Office of Public Sector Information

Insertion of new regulations G14-G17

29.  After regulation G13 insert—

“Surviving nominated partner’s pension

G14.—(1) A member who has pensionable service on or after 1st April 2008 may, by giving notice in writing to the Secretary of State, nominate a person (“the nominated partner”) to receive a surviving nominated partner pension on the member’s death and such a nomination shall be effective from the date the Secretary of State accepts it.

(2) The Secretary of State must accept a member’s nomination if—

(a) the member and the nominated partner have jointly made and signed a declaration in the form required by the Secretary of State that remains effective at the member’s death; and

(b) the nominated partner satisfies the Secretary of State that for a continuous period of at least two years ending with the member’s death—

(i) the member and the nominated partner were living together as if they were husband and wife or civil partners; or

(ii) the member and the nominated partner were not prevented from marrying or entering into a civil partnership; or

(iii) the member and the nominated partner were financially interdependent or the nominated partner was financially dependent on the member; or

(iv) neither the member nor the nominated partner was living with a third person as if they were husband and wife or as if they were civil partners.

(3) A declaration under paragraph (2)(a) ceases to have effect if—

(a) it is revoked by the member or the nominated partner by a signed notice in writing given to the Secretary of State in the required form (if any); or

(b) the member makes a later declaration under paragraph (2)(a); or

(c) the member or the nominated partner marries or enters into a civil partnership.

(4) If the Secretary of State has accepted a member’s nomination and the member subsequently dies before the member’s nominated partner in the circumstances described in any of regulations G2 to G6, the nominated partner is entitled to a pension as described in paragraphs (6) to (10) of this regulation.

(5) Subject to paragraph (6), regulations G1 to G6 apply to the calculation and payment of pensions for nominated partners in the same manner as they apply to pensions for widows and paragraph (1) of regulation G6 shall be read as if, for the words “where the member and the member’s wife were not married to each other”, it said “where a nomination for a surviving partner pension was not effective” .

(6) When calculating a nominated partner’s pension, any part of the member’s benefit that is based on pensionable service before 6th April 1988 will, subject to paragraphs (7) and (8), be disregarded.

(7) If paragraphs (3) or (3C) of regulation G2 or paragraphs (2) or (2A) of regulation G4 apply to the calculation of the nominated partner’s pension on a member’s death in pensionable employment or with a preserved pension—

(a) the whole of the member’s pensionable service will be taken into account when calculating whether and (if so) to what extent there would have been an increase, by virtue of regulation E2(3) or E2A(4) in the pensionable service on which the member’s pension under regulation E2 or E2A would have been based; and

(b) the whole period (if any) by which the member’s pension would have been increased will be treated as pensionable service after 5th April 1988.

(8) If regulation G3(2) applies to the calculation of the nominated partner’s pension, so that the nominated partner’s pension is equal to the member’s pension for a limited period, the nominated partner’s pension for that limited period will be equal to the whole of the member’s pension (including any part of the member’s pension that is based on pensionable service before 6th April 1988).

(9) Any reference in these Regulations to regulations G1 to G6 means, in relation to benefits in respect of a member who has nominated a partner, those regulations as applicable to the member’s nominated partner (if any).

Dependent surviving nominated partner’s pension

G15.—(1) A member may, by giving notice in writing to the Secretary of State before leaving pensionable employment, apply for the member’s nominated partner to receive a dependent surviving nominated partner’s pension on the member’s death.

(2) The Secretary of State must accept a member’s application only if the Secretary of State is satisfied that the member’s nominated partner is—

(a) permanently incapable of earning a living because of physical or mental infirmity; and

(b) wholly or mainly dependent on the member.

(3) If the Secretary of State has accepted a member’s application and the member subsequently dies before the member’s nominated partner, the dependent surviving nominated partner is entitled to a dependent surviving nominated partner’s pension.

(4) The dependent surviving nominated partner’s pension is to be calculated in the same way as a widow’s pension under regulations G1 to G6 but based only on the member’s pensionable service before 6th April 1988.

(5) If the Secretary of State has accepted a member’s application for a dependent surviving nominated partner’s pension and the member’s pensionable service started before 6th April 1988 any lump sum payable to the member will be reduced by an amount equal to 1.4 times the yearly rate of the part of the member’s pension that is based on pensionable service before 6th April 1988 (except to the extent that any reduction has been off-set under regulation Q2).

(6) If regulation E2(10), regulation E2A(10) or regulation L1(8) (ill health retirement pensions and preserved pension) applies to a member who has a nominated partner, any reference in those provisions to a lump sum payable on retirement means, in relation to a member to whom paragraph (5) of this regulation refers, a lump sum that is not reduced as described in that paragraph.

Purchase of surviving partner’s pension in respect of service before 6th April 1988

G16.—(1) Subject to this regulation, an officer in respect of whom a pension has not already become payable under regulation E2 or E2A (ill health retirement pensions) may, in respect of the whole or any part of the member’s contributing service before 6th April 1988, elect to purchase an increase in the amount of any survivor’s pension that becomes payable under the scheme.

(2) The purchase of an increase under paragraph (1) may be made only in respect of complete years of service, unless the officer wishes to purchase an increase in respect of all of the member’s service before 6th April 1988, in which case the whole of the requisite period may be purchased whether or not it constitutes a multiple of complete years of service.

(3) An election under paragraph (1)—

(a) must not be made later than 30th June 2009;

(b) must be made by notice in writing, given to the Secretary of State;

(c) must specify the period in respect of which the election is made;

(d) must be accompanied by a declaration in writing signed by the officer that he is of sound health for the member’s age;

(e) is irrevocable.

(4) Each figure in tables 2 and 4 of Schedule 1 is multiplied by a factor of 0.7 in respect of the cost of providing the increase provided under paragraph (1).

(5) In this regulation “survivor’s pension” means a pension that becomes payable by virtue of —

(a) regulation G7; or

(b) regulation G10; or

(c) regulation G14.

Increased surviving partner’s pension

G17.—(1) If a member elects on or before 30th June 2009 to buy an increased surviving partner’s pension under regulation G16(1), any survivor’s pension that becomes payable in respect of that member will be based on pensionable service after 5th April 1988 plus any period of pensionable service before that date that the member elected to buy for this purpose under regulation G16(1).

(2) Any survivor’s pension payable in respect of the member shall be paid to (as the case may be) the member’s surviving widower, civil partner or nominated partner regardless of whether that pension is payable by virtue of regulation G7, regulation G10 or regulation G14.

(3) Subject to paragraph (4), any retirement lump sum payable to a member under regulation E6, in respect of any period of pensionable service that the member elected to buy as described in paragraph (1), will be reduced by 1.4 times the yearly rate of the member’s pension plus the relevant daily proportion of that rate for each additional day (except to the extent that any lump sum reduction has been off-set under regulation Q2) (right to buy an unreduced retirement lump sum).

(4) If regulation E2(10), regulation E2A(10) or regulation L1(8) (ill health retirement pensions and preserved pension) applies to a member to whom this regulation refers, any reference in those regulations to a lump sum payable on retirement must be taken to mean a lump sum that is not reduced as described in paragraph (2) of this regulation.

(5) Subject to paragraph (6) if, by virtue of an election under regulation G16(1), the amount of the retirement lump sum would fall to be reduced by 1.4 times the yearly rate of a member’s pension plus the relevant daily proportion of that rate for each additional day, he may make an election to purchase an unreduced lump sum under regulation Q2 provided that the election is made no later than 30th June 2009.

(6) A member who has purchased additional service in accordance with regulation Q1 by way of a payment under regulation Q6 is not entitled to make an election under paragraph (4) in respect of the purchase of an unreduced lump sum.”.

Amendment of regulation H1

30.—(1) Regulation H1 (dependent child) is amended as follows.

(2) In paragraph (1)—

(a) in sub-paragraph (c)(15) for “or civil partner”, substitute “, civil partner or nominated partner”;

(b) after sub-paragraph (d) insert—

“(e) a child of a member’s nominated partner from a nominated partnership formed before the date on which the member leaves pensionable employment,”.

(3) After paragraph (2) insert—

“(2A) A child is a dependent child of a person whose pensionable employment ceases on or after 1st April 2008 for so long as that child is—

(a) under age 23; or

(b) aged 23 or over and incapable of earning a living because of permanent physical or mental infirmity from which that child was suffering at the time the member  died.”.

(4) In paragraph (3)(16) for “A child is a dependent child”, substitute “Subject to paragraphs (6) and (7), a child is a dependent child of a person whose pensionable employment ceases on or before 31st March 2008”.

(5) In paragraph (5) omit the words from “(calculated” to “omitted)”.

Amendment of regulation H3

31.—(1) Regulation H3 (member dies in pensionable employment) is amended as follows.

(2) In paragraph (2) after “paragraph (3),” insert “if the member dies before 1st April 2008”.

(3) After paragraph (2) insert—

“(2A) If the member died on or after 1st April 2008 the allowance will be calculated as described in whichever of paragraphs (4A) or (4D) apply—

(a) as a proportion of the pension that would have been payable to the member under the scheme if the member retired through ill health and had qualified for a tier 2 pension under regulation E2A on the day the member died; or

(b) if greater, the amount that the member’s pension would have been if it had been based on 10 years pensionable service.”.

(4) After paragraph (4) insert—

“(4A) Subject to paragraphs (4B) to (4E), if the member dies leaving a dependent child and there is a surviving parent (or spouse, civil partner or nominated partner of a parent), the allowance will be equal to one-quarter of the pension described in paragraph (2A) if there is only one dependent child and one-half if there are two or more.

(4B) If a widow’s, widower’s, surviving civil partner’s or nominated partner’s pension is payable at the rate mentioned in regulation G2(3B), the allowance payable in respect of any dependent child who is dependent on that widow, widower, surviving civil partner or surviving nominated partner will be payable from the day following the member’s death.

(4C) If a widow’s, widower’s, surviving civil partner’s or nominated partner’s pension is payable at the rate mentioned in regulation G2(3B) but there is a dependent child who is not dependent on that widow, widower, surviving civil partner or surviving nominated partner, the allowance in respect of that child for the first three months after the member’s death will be equal to the rate of member’s pensionable pay when the member died.

(4D) If a member dies leaving a dependent child and there is no surviving parent (or spouse, civil partner or nominated partner of a parent), the allowance will be equal to one-third of the pension described in paragraph (2A) if there is only one dependent child and two-thirds if there are two or more, except that the allowance for the first six months after the member’s death will be equal to the rate of the member’s pensionable pay when the member died.

(4E) If the member dies leaving a dependent child and there is a surviving parent (or spouse, civil partner or nominated partner of a parent) but there is no entitlement to a widow’s, widower’s or surviving civil partner’s pension calculated under regulation G2 (member dies in pensionable employment), the allowance will be paid at the rates described in paragraph (4D).”.

(5) For paragraph (9) after “pay contributions”, insert “on or before 1st April 2008” and for “paragraphs (2) to (8)”, substitute “paragraph (2)”.

(6) After paragraph (10) insert—

“(11) The child allowance payable on a member’s death if, on the day the member died, the member is—

(a) under the age of 75 if not a special class officer or under the age of 70 if a special class officer;

(b) in NHS employment;

(c) no longer required to pay contributions on or after 2^nd April 2008 pursuant to regulation D1(3) or (4) (contributions by members); and

(d) except where regulation R4(6) (members doing more than one job) applies, not in receipt of a pension under any of regulations E1 to E5,

will be as described in paragraph (2A) but with the modifications set out in paragraph (12).

(12) The modifications referred to in paragraph (11) are—

(a) in paragraph (2A)(a) for “on the day he died” substitute “on the member’s last day of pensionable employment”; and

(b) in both paragraph (4C) and (4D) for “member’s pensionable pay when he died” substitute “member’s final year’s pensionable pay”.”.

Amendment of regulation H4

32.—(1) Regulation H4 (member dies after pension becomes payable) is amended as follows.

(2) For paragraph (2) substitute—

“(2) Subject to paragraphs (2A) and (8), the allowance will be calculated, as described in whichever of paragraphs (3) or (4) apply, as a proportion of the amount of the member’s pension or, if greater, the amount that the member’s pension would have been if it had been based on 10 years pensionable service.

(2A) If the member’s pensionable employment ceased on or before 31st March 2008, the allowance will be calculated in whichever of paragraphs (3) or (4) apply, as a proportion of the amount of the member’s pension or, if greater, the amount that the member’s pension would have been if it had been based on the shorter of—

(a) 10 years pensionable service; and

(b) the pensionable service the member could have completed if the member had stayed in pensionable employment until age 65.”.

(3) In paragraph (3) after “or civil partner”, insert “or nominated partner”.

(4) After paragraph (8) insert—

“(9) If a member who was in receipt of a substitute tier 1 pension under regulation E2C (further employment after a benefit is paid under regulation E2A) dies before the end of the protection period that applies to him under regulation E2C(6)(a) or E2C(6)(b), the member’s pension referred to in paragraph (2) means that member’s original tier 2 pension.

(10) For the purpose of paragraphs (2) and (7), no account will be taken of any reduction to the member’s pension under regulation E7 (general option to exchange part of pension for lump sum).”.

Amendment of regulation H5

33.—(1) Regulation H5 (member dies with preserved pension) is amended as follows.

(2) In paragraph (2)—

(a) for “if the member dies” substitute “Subject to paragraph (2A), if the member dies”;

(b) omit “and, if applicable, H3(3)”.

(3) After paragraph (2) insert—

“(2A) Subject to paragraph (2B), if the member’s pensionable employment ceased on or before 31st March 2008 the allowance will be calculated, as described in whichever of paragraphs (4) or (5) apply, as a proportion of the pension that would have been payable to the member under the scheme if the member retired through ill health with a pension under regulation E2 on the day the member died.

(2B) If the member has less than 5 years’ pensionable service, the allowance will be calculated as if the pension described in paragraph (2A) were based on the shorter of—

(a) 10 years’ pensionable service; and

(b) the pensionable service the member could have completed if the member stayed in pensionable employment until age 65.”.

(4) For paragraph (3) substitute—

“(3) Subject to paragraph (3A), if the member dies 12 months or more after leaving pensionable employment, the allowance will be calculated as described in whichever of paragraphs (4) or (5) apply, as a proportion of the amount of the member’s preserved pension or, if greater, the amount that the preserved pension would have been if it had been based on 10 years’ pensionable service.

(3A) If the member’s pensionable employment ceased on or before 31st March 2008, the allowance will be calculated as described in whichever of paragraphs (4) or (5) apply, as a proportion of the amount of the member’s preserved pension or, if greater, the amount of that the preserved pension would have been if it had been based on the shorter of—

(a) 10 years’ pensionable service; and

(b) the pensionable service the member could have completed if the member stayed in pensionable employment until age 65.”.

(5) In paragraphs (4) and (5)(17)—

(a) after “or civil partner”, insert “or nominated partner”;

(b) for “paragraph (2)”, substitute “paragraphs (2) to (3A)”.

(6) In paragraph (6)(18)—

(a) after “or civil partner”, insert “or nominated partner”;

(b) for “or surviving civil partner’s”, substitute “, surviving civil partner’s or surviving nominated partner’s”.

Amendment of regulation H7

34.—(1) In the heading to regulation H7 (dependent child not being maintained by surviving parent or spouse or civil partner of a parent), after “civil partner” insert “or nominated partner”.

(2) In regulation H7(19) after “civil partner” (where three times occurring), insert “or nominated partner”.

Amendment of regulation J1

35.  For paragraph (4)(b) of regulation J1 (allocation of pension) substitute—

“(b) if in pensionable employment—

(i) in the case of a member who is not a special class officer, at any time after completing 45 years pensionable service; or

(ii) in the case of a member who is a special class officer, at any time after reaching age 55 and completing 40 years pensionable service, or”

Substitution of regulation K1

36.  For regulation K1 (contracting-out conditions to be overriding) substitute—

“Contracting-out conditions to be overriding

K1.—(1) The scheme will be administered in conformity with the contracting-out conditions and, with the exception of the circumstances specified in paragraph (2), regulations K2 to K7 override any inconsistent provisions of these regulations.

(2) The circumstances referred to in paragraph (1) are—

(a) if a trivial pension is commuted in accordance with regulation T7; or

(b) if a pension is commuted in accordance with regulations E2(10), E2A(10) or L1(5) (pensions on early retirement due to ill health and preserved pensions); or

(c) if a pension is forfeited for the reasons specified in sub-paragraphs (b) or (c) of regulation T6(1).

(3) In this Part—

(a) “contracting-out conditions” means the conditions specified in sections 9(2A) and 9(2B) of the 1993 Act;

(b) “guaranteed minimum” means the guaranteed minimum as defined in sections 13 to 17 of the 1993 Act;

(c) “guaranteed minimum pension” is a pension calculated in accordance with the guaranteed minimum requirements;

(d) “protected rights” has the same meaning as in the 1993 Act.”.

Amendment of regulation K2

37.—(1) Regulation K2 (guaranteed minimum pensions) is amended as follows.

(2) In paragraph (1) for “section 14 of the Pension Schemes Act 1993 (earner’s guaranteed minimum)”, substitute “section 13 of the 1993 Act”.

(3) In paragraphs (4) and (4A) for “tax year 1988-89 and subsequent tax years”, substitute “tax years 1988-89 to 1996-97 inclusive”.

(4) In paragraph (5) for “tax year 1988-89”, substitute “tax years 1988-89 to 1996-97 inclusive”.

(5) For paragraph (6) substitute—

“(6) A member who on leaving pensionable employment—

(a) becomes entitled to a refund of contributions under regulation L2; or

(b) exercises a right to require a transfer or buy-out in accordance with regulation M2,

but, in either case, remains (as described in regulation L2(3)) entitled to a guaranteed minimum pension or section 9(2B) rights, shall be entitled to the benefits specified in paragraph (7).

(7) The benefits are—

(a) a pension payable from the date on which the member reaches state pension age at a weekly rate equal to the member’s guaranteed minimum (if any); and

(b) a pension and lump sum from the date the member reaches normal benefit age in respect of the member’s section 9(2B) rights.

(8) On the death of a member to whom paragraph (6) applies, no benefit will be payable except for a widow’s, widower’s or surviving civil partner’s pension equal to the aggregate of—

(a) that described in paragraph (3) or, as the case may be, paragraph (4); and

(b) half the member’s pension in respect of section 9(2B) rights.”.

Amendment of regulation L1

38.—(1) Regulation L1 (preserved pension) is amended as follows.

(2) In paragraph (2)(b)(20) after “E1”, insert “as if it were a pension under that regulation”.

(3) In paragraph (3)(b)(21) after “regular employment”, insert “of like duration”.

(4) For paragraph (4) substitute—

“(4) Except in a case to which paragraph (4A) applies—

(a) if the member is in NHS employment at the relevant time (whether with the same or another employing authority), the pension and lump sum on retirement will not become payable until the member leaves NHS employment or, if sooner—

(i) when the member attains the age of 70, if he attains that age on or before 31st March 2008; or

(ii) when the member attains the age of 75, if he attains the age of 70 on or after 1st April 2008;

(b) the relevant time—

(i) in the case of a member to whom sub-paragraph (d) of paragraph (3) applies, is when he makes the application referred to in head (iii) of that sub-paragraph; or

(ii) in any other case, when the member attains the age of 60.”.

(5) After paragraph (8) insert—

“(9) For the purposes of determining whether a member is permanently incapable of efficiently discharging the duties of the member’s employment under paragraph (3)(a), the Secretary of State shall have regard to the factors in paragraph (11) (no one of which shall be decisive) and disregard the member’s personal preferences for or against engaging in that employment.

(10) For the purposes of determining whether a member is permanently incapable of regular employment under paragraph (3)(b), the Secretary of State shall have regard to the factors in paragraph (12) (no one of which shall be decisive) and disregard the factors in paragraph (13).

(11) The factors to be taken into account for paragraph (9) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity;

(b) the member’s—

(i) mental capacity; and

(ii) physical capacity;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of the member’s incapacity, irrespective of whether such rehabilitation is undergone; and

(d) any other matter which the Secretary of State considers appropriate.

(12) The factors to be taken into account for paragraph (10) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity; and

(b) such reasonable employment as the member would be capable of engaging in if due regard is given to the member’s—

(i) mental capacity;

(ii) physical capacity;

(iii) previous training; and

(iv) previous practical, professional and vocational experience,

irrespective of whether or not such employment is actually available to the member;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of the member’s incapacity (irrespective of whether such rehabilitation is undergone) having regard to the member’s—

(i) mental capacity, and

(ii) physical capacity:

(d) such type and period of training which it would be reasonable for the member to undergo in respect of the member’s incapacity (irrespective of whether such traning is undergone) having regard to the member’s—

(i) mental capacity,

(ii) physical capacity,

(iii) previous training, and

(iv) previous practical, professional and vocational experience, and

(e) any other matter which the Secretary of State considers appropriate.

(13) The factors to be disregarded for paragraph (10) are—

(a) the member’s personal preference for or against engaging in any particular employment; and

(b) the geographical location of the member.

(14) For the purpose of this regulation—

“appropriate medical treatment” means such medical treatment as it would be normal to receive in respect of the incapacity, but does not include any treatment that the Secretary of State considers—

“permanently” means the period until normal benefit age; and

“regular employment of like duration” means—

Amendment of regulation L2

39.  For paragraph (3) of regulation L2 (refund of contributions) substitute—

“(3) If the member’s employment was contracted-out by reference to the scheme, the member (and the member’s spouse or civil partner, if any) will remain entitled to a guaranteed minimum pension and section 9(2B) rights under the scheme, unless the Secretary of State discharges her liability in respect of that entitlement by paying a contributions equivalent premium under section 55(2) of the 1993 Act.”.

Amendment of regulation L4

40.  In paragraph (3)(b) of regulation L4 (early leavers returning to pensionable employment), for “(early retirement pension on grounds of ill health)” substitute “or E2A”.

Substitution of Part M

41.  For Part M substitute—

“PART M TRANSFERS AND BUY-OUTS

Member’s right to transfer or buy-out

M1.—(1) A member who leaves pensionable employment with a preserved pension has the right to require the Secretary of State to transfer or buy-out the member’s rights under the scheme as described in this regulation.

(2) Subject to the following provisions of this regulation, the member may require the Secretary of State to use the cash equivalent of the member’s rights under the scheme—

(a) to purchase one or more buy-out policies from one or more insurance companies chosen by the member; or

(b) to acquire rights under—

(i) another occupational pension scheme; or

(ii) a personal pension scheme,

that satisfies the requirements of Chapter IV of Part IV of the 1993 Act; or

(c) to acquire rights under an arrangement that is a qualifying recognised overseas pension scheme for the purposes of section 169(2) of the 2004 Act; or

(d) in any combination of the ways described in sub-paragraphs (a), (b) and (c).

(3) The member must exercise the member’s right in relation to each and every portion of the cash equivalent unless paragraph (4) applies.

(4) The benefits attributable to—

(a) the member’s accrued rights to a guaranteed minimum pension; or

(b) the member’s accrued rights attributable to service in contracted-out employment on or after 6th April 1997,

may be excluded from the cash equivalent transfer value payment if section 96(2) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member’s other rights).

(5) A member who requires the cash equivalent to be used to acquire rights under another pension scheme in accordance with paragraph (2) may exercise the right—

(a) at any time before reaching age 60; or

(b) at a later time if the member exercises the right to require a transfer on the transfer of the member’s employment to a new employer as a result of a transfer of an undertaking to that employer.

(6) A member may require the Secretary of State to use the cash equivalent of the member’s rights under the scheme to purchase one or more buy-out policies or to acquire rights under a personal pension scheme only—

(a) if the member leaves pensionable employment on or after 1st January 1986; and

(b) if those rights are to be transferred to a personal pension scheme, in relation to any period of service of 2 years or more falling before 6th April 1988, only if a period of not less than one month has elapsed between the date the member left NHS employment and the date of commencement of any further NHS employment.

(7) If a member—

(a) leaves pensionable employment by opting-out; and

(b) on so doing becomes entitled to a preserved pension under regulation L; and

(c) has at least 2 years’ service before 6th April 1988,

the member’s right to require a transfer or buy-out will be limited to the cash equivalent of the part of the member’s rights that is attributable to service after 5th April 1988 and the member will acquire a right to the cash equivalent of the member’s remaining rights only if the member actually leaves NHS employment before reaching age 60.

(8) A member who leaves pensionable employment before reaching age 60, without becoming entitled to a pension under any of regulations E1 to E5 or a preserved pension under regulation L1 will be treated, for the purposes of regulations M1 to M5, as if the member left pensionable employment with a preserved pension, except that—

(a) a member who requires the cash equivalent to be used to buy one or more buy-out policies must exercise the right to buy-out within 12 months after leaving pensionable employment; and

(b) a member who requires the cash equivalent to be used to acquire rights under another occupational pension scheme, a personal pension scheme or a qualifying recognised overseas pension scheme must join that other scheme within 12 months after leaving pensionable employment and exercise the right to transfer within 12 months after joining that other scheme.

Exercising a right to a transfer or a buy out

M2.—(1) A member who wishes to exercise the member’s right to a transfer or a buy out must apply in writing to the Secretary of State for a statement of the amount of the cash equivalent of the member’s accrued benefits under the Scheme at the guarantee date (a “statement of entitlement”).

(2) In these Regulations, “the guarantee date” means any date that—

(a) falls within the required period; and

(b) is chosen by the Secretary of State; and

(c) is specified in the statement of entitlement; and

(d) is within the period of 10 days ending with the date on which the member is provided with the statement of entitlement.

(3) In counting the period of 10 days referred to in sub-paragraph (d), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(4) (4) In paragraph (2) “the required period” means—

(a) the period of 3 months beginning with the date of the member’s application for a statement of entitlement; or

(b) such longer period beginning with that date (but not exceeding six months) as may reasonably be required if, for reasons beyond the control of the Secretary of State, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(5) The member may withdraw the application for a statement of entitlement by notice in writing at any time before the statement is provided.

Amount of member’s cash equivalent

M3.—(1) Subject to the following provisions of this regulation, the member’s guaranteed cash equivalent will be equal to the capitalised value of all the member’s accrued rights to benefits under the scheme and any associated rights under Part I of the Pensions (Increase) Act 1971, calculated and verified as required by Chapter IV of Part IV of the 1993 Act.

(2) Except in the case of a transfer payment accepted under regulation N3A (transfers in respect of members to whom regulation B5 applies who elect to join or rejoin the scheme), a member’s cash equivalent will be at least equal to the amount of any transfer payments accepted in respect of the member under regulation N1(4) (member’s right to transfer accrued benefits to the scheme), plus the amount of the member’s contributions to the scheme.

(3) If a member’s cash equivalent is used to acquire rights under another occupational pension scheme, any part of the cash equivalent that relates to service before 29th January 1988 will be calculated as described in the previous Regulations as applicable immediately before that date, if this would be more favourable to the member.