Section 8 Types of schemeI1

(1)

Scheme regulations may establish a scheme under section 1 as—

(a)

a defined benefits scheme,

(b)

a defined contributions scheme, or

(c)

a scheme of any other description.

(2)

A scheme under section 1 which is a defined benefits scheme must be—

(a)

a career average revalued earnings scheme, or

(b)

a defined benefits scheme of such other description as regulations made by the Department of Finance and Personnel may specify.

(3)

Such regulations may not specify a final salary scheme under subsection (2)(b).

(4)

A scheme under section 1 is a “career average revalued earnings scheme” if—

(a)

the pension payable to or in respect of a person, so far as it is based on the person's pensionable service, is determined by reference to the person's pensionable earnings in each year of pensionable service, and

(b)

those earnings, or a proportion of those earnings accrued as a pension, are under the scheme revalued each year until the person leaves pensionable service.

F1(4A)

The extent to which a scheme under section 1 is a career average revalued earnings scheme is not affected by provision contained in scheme regulations that is made under section 78 of PSPJOA 2022 (local government schemes: power to pay final salary benefits).

(5)

Regulations made by the Department of Finance and Personnel under subsection (2)(b) are subject to negative resolution.

Annotations

Textual amendments

F1: S. 8(4A) inserted (10.3.2022 for specified purposes, 1.4.2022 in so far as not already in operation) by Public Service Pensions and Judicial Offices Act 2022 (c. 7), ss. 94(15), 131(1)(2)(f)

Commencement

I1: S. 8 in operation at 28.4.2014 by S.R. 2014/123, art. 2(1)(d)