Article 14 Modification of benefits and obligations in relation to National Insurance

(1)

In this rule—

“insured person” means an insured person within the meaning of the National Insurance Act 1965 or, if the person left approved employment before 5th July 1948, an insured person under the National Health Insurance Acts 1936 to 1938 or the Widows', Orphans' and Old Age Contributory Pensions Act 1936;
“pension scheme modification provisions” means any provisions analogous to the modification regulations and contained in or relating to an approved pension scheme, whereby the benefits provided under that scheme are modified in pursuance of any enactment re-enacted in the National Insurance Act 1965, whether directly, or indirectly, by adjustment of remuneration by reference to which benefits are calculated, or otherwise;
“unreduced” in relation to a transfer value, means without reduction pursuant to paragraph 8 of schedule 1 by reason of the provisions for flat-rate retirement pension in the National Insurance Act 1965.

(2)

Where the following conditions are satisfied in relation to a person to whom this part of these rules applies, namely—

(a)

that he was an insured person in his approved employment, and

(b)

that a transfer value is received which is unreduced in respect of the whole of the period of employment which he becomes entitled to reckon under these rules,

the modification regulations shall apply to him as a person who retains unmodified status.

(3)

Where the conditions specified in paragraph (2) above are not satisfied in relation to such a person, the modification regulations shall apply to him as if any period of employment which he becomes entitled to reckon under these rules were service rendered after 5th July 1948:

Provided that—

(a)

if part of the transfer value is received unreduced, the period of employment to which that part relates shall be treated as service before 1st September 1947; and

(b)

if on or before 5th July 1948 the pension scheme modification provisions (or any corresponding provisions contained in any scheme to which he was formerly subject in employment which was reckonable as service for the purposes of the approved pension scheme) modified benefit by reference to a table and to age at a given date, schedule 1 to the modification regulations shall apply to him as a person entitled to the optant's rate, except that references to the material date shall be construed as references to the date which was relevant for purposes of the pension scheme modification provisions.

(4)

Nothing in this rule shall affect the application of regulation 32 of the modification regulations (which provides for reduction of local government pensions in respect of certain former employments).