The Postal Services Act 2011 (Transfer of Accrued Pension Rights) Order 2012

Additional voluntary contributions transferred from the RMPP

10.—(1) Where a Member has uncrystallised rights to money purchase benefits under the RMPP that are derived from additional voluntary contributions (including additional voluntary contributions that are made to the RMPP after the end of the Cut-Off Date), funds under the relevant account provided to that Member under the RMPP in respect of such contributions (the RMPP AVC Fund) may be transferred to the RMSPS and applied to provide benefits in accordance with this Clause (the part of the RMPP AVC Fund that is transferred to the RMSPS being the Transferred AVC Fund).

(2) Where the Member is an RMSPS AVC Only Beneficiary, the entire balance of the RMPP AVC Fund may at the Member’s election be transferred to the RMSPS at the time the Member elects to crystallise those money purchase benefits. The Transferred AVC Fund will be used in one of the following ways, as the Member chooses—

(a) to provide the following benefits under the RMSPS—

(i) a lump sum cash benefit from the RMSPS, to the extent that this would be an authorised payment under the Finance Act 2004(1); and/or

(ii) a pension under the RMSPS on such terms and conditions as the Secretary of State decides in his absolute discretion; and/or

(b) if the Member is a Plan L Member and so elects, to meet some or all of the obligation to the RMSPS in respect of the Accrued Plan L Amount, as provided for in Clause 3(6) (Benefits payable in respect of Wholly Transferred Beneficiaries) (in the case of a Cut-Off Date Non-Active) or General Rule 15 (Plan L) (in the case of a Cut-Off Date Active).

(3) Where the Member is a Cut-Off Date Active and has elected to use the RMPP AVC Fund to take a lump sum cash benefit under the RMPP of a value equal to (or, in the opinion of the Secretary of State in his absolute discretion, sufficiently close to) the maximum pension commencement lump sum (as that term is defined under the Finance Act 2004) that may be paid to that Member under the RMPP as an authorised payment under the Finance Act 2004, funds remaining in the RMPP AVC Fund (whether the contributions from which they were derived were made before, on or after the Cut-Off Date) may at the Member’s election be transferred to the RMSPS at or around the time the Member is to take such lump sum cash benefit from the RMPP. The Transferred AVC Fund may only be used for the following purposes and subject to the following conditions—

(a) to provide a lump sum cash benefit from the RMSPS, to the extent that this would be an authorised payment under the Finance Act 2004; and/or

(b) if the Member is a Plan L Member and so elects, to meet some or all of the obligation to the RMSPS in respect of the Accrued Plan L Amount provided for in Clause 3(6) (Benefits payable in respect of Wholly Transferred Beneficiaries),

and the amount that is transferred from the RMPP AVC Fund will not exceed the sum of—

(i) the maximum amount of the Transferred AVC Fund that the Member may take as a pension commencement lump sum (as defined under the Finance Act 2004) under the RMSPS (and for avoidance of doubt, when determining this amount (A) any other lump sums payable to the Member under the RMSPS will be taken into account and (B) the Transferred AVC Fund will be included as part of the Member’s RMSPS benefit); and

(ii) the maximum amount necessary to meet the Member’s entire obligation to the RMSPS in respect of the Accrued Plan L Amount.

(4) A Transferred AVC Fund must be transferred to the RMSPS in the form of cash only.

(1)

2004 c.12.