been
payable had the pensioner member retired on the grounds of total incapacity when this rule first applied to that pensioner member.
13.8.2
The trustee company may
further increase the enhanced incapacity
pension by an amount which the trustee company determines on actuarial advice to be equivalent to the enhanced incapacity lump sum which would have been payable if the pensioner member had retired on the grounds of total incapacity when this rule first applied to that pensioner member.
13.8.3
Where the member has
continued or resumed active membership while entitled to a non-enhanced
incapacity pension, the trustee company may, with the consent of the advisory committee, modify the amount of enhanced incapacity pension to which the member is entitled, by altering either or both of the number of years' additional pensionable service (subject to a maximum total of 10) or years' supplementary service.
13.9
Pension at normal retirement age where incapacity pension withdrawn
13.9.1
Where a pensioner member was
entitled under this rule to a pension which was withdrawn and not reinstated
prior to normal retirement age,
the pensioner member shall
be entitled on retirement on
or after normal retirement age to
a pension at a rate which is equal to the non-enhanced incapacity pension which would have been payable to the pensioner member at the date of
that pensioner member's first retirement under this rule.
13.9.2
Where a pensioner member was
entitled under this rule to a pension which was withdrawn and not reinstated
prior to normal retirement age,
the trustee company may,
in the case of a pensioner member who retired on the
grounds of total incapacity,
treat as a payment made on account of the pension under sub-rule 13.9.1 an
amount determined by the trustee
company, on actuarial advice, to be of equal value to the enhanced incapacity lump sum paid to that member on that retirement.
13.10
Minimum benefits
No pension payable under this rule at normal pension age shall be less than the minimum which would have been required by the preservation requirements if they had applied. No pension will be paid under this rule which is not a scheme pension within the meaning of Part 4 of FA 04.
No pension payable under this rule at normal pension age shall be less than the minimum which would have been required by the preservation requirements if they had applied. No pension will be paid under this rule which is not a scheme pension within the meaning of Part 4 of FA 04.
13.11
Determinations by the trustee company under this rule
Any determination made by the trustee company under this rule shall be made on the balance of probabilities, having regard to a medical opinion.
Any determination made by the trustee company under this rule shall be made on the balance of probabilities, having regard to a medical opinion.
14
Preserved Benefits
14.1
Entitlement
A member who on ceasing service has qualifying service shall be entitled to preserved benefits of:
Those benefits shall be reduced by the amount of any corresponding benefit which is concurrently payable under any of rules 8 (Benefits at normal retirement age), 10 (Late retirement), 11 (Early retirement at the instance of the employer), 12 (Member's early retirement) and 13 (Early pensions on incapacity) in respect of the same pensionable service.
A member who on ceasing service has qualifying service shall be entitled to preserved benefits of:
Those benefits shall be reduced by the amount of any corresponding benefit which is concurrently payable under any of rules 8 (Benefits at normal retirement age), 10 (Late retirement), 11 (Early retirement at the instance of the employer), 12 (Member's early retirement) and 13 (Early pensions on incapacity) in respect of the same pensionable service.
14.2
Date of payment
Subject to sub-rules 14.3 to 14.6, a deferred pensioner shall be entitled to preserved benefits payable at the same time and upon the happening of the same events as the corresponding long service benefits would be payable.
Subject to sub-rules 14.3 to 14.6, a deferred pensioner shall be entitled to preserved benefits payable at the same time and upon the happening of the same events as the corresponding long service benefits would be payable.
14.3
Incapacity
14.3.1
If a former member so
applies, in a form acceptable to the trustee company, or if the trustee company determines that regulation 8(3) of the Preservation Regulations is satisfied, the trustee company may bring preserved benefits into payment
before normal pension age,
without any adjustment for early payment, where the trustee company determines that the former member is suffering from total incapacity.
14.3.2
The trustee company must
be satisfied, before benefits are paid under sub-rule 14.3.1, that the value
of those benefits is at least equal to the value of the former member's preserved
benefits.
14.3.3
The trustee company may
discontinue such pension before normal pension age if it determines that the former member is no longer suffering from total incapacity, may reinstate that pension if it determines before normal pension age that total incapacity has returned, and shall reinstate it when the former member attains normal pension age.
14.3.4
The trustee company shall
make any determination under this sub-rule 14.3 on the balance of probabilities,
having regard to a medical opinion.
14.4
Former member subsequently made redundant
If a former member's eligible employment was terminated by reason of redundancy, or a former member retired in the interests of the efficient exercise of the institution's functions under sub-rule 11.2 (Applicable circumstances of retirement) when such former member was over minimum pension age, but did not have 5 years' pensionable service, and the former member's subsequent employment (whether or not that employment is an eligible employment) is terminated by reason of redundancy, the trustee company may bring the preserved benefits into payment, without any adjustment for early payment, on or after minimum pension age. Sub-rule 11.4 shall apply to any part of those preserved benefits that is attributable to pensionable service credited under rule 44 (Individual transfers in) insofar as that sub-rule would have applied on that termination of eligible employment or retirement.
If a former member's eligible employment was terminated by reason of redundancy, or a former member retired in the interests of the efficient exercise of the institution's functions under sub-rule 11.2 (Applicable circumstances of retirement) when such former member was over minimum pension age, but did not have 5 years' pensionable service, and the former member's subsequent employment (whether or not that employment is an eligible employment) is terminated by reason of redundancy, the trustee company may bring the preserved benefits into payment, without any adjustment for early payment, on or after minimum pension age. Sub-rule 11.4 shall apply to any part of those preserved benefits that is attributable to pensionable service credited under rule 44 (Individual transfers in) insofar as that sub-rule would have applied on that termination of eligible employment or retirement.
14.5
Former member entitled to early retirement benefits who initially elected
not to receive them
If a former member who was entitled to an immediate pension under rule 11 (Early retirement at the instance of the employer), but elected not to receive it, requests the trustee company to bring the preserved benefits into payment, the trustee company shall bring those preserved benefits into payment as soon as practicable following receipt of the request on or after the minimum pension age. Those preserved benefits shall not be adjusted for early payment, except for the application of an adjustment under sub-rule 11.4 (Adjustments to transferred in service) if such an adjustment would have been applicable at the date of cessation of service.
If a former member who was entitled to an immediate pension under rule 11 (Early retirement at the instance of the employer), but elected not to receive it, requests the trustee company to bring the preserved benefits into payment, the trustee company shall bring those preserved benefits into payment as soon as practicable following receipt of the request on or after the minimum pension age. Those preserved benefits shall not be adjusted for early payment, except for the application of an adjustment under sub-rule 11.4 (Adjustments to transferred in service) if such an adjustment would have been applicable at the date of cessation of service.
14.6
Other former members
In the case of a former member to whom sub-rules 14.3 to 14.5 do not apply:
In the case of a former member to whom sub-rules 14.3 to 14.5 do not apply:
14.6.1
the trustee company shall
bring the preserved benefits into
payment on request from the date specified by the former member where the former
member is aged 60 or over;
14.6.2
the trustee company may bring the preserved benefits into payment on request from the date specified
by the former member where
the former member has attained minimum pension age, but not age
60,
on such terms as the trustee
company shall decide, acting on actuarial advice, subject to complying with the preservation requirements and provided that the early payment of the preserved benefits does not result
in the pension payable to the former
member being less than the GMP.15
Pension Increases
15.1
Pensions, lump sums and preserved benefits
Any pension benefits currently payable, or coming into payment, out of the fund (except for any supplementary benefits and GMPs) shall be increased under Part I of the Increase Act as if those benefits were official pensions. Any lump sum (other than any supplementary benefits) becoming payable in respect of the death or retirement of a former member, or in respect of the coming into payment of pension credit rights, under the scheme shall be increased as if it were a lump sum benefit to which section 9 of the Increase Act applied.
Any pension benefits currently payable, or coming into payment, out of the fund (except for any supplementary benefits and GMPs) shall be increased under Part I of the Increase Act as if those benefits were official pensions. Any lump sum (other than any supplementary benefits) becoming payable in respect of the death or retirement of a former member, or in respect of the coming into payment of pension credit rights, under the scheme shall be increased as if it were a lump sum benefit to which section 9 of the Increase Act applied.
15.2
GMP increases
GMPs shall, insofar as they are attributable to earnings in the tax years 1988/89 to 1996/97 inclusive, be increased in accordance with section 109 of PSA 93. If the additional pension in a pension or allowance under Part 2 of the Social Security Contributions and Benefits Act 1992, in respect of a period of contracted-out employment under the scheme or a transfer arrangement which was after 5 April 1978 and before 6 April 1997, is less than the aggregate of the GMPs for that period, as duly notified to the trustee company, the aggregate amount of the pension increases under this rule, on the pension in respect of that period, shall be no less than if the pension benefits including GMPs were increased under Part 1 of the Increase Act, as if the relevant direction from HM Treasury under section 59A of the Social Security Pensions Act 1975 applied to this scheme.
GMPs shall, insofar as they are attributable to earnings in the tax years 1988/89 to 1996/97 inclusive, be increased in accordance with section 109 of PSA 93. If the additional pension in a pension or allowance under Part 2 of the Social Security Contributions and Benefits Act 1992, in respect of a period of contracted-out employment under the scheme or a transfer arrangement which was after 5 April 1978 and before 6 April 1997, is less than the aggregate of the GMPs for that period, as duly notified to the trustee company, the aggregate amount of the pension increases under this rule, on the pension in respect of that period, shall be no less than if the pension benefits including GMPs were increased under Part 1 of the Increase Act, as if the relevant direction from HM Treasury under section 59A of the Social Security Pensions Act 1975 applied to this scheme.
15.3
Section 8(2)(a) of the Pensions (Increase) Act 1971
Sub-rules 15.1 and 15.2 shall have effect as if section 8(2)(a) of the Increase Act were omitted from that Act.
Sub-rules 15.1 and 15.2 shall have effect as if section 8(2)(a) of the Increase Act were omitted from that Act.
15.4
Supplementary benefits
The trustee company may, on actuarial advice, increase any pension benefits currently or prospectively payable which are supplementary benefits, having regard to rises in the RPI and to the assets and liabilities of the supplementary section.
The trustee company may, on actuarial advice, increase any pension benefits currently or prospectively payable which are supplementary benefits, having regard to rises in the RPI and to the assets and liabilities of the supplementary section.
15.5
Statutory increases
Notwithstanding sub-rules 15.1 to 15.4, statutory increases under Chapters 2 and 3 of Part 4 of PSA 93, section 51 of PA 95 and section 40 of WRPA 99 shall be applied to the extent that they are greater than the increases under those sub-rules.
Notwithstanding sub-rules 15.1 to 15.4, statutory increases under Chapters 2 and 3 of Part 4 of PSA 93, section 51 of PA 95 and section 40 of WRPA 99 shall be applied to the extent that they are greater than the increases under those sub-rules.
16
Early Leavers Without Preserved Benefits
16.1
Application of this Rule
This rule applies to a former member who does not have qualifying service on ceasing service.
This rule applies to a former member who does not have qualifying service on ceasing service.
16.2
Refund of contributions
Such a former member is entitled to a refund of:
Such a former member is entitled to a refund of:
16.2.1
that individual's contributions (excluding MPAVCs), subject to deduction of any tax and an amount in respect of
any CEP, plus compound interest at the rate of 4% per annum (or such other rate as
the trustee company may determine);
and
16.3
Pension and lump sum option
16.3.1
Notwithstanding sub-rule 16.2, a former member may elect, in lieu of a refund of contributions, for
the amount under sub-rule 16.2 to be applied without the deductions to provide
a pension and lump sum for the former
member at normal retirement
age (and corresponding payments on death for the former member's spouse or civil partner, dependants and eligible children)
of such amounts as the trustee company may determine, acting on actuarial advice.
16.3.2
Contributions made by an employer under sub-rule 38.1 (Salary sacrifice) in respect of a member who has become a former
member to whom this rule applies shall be included in the amount to
be applied to provide the benefits payable under sub-rule 16.3.1.
16.3.3
Such a former member may
opt to have a transfer payment, calculated by reference to pensionable service and pensionable salary at the date of cessation of service, made to a transfer
arrangement as if Chapter
4 of Part 4 of PSA 93 applied.
17
Transfers Out
17.1
Statutory right
A former member has the right to request a transfer payment of that individual's accrued rights under the scheme to a transfer arrangement in accordance with Chapter 4 of Part 4 of PSA 93.
A former member has the right to request a transfer payment of that individual's accrued rights under the scheme to a transfer arrangement in accordance with Chapter 4 of Part 4 of PSA 93.
17.2
Special reciprocal arrangements
Where the trustee company has entered into any special reciprocal arrangements under sub-rule 44.7 the amount transferred to another scheme that participates in those arrangements shall be calculated accordingly.
Where the trustee company has entered into any special reciprocal arrangements under sub-rule 44.7 the amount transferred to another scheme that participates in those arrangements shall be calculated accordingly.
17.3
Optants out
Where a member has withdrawn from the scheme under sub-rule 36.3 (Withdrawal from membership), the trustee company shall, if so requested by that person, make a transfer payment to a transfer arrangement in respect of that part of that person's accrued rights under the scheme referable to pensionable service accrued or credited after 5 April 1988 and may do so in respect of that person's other accrued rights under the scheme.
Where a member has withdrawn from the scheme under sub-rule 36.3 (Withdrawal from membership), the trustee company shall, if so requested by that person, make a transfer payment to a transfer arrangement in respect of that part of that person's accrued rights under the scheme referable to pensionable service accrued or credited after 5 April 1988 and may do so in respect of that person's other accrued rights under the scheme.
17.4
Recipient of transfer payment
The trustee company may make a transfer payment only to the trustees or administrator of a transfer arrangement.
The trustee company may make a transfer payment only to the trustees or administrator of a transfer arrangement.
17.5
Money purchase AVC transfer
A transfer payment from the scheme in respect of a member shall include the member's fund. The member's fund may at the member's election be paid to any money purchase additional voluntary contribution facility maintained in conjunction with an occupational pension scheme to which the transfer payment is made.
A transfer payment from the scheme in respect of a member shall include the member's fund. The member's fund may at the member's election be paid to any money purchase additional voluntary contribution facility maintained in conjunction with an occupational pension scheme to which the transfer payment is made.
18
Buy Outs
18.1
Power to purchase insurance policy
The trustee company, on actuarial advice, may purchase from any insurer a policy of insurance securing any deferred or immediate benefits payable under the rules.
The trustee company, on actuarial advice, may purchase from any insurer a policy of insurance securing any deferred or immediate benefits payable under the rules.
18.2
Insurance policy in the name of the beneficiary
The policy of insurance may be purchased in the name of the person for whom the benefits are secured, but only with the consent of that person, subject to sub-rule 18.4. Such an insurance policy shall not form part of the fund and shall be in complete satisfaction of the benefits to which that person has been entitled under the rules. That person shall thereafter have no claim or interest in the fund in respect of those benefits.
The policy of insurance may be purchased in the name of the person for whom the benefits are secured, but only with the consent of that person, subject to sub-rule 18.4. Such an insurance policy shall not form part of the fund and shall be in complete satisfaction of the benefits to which that person has been entitled under the rules. That person shall thereafter have no claim or interest in the fund in respect of those benefits.
18.3
Existing allocation terms
A policy purchased under sub-rules 18.1 and/or 18.2 shall include provision for a beneficiary corresponding to any allocation made under rule 28, where the policy benefits are secured for an individual who has made such an allocation.
A policy purchased under sub-rules 18.1 and/or 18.2 shall include provision for a beneficiary corresponding to any allocation made under rule 28, where the policy benefits are secured for an individual who has made such an allocation.
18.4
Preserved benefits
The trustee company may purchase a policy which satisfies the requirements of section 19 of PSA 93 in order to discharge its liability in whole or in part in respect of a deferred pensioner, with or without that individual's consent, subject to complying with the preservation requirements and provided that the trustee company is reasonably satisfied on actuarial advice that the payment it makes to the insurer is at least equal in value to the preserved benefits.
The trustee company may purchase a policy which satisfies the requirements of section 19 of PSA 93 in order to discharge its liability in whole or in part in respect of a deferred pensioner, with or without that individual's consent, subject to complying with the preservation requirements and provided that the trustee company is reasonably satisfied on actuarial advice that the payment it makes to the insurer is at least equal in value to the preserved benefits.
19
Conversion of Lump Sum to Pension and Pension to Lump Sum
19.1
Member election
A member or former member may elect by notice in writing to the trustee company, no later than one month before the anticipated date of retirement or drawing benefits (or within such later period as the trustee company may allow), either to convert such part of that individual's pension to an additional lump sum (provided that the total increased lump sum shall not exceed the authorised maximum and that the pension shall not be reduced below the individual's GMP), or to convert the whole or such part of the individual's lump sum to an additional pension, as the individual may determine and specify in the notice, on a basis of conversion determined by the trustee company on actuarial advice.
A member or former member may elect by notice in writing to the trustee company, no later than one month before the anticipated date of retirement or drawing benefits (or within such later period as the trustee company may allow), either to convert such part of that individual's pension to an additional lump sum (provided that the total increased lump sum shall not exceed the authorised maximum and that the pension shall not be reduced below the individual's GMP), or to convert the whole or such part of the individual's lump sum to an additional pension, as the individual may determine and specify in the notice, on a basis of conversion determined by the trustee company on actuarial advice.
19.2
Effect on death benefits
The exercise of an election to convert lump sum to pension under sub-rule 19.1 shall not result in any additional benefit becoming payable on the individual's death, except for lump sum benefits on death of a pensioner member under rule 21.
The exercise of an election to convert lump sum to pension under sub-rule 19.1 shall not result in any additional benefit becoming payable on the individual's death, except for lump sum benefits on death of a pensioner member under rule 21.
19.3
Revocability
The trustee company may permit an individual to revoke an election under this rule by written notice to the trustee company at least 15 days prior to the individual's anticipated date of retirement or drawing benefits, or within such later period as the trustee company may allow prior to the individual becoming entitled to actual receipt of the pension or lump sum to be converted.
The trustee company may permit an individual to revoke an election under this rule by written notice to the trustee company at least 15 days prior to the individual's anticipated date of retirement or drawing benefits, or within such later period as the trustee company may allow prior to the individual becoming entitled to actual receipt of the pension or lump sum to be converted.
19.4
Enhanced incapacity pension cases
A pensioner member to whom an enhanced incapacity pension or enhanced incapacity lump sum is granted under sub-rule 13.8 (Later finding of total incapacity) shall be deemed to retire or draw benefits on the date of the granting of those benefits for the purposes of any election to convert pension into lump sum under this rule or to revoke such an election.
A pensioner member to whom an enhanced incapacity pension or enhanced incapacity lump sum is granted under sub-rule 13.8 (Later finding of total incapacity) shall be deemed to retire or draw benefits on the date of the granting of those benefits for the purposes of any election to convert pension into lump sum under this rule or to revoke such an election.
20
Lump Sum Benefits on Death in Active Membership
20.1
On the death of a member in active membership, the trustee company shall hold on the discretionary trusts a lump sum benefit of the greater of A and B,
where:
C = the lump sum, but calculated by reference to pensionable service only, which would have been payable had the member retired on the grounds of total incapacity immediately before death; and
D = where the active member was also a deferred pensioner at the date of death, the amount of the lump sum death in deferment
benefit which would have been payable under sub-rule 22.1.
20.2
Where a member dies
in active membership before normal retirement age and does
not leave a spouse, civil partner, dependant or child
who is entitled to a survivor's, dependant's or children's pension, the trustee company shall hold on the discretionary trusts a lump sum
benefit of the sum that the trustee
company determines, on actuarial
advice, to be equal to the value of the pension that would otherwise
have been payable to the spouse or civil partner based on supplementary
service only, calculated as follows:
21
Lump Sum Benefits on Death of Pensioner Member
21.1
Amount of lump sum
Subject to sub-rule 21.3 (5 years' pension limit), on the death of a pensioner member, the trustee company shall hold on the discretionary trusts a lump sum benefit of A minus F, where:
Subject to sub-rule 21.3 (5 years' pension limit), on the death of a pensioner member, the trustee company shall hold on the discretionary trusts a lump sum benefit of A minus F, where:
B = 3 times the annual rate of salary of the member as
at the day before the date of retirement (or, if the pensioner member attained normal retirement
age before 6 June 2007, as at the day before normal retirement age);
D = the lump sum, but calculated by reference to pensionable service only, which would have been payable had the member retired on the grounds of total incapacity immediately before death;
E = where the pensioner member was also a deferred pensioner at the date of death, the amount of the lump sum death in deferment
benefit which would have been payable under sub-rule 22.1; and
F = the pension and lump sum benefit received by the pensioner member calculated by reference to pensionable service only.
21.2
Death in receipt of an incapacity pension
Subject to sub-rule 21.3, the trustee company shall hold an additional lump sum death benefit on the discretionary trusts, calculated as set out in schedule 8, on the death before normal retirement age of a pensioner member who is in receipt of an incapacity pension under rule 13 (Early pensions on incapacity) and who either:
Subject to sub-rule 21.3, the trustee company shall hold an additional lump sum death benefit on the discretionary trusts, calculated as set out in schedule 8, on the death before normal retirement age of a pensioner member who is in receipt of an incapacity pension under rule 13 (Early pensions on incapacity) and who either:
21.2.2
retired or ceased eligible employment on the grounds
of total incapacity and is
in receipt of an enhanced incapacity
pension.
21.3
5 years' pension limit
The aggregate of the benefits payable under sub-rules 21.1 and 21.2 shall not exceed A minus B, where:
The aggregate of the benefits payable under sub-rules 21.1 and 21.2 shall not exceed A minus B, where:
A = the amount of the lump sum and 5 years' pension at the rates applicable
to the pensioner member in
respect of each of the lump sums and pensions payable from the scheme to that pensioner
member; and
B = the amount of the lump sums and pensions paid to the pensioner member from the scheme prior to the pensioner
member's death.
22
Lump Sum Benefits on Death in Deferment
22.1
On the death of a person entitled to preserved benefits, in respect of whom no other lump sum death benefits
are payable under these rules,
a lump sum of:
shall be paid from the fund and held by the trustee company upon the discretionary trusts.
shall be paid from the fund and held by the trustee company upon the discretionary trusts.
22.2
On the death of a deferred
pensioner who did not have qualifying service on ceasing service, in respect of whom no other lump sum death benefits are payable
under these rules, and who
made an election to take a pension and lump sum under sub-rule 16.3 (Pension and lump sum option), the death
benefits payable shall be of such amount as the trustee company acting on actuarial advice shall have specified.
23
Survivor's Pension on Death of Active Member
23.1
Initial survivor's pension
On the death of an active member with 5 or more years' pensionable service (calculated without applying any part-time service fraction for this purpose), a pension shall be payable to the surviving spouse or civil partner for the first 3 months beginning with the day after the date of the death at the rate of the member's pensionable salary, disregarding any part-time service fraction.
On the death of an active member with 5 or more years' pensionable service (calculated without applying any part-time service fraction for this purpose), a pension shall be payable to the surviving spouse or civil partner for the first 3 months beginning with the day after the date of the death at the rate of the member's pensionable salary, disregarding any part-time service fraction.
23.2
Survivor's pension for life on death before normal retirement age
Where an active member dies before normal retirement age, the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of death of the member and the date of expiry of any pension under sub-rule 23.1, to a pension of:
minus the amount of any discretionary dependant's pension paid under sub-rule 26.2 (Where the member or pensioner member was not living with the spouse or civil partner).
Where an active member dies before normal retirement age, the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of death of the member and the date of expiry of any pension under sub-rule 23.1, to a pension of:
minus the amount of any discretionary dependant's pension paid under sub-rule 26.2 (Where the member or pensioner member was not living with the spouse or civil partner).
23.3
Survivor's pension for life on death after normal retirement age
Where an active member dies after normal retirement age, the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of death of the member and the date of expiry of any pension under sub-rule 23.1, to a pension of one half of the pension which would have been payable to the member under rule 10 (Late retirement) if the member had retired on the day before death,
Where an active member dies after normal retirement age, the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of death of the member and the date of expiry of any pension under sub-rule 23.1, to a pension of one half of the pension which would have been payable to the member under rule 10 (Late retirement) if the member had retired on the day before death,
24
Survivor's Pension on Death of a Pensioner Member
24.1
Initial survivor's pension
On the death of a pensioner member with 5 or more years' pensionable service (calculated without applying any part-time service fraction for this purpose), a pension shall be payable to the surviving spouse or civil partner for the first 3 months beginning with the day after the date of the death at the rate of pension being paid to the pensioner member at date of the death, disregarding any allocation by the pensioner member under rule 28 and any reduction made to this pension under any of rule 48 (Tax), sub-rule 49.3 (Lifetime allowance charge) or schedule 10 (Deductions for aggregable benefits).
On the death of a pensioner member with 5 or more years' pensionable service (calculated without applying any part-time service fraction for this purpose), a pension shall be payable to the surviving spouse or civil partner for the first 3 months beginning with the day after the date of the death at the rate of pension being paid to the pensioner member at date of the death, disregarding any allocation by the pensioner member under rule 28 and any reduction made to this pension under any of rule 48 (Tax), sub-rule 49.3 (Lifetime allowance charge) or schedule 10 (Deductions for aggregable benefits).
24.2
Survivor's pension for life
Except where sub-rule 24.3 applies, where a pensioner member dies, the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of death of the pensioner member and the date of expiry of any pension under sub-rule 24.1, to a pension of:
plus, if the pensioner member retired on the grounds of total incapacity:
minus the amount of any discretionary dependant's pension paid under sub-rule 26.2 (Where the member or pensioner member was not living with the spouse or civil partner).
Except where sub-rule 24.3 applies, where a pensioner member dies, the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of death of the pensioner member and the date of expiry of any pension under sub-rule 24.1, to a pension of:
plus, if the pensioner member retired on the grounds of total incapacity:
minus the amount of any discretionary dependant's pension paid under sub-rule 26.2 (Where the member or pensioner member was not living with the spouse or civil partner).
24.3
Survivor's pension for life on death after late retirement
Where a pensioner member dies and was receiving a pension under rule 10 (Late retirement):
Where a pensioner member dies and was receiving a pension under rule 10 (Late retirement):
the surviving spouse or civil
partner shall be entitled to a pension for life, from the day after
the later of the date of death and the date of expiry of any pension under sub-rule 24.1, of one-half
of the pension payable to the pensioner
member at the date of retirement under rule 10,
25
Survivor's Pension on Death in Deferment
25.1
Initial survivor's pension
On the death of a person entitled to preserved benefits with 5 or more years' pensionable service (calculated without applying the part-time service fraction for this purpose), in respect of whom there is no entitlement to any other pension under these rules, the surviving spouse or civil partner shall be entitled, for the first 3 months beginning with the day after the date of the death, to a pension of:
On the death of a person entitled to preserved benefits with 5 or more years' pensionable service (calculated without applying the part-time service fraction for this purpose), in respect of whom there is no entitlement to any other pension under these rules, the surviving spouse or civil partner shall be entitled, for the first 3 months beginning with the day after the date of the death, to a pension of:
25.2
Survivor's pension for life
On the death of a person entitled to preserved benefits, in respect of whom there is no entitlement to any other pension under any of rules 24 (Survivor's pension on death of a pensioner member) to 26 (Dependant's pension), the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of the death of the pensioner member and the date of expiry of the initial pension under sub-rule 25.1, to a pension of:
On the death of a person entitled to preserved benefits, in respect of whom there is no entitlement to any other pension under any of rules 24 (Survivor's pension on death of a pensioner member) to 26 (Dependant's pension), the surviving spouse or civil partner shall be entitled for life, from the day after the later of the date of the death of the pensioner member and the date of expiry of the initial pension under sub-rule 25.1, to a pension of:
26
Dependant's Pension
26.1
Where the member or pensioner member leaves no spouse or civil partner
Where a member or pensioner member dies without leaving a spouse or civil partner, the trustee company may pay to a dependant of the member or pensioner member a pension not exceeding:
Where a member or pensioner member dies without leaving a spouse or civil partner, the trustee company may pay to a dependant of the member or pensioner member a pension not exceeding:
26.1.1
for the first 3 months beginning with the day after the date of the
death, that which would have been payable under sub-rule 23.1 (Initial survivor's pension) or 24.1 (Initial survivor's pension); and
26.1.2
after those first 3 months, for such period as the trustee company may decide, that which would have been payable under sub-rule 23.2 (Survivor's
pension for life on death before normal retirement age), 24.2 (Survivor's pension for life) or 24.3 (Survivor's pension for life on death after late retirement),
but calculated by reference to pensionable service only.
26.2
Where the member or pensioner member was not living with the spouse
or civil partner
26.2.1
Where a member or pensioner member was not at the
date of death living with any spouse or civil partner, the trustee
company may pay a pension, for such period as the trustee company may decide, to any dependant other than an eligible
child, not exceeding the pension payable under sub-rule 24.2 (Survivor's pension for life), but calculated
by reference to supplementary service only.
26.3
Death of a deferred pensioner
Where a person entitled to preserved benefits, who is not entitled to any other pension under this rule, dies unmarried and no pension is payable to a civil partner, the trustee company may pay a pension to a dependant (other than an eligible child), of such an amount and for such a period as the trustee company shall decide, not exceeding the pension which would have been payable under rule 25 (Survivor's pension on death in deferment) if there had been a surviving spouse or civil partner.
Where a person entitled to preserved benefits, who is not entitled to any other pension under this rule, dies unmarried and no pension is payable to a civil partner, the trustee company may pay a pension to a dependant (other than an eligible child), of such an amount and for such a period as the trustee company shall decide, not exceeding the pension which would have been payable under rule 25 (Survivor's pension on death in deferment) if there had been a surviving spouse or civil partner.
26.4
Expression of wishes
In exercising its discretion under this rule, the trustee company shall have regard to, but not be bound by, any wishes of the member, pensioner member or deferred pensioner that are expressed by him or her in writing.
In exercising its discretion under this rule, the trustee company shall have regard to, but not be bound by, any wishes of the member, pensioner member or deferred pensioner that are expressed by him or her in writing.
27
Children's Pensions
27.1
Death of an active or pensioner member
Except where schedule 9 (Children's pensions where deceased was in service after normal retirement age) applies, from the next day after the death of an active member or a pensioner member, then, for any period when there are eligible children, there shall be payable in respect of the eligible children a pension at the annual rate of:
Except where schedule 9 (Children's pensions where deceased was in service after normal retirement age) applies, from the next day after the death of an active member or a pensioner member, then, for any period when there are eligible children, there shall be payable in respect of the eligible children a pension at the annual rate of:
27.1.2
whilst no pension is payable to any surviving spouse, civil partner or dependant:
of which
shall be a charge on the supplementary section.
27.2
Death of a deferred pensioner
From the day after the date of the death of a person entitled to preserved benefits, who is not entitled to any other pension under this rule, there shall be payable in respect of the eligible children a pension at the annual rate of:
One third of the above pension amount shall be debited to and be a charge on the supplementary section.
From the day after the date of the death of a person entitled to preserved benefits, who is not entitled to any other pension under this rule, there shall be payable in respect of the eligible children a pension at the annual rate of:
One third of the above pension amount shall be debited to and be a charge on the supplementary section.
27.3
Where a surviving spouse or civil partner is entitled to a GMP but not under rules 23 to 25
[See 2nd reference]
[See 3rd reference]
to any greater benefit, the benefit under sub-rules 27.1.2 and 27.2.2 shall
apply subject to the deduction of the GMP, provided that the net benefit shall be no less than would have
been payable under sub-rules 27.1.1 and 27.2.1
[See 2nd reference]
.
27.4
Splitting of pension
The trustee company may split the pension payable under this rule into a number of separate pensions payable to any number of persons approved by the trustee company.
The trustee company may split the pension payable under this rule into a number of separate pensions payable to any number of persons approved by the trustee company.
27.5
Payment to persons for the benefit of eligible children
The trustee company may pay the pension or pensions to one or more persons who undertake to apply the pension or pensions for the maintenance or benefit of one or more of the eligible children. The trustee company shall have no liability for the way in which such a pension is applied.
The trustee company may pay the pension or pensions to one or more persons who undertake to apply the pension or pensions for the maintenance or benefit of one or more of the eligible children. The trustee company shall have no liability for the way in which such a pension is applied.
28
Allocation
28.1
Persons who may surrender pension for another beneficiary
Any one of the following persons who has attained minimum pension age may make a written application to the trustee company, in such form as may be specified by the trustee company, before any pension comes into payment to that person under the scheme, for an allocation of such pension:
Any one of the following persons who has attained minimum pension age may make a written application to the trustee company, in such form as may be specified by the trustee company, before any pension comes into payment to that person under the scheme, for an allocation of such pension:
28.1.1
a member with 5 or more
years' pensionable service (calculated
without applying the part-time service
fraction for this purpose) who is in service;
28.1.2
a former member who
is entitled to preserved benefits, and whose benefits have not come into payment; or
28.1.3
an ex-spouse participant whose pension credit rights under the scheme have not come into payment.
28.2
Exceptions
No allocation may be made:
No allocation may be made:
28.2.1
by a member or former member who has applied for
a pension under rule 13 (Early
pensions on incapacity);
28.2.2
by a member or former member during a period when membership is suspended under rule 39 (Temporary absence) or
such person is absent from work owing to sickness;
28.2.3
in respect of any additional pension derived from conversion of lump
sum into pension under sub-rules
19.1 (Member election); or
28.2.4
in respect of such part of any pension as would be required at the election
of the ex-spouse participant to
be commuted for a lump sum of 12 times its amount.
28.3
Information to be included with the application for allocation
An applicant for allocation must include with the application such information as the trustee company may reasonably require, including (without limitation) the following:
An applicant for allocation must include with the application such information as the trustee company may reasonably require, including (without limitation) the following:
28.3.1
the name of the beneficiary in favour of whom the allocation is to be made and, where the beneficiary is not the applicant's spouse or civil partner, the nature of the beneficiary's dependency on the applicant;
28.3.3
whether or not the allocation is to be calculated on the assumption that it is to be cancelled if
the beneficiary predeceases
the member;
28.3.4
a report from the applicant's own medical adviser (obtained by the applicant
at the applicant's own expense) in a form specified by the trustee company.
28.4
Number of beneficiaries
A person may make more than one application for allocations either in favour of the same beneficiary or different beneficiaries.
A person may make more than one application for allocations either in favour of the same beneficiary or different beneficiaries.
28.5
Amount of pension payable to the applicant and the beneficiary
The trustee company shall determine on actuarial advice the amount of the pension payable to the beneficiary following the allocation and the amount of the remaining pension payable to the applicant.
The trustee company shall determine on actuarial advice the amount of the pension payable to the beneficiary following the allocation and the amount of the remaining pension payable to the applicant.
28.6
Procedure on receipt of application for allocation
On receipt of an application for allocation complying with this rule and with the trustee company's requirements, and of any such further information as the trustee company may reasonably require, the trustee company shall accept the application unless:
On receipt of an application for allocation complying with this rule and with the trustee company's requirements, and of any such further information as the trustee company may reasonably require, the trustee company shall accept the application unless:
28.6.1
the applicant shall in writing have withdrawn the application before
issue by the trustee company of
a written acceptance;
28.6.3
the amount surrendered would, when aggregated with all other allocations by the applicant, exceed the pension remaining payable
to the applicant;
28.7
Form of acceptance or rejection
The trustee company's acceptance or rejection of an application for allocation shall be made in writing, and in the case of an acceptance, shall be binding at the time of receipt by the applicant, and in the case of a rejection, shall include the trustee company's reasons for the rejection.
The trustee company's acceptance or rejection of an application for allocation shall be made in writing, and in the case of an acceptance, shall be binding at the time of receipt by the applicant, and in the case of a rejection, shall include the trustee company's reasons for the rejection.
28.8
Medical reports
If the trustee company rejects an application on the grounds that the medical report is not satisfactory to it, the applicant may, at the applicant's own expense, request a further medical report (following medical examination if the trustee company so requires) from a medical adviser selected by the trustee company.
After considering such further report, the trustee company may:
If the trustee company rejects an application on the grounds that the medical report is not satisfactory to it, the applicant may, at the applicant's own expense, request a further medical report (following medical examination if the trustee company so requires) from a medical adviser selected by the trustee company.
After considering such further report, the trustee company may:
28.8.3
accept the application on such special terms as it considers appropriate,
subject to the applicant's written agreement within 21 days of being notified
of the trustee company's decision.
28.9
Cancellation of allocation
An allocation shall be cancelled:
An allocation shall be cancelled:
28.9.1
if the beneficiary predeceases
the member, where the allocation was calculated on the
assumption that, if the beneficiary predeceases the member,
it should be cancelled;
28.9.3
at the applicant's written request with the trustee company's agreement, subject to the trustee company on actuarial
advice recalculating the benefits payable in respect of the applicant
to take account of the risk already borne by the fund during the period when the allocation was accepted and not cancelled;
28.9.4
if a member applicant
dies or retires on the grounds
of incapacity within 12 months
of making the application, and the trustee company is satisfied that the medical report supplied by the member was misleading, or was based
on misleading information supplied by the member; or
29
Payment of Pensions
29.1
All pensions shall be payable at such periods and in such manner as
the trustee company shall
decide. Any pension may be paid in advance if the trustee company thinks fit.
29.2
Pensions are payable only to a pensioner's bank account, or in such other manner as the trustee company thinks fit. Any agreement with the trustee company for any other method of payment shall be at the risk
of the pensioner concerned.
29.3
Before making or sanctioning any payment out of the fund, the trustee company may require the production of such evidence as it may think fit of
any material fact.
29.4
Where any payment due from the trustee company under the rules is not paid within 6 months (or such shorter period as the trustee company may decide), interest
shall be payable from the expiry of that period up to the date of payment
at a rate which the trustee company, acting on actuarial advice, shall decide.
30
Multiple Appointments
30.1
Contemporaneous periods of service
Subject to sub-rule 30.5, a MAM shall not be entitled to count contemporaneous periods of service in each eligible employment as separate period of pensionable service.
Subject to sub-rule 30.5, a MAM shall not be entitled to count contemporaneous periods of service in each eligible employment as separate period of pensionable service.
30.2
Member contributions
The contributions payable by a MAM shall be based on the aggregate salary from all eligible employments.
The contributions payable by a MAM shall be based on the aggregate salary from all eligible employments.
30.3
Calculation of pensionable service
Where a MAM ceases one of his/her eligible employments in order to take up a new eligible employment, the period of service in the employment being ceased shall count as a period of pensionable service. Where more than one eligible employment ceases, the longest period of service referable to any one of those eligible employments shall count as pensionable service.
Where a MAM ceases one of his/her eligible employments in order to take up a new eligible employment, the period of service in the employment being ceased shall count as a period of pensionable service. Where more than one eligible employment ceases, the longest period of service referable to any one of those eligible employments shall count as pensionable service.
30.4
Cessation of lesser appointment
30.4.1
A MAM who ceases to
hold, or withdraws from membership in respect of, a lesser appointment that the MAM has held
for not less than 2 years,
shall be treated as
ceasing membership, notwithstanding
that the MAM continues in active membership in respect of the greater appointment, and may be granted on or after minimum pension age the following deferred benefits in respect of the lesser appointment:
and
30.4.2
Where benefits are payable under sub-rule 30.4.1, the salary and pensionable service in respect of the lesser
appointment shall be disregarded for the purposes of any calculations
of benefits relating to the greater
appointment held by the MAM.
30.5
Cessation of greater appointment
30.5.1
Subject to sub-rule 30.5.2, a MAM who ceases to hold a greater appointment but retains a lesser appointment, and who would, but for the retention of the lesser appointment, be entitled
to an immediate pension under these rules, may elect to take an immediate pension and lump sum, in respect
of the greater appointment,
of:
and
(2)
a lump sum of 3 times that annual pension,
where:
where:
PS is pensionable salary determined
only by reference to the salary of the greater appointment, after deducting any actual or prospective increase in salary for the lesser appointment resulting from the cessation of the greater appointment.
30.5.2
The payment of the immediate pension under sub-rule 30.5.1 is subject
to the trustee company and
the employer being satisfied
that it is unlikely that the MAM will enter employment which, when aggregated with any other eligible employment, would amount
substantially to a full-time employment.
30.5.3
If upon ceasing the greater
appointment the MAM is
not entitled to an immediate pension under sub-rule 30.5.1, or does not exercise
the option to receive it, the MAM will be entitled to the preserved benefits set out in
sub-rule
30.4, but with the substitution of "
greater appointment
" for "
lesser appointment
" and vice versa.
30.6
New pensionable appointment of significantly higher grade
Where a MAM to whom preserved benefits have been granted under sub-rules 30.4.1 or 30.5.3 [See 2nd reference] subsequently takes up a new eligible employment of a significantly higher grade in place of, or in addition to, the remaining eligible employments, the preserved benefits will be cancelled and sub-rule 30.3 will apply to the MAM.
Where a MAM to whom preserved benefits have been granted under sub-rules 30.4.1 or 30.5.3 [See 2nd reference] subsequently takes up a new eligible employment of a significantly higher grade in place of, or in addition to, the remaining eligible employments, the preserved benefits will be cancelled and sub-rule 30.3 will apply to the MAM.
30.7
Death in deferment following cessation of lesser appointment
If any death benefits become payable in respect of a MAM who is prospectively entitled to preserved benefits under sub-rules 30.4.1 or 30.5.3 [See 2nd reference] , those death benefits will be computed on the basis of pensionable salary calculated by reference only to the salary of the relevant lesser appointment or greater appointment (after deducting any actual or prospective increase in salary for the other eligible employments resulting from the cessation of that appointment) and pensionable service by reference only to the years of service in that appointment.
If any death benefits become payable in respect of a MAM who is prospectively entitled to preserved benefits under sub-rules 30.4.1 or 30.5.3 [See 2nd reference] , those death benefits will be computed on the basis of pensionable salary calculated by reference only to the salary of the relevant lesser appointment or greater appointment (after deducting any actual or prospective increase in salary for the other eligible employments resulting from the cessation of that appointment) and pensionable service by reference only to the years of service in that appointment.
30.8
Effect of member withdrawing or opting out
30.8.1
Withdrawal from the scheme for different appointments
Except as provided in sub-rule 30.8.2, a MAM may elect to withdraw from membership, or not to become a member, separately in respect of one or more eligible employments.
30.8.2
Withdrawal from the scheme for the greater appointment
Where a MAM elects to
withdraw from membership,
or not to become a member,
in respect of a greater appointment, the MAM shall be
deemed to have elected also to withdraw from membership, or not to become a member, in respect of any lesser appointment.
30.8.3
Withdrawal from the scheme for the lesser appointment
A MAM who elects to
withdraw from membership,
or not to become a member,
in respect of a lesser appointment may become a member again
only either:
(1)
within 6 months of the withdrawal and subject to supplying a declaration
in such form as the trustee company may require that the MAM is in normal health; or
(2)
if the MAM is also becoming
a member again in respect
of the greater appointment under sub-rule 5.3 (Automatic entry
to membership) or 5.13 (Previous
alternative benefits service).
30.8.4
Calculation of salary in cases of withdrawal
Where a MAM cannot become
a member again under sub-rule
30.8.3, no remuneration in respect of the lesser appointment shall count as salary.
30.9
Trustee company's power to make regulations
The trustee company may make regulations, either generally or in respect of a particular MAM or institution, in relation to the application of this rule.
The trustee company may make regulations, either generally or in respect of a particular MAM or institution, in relation to the application of this rule.
31
Part-time Service
31.1
Computation of salary
31.1.1
The salary of a member for any period of part-time service shall, for the purposes of calculating pensionable salary, be divided by the part-time service fraction.
31.1.2
Where, in addition to remuneration for part-time service, a member receives remuneration in eligible employment for which part or all of the salary does not reflect the part-time character of the employment,
or where the employment is VT employment, the part-time service fraction shall be whichever is applicable of paragraphs (b) to (e) of the definition
of that term.
31.1.3
The trustee company may
modify the calculation of salary to enable any employer or
former employer to satisfy
any order, declaration or recommendation under the Part-timers Regulations or, with the consent of the institution and of the member (or former member),
to give effect to any agreement to stay or compromise any proceedings between
them or to comply with those regulations. Neither the consent of the Funding Council nor that of the JNC shall be required to any modification
under this rule.
31.2
Computation of pensionable service
31.2.1
In relation to periods of part-time service, pensionable
service shall consist of the period of part-time service multiplied by the part-time service fraction, subject to sub-rules 31.2.2 and 31.2.3.
31.2.2
The trustee company may,
with the consent of the employer and the member, modify
any period of service of
a VTE, or of any other employee
in part-time service, for
the purposes of determining pensionable
service, to enable any employer to satisfy an order, declaration or recommendation under regulation
8(7) of the Part-timers Regulations, or to give effect to an agreement between the employer and member to
stay or compromise proceedings under those regulations. The trustee company shall provide the JNC with particulars of the exercise of these powers, doing so, if
the trustee company thinks
fit, on an anonymised basis.
31.2.3
Unless on the last occasion on which the member transferred from full-time
service to part-time service, it was as a result of ill-health or infirmity or at the request of
the employer (in either case
as notified to the trustee company at the time or such later date as the trustee company may allow), where a member who retires with
an enhanced incapacity pension was
in part-time service at the relevant date, the additional years of pensionable service to be credited to that member shall be multiplied by the highest of:
(1)
The aggregate of the part-time
service fractions applicable at retirement to each eligible
employment for which the individual was then an active member; or
(2)
PS means pensionable service (excluding any purchased by AVCs) to the date of retirement after applying the part-time
service fractions; and
Y means the aggregate of the number of years' active membership,
the number of years' service credited as a result of
being a transferring FSSU member or a transferring part II
member, and the number of years' pre-scheme service and pre-scheme university
service (in each case before applying any part-time service fraction and excluding any such years purchased by AVCs)
and the number of years' pensionable service credited to
the member under rules 44 (Individual transfers in) or 45 (Bulk transfers in); or
(3)
The highest of the part-time
service fractions, where as a result of incapacity or at the request
of the employer (in either
case notified to the trustee company at the time or at such later date as the trustee company may allow) and after the member's last period of full-time
service, the member transferred
from part-time service with
a higher part-time service fraction to part-time service with
a lower part-time service fraction.
31.2.4
If paragraph (2) of sub-rule 31.2.3 applies, the amount by which the
resulting benefits exceed those which would have been payable had the additional years been multiplied by the part-time service fraction applicable
at retirement shall be debited
to and be a charge on the supplementary
section.
31.3
Computation of pensionable service for persons treated as MAMs
If any of the eligible employments of a MAM is full-time service, or the sum of the part-time service fractions for the eligible employments of a MAM amounts to 1 or more, sub-rule 31.2.3 shall apply as if the periods of pensionable service for all the eligible employments of the MAM were a period of full-time service and not part-time service.
If any of the eligible employments of a MAM is full-time service, or the sum of the part-time service fractions for the eligible employments of a MAM amounts to 1 or more, sub-rule 31.2.3 shall apply as if the periods of pensionable service for all the eligible employments of the MAM were a period of full-time service and not part-time service.
32
Variable Time Employees
32.1
Where there is no concurrent non-Variable Time employment
Sub-rules 32.2 to 32.10 apply to any member in relation to VT employment who is not concurrently in eligible employment which is not VT employment. They apply to other members in relation to VT employment subject to sub-rules 32.11 to 32.15.
Sub-rules 32.2 to 32.10 apply to any member in relation to VT employment who is not concurrently in eligible employment which is not VT employment. They apply to other members in relation to VT employment subject to sub-rules 32.11 to 32.15.
32.2
Automatic Membership
Subject to sub-rule 32.3, a VTE shall become a member of the scheme in respect of a VT employment immediately upon commencing that employment.
Subject to sub-rule 32.3, a VTE shall become a member of the scheme in respect of a VT employment immediately upon commencing that employment.
32.3
Employer election for membership by application
An institution which intends to employ VTEs may require, on written notice to the trustee company, that the membership of one or more of those eligible employees shall commence on the first day of the month following the trustee company's acceptance in writing of his or her application for membership in such form as the trustee company may prescribe (or on such earlier date as the trustee company may decide).
An institution which intends to employ VTEs may require, on written notice to the trustee company, that the membership of one or more of those eligible employees shall commence on the first day of the month following the trustee company's acceptance in writing of his or her application for membership in such form as the trustee company may prescribe (or on such earlier date as the trustee company may decide).
32.4
Deemed membership start date
If a VTE applies for membership within one month of first being given written notice by the employer that his or her continuous employment (within the meaning of ERA) was eligible employment, then that individual shall be deemed to have been a member throughout any such period of continuous eligible employment after 30 June 2000. If, however, that individual was a member for any period prior to 1 April 2003 by virtue of eligible employment with that employer that was not VT employment, then that individual shall be deemed to have been a member throughout any such period of continuous eligible employment after 31 March 2003. Any such period of continuous VT employment may be accepted as such by the employer after the individual's death, but with effect from the date of its commencement, on an application by the individual's legal personal representatives to the trustee company.
If a VTE applies for membership within one month of first being given written notice by the employer that his or her continuous employment (within the meaning of ERA) was eligible employment, then that individual shall be deemed to have been a member throughout any such period of continuous eligible employment after 30 June 2000. If, however, that individual was a member for any period prior to 1 April 2003 by virtue of eligible employment with that employer that was not VT employment, then that individual shall be deemed to have been a member throughout any such period of continuous eligible employment after 31 March 2003. Any such period of continuous VT employment may be accepted as such by the employer after the individual's death, but with effect from the date of its commencement, on an application by the individual's legal personal representatives to the trustee company.
32.5
Calculation of salary
The salary of a member in respect of VT employment shall, for the period of 12 complete and consecutive months immediately before the calculation date, be the aggregate of:
The salary of a member in respect of VT employment shall, for the period of 12 complete and consecutive months immediately before the calculation date, be the aggregate of:
32.5.2
any other amounts that the member would have been entitled to receive for that employment during
that period, but for absence from work under rule 39 (Temporary absence) or 40 (Maternity, paternity and adoption leave), under contractual
arrangements with the employer;
and
32.5.3
if so determined by the employer with the consent of the trustee company, any benefits
in kind.
32.6
Disregard suspended membership
Any period during which membership was suspended in relation to the VT employment shall be disregarded and the relevant period shall be the last 365 days (or 366 days if those days included 29 February) before the calculation date which were not days on which membership was suspended.
Any period during which membership was suspended in relation to the VT employment shall be disregarded and the relevant period shall be the last 365 days (or 366 days if those days included 29 February) before the calculation date which were not days on which membership was suspended.
32.7
Lump sum death benefits proportionate to VT employment
Where a member was not in active membership as a VTE at the start of the relevant period under sub-rule 32.5, salary shall for the purposes of calculating lump sum benefits on death in service be calculated as follows:
Where a member was not in active membership as a VTE at the start of the relevant period under sub-rule 32.5, salary shall for the purposes of calculating lump sum benefits on death in service be calculated as follows:
32.8
Salary enhancement
Notwithstanding sub-rule 32.7, where a member dies in active membership as a VTE and without qualifying service, that member's salary as a VTE shall, if the benefit payable would as a result be increased, be calculated as if that member had survived until the next accounting date after the date of the member's death and had received the salary appropriate to the duties as a VTE which the member had contracted to discharge up to that date, or which the member would in the opinion of the trustee company have been asked to discharge in that period if the member had been capable of doing so. This paragraph shall also apply where such a member has qualifying service because either:
Notwithstanding sub-rule 32.7, where a member dies in active membership as a VTE and without qualifying service, that member's salary as a VTE shall, if the benefit payable would as a result be increased, be calculated as if that member had survived until the next accounting date after the date of the member's death and had received the salary appropriate to the duties as a VTE which the member had contracted to discharge up to that date, or which the member would in the opinion of the trustee company have been asked to discharge in that period if the member had been capable of doing so. This paragraph shall also apply where such a member has qualifying service because either:
32.8.1
the member has preserved benefits under the scheme, has rejoined the scheme and has elected not to cancel
those preserved benefits;
or
32.8.2
the member ceased to
be a member before 6 April
2006 because his or her continued membership would have prejudiced approval of the scheme under the tax code, and has rejoined the scheme; or
32.8.3
the member has opted
out of membership by giving
28 days' written notice under sub-rule 36.3 (Withdrawal from membership) and has rejoined the scheme.
32.9
Partial withdrawal from the scheme
A member who holds one or more VT employments may withdraw from membership under rule 36 (Withdrawal from membership) in respect of one VT employment whilst remaining an active member in respect of any other eligible employments, and may rejoin the scheme in respect of one VT employment whilst not rejoining in respect of any other eligible employments.
A member who holds one or more VT employments may withdraw from membership under rule 36 (Withdrawal from membership) in respect of one VT employment whilst remaining an active member in respect of any other eligible employments, and may rejoin the scheme in respect of one VT employment whilst not rejoining in respect of any other eligible employments.
32.10
Modifications for persons treated as VTEs
Where the trustee company at the request of, or after consultation with, the employer has determined that an eligible employment is to be treated as VT employment:
Where the trustee company at the request of, or after consultation with, the employer has determined that an eligible employment is to be treated as VT employment:
32.10.1
the references in sub-rule
32.4 to 30 June 2000 and 31 March 2003 or 1 April 2003 shall be construed
in each case as a reference instead to the date from which the trustee company determines that the employment is to be treated as VT employment; and
32.10.2
the trustee company may
specify the date from which rule
39 (Temporary absence) and sub-rules 32.5 to 32.7 shall apply with such modifications as the trustee company may decide.
32.11
Concurrent Variable Time and non-Variable Time employment
This sub-rule and the following provisions of this rule apply to any member in relation to any period for which the member is concurrently in VT employment and eligible employment which is not VT employment.
This sub-rule and the following provisions of this rule apply to any member in relation to any period for which the member is concurrently in VT employment and eligible employment which is not VT employment.
32.12
Pre-1 October 2003 service benefits
Where this rule applies in relation to a member who was an active member immediately before 1 October 2003, the benefits payable in respect of that member for pensionable service prior to 1 October 2003 shall be the higher of the benefits that would have been payable under the rules in force immediately prior to that date and the benefits payable under rule 4.2A of the then rules as it stood on that date.
Where this rule applies in relation to a member who was an active member immediately before 1 October 2003, the benefits payable in respect of that member for pensionable service prior to 1 October 2003 shall be the higher of the benefits that would have been payable under the rules in force immediately prior to that date and the benefits payable under rule 4.2A of the then rules as it stood on that date.
32.13
VTE pensionable service credit
The pensionable service credited under paragraph (g) of the definition of that term to a member in respect of a VT employment for any year starting immediately after an accounting date shall be determined by the trustee company using the following formula:
PS = (A ÷ B) x C
The pensionable service credited under paragraph (g) of the definition of that term to a member in respect of a VT employment for any year starting immediately after an accounting date shall be determined by the trustee company using the following formula:
PS = (A ÷ B) x C
A is the member's average salary for VT employment, adjusted (if applicable) under schedule 3 (Adjustments to pensionable salary), but not
adjusted by reference to the part-time
service fraction or for salary reduction (schedule 6);
B is that fraction of the member's salary which
bears the same relation to the whole as the length of time defined below as
C bears to a complete year, and for this purpose the member's salary shall
be the member's greatest salary for any eligible employment, determined at the end of the relevant year or,
if earlier, when this rule ceases to apply to the member, adjusted by reference to the part-time service fraction;
32.14
Non-discrimination guarantee for rule modifications
An institution which executes a deed under sub-rule 41.4 (Admission of institutions) modifying or disapplying sub-rule 32.13 shall be deemed to give a non-discrimination guarantee to the trustee company in relation to that deed.
An institution which executes a deed under sub-rule 41.4 (Admission of institutions) modifying or disapplying sub-rule 32.13 shall be deemed to give a non-discrimination guarantee to the trustee company in relation to that deed.
32.15
Multiple appointments
No employment to which sub-rule 32.11 applies shall cause the member to be treated for the purposes of rule 30 (Multiple appointments) as holding 2 or more appointments. If an individual is a member in respect of a VT employment and more than one other concurrent eligible employments that are not VT employment, then the benefits in respect of those other eligible employments shall nevertheless be computed in accordance with rule 30.1 (Multiple appointments), and the benefits in respect of the VT employment shall be calculated as determined by the trustee company, treating the other eligible employments as if they were a single concurrent eligible employment for the purposes of sub-rule 32.13.
No employment to which sub-rule 32.11 applies shall cause the member to be treated for the purposes of rule 30 (Multiple appointments) as holding 2 or more appointments. If an individual is a member in respect of a VT employment and more than one other concurrent eligible employments that are not VT employment, then the benefits in respect of those other eligible employments shall nevertheless be computed in accordance with rule 30.1 (Multiple appointments), and the benefits in respect of the VT employment shall be calculated as determined by the trustee company, treating the other eligible employments as if they were a single concurrent eligible employment for the purposes of sub-rule 32.13.
33
Entrants Over 60
33.1
Notwithstanding sub-rule
5.2 (Maximum entry age and excluded cases), an eligible employee who is aged 60 or over shall become a member if:
33.1.1
the eligible employee is
neither a pensioner member (other
than one to whom which sub-rule
37.3 (Pensioner rejoining after total incapacity) applies) nor a person
to whom a lump sum has been paid in total commutation of his or her benefits
under rule 52 (Total commutation
for triviality);
33.1.3
the eligible employee agrees
to such terms and conditions as the trustee company may on actuarial
advice impose, which may include payment of increased contributions;
and
33.2
For this sub-rule to be satisfied, one of the following must apply:
33.2.1
a transfer payment is made to the scheme under rule 44 (Individual
transfers in) or 45 (Bulk
transfers in) on the eligible employee becoming a member;
or
33.2.2
the eligible employee is
entitled to deferred pension benefits in respect of employment which immediately
preceded his or her entry into eligible
employment; or
33.2.3
there are exceptional circumstances which will continue for 5 years
following the eligible employee becoming
a member; or
34
Added Years AVCs
34.1
Agreed contributions
A member may pay added years AVCs not exceeding the maximum contribution by regular instalments or lump sum AVCs, as agreed between the member and the trustee company, so that the member is credited with pensionable service or other benefits in such form as the trustee company may decide on actuarial advice, based on tables of rates of contributions and corresponding amounts of additional pensionable service which the trustee company will issue from time to time.
A member may pay added years AVCs not exceeding the maximum contribution by regular instalments or lump sum AVCs, as agreed between the member and the trustee company, so that the member is credited with pensionable service or other benefits in such form as the trustee company may decide on actuarial advice, based on tables of rates of contributions and corresponding amounts of additional pensionable service which the trustee company will issue from time to time.
34.2
Previously agreed benefit terms
The benefits derived from regular instalment added years AVCs which have already commenced, or lump sum AVCs which have already been paid, shall be based on the tables of rates of contributions and the corresponding amounts of additional pensionable service which the trustee company has issued on actuarial advice, prior to those regular instalment added years AVCs having been commenced or lump sum AVCs having been paid.
The benefits derived from regular instalment added years AVCs which have already commenced, or lump sum AVCs which have already been paid, shall be based on the tables of rates of contributions and the corresponding amounts of additional pensionable service which the trustee company has issued on actuarial advice, prior to those regular instalment added years AVCs having been commenced or lump sum AVCs having been paid.
34.3
Unreduced benefits on death or incapacity retirement
If a member has died or is entitled to receipt of an enhanced incapacity pension when the member's added years AVCs are used to buy additional benefits, then there shall be no reduction in those additional benefits, provided that:
If a member has died or is entitled to receipt of an enhanced incapacity pension when the member's added years AVCs are used to buy additional benefits, then there shall be no reduction in those additional benefits, provided that:
34.3.2
the member began paying
regular instalment added years AVCs at least 5 years prior to death or retirement.
34.4
Actuarially reduced early benefits
If sub-rule 34.3.1 and/or sub-rule 34.3.2 are not satisfied, there shall be a reduction in those additional benefits to be decided by the trustee company, acting on actuarial advice.
If sub-rule 34.3.1 and/or sub-rule 34.3.2 are not satisfied, there shall be a reduction in those additional benefits to be decided by the trustee company, acting on actuarial advice.
34.5
Benefits on early retirement or leaving service
If a member is entitled to receipt of a pension, other than an enhanced incapacity pension, when the member's added years AVCs are used to buy additional benefits, or the member ceases to be in service:
If a member is entitled to receipt of a pension, other than an enhanced incapacity pension, when the member's added years AVCs are used to buy additional benefits, or the member ceases to be in service:
34.5.1
where the member has retired on an immediate pension
before normal retirement age (or
before a later age specified by the member for added years AVCs to cease), the trustee company may reduce the additional benefits for early payment, acting on actuarial advice;
34.5.2
where the member has
left service and is entitled
to benefits under rule 14 (Preserved
benefits), the trustee company may
not reduce the additional years of pensionable service in
respect of regular instalment added
years AVCs paid up to the cessation of service to less than:
N is the period from the date when the first AVC payment became due to the date of cessation of service;
NS means the whole period over which regular instalment added years AVC payments were to be made under the member's agreement with the trustee company; and
PS means the additional years of pensionable service which
the trustee company had agreed
to credit to the member under sub-rule 34.1.
35
Money Purchase AVCs
35.1
Member election
A member may elect by written notice to an employer to pay MPAVCs to secure additional relevant benefits on a money purchase basis on retirement, or following deferral of purchase of an annuity, or death.
A member may elect by written notice to an employer to pay MPAVCs to secure additional relevant benefits on a money purchase basis on retirement, or following deferral of purchase of an annuity, or death.
35.2
Notice requirements
A member must give at least 2 months' written notice to an employer ending before the member attains age 75 (unless the trustee company agrees to a shorter notice period) of his or her intention to commence MPAVCs, detailing the AVC providers with which the MPAVCs are to be invested and whether or not the MPAVCs are to be made by one or more lump sums, and such other matters as the trustee company may require. A member may vary the proportions in which MPAVCs are paid between 2 or more AVC providers by at least 2 months' written notice to the employer, or such shorter notice period as the trustee company may allow. The employer must transmit all this information promptly to the trustee company.
A member must give at least 2 months' written notice to an employer ending before the member attains age 75 (unless the trustee company agrees to a shorter notice period) of his or her intention to commence MPAVCs, detailing the AVC providers with which the MPAVCs are to be invested and whether or not the MPAVCs are to be made by one or more lump sums, and such other matters as the trustee company may require. A member may vary the proportions in which MPAVCs are paid between 2 or more AVC providers by at least 2 months' written notice to the employer, or such shorter notice period as the trustee company may allow. The employer must transmit all this information promptly to the trustee company.
35.3
Investment
The trustee company shall make arrangements with an AVC provider so that MPAVCs paid by a member are applied to the investments specified in the notice given by the member under sub-rule 35.2, but the trustee company may decline to invest MPAVCs as so specified if the trustee company believes that such application would or could put the trustee company in breach of any legal duty.
The trustee company shall make arrangements with an AVC provider so that MPAVCs paid by a member are applied to the investments specified in the notice given by the member under sub-rule 35.2, but the trustee company may decline to invest MPAVCs as so specified if the trustee company believes that such application would or could put the trustee company in breach of any legal duty.
35.4
Transfers between investments
A member or former member may elect by written notice to the trustee company before a relevant benefit becomes payable from the member's fund to transfer all or part of the assets of the member's fund from one investment to another, provided that the trustee company's agreement with the AVC provider so allows.
A member or former member may elect by written notice to the trustee company before a relevant benefit becomes payable from the member's fund to transfer all or part of the assets of the member's fund from one investment to another, provided that the trustee company's agreement with the AVC provider so allows.
35.5
Input periods
A member may not without the prior written consent of the trustee company select a nominated date for the end of any input period for the purposes of section 238 of FA 04 in relation to any MPAVCs.
A member may not without the prior written consent of the trustee company select a nominated date for the end of any input period for the purposes of section 238 of FA 04 in relation to any MPAVCs.
35.6
Trustee company liability
Subject to sections 33 and 34(4) of PA 95, the trustee company shall be under no obligation or liability in respect of any loss or reduction in value of a member's fund which results from the investment of MPAVCs in accordance with the member's specification under sub-rule 35.2, nor in respect of any delay in the investment of MPAVCs which results from a failure by the member to specify the application of those AVCs.
Subject to sections 33 and 34(4) of PA 95, the trustee company shall be under no obligation or liability in respect of any loss or reduction in value of a member's fund which results from the investment of MPAVCs in accordance with the member's specification under sub-rule 35.2, nor in respect of any delay in the investment of MPAVCs which results from a failure by the member to specify the application of those AVCs.
35.7
Deductions from salary
The employer shall deduct MPAVCs payable by a member from salary. The trustee company shall decide which employers shall make this deduction, and in what proportions, if there is more than one employer. The trustee company may require employers to pay MPAVCs so deducted directly to the AVC provider as agent for the trustee company.
The employer shall deduct MPAVCs payable by a member from salary. The trustee company shall decide which employers shall make this deduction, and in what proportions, if there is more than one employer. The trustee company may require employers to pay MPAVCs so deducted directly to the AVC provider as agent for the trustee company.
35.8
Cessation
A member may pay MPAVCs until the earliest of:
A member may pay MPAVCs until the earliest of:
35.8.3
the date which the member has
notified to the employer in
writing as the date of cessation of those AVCs.
The member must give
at least 2 months' written notice to the employer of the cessation of the MPAVCs, or such shorter notice period as the trustee company may allow.
35.9
Lump sum or pension
The benefits provided in respect of MPAVCs may be either in lump sum or pension form and shall be of at least such value as the trustee company, acting on actuarial advice, considers reasonable having regard to the MPAVCs paid by the member. Any lump sum benefits payable in respect of MPAVCs shall not cause the lump sum benefits payable to the member to exceed the authorised maximum.
The benefits provided in respect of MPAVCs may be either in lump sum or pension form and shall be of at least such value as the trustee company, acting on actuarial advice, considers reasonable having regard to the MPAVCs paid by the member. Any lump sum benefits payable in respect of MPAVCs shall not cause the lump sum benefits payable to the member to exceed the authorised maximum.
35.10
Transfer for defined benefits
A member or former member may elect by written notice to the trustee company not more than 3 months, nor less than one month, before a relevant benefit becomes payable to that person, or such shorter notice period as the trustee company may allow, that all or part of the member's fund be transferred to the main section of the fund to purchase such additional pensionable service or other benefits as the trustee company shall determine on actuarial advice. The trustee company shall, at the written request of that person, as soon as reasonably practicable issue to that person a quotation of the conversion rate it has determined on actuarial advice to apply to that person as at the date of issue of the quotation. The trustee company shall apply that conversion rate in determining the additional pensionable service or other benefits to be awarded. The trustee company may recover from the member's fund or that person such charges as it may require in accordance with tables it shall have published before that person's request. Unless the trustee company so permits, a member or former member may not vary or revoke an election under this sub-rule and may not make more than one such election.
A member or former member may elect by written notice to the trustee company not more than 3 months, nor less than one month, before a relevant benefit becomes payable to that person, or such shorter notice period as the trustee company may allow, that all or part of the member's fund be transferred to the main section of the fund to purchase such additional pensionable service or other benefits as the trustee company shall determine on actuarial advice. The trustee company shall, at the written request of that person, as soon as reasonably practicable issue to that person a quotation of the conversion rate it has determined on actuarial advice to apply to that person as at the date of issue of the quotation. The trustee company shall apply that conversion rate in determining the additional pensionable service or other benefits to be awarded. The trustee company may recover from the member's fund or that person such charges as it may require in accordance with tables it shall have published before that person's request. Unless the trustee company so permits, a member or former member may not vary or revoke an election under this sub-rule and may not make more than one such election.
35.11
Benefits on death before retirement
On the death of a member before retirement or of a former member with a deferred right to an annuity in respect of MPAVCs, the member's fund shall be applied in accordance with the directions of that individual or, if there are none, of that individual's personal representatives. In the absence of such directions, the trustee company shall hold the member's fund on the discretionary trusts.
On the death of a member before retirement or of a former member with a deferred right to an annuity in respect of MPAVCs, the member's fund shall be applied in accordance with the directions of that individual or, if there are none, of that individual's personal representatives. In the absence of such directions, the trustee company shall hold the member's fund on the discretionary trusts.
35.12
Benefits on retirement
On the retirement of a member, or on deferred benefit becoming payable to a former member, the trustee company shall apply the member's fund in accordance with the directions of the member or former member, or, in the absence of such directions, the trustee company may apply the member's fund to provide such relevant benefits for the member or former member, or that individual's relatives, dependants or personal representatives as the trustee company may decide.
On the retirement of a member, or on deferred benefit becoming payable to a former member, the trustee company shall apply the member's fund in accordance with the directions of the member or former member, or, in the absence of such directions, the trustee company may apply the member's fund to provide such relevant benefits for the member or former member, or that individual's relatives, dependants or personal representatives as the trustee company may decide.
35.13
Deferral of purchase of annuity
A member or former member may, by written notice to the trustee company and the AVC provider of the period of deferral, defer the purchase of an annuity in respect of any investment for a period ending before the individual's 75th birthday. Such an individual may however apply by not more than 2 months' nor less than 14 days' written notice (or within such other notice period as the trustee company may allow) to the AVC provider and the trustee company to purchase the annuity before the previously notified date.
A member or former member may, by written notice to the trustee company and the AVC provider of the period of deferral, defer the purchase of an annuity in respect of any investment for a period ending before the individual's 75th birthday. Such an individual may however apply by not more than 2 months' nor less than 14 days' written notice (or within such other notice period as the trustee company may allow) to the AVC provider and the trustee company to purchase the annuity before the previously notified date.
35.14
Benefits on death after retirement
On the death of a member or former member after retirement and after any period of deferral of an annuity, the member's fund shall be applied in accordance with the directions of that individual or, if there are none, in providing such relevant benefits of a kind payable on death in retirement as the trustee company may determine.
On the death of a member or former member after retirement and after any period of deferral of an annuity, the member's fund shall be applied in accordance with the directions of that individual or, if there are none, in providing such relevant benefits of a kind payable on death in retirement as the trustee company may determine.
35.15
Annual limit on MPAVCs
A member may not pay in any tax year any MPAVC of an amount which would cause the total contributions by that member to the scheme in that year to exceed the salary of that member for the reference period for that year, or the annual allowance specified for that year under section 228 of FA 04, on the assumption that the member's membership and salary remain unaltered throughout that reference period, or are changed only to such extent as could reasonably be foreseen by the trustee company.
A member may not pay in any tax year any MPAVC of an amount which would cause the total contributions by that member to the scheme in that year to exceed the salary of that member for the reference period for that year, or the annual allowance specified for that year under section 228 of FA 04, on the assumption that the member's membership and salary remain unaltered throughout that reference period, or are changed only to such extent as could reasonably be foreseen by the trustee company.
36
Withdrawal from Membership
36.1
An individual who becomes a member immediately upon becoming an eligible employee may within 3 months of becoming a member give notice in writing to the trustee company of retrospective withdrawal from the scheme. The trustee company shall repay to the individual his or her contributions, subject to
any deduction in respect of any tax under rule 48 (Tax) and any CEP and subject to such other deductions on account of tax either by
the trustee company or the employer as will not prejudice the
continued treatment of the scheme as a contracted-out scheme in relation to the employer. The individual shall then be deemed never to have been a member in respect of that eligible employment.
36.2
The trustee company may
make to the employer such
repayment of contributions as would not be an unauthorised employer payment
under section 160(4) of FA 04.
36.3
A member to whom sub-rule 36.1 does not apply
may give not less than 28 days' written notice to the employer and the trustee
company to cease to be a member with effect from the end of the month in which the notice expires.
The individual shall then be entitled:
36.3.1
To benefits under rule 14 (Preserved benefits) or sub-rule 16.3.1 (Early leavers without preserved benefits). If the
withdrawal takes effect at or after the date when he or she attains age 65,
benefits under rule 14 (Preserved
benefits) or sub-rule 16.3.1 (Early leavers without preserved benefits) shall come into payment
on the day following the earlier of the day after he or she ceases eligible employment or the day immediately before he or she attains
age 75, as if that earlier date were his or her normal retirement age.
36.4
A notice under this rule shall be in such form as the trustee company may prescribe and shall be deemed to be given on the
date of delivery to the employer by recorded delivery post or personally or on such earlier date as
the trustee company may allow.
37
Rejoiners
37.1
Former member rejoining after absence not exceeding one month
37.1.1
Where a former member rejoins
the scheme after a break
in service not exceeding
one month, that break in service shall not cause a break in the member's continued membership, unless the former member was not in contracted-out
employment immediately before the break.
37.1.3
A break in service and membership shall, unless the trustee company decides otherwise,
be treated as having occurred, where an individual is or becomes or has been
a "qualifying person" for the purposes of Part 7 of PA 04 and falls within either sub-rule 37.1.4
or 37.1.5.
37.1.4
An individual falls within this sub-rule when the individual commences contracted-out employment after
having been a member by virtue
of eligible employment which
was not then contracted-out employment.
37.1.5
An individual falls within this sub-rule when the individual commences eligible employment which is not contracted-out employment after
having been a member by virtue
of eligible employment that
was then contracted-out employment.
37.2
Deferred pensioner rejoining
37.2.1
If a deferred pensioner becomes
an eligible employee and again
becomes a member under the
age of 60, the preserved benefits and any benefits under sub-rule 16.3 to which that individual is entitled as a deferred pensioner shall be cancelled and the pensionable service counted for the purpose of calculating those benefits
shall count as pensionable service for the purpose of calculating that individual's aggregate pensionable service upon future cessation of service.
37.2.2
Neither the preserved benefits nor such benefits under sub-rule 16.3 shall be cancelled if that eligible employee has a period of ABS after the period of pensionable service to which they are attributable, unless that eligible employee again becomes
a member within 6 months of
commencing that ABS.
37.2.3
Neither the preserved benefits nor such benefits under sub-rule 16.3 shall be cancelled if that eligible employee rejoins the scheme after a break in the continuity of membership, if, before any payment has been made in respect of that membership, that eligible employee has given written notice to the trustee company that those preserved benefits are not to be cancelled.
37.2.4
Neither the preserved benefits nor such benefits under sub-rule 16.3 shall be cancelled, except where the trustee company determines otherwise, in relation to a member who is in contracted-out
employment but was not in such service when the last previous period
of membership ended.
37.2.5
If a deferred pensioner aged
60 or over again becomes a member, only the preserved benefits and such benefits under sub-rule 16.3 in respect of that part of that member's pensionable service which accrued or was credited after 30 November 2006 shall be cancelled.
37.2.6
In so far as neither the preserved benefits nor such benefits under sub-rule 16.3 are cancelled, those benefits shall be payable
in accordance with sub-rule
14.2 (Date of payment) and pensionable service which counts for the purpose of calculating those preserved benefits shall not count
for the purpose of calculating the benefits payable following the cessation
of the new membership.
37.3
Pensioner rejoining after total incapacity
Notwithstanding sub-rule 5.2 (Maximum entry age and excluded cases), the trustee company may permit a pensioner who has been in receipt of a pension on the grounds of total incapacity, which has been withdrawn or suspended and who has subsequently become an eligible employee, to resume active membership on such terms and conditions and subject to such increased contributions as the trustee company, acting on actuarial advice, may decide, provided that the preservation requirements are complied with and that pensionable service on which the total incapacity pension was based cannot count towards the benefits referable to the new period of active membership.
Notwithstanding sub-rule 5.2 (Maximum entry age and excluded cases), the trustee company may permit a pensioner who has been in receipt of a pension on the grounds of total incapacity, which has been withdrawn or suspended and who has subsequently become an eligible employee, to resume active membership on such terms and conditions and subject to such increased contributions as the trustee company, acting on actuarial advice, may decide, provided that the preservation requirements are complied with and that pensionable service on which the total incapacity pension was based cannot count towards the benefits referable to the new period of active membership.
38
Salary Sacrifice
38.1
Employer contributions
Where a member has entered into a salary sacrifice arrangement under which the employer has agreed to pay additional contributions to the scheme, the member shall not be required to pay any contributions to the scheme, save for AVCs. The employer shall pay additional contributions to the scheme equal to the amounts of those contributions which the member would have been liable to pay. The employer shall in addition pay such further amounts to the scheme as are required under a supplementary deed of accession.
Where a member has entered into a salary sacrifice arrangement under which the employer has agreed to pay additional contributions to the scheme, the member shall not be required to pay any contributions to the scheme, save for AVCs. The employer shall pay additional contributions to the scheme equal to the amounts of those contributions which the member would have been liable to pay. The employer shall in addition pay such further amounts to the scheme as are required under a supplementary deed of accession.
38.2
Continuation contributions/late retirement
A member to whom sub-rule 38.1 applies shall nevertheless be treated as being required to pay such contributions for the purposes of rules 9 (Continuation contributions) and 10 (Late retirement), so that such a member may elect to be treated as ceasing or continuing or recommencing to pay contributions under those rules in the same way as any other member.
A member to whom sub-rule 38.1 applies shall nevertheless be treated as being required to pay such contributions for the purposes of rules 9 (Continuation contributions) and 10 (Late retirement), so that such a member may elect to be treated as ceasing or continuing or recommencing to pay contributions under those rules in the same way as any other member.
38.3
Calculation of salary
38.3.1
In respect of any period of eligible employment during which a salary sacrifice arrangement is effected, salary for that period of eligible employment shall be calculated as if there were no salary sacrifice arrangement, as determined by the trustee company (so far as appears to the trustee company to be reasonably practicable).
38.3.2
The employer of such
a member shall provide to
the trustee company such
information as the trustee company may require to enable the trustee company to calculate a member's salary, including
(without limitation) an auditor's
certificate.
39
Temporary Absence
39.1
Involuntary absence due to sickness or other causes
During a period of a member's absence from any eligible employment which is due to sickness or the exercise of an express statutory right to time off work (other than in respect of MPA leave), or any other cause which is beyond the control of the member and is approved by the employer and the trustee company:
During a period of a member's absence from any eligible employment which is due to sickness or the exercise of an express statutory right to time off work (other than in respect of MPA leave), or any other cause which is beyond the control of the member and is approved by the employer and the trustee company:
39.1.1
Subject to sub-rule 39.4, whilst the member is
in receipt of any remuneration from the employer, the membership shall
not be suspended, pensionable service shall continue to accrue, and contributions shall continue to be paid
in respect of the salary of
the member, as if the member was not absent.
39.1.2
A member who is receiving
Statutory Sick Pay but no other remuneration from the employer may opt, but is not obliged, to continue to pay contributions
under sub-rule 39.1.1.
39.1.3
After the member has
ceased to receive remuneration from the employer, or if the member opts to cease contributions under sub-rule 39.1.2, the employer with the consent of the member and the trustee company may pay the contributions which would have been payable by the member but for the absence, so that membership is not suspended and pensionable service continues to
accrue as if the member was
not absent. On the member resuming
employment, the employer,
with consent of the trustee company, may recoup any such contributions plus reasonable interest by a reduction
in the member's remuneration
or a deduction from the benefits payable to the member.
39.1.4
If neither sub-rule 39.1.2 nor sub-rule 39.1.3 applies, the membership and pensionable
service shall be suspended until contributions are again made to the fund in respect of the member, but such suspension shall neither break the continuity of membership nor the accrual of pensionable service nor mean that
the member leaves service.
39.1.5
Where a member ceases eligible employment on the grounds
of incapacity, or dies, during
a suspension of membership,
the pension under rule 13 (Early
pensions on incapacity) or death benefits shall be payable from the day after
the date of cessation of that eligible
employment or death, but calculated as if that eligible employment had ceased, or the member had died, on the day before the suspension started.
39.1.6
Where, during a period of suspended membership, a member leaves
an eligible employment other
than under sub-rule 39.1.5 or withdraws from the scheme, pensionable service and salary shall
be calculated as if the member left
that eligible employment on
the date of suspension of membership.
39.2
Voluntary absence and secondment
39.2.1
Where a member is either:
(1)
absent or seconded from any eligible employment with an employer, other than under rule 40 (Maternity, paternity and adoption leave), sub-rule 39.1 or sub-rule 39.4
[See 2nd reference]
(Family leave), for any
reason of which that employer approves,
and intends to return to eligible
employment; or
(2)
absent from any eligible employment with an employer in
contemplation or furtherance of a lawful trade dispute or pursuant to industrial
action in accordance with the Trade Union and Labour Relations (Consolidation)
Act 1992, and in that case the employer does not terminate the member's contract of employment and the member resumes eligible employment after the absence,
that member shall remain
an eligible employee, and membership and pensionable service shall be suspended and not terminated, for the appropriate period. Membership and pensionable
service shall continue if contributions are continued in respect of
the member under sub-rule
39.2.3. Any such pensionable service and any suspension of membership shall cease at normal retirement
age unless the member makes
an election under rule 10.1.2 (Continuation contributions). Such suspension shall neither break
the continuity of membership nor
the accrual of pensionable service, nor mean that the member leaves service.
39.2.2
If the member leaves
the employment with the employer, the member shall
be treated as having left eligible
employment on the date membership was suspended. For the purposes of section 8(2) of the Increase Act a pension in respect of
a member to which this paragraph
applies shall be deemed to begin on the day following the last day of the appropriate period.
39.2.3
The employer may with
the member's agreement contribute
to the fund in respect of
the member during the appropriate period so long as the member does not become an active
member of another registered pension
scheme to which the employer contributes in respect of that member. If the employer makes
such contributions, the member shall
be required to contribute during the appropriate period under rule 6 (Member contributions) based on the salary to which the member would have been entitled but for the absence or secondment, save that
the employer and the member may agree that those contributions
are not to be deducted from the member's salary, provided
that the employer has agreed
to pay those contributions to the trustee company on the member's behalf. On payment in full of those contributions by member and employer,
the pensionable service of
the member shall continue
to accrue as if the member were
not absent. Such employer and member contributions shall be mandatory
in the case of a VT employment.
The employer may agree with
the member to pay AVCs on the member's behalf
during any period for which other contributions are made under this sub-rule
39.2.3.
39.2.4
Notwithstanding sub-rule 39.2.3, if a member remains in active membership at the end of a scheme year at whose commencement arrangements were in effect under sub-rule 39.2.3,
and if the salary of that member for that employment for that scheme year did not exceed £260,
then those arrangements shall be treated as having come to an end immediately
before that scheme year, membership by virtue of that employment
shall be suspended for that scheme
year, and the value of any contributions deducted from the salary of that employment shall be aggregated with the member's benefits in such manner as the trustee company may decide.
39.2.5
Where sub-rule 39.2.3 does not apply to a period, a member or the employer,
or both, may enter into a written agreement with the trustee company to make such additional contributions in respect of
the appropriate period as
the trustee company may reasonably
require to secure that if, during the period of such agreement, the member dies, or becomes incapacitated
so that the member would have
become entitled to benefits under rule 13 (Early pensions on incapacity) but for the absence, benefits
are payable in respect of the member as if active membership had
continued until such death or incapacity, but no period of suspension of membership shall count as pensionable service. No such agreement
shall have effect after the member has become an active member of a registered pension scheme (other than this scheme) to which the employer makes contributions in respect of that member.
39.2.6
If a member is absent
from employment with an employer and the absence is not one for which that employer and the trustee
company have agreed that sub-rule 39.2.1 shall apply, that individual
shall cease to be a member at
the beginning of that absence. The preservation requirements shall be complied with for the purposes of
determining qualifying service.
39.3
Calculation of salary
39.3.1
The following paragraphs apply where a member is absent from an eligible employment under sub-rules 39.1.1, 39.1.3 or 39.2.1
[See 2nd reference]
.
39.3.2
Any reduction in the gross fixed salary or fixed allowance in respect of any eligible employment (other than VT employment) held by that member, whether at the commencement of or during the absence, shall
not affect the calculation of salary unless and to the extent that the trustee company is satisfied that the reduction would have occurred
at that time if the member had
not been absent from that employment.
39.3.3
The employer of such
a member shall provide to
the trustee company such
information as the trustee company may require to enable the trustee company to be satisfied of a member's salary, including
(without limitation) an auditor's
certificate.
39.4
Family leave
For any period of paid family leave by a member (within the meaning of paragraph 6 of Schedule 5 to SSA 89) to which rule 40 does not apply:
For any period of paid family leave by a member (within the meaning of paragraph 6 of Schedule 5 to SSA 89) to which rule 40 does not apply:
40
Maternity, Paternity and Adoption Leave
40.1
Scope of the rule
This rule applies to any eligible employment in respect of which a member has a period of MPA leave.
The trustee company shall comply with the requirements of paragraphs 5, 5A and 5B of Schedule 5 to SSA 89. Where the employer notifies the trustee company that this rule is to apply to additional periods of MPA leave from any employment (other than periods to which rule 39 (Temporary absence) applies), to which those requirements would not otherwise apply, the trustee company shall apply this rule to such periods provided that the employer pays such additional contributions to the scheme as the trustee company acting on actuarial advice may decide. This rule shall apply to periods of eligible employment outside the United Kingdom in the same way as to eligible employment within the United Kingdom, or to periods in which the member is not resident, or has a spouse or civil partner or partner who is not resident, in the United Kingdom, or in the same part of the United Kingdom in which the member is in eligible employment, subject to such modifications as the trustee company may think fit.
This rule applies to any eligible employment in respect of which a member has a period of MPA leave.
The trustee company shall comply with the requirements of paragraphs 5, 5A and 5B of Schedule 5 to SSA 89. Where the employer notifies the trustee company that this rule is to apply to additional periods of MPA leave from any employment (other than periods to which rule 39 (Temporary absence) applies), to which those requirements would not otherwise apply, the trustee company shall apply this rule to such periods provided that the employer pays such additional contributions to the scheme as the trustee company acting on actuarial advice may decide. This rule shall apply to periods of eligible employment outside the United Kingdom in the same way as to eligible employment within the United Kingdom, or to periods in which the member is not resident, or has a spouse or civil partner or partner who is not resident, in the United Kingdom, or in the same part of the United Kingdom in which the member is in eligible employment, subject to such modifications as the trustee company may think fit.
40.2
Continuous service before and after leave
The member's period of service immediately before the period of MPA leave and the member's period (if any) of service immediately after the period of MPA leave shall be deemed to be continuous.
The member's period of service immediately before the period of MPA leave and the member's period (if any) of service immediately after the period of MPA leave shall be deemed to be continuous.
40.3
Contributions during maternity, paternity and adoption leave
40.3.1
A member shall continue
to make member contributions
under rule 6 (Member contributions)
and rule 34 (Added years
AVCs) during paid MPA leave as
if the member's salary was limited to no more than the aggregate of the member's actual statutory maternity, paternity or adoption pay and
actual contractual remuneration. Such a member shall continue to accrue pensionable service throughout such period of continued contributions
as if the member were not
absent.
40.3.2
The employer shall contribute,
while such pensionable service is
continuing to accrue, the aggregate of A plus B, where:
A means contributions at the rate specified under rule 7.1 (Ordinary contributions) based on the salary of the member determined
as if the member had continued
working in the employment held by the member immediately before the MPA leave started;
C means the contributions (other than MPAVCs) which would have been payable by the member on that salary but
for the MPA leave;
E means the additional contributions required by the trustee company from the employer under sub-rule
40.5.3 during contractual periods which extend beyond ordinary or
additional maternity leave.
40.3.3
A member may elect in
writing to the employer, before
the commencement of MPA leave,
not to make contributions for the period of that leave. Membership and pensionable
service will then be suspended from the commencement of the member's MPA leave.
On returning to work, and with the consent of the employer, the member may
make such additional contributions as are determined by the trustee company, on actuarial
advice, so that all or a specified part of the member's MPA leave shall
count as