The Occupational Pension Schemes (Transfer Values) Regulations 1996

Rules on continuation in employment after termination of pensionable service E+W+S

3.—(1) This regulation applies where a member continues in employment to which a scheme applies after the member’s pensionable service in such employment terminates and—

(a) that pensionable service commenced before 6th April 1988 and terminated at the member’s request; and

(b) (i) that pensionable service, but for that request, would have continued until the guarantee date, or

(ii) that pensionable service continued, or but for that request would have continued, until the relevant date.

(2) Where this regulation applies and the condition mentioned in regulation 3(1)(b)(i) is satisfied, without prejudice to any right the member may acquire to a cash equivalent of money purchase benefits, the member, on making a relevant application in accordance with section 94(1)(aa) of the 1993 Act (right to guaranteed cash equivalent) acquires a right to only that part of the guaranteed cash equivalent which relates to benefits specified in paragraph (4).

(3) Where this regulation applies and the condition mentioned in regulation 3(1)(b)(ii) is satisfied, without prejudice to any right the member may acquire to a cash equivalent of benefits other than money purchase benefits, the member acquires a right to the cash equivalent of only those money purchase benefits which are benefits specified in paragraph (4).

(4) The benefits referred to in paragraphs (2) and (3) are—

(a) in the case of benefits which have accrued in respect of the member’s pensionable service in employment to which the scheme applied, those benefits which are attributable to pensionable service after 5th April 1988; and

(b) in the case of benefits which have not so accrued, those benefits which were credited to the member after 5th April 1988.

(5) Where a member exercises a right to the part of a guaranteed cash equivalent described in paragraph (2) or to a cash equivalent of only certain money purchase benefits as described in paragraph (3), Chapters II and III of Part IV of the 1993 Act are modified so that, for the purposes of those provisions, the benefits to which that part or that cash equivalent, as the case may be, related are disregarded and the pensionable service by reference to which those benefits were calculated is excluded from the pensionable service referred to in paragraph 1(1) of Schedule 3 to the 1993 Act (the final salary method of revaluation of accrued benefits).

Modifications etc. (not altering text)

C1 Reg. 3 modified (S.) (1.4.2015) by The Firefighters' Pension Scheme (Consequential Provisions) (Scotland) Regulations 2015 (S.S.I. 2015/117), regs. 1(3), 12(2) (with reg. 5)

C2 Reg. 3 modified (S.) (1.4.2015) by The Police Pensions (Consequential Provisions) (Scotland) Regulations 2015 (S.S.I. 2015/118), regs. 1(3), 12(2) (with reg. 5)

C3 Reg. 3 applied (with modifications) (1.4.2015 coming into force in accordance with ) by The National Health Service Pension Scheme (Consequential Provisions) Regulations 2015 (S.I. 2015/432), regs. 1(2), 12(2)

C4 Reg. 3 modified (1.4.2015) by The Armed Forces Pension (Consequential Provisions) Regulations 2015 (S.I. 2015/390), regs. 1(2), 12(2)

C5 Reg. 3 modified (S.) (1.4.2015) by The National Health Service Pension Scheme (Consequential Provisions) (Scotland) Regulations 2015 (S.S.I. 2015/145), regs. 1(2), 12(2) (with reg. 5)

C6 Reg. 3 modified (1.4.2015) by The Teachers' Pension Scheme (Consequential Provisions) Regulations 2015 (S.I. 2015/436), regs. 1(2), 12(2) (with reg. 5)

C7 Reg. 3(1) modified (W.) (1.4.2015) by The Firefighters' Pension Scheme (Wales) (Consequential Provisions) Regulations 2015 (No. 848), regs. 1(2), 12(2)(a) (with reg. 5)

C8 Reg. 3(1)(a) modified (W.) (1.4.2015) by The Firefighters' Pension Scheme (Wales) (Consequential Provisions) Regulations 2015 (No. 848), regs. 1(2), 12(2)(b) (with reg. 5)

C9 Reg. 3(1)(b)(i) modified (W.) (1.4.2015) by The Firefighters' Pension Scheme (Wales) (Consequential Provisions) Regulations 2015 (No. 848), regs. 1(2), 12(2)(c) (with reg. 5)