Regulation 2 Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 1985

At the beginning of regulation 2A of the Occupational Pension Schemes (Transfer Values) Regulations 1985^f1 there shall be inserted the words “Subject to regulation 2C,” and after regulation 2B of those Regulations there shall be inserted the following regulation —

“Right to further cash equivalent on termination of employment

2C

(1)

This regulation applies to a case where regulation 2A of these Regulations has operated to reduce the cash equivalent to which a member acquired a right under paragraph 12 on termination of his pensionable service and subsequently his employment in employment to which the scheme applies terminates on a date which is at least one year earlier than the date on which he would attain the age which is the normal pension age for that scheme.

(2)

In a case to which this regulation applies a right at the relevant date to the cash equivalent of any part of the benefits specified in paragraph 12(1) which, but for the operation of regulation 2A of these Regulations, he would have on termination of his pensionable service in employment to which the scheme applies shall accrue to the member on the date when that employment terminates and shall be valued accordingly.

(3)

In relation to any case to which this regulation applies there shall be substituted for the definitions of “relevant date” in paragraph 12(2) and of “the last option date” in paragraph 15(2) the following definitions —

• “relevant date” means the date when the member’s employment in employment to which the scheme applies terminates or the date of the relevant application, whichever is the later, and

• “the last option date” means the date which falls —

  1. (a)

     one year before the date on which he attains normal pension age; or

  2. (b)

     six months after the date when his employment in employment to which the scheme applies terminates,

  whichever is the later.”.