| STATUTORY INSTRUMENTS |
| 2008 No. 213 |
| The Firefighters’ Pension Scheme (England) (Amendment) Order 2008 |
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Made
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30th January 2008
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Laid before the Parliament
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7th February 2008
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Coming into force in accordance with article 1(3)
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This Order is made in exercise of the powers conferred by sections 34 and 60 of the Fire and Rescue Services Act 2004(1). |
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As required by section 34(5) of that Act, the Secretary of State consulted such persons as she considered appropriate before making the Order. |
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The Secretary of State for Communities and Local Government makes the following Order |
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(1) |
This Order may be cited as the Firefighters’ Pension Scheme (England) (Amendment) Order 2008. |
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(2) |
In this article “the Scheme” means the New Firefighters’ Pension Scheme (England) set out in Schedule 1 to the Firefighters’ Pension Scheme (England) Order 2006(2). |
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(3) |
This Order shall come into force on 29th February 2008 but, subject to paragraphs (4) and (5), shall have effect from 6th April 2006. |
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(4) |
The following provisions of the Schedule to this Order, and so much of article 2 of this Order as relates to those provisions, shall have effect from 1st October 2006— |
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(a) |
paragraph 3(b), |
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(b) |
paragraph 4(f), in so far as it relates to new rule 7A of Part 3 of the Scheme (additional pension benefit: long service), and so much of new rule 7C as relates to new rule 7A, and |
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(c) |
paragraph 11(b)(iv). |
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(5) |
The following provisions of the Schedule, and so much of article 2 as relates to those provisions, shall have effect from 1st July 2007— |
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(a) |
paragraph 4(f), in so far as it relates to new rule 7B of Part 3 of the Scheme (additional pension benefit: continual professional development), and so much of new rule 7C as relates to new rule 7B, and |
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(b) |
paragraph 11(a)(i) and (b)(i). |
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(6) |
This Order applies in relation to England only(3). |
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(1) |
Schedule 1 to the Firefighters’ Pension Scheme (England) Order 2006(4) shall be amended in accordance with the Schedule to this Order. |
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Signed by authority of the Secretary of State for Communities and Local Government |
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30th January 2008 |
John Healey
Minister of State
Department for Communities and Local
Government
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| SCHEDULE |
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| AMENDMENT OF SCHEDULE 1 TO THE FIREFIGHTERS’ PENSION SCHEME (ENGLAND) ORDER 2006 |
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| 1- |
In Part 1 (citation and interpretation), in rule 2 (interpretation), in paragraph (1)— |
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(a) |
in the definition of “child”, for “scheme member”, substitute “firefighter member, a deferred member or a pensioner member”; |
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(b) |
in the definition of “nominated partner”, for “rule 1(2)” substitute “rule 1(6)”; and |
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(c) |
in the definition of “transfer value payment”, for “him” substitute “a person”. |
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| 2- |
In Part 2 (scheme membership, cessation and retirement), in rule 1(scheme membership)— |
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(i) |
omit “entitled to be”; |
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(ii) |
at the end of sub-paragraph (b)(i), add the word “and”; and |
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(iii) |
omit sub-paragraph (b)(iii) and the word “and” immediately preceding that sub-paragraph; |
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(b) |
in paragraph (5), add at the end of sub-paragraphs (a), (b) and (c), “, deferred member or pensioner member”; |
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(c) |
for paragraph (6) substitute— |
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“(6) |
For the purposes of paragraph (5), a firefighter member, deferred member or pensioner member (referred to in this paragraph as “the scheme member”) may nominate a person (a “nominated partner”) who— |
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(a) |
has been living with the scheme member, otherwise than as his spouse or civil partner; and |
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(b) |
at the date on which the question of the nominated partner’s status in relation to the scheme member falls to be considered— |
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(i) |
is not the spouse or civil partner of any other person, |
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(ii) |
is registered with the scheme administrator as the scheme member’s nominated partner, |
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(iii) |
is financially dependent on the scheme member, or is, with the scheme member, in a state of mutual financial dependency, and |
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(iv) |
is in a long-term relationship with the scheme member, |
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but this is subject to paragraph (8).”; |
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(d) |
in paragraph (7), in the definition of “long-term relationship”— |
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(i) |
for “the period of two years”, substitute “a period of at least two years”; and |
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(ii) |
after “firefighter member”, insert “, deferred member or pensioner member”; |
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(e) |
in paragraph (8), after “firefighter member”, insert “, deferred member or pensioner member”; |
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(f) |
in paragraph (9), for “in to” substitute “into”; and |
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(g) |
in paragraph (10), for “entitled to be a”, substitute “a firefighter”. |
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| 3- |
In Part 2 (scheme membership, cessation and retirement)— |
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(a) |
in rule 2 (eligibility conditions), in paragraph (1), for sub-paragraph (b) substitute— |
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(b) |
such transfer payment has been made to the Scheme in respect of his personal pension rights under a personal pension scheme as qualifies him for benefits under the Scheme; or”; and |
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(a) |
in rule 5 (election not to make pension contributions), after paragraph (1) insert— |
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(1A) |
A contributions election may not be made solely in respect of contributions relevant to additional pension benefit under rule 7B of Part 3 (additional pension benefit: continual professional development).”. |
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| 4- |
In Part 3 (personal awards)— |
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(a) |
in rule 2 (award on ill-health retirement)— |
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(i) |
in paragraph (3), after “calculated”, insert “, subject to paragraph (4),”; and |
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(ii) |
after paragraph (3), add— |
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“(4) |
The amount of the higher tier ill-health pension of a firefighter member who, by virtue of rule 7, is entitled to two pensions, is whichever is the greater of— |
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(a) |
the sum of his lower tier ill-health pension (calculated in accordance with paragraph 1 of Annex 1) and the higher tier ill-health pension to which he would be entitled if paragraph (3) were not subject to this paragraph (calculated in accordance with paragraph 2 or 3 of Annex 1); and |
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(b) |
the amount of the single pension to which he would be entitled under paragraph (7) of rule 7, |
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and for the purposes of this paragraph it shall be assumed that the person had given the written notice referred to in paragraph (6) of rule 7.”; |
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(b) |
in rule 4 (cancellation of deferred pension), in paragraph (2), for “the service” substitute “the authority’s employment”; |
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(c) |
in rule 5 (pension on member-initiated early retirement), in paragraph (5)(a), for “pensionable”, in the second place in which that word appears, substitute “reference”; |
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(d) |
in rule 6 (pension on authority-initiated early retirement), in paragraph (1), for “the service” substitute “the authority’s employment”; |
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(e) |
in rule 7 (entitlement to two pensions)— |
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(i) |
in paragraph (1), for “paragraph (7)” substitute “paragraph (6)”; and |
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(ii) |
in paragraph (4), for “that day”, substitute “the last day of his membership of the Scheme”; |
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7A. |
“Additional pension benefit: long service |
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(1) |
A firefighter member who— |
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(a) |
in respect of a period that includes 30th June 2007 is entitled to a long service increment or an interim or transitional payment connected with long service, and |
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(b) |
on or after 1st October 2007— |
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(i) |
retires from employment as a regular firefighter, or |
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(ii) |
becomes entitled to a deferred pension under rule 3, |
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shall be credited with an amount of additional pension benefit. |
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(2) |
Subject to paragraph (3) and rule 7C(5), the amount of additional pension benefit is that found by applying the formula— |
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A |
is the number in years (counting part of a year as the appropriate fraction) by which the member’s pensionable service up to and including 30th June 2007 exceeds 15 but does not exceed 20; and |
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is the number in years (counting part of a year as the appropriate fraction) by which his pensionable service exceeds 20 but does not exceed 30. |
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(3) |
Where the Retail Prices Index for the month of September preceding the relevant tax year is higher than it was for September 2007, the amount of additional pension benefit (as calculated in accordance with paragraph (2) and, if applicable, this paragraph) shall be increased by the same percentage as the percentage increase in the Retail Prices Index. |
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(4) |
Any increase in accordance with paragraph (3) shall be applied with effect from the first Monday of the relevant tax year. |
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(5) |
In paragraph (3)— |
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“relevant tax year” means a tax year in relation to which— |
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(a) |
the amount of a firefighter member’s pension benefits is calculated for the purposes of this Scheme; and |
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(b) |
he is not a pensioner member or a deferred member; and |
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“tax year” means the period of 12 months beginning with 6th April. |
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7B. |
Additional pension benefit: continual professional development |
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(1) |
A firefighter member who, in any CPD year beginning with the year commencing on 1st July 2007, receives CPD payments, shall be credited with an amount of additional pension benefit in respect of that year. |
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(2) |
Subject to paragraph (3) and rule 7C(3) and (5), the amount of additional pension benefit in respect of a CPD year shall be determined on 1st July immediately following the year in question in accordance with guidance and tables provided by the Scheme Actuary. |
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(3) |
Where the Retail Prices Index for the month of September preceding the relevant tax year is higher than it was for the month of September in the CPD year in question, the amount of additional pension benefit for that CPD year (as calculated in accordance with paragraph (2)) shall be increased by the same percentage as the percentage increase in the Retail Prices Index. |
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(4) |
Any increase in accordance with paragraph (3) shall be applied with effect from the first Monday of the relevant tax year. |
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“CPD payments”, as regards a firefighter, means payments made to him by his employing authority in respect of his continual professional development; |
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“CPD year” means a period of 12 months beginning with 1st July in which a firefighter member is in receipt of CPD payments; |
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“relevant tax year” means a tax year in relation to which— |
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(a) |
the amount of a firefighter member’s pension benefits is calculated for the purposes of this Scheme, and |
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(b) |
he is not a pensioner member or a deferred member; |
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and a tax year is a relevant tax year in relation to a particular CPD year if it is the tax year in which CPD payments for that CPD year are taken into account; and |
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“tax year” means the period of 12 months beginning with 6th April. |
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7C. |
Additional pension benefit: supplementary provisions |
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(1) |
Subject to paragraphs (2) to (4), additional pension benefit under rule 7A or 7B is payable at normal retirement age. |
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(2) |
Where the firefighter member resigns or is dismissed or makes a contributions election, additional pension benefit is payable at normal benefit age; and paragraphs (4) to (6) of rule 3 (deferred pension) shall apply in relation to that benefit as if it were a deferred pension to which he was entitled under that rule. |
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(3) |
Where the firefighter member leaves his employment on ill-health retirement, his additional pension benefit is payable immediately. |
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(4) |
Where the firefighter member takes authority-initiated early retirement or member-initiated early retirement, his additional pension benefit is payable at the same time as his pension under rule 5 (pension on member-initiated early retirement), or, as the case may be, rule 6 (pension on authority-initiated early retirement). |
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(5) |
Where paragraph (4) applies, the firefighter member’s additional pension benefit shall be actuarially reduced by applying to the amount ascertained in accordance with rule 7A or 7B (as the case may be) the appropriate actuarial reduction factor notified by the Scheme Actuary. |
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(6) |
For the purposes of rules 9 and 10 (commutation), additional pension benefit shall be treated as if it were a pension payable under this Part. |
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(7) |
For the purposes of determining the amount of any survivor’s pension under Part 4 or pension credit under Part 6, additional pension benefit shall be treated as if it were a pension payable under this Part.”; |
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(g) |
in rule 8 (refund of aggregate pension contributions), in paragraph (1)(b), for “the service” substitute “the authority’s employment”; |
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(h) |
in rule 9 (commutation: general)— |
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(i) |
after paragraph (8), insert— |
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“(8A) |
Paragraph (8B) applies where— |
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(a) |
notice of commutation has taken effect in relation to— |
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(i) |
a person’s ill-health pension, and |
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(ii) |
the pension is withdrawn under rule 2(3) of Part 9 (consequences of review); or |
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(b) |
notice of commutation has taken effect in relation to— |
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(i) |
a person’s deferred pension that has been paid before normal benefit age (“the early-paid pension”), and |
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(ii) |
the early-paid pension is withdrawn under rule 2(5) of Part 9. |
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(8B) |
If the person becomes entitled to another pension, other than an injury pension under the Compensation Scheme, for which he is entitled to reckon the period of pensionable service that was reckonable for the purposes of the ill-health pension or the early-paid pension (as the case may be), the other pension shall be reduced by the amount by which the ill-health pension or the early-paid pension would have been reduced if it had not been withdrawn. |
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(8C) |
Where paragraph (8B) applies, and notice of commutation is given in respect of the other pension, the portion of it that may be commuted is reduced by the amount of the reduction under that paragraph.”; and |
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(ii) |
in paragraph (9)(b), for the words from “Part 7” to the end, substitute “Part 7A of the Compensation Scheme in an award to a reservist.”(5); |
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(i) |
in rule 10 (commutation: small pensions), in paragraph (1), omit “fire and rescue”; and |
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(j) |
in rule 11 (allocation of pension), in paragraph (4), for “Part 7 of the Compensation Scheme (awards to, or on death of, servicemen)”, substitute “Part 7A of the Compensation Scheme (awards to, or on death of, reservists)”. |
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| 5- |
In Part 4 (survivors’ pensions)— |
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(a) |
in Chapter 1, in rule 2 (amount of survivor’s pension: general), for “rule 2(4)” substitute “rule 2(3)”; and |
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(b) |
in Chapter 2, in rule 7 (child’s pension: limitations and duration), in paragraphs (3) and (4), for “firefighter member” substitute “deceased”. |
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| 6- |
In Part 5 (awards on death)— |
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(a) |
in rule 1 (death grant)— |
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(i) |
in paragraph (4), after “part-time”, insert “, retained or volunteer”; |
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(ii) |
in paragraph (8), for sub-paragraph (b), substitute— |
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(b) |
dies without having paid in full the contributions due to his employing authority under that rule,”; |
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(iii) |
in paragraph (9), after “amount”, insert “or, where there has been partial payment, the balance”; and |
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(b) |
in rule 2 (post-retirement death grant), in paragraph (1)— |
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(i) |
in paragraph (i), after “period”, insert “(excluding any lump sum that he may have received on commutation under rule 9 of Part 3)”; and |
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(ii) |
in paragraph (ii), for “including”, substitute “excluding” and omit “or 10”. |
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| 7- |
In Part 6 (pension sharing on divorce)— |
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(a) |
in rule 3 (commutation of part of pension credit benefits), for paragraph (2), substitute— |
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“(2) |
The commuted portion must not exceed one quarter of the amount of the pension.”; |
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(b) |
in rule 5 (post-retirement death grant: pension credit members), in paragraph (1) |
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(b) |
for paragraph (ii), substitute— |
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“(ii) |
the instalments of pension that have been paid,”; and |
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