SECTION 4: AGE RETIREMENT BENEFITS
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Revision of benefits after re-employment
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Revision of benefits after re-employment which began
on or after the sixtieth birthday of a member who had become eligible to
be paid a pension
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| 4.50 |
Subject to Rules 3.07 and 4.51, a member who began re-employment on or after his sixtieth birthday having become eligible to be paid a pension under Rule 4.03, 5.01, 5.09, 8.03 of Appendix 8 (in the case of a former non industrial scheme member) or 8.12 of Appendix 8, will have their pension benefits calculated according to whether their final retirement is before 5 April 2006 under 4.50(1) or (2) as appropriate. The revised pension benefits will include the earlier period of employment (excluding any enhancement under Section 5 or Appendix 8 of this Scheme) together with the additional reckonable service the member has attained during his period of re-employment up to a maximum of five years.
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(1) |
Method of recalculating members’ benefits where the period of re-employment has ended before 5 April 2006
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The revised pension will be calculated by whichever of the following method gives the greater result:
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(i) |
on the basis of pensionable final earnings at his earlier retirement or cessation of employment (calculated, in the case of a former non industrial scheme member, for the purpose in accordance with Rule 4.51(b)) in which case Rule 4.40 shall apply;
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(ii) |
on the basis of pensionable final earnings at his final retirement. In calculating this, only service during re-employment will be taken into account if there was an interval of at least one working day between the earlier service and the date of re-employment and the member is re-employed for at least a year. If he is re-employed after an interval for less than a year, pensionable final earnings at final retirement will be taken to be his pensionable earnings in the last 365 days of reckonable service.
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In addition, the member will be paid the amount by which the lump sum associated with the revised pension exceeds the lump sum already paid to him. For the purpose of calculating this excess, any deductions made under Section 6, or otherwise in accordance with the Rules, from the lump sum already paid to him will not be so deducted.
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(2) |
Method of recalculating members’ benefits where the period of re-employment has ended on or after 5 April 2006
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Where the member’s final retirement occurs on or after 6 April 2006, on final retirement he will receive an 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 together with reckonable service (up to a maximum of five years) after re-employment and on the basis of his pensionable final earnings at final retirement. Any enhancement under Section 5 or Appendix 8 from the earlier period of employment will be excluded.
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Application of Rule 4.50 in certain cases
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| 4.51 |
Rule 4.50 shall be subject to the following provisions:
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| 4.51 |
(1) Method of recalculating members’ benefits where the period of re-employment has ended before 5 April 2006
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(a) |
for the purpose of applying Rule 3.07 in the circumstances specified in Rule 4.50, the member’s retiring age shall be deemed to be as it was at the end of his earlier service;
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(b) |
in the case of a former non industrial scheme member if Rule 4.05(ii) has been applied in the contract of re-employment, that Rule shall be applied in calculating pensionable final earnings at the earlier retirement or cessation of employment for the purpose of Rule 4.50(1)(i);
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(c) |
if – |
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(i) |
there was an interval of at least one working day between the earlier service and the date of re-employment, and the member was re-employed continuously for less than 182 days (6 months); or
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(ii) |
a revision of pension under Rule 4.50 would mean that on final retirement the member received a smaller pension than if he had never been re-employed (after taking into account any increases applicable to the earlier pension under Rule 4.40);
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no such revision will be made. Instead, the member’s earlier pension will be restored in full on final retirement, with no account taken of service during re-employment (except for the purpose of abatement of pension under Rule 4.43);
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(d) |
if the member begins re-employment more than once in the circumstances specified in Rule 4.50, each subsequent retirement or cessation of employment may be treated as a final retirement for the purpose of that Rule but the limit of 5 years on the amount of further service which reckons shall apply to his total service during such re-employment; and the reference to his earlier retirement or cessation of employment shall be taken as a reference to his first retirement or cessation of employment.
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Except that for any period of re-employment ending on or after 6 April 2006 the re-employed member will have each period of service treated as a separate pension award in accordance with Rule 4.50 (2)
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| 4.51 |
(2) Method of recalculating members’ benefits where the period of re-employment has ended on or after 5 April 2006
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(a) |
for the purpose of applying Rule 3.07 in the circumstances specified in Rule 4.50 (2), the member’s retiring age shall be deemed to be as it was at the end of his earlier service;
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(b) |
in the case of a former non industrial scheme member if Rule 4.05(ii) has been applied in the contract of re-employment, that Rule shall be applied in calculating pensionable final earnings at the earlier retirement or cessation of employment for the purpose of Rule 4.50(i);
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(c) |
if – |
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(i) |
there was an interval of at least one working day between the earlier service and the date of re-employment, and the member was re-employed continuously for less than 182 days (6 months); or
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(ii) |
the calculation under Rule 4.50(2) would not result in the payment of any additional pension;
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the member’s earlier pension will be restored in full on final retirement, with no account taken of service during re-employment (except for the purpose of abatement of pension under Rule 4.43);
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(d) |
(d) if the member begins re-employment more than once in the circumstances specified in Rule 4.50(2), each subsequent retirement or cessation of employment may be treated as a final retirement for the purpose of that Rule but the limit of 5 years on the amount of further service which reckons shall apply to his total service during such re-employment; and the reference to his earlier retirement or cessation of employment shall be taken as a reference to his first retirement or cessation of employment.
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