Regulation 66 Elections as to use of accumulated value of AVCs

(1)

This regulation applies where a person—

(a)

leaves his employment with the employer who was his employing authority when he made an election under regulation 60(1);

(b)

stops being an active member without leaving that employment;

(c)

becomes entitled to an ill-health pension under regulation 27; or

(d)

elects under regulation 60(9) to stop paying AVCs but continues to be an active member and attains the age of 50.

(2)

Where paragraph (1)(a) or (c) applies to a person, he must elect to have the accumulated value of the invested additional contributions specified in regulation 64(2) used in one or more of the permissible ways and he may so elect where paragraph (1)(b) or (d) applies to him.

(3)

Where paragraph (1)(a) applies, the permissible ways are—

(a)

to subscribe to an occupational pension scheme (other than the Scheme);

(b)

to subscribe to a personal pension scheme (including an additional voluntary contributions scheme, other than a FSAVC scheme);

(c)

to subscribe to a self-employed pension arrangement;

(d)

to purchase an appropriate policy from one or more AVC insurance companies.

(4)

Where paragraph (1)(b) applies, the only permissible way is that mentioned in paragraph (3)(b).

(5)

Where paragraph (1)(c) or (d) applies, the only permissible way is to acquire transfer credits in the Scheme.

(6)

Those credits are calculated on the same basis as if a transfer value were being accepted for the member under regulation 121.

(7)

But where paragraph (1)(d) applies and the member becomes entitled to the payment of retirement benefits by virtue of an election under regulation 31 (early payment), those transfer credits shall be reduced to such percentage of the credits to which he would otherwise be entitled as is shown as appropriate in guidance issued by the Government Actuary.

(8)

Transfer credits acquired under paragraph (5) must not entitle the member to benefits in the form of a lump sum payable at retirement (and accordingly the period of membership with which he is credited for other purposes shall be adjusted appropriately in accordance with such guidance as may be issued by the Government Actuary).

(9)

Where paragraph (1)(c) or (d) applies, the election under paragraph (2) may only be made—

(a)

while the member remains an active member, or

(b)

not later than 30 days after he stops being an active member or such later date as the employing authority may agree.

(10)

But the employing authority may not agree under paragraph (9)(b) to the election being made later than—

(a)

one year before the member's NRD, or

(b)

the expiry of the period of six months beginning with the date he stops being an active member,

whichever is later.

(11)

Where a person who has stopped being employed by an employing authority or being a member receives—

(a)

an ill-health grant under regulation 27,

(b)

a repayment of contributions under regulation 87, or

(c)

a payment under regulation 88(2),

he must immediately be paid the accumulated value of the invested additional contributions mentioned in regulation 64(2).