PART 1Membership, contributions and benefits
Pension accounts
Retirement pension accounts : deferred, deferred pensioner and pension credit members26
1
When a deferred member becomes entitled to immediate payment of a retirement pension—
a
the deferred member's pension account must be closed; and
b
a retirement pension account must be opened.
2
The retirement pension account must specify—
a
the amount of accrued pension;
b
the amount of any additional pension purchased under regulation 17(7)(b)(i) (additional voluntary contributions);
c
the early payment reduction or deferred payment enhancement (if any), and the amount of pension to which that reduction or enhancement applies;
d
the commutation amount (if any);
e
the amount of any pension adjustment; and
f
the amount of pension payable from time to time and the date from which it is to be paid.
3
Subject to paragraph (4), the amount of accrued pension for the purposes of paragraph (2)(a) is the amount specified in that member's deferred member's pension account immediately before it was closed.
4
The amount of accrued pension specified in paragraph (2)(a) must be reduced to take account of the commutation amount.
5
The amount of any pension adjustment not already accounted for under paragraph (2)(a) is, for the purposes of paragraph (2)(e), the aggregate of the amounts calculated in accordance with actuarial guidance issued by the Secretary of State to account for—
a
any tax to which the administering authority may become chargeable under the Finance Act 2004 in accordance with regulation 87 (tax); or
b
a pension sharing order.
6
The balance in the member's account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the Pensions (Increase) Act 1971 M1 applied.
7
This regulation applies in relation to a deferred pensioner member who becomes entitled to immediate payment of a retirement pension as it applies to a deferred member with the following modifications—
a
all references to deferred members are to be read as references to deferred pensioner members; and
b
in addition to the items mentioned in paragraph (5)(a) and (b), account is also taken of any increase in pension resulting from a decision to award Tier 2 benefits under regulation 37(7)(b) or 37(10) (special provision in respect of members receiving Tier 3 benefits).
8
This regulation applies in relation to pension credit members who become entitled to immediate payment of a retirement pension as it applies to deferred members with the following modifications—
a
all references to deferred members are to be read as references to pension credit members; and
b
the reference to accrued pension in paragraph (2)(a) is to be read as a reference to the amount of pension credit in the pension credit member's account.