SECTION 4: AGE RETIREMENT BENEFITS
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Revision of benefits after re-employment of a
member who has been prematurely retired where Rule 4.50 does not apply
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| 4.54 |
If a member who has been prematurely retired with benefits calculated under Appendix 8 is re-employed and Rule 4.50 does not apply his pension benefits will be calculated according to whether his final retirement is before or after 5 April 2006. The revised pension benefits will include the additional reckonable service the member has attained during his period of re-employment but will exclude any enhancement under Appendix 8.
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| 4.54 |
(1) Method of recalculating members’ benefits where the period of re-employment has ended before 5 April 2006:
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(i) |
his earlier superannuation award will be retained subject
to abatement under Rules 4.43, 4.47 and 4.49 as appropriate, except that
his preserved pension (if any) as previously calculated will be cancelled;
his previous reckonable service (but excluding any enhancement under Rule
8.04 of Appendix 8) will be counted with his service during re-employment
for a single award in accordance with the Rules based on pensionable final
earnings at final retirement or cessation of employment, with this service,
in the case of a former non industrial scheme member, enhanced by the smaller
of:
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(a) |
the original enhancement (if any) under Rule 8.04 of Appendix
8;
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(b) |
the actual period between the earlier retirement and the
date of re-employment.
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Any lump sum under Rule 8.04 of Appendix 8, in the case of
a former non industrial scheme member, or 8.16 of Appendix 8 or any return
of basic contributions, paid at his earlier retirement, will be deducted
from the lump sum payable in consequence of final retirement or cessation
of employment; for which purpose any deductions made under Section 6, or
otherwise in accordance with the Rules, from the earlier payment will not
be so deducted;
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(ii) |
his earlier award will be retained subject to abatement
under Rules 4.43, 4.47, and 4.49 as appropriate, and his service during
re-employment will reckon in accordance with the Rules towards a second
pension or return of contributions. If, however, the enhancement of reckonable
service under Rule 8.04 of Appendix 8 exceeds the period between the date
of premature retirement and the date of re-employment, his reckonable (but
not qualifying) service in the second period of employment will be reduced
by the amount of the excess.
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If he is re-employed again, each appropriate retirement or
cessation of employment may be treated as a final retirement for the purpose
of this Rule. If the member dies during the period of re-employment he will
be treated in whichever of these two ways produces (or would produce) the
larger widow’s pension under Section 6. Provided that the member’s employment
ceases:
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(a) |
on or after 6 April 1975 and he is re-employed after a
break not exceeding thirty-one days;
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(b) |
on or after 6 April 1978 and he is re-employed after a break
not exceeding six months;
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paragraph (i) only will apply, and the option in paragraph
(ii) will not be available; and in any case where paragraph (ii) is applied,
the qualifying service related to any preserved pension which has been awarded
under Rule 8.03 or 8.12 shall count as qualifying (but not reckonable) service
for the purpose of the second award under paragraph (ii).
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(iii) |
If the member dies during the period of re-employment he will be treated in whichever of these two ways produces (or would produce) the larger widow’s, widower’s or civil partner’s pension under Section 6. Provided that the member’s employment ceases:
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| 4.54 |
(2) Method of recalculating members’ benefits where the period of employment ends on or after 5 April 2006:
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With effect from 6 April 2006, the method of recalculating the pension benefit award indicated at Rule 4.54(1)(i) will no longer be permitted. In order to comply with the provisions of the Finance Act 2004 two separate pension awards must be paid to the member in these circumstances.
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Where the member’s final retirement occurs on or after 5 April 2006, on final retirement he will receive a separate additional pension calculated so that when it is added to his existing pension the aggregated total of the two pensions is equivalent to a pension calculated on the basis of reckonable service in the earlier period of employment (excluding any enhancement under Appendix 8) together with reckonable service after re-employment and on the basis of his pensionable final earnings at final retirement. This provision will not apply to a member who is re-employed by a different participating employer.
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If this calculation would not result in payment of any additional pension the earlier pension, including any enhancement under Appendix 8, will be restored in full, with no account taken of service during re-employment (except for the purpose of abatement of pension under Rule 4.43) if this gives a better result.
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