Regulation 4C Statutory underpin: flexible retirementF1C1
This regulation applies in relation to an eligible member whose final underpin date is that in regulation 4H(1)(b) (statutory underpin: final underpin date – flexible retirement).
The pension account to which the final underpin date relates (“the pension account”) is to be increased by a percentage of the final guarantee amount that is equal to the percentage of the retirement pension that the eligible member takes under regulation 30(6) of the 2013 Regulations.
On each occasion where the amount of pension taken by the eligible member under regulation 30(6) of the 2013 Regulations is less than 100% of the member’s relevant pension, at the next occurring final underpin date (“the subsequent final underpin date”), a further calculation of the eligible member’s final assumed benefits and final underpin amount relating to the flexible retirement is to be completed in accordance with regulations 4K and 4L.
Where, on the subsequent final underpin date, the eligible member’s final assumed benefits are exceeded by their final underpin amount, the pension account is to be increased by a percentage of the final guarantee amount that is equal to the percentage of the original retirement pension that the eligible member took on the subsequent final underpin date.
Where paragraph (2) or (4) apply, the pension account is to be increased on the day after the eligible member’s final underpin date or subsequent final underpin date, as the case may be.
In paragraph (4), “original retirement pension” means the amount of the eligible member’s retirement pension as at the day of the eligible member’s first final underpin date.
Paragraphs (8) to (10) apply where the eligible member—
began their reduced working hours or grade of employment during the underpin period; and
accrued benefits—
after taking payment of a retirement pension under regulation 30(6), but
before the end of the underpin period.
At the eligible member’s next occurring underpin date (the “additional underpin date”), the eligible member’s provisional assumed benefits and provisional underpin amount are calculated in accordance with regulations 4I and 4J, but—
the underpin period for the purpose of those calculations begins with the day on which the eligible member’s reduced hours or grade began; and
those calculations are not to include any period which has already been used in the calculation of a final guarantee amount in relation to the pension account.
At the eligible member’s next occurring final underpin date (which may be on the same day as the additional underpin date, or after), the eligible member’s final assumed benefits and final underpin amount in relation to their pension account are calculated in accordance with regulations 4K and 4L but using the provisional assumed benefits and provisional underpin amounts as provided for in paragraph (8).
Where the eligible member’s final assumed benefits, calculated in accordance with paragraph (9), are exceeded by their final underpin amount—
where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(a) to (e), the pension account is to be increased on the day after that date by an amount equal to the difference;
where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(f), regulation 4D(2) applies;
where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(g) or (h), regulation 4E(2) applies;
where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(i), regulation 4F(2) applies.
In this regulation “relevant pension” is the pension built up in the 2014 Scheme before the member’s first final underpin date.
Annotations
Textual amendments
- F1
Regs. 4A-4V inserted (1.10.2023) by The Local Government Pension Scheme (Amendment) (No. 3) Regulations 2023 (S.I. 2023/972), regs. 1(2), 2(4)
Modifications
- C1
Regs. 4A-4V restricted (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2)(5), 15