Regulation 5 Contributions

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg.5 amended by Parliamentary Pension Scheme (Additional Voluntary Contributions) 1999 reg 4
reg. 5(1) words omitted by Parliamentary Pensions 2006 reg. 21(3)(a) Sch. 2
reg. 5(2)(3) omitted by Parliamentary Pensions 2006 reg. 21(3)(b)
reg. 5(4) substituted by Parliamentary Pensions 2006 reg. 21(3)(c)

(1)

A contributor may make contributions to the AVC scheme of such amount within limits imposed by the Board of Inland Revenue, at such times and in such manner as may be specified by the Trustees, with the approval of the institution with which the contributions are to be invested.

(2)

A contributor’s contributions to the AVC scheme in any tax year must not exceed whichever is the smaller of—

(a)

(i)

in the case of a single contribution (if permitted by the Trustees), such amount determined by the Trustees on a basis acceptable to the Board of Inland Revenue which, if the contributor were to leave service immediately after payment, is likely to provide benefits equal to the limits set out in regulation 11; or

(ii)

in the case of an annual contribution, such amount determined by the Trustees on a basis acceptable to the Board of Inland Revenue which, if maintained at that level until the contributor’s normal retirement date, is likely to provide benefits equal to the limits set out in regulation 11; and

(b)

that percentage of the contributor’s total salary which, together with any contributions made by the contributor to any other schemes providing benefits in respect of service, will bring the total of contributions to 15 per cent of that salary, or, in the case of a Class A contributor, where his annual salary exceeds the permitted maximum, to 15 per cent of that permitted maximum.

(3)

In sub-paragraph (2)(b) above, a contributor’s total salary means—

(a)

in respect of a contributor who is a participating Member who holds or has held the office of Prime Minister and First Lord of the Treasury or Speaker of the House of Commons, his salary as defined by regulation D1(2)(a) of the principal Regulations; or

(b)

in respect of any other contributor who is a participating Member and not a participating office holder, a Member’s ordinary salary; or

(c)

in respect of a contributor who is both a participating Member and a participating office holder, a Member’s ordinary salary and the amount defined by regulation D2(2)(a) of the principal Regulations; or

(d)

in respect of a contributor who is a participating office holder and not a Member of the House of Commons, the amount defined by regulation D2(2)(b) of the principal Regulations.

(4)

A transfer value to the AVC scheme shall only be accepted by the Trustees if it is from either—

(a)

a free-standing additional voluntary contributions scheme, which is not an appropriate personal pension scheme which satisfies the requirements prescribed under Schedule 1 to the Social Security Act 1986^f1; or

(b)

an additional voluntary contributions scheme which is an approved scheme,

provided that, in either case—

(i)

it is certified by the administrator of that scheme to represent only the realisable value of the contributor’s own contributions to that scheme; and

(ii)

acceptance will not cause the contributor’s benefits to exceed the limits set out in regulation 11.

Annotations

Footnotes

f1: 1986 c. 33; Schedule 1 was amended by the Social Security Act 1989 (c. 24), Schedule 6, paragraphs 19(1) and (2) and 20(1), (2) and (3) and Schedule 9.