Regulation 3 Modification of Schedule 5A to the Act

(1)

Schedule 5A to the Act (pension increase or lump sum where entitlement to shared additional pension is deferred) shall be modified in relation to transitional cases in accordance with the following paragraphs.

(2)

In paragraph 1(1) (choice between increase of pension and lump sum where pensioner's entitlement is deferred)—

(a)

after the words “12 months” there shall be inserted the words “ and at least 12 months of that period fall after 5th April 2005 ”;

(b)

for paragraph (b) there shall be substituted the following paragraph—

“(b)
that paragraph 2 is to apply in relation to so much of the period of deferment as falls before the first day of the first accrual period (as defined by paragraph 5(2)) beginning on or after 6^th April 2005 and that paragraph 4 (entitlement to lump sum) is to apply in relation to the remainder of the period of deferment.”.

(3)

In paragraph 2(2) (increase of pension where pensioner's entitlement is deferred), for the words from “that amount” to the end of the sub-paragraph, there shall be substituted—

“(a)
there are at least 7 incremental periods in the period of deferment;
(b)
there are at least 5 incremental periods in the period of deferment and the amount of the increment for at least one of those periods is calculated in accordance with paragraph 3(2); or
(c)
the person has made (or is treated as having made) an election under paragraph 1(1)(b) and there is at least one incremental period before the first day of the first accrual period (as defined by paragraph 5(2)) beginning on or after 6^th April 2005.”

(4)

In paragraph 5 (calculation of lump sum)—

(a)

at the end of sub-paragraph (1), there shall be added the words “ or, if greater, the amount equal to the total amount of shared additional pension which would have been payable to the person during the period of 12 months ending with the last day of the period of deferment if his entitlement had not been deferred ”;

(b)

in the definition of “accrual period” in sub-paragraph (2), for the words “a prescribed day of the week”, there shall be substituted the words “ the day of the week on which the person's shared additional pension would have been payable had his entitlement not been deferred ”;