SECTION 6: FAMILY BENEFITS
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Contributions for invalidity pension
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Rate of periodical contributions
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| 6.52 |
As from 1 October 1973 or, 1 July 1973 in the case of a former
non industrial scheme member, or (if later) from such a date as the Authority
may specify following the date when he makes a valid nomination, a member
in employment shall pay periodical contributions of 2 % of his pensionable
earnings. Subject to Rule 2.04, these contributions shall continue until
the member’s service ends or until the date upon which the Authority are
notified that his nomination has ceased to be valid (whichever first occurs).
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Additional periodical contributions
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| 6.53 |
Subject to Rule 2.09, a member may opt to pay additional periodical
contributions of 2 % or multiples of 2 % of his pensionable earnings. Such
additional contributions will be payable from such a date as the Authority
may specify following the date of the exercise of the option, and shall
continue until (whichever first occurs) the member’s service ends or he
is no longer under a potential liability in respect of a balance of contributions
under Rule 6.55 or the Authority are notified that his nomination has ceased
to be valid. An option under this Rule may be exercised at any time unless
the nomination was made before 1 August 1984, in which case the option shall
not be exercised later than 9 months after the date of the nomination. The
member may at any time make a further option to increase his rate of contributions;
but he may not opt to reduce it, save only in the circumstances specified
in Rule 2.07(b).
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Account of contributions for invalidity pension
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| 6.54 |
When a member who has made a valid nomination under Rule
6.45 dies or withdraws from the Scheme or leaves employment, an account
of contributions for invalidity pension shall be taken in accordance with
the next two Rules for the purposes of ensuring that contributions have
been or are paid:
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(i) |
if the member’s nomination is still valid, for the same
length of reckonable service as that for which (whether or not the member
is married) an account would be required under Rule 6.07(i) or 6.43(A)(i);
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(ii) |
if his nomination is no longer valid, for his reckonable
service up to the date when the nomination became invalid.In the case of
a former non industrial scheme member, where paragraph (i) of this Rule
applies and the member’s reckonable service has been enhanced under Rule
8.04 of Appendix 8 on the basis of the first proviso to that Rule, pensionable
final earnings shall be calculated for the purposes of this Rule, the next
two Rules and Rule 6.51 as it would be at age 60 (or 65 as the case may
be) on the assumptions specified in the said proviso.
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Debits to the account
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| 6.55 |
In the case of a member who dies before 1 April 1980 with
less than 5 years’ qualifying service, no sums will be debited to the account
under Rule 6.54. In other cases, sums shall be debited to the account for
each year of reckonable service (and proportionately for any fraction of
a year) for which an account is required under that Rule, as follows:
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(i) |
for any year of reckonable service or enhancement of reckonable
service (except an added year) for which an account is required under Rule
6.54, two-eightieths of pensionable final earnings;
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(ii) |
for any added year reckoned under Rules 3.16 to 3.29 or (in
the case of a former non industrial scheme member) Former Rule 4, for which
an account is required under Rule 6.54(i), four-eightieths of pensionable
final earnings;
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(iii) |
for any added year reckoned under Rules 3.16 to 3.29 or (in
the case of a former non industrial scheme member) Former Rule 4, which
falls within the proportion of such added years for which an account is
required under Rule 6.54(ii), four-eightieths of pensionable final earnings.
The said proportion shall be obtained by applying the ratio of the period
(expressed to the nearest day) between the date of approval of the member’s
application to buy added years and the date the nomination became invalid
to the total period service (expressed to the nearest day) after the date
of approval of the member’s application to buy added years.
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Credits to the account
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| 6.56 |
Sums shall be credited to the account under Rule 6.54
as follows: for each of the member’s annual periodical contributions of
2 % under Rule 6.52 or 6.53, two-eightieths of pensionable final earnings.
"Annual periodical contribution" means payment (without repayment)
or periodical contributions under the appropriate Rule in respect of any
period of one year. Proportionate credits will be made to the account for
any fraction of a year during which the periodical contributions are paid.
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Recovery of any debit balance
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| 6.57 |
If the debits under Rule 6.55 exceed the credits under
Rule 6.56 the balance shall be deducted from whichever of the benefits listed
in Rule 6.09 or 6.43(C) becomes payable (with regard where appropriate to
Rule 6.13). Any deduction from the lump sum preserved under Rule 5.09 will
be calculated and deducted under this Rule when the preserved lump sum is
awarded, not when it is paid.
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Refund in respect of any credit balance
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| 6.58 |
If the credits under Rule 6.56 exceed the debits under Rule
6.55, a refund of the payments giving rise to the credits shall be made
sufficient at the rate specified in Rule 6.56 to bring the account into
balance. This refund shall be made in the same way, and be subject to the
same additions and deductions as payment refunded under Rule 6.11(1).
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Renomination of same person
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| 6.59 |
If a nomination becomes invalid under Rule 6.47, and the member
later nominates the same nominee, the periodical contributions already paid
by him for that nominee under Rules 6.52 and 6.53 will be taken into account
in calculating any balance of contribution or refund under Rule 6.57 or
6.58.
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Marriage between member and nominee
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| 6.60 |
If a nomination becomes invalid because the nominee marries
the member, periodical contributions actually paid in respect of an invalidity
pension up to the date of the marriage will be deemed to have been paid
for a widow’s or widower’s pension under Part 1 or 4 of this Section.
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Nomination under Former Rule 18
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| 6.61 |
In the case of a former non industrial scheme member, in service
on 1 June 1972 with a valid nomination in force on that date under Former
Rule 18, Rules 6.45 to 6.60 shall apply with such modifications as the Authority
may deem appropriate.
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Civil Partnerships
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| 6.62 |
Subject to Rules 6.63 to 6.66 and provisions expressly referring to civil partnerships, Parts 1 to 4 of this section, section 9 and Appendix 7 shall apply in relation to:-
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(i) |
a surviving civil partner as they apply to an eligible widow (in the case of a male member) and an eligible widower (in the case of a female member);
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(ii) |
a civil partner as they apply in relation to a spouse;
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(iii) |
to civil partnership as they apply in relation to marriage.
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| 6.63 |
All pensions to surviving civil partners shall be calculated by reference only to reckonable service on and after 6 April 1988, including any reckonable service granted under Section 9 of this Scheme in respect of a transfer received on or after 6 April 1988, unless the contributing member to the Scheme has made an election to pay contributions to reckon service prior to 6 April 1988 under Rule 2.06(5).
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The contribution due in respect of this election will be determined by the Authority after consultation with the Actuary. This election must be made within six months following the registration of a civil partnership.
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If the member dies within the six month period after the registration of a civil partnership without making an election to pay contributions for reckonable service prior 6 April 1988, the surviving civil partner may make such an election. This option will not be available to pensioners or members who have preserved awards.
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| 6.64 |
For the purposes of calculating contributions due and contributions to be refunded in respect of reckonable service prior to 6 April 1988, a member who had a civil partner at the time of his death in service or ceasing membership of the Scheme shall be treated as if he were single at that time unless he, or his surviving civil partner as provided in this Rule, had made an election to pay contributions for pre 6 April 1988 reckonable service or had any reckonable service granted under Section 9 in respect of a transfer received on or after 6 April 1988 and providing the member had not been married during the pre 6 April 1988 period of service.
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When this rule applies the premium referred to in Rule 6.11 (5) shall not be deducted from any refund due in respect of reckonable service before 6 April 1988 unless the member, or his civil partner as provided in this rule, has made an election to pay contributions for pre April 1988 reckonable service or had any reckonable service granted under Section 9 in respect of a transfer received on or after 6 April 1988.
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| 6.65 |
In relation to surviving civil partners Rules 6.05 and Rule 6.42 (B) shall be replaced with the following: A surviving civil partner’s pension under Rule 6.01 or Rule 6.41 (A) will be paid from the day after the date of the member’s death until the date of the surviving civil partner’s death, except that:
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(i) |
if his surviving civil partner, before attaining pensionable age, forms a civil partnership or marries, or was living or begins to live with a person as his civil partner or spouse, the pension will be payable thereafter in respect of a period prescribed from time to time in regulations made under section 17(6) of the Pension Schemes Act 1993;
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(ii) |
if the surviving civil partner of a member who had attained pensionable age before she died, forms a civil partnership, or marries, or was living, or begins to live with a person as his civil partner or spouse after having attained pensionable age, the pension will thereafter be restricted to the surviving civil partner’s guaranteed minimum pension.
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For the purposes of the rule “pensionable age” is as defined in section 181 of the Pension Scheme Act 1993 for the purposes of provisions relating to guaranteed minimum pensions. In any case where the surviving civil partner’s pension ceases or is restricted under this rule the Authority may restore it if they are satisfied that there are compassionate grounds for so doing or if his subsequent civil partnership or marriage comes to an end or if he ceases to live with a person as his civil partner or spouse.
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| 6.66 |
A member who ceased membership of the Scheme before 5 December 2005 and made an election under Rule 6.11 (5)(i)(b) may choose to repay that part of the refund of contributions, with compound interest, that would not have been paid in respect of service on and after 6 April 1988 had he not made an election under Rule 6.11 (5)(i)(b). If such a repayment with compound interest is made benefits in respect of the member’s reckonable service on and after 6 April 1988 will be calculated as if he had not made an election under Rule 6.11 (5)(i)(b). For the purposes of this rule compound interest means:
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at the yearly average rate for share accounts as announced annually by the Minister.
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