Regulation 32 Members' contributions: redundancy

(1)

This regulation applies if—

(a)

a member's (M) employment is terminated by reason of redundancy;

(b)

M will become entitled to payment of a pension under regulation 82 on the entitlement day for a premature retirement pension;

(c)

the additional contribution option applies to M; and

(d)

unless M pays an additional contribution as mentioned in paragraph (2), the amount of M's pension would be reduced pursuant to paragraph 7(5) of Schedule 13.

(2)

M may pay such additional contribution as the scheme manager (having regard to the advice of the scheme actuary) determines will be sufficient to meet the cost of the pension insofar as that is not met by the contribution paid by M's employing authority under regulation 35.

(3)

For the purposes of paragraph (2), the scheme manager must provide M's employing authority with such information as will enable the employing authority to notify M as to the effect that paying contributions of any particular amount would have on the amount of the pension payable to M.

(4)

The amount of the additional contribution payable pursuant to paragraph (2) must be—

(a)

not less than £500 (or such other figure as the scheme manager thinks appropriate);

(b)

a whole number of pounds divisible by £10.

(5)

For the purposes of paragraph (4)—

(a)

if the insufficiency mentioned in paragraph 7(4) of Schedule 13 is less than £500, sub-paragraph (a) is ignored;

(b)

if it is necessary to do so to comply with sub-paragraph (b), the figure must be rounded down to the nearest whole number of pounds divisible by £10.

(6)

If M decides to pay an additional contribution, the amount of the contribution must be paid to M's employing authority in sufficient time to enable the authority to remit the payment to the scheme manager at the same time as the authority pays the contribution it is required to pay pursuant to regulation 35.

(7)

The additional contribution option applies if the terms and conditions of M's employment entitle M optionally to make an additional contribution towards the cost of paying the pension if the lump sum payment is insufficient to meet that cost in full.