Regulation 74 Annual rate of children’s pensionsI1

United Kingdom

(1)

This regulation deals with the annual rate of the pensions payable under regulation 72 (“surviving children’s pensions”) on the death of a member by reference to the deceased member’s own pension rights.

(2)

The annual rate of the child’s earned pension is determined by—

(a)

where an adult dependant’s earned pension is payable under regulation 65 or 67 (surviving spouses’ and civil partners’ pensions and other adult dependants’ pensions) after taking the actions under paragraph (3)—

(i)

for one eligible child only, an amount equal to 25% of the annual rate of the member’s earned pension at the point of the member’s death;

(ii)

for two or more eligible children, an equal share of 37.5% of the annual rate of the member’s earned pension at the point of the member’s death.

(b)

where an adult dependant’s earned pension is not payable under regulation 65 or 67 (surviving spouses’ and civil partners’ pensions and other adult dependants’ pensions) or no longer payable under regulation 65 or 67 after taking the actions under paragraph (3)—

(i)

for one eligible child only, an amount equal to 1/3rd of the annual rate of the member’s earned pension at the point of the member’s death;

(ii)

for two or more eligible children, an equal share of the annual rate of the member’s earned pension at the point of the member’s death, but limited to 1/3rd per child.

(3)

The actions under this paragraph are—

(a)

subtracting the commutation amount (if any) specified in the deceased member’s pension account in relation to the earned pension;

(b)

disregarding—

(i)

the early payment reduction (if any) specified in that account in relation to the earned pension;

(ii)

the in service late payment supplement (if any) specified in that account in relation to that amount;

(iii)

the late payment supplement (if any) specified in that account in relation to that amount;

(iv)

the pension sharing order amount (if any) specified in that account in relation to the earned pension; and

(v)

the allocation amount (if any) specified in that account in relation to the earned pension.

(4)

Where a member was entitled to immediate payment of a retirement club transfer pension as at the date of death or would have become entitled to such a pension had the member not died, instead of the determination under paragraph (2)(a) and (b) a determination shall be made, after taking the actions specified in paragraphs (i) and (ii), by taking an amount equal to 62.5% of the aggregate of the annual rate of the member’s retirement earned pension and retirement club transfer pension.

(5)

The annual rate of the child’s added pension is determined by—

(a)

where an adult dependant’s added pension is payable under regulation 65 or 67 (surviving spouses’ and civil partners’ pensions and other adult dependants’ pensions) after taking the actions under paragraph F1(6)—

(i)

for one eligible child only, an amount equal to 25% of the annual rate of the member’s added pension at the point of the member’s death;

(ii)

for two or more eligible children, an equal share of 37.5% of the annual rate of the member’s added pension at the point of the member’s death; or

(b)

where an adult dependant’s added pension is not payable under regulation 65 or 67 (surviving spouses’ and civil partners’ pensions and other adult dependants’ pensions) or no longer payable under regulation 65 or 67 after taking the actions under paragraph (6)—

(i)

for one eligible child only, an amount equal to 1/3rd of the annual rate of the member’s added pension at the point of the member’s death;

(ii)

for two or more eligible children, an equal share of 100% of the annual rate of the member’s added pension at the point of the member’s death, but limited to 1/3rd per child.

(6)

The actions under this paragraph (6) are—

(a)

subtracting the commutation amount (if any) relative to the deceased member’s added pension specified in the member’s pension account;

(b)

disregarding—

(i)

the early payment reduction (if any) specified in that account in relation to the added pension;

(ii)

the in service late payment supplement (if any) specified in that account in relation to that amount;

(iii)

the late payment supplement (if any) specified in that account in relation to that amount;

(iv)

the pension sharing order amount (if any) specified in that account in relation to the added pension; and

(v)

the allocation amount (if any) specified in that account in relation to added pension.

Annotations

Textual amendments

F1: Word in reg. 74(5)(a) substituted (1.4.2015) by The Armed Forces Pension Scheme and Early Departure Payments Scheme (Amendment) Regulations 2015 (S.I. 2015/466), regs. 1(2), 12

Commencement

I1: Reg. 74 in force at 1.4.2015, see reg. 1(2)