SECTION 4: AGE RETIREMENT BENEFITS
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Revision of benefits after re-employment of a member who
has become eligible for the award of a preserved pension under Rule 5.09
where Rule 4.50 does not apply
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| 4.53 |
If a member who has become eligible for the award of a preserved pension under Rule 5.09 is re-employed before 6 April 2006 and Rule 4.50 does not apply, he may opt when re-employment begins if the pension is already in payment, or, if the pension is not in payment, at the time when the pension is due to come into payment or at the end of his re-employment (whichever is earlier), to have his pension benefits calculated as indicated in either (i) or (ii) of this Rule unless he has made an option before the 6 April 2006 that (i) of this Rule should apply. If a member made such an option before 6 April 2006 to aggregate his periods of service the option is irrevocable.
For members re-employed on or after 6 April 2006, an election must be made within 12 months of rejoining this Scheme whether the method at (i) or (ii) of this Rule should be applied to calculate his pension benefits when the pension is due to come into payment or at the end of his employment (whichever is earlier). If the member does not complete the option form within 12 months of rejoining this Scheme his preserved pension benefits will be retained and his service during re-employment will reckon towards a separate pension award.
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(i) |
his preserved pension and lump sum will be cancelled from
the date of re-employment, and his previous reckonable service will be counted
with his service during re-employment for a single pension award in accordance
with the Rules based on pensionable final earnings at final retirement or
cessation of employment; and if the preserved pension and lump sum have
already been brought into payment (under Rule 5.10 or 5.12) the lump sum
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 lump
sum will not be so deducted;
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(ii) |
his preserved pension and lump sum will be retained, and his
service during re-employment will reckon in accordance with the Rules towards
a second superannuation award, with Rule 4.46 applying to the preserved
pension when it comes into payment (except that, if this gives a more favourable
result, he will be treated as if his re-employment had begun on or after
his sixtieth birthday and be given a revised award under Rule 4.50, with
service during re-employment before he became eligible to be paid a pension
excluded from his reckonable service and with entitlement to a return of
basic contributions for that service). Rule 3.07 will apply to his total
reckonable service in both periods of employment, for which purpose his
retiring age shall be deemed to be as it was when his preserved pension
was awarded; and service after his retiring age in excess of 5 years will
not reckon for pension. (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; and if he is re-employed again in circumstances to
which Rule 4.50 applies, the reference in that Rule to "5 years"
will be taken to be a reference to the difference between 5 years and his
length of such reckonable service in the first period of re-employment as
occurs after he becomes eligible to be paid a pension.) If a preserved pension
retained under this paragraph is due to be paid from age 65 and is to be
calculated by applying Rule 4.05(i), and a second pension reckoned as aforesaid
is payable from age 60, the preserved pension may, if the member so opts,
be paid from age 60 but, in the case of a former non industrial scheme member,
in that event will be calculated by applying Rule 4.05(ii).
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If he dies before exercising the option under this Rule, it will be deemed to have been exercised in whichever way produces (or would produce) a larger widow’s, widower’s or civil partner’s pension under Section 6. If he is re-employed a second time, he may not reverse his original option, but he will have a further option as to whether or not to link his current service with the preceding period of reckonable service. Provided that:
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(a) |
where the member’s employment ceases on or after 6 April 1975
and he is re-employed after a break not exceeding thirty-one days;
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(b) |
where the member’s employment ceases on or after 6 April
1978 and he is re-employed after a break not exceeding six months;
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(c) |
where a female member has a right to return to work under
the Employment Protection Act 1975 following pregnancy or confinement, and
does in fact return to work after 15 August 1977 pursuant to that right
within the period prescribed under Section 48(1) of that Act;
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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 his preserved pension shall count as qualifying
(but not reckonable) service for the purpose of any second superannuation
award under paragraph (ii).
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