The Scotland Act 1998 (Transitory and Transitional Provisions) (Scottish Parliamentary Pension Scheme) Order 1999

• Citation: S.I. 1999/1082
• Sections: 100

A3 Period of application of this Order

This Order shall apply until the coming into force of provision for the payment of pensions made by the Parliament in accordance with section 81(3) of the Scotland Act 1998.

B1 Establishment of Fund

A fund, to be known as the Scottish Parliamentary Contributory Pension Fund, shall be established for the purposes of the Scheme and shall be vested in and administered by the Parliamentary corporation.

B2 Administration of Fund

(1) The provisions of Schedule 1 shall have effect with respect to the administration of the Fund by the Parliamentary corporation and the management and application of the assets of the Fund.

(2) Subject to paragraph (3), all pensions and other sums payable under the Scheme by the Parliamentary corporation, including contributions equivalent premiums payable in respect of former participants, shall be paid out of the Fund, and all sums received by the Parliamentary corporation under the Scheme shall be paid into the Fund.

(3) Paragraph (2) shall not apply in respect of–

(a) benefits payable and AVC contributions received under Part R;

(b) benefits payable under Part S.

(4) Section 21(6) of the Scotland Act 1998 shall not apply to any sums payable by the Parliamentary corporation under paragraph (2).

C1 Membership for members of the Parliament

Any person serving as a member of the Parliament shall be a participating member in the Scheme unless he has exercised an option under article C3.

C2 Membership for office holders

(1) An office holder who–

(a) has not at any time held the office of First Minister;

(b) has not exercised an option under article C4; and

(c) is either–

(i) a participating member; or

(ii) being either the Lord Advocate or Solicitor General for Scotland, not a member of the Parliament,

shall be a participating office holder in the Scheme in respect of any period of tenure of a qualifying office.

(2) In this Order “period of tenure of a qualifying office” means any continuous period for which a person is–

(a) the holder of one and the same qualifying office; or

(b) the holder successively of two or more qualifying offices in respect of which the same salary is payable.

(3) In this Order “qualifying office” means any of the following offices–

(a) any member of the Scottish Executive, except the First Minister;

(b) any of the Junior Scottish Ministers;

(c) Deputy Presiding Officer;

(d) Leader of a Non-Executive Party;

(e) Chief Business Manager of a qualifying party;

and “office holder” means the holder of a qualifying office.

(4) For the purposes of paragraph (3)–

“Chief Business Manager” means, in relation to a qualifying party, the member of the Parliament from time to time nominated as such for the purposes of this Order by the Leader of that party;

“Leader” means, in relation to a qualifying party, the member of the Parliament who is for the time being the leader in the Parliament of that party;

“Non-Executive Party” means a qualifying party, other than any such party with which any member of the Parliament who is also a member of the Scottish Executive or a junior Scottish Minister is connected;

“qualifying party” means a registered party with which at least 10 members of the parliament are connected.

C3 Right to opt out for members of the Parliament

(1) A participating member may exercise an option in writing under this article not to be a participant in the Scheme.

(2) Subject to paragraph (3), the effective opt-out date in respect of a member is whatever date the Parliamentary corporation shall determine to be the earliest practicable date after that on which it receives from him written notice of the exercise of the option.

(3) If the Parliamentary corporation receives the written notice not more than three months after the date of the election at which the person was elected for the first time to membership of the Parliament, the effective opt-out date is the date of that election and any contributions deducted from him under article D1 since that election shall be repaid to him.

(4) A member of the Parliament who has exercised his right under paragraph (1) to opt out of the Scheme is referred to in this Order as “an opted-out member”.

C4 Right to opt out for office holders

(1) An office holder who is a participating member or who is not a member of the Parliament may exercise an option in writing under this article not to be a participating office holder in the Scheme.

(2) Subject to paragraph (3), the effective opt-out date in respect of an office holder is whatever date the Parliamentary corporation shall determine to be the earliest practicable date after that on which it receives from him written notice of the exercise of the option.

(3) If the Parliamentary corporation receives the written notice not more than 12 months after the date of commencement of a period of tenure of a qualifying office, the effective opt-out date is the date on which that period of tenure commenced and any contributions deducted under article D1 from his office holder’s salary in respect of that period of tenure shall be repaid to him.

(4) An office holder who has exercised an option under paragraph (1) not to be a participating office holder or who has exercised the option under article C3(1) is referred to in this Order as “an opted-out office holder”.

C5 Right to opt in for members of the Parliament

An opted-out member may apply to rejoin the Scheme as a participating member as from the date of any election at which he was elected to membership of the Parliament (“the effective opt-in date”) by giving notice in writing to the Parliamentary corporation within a period of three months beginning with the effective opt-in date:

Provided that–

(a) he pays to the Parliamentary corporation within 28 days of its acceptance of his application, or within such longer period as it may determine, the sum certified by it as being the amount which would have been deducted from his member’s salary under article D1 between the effective opt-in date and the first date thereafter when a deduction from that salary under article D1 is made; and

(b) at the effective opt-in date, at least three months had elapsed since he was last elected to membership of the Parliament.

C6 Right to opt in for office holders

An opted-out office holder who is either–

(a) a participating member; or

(b) not a member of the Parliament,

may apply to rejoin the Scheme as a participating office holder as from the date of commencement of a new period of tenure of a qualifying office (“the effective opt-in date”) by giving notice in writing to the Parliamentary corporation within a period of 12 months beginning with the effective opt-in date provided that he pays to the Parliamentary corporation within 28 days of its acceptance of his application, or within such longer period as it may determine, the sum certified by the Parliamentary corporation as being the amount which would have been deducted from his office holder’s salary under article D1 between the effective opt-in date and the first date thereafter when a deduction from that salary under article D1 is made.

D1 Contributions by participants

(1) Subject to paragraph (3) and article D3, there shall be deducted from each payment in respect of salary made to a participant 6% of that payment; and all sums so deducted shall be paid into the Fund.

(2) In this article, “salary” means–

(a) in the case of a participating member who is not a participating office holder, his member’s salary;

(b) in the case of a participating office holder who is not a participating member, his office holder’s salary; and

(c) in the case of a participant who is both a participating member and a participating office holder, his member’s salary and his office holder’s salary.

(3) Where a person’s aggregate period of reckonable service as a participating member exceeds that which would give rise to the maximum pension allowed in respect of that person as a participating member under article F4 or F5, no deduction shall be made under this article from payments in respect of his member’s salary.

(4) If any salary from which a deduction is required to be made under this article is not drawn, there shall be set aside, out of moneys available for the payment, a sum equal to the relevant deduction; and any sum so set aside shall be paid into the Fund.

D2 Earnings cap

Where the annual salary of a participating member as–

(a) a member of the Parliament;

(b) an office holder; or

(c) both a member of the Parliament and an office holder,

exceeds the permitted maximum, the contributions deducted from that annual salary shall be limited to 6% of that permitted maximum and where sub-paragraph (c) applies his contributions under article D1 in respect of his office holder’s salary shall be reduced before his contributions under that article in respect of his member’s salary.

D3 Contributions from Scottish Consolidated Fund

(1) In respect of each financial year the Parliamentary corporation shall pay a contribution into the Fund out of the Scottish Consolidated Fund.

(2) The amount of that contribution shall be determined from time to time by the Parliamentary corporation on the recommendation of the Government Actuary and shall be expressed as a percentage of the amount of the salaries, attributable to the financial year in question, of the persons described in article C1 or C2, in respect of which those persons contribute to the Fund in relation to that financial year.

E1 Actual reckonable service

(1) Subject to articles N1 (refunds) and P1, P2 and P3 (transfers out) in relation to any person any period during which he was a member of the Parliament and has made contributions to the Fund is a period of reckonable service as a participating member; and in this Order “actual period of reckonable service as a participating member”, in relation to a person, means the period referred to in this paragraph or (if more than one) the aggregate of such periods.

(2) Subject to articles F5(3) (payment to office holder after normal retirement), N1 (refunds), P1, P2 and P3 (transfers out), any period during which a person is a participating office holder is a period of reckonable service as a participating office holder; and in this Order “actual period of reckonable service as a participating office holder”, in respect of a person, means his period (or, if more than one, the aggregate of his periods) of reckonable service as a participating office holder.

(3) In this Order “actual period of reckonable service as a participant”, in respect of a person, means the total of whichever of the following apply to him, namely:–

(a) his actual period of reckonable service as a participating member;

(b) his actual period of reckonable service as a participating office holder; or

(c) if (a) and (b) both apply, his actual period of reckonable service as a participating member together with such part, if any, of his actual period of reckonable service as an office holder when he was not also a participating member.

(4) For the purposes of the Scheme, a period of reckonable service is measured in years and fractions of a year.

E2 Aggregate reckonable service

(1) In respect of a person, his aggregate period of reckonable service as a participating member is his actual period of reckonable service as a participating member together with any increases in reckonable service attributable to sums received by way of transfer value or to the purchase of added years.

(2) In respect of a person, his aggregate period of reckonable service as a participating office holder is his actual period of reckonable service as a participating office holder together with any increase in reckonable service attributable to sums received by way of transfer value.

(3) In respect of a person, his aggregate period of reckonable service as a participant is his actual period of reckonable service as a participant together with any increases in reckonable service attributable to sums received by way of transfer value or to the purchase of added years.

F1 Entitlement of pensioner members

(1) Subject to the provisions of the Scheme, a person who ceases to be a participating member and who has reckonable service as a participating member under Part E shall be entitled to receive a pension under this article as from the time when the following conditions are fulfilled in respect of him:–

(a) he is neither a member of the Parliament nor a candidate for election to it;

(b) he is not an office holder; and

(c) he has attained the age of 65.

F2 Entitlement of pensioner office holders

(1) Subject to the provisions of the Scheme, a person who ceases to be a participating office holder and who has reckonable service as a participating office holder under Part E shall be entitled to receive a pension under this article as from the time when the conditions specified in paragraphs (a), (b) and (c) of article F1(1) are fulfilled in respect of him.

(2) A person may be entitled to a pension under both articles F1 and this article; and the amounts of the two pensions shall be cumulative.

F3 Amount payable to pensioners

(1) Subject to articles F4 (amount payable to “dual mandate” pensioners), F5 (permitted maximum pensions), G1 (commutation), H1 (early retirement) and J1 and J3 (ill health pensions), the annual amount of the pension payable to a person under article F1 or F2 shall be–

(2) In paragraph (1) the expression “final salary” refers to the person’s final member’s salary or office holder’s salary, as the case may be, and means–

(a) in relation to a person whose actual period of reckonable service as a participating member or office holder, as the case may be, was 12 months or more, the amount of his member’s or office holder’s salary, as the case may be, for the last 12 months (whether continuous or not) comprised in that actual period of reckonable service; and

(b) in relation to a person whose actual period of reckonable service as a participating member or office holder, as the case may be, was less than 12 months, his member’s or office holder’s salary, as the case may be, for the period (whether continuous or not) which constituted that actual period of reckonable service multiplied by 365 and divided by the number of days in that period,

and in either case excludes any amount in excess of the permitted maximum.

(3) In paragraph (1) the expression “aggregate period of reckonable service” refers to the person’s aggregate period of reckonable service as a participating member or office holder, as the case may be.

F4 Amount payable to “dual mandate” pensioners

(1) This article applies to a pensioner who, for part of his actual period of reckonable service as a participant, also received a salary pursuant to a resolution (or combination of resolutions) of either House of Parliament relating to the remuneration of members of that House or under section 1 of the European Parliament (Pay and Pensions) Act 1979 .

(2) The period mentioned in paragraph (1) is referred to in this article as the pensioner’s “period of dual mandate”.

(3) For the purpose of calculating the annual amount of a pension payable to a pensioner to whom this article applies–

(a) where his final salary is calculated in accordance with article F3(2) by reference to a period of dual mandate, the pensioner’s aggregate period of reckonable service shall, for the purpose of article F3(1), be multiplied by three in respect of any part of his aggregate period of reckonable service that was not part of his period of dual mandate; and

(b) where his final salary is calculated in accordance with article F3(2) by reference to an actual period of reckonable service that was not a period of dual mandate, the pensioner’s aggregate period of reckonable service shall, for the purpose of article F3(1), be divided by three in respect of any part of his aggregate period of reckonable service that was a period of dual mandate.

F5 Permitted maximum pensions

(1) The annual amount of the pension payable under article F1 or F2 shall not exceed whichever is the least of–

(a) the amount equal to two-thirds of the participant’s final salary; or

(b) such maximum pension as is calculated in respect of that person in accordance with the provisions of Schedule 2; or

(c) the amount equal to two-thirds of the permitted maximum.

(2) In the case of a person who is entitled to a pension under both articles F1 and F2, the amount of the two pensions together shall not exceed two-thirds of the permitted maximum and, if they do, the pension payable under article F2 shall be reduced before the pension payable under article F1.

F6 Duration of pensions

(1) Subject to the following provisions of this article, a pension under article F1 or F2 (including an early retirement pension or an ill-health pension by virtue of Part H or J) shall continue for the life of the person to whom it is payable.

(2) Subject to paragraph (3), no such pension shall be payable to a person in respect of any period during which he is a member of the Parliament or a candidate for election to the Parliament, or in respect of any part of a period of tenure of a qualifying office other than a part in respect of which no salary is payable or in respect of which no salary is drawn.

(3) Where, in the case of any person, a pension under article F1 or F2 or a pension under each of those articles would, but for paragraph (2), be payable to him in respect of a period of tenure of a qualifying office during which he is neither a member of the Parliament nor a candidate for election to the Parliament–

(a) that paragraph shall not apply to that pension or either of those pensions in respect of any part of that period;

(b) the amount or aggregate amount payable to him in right of that pension or those pensions for any part of that period shall not exceed the amount, if any, by which any office holder’s salary payable to him for that part of that period falls short of the amount of a member’s salary for that period; and

(c) if he is a participating office holder in respect of that period then, for the purpose of calculating the amount, if any, which would, apart from sub-paragraph (b) above, be payable to him in right of a pension under article F2 for any part of that period (but not for any other purpose, and in particular not for the purpose of recalculating at the end of that period the annual amount of the pension, if any, to which apart from sub-paragraph (b) above he is entitled under article F2), that period shall be deemed not to be a period of reckonable service as a participating office holder.

(4) For the purposes of this article a person who ceases to be a member in consequence of the dissolution of the Parliament shall be treated as a candidate for election unless and until he gives notice in writing to the Parliamentary corporation that he is not seeking re-election.

(5) This article shall not apply for the purposes of calculating the amounts mentioned in article M2(3) or (4)(b) or the amounts payable under M3(2), M4(2) or M7 (five year guarantee).

G1 Commutation into lump sum

(1) Any person who is entitled to receive a pension under Part F (including an ill-health pension payable by virtue of Part J) or who applies to receive a pension under Part H may, before the first instalment of the pension is paid, give notice to the Parliamentary corporation that he desires to commute into a lump sum such part of the pension as is specified in the notice.

(2) Where a person has given notice under paragraph (1), the Parliamentary corporation shall determine–

(a) what lump sum would be actuarially equivalent to the part of the pension specified in the notice; and

(b) what reduction of the annual amount of his pension would be appropriate in consideration of the payment of that lump sum,

and, subject to the following provisions of this article, a lump sum of the amount so determined shall be paid to that person and the annual amount of his pension shall be reduced accordingly.

(3) Any lump sum or reduction to be determined under paragraph (2) shall be a sum or reduction either certified by the Government Actuary, or calculated in accordance with tables to be prepared from time to time by the Government Actuary, as fulfilling the conditions specified in paragraph (2)(a) or (b), as the case may be.

(4) If, in the case of person who has given notice under paragraph (1), the amount of the lump sum determined in accordance with paragraphs (2) and (3) would exceed the maximum commutable sum–

(a) the amount of the lump sum so determined shall be diminished by such proportion as is necessary to make it equal to the maximum commutable sum; and

(b) the reduction of the annual amount of his pension under this article shall be diminished by the like proportion.

(5) For the purposes of paragraph (4), the maximum commutable sum in the case of any person shall be calculated in accordance with Schedule 3 and shall be subject to an overall maximum of one and half times the permitted maximum.

H1 Early retirement for members

(1) Where a person who–

(a) has ceased to be a member of the Parliament;

(b) is not the holder of a qualifying office;

(c) has attained the age of 50; and

(d) has an actual period of reckonable service as a participating member which amounts to not less than 15 years (hereinafter referred to in respect of a person as his “qualifying period”),

applies in writing to the Parliamentary corporation for an immediate pension under this article then, if the Parliamentary corporation is satisfied that he does not intend to stand for re-election to the Parliament, he shall be entitled to receive a pension under article F1 as if he had attained the age of 65 on the date of his application or, if later, such other date as may be there specified; but the annual amount of the pension to which he is so entitled, both before and after he attains the age of 65, shall (subject to Part G (commutation)) be an amount calculated in accordance with article F3 and abated in accordance with Schedule 4.

(2) For the purposes of this article service of a person as a member of the European Parliament or as a member of the House of Commons may count towards his qualifying period to the extent that it is not concurrent with service as a member of the Parliament.

H2 Early retirement for office holders who have been members

A person who is entitled to receive a pension under article H1 who is or has been a participating office holder shall (subject to Part G (commutation)) be entitled also to receive a pension under article F2 calculated in accordance with article F3 and abated in accordance with Schedule 4 and payable from the same date as the pension payable under article H1.

J1 Ill-health pensions based on service as a participant

(1) A participant who because of ill-health–

(a) ceases to be a participating member before attaining the age of 65 years; or

(b) while not a member of the Parliament but while having a period of reckonable service as a participating member ceases to be a participating office holder before attaining that age,

may apply to the Parliamentary corporation for an early pension under article F1 if at the time when he so ceases (“the material time”) he would have become entitled to receive a pension under that article but for his not having attained the age of 65.

(2) A participant who because of ill-health–

(a) ceases to be a participating member before attaining the age of 65; or

(b) while not a member of the Parliament ceases to be a participating office holder before attaining that age,

may apply to the Parliamentary Corporation for an early pension under article F2 if at the time when he so ceases (“the material time”) he would have become entitled to receive a pension under that article but for his not having attained the age of 65.

(3) If on an application under paragraph (1) or (2) the Parliamentary corporation is satisfied–

(a) so far as is applicable, that the applicant does not intend to seek re-election to the Parliament or to accept any future offer of a qualifying office;

(b) that his ceasing as mentioned in paragraph (1)(a) or (b) was a direct consequence of his ill-health; and

(c) that his ill-health is such as would prevent him from performing adequately the duties of a member of the Parliament,

the applicant shall be entitled to receive a pension under article F1 or F2, as the case may be, as from the material time.

(4) A person who, if he were to cease as mentioned in paragraph (1)(a) or (b) or (2)(a) or (b) at a particular time in the future because of ill-health, would become entitled to make an application under the relevant paragraph, may make such an application before that time, specifying in it the time when he proposes so to cease, and where on such an application the Parliamentary corporation is satisfied that, if the applicant so ceases at the time specified therein, he will be entitled under paragraph (3) to receive a pension under article F1 or F2, as appropriate, as from that time, it shall give him notice in writing to that effect.

(5) The annual amount of a pension payable under article F1 or F2 to a person by virtue of this article shall (subject to Part G (commutation)) be calculated in accordance with article F3; but for the purposes of calculating his pension under article F1 his actual period of reckonable service as a participating member shall be increased by a period equal to the period between his ceasing as mentioned in paragraph (1)(a) or (b) and the time when he would attain the age of 65.

(6) For the purposes of this article–

(a) a person who has ceased to be a participating member in consequence of the dissolution of the Parliament shall be treated as having so ceased because of ill-health if, but only if, he satisfies the Parliamentary corporation that as a direct consequence of his ill-health he did not seek re-election to the Parliament after the dissolution; and

(b) a person who has, while not a member of the Parliament, ceased to be a participating office holder because of the result of a general election consequent upon the dissolution of the Parliament shall be treated as having so ceased as a direct consequence of his ill-health if, but only if, he satisfies the Parliamentary corporation that on the day of the poll in that election his ill-health was such as would prevent him from performing adequately the duties of a member of the Parliament.

J2 Ill-health pensions for former members or office holders

(1) A person who because of ill-health has, while neither a member of the Parliament nor a candidate for election to it nor an office holder, retired from gainful work before attaining the age of 65 may apply to the Parliamentary corporation for an early pension under article F1 or F2, if at the time when he so retired he would have become entitled to receive a pension under article F1 or F2, as the case may be, but for his not having attained the age of 65.

(2) If on an application under this article the Parliamentary corporation is satisfied–

(a) that the applicant does not intend to seek election to the Parliament or to accept any future offer of a qualifying office;

(b) that his retirement from gainful work was a direct consequence of his ill-health; and

(c) that his ill-health is such as would prevent him from performing adequately the duties of a member of the Parliament,

the applicant shall, as from the date on which the Parliamentary corporation is so satisfied, be entitled to receive a pension under the relevant article.

(3) Where an application is made under this article, the Parliamentary corporation shall by notice in writing inform the applicant whether it is so satisfied as mentioned in paragraph (2) and, if it is so satisfied, shall state the date as from which the pension payable to him by virtue of this article is payable in accordance with that paragraph.

(4) In this regulation “gainful work” means work under a contract of employment, or as the holder of an office, or as a self-employed person engaged in a business or profession, being in any case work from which the person concerned gains the whole or a substantial part of his income.

J3 Medical evidence

(1) Every application under Part J must be accompanied by evidence from a medical practitioner of the applicant’s state of health.

(2) In the case of any such application the Parliamentary corporation may require the applicant to undergo a medical examination by a medical practitioner nominated by it for the purpose; and the fees for any such examination shall be borne by the Parliamentary corporation or the applicant, as the Parliamentary corporation may determine.

K1 Pensions for surviving spouses

(1) Subject to the following provisions of this article, the surviving spouse of a person who was at the time of his death a participant, a pensioner or a deferred pensioner shall be entitled to receive a pension under this article.

(2) The annual amount of a pension payable under this article shall be five-eighths of the basic or prospective pension or pensions of the deceased.

(3) Subject to paragraphs (4) and (5), a pension payable under this article shall continue for the surviving spouse’s life or until her remarriage; but in the case of remarriage the Parliamentary corporation may, if it thinks fit, at any time direct that the pension shall be restored if satisfied that the subsequent marriage has been terminated or that there are exceptional reasons for the payment of the pension notwithstanding the subsistence of that marriage.

(4) Subject to paragraph (5), no pension shall be payable under this article to a surviving spouse who, at the deceased’s death, was cohabiting with another person; and if a surviving spouse entitled to such a pension cohabits with another person, the pension shall cease to be payable:

Provided that the Parliamentary corporation may, if it thinks fit, direct that the pension shall be paid or restored, as the case may be, if satisfied that the cohabitation has been terminated or that there are exceptional reasons for the payment of the pension notwithstanding that the cohabitation continues.

(5) For any period as specified in section 17(5) of the Pension Schemes Act 1993 (period for which Category B retirement pension etc is or would be payable) the surviving spouse of a person shall, notwithstanding paragraphs (3) and (4), be entitled to a pension under this article.

(6) Where a person dies in circumstances in which, apart from this paragraph, a surviving spouse’s pension calculated in accordance with paragraph (2) would be payable to someone married to him within the period of six months ending with his death and it appears to the Parliamentary corporation that his death within six months was to be foreseen by him at the date of the marriage, then if–

(a) there are no children of that marriage; and

(b) the couple were married after the termination of the person’s service in contracted-out employment in respect of which the surviving spouse’s pension is payable,

the Parliamentary corporation may direct that all or any part of the surviving spouse’s pension, as it thinks fit, shall not be payable.

K2 Pensions for children

(1) Subject to the provisions of this article, if a participant, pensioner or deferred pensioner dies leaving one or more eligible children, a children’s pension shall be payable for their benefit.

(2) The annual amount of a children’s pension shall be–

(a) a sum equal to one quarter of the basic or prospective pension or pensions of the deceased if there is one eligible child or, if there is more than one, a sum equal to three-sixteenths of the basic or prospective pension or pensions of the deceased for each eligible child not exceeding two; or

(b) where the deceased left a surviving spouse who has since died, a sum equal to five-sixteenths of the basic or prospective pension or pensions of the deceased for each eligible child not exceeding two.

(3) A children’s pension shall be paid to or distributed between such person or persons as the Parliamentary corporation may from time to time direct, and shall be applied by that person or those persons, without distinction, for the benefit of the eligible child or children of the deceased or such of them as the Parliamentary corporation may from time to time direct.

(4) For the purposes of this article, the eligible child of a deceased person is–

(a) a child of the deceased’s marriage or his adopted child; or

(b) a child who was wholly or mainly dependent on the deceased at the time of his death.

(5) For the purposes of this article, a person counts as a child only if–

(a) he is aged under 17;

(b) he is aged under 22 and since he became 17 he has been engaged continuously in full-time education or in training for a trade, profession or vocation; or

(c) he is physically or mentally incapacitated and became so whilst a child within sub-paragraph (a) or (b).

(6) If the Parliamentary corporation wishes, it may treat education or training as continuous despite a break.

K3 Death in service of participating member

(1) Where a participating member has died, paragraph (2) and article K4 (so far as applicable) shall apply if his surviving spouse is entitled to receive a pension under article K1 or if a children’s pension is payable under article K2 for the benefit of any eligible child or children of his.

(2) If the deceased died before attaining the age of 65, the annual amount of any pension payable to his surviving spouse under article K1, or for the benefit of any eligible child or children of his under article K2, shall be calculated as if he had immediately before his death ceased because of ill-health to be a member of the Parliament and had by virtue of article J1 been entitled to receive a pension under article F1 as from the time when he so ceased.

K4 Enhancement of initial surviving spouses' pensions

(1) In this article “the three month period”, in relation to a person who has died, means the period of three months beginning with the day following the date of his death.

(2) Where the surviving spouse of a person who–

(a) has been a participating member; and

(b) was at the time of his death a pensioner member,

is entitled to receive a pension under article K1, paragraphs (3) and (4) shall apply.

(3) If, for any part of the three month period, the aggregate of the following amounts, namely:–

(a) the amount payable to the surviving spouse by way of pension under article K1 apart from this paragraph; and

(b) any amount which (by direction of the Parliamentary corporation under article K2(3)) is payable to the surviving spouse by way of pension under article K2 for the benefit of any eligible child or children of the deceased,

is less than the amount mentioned in paragraph (4), then for that part of that period the amount payable to the surviving spouse by way of pension under article K1 shall be increased by the difference.

(4) The said amount is the amount which, if the deceased had lived, would have been payable to him for the part of the three month period in question by way of pension under one or both of articles F1 and F2.

(5) Where a participating member has died, paragraphs (6) and (7) (so far as applicable) shall apply if his surviving spouse is entitled to receive a pension under article K1 or if a children’s pension under article K2 is payable for the benefit of any eligible child or children of his.

(6) If, for any part of the three month period, the aggregate of the following amounts, namely:–

(a) the amount payable to the deceased’s surviving spouse by way of pension under article K1 apart from this paragraph; and

(b) any amount which (by direction of the Parliamentary corporation under article K2(3)) is payable to the surviving spouse by way of pension under article K2 for the benefit of any eligible child or children of the deceased,

is less than the amount mentioned in paragraph (7), then for that part of that period the amount payable to the surviving spouse by way of pension under article K1 shall be increased by the difference.

(7) The said amount is the amount which would have been payable to the deceased for the part of the three month period in question if–

(a) the deceased had lived and had at the material time become entitled to a pension under article F1; and

(b) the annual amount of that pension had been a sum equal to a member’s salary at the rate in force at the material time.

(8) In paragraph (7) “the material time” means the date of the deceased’s death.

(9) The preceding provisions of this article are without prejudice to paragraphs (3), (4) and (6) of article K1 (duration of surviving spouse’s pension and restrictions on payment).

K5 Meaning of “basic or prospective pension or pensions”

(1) In this Order “basic or prospective pension or pensions” means–

(a) in relation to a participant who has died, the annual amount of the pension or pensions specified in whichever of the following paragraphs apply to him:–

(i) where the deceased was or had been a participating member, the annual amount of the pension calculated in respect of him in accordance with article F3 or, if he died while a participating member before attaining the age of 65, the annual amount of the pension calculated in respect of him by virtue of article K3;

(ii) where the deceased was or had been a participating office holder, the annual amount of the pension, calculated in accordance with article F3, which he would have been entitled to receive under article F2, if immediately before his death he had fulfilled the conditions specified in sub-paragraphs (a) to (c) of article F1(1);

(b) in relation to a pensioner who has died, the annual amount of the pension or pensions which he received or was entitled to receive calculated in accordance with Part F, including an ill- health pension calculated in accordance with Part J: Provided that where the annual amount of which he was in receipt resulted from one or more reductions or abatements made under article G1 (commutation) or H1 or H2 (early retirement), no such reduction or abatement shall be made in calculating the annual amount of that pension or pensions for the purposes of this article;

(c) in relation to a deferred pensioner who has died, the annual amount of the pension or pensions specified in whichever of the following sub-paragraphs apply to him:–

(i) where the deceased was a former participating member, the annual amount of the pension, calculated in accordance with article F3, which he would have been entitled to receive under article F1 if he had ceased to be a member of the Parliament immediately before his death and he had then fulfilled the conditions specified in sub-paragraphs (a) to (c) of article F1(1);

(ii) where the deceased was a participating office holder, the annual amount of the pension, calculated in accordance with article F3, which he would have been entitled to receive under article F2 if immediately before his death he had fulfilled the conditions specified in sub-paragraphs (a) to (c) of article F1(1).

L1 Gratuity on death in service

(1) Where a participant has died the Parliamentary corporation may, if it thinks fit, grant a gratuity under this article in respect of him.

(2) A gratuity granted under this article in respect of a participant shall be granted–

(a) to the person or persons nominated in any nomination made by him for the purposes of this article which was in force at the time of his death; or

(b) if no such nomination was in force at that time or, pursuant to paragraph (4), to the extent that a nomination is treated as not being in force, to his executors.

(3) Where a participant nominates more than one person for the purposes of this article, he may also specify the proportion of the gratuity to be granted to each such person.

(4) The Parliamentary corporation shall treat a nomination made for the purposes of this section by any participant as not being in force at the time of the participant’s death to the extent that–

(a) any person nominated was the participant’s spouse at the time the nomination was made but has subsequently ceased to be the participant’s spouse; or

(b) it is of the opinion that the payment of the gratuity to any person nominated is not reasonably practicable in all the circumstances.

(5) A nomination for the purposes of this article shall be made, and may be revoked, by a notice in writing given to the Parliamentary corporation; and such a notice shall be in such form as the Parliamentary corporation may require.

(6) The amount of a gratuity granted under this article in respect of a participant shall be the greater of–

(a) the amount equal to three times his salary at the time of his death; and

(b) the aggregate of the contributions paid by that participant, and not refunded to him, together with interest on each such contribution from the date on which it was paid,

but shall be subject to an overall maximum of three times the permitted maximum.

(7) In paragraph (6) “salary” has the same meaning as in article D1(2).

L2 Gratuity on death after retirement

(1) Where a pensioner dies and no pension in respect of him is payable under article K1 or K2, the Parliamentary corporation may, if it thinks fit, but subject to paragraph (2), grant to his executors a gratuity under this article.

(2) The Parliamentary corporation shall not grant a gratuity under this article if the amount of any such gratuity would be less than the amount of any lump sum or the aggregate of any lump sums payable by virtue of article M4(2) or M7.

(3) For the purpose of determining the amount of a gratuity which may be granted in respect of a pensioner under this article, there shall be calculated–

(a) the amount of the gratuity which the Parliamentary corporation could have granted to his executors under article L1 if he had died at a time when he was a participant (but disregarding any office holder’s salary to which he was then entitled); and

(b) the aggregate amount of the payments made to him by way of pension under Part F, H or J together with any lump sum paid to him under article G1,

and the amount of the gratuity shall be the amount (if any) by which the amount calculated under sub-paragraph (a) exceeds the amount calculated under sub-paragraph (b) of this paragraph.

M1 Entitlement

(1) Articles M2 to M6 shall apply in respect of a deceased pensioner member whose actual period of reckonable service is only as a participating member.

(2) Article M7 shall apply in respect of a deceased pensioner whose actual period of reckonable service includes service as a participating office holder.

M2 Guarantees for surviving spouses

(1) Where a pensioner member dies during the pensioner member’s five year period and is survived by his spouse, paragraphs (2) to (5) shall apply.

(2) If for any part of the pensioner member’s five year period, the aggregate of the following amounts namely:–

(a) the amount payable to the surviving spouse by way of pension under article K1 apart from this paragraph (including any enhancement payable under article K4); and

(b) any amount which (by direction of the Parliamentary corporation under article K2(3)) is payable by way of pension under article K2 for the benefit of any eligible child or children of the deceased pensioner member,

is less than the amount mentioned in paragraph (3), then for that part of that period the difference shall be payable to the surviving spouse.

(3) The said amount is the amount which, if the deceased pensioner member had lived, would have been payable to him for the part of the pensioner member’s five year period in question by way of pension under article F1 (including an early retirement pension or an ill-health pension payable by virtue of article H1, J1 or J2).

(4) If the surviving spouse of the deceased pensioner member dies during the pensioner member’s five year period, there shall be paid to her executors a lump sum which shall be calculated by deducting the amount mentioned in sub-paragraph (a) below from the amount mentioned in sub-paragraph (b) below–

(a) the total of any pensions which (by direction of the Parliamentary corporation under article K2(3)) would have been payable under article K2 for the benefit of any eligible child or children of the deceased pensioner member if the annual sum payable under article K2(2) (after the death of the surviving spouse of the deceased pensioner member) in respect of each eligible child had continued during the period ending on the pensioner member’s children’s prospective pension end date for that child;

(b) the amount which would have been payable to the deceased pensioner member if the annual amount of the pension to which he was entitled under article F1 (including an early retirement pension or an ill-health pension payable by virtue of article H1, J1 or J2) were to have been paid to him during the remainder of the pensioner member’s five year period.

(5) In this Part–

“the pensioner member’s five year period” means the period of five years beginning with the day on which he became entitled to receive a pension or pensions under article F1 (including an early retirement pension or an ill-health pension payable by virtue of regulation H1, J1 or J2).

“the pensioner member’s children’s prospective pension end date” means, in respect of any eligible child of a deceased pensioner member the sooner of–

the date before that on which that child reaches the age of 17 or, in the case of a child falling within article K2(5)(b), such later date as the Parliamentary corporation may determine, being no later than the date before that on which the child reaches the age of 22; and

the end of the pensioner member’s five year period.

M3 Guarantees where children but no spouse survive

(1) Where a pensioner member dies during the pensioner member’s five year period and is survived by an eligible child or children, but no spouse, paragraph (2) shall apply.

(2) There shall be paid to the executors of the deceased pensioner member a lump sum which shall be calculated by deducting the amount mentioned in sub-paragraph (a) below from the amount mentioned in sub-paragraph (b) below–

(a) the total of any pensions payable under article K2 (by direction of the Parliamentary corporation under article K2(3)) for the benefit of any eligible child or children of the deceased pensioner member, if the annual sum payable under article K2(2) (after the death of the pensioner member) in respect of each eligible child were to continue during the period ending on the pensioner member’s children’s prospective pension end date for that child;

(b) the amount which would have been payable to the deceased pensioner member if the annual amount of the pension to which he was entitled under article F1 (including an early retirement pension or an ill-health pension payable by virtue of article H1, J1 or J2) were to have been paid to him during the remainder of the pensioner member’s five year period after his death.

M4 Guarantees where no survivors

(1) Where a pensioner member dies within the pensioner member’s five year period and is not survived by his spouse nor by any eligible child or children, paragraph (2) shall apply.

(2) There shall be paid to the executors of the deceased pensioner member a lump sum calculated as if the annual amount of the pension to which he was entitled under article F1 (including an early retirement pension or an ill-health pension payable by virtue of article H1, J1 or J2) were to be paid to him during the remainder of the pensioner member’s five year period after his death.

(3) This article shall not apply if a gratuity is granted under article L2.

M5 Remarriage or cohabitation of surviving spouse

(1) If during a deceased pensioner member’s five year period–

(a) the surviving spouse of that deceased pensioner member remarries or cohabits with another person; and

(b) the Parliamentary corporation directs that the surviving spouse’s pension be paid or restored under article K1(3) or (4),

the Parliamentary corporation may direct that payments under article M2(2) shall continue until the end of the pensioner member’s five year period or until such earlier date as the Parliamentary corporation thinks fit.

(2) If during a deceased pensioner member’s five year period his surviving spouse remarries or cohabits with another person, the Parliamentary corporation may direct that there be paid to the executors of the deceased a lump sum calculated in accordance with article M4(2).

M6 Early termination of child’s period of full-time education or training

(1) If–

(a) a sum has been paid to the executors of the surviving spouse of a deceased pensioner member under article M2(4) or to the executors of a deceased pensioner member under article M3(2); and

(b) the period of full-time education or training of any eligible child of the deceased pensioner member has come to end on a date earlier than the pensioner member’s children’s prospective pension end date for that child used in the calculation of that sum,

the Parliamentary corporation may pay a further sum to the said executors calculated by deducting the amount mentioned in sub-paragraph (ii) below from the amount mentioned in sub-paragraph (i) below–

(i) the total of any pensions which would have been payable for the benefit of that child if the payments had continued until his pensioner member’s children’s prospective pension end date;

(ii) the total of the pensions which have been paid for his benefit.

(2) In paragraph (1) “the period of full-time education or training” in respect of an eligible child means the period during which he is continuously engaged in full-time education or in training for any trade, profession or vocation.

M7 Deceased pensioner office holders

(1) Articles M2 to M6 shall apply in relation to a deceased pensioner office holder and his surviving spouse and any eligible child or children as they apply in relation to a deceased pensioner member and his surviving spouse and eligible child or children but where those articles apply in relation to a deceased pensioner office holder–

(a) any reference to “pensioner member” shall be construed as a reference to “pensioner officer holder”;

(b) any reference to “the pensioner member’s children’s prospective pension end date” shall be construed as a reference to “the pensioner officer holder’s children’s prospective pension end date”;

(c) any reference to “the pensioner member’s five year period” shall be construed as a reference to “the pensioner office holder’s five year period”; and

(d) any reference to article F1 or H1 shall be construed respectively as a reference to article F3 or H2;

(2) In this Part–

“the pensioner office holder’s children’s prospective pension end date” means, in respect of any eligible child of a deceased pensioner office holder, the sooner of–

the date before that on which the child reaches the age of 17 or, in the case of a child falling within article K2(5)(b), such later date as the Parliamentary corporation may determine, being no later than the date before that on which the child reaches the age of 22; and

the end of the pensioner office holder’s five year period;

“the pensioner office holder’s five year period” means the period of five years beginning with the day on which he became entitled to receive a pension under article F2 (including an early retirement pension or an ill-health pension payable by virtue of article H2, J1 or J3).

N1 Refund to contributor

(1) Subject to paragraphs (3) and (6), contributions paid by a person and not previously refunded to him shall be refunded to him by the Parliamentary corporation, with interest from the dates on which the contributions were paid respectively, if he requests the Parliamentary corporation to refund the contributions to him and, on the date of that request, the conditions specified in paragraph (2) are fulfilled in relation to him.

(2) The conditions referred to in paragraph (1) are that–

(a) the person has ceased to be a participant;

(b) his aggregate period of reckonable service as a participant is less than two years; and

(c) he has not become entitled to a pension under the Scheme.

(3) A person shall not be entitled to a refund of contributions if, in the case of a man, he had ceased to be a participant during or on a date after the end of the tax year in which he attains the age of 65 or, in the case of a woman she had ceased to be a participant during or on a date after the end of the tax year in which she attained the age of 60.

(4) If, after the refund of contributions to him under this article, the person becomes entitled to pay and pays contributions under article D1, he may–

(a) if he so desires, and makes the repayment before the end of the period of three months beginning with the date on which he becomes so entitled; or

(b) after the end of that period, if the Parliamentary corporation so allows,

repay to the Parliamentary corporation the sum so paid to him, with interest from the date on which it was paid to him:

Provided that in any tax year the amount of the repayment together with–

the contributions made by him under article D1; and

any contributions made by him under article Q1 or R1; and

any other additional voluntary contributions,

shall not exceed the smaller of 15% of his member’s salary or his office holder’s salary or both and 15% of the permitted maximum; and any sum to be paid to the Parliamentary corporation under this paragraph may, if the Parliamentary corporation so allows, be paid by instalments over such period, not exceeding three years, as the Parliamentary corporation thinks fit.

(5) Any amount (whether of principal or interest) paid by the participant to the Parliamentary corporation under paragraph (4) shall be treated for the purposes of this article as if it were a contribution paid by him at the time when he makes that payment.

(6) The Parliamentary corporation shall deduct from the amount of any contributions which may be repaid to a person in accordance with this article the amount certified by the Secretary of State under section 63(1)(d) of the Pension Schemes Act 1993 in respect of that person.

(7) For the purpose of calculating a person’s actual period of reckonable service as a participant, no account shall be taken of any period in respect of which contributions paid by that person have been–

(a) refunded to him under this article; and

(b) not subsequently repaid by him to the Parliamentary corporation.

N2 Refund after death

Where a person has died–

(a) without leaving a spouse or eligible child who is, or may become, entitled in respect of that person to receive a pension under article K1 or K2; and

(b) in circumstances where the conditions specified in article N1(2)(a) and (c) were fulfilled in relation to him, but where he had not made a request for a refund of contributions under that article,

the Parliamentary corporation shall refund to his executors the contributions paid by the participant and not previously refunded to him, with interest from the dates on which the contributions were paid respectively.

N3 Deduction of tax from refunds of contributions

On making any repayment of contributions (including interest on contributions) under article N1, the Parliamentary corporation shall be entitled to deduct from the repayment any tax to which it may become chargeable under section 598(2) of the Taxes Act 1988 (charge to tax: repayment of employee’s contributions).

P1 Transfers to other pension schemes

(1) At the request of any person who has been a participant but who has ceased to be either–

(a) a member of the Parliament; or

(b) an office holder,

and who (in either case) has not become entitled to a pension under the Scheme, the Parliamentary corporation shall pay into or for the purposes of any one, or more than one, scheme or annuity to which this article applies, a sum or sums representing the transfer value of that person’s accrued pension rights in the Fund (referred to in this article as a “transfer payment”).

(2) This article applies to any scheme or annuity which satisfies the requirements prescribed by regulations made under section 95(2) of the Pension Schemes Act 1993.

(3) Where a person has required the Parliamentary corporation to make a transfer payment in accordance with paragraph (1), there shall be deducted from that payment–

(a) the amount of any contributions equivalent premium; or

(b) an amount sufficient to meet the liability in respect of the person’s contracted-out rights.

(4) The amount mentioned in paragraph (1)(b) may not be deducted where–

(a) the transfer payment is made to an occupational pension scheme which is contracted-out or an appropriate personal pension scheme; and

(b) that scheme’s trustees or managers undertake to accept liability for his contracted-out rights.

(5) Where the amount mentioned in paragraph (1)(a) is deducted, if the Parliamentary corporation thinks fit, that amount may be used in preserving the liability mentioned in paragraph (2)(b) in the Fund, otherwise it may be used in paying the contributions equivalent premium.

(6) A person may require the Parliamentary corporation to make a transfer payment in respect of him at any time before a date–

(a) not more than one year before the date on which he attains the age of 65; or

(b) not more than six months after the date on which he ceases to be a participant,

whichever is the later.

P2 Transfers to other pension schemes after opt-out

(1) At the request of any person who–

(a) is an opted-out member or an opted-out office holder who is not a member of the Parliament; and

(b) has not become entitled to a pension under the Scheme,

the Parliamentary corporation shall pay into or for the purpose of any one or more than one scheme or annuity to which this article applies a sum or sums representing the transfer value of that person’s accrued pension rights in the Fund.

(2) This article applies to any fund or scheme specified in regulation P1(2).

(3) Where a transfer value has been paid under this article in respect of a person who is an opted-out member or an opted-out office holder and that person subsequently ceases to be a member of the Parliament or an office holder, a transfer value may be paid under article P1 in respect of any pension rights accrued to or in respect of him which are preserved in the Scheme.

(4) Article P1(3) and (4) shall apply for the purposes of this article.

P3 Transfer to overseas pension schemes

(1) At the request of any person who has been a participant but who has ceased to be either–

(a) a member of the Parliament; or

(b) an office holder,

and who (in either case) has not become entitled to a pension under the Scheme, the Parliamentary corporation shall pay into or for the purposes of any one, or more than one, fund or scheme to which this article applies a sum or sums representing the transfer value of that person’s accrued pension rights in the Fund.

(2) This article applies to any overseas fund or scheme which is approved by the Parliamentary corporation, provided that the Parliamentary corporation shall before giving such approval consult and have regard to the views of the Board of Inland Revenue and the Occupational Pensions Regulatory Authority as to the suitability of the fund or scheme for the purposes of this article.

(3) At the request of any person–

(a) in respect of whom any sum has been paid under this article into or for the purposes of an overseas fund or scheme; and

(b) who is not at the time the request is made a member of the Parliament or the holder of a qualifying office,

the Parliamentary corporation may receive a sum, out of, or out of monies held for the purposes of, that fund or scheme, equal to the sum paid under this article together with interest thereon from the date of that payment at such a rate as may be agreed by the Parliamentary corporation.

P4 Effect of transfers out on reckonable service

Where any sums are paid by the Parliamentary corporation under article P1, P2 or P3 in respect of any person, then–

(a) for the purpose of calculating that person’s aggregate period of reckonable service as a participating member or his aggregate period of reckonable service as a participating office holder, no account shall be taken of any period before the date of that payment; and

(b) for the purposes of articles N1 and N2 any contributions paid by him before that date shall be treated as not having been paid.

P5 Certification by the Government Actuary

For the purposes of articles P1, P2 and P3, any transfer value of the whole or part of a person’s accrued pension rights under this Scheme shall be such sum as shall satisfy the requirements prescribed under section 95(2) of the Pension Schemes Act 1993 and shall be certified by, or calculated in accordance with tables prepared by, the Government Actuary.

P6 Transfers from other pension schemes

(1) At the request of any person who–

(a) is a participating member;

(b) is an opted-out member who applies to rejoin the Scheme under article C5;

(c) is not a member of the Parliament, but is a participating office holder; or

(d) is not a member of the Parliament, but is an opted-out office holder who applies to rejoin the Scheme under article C6,

the Parliamentary corporation shall receive any sums payable by way of transfer value in respect of him out of, or out of moneys held for the purposes of, any scheme or annuity to which article P1 applies, or under any enactment for the time being in force which authorises the transfer of pension rights.

(2) Where any sums are received by the Parliamentary corporation under paragraph (1) at the request of any person–

(a) he shall be credited with such period or, as the case may be, such additional period, of reckonable service as may be determined by the Parliamentary corporation; and

(b) for the purposes of articles N1 and N2, the sums so received by the Parliamentary corporation, so far as in its opinion they represent his own contributory payments, shall be treated as if they were contributions paid by him, at the same times as those contributory payments were made, by deduction from his salary under article D1.

(3) Any period determined by the Parliamentary corporation under paragraph (2)(a) shall be a period or number of years either certified by the Government Actuary as being appropriate in relation to the sums received by the Parliamentary corporation at the request of the person in question or a period or number of years calculated, in accordance with tables prepared by the Government Actuary, as being appropriate in relation to those sums.

Q1 Purchase of added years by participating members

Schedule 5 shall have effect with respect to the purchase of added years by a participating member, and subject to the provisions of that Schedule, his aggregate period of reckonable service as a participating member shall be treated as increased by the period of added years so purchased.