Regulation 5 Amendment of the Occupational Pension Schemes (Revaluation) Regulations 1985

The Occupational Pension Schemes (Revaluation) Regulations 1985^f1 shall be amended in accordance with the provisions of this regulation.

In regulation 1(2), in the definition of “normal pension age” etc. for “regulation 3” there shall be substituted “regulations 3 and 10 to 12”.

After regulation 9 of those Regulations there shall be inserted the following regulations—

“Retirement benefits varied at state pension age

10

In a case where a scheme contains a provision that the pension or other retirement benefit payable to a member under it at normal pension age falls to be varied at state pension age (that is age 60 years for a woman or age 65 years for a man), Schedule 1A to the Social Security Pensions Act 1975 shall have effect as if:—

(a)

on the date on which the member attains normal pension age, D in the formula set out in paragraph 2(2) was the amount of the pension or other retirement benefit payable at normal pension age; and

(b)

on the member attaining state pension age the appropriate amount fell to be recalculated on the basis that state pension age was normal pension age for that member except that for the purposes of the calculation any increase in the member’s pension or other retirement benefit between his actual normal pension age and state pension age was to be disregarded.

Refunds in respect of service prior to 6th April 1975

11

Where a member’s pensionable service includes a period before 6th April 1975 and in respect of which payment of a lump sum (whether or not being or including a payment by way of a refund of contributions) has been made to him, Schedule 1A to the Social Security Pensions Act 1975 shall have effect as if—

(a)

that period of service was excluded from C in the formula set out in paragraph 2(2); and

(b)

D in that formula was reduced by an amount representing any pension or other retirement benefit which accrued in consequence of the lump sum.

Rounding

12

Schedule 1A to the Social Security Pensions Act 1975 shall have effect so as to allow scheme rules to make provision for the length of a member’s qualifying pensionable service and pensionable service, set out in paragraph 2(2) as items B and C respectively, to be expressed in whole numbers of months, provided that—

(a)

the method of rounding to a whole month is the same for both item B and item C and involves rounding only to the nearest, next highest or next lowest month;

(b)

subject to paragraph (c) below, in calculating the amount of any pension or other benefit due to the member under scheme rules provision is made for rounding pensionable service to a period of a whole month or a greater period; and

(c)

where the member’s pensionable service commenced prior to 1st January 1985 his qualifying pensionable service shall, for the purposes of any calculation such as is referred to in paragraph (a) above, be taken to have commenced on that date.

Application of revaluation requirement to schemes with an overseas element

13

(1)

This regulation applies to any scheme which has an overseas element within the meaning of regulation 21(1) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1984^f2.

(2)

In the case of a scheme to which this regulation applies Schedule 1A to the Social Security Pensions Act 1975 shall be so modified that provisions of that Schedule relating to revaluation apply to that scheme only to the extent that the preservation requirements apply to it by virtue of regulation 21 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1984.

Termination of pensionable service

14

(1)

Subject to paragraph (3) below, where the pensionable service of a member of an occupational pension scheme terminates in the circumstances set out in paragraph (2) below, Part I of Schedule 1A to the Social Security Pensions Act 1975 shall have effect as if that service had not terminated.

(2)

The circumstances referred to in paragraph (1) above are that—

(a)

the pensionable service which has terminated is a period of such service which is one, other than the last one, of a series of such periods in employment to which the scheme relates; and

(b)

there is between successive periods of pensionable service—

(i)

no interval;

(ii)

an interval not exceeding 1 month, or

(iii)

an inerval of any lenth if it is between 2 periods of pensionable service the second of which results from the exercise of a right to return to work under section 45(1) of the Employment Protection (Consolidation) Act 1978^f3 (right to return to work following pregnancy or confinement), or

(iv)

an interval of any length it it is between 2 periods of pensionable service the second of which results from a return to work by the member following a period of absence arising in conseqence of a trade dispute within the meaning of section 19(2)(b) of the Social Security Act 1975^f4.

(3)

This regulation shall not have effect where the trustees or managers of a scheme have, during any interval such as is set out in paragraph (2)(b)(ii) to (iv) above, done what is needed to carry out what a member requires in exercising an option available to him under paragraph 13.”.