Office of Public Sector Information

PART J PENSION CREDIT MEMBERS

Pension credit member’s entitlement to pension

74.—(1) Subject to article 75, a pension credit member is entitled to a pension for life which becomes payable -

(a) when he attains normal benefit age, or

(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 Order.

Commutation of the pension credit benefits

75.—(1) In the circumstances described in regulation 3(2)(b) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000(25) (commutation of the whole of pension credit benefit), the Board may commute for a lump sum the whole of the pension to which a pension credit member is entitled under article 74.

(2) A person entitled or prospectively entitled to such a pension may commute for a lump sum a portion of the pension (“the commuted portion”).

(3) But paragraph (2) does not apply if the pension debit member from whose rights the pension credit member’s pension credit is derived has received a lump sum under article 18 before the date on which the pension sharing order takes effect.

(4) The lump sum under paragraph (2) is the actuarial equivalent of the commuted portion at the normal benefit age, calculated from tables prepared by the Government Actuary.

(5) But the lump sum under paragraph (2) may not exceed the annual rate of the pension for the first year it is payable (disregarding any reduction under this article or any other article of the Scheme), multiplied by 2.25.

(6) A person who wishes to commute a portion of a pension under paragraph (2) must not later than 6 months after—

(a) the date on which the person attains normal benefit age; or

(b) the date on which the pension sharing order takes effect,

whichever is the later, give the Board written notice of commutation, specifying the portion to be commuted.

(7) Notice of commutation takes effect on the later of—

(a) the date on which the pension under article 74 becomes payable; and

(b) the date on which it is received by the Board.

(8) When a person’s notice of commutation takes effect, the Board shall—

(a) reduce the pension, as from the effective date, by the commuted portion; and

(b) pay him the lump sum, reduced where the effective date is the date of receipt of the notice, by the difference between the aggregate payments made in respect of the pension and the aggregate payments that would have been made in respect of it if it had been reduced from—

(i) the date on which the person attains normal benefit age; or

(ii) the date on which the pension sharing order takes effect,

whichever is the later.

Death grants where pension credit member dies before pension credit benefits payable

76.  If a pension credit member dies before any benefits deriving from the member’s pension credit have become payable to him under this Scheme, a lump sum death grant is to be paid to the personal representatives of an amount equal to the annual rate of the pension to which the member would have been entitled under article 74 if he had attained normal benefit age on the date of his death (as calculated from tables prepared by the Government Actuary) multiplied by 2.25.

Application of general rules

77.—(1) The provisions of this Scheme specified in paragraph (2) apply to pension credit members and awards payable to or in respect of them, but apart from where provision is made by this Part or a contrary intention is otherwise indicated—

(a) this Scheme shall not apply to pension credit members and benefits payable to or in respect of them, except if and to the extent that they are also members of another description or dependants of a member; and

(b) the benefits payable to or in respect of pension credit members are not aggregated for any purpose with benefits payable to or in respect of those persons in any other capacity or as pension credit members deriving their pension credit benefits from any other pension debit member.

(2) Those provisions are -

article 65 (determination by the Board);

article 67 (appeal against decision of the Board);

article 84 (withdrawal of pension on conviction of certain offences);

article 85 (payment of awards);

article 87(1) to (5) and (10) (payments of awards-supplementary); and

article 90 (establishment, maintenance and operation of Firefighters’ Pension Fund).

PART K SPECIAL CASES

Guaranteed minimum pensions

78.—(1) This article applies where a person who is or has been a regular firefighter has a guaranteed minimum in relation to a pension provided by this Scheme by reason of service before 6^th April 1997 which is contracted-out employment by reference to the Scheme.

(2) Subject to paragraphs (3) to (7)—

(a) the person is entitled from the date on which he attains state pensionable age to a pension at a weekly rate equal to his guaranteed minimum;

(b) in the case of a man who dies at any time and leaves a widow or civil partner, that widow or civil partner is entitled to a pension at a weekly rate equal to half his guaranteed minimum; and

(c) in the case of a woman who dies at any time and leaves a widower or civil partner, that widower or civil partner is entitled to a pension at a weekly rate equal to half of that part of the deceased’s guaranteed minimum which is attributable to earnings factors for the tax year 1988-89 and subsequent tax years up to and including the tax year 1996-1997.

(3) A pension to which a person is entitled under paragraph (2)(a) is not payable for any period within 5 years after his attaining state pensionable age during which—

(a) he is continuing to serve as a regular firefighter; or

(b) a decision under article 83 (withdrawal of pension during employment as regular firefighter) taken by the Board before he attained state pensionable age has effect.

(4) An entitlement to a pension under paragraph (2)(b) or (c) ceases if the person entitled remarries or forms a civil partnership before attaining state pensionable age.

(5) Where a person is entitled to a pension under any other provision of this Scheme—

(a) a pension under paragraph (2) is payable only if it is greater than the other pension, disregarding any secured portion; and

(b) if a pension under paragraph (2) is paid, only the secured portion, if any, of the other pension is payable.

(6) For the purposes of paragraph (5), a pension includes any increase in it under the Pensions (Increase) Act (Northern Ireland) 1971(26).

(7) In relation to a pension under paragraph (2)—

(a) article 19 (commutation of small pensions) applies as it applies in relation to a pension under Part B; and

(b) article 84 (withdrawal of pension on conviction of certain offences) applies as it applies in relation to a pension under Part B or C but as if article 84(2)(b) were omitted.

(8) A pension under paragraph (2) shall not be reduced or extinguished except as provided in this article.

Revaluation of guaranteed minimum

79.—(1) This article applies where a person—

(a) has ceased to serve as a regular firefighter; or

(b) has elected under article 59 not to pay pension contributions,

and has taken a right to a cash equivalent by exercising the option conferred by section 91(1) of the Pension Schemes (Northern Ireland) Act 1993(27) (“the 1993 Act”) wholly or partly in the way specified in section 91(2)(c) of that Act (purchase of annuity).

(2) Where this article applies, to the extent that the person’s guaranteed minimum is otherwise appropriately secured within the meaning of section 15(3) of the 1993 Act—

(a) for the purposes of section 10(2) of that Act (amount of guaranteed minimum) his earnings factors shall be determined by reference to the last order under section 130 of the Social Security Administration (Northern Ireland) Act 1992(28) to come into force before the end of the tax year in which he ceased to serve as a regular firefighter or, as the case may be, in which his election under article 59 took effect and without reference to any subsequent order; and

(b) the weekly equivalent mentioned in section 10(2) of the 1993 Act shall be increased—

(i) by at least the prescribed percentage for each relevant year after the end of the tax year in which he ceased to serve as a regular firefighter or, as the case may be, in which his election under article 59 took effect, and

(ii) in accordance with such additional requirements as may be prescribed for the purposes of section 12(3) of the 1993 Act(29).

(3) In this article—

“relevant year” has the meaning given in section 10(8) of the 1993 Act(30);

“prescribed percentage” has the meaning given in regulation 62 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996(31).