SECTION 3: SERVICE
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Purchase of added years
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| 3.16 |
Subject to the discretion of the Authority and to the provisions
of this Section, a member (not being a member whose contract of employment
is for a fixed term) who is in full-time employment or, on or after 1 December
1980, in part-time employment, may apply to increase his reckonable and
qualifying service by buying added years for the purpose of increasing his
own benefits under this Scheme and, where appropriate, his family benefits.
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| 3.17 |
(1) |
A member who applies to buy added years before 1 December
1980 must purchase an exact number of years of full-time service. If the
application is made on or after that date, the member may purchase years
or parts of a year of full-time service. In either event, the amount of
added years purchased must not exceed the limits described in Appendix 1.
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(2) |
A member may on or after 1 July 1991 make an option in writing
that the limits in paragraph 4 of Appendix 1 shall apply to him.
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(3) |
Where a member makes an option under Rule 3.17(2)
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(i) |
he will be treated for the purposes of Rule 2.13(2) as if
he became a member on or after 1 June, 1989;
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(ii) |
notwithstanding Rule 3.07, his reckonable service may not
exceed 40 years in total; and
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(iii) |
no part of his pension benefits may be paid before actual
retirement, or leaving service.
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(4) |
A member may at any time on or after 1 July 1997, by
notice in writing, cancel one or more applications to buy added years
whereupon the provisions of Rule 3.26 or 3.37 will apply. Such notice
shall be effective on the earliest practicable date after that on
which it is received either by the Local
Pensions Officer of the member’s employer or the Pensions
Administration Office, Thurso, whichever is sooner, and periodical
contributions will be payable up to that date. The member may not
give such notice on more than two occasions.
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Method of payment
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| 3.18 |
Added years may be bought by two methods, in accordance with
the following Rules:
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(i) |
by periodical contributions deducted from pensionable earnings;
or
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(ii) |
by lump sum payment.
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| 3.19 |
An application to buy added years by periodical deductions
from salary may be made at any time, provided that:
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(i) |
in the case of applications made before 1 July 1997 at least
two years will elapse between the date of his next birthday and the date
on which he will reach the retiring age or the date of his sixtieth birthday
(whichever is the earlier); and
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(ii) |
the total periodical contributions for added years together with the periodical contributions for widows’, widowers’, civil partners and dependants’ benefits under Section 6 and any other additional voluntary contributions would at no time exceed:
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(a) |
in the case of a person who became a member before 1 June
1989, 15% of his current salary and pensionable emoluments.
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(b) |
in the case of a person who becomes a member on or after 1
June 1989, the lower of 15% of his current salary and pensionable emoluments
and 15% of the permitted maximum as defined in Section 594 of the Income
and Corporation Taxes Act 1988 (as amended).
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Paragraph (b) shall not apply to a member in such circumstances
as may be prescribed in regulations made under paragraph 18 (4) of Schedule
6 to the Finance Act 1989.
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(iii) |
at least two years have lapsed between making that application
any prior cancellation under 3.17(3).
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(iv) |
he has not given notice on the two occasions permitted under
Rule 3.17(3).
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