Office of Public Sector Information
SCHEDULE 7 continued
33 Where the scheme is a prescribed scheme or a scheme of a prescribed description, this Schedule applies with such modifications as may be prescribed.
34 (1) In this Schedule “normal pension age”, in relation to the scheme and any pension or lump sum under it, means the age specified in the admissible rules as the earliest age at which the pension or lump sum becomes payable without actuarial adjustment (disregarding any admissible rule making special provision as to early payment on the grounds of ill health).
(2) Where different ages are specified in relation to different parts of a pension or lump sum—
(a) this Schedule has effect as if those parts were separate pensions or, as the case may be, lump sums, and
(b) references in relation to a part of the pension or lump sum to the normal pension age are to be read as references to the age specified in the admissible rules as the earliest age at which that part becomes payable under the scheme without actuarial adjustment (disregarding any special provision as to early payment on grounds of ill health or otherwise).
(3) In any case where the Board is satisfied that it is not possible to identify the normal pension age from the admissible rules of the scheme, it may, having regard to those rules, determine how the normal pension age is to be determined.
35 (1) In this Schedule, in relation to the scheme, the following expressions have the meaning given by this paragraph—
“admissible rules”;
“recent rule changes”;
“recent discretionary increase”.
(2) The “admissible rules” means the scheme rules disregarding—
(a) in a case where sub-paragraph (3) applies, the recent rule changes, and
(b) in any case, any scheme rule which comes into operation on, or operates by reference, to the winding up of the scheme or any associated event.
(3) This sub-paragraph applies if the combined effect of the recent rule changes and recent discretionary increases is such that, if account were taken of those changes and increases in calculating the protected liabilities in relation to the scheme at the relevant time, those protected liabilities would be greater than they would be if all those changes and increases were disregarded.
(4) In sub-paragraph (3) “the relevant time” means the time immediately before the assessment period which begins on the assessment date.
(5) Subject to sub-paragraph (6), “recent rule changes” means—
(a) changes to the scheme rules which took effect in the period of three years ending with the assessment date, or were made in that period and took effect by reference to an earlier time, and
(b) any scheme rules which come into operation on, or operate by reference to—
(i) an insolvency event in relation to the employer or any associated event, or
(ii) any prescribed event relating to the future of the employer as a going concern.
(6) “Recent rule changes” does not include—
(a) any scheme rules or changes attributable to paragraph 3 of Schedule 5 to the Social Security Act 1989 (c. 24), section 129 of the Pension Schemes Act 1993 (c. 48), section 117 of the Pensions Act 1995 (c. 26), section 31(4) of the Welfare Reform and Pensions Act 1999 (c. 30) or section 306 of this Act (overriding requirements),
(b) any enactment, or any scheme rules or changes which are required or reasonably necessary to comply with an enactment,
(c) any scheme rules or changes that come into operation on, or operate by reference to, the winding up of the scheme or any associated event, and
(d) any scheme rules or changes of a prescribed description.
(7) “Recent discretionary increase” means an increase in the rate of any pension in payment or postponed pension under the scheme rules which took effect in the period mentioned in sub-paragraph (5)(a).
(8) For the purposes of sub-paragraph (7) an increase (“the relevant increase”) in the rate of a pension in payment or postponed pension is to be disregarded to the extent that it does not exceed—
(a) the amount by which the pension in question is required to be increased by virtue of—
(i) the admissible rules, or
(ii) sections 13(1) and 109 of the Pension Schemes Act 1993 (requirement to index and pay guaranteed minimum pensions), or
(b) if greater, the appropriate percentage of the rate of that pension.
(9) For the purposes of sub-paragraph (8)(a), no increase in the rate of a pension which is made at the discretion of the trustees or managers of the scheme, the employer or any other person is to be regarded as an increase required by virtue of the admissible rules.
(10) For the purposes of sub-paragraph (8)(b), “the appropriate percentage” is the percentage increase in the general level of prices in Great Britain during the period—
(a) beginning when the rate of the pension was last increased or, if there has been no previous increase, the date the pension first became payable (or would have been payable but for its being postponed), and
(b) ending with the time the relevant increase was made.
36 (1) In this Schedule, in relation to a member’s entitlement to benefits under the scheme, each of the following expressions has the meaning given by this paragraph—
“accrual rate”;
“pensionable earnings”;
“pensionable service”.
(2) “Accrual rate” means the rate at which under the admissible rules rights to the benefits accrue over time by reference to periods of pensionable service.
(3) “Pensionable earnings” means the earnings by reference to which the benefits are calculated under the admissible rules.
(4) Subject to sub-paragraph (5), “pensionable service” means—
(a) actual service in any description of employment to which the scheme applies which qualifies the member for benefits under the scheme, and
(b) any notional service allowed in respect of the member under the admissible rules which qualifies the member for such benefits.
(5) The service within sub-paragraph (4)(b) does not include—
(a) service attributable (directly or indirectly) to a pension credit, or
(b) service of a prescribed description.
37 (1) In this Schedule—
“deferred member”, in relation to the scheme, means a person who, under the admissible rules, has accrued rights other than—
an active member, or
a person who in respect of his pensionable service is entitled to the present payment of pension or other benefits;
“normal benefit age”, in relation to the scheme and a person with rights to a pension or lump sum under it attributable (directly or indirectly) to a pension credit, means the age specified in the admissible rules as the earliest age at which that pension or lump sum becomes payable without actuarial adjustment (disregarding any scheme rule making special provision as to early payment on grounds of ill health or otherwise);
“pension credit member”, in relation to the scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit;
“pension credit rights”, in relation to the scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit;
“retail prices index” means—
the general index of retail prices (for all items) published by the Office for National Statistics, or
where that index is not published for a month, any substituted index or figures published by that Office;
“the scheme” is to be construed in accordance with paragraph 1.
(2) For the purposes of this Schedule the accrued rights of a member of the scheme at any time are the rights (other than rights attributable (directly or indirectly) to a pension credit) which, in accordance with the admissible rules, have accrued to or in respect of him at that time to future benefits.
(3) In this Schedule references to a pension or lump sum under the admissible rules of the scheme, or a right to such a pension or lump sum, do not include a pension or lump sum, or right to a pension or lump sum, which is a money purchase benefit.
(4) In this Schedule references to “ill health” are to be construed in accordance with regulations under this sub-paragraph.
Pensions Act 2004