Pensions Act, 1990
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THIRD SCHEDULE Funding Standard — Benefits | |||
1. The benefits for the purposes of this paragraph shall be all future benefits payable under the rules of the scheme to or in respect of a person in receipt of such benefits as at the effective date of the certificate. | |||
2. The benefits for the purposes of this paragraph shall apply to or in respect of a member of a scheme on whose behalf any additional benefit has been secured or granted under the scheme by way of additional voluntary contributions or a transfer of rights from another scheme and such benefits shall be calculated as at the effective date of the certificate and shall be— | |||
(a) where, at the effective date of the certificate, the member's service in relevant employment has terminated and a transfer payment has not been applied in accordance with section 34 or 35 , preserved benefit payable in respect of such additional benefits calculated in accordance with Part III , and | |||
(b) where, at the effective date of the certificate, the member is in relevant employment, preserved benefit in respect of such additional benefits calculated in accordance with Part III , as if the member's service in relevant employment had terminated on such date but disregarding any provision requiring the completion of a minimum period of qualifying service. | |||
3. The benefits for the purposes of this paragraph shall be calculated as at the effective date of the certificate and shall be— | |||
(a) in the case of a member of that scheme whose service in relevant employment terminated after the commencement of Part IV but prior to the effective date of the certificate and in respect of whom a transfer payment has not been applied in accordance with section 34 or 35 the greater of— | |||
(i) all preserved benefits (including future revaluations thereof and those benefits payable on the death of the member entitled to preserved benefit) calculated in accordance with Part III , and | |||
(ii) the benefits payable under the rules of the scheme in respect of reckonable service completed after the commencement of Part IV , and | |||
(b) in the case of a member of that scheme then in relevant employment, the greater of— | |||
(i) preserved benefits (including future revaluations thereof and those benefits payable on the death of the member entitled to preserved benefit) calculated in accordance with the provisions of Part III , and | |||
(ii) the benefits payable under the rules of the scheme in respect of reckonable service completed after the commencement of Part IV but prior to the effective date of the certificate, | |||
calculated as if the member's service in relevant employment had terminated, on the effective date of the certificate but disregarding any provision requiring the completion of a minimum period of qualifying service or any other provision which may prevent the member concerned from acquiring an entitlement to benefit on termination of such employment. | |||
4. The benefits for the purposes of this paragraph shall be calculated as at the effective date of the certificate and shall be— | |||
(a) any benefit payable under the rules of the scheme in respect of reckonable service completed prior to the commencement of Part IV to or in respect of a member of that scheme— | |||
(i) whose service in relevant employment terminated prior to the effective date of the certificate, and | |||
(ii) who has not excercised any right to a transfer payment to another scheme, | |||
and | |||
(b) a benefit payable to or in respect of a member then in relevant employment whose reckonable service commenced before the commencement of Part IV being— | |||
(i) subject to clause (iii), in the case of a defined benefit scheme, the greater of— | |||
(I) the amount determined by the formula— | |||
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where— | |||
L is the amount of long service benefit calculated as at the effective date of the certificate on the basis of the rules of the scheme in force on the commencement of Part IV , | |||
M is the period of reckonable service completed prior to the commencement of Part IV , and | |||
N is the period of reckonable service that would have been completed if the member had remained in relevant employment until normal pensionable age and such service had continued to qualify for long service benefit: | |||
Provided that, where the rules of the scheme in force at the commencement of Part IV provided for benefits to be calculated in relation to a member's pensionable earnings at, or in a specified period prior to, his attaining normal pensionable age or in some other way relative to such earnings, the benefit under this clause may be calculated in a corresponding manner by reference to his earnings at, or in the same period before the effective date of the certificate, and | |||
(II) the benefits payable under the rules of the scheme in respect of reckonable service completed prior to the commencement of Part IV calculated as if the member's service in relevant employment had terminated on the effective date of the certificate but disregarding any provision which may prevent the member concerned from acquiring an entitlement to benefit on termination of relevant employment, | |||
(ii) in the case of a defined contribution scheme, a benefit whose actuarial value is equal to the then accumulated value of the contributions paid by or in respect of the member of the scheme for the purpose of long service benefit prior to the commencement of Part IV , | |||
(iii) in the case of a defined benefit scheme where the rate or amount of part of the long service benefit payable thereunder is directly determined by an amount of contribution paid by or in respect of the member, in so far as it relates to such part of the long service benefit, a benefit calculated in accordance with clause (ii) and in so far as it relates to the remaining part of the long service benefit, a benefit calculated in accordance with clause (i). |