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Rule 4 Payment of RMSPS benefits, retirement options and flexible retirementI1I2

United Kingdom

(1)

A Member’s RMSPS NRA60 Benefits and RMSPS NRA65 Benefits are separate benefit entitlements, and shall constitute separate arrangements for the purposes of the Finance Act 2004, provided that the F1Minister for the Civil Service has the power to arrange the benefits under the RMSPS (in respect of one or a number of Members) so that RMSPS NRA60 Benefits and RMSPS NRA65 Benefits constitute the same arrangement for the purposes of the Finance Act 2004.

(2)

Despite any other provision of these Section B Rules but subject to General Rule 7 (Application of Sections A and B – election for Section B benefits), sub-paragraph (4) below in relation to Wholly Discharged RMPP Members and Partially Discharged RMPP Members and sub-paragraph (5) below in relation to Nil Margin Members—

(a)

a Member’s RMSPS NRA60 Benefits—

(i)

will come into payment automatically under the RMSPS when that Member draws or is paid RMPP NRA60 Benefits from the RMPP having obtained all necessary consents under the RMPP to do so; and

(ii)

may not come into payment under the RMSPS until that Member draws or is paid RMPP NRA60 Benefits from the RMPP;

(b)

a Member’s RMSPS NRA65 Benefits—

(i)

will come into payment automatically under the RMSPS when that Member draws or is paid RMPP NRA65 Benefits from the RMPP having obtained all necessary consents under the RMPP to do so; and

(ii)

may not come into payment under the RMSPS until that Member draws or is paid RMPP NRA65 Benefits from the RMPP.

Rule 5 (Benefits payable to Members who retire on ill health grounds or compassionate grounds), Rule 6 (Benefits payable to Members who retire under the RMPP in the interests of efficiency), Rule 7 (Benefits payable to Members who retire under the RMPP on redundancy) and Rule 8 (Benefits payable to Members who take early voluntary retirement under the RMPP) will in each case apply on a basis that is consistent with this principle (except that sub-paragraphs (4) and (5) below, and any specific provisions that are set out in each of those Rules, will apply in relation to Wholly Discharged RMPP Members, Partially Discharged RMPP Members and Nil Margin Members).

(3)

Where a Member’s RMSPS NRA60 Benefits or RMSPS NRA65 Benefits—

(a)

should have come into payment automatically under Paragraph (2)(a) or (b)above but have not come into payment, the Member shall be paid the relevant RMSPS NRA60 Benefits or RMSPS NRA65 Benefits in arrears, with such Interest, if any, as the Minister for the Civil Service considers appropriate; and

(b)

have come into payment, but the RMPP NRA60 Benefits or RMPP NRA65 Benefits, as appropriate under Paragraph (2)(a) or (b) above, have not come into payment, the relevant RMSPS NRA60 Benefits or RMSPS NRA65 Benefits will be treated as having been paid in error, and the Minister for the Civil Service must take whatever action he deems appropriate in his absolute discretion to correct the error.

(4)

In the event that a Member—

(a)

ceases to be a member of the RMPP by reason of a transfer of all of that Member’s benefits out of the RMPP (other than a transfer to a New POL Scheme described in Clause 5 (New POL Scheme)) or a discharge of all the Trustee’s obligations to provide benefits to that Member (in either case, other than money purchase benefits) (such Member being a Wholly Discharged RMPP Member); or

(b)

ceases to have a right or entitlement to either that Member’s RMPP NRA60 Benefits or RMPP NRA 65 Benefits for one of the reasons set out in Paragraph (a) above (such Member being a Partially Discharged RMPP Member and that benefit being a Discharged RMPP Benefit),

the following shall apply instead—

(i)

Sub-paragraphs (2) and (3) above will not apply in respect of a Wholly Discharged RMPP Member or, in the case of a Partially Discharged RMPP Member, that Member’s Relevant RMSPS Benefit, unless and to the extent that any benefit under the RMSPS has not yet (or should have) come into payment under sub-paragraph (2).

(ii)

Rule 5 (Benefits payable to Members who retire on ill health grounds or compassionate grounds), Rule 6 (Benefits payable to Members who retire under the RMPP in the interests of efficiency), Rule 7 (Benefits payable to Members who retire under the RMPP on redundancy) and Rule 8 (Benefits payable to Members who take early voluntary retirement under the RMPP) will apply in respect of a Wholly Discharged RMPP Member or, in the case of a Partially Discharged RMPP Member, that Member’s Relevant RMSPS Benefit, on the basis provided for in that Rule.

(iii)

Any Wholly Discharged RMPP Member whose benefits (or some of them) are deferred under Rule 3(8) (Benefits payable to Members on retirement) may elect, any time after Minimum Pension Age to take that Member’s RMSPS NRA60 Benefits or (if applicable) that Member’s RMSPS NRA65 Benefits, or both.

Similarly, if the Relevant RMSPS Benefit of a Partially Discharged RMPP Member is deferred under Rule 3(8) (Benefits payable to Members on retirement), he or she may elect, any time after Minimum Pension Age to take that RMSPS benefit.

In either case, such election shall require the consent of the Minister for the Civil Service (provided that such consent shall not be required in respect of RMSPS NRA60 Benefits if the Member has reached age 60, and shall not be required in respect of RMSPS NRA65 Benefits if the Member has reached age 65). In the case of a Wholly Discharged RMPP Member, if only one tranche of benefit is taken, the other shall continue to be deferred but, for avoidance of doubt, the remaining tranche can subsequently be brought into payment early in accordance with this Rule.

  • Similarly, if the Relevant RMSPS Benefit of a Partially Discharged RMPP Member is deferred under Rule 3(8) (Benefits payable to Members on retirement), he or she may elect, any time after Minimum Pension Age to take that RMSPS benefit.

  • In either case, such election shall require the consent of the Minister for the Civil Service (provided that such consent shall not be required in respect of RMSPS NRA60 Benefits if the Member has reached age 60, and shall not be required in respect of RMSPS NRA65 Benefits if the Member has reached age 65). In the case of a Wholly Discharged RMPP Member, if only one tranche of benefit is taken, the other shall continue to be deferred but, for avoidance of doubt, the remaining tranche can subsequently be brought into payment early in accordance with this Rule.

(iv)

Any Wholly Discharged RMPP Member may draw RMSPS NRA60 Benefits and RMSPS NRA65 Benefits at different times in accordance with the provisions of this Rule. However, if either a Wholly Discharged RMPP Member or a Partially Discharged RMPP Member wishes to draw RMSPS NRA60 Benefits, that Member must draw all of his or her RMSPS NRA60 Benefits at the same time and may not draw only part of his or her RMSPS NRA60 Benefits (and the same applies to RMSPS NRA65 Benefits). Provided that where a Wholly Discharged RMPP Member or Partially Discharged RMPP Member had at the end of the Cut-Off Date two or more periods of RMPP Reckonable Service which were treated separately in accordance with the RMPP Cut-Off Date Rules, the Wholly Discharged RMPP Member or Partially Discharged RMPP Member (as appropriate) may draw benefits from the RMSPS in respect of each period separately on the same basis as applied under the RMPP before 1 April 2010.

(5)

This sub-paragraph applies to a Member (not being either a Partially Discharged RMPP Member whose Relevant RMSPS Benefit is that Member’s RMSPS NRA60 Benefits or a Wholly Discharged RMPP Member) whose RMSPS NRA60 Benefits have not yet been brought into payment and who has a prospective RMPP NRA60 Pension under Rule 4(1)(a) (Retirement at or after Normal Retiring Age) of Section B of the RMPP Rules of nil and a prospective RMPP NRA60 Lump Sum under Rule 4(1)(b) of Section B of the RMPP Rules of nil (as described in Rule 4XA (Deemed crystallisation of NRA60 Benefits where no margin over RMSPS NRA60 Benefits) of Section B of the RMPP Rules) on the earliest of the dates specified in Paragraph (d) below (any such Member being a Nil Margin Member).

(a)

Sub-paragraphs (2) and (3) above will not apply in respect of the Nil Margin Member, if and to the extent that any benefit under the RMSPS has not yet (or should have) come into payment under sub-paragraph (2).

(b)

Rule 5 (Benefits payable to Members who retire on ill health grounds or compassionate grounds), Rule 6 (Benefits payable to Members who retire under the RMPP in the interests of efficiency), Rule 7 (Benefits payable to Members who retire under the RMPP on redundancy) and Rule 8 (Benefits payable to Members who take early voluntary retirement under the RMPP) will apply in respect of the Nil Margin Member on the basis provided for in that Rule.

(c)

The Nil Margin Member may elect to take his or her RMSPS NRA60 Benefits at any time after Minimum Pension Age. This election shall require the consent of the Minister for the Civil Service (provided that such consent shall not be required if the Nil Margin Member has reached age 60). If only the RMSPS NRA60 Benefits are taken, the RMSPS NRA65 Benefit shall continue to be deferred but, for avoidance of doubt, the RMSPS NRA65 Benefits can subsequently be brought into payment early in accordance with sub-paragraph (2) or (4) above, as appropriate.

(d)

The dates specified for the purposes of this Rule are—

(i)

the Nil Margin Member’s RMPP Exit Date;

(ii)

the effective date of any election by the Nil Margin Member for the purposes of the RMPP under Rule 4A of Section B of the RMPP Rules, which results in the Nil Margin Member ceasing to accrue further benefits under the RMPP or which would require his or her RMPP NRA60 Benefits to be paid immediately; and

(iii)

the date of an election by the Nil Margin Member to receive his or her RMSPS NRA60 Benefits under Paragraph (c) of this Rule.

(6)

Any benefits of a Wholly Discharged RMPP Member or a Nil Margin Member, or the Relevant RMSPS Benefit of a Partially Discharged RMPP Member (as the case may be) that (in any such case) have not come into payment (whether RMSPS NRA60 Benefits, RMSPS NRA65 Benefits or both) must commence payment no later than Normal Retiring Age (provided that no Member will be treated as becoming a Nil Margin Member by the operation of this sub-paragraph if they would not otherwise at that time have become a Nil Margin Member at their Normal Retiring Age).

(7)

While the Member remains in employment to which the RMPP relates, the Member’s consent will not be required to defer payment of his or her GMP after age 65 (being the expiration of five years from the date on which that Member attains Normal Retiring Age in respect of that Member’s RMSPS NRA60 Benefits). Section 13(5)(b) of the Pension Schemes Act 1993 (as applied to the RMSPS by the Contracting-out Laws) shall apply subject to this exemption from its requirements. This sub-paragraph shall not apply to a Wholly Discharged RMPP Member, a Partially Discharged RMPP Member whose Relevant RMSPS Benefit is his or her RMSPS NRA60 Benefits. This sub-paragraph shall apply to a Nil Margin Member who remains in employment with an Employer, notwithstanding that there is at that time no RMPP NRA60 Benefit payable to the Member.

Annotations

Textual amendments

F1

Words in Sch. 1 substituted (2.4.2014) by The Transfer of Functions (Royal Mail Pension Plan) Order 2014 (S.I. 2014/500), arts. 1(2), 6(3) (with art. 4)

Commencement

I1

Sch. 1 Pt. IV rule 4 not in force at made date, see art. 1(3)

I2

Sch. 1 Pt. IV rule 4 in force at 1.4.2012 by S.I. 2012/966, arts. 2, 3(a)