Paragraph 4 Pension credit benefitF1
The pension credit benefit to which a pension credit member shall be entitled under the AVC scheme shall consist of a pension F2(including, where appropriate, a pension commencement lump sum).
A pension credit member shall be entitled to the payment of the pension credit benefit when he reaches normal benefit age.
A pension payable in accordance with this paragraph shall be payable to the pension credit member for life.
The value of the pension referred to in F3sub-paragraph (1) and any alternative benefit referred to in sub-paragraph (5A) shall be equal to the value of the pension credit rights which have accrued to or in respect of the pension credit member.
Not earlier than 3 months before the date he reaches normal benefit age, a pension credit member, by giving notice to the Secretary of State, shall make a benefits election which shall specify—
whether only a pension payable for life is to be provided;
whether a pension commencement lump sum and a pension payable for life is to be provided;
for whom, if anyone, a dependant’s pension is to be provided;
if more than one such pension is to be provided, either—
the proportion of the amount secured by the total investments made under paragraph 2 that is to be applied to the purchase of each of them; or
the dependants' pensions to be provided expressed as a percentage of the pension for life;
in respect of each pension to be provided, whether the annual rate of the pension—
is to be fixed; or
is to vary in accordance with the Index; or
is to increase yearly by a specified percentage or, if lower than that percentage, by the increase in the Index for the year in question; and
the authorised provider who is to provide each pension.
An authorised provider selected by the Secretary of State—
must provide a pension credit member with an option to receive the benefits referred to in sub-paragraph (5)(a), (aa) and (b); and
may, as from 6th April 2015, provide such a member with an option to receive the alternative benefits referred to in sub-paragraph (5B).
Those alternative benefits are benefits that are equivalent in value to the benefits referred to in sub-paragraph (5)(a), (aa) and (b) and which comply with the requirements of the 2014 Act.
A member who wishes to be provided with such alternative benefits must elect to do so by giving the Secretary of State notice in writing not earlier than 3 months before attaining normal benefit age.
For the purposes of this Schedule the authorised provider must meet the requirements referred to in regulations 12 to 14 of the Pension Sharing (Pension Credit Benefit) Regulations 2000.
Upon receipt of a notice of election under sub-paragraph (5) F7, or as the case may be, sub-paragraph (5C) the Secretary of State shall, as soon as reasonably practicable, realise the investments made under paragraph 2 and—
where sub-paragraph (5)(aa) does not apply, apply the proceeds to the purchase of an annuity from the authorised provider specified in the notice of election;
where that sub-paragraph does apply—
pay the percentage of the proceeds specified in the notice of election as a pension commencement lump sum, and
apply the balance of those proceeds to the purchase of an annuity from the authorised provider specified in that notice,
where sub-paragraph (5C) applies, pay the alternative benefits the pension credit member has elected to be provided with,
and not otherwise.
Where the conditions in sub-paragraph (9) are satisfied, the Secretary of State may realise the investments made under paragraph 2 and apply the proceeds to the purchase of benefits under these Regulations from an insurer that the Secretary of State considers—
suitable,
will satisfy the requirements of regulations 12 to 14 of the Pension Sharing (Pension Credit Benefit) Regulations 2000,
will comply with the requirements of the 2014 Act, and
will fully discharge its liability for payment of benefits under these Regulations.
Those conditions are that the pension credit member has—
attained normal benefit age on, or after, 1st May 2001, and
attained the age of 75 and not given notice of an election under sub-paragraph (5) before doing so.
Paragraph (8) applies notwithstanding that the benefits are payable to a pension credit member by virtue of that member being a member of the NHS Pension Scheme under—
Part E or regulation L1 of the 1995 Regulations (benefits for members and preserved pension);
regulation 2.D.1, 2.D.4, 2.D.5, 2.D.8, 2.D.10, 2.D.11, 3.D.1, 3.D.4, 3.D.5, 3.D.7, or 3.D.9 of the 2008 Regulations (normal retirement pensions, actuarially reduced pensions, ill health pensions and early retirement pensions); or
regulation 73, 79, 81, 82, 84, 90 or 94 of the 2015 Regulations (age retirement, early retirement, partial retirement and ill-health pensions).
Annotations
Textual amendments
- F1
Sch. 2 inserted (1.5.2001) by The National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001 (S.I. 2001/1428), reg. 1, Sch. 2 para. 6
- F2
Words in Sch. 2 para. 4(1) added (6.4.2006) by The National Health Service (Pension Scheme, Injury Benefits and Additional Voluntary Contributions) Amendment Regulations 2006 (S.I. 2006/600), regs. 1(2)(b), 40(2)(a)
- F3
Words in Sch. 2 para. 4(4) substituted (1.4.2015) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2015 (S.I. 2015/96), regs. 1(2), 65(3)(a)
- F4
Sch. 2 para. 4(5)(aa) inserted (6.4.2006) by The National Health Service (Pension Scheme, Injury Benefits and Additional Voluntary Contributions) Amendment Regulations 2006 (S.I. 2006/600), regs. 1(2)(b), 40(2)(b)
- F5
Sch. 2 para. 4(5A)-(5C) inserted (1.4.2015) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2015 (S.I. 2015/96), regs. 1(2), 65(3)(b)
- F6
Sch. 2 para. 4(7) substituted (6.4.2006) by The National Health Service (Pension Scheme, Injury Benefits and Additional Voluntary Contributions) Amendment Regulations 2006 (S.I. 2006/600), regs. 1(2)(b), 40(2)(c)
- F7
Words in Sch. 2 para. 4(7) inserted (1.4.2015) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2015 (S.I. 2015/96), regs. 1(2), 65(3)(c)(i)
- F8
Sch. 2 para. 4(7)(c) inserted (1.4.2015) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2015 (S.I. 2015/96), regs. 1(2), 65(3)(c)(ii)
- F9
Sch. 2 para. 4(8)-(10) substituted for Sch. 2 para. 4(8)(9) (1.4.2015) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2015 (S.I. 2015/96), regs. 1(2), 65(3)(d)