SCHEDULE 1
Regulation 2
AMENDMENTS OF THE POLICE PENSIONS REGULATIONS 1987
1. In regulation A10 (aggregate pension contributions for purposes of awards) after paragraph (3) there shall be inserted—
SCH-1.4 “4 If the regular policeman is a pension debit member, the amount of his aggregate pension contributions under this regulation is reduced by such amount as is assessed in accordance with guidance issued by the Government Actuary.”.
2. In regulation B8(1) (commutation of small pensions) after “together with” there shall be inserted “any pension to which he is entitled under regulation M1 (pension credit members' entitlement to pension) and”.
3. After regulation B11 the following regulation shall be inserted—
SCH-1.B12 “Pension debit members
B12. Where a pension debit member is entitled to an award under regulation B1, B2, B3 or B5—
(a) the award is calculated by reference to the member’s rights under these Regulations as reduced by virtue of section 31 of the 1999 Act and in accordance with such tables and other guidance as are provided for the purpose by the Government Actuary, and
(b) regulations B7 to B10 have effect accordingly.”.
4. After regulation C9 the following regulation shall be inserted—
SCH-1.C10 “Pension debit members
C10. Where a pension debit member dies leaving a surviving spouse, any award under regulation C1, C4, C5, C6, C7 or C8, and the pension under any of those regulations by reference to which any payment under regulation C9 is made, is calculated by reference to the member’s rights under these Regulations as reduced by virtue of section 31 of the 1999 Act and in accordance with such tables and other guidance as are provided for the purpose by the Government Actuary.”.
5. After regulation D5 the following regulation shall be inserted—
SCH-1.D6 “Pension debit members
D6. Where a pension debit member dies leaving a child, any award payable under this Part—
(a) is first calculated as if the member were not a pension debit member, and
(b) is then subject to any reduction required under section 31 of the 1999 Act.”.
6. After regulation E10 the following regulation shall be inserted—
SCH-1.E11 “Pension debit members
E11. Where a pension debit member dies any award in respect of him under this Part is calculated by reference to the member’s rights under these Regulations as reduced by virtue of section 31 of the 1999 Act and in accordance with such tables and other guidance as are provided for the purpose by the Government Actuary.”.
7. In regulation F8A10(former police authority to provide certificate of the amount of pensionable service giving entitlement to pension), at the end of paragraph (2) there shall be added—
“(c)
“(c) whether that policeman is a pension debit member and, if so, the reduction in his rights by virtue of section 31 of the 1999 Act.”.
8. After regulation F10 the following regulation shall be inserted—
SCH-1.F10A “Prohibition on accepting or paying transfer values for pension credit rights
F10A. A transfer value may not be accepted or paid in respect of any pension credit rights.”.
9. At the end of regulation K5(1) (forfeiture of pension) there shall be inserted the words “or to a pension payable to a pension credit member under regulation M1 (pension credit members' entitlement to pension)”.
10. In regulation L1 (authorities responsible for payment of awards) after paragraph (2) there shall be inserted—
SCH-1.3 “3 An award payable to or in respect of a pension credit member under Part M, and any sum paid in commutation of such an award, is payable by the relevant police authority.
SCH-1.4 4 In these Regulations “the relevant police authority”, in relation to a pension credit member, means the police authority who employ the pension debit member in question at the time when the pension sharing order takes effect or, if he is not then employed by a police authority, the police authority by whom he was last employed.”.
11. In regulation L4(1) (payment of awards otherwise than to beneficiary and application of payments) after the words “member of a police force” there shall be inserted “or a pension credit member”.
12. After Part L there shall be inserted the following Part—
“PART M
Pension Credit Members
Pension credit member’s entitlement to pension
M1.—(1) Subject to regulations M2 and M3 (commutation), a pension credit member is entitled to a pension for life which becomes payable—
(a)
(a) when he attains normal benefit age, or
(b)
(b) if it is later, when the pension sharing order under which he is entitled to the pension credit takes effect.
(2) The pension must be of such an amount that its actuarial value is equal to the member’s pension credit, as calculated from tables prepared by the Government Actuary and in accordance with regulations made under paragraph 5(b) of Schedule 5 to the 1999 Act.
Commutation: general provision
M2.—(1) Subject to regulation M3, a pension credit member may opt to commute for a lump sum a portion of the pension (not exceeding one-quarter) to which he is entitled under regulation M1—
(a)
(a) when he attains normal benefit age, or
(b)
(b) if it is later, when the pension sharing order under which he is entitled to the pension credit takes effect.
(2) The lump sum under paragraph (1) is the actuarial equivalent of the commuted portion of the pension, calculated from tables prepared by the Government Actuary.
(3) But the lump sum may not exceed the annual rate of the pension as at the time when it first becomes payable (disregarding any reduction under this regulation or any other provision of the Scheme), multiplied by 2.25.
(4) This rule does not apply to a pension derived from pension credit rights if the pension debit member from whose rights the pension is derived has received a lump sum under rule B7 before the date on which the pension sharing order takes effect.
(5) A person who wishes the relevant police authority to commute a pension under paragraph (1) must not later than six months after—
(a)
(a) the date on which the person attains normal benefit age, or
(b)
(b) the date on which the pension sharing order takes effect,
whichever is the later, give the relevant police authority written notice of commutation, specifying the portion to be commuted.
(6) Notice of commutation takes effect on the later of—
(a)
(a) the date on which the pension under regulation M1 becomes payable, and
(b)
(b) the date on which it is received by the police authority.
(7) When a person’s notice of commutation takes effect, the relevant police authority shall—
(a)
(a) reduce the pension, as from the effective date, by the commuted portion, and
(b)
(b) pay him the lump sum, reduced where the effective date is the date of receipt...
