Assembly Members' Pensions Bill, Northern Ireland Assembly

Assembly Members' Pensions Bill

[AS INTRODUCED]

ARRANGEMENT OF CLAUSES

The Assembly Members' Pension Scheme
Power to amend scheme
Increase of pensions under the scheme
Short title

The Schedule The Assembly Members' Pension Scheme (Northern Ireland) 2000

B I L L

Make provision for the payment of pensions and gratuities to, or in respect of, persons who have been members of the Northern Ireland Assembly

BE IT ENACTED by being passed by the Northern Ireland Assembly and assented to by Her Majesty as follows:

The Assembly Members' Pension Scheme

The scheme set out in the Schedule to this Act (which provides for pensions and gratuities to be payable to or in respect of persons who have ceased to be members of the Assembly) shall have effect.

Power to amend scheme

(1) The Northern Ireland Assembly Commission (in this Act referred to as "the Commission") may, with the consent of the Minister of Finance and Personnel, by order amend the scheme.

(2) Before making an order under this section, the Commission shall consult the Trustees of the scheme.

(3) An order under this section shall not be made unless a draft of the order has been laid before and approved by resolution of the Assembly.

(4) Subject to subsection (5), an order under this section may make provision which has effect from a date earlier than the date of the making of the order.

(5) The Commission shall not under this section make any order in relation to an accrued right which puts any person in a worse position than he would have been in apart from the order unless the Commission is satisfied

(a) that the person in respect of whose service the right has accrued or, as the case may be, will have accrued by the time the order comes into operation is, at the time of the making of the order, a member of the Assembly; or

(b) that an opportunity is given under the order for that person or (where that person has died) for the persons who are or may become entitled by virtue of that right to or to the benefit of any pension or gratuity, or for a person acting on behalf of that person or those persons, to opt for the accrued right to remain unaffected by the order.

(6) In this section "accrued right", in relation to any order under this section, means so much of any right or entitlement to or in respect of a pension or gratuity under the scheme (including any future or contingent right or entitlement) as

(a) has accrued under the scheme in respect of so much of any person's service as was before the making of the order; or

(b) by the time the order comes into operation, will have accrued under the scheme in respect of any service of a person whose service includes a period of service before the making of the order.

(7) The Commission shall be a rule-making authority for the purposes of the Statutory Rules (Northern Ireland) Order 1979; and accordingly in Part I of Schedule 1 to that Order after the entry relating to the Foyle, Carlingford and Irish Lights Commission there shall be inserted

"The Northern Ireland Assembly Commission".

Increase of pensions under the scheme

In Part I of Schedule 2 to the Pensions (Increase) Act (Northern Ireland) 1971 after paragraph 1F there shall be inserted

"1G. A pension payable under the Assembly Members' Pension Scheme (Northern Ireland) 2000 (set out in the Schedule to the Assembly Members' Pensions Act (Northern Ireland) 2000).".

Short title

This Act may be cited as the Assembly Members' Pensions Act (Northern Ireland) 2000.

SCHEDULE

THE ASSEMBLY MEMBERS' PENSION SCHEME (NORTHERN IRELAND) 2000

PART A

PRELIMINARY

Citation

A1. This Scheme may be cited as the Assembly Members' Pension Scheme (Northern Ireland) 2000.

Interpretation - general

A2. (1) In this Scheme

"the Taxes Act 1988" means the Income and Corporation Taxes Act 1988;

"actual period of reckonable service as a participating member" has the meaning given in article E1;

"added year" means a period of reckonable service as a participating member purchased under article Q1 and Schedule 5, including a fraction of an added year and any future added year;

"aggregate period of reckonable service as a participating member" and "aggregate period of reckonable service as a participating holder" have the meanings given in article E1;

"appropriate personal pension scheme" means a personal pension scheme which is for the time being specified in an appropriate scheme certificate issued under regulations made under section 3 of the Pension Schemes Act;

"the AVC Scheme" means that part of this Scheme providing for additional voluntary contributions as set out in Part R and Schedule 6;

"basic or prospective pension or pensions" has the meaning given in article K5;

"contribution" (except in the expression "contributions equivalent premium") means any amount deducted from salary and paid into the Fund under article D1 and any reference to the payment of a contribution shall be construed accordingly;

"contributions equivalent premium" means a premium payable under section 51(2) of the Pension Schemes Act;

"deferred pensioner" means a person who

(a) having been but having ceased to be a participant; and

(b) having accrued rights to a pension from the Fund,

is not, or was not at his death, yet entitled to receive a pension from the Fund;

"eligible child" has the meaning given in article K2(4);

"fraction of a year" means part of a year of reckonable service expressed as the proportion borne by the number of days in that part to 365, and "fraction of an added year" shall be construed accordingly;

"the Fund" means the Northern Ireland Assembly Members' Pension Fund established under article B1;

"interest" (where the reference is to the payment of any sum with interest) means compound interest at the rate of four per cent per annum, calculated with annual rests;

"the multiple" means-

(a) in respect of a pension under article F1, the relevant final salary of the pensioner under article F3(2);

(b) in respect of a pension under article F2, the relevant final salary of the pensioner under article F4(5) multiplied by the average of all the contribution factors under article F4(2) calculated in relation to the pensioner for his aggregate period of reckonable service as a participating office holder;

"normal retirement date" means the date on which a participant reaches the age of 65;

"office holder" has the meaning given in article C2(3);

"opted-out member" has the meaning given in article C3(4);

"opted-out office holder" has the meaning given in article C4(4);

"participant" means a person making contributions to the Fund, and may be either a participating member or both a participating member and a participating office holder;

"participating member" means a person making contributions to the Fund deducted from his salary as a member (or who is excused from making such contributions because his aggregate period of reckonable service exceeds that which would give rise to the maximum pension allowed in respect of him under this Scheme);

"participating office holder" means a person making contributions to the Fund deducted from his office holder's salary;

"pension" does not include an allowance or gratuity;

"the Pension Schemes Act" means the Pension Schemes (Northern Ireland) Act 1993;

"pensioner" means a person entitled to receive a pension from the Fund, and may be either a pensioner member or both a pensioner member and a pensioner office holder;

"pensioner member" means a person entitled to receive a pension from the Fund (including an early retirement pension or an ill-health pension) in respect of his service as a member of the Assembly;

"pensioner office holder" means a person entitled to receive a pension from the Fund (including an early retirement pension or an ill-health pension) in respect of his service as an office holder;

"period of tenure of a qualifying office" has the meaning given in article C2(2);

"permitted maximum" for any tax year means the figure specified for that tax year in an order made under section 590C of the Taxes Act 1988;

"qualifying office" has the meaning given in article C2(3);

"relevant date" means the relevant date for the determination under any provision of his Scheme of the pension of a person;

"tax year" means a year ending on 5th April.

(2) Subsections (9) and (10) of section 47 of the Northern Ireland Act 1988 apply for the purposes of this Scheme as they apply for the purposes of that section.

(3) For the purposes of this Scheme any break in the continuity of the term of office of a member of the Assembly attributable to section 47(9)(a) and (10)(b) of that Act shall be disregarded.

Interpretation - salary

A3. (1) In this Scheme

"a member's ordinary salary" means the annual salary payable by virtue of a determination under section 47 of the Northern Ireland Act 1998 to a member of the Assembly who is not

(a) an office holder; or

(b) in receipt of a salary as a member of either House of Parliament or of the European Parliament;

"a member's reduced salary" means the annual salary payable by virtue of a determination under section 47 of the Northern Ireland Act 1998 to a member of the Assembly who

(a) is not an office holder; but

(b) is in receipt of a salary as a member of either House of Parliament or of the European Parliament;

"office holder's salary" means so much of the annual salary payable by virtue of a determination under section 47 of the Northern Ireland Act 1998 to a person holding a qualifying office as exceeds his salary as a member;

"salary as a member"

(a) in relation to a member who is not an office holder, means whichever of a member's ordinary salary or a member's reduced salary is payable to him; and

(b) in relation to a member who is an office-holder, means so much of the annual salary payable by virtue of a determination under section 47 of the Northern Ireland Act 1998 as equates to

(i) in the case of a member who is in receipt of a salary as a member of either House of Parliament or of the European Parliament, a member's reduced salary;

(ii) in any other case, a member's ordinary salary.

(2) In relation to any time before 2nd December 1999 references in this article to a determination under section 47 of the Northern Ireland Act 1998 shall be construed as references to the New Northern Ireland Assembly (Salaries and Allowances) Order 1999.

Application of this Scheme

A4. (1) This Scheme applies in relation to

(a) service as a member of the Assembly and tenure of a qualifying office at any time on or after the day on which this Act comes into operation; and

(b) subject to the following provisions of this article, service as a member of the Assembly and tenure of a qualifying office at any time on or after 25th June 1998 and before the day on which this Act comes into operation.

(2) A participating member may exercise an option under this article not to have this Scheme apply to his service or tenure of office in the period mentioned in paragraph (1)(b).

(3) The option under this article must be exercised by notice in writing to the Trustees not later than three months after the day on which this Act comes into operation.

(4) If a participating member

(a) does not exercise the option under this article in relation to his service or tenure of office in the period mentioned in paragraph (1)(b); and

(b) pays to the Trustees in accordance with paragraph (5) or (6) the sum certified by the Trustees as being the amount which would have been deducted from his salary in respect of that period under article D1 had this Act come into operation on 25th June 1998,

this Scheme shall apply in relation to that service or tenure of office and the sums paid under sub-paragraph (b) shall be treated for the purposes of this Scheme as contributions deducted under article D1 at the time they would have been deducted had this Act come into operation on 25th June 1998.

(5) A participating member may enter into arrangements with the Trustees for the sum certified under paragraph (4) to be paid to the Trustees

(a) in a lump sum at such time as may be agreed between the member and the Trustees; or

(b) in instalments of such amounts and at such times as may be so agreed.

(6) Where no arrangements are in force under paragraph (5) in respect of a participating member, the sum certified under paragraph (4) shall be paid to the Trustees by means of a deduction of 9% from each payment of salary made to the member; but any deductions made under this paragraph from the salary of a participating member who exercises the option under this article shall be repaid to him as soon as is reasonably practicable after he exercises that option.

(7) Where a participating member

(a) does not exercise the option under this article; but

(b) ceases (whether by death or otherwise) to be a member of the Assembly before all of the sum certified under paragraph (4) is paid to the Trustees,

he shall, subject to paragraph (8), be treated as if he had paid the outstanding amount to the Trustees before he ceased to be a member.

(8) Where a pension or gratuity is payable under this Scheme to or in respect of any participating member who has ceased to be a member as mentioned in paragraph (7)(b), there shall be deducted from the amount of that pension or gratuity an amount equal to the outstanding amount.

(9) Where a member of the Assembly has died at any time in the period mentioned in paragraph (1)(b), the Trustees may pay in respect of his service as a member or tenure of office such pensions under Part K and such gratuity under article L1 as in their opinion would have been payable in respect of that service or tenure of office if

(a) this Act had come into operation on 25th June 1998; and

(b) contributions under article D1 had been deducted from each payment in respect of salary made to him.

(10) Where a gratuity is payable under article L1 in respect of any member who has died as mentioned in paragraph (9), there shall be deducted from the amount of that gratuity calculated in accordance with article L1(6)

(a) an amount equal to the amount which, had this Act come into operation on 25th June 1998, would have been deducted from his salary under article D1; and

(b) the amount of any ex gratia payment made before the coming into operation of this Act by the Secretary of State or a Northern Ireland department for purposes corresponding to those of Part L.

(11) Any deduction made under paragraph (10)(b) shall be paid by the Trustees to the Department of Finance and Personnel which shall pay it into the Consolidated Fund.

PART B

THE FUND AND THE TRUSTEES

Establishment of Fund

B1. (1) A fund, to be known as the Northern Ireland Assembly Members' Pension Fund, shall be established for the purposes of this Scheme and shall be vested in and administered by the Trustees.

(2) The Trustees shall hold the assets comprised in the Fund upon trust in accordance with the provisions of this Scheme.

The Trustees

B2. (1) The Assembly shall by resolution appoint not more than five members of the Assembly to be the Trustees of this Scheme.

(2) A person appointed as a Trustee

(a) may resign from office by notice in writing to the Presiding Officer;

(b) may be removed from office by a resolution of the Assembly;

(3) Subject to paragraphs (4) and (5), the procedure of the Trustees shall be such as the Trustees may determine.

(4) The quorum for any meeting of the Trustees shall be three.

(5) The Trustees may act by a majority of those present at any meeting.

(6) The Trustees may

(a) employ such staff; and

(b) obtain such professional advice and services,

as they think necessary in connection with the performance of their functions under this Scheme.

(7) The expenses of the Trustees shall be defrayed out of the Fund.

Administration of Fund

B3. (1) The provisions of Schedule 1 shall have effect with respect to the administration of the Fund by the Trustees and the management and application of the assets of the Fund.

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

(3) Paragraph (2) shall not apply in respect of benefits payable and contributions received under Part R (the AVC Scheme).

PART C

MEMBERSHIP

Membership for members of the Assembly

C1. Any person serving as a member of the Assembly shall be a participating member in this Scheme unless he has exercised an option under article C3.

Membership for office holders

C2. (1) An office holder who

(a) is a participating member; and

(b) has not exercised an option under article C4,

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

(2) In this Scheme "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 Scheme "qualifying office" means any of the offices to which section 47(3)(a) of the Northern Ireland Act 1998 applies and "office holder" means the holder of a qualifying office.

Right to opt out for members of the Assembly

C3. (1) A participating member may exercise an option in writing under this article not to be a participant in this Scheme.

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

(3) If the Trustees receive the written notice not more than three months after the date

(a) on which this Act comes into operation where the person is a member of the Assembly on that date;

(b) of an election under section 31 or 32 of the Northern Ireland Act 1998 at which the person was elected for the first time to membership of the Assembly;

the effective opt-out date is the day on which he became a member of the Assembly and any contributions deducted from his salary as a member under article D1 since that date shall be repaid to him.

(4) A member of the Assembly who has exercised an option under this article not to be a participant in this Scheme is referred to in this Scheme as "an opted-out member".

Right to opt out for office holders

C4. (1) An office holder who is a participating member may exercise an option in writing under this article not to be a participating office holder in this Scheme.

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

(3) If the Trustees receive 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 this Article not to be a participating office holder or who has exercised the option under article C3 is referred to in this Scheme as "an opted-out office holder".

Right to opt in for members of the Assembly

C5. An opted-out member may apply to rejoin this Scheme as a participating member as from the date on which he became a member of the Assembly following a subsequent election to the Assembly ("the effective opt-in date") by giving notice in writing to the Trustees within a period of three months beginning with the effective opt-in date, provided that

(a) he pays to the Trustees within 28 days of their acceptance of his application, or within such longer period as the Trustees may determine, the sum certified by the Trustees as being the amount which would have been deducted from his salary as a member 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 Assembly.

Right to opt in for office holders

C6. An opted-out office holder who is a participating member may apply to rejoin this 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 Trustees within a period of 12 months beginning with the effective opt-in date, provided that he pays to the Trustees within 28 days of their acceptance of his application, or within such longer period as the Trustees may determine, the sum certified by the Trustees 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.

PART D

CONTRIBUTIONS

Contributions by participants

D1. (1) Subject to paragraph (3) and article D2, there shall be deducted from each payment in respect of salary as a member made to a participating member 6% of that payment; and all sums so deducted shall be paid into the Fund.

(2) Subject to article D2, there shall be deducted from each payment in respect of office holder's salary made to a participating office holder 6% of that payment; and all sums so deducted shall be paid into the Fund.

(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 F5, no deduction shall be made under this article from payments in respect of his salary as a member.

(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.

Earnings cap

D2. Where the annual salary of a participating member as

(a) a member of the Assembly; or

(b) both a member of the Assembly 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 (b) 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 salary as a member.

Contributions from Consolidated Fund

D3. (1) In respect of each financial year the Assembly shall pay a contribution into the Fund out of money appropriated by Act of the Assembly for that purpose.

(2) The amount of the contribution to be paid under paragraph (1) in respect of any financial year shall be calculated in accordance with the recommendations for that year contained in a report under article S2 by the Actuary appointed under article S1.

PART E

RECKONABLE SERVICE

Reckonable service

E1. (1) Subject to articles N1 (refunds) and P4 (effect of transfers out) in relation to any person any period during which he was a member of the Assembly and has made contributions to the Fund is a period of reckonable service as a participating member; and in this Scheme "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 N1 (refunds) and P4 (effect of 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 Scheme "aggregate 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 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.

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

PART F

PENSION ENTITLEMENT

Entitlement of pensioner members

F1. Subject to the provisions of this 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 not a member of the Assembly; and

(b) he has attained the age of 65.

Entitlement of pensioner office holders

F2. (1) Subject to the provisions of this Scheme, a person who

(a) ceases to be a participating office holder; and

(b) 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) and (b) of article F1 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.

Amount payable to pensioner members

F3. (1) Subject to articles F5 (permitted maximum pensions), G1 (commutation), H1 (early retirement) and J1 (ill health pensions), the annual amount of the pension payable to a person under article F1 shall be

(2) In paragraph (1) "the relevant final salary" means

(a) in relation to a person whose actual period of reckonable service as a participating member was 12 months or more, the amount of a member's ordinary salary 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 was less than 12 months, the amount of a member's ordinary salary 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) Subject to paragraph (5), in paragraph (1) "aggregate period of reckonable service" refers to the person's aggregate period of reckonable service as a participating member.

(4) Paragraph (5) applies to a pensioner who, for all or part of his actual period of reckonable service as a participating member, received a member's reduced salary.

(5) For the purpose of calculating under this article the annual amount of a pension payable to a pensioner to whom this paragraph applies, so much of his actual period of reckonable service as a participating member for which he received a member's reduced salary shall be reduced by two thirds.

Amount payable to pensioner office holders

F4. (1) Subject to articles F5 (permitted maximum pensions), G1 (commutation), H1 (early retirement) and J1 (ill health pensions), the annual amount of the pension payable to a person under article F2 shall be calculated in accordance with this article.

(2) For each year of which the whole or any part was comprised in the person's aggregate period of reckonable service as a participating office holder the following amounts shall be calculated

(a) an amount equal to the sums deducted under article D1(2) in respect of that year from the person's office holder's salary; and

(b) an amount equal to the aggregate amount which fell to be deducted under article D1(1) from a participating member's ordinary salary;

and for each such year there shall be calculated the amount ("the contribution factor") which is equal to the amount calculated under sub-paragraph (a) divided by the amount calculated under sub-paragraph (b).

(3) For each such year a contribution credit shall be calculated by multiplying one fiftieth of the relevant final salary by the amount of the contribution factor for that year.

(4) The annual amount of the pension shall be an amount equal to the aggregate of the contribution credits calculated under paragraph (3).

(5) In paragraph (3) "the relevant final salary" means

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

(b) in relation to a person whose aggregate period of reckonable service as a participating office holder was less than 12 months, the amount of a member's ordinary salary for the period (whether continuous or not) which constituted that 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.

Permitted maximum pensions

F5. (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 multiple; or

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

(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.

Duration of pensions

F6. (1) Subject to the following provisions of this article and article J4, 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 Assembly or a candidate for election to the Assembly.

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

(4) 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 article M3(2), M4(2) or M7 (five year guarantee).

PART G

COMMUTATION

Commutation into lump sum

G1. (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 Trustees 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 Trustees shall determine

(a) what lump sum would be actuTahomaly 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 Actuary appointed under article S1, or calculated in accordance with tables to be prepared from time to time by that Actuary, as fulfilling the conditions specified in paragraph (2)(a) or (b), as the case may be.

(4) If, in the case of a 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.

PART H

EARLY RETIREMENT AND EARLY ABATED PENSIONS

Early retirement for members

H1. (1) Where a person who

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

(b) has attained the age of 50; and

(c) 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 Trustees for an immediate pension under this article then, if the Trustees are satisfied that he does not intend to stand for re-election to the Assembly, 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 Assembly.

Early retirement for office holders

H2. 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 F4 and abated in accordance with Schedule 4 and payable from the same date as the pension payable under article H1.

PART J

ILL-HEALTH PENSIONS

Ill-health pensions based on service as a participant

J1. (1) A participant who because of ill-health ceases to be a participating member before attaining the age of 65 may apply to the Trustees 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 ceases to be a participating member before attaining the age of 65 may apply to the Trustees 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 Trustees are satisfied

(a) that the applicant does not intend to seek re-election to the Assembly;

(b) that his ceasing to be a participating member was a direct consequence of his ill-health; and

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 to be a participating member at a particular time in the future because of ill-health, would become entitled to make an application under paragraph (1) or (2), 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 Trustees are 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, the Trustees shall give him notice in writing to that effect.

(5) The annual amount of a pension payable under article F1 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 that calculation his actual period of reckonable service as a participating member shall be increased by a period equal to the period between his ceasing to be a participating member and the time when he would attain the age of 65.

(6) The annual amount of a pension payable under article F2 to a person by virtue of this article shall (subject to Part G (commutation)) be calculated in accordance with article F4.

(7) For the purposes of this article a person who has ceased to be a participating member in consequence of the dissolution of the Assembly shall be treated as having so ceased because of ill-health if, but only if, he satisfies the Trustees that as a direct consequence of his ill-health he did not seek re-election to the Assembly after the dissolution.

Ill-health pensions for former members or office holders

J2. (1) A person who because of ill-health has, while neither a member of the Assembly nor a candidate for election to it, retired from gainful work before attaining the age of 65 may apply to the Trustees 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 Trustees are satisfied

(a) that the applicant does not intend to seek election to the Assembly;

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

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

(3) Where an application is made under this article, the Trustees shall by notice in writing inform the applicant whether they are so satisfied as mentioned in paragraph (2) and, if they are 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 article "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.

Medical evidence

J3. (1) Every application under this Part 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 Trustees may require the applicant to undergo a medical examination by a medical practitioner nominated by them for the purpose; and the fees for any such examination shall be borne by the Trustees or the applicant, as the Trustees may determine.

Trustees' power to review ill-health pensions

J4. (1) The Trustees may at any time review the award of an ill-health pension made under this Part if

(a) the recipient of the pension is under the age of 65; and

(b) the Trustees have reason to believe that the recipient of the pension has recovered to such an extent that, were a fresh application for an ill-health pension to be made at that time, the ill-health pension would not be granted.

(2) As part of any review under this article the Trustees may require the recipient of a pension to undergo a medical examination by a medical practitioner nominated by them for the purpose; the cost of any such examination shall be borne by the Trustees.

(3) If on a review under this article the Trustees conclude that a person receiving an ill-health pension has recovered to such an extent that, were a fresh application for an ill-health pension to be made at the date of the review, the ill-health pension would not be granted, the pension shall cease to be payable as from such date as the Trustees may by notice in writing to the recipient specify (not being less than one month from the date on which the notice is given).

PART K

SURVIVING SPOUSES AND CHILDREN

Pensions for surviving spouses

K1. (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 Trustees may, if they think 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; but the Trustees may, if they think 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 13(5) of the Pension Schemes Act (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 Trustees 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 as a member of the Assembly,

the Trustees may direct that all or any part of the surviving spouse's pension, as they think fit, shall not be payable.

Pensions for children

K2. (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-eighths of the basic or prospective pension or pensions of the deceased; or

(b) where the deceased left no surviving spouse or 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 Trustees 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 Trustees 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;

(b) his adopted child; or

(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

Death in service of participating member

K3. (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 Assembly and had by virtue of article J1 been entitled to receive a pension under article F1 as from the time when he so ceased.

Enhancement of initial surviving spouses' pensions

K4. (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 Trustees 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

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 his salary as a member at the rate in force at the date of his death.

(8) 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).

Meaning of "basic or prospective pension or pensions"

K5. In this Scheme "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 sub-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 F4, which he would have been entitled to receive under article F2, if immediately before his death he had fulfilled the conditions specified in paragraphs (a) and (b) of article F1;

(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; but 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 Assembly immediately before his death and he had then fulfilled the conditions specified in paragraphs (a) and (b) of article F1;

(ii) where the deceased was a participating office holder, the annual amount of the pension, calculated in accordance with article F4, which he would have been entitled to receive under article F2 if immediately before his death he had fulfilled the conditions specified in paragraphs (a) and (b) of article F1.

PART L

DEATH GRATUITIES

Gratuity on death in service

L1. (1) Where a participant has died the Trustees may, if they think 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 personal representatives.

(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 Trustees shall treat a nomination made for the purposes of this article 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) the Trustees are 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 Trustees; and such a notice shall be in such form as the Trustees 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 made,

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

(7) In paragraph (6) "salary" means

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

(b) in the case of a participant who is both a participating member and a participating office-holder, his salary as a member and his office-holder's salary.

Gratuity on death after retirement

L2. (1) Where a pensioner dies and no pension in respect of him is payable under article K1 or K2, the Trustees may, if they think fit, but subject to paragraph (2), grant to his personal representatives a gratuity under this article.

(2) The Trustees 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 Trustees could have granted to his personal representatives 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).

PART M

FIVE YEAR GUARANTEE

Entitlement

M1. (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.

Guarantees for surviving spouses

M2. (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 Trustees 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 personal representatives 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 Trustees 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 article 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 earlier of

(a) 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 Trustees may determine, being no later than the date before that on which the child reaches the age of 22; and

(b) the end of the pensioner member's five year period.

Guarantees where children but no spouse survive

M3. (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 personal representatives 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 Trustees 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;

Guarantees where no survivors

M4. (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 personal representatives 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.

Remarriage or cohabitation of surviving spouse

M5. (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 Trustees direct that the surviving spouse's pension be paid or restored under article K1(3) or (4),

the Trustees 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 Trustees thinks fit.

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

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

M6. (1) If

(a) a sum has been paid to the personal representatives of the surviving spouse of a deceased pensioner member under article M2(4) or to the personal representatives 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 Trustees may pay a further sum to the said personal representatives 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.

Deceased pensioner office holders

M7. (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 office 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 earlier of

(a) 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 Trustees may determine, being no later than the date before that on which the child reaches the age of 22; and

(b) 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 J2).

PART N

REFUNDS

Refund to contributor

N1. (1) Subject to paragraphs (3) and (5), contributions paid by a person and not previously refunded to him shall be refunded to him by the Trustees, with interest from the dates on which the contributions were paid respectively, if he requests the Trustees to refund the contribution 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 participating member is less than two years; and

(3) 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) 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 Trustees so allow,

repay to the Trustees the sum so paid to him, with interest from the date on which it was paid to him; but in any tax year the amount of the repayment together with

(i) the contributions made by him under article D1; and

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

(iii) any other additional voluntary contributions,

shall not exceed the smaller of 15% of his salary as a member (or, as the case may be, his office holder's salary and his salary as a member) and 15% of the permitted maximum; and any sum to be paid to the Trustees under this paragraph may, if the Trustees so allow, be paid by instalments over such period, not exceeding three years, as the Trustees think fit.

(4) Any amount (whether of principal or interest) paid by the participant to the Trustees under paragraph (3) 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.

(5) The Trustees shall deduct from the amount of any contributions which may be repaid to a person in accordance with this article the amount certified under section 59(1)(d) of the Pension Schemes Act in respect of that person.

(6) For the purpose of calculating a person's actual period of reckonable service as a participating member or office-holder, 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 Trustees.

Refund after death

N2. 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 no gratuity under Part L is payable in respect of him,

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

Deduction of tax from refunds of contributions

N3. On making any repayment of contributions (including interest on contributions) under article N1, the Trustees shall be entitled to deduct from the repayment any tax to which they may become chargeable under section 598(2) of the Taxes Act 1988 (charge to tax: repayment of employee's contributions).

PART P

TRANSFERS

Transfers to other pension schemes

P1. (1) At the request of any person who

(a) has been a participant but has ceased to be a member of the Assembly; and

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

the Trustees may 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 91(2) of the Pension Schemes Act.

(3) There shall be deducted from any transfer payment made under paragraph (1) in pursuance of a request from any person

(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 (3)(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 (3)(a) is deducted, if the Trustees think fit, that amount may be used in preserving the liability mentioned in paragraph (4)(b) in the Fund, otherwise it may be used in paying the contributions equivalent premium.

(6) A person may request the Trustees 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.

(7) In this article "contracted-out rights", in relation to a participant, mean his section 5(2B) rights, as defined in regulation 1(2) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996.

Transfers to other pension schemes after opt-out

P2. (1) At the request of any person who

(a) is an opted-out member; and

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

the Trustees shall pay into or for the purpose of any one or more than one scheme or annuity specified in article P1(2) a sum or sums representing the transfer value of that person's accrued pension rights in the Fund.

(2) Where a transfer value has been paid under this article in respect of a person who is an opted-out member and that person subsequently ceases to be a member of the Assembly, 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 this Scheme.

(3) Article P1(3) to (5) shall apply for the purposes of this article.

Transfer to overseas pension schemes

P3. (1) At the request of any person who

(a) has been a participant but who has ceased to be a member of the Assembly; and

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

the Trustees 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 Trustees, provided that the Trustees 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 Assembly,

the Trustees 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 Trustees.

(4) In this article "overseas fund or scheme" means a fund or scheme which is established outside the United Kingdom and wholly or primarily administered outside the United Kingdom.

Effect of transfers out on reckonable service

P4. Where any sums are paid by the Trustees 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.

Certification by the Actuary

P5. 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 91(2) of the Pension Schemes Act and shall be certified by, or calculated in accordance with tables prepared by, the Actuary appointed under article S1.

Transfers from other pension schemes

P6. (1) At the request of any person who

(a) is a participating member; or

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

the Trustees may 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 statutory provision for the time being in force which authorises the transfer of pension rights.

(2) Where any sums are received by the Trustees 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 a participating member as may be determined by the Trustees; and

(b) for the purposes of articles N1 and N2, the sums so received by the Trustees, so far as in their 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 Trustees under paragraph (2)(a) shall be a period or number of years either certified by the Actuary appointed under article S1 as being appropriate in relation to the sums received by the Trustees at the request of the person in question or a period or number of years calculated, in accordance with tables prepared by that Actuary, as being appropriate in relation to those sums.

(4) A request under paragraph (1)(a) may be made to the Trustees by a person at any time before a date

(a) not more than one year after he becomes a participating member; or

(b) not more than one year after the coming into operation of this Act, whichever is the later.

PART Q

ADDED YEARS

Purchase of added years by participating members

Q1. 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.

PART R

ADDITIONAL VOLUNTARY CONTRIBUTIONS

Additional voluntary contributions by participants

R1. Schedule 6 shall have effect for the purposes of the AVC Scheme.

PART S

ACTUTahoma VALUATIONS

Appointment of an Actuary

S1. (1) The Trustees shall appoint a person to be the Actuary to the Scheme and may remove any person so appointed.

(2) A person shall not be appointed under this article unless he is

(a) the Government Actuary;

(b) a Fellow of the Institute of Actuaries who holds a current Scheme Actuary certificate issued by the Institute of Actuaries; or

(c) a Fellow of the Faculty of Actuaries who holds a current Scheme Actuary certificate issued by the Faculty of Actuaries.

ActuTahoma valuations

S2. (1) As soon as practicable after the date on which this Act comes into operation, the Actuary shall prepare a report to the Trustees on the general financial position of the Scheme as at that date or such other date, not later than three months after that date, as is agreed with the Trustees.

(2) The Actuary shall prepare a report to the Trustees on the general financial position of the Scheme as at each subsequent reporting date.

(3) In paragraph (2) "reporting date" means a date agreed with the Trustees, not being a date more than three years after the date last agreed or fixed under this article.

(4) Each report under this article shall

(a) advise on the value of the liabilities of this Scheme compared to its assets; and

(b) make a recommendation as to contributions to be paid by the Assembly under article D3.

(5) Each report under this article shall be laid before the Assembly within three months of its receipt by the Trustees.

PART T

MISCELLANEOUS AND SUPPLEMENTAL

Non-assignability of benefits

T1. Any benefit under this Scheme shall not be assignable or chargeable with debts or other liabilities.

Payments due to deceased persons

T2. (1) Where on the death of any person there is due to the deceased or his personal representatives from the Trustees a sum which (if any part of it due by way of interest is disregarded) does not exceed the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act (Northern Ireland) 1967, probate or other proof of the title of the deceased's personal representatives may be dispensed with, and the Trustees may pay the whole or any part of that sum to those personal representatives or to the person, or to or among any one or more of any persons, appearing to the Trustees to be beneficially entitled to the personal or movable estate of the deceased.

(2) Any person to whom a payment is made under paragraph (1), and not the Trustees, shall thereafter be liable to account for the amount paid to him under that paragraph.

(3) If the Trustees receive notice in writing of any claim against the estate of the deceased at any time before they have made a full payment under paragraph (1), then, except where the sum to be paid appears to them to be bona vacantia, the Trustees shall not make any, or (as the case may be) any further, payment under that paragraph to any person other than the personal representatives of the deceased until the claim is satisfied or withdrawn.

Payments due to persons suffering from mental disorder

T3. Article 30 of the Mental Health (Northern Ireland) Order 1986 (which enables the pension of a person who is incapacitated by mental disorder from managing his own affairs to be applied for the benefit of himself or his dependants instead of being paid to him) shall apply in relation to a pension payable under this Scheme as it applies to a pension payable directly out of money appropriated by Act of the Assembly.

SCHEDULE 1

NORTHERN IRELAND ASSEMBLY MEMBERS' PENSION FUND

Management of Fund

1. The Trustees may appoint such person as they think fit to acquire assets for and dispose of assets of the Fund on their behalf and in accordance only with such instructions as to investment policy as the Trustees shall from time to time determine and lay down.

2. The Trustees shall review any acquisition or disposal of the assets of the Fund by such person as may be appointed under paragraph 1 and shall do so within six months of the date of any such acquisition or disposal.

3. Upon a review pursuant to paragraph 2, the Trustees may ratify the acquisition or disposal, or may take such other action in respect of it as they think fit.

4. The Trustees may invest the assets of the Fund in any investment whatsoever and wheresoever and may from time to time vary any such investment.

Accounts

5. The Trustees shall keep proper accounts and shall prepare in respect of each financial year of the Fund statements of account in such form and in such manner as the Comptroller and Auditor-General for Northern Ireland may direct.

6. The Comptroller and Auditor General for Northern Ireland shall examine and certify every statement of account prepared under paragraph 5 and shall lay a copy of every such statement, together with his report on it, before the Assembly.

Indemnity for Trustees

7. Each Trustee shall be indemnified out of the Fund against all liabilities incurred in the performance or purported performance of his functions, except where the Trustee has acted dishonestly, in bad faith or recklessly.

8. There shall not be purchased out of the Fund any indemnity insurance covering any of the liabilities mentioned in paragraph 7 (including those where the exception applies).

SCHEDULE 2

MAXIMUM PENSIONS

1. In this Schedule

"index" at any time, means the index of retail prices published by the Office for National Statistics of the Chancellor of the Exchequer, or any successor agreed as appropriate by the Board of Inland Revenue, for the calendar month three months prior to that time;

"pensionable service" means actual service as a participant;

"retained benefits" means benefits for a participant derived from

(a) retirement benefits schemes approved or seeking approval under Chapter I of Part XIV of the Taxes Act 1988 or relevant statutory schemes as defined in section 611A of that Act, excluding benefits in respect of service;

(b) funds to which section 608 of the Taxes Act 1988 applies, excluding benefits in respect of service;

(c) retirement benefit schemes which have been accepted by the Board of Inland Revenue as "corresponding" for the purposes of section 596(2)(b) of the Taxes Act 1988, excluding benefits in respect of service;

(d) retirement annuity contracts or trust schemes approved under section 620 of the Taxes Act 1988, or personal pension schemes (other than arrangements to which only minimum contributions are paid) which related to relevant earnings from the current employment or previous employments (including periods of self employment whether alone or in partnership);

(e) transfer payments from overseas schemes held in a type of arrangement defined in subparagraph (a) or (d) excluding those in respect of service,

including such benefits which have been transferred to another scheme, whether or not in the United Kingdom, but excluding such benefits which relate to service with an unassociated employer which is concurrent with service; but

(i) if the total of the retained benefits is less than a pension of £260 those retained benefits may be disregarded; and

(ii) if the participant's earnings in the 12 months after entry to this Scheme do not exceed one quarter of the permitted maximum, benefits from those sources, other than those transferred into this Scheme, shall not be classed as retained benefits;

"service" means service as a member of the Assembly or as an office holder, and includes, where appropriate, any increase in reckonable service attributable to sums received by way of transfer value or to the purchase of added years.

2. This Schedule sets out the maximum pension payable to a person at the relevant date.

3.-(1) On retirement at any time after age 50, except before normal retirement date on grounds of incapacity, a pension of 1/60th of the multiple for each year of service (not exceeding 40 years) or, if greater, the lesser of

(a) 1/30th of the multiple for each year of service (not exceeding 20 years); and

(b) 2/3rds of the multiple minus the pension value of all retained benefits.

(2) On retirement before the normal retirement date on grounds of incapacity an immediate pension in accordance with sub-paragraph (1) on the basis of the number of years which would have counted as service had the participant remained in service to the normal retirement date.

(3) On leaving pensionable service before the normal retirement date a deferred pension

(a) for participants who remain in service, of that proportion of the amount calculated in accordance with sub-paragraph (2) that the number (not exceeding 40) of years of service completed before leaving pensionable service bears to the potential number (not exceeding 40) of years of service had the participant remained in service to the normal retirement date;

(b) for other participants the amount calculated in accordance with sub-paragraph (1),

increased by up to 3% for each complete year, or, if greater, in proportion to any increase in the index which has occurred during the period of deferment.

(4) Benefits are further restricted as necessary to ensure that the participant's total retirement benefit under this Scheme, from any free standing additional voluntary contributions scheme and from any other additional voluntary contributions does not exceed 1/30th of the permitted maximum for each year of service. For the purpose of this limit service is the aggregate of service ( not exceeding 20 years). The permitted maximum in this context is that for the year of assessment in which the benefits commence to be paid or, if earlier, are transferred out under article P1 or P2. For the purpose of calculating the total retirement benefit the pension equivalent of benefits in any form other than pension is 1/12th of its cash value.

SCHEDULE 3

PART I

COMMUTATION OF PENSIONS

1.-(1) In this Schedule

"N" means, in respect of the pension of a person, the period in years and any fraction of a year of his actual reckonable service before the relevant date or (if earlier) his 65th birthday;

"NS" means in respect of the pension of a person, the lesser of 40 years and the period in years and any fraction of a year of his prospective actual reckonable service at the relevant date;

"pension" means a pension, expressed as an annual amount, under Part F (pension entitlement), Part H (early retirement) or Part J (ill-health pensions) as the case may be; and "maximum pension" shall be construed accordingly;

"prospective actual reckonable service" means in respect of a person

(a) at a date falling before his 65th birthday, his actual reckonable service before and after that date, assuming continuous actual reckonable service by him from that date until his 65th birthday;

(b) at a date falling on or after his 65th birthday, his actual reckonable service at his 65th birthday;

"retained benefits" has the meaning given in Schedule 2;

"retained lump sum benefits" means retained benefits which are payable as single payments whether by way of commutation of accrued pension rights, refund of contributions or otherwise.

(2) Any reference in this Schedule to the beginning of a period of actual reckonable service of a person means any such beginning on his becoming a participant other than after an interval in his actual reckonable service occurring on a dissolution of the Assembly.

(3) Any reference in this Schedule to a person being or no longer being a participant shall be construed as a reference to whichever of those circumstances is applicable to the calculation of his pension.

Maximum commutation for members (including those retiring on grounds of ill-health)

2. For the purposes of article G1(4), in the case of a participant entitled to a pension under article F1

(a) who has no retained lump sum benefits and who either was a member of the Assembly on his 65th birthday or is so entitled by virtue of article J1 or J2 (ill-health pensions), the maximum commutable sum shall be the amount of

(i) the number of eightieths of the multiple, either specified in the table in Part II of this Schedule in relation to the number of complete years of his actual reckonable service or (if the period of that service includes a fraction of a year) calculated proportionately by reference to the numbers specified in that table; and

(ii) the product of three-eightieths of the multiple and any period, expressed in years and any fraction of a year, determined in respect of him under article P6(2) (transfers from other pension schemes),

subject to a maximum of the amount of 120/80ths of the multiple;

(b) who has retained lump sum benefits, but would otherwise be within sub-paragraph (a), the amount of the maximum commutable sum shall be whichever is the greater of

(i) the amount of 120/80ths of the multiple, less the amount of his retained lump sum benefits; and

(ii) the amount of the product of three-eightieths of the multiple and the aggregate, expressed in years and any fraction of a year subject to a maximum of 40 years, of his actual reckonable service and of any period determined in respect of him under article P6(2) (transfers from other pension schemes).

Maximum commutation for members on early retirement

3. For the purposes of article G1(4), in the case of a participant entitled to a pension under article H1

(a) who has no retained lump sum benefits, was no longer a member of the Assembly on his 65th birthday and is not entitled to a pension by virtue of article J1 or J2 (ill-health pensions), the amount of the maximum commutable sum, subject to a maximum of 120/80ths of the multiple, shall be whichever is the greater of

(i) the amount of the product of N/NS and the number of eightieths of the multiple, either specified in the table in Part II of this Schedule in relation to the number of complete years of his prospective actual reckonable service or (if the period of that service includes a fraction of a year) calculated proportionately by reference to the numbers specified in that table; and

(ii) the amount of the product of three-eightieths of the multiple and the period, expressed in years and any fraction of a year, of his actual reckonable service,

aggregated with the amount referred to in paragraph 2(a)(ii);

(b) who has retained lump sum benefits but would otherwise be within sub-paragraph (a), the amount of the maximum commutable sum shall be whichever is the greater of

(i) the aggregate of

(a) the amount referred to in sub-paragraph (a)(i), subject to a maximum of the product of N/NS and the amount referred to in paragraph 2(b)(i); and

(b) the amount referred to in paragraph 2(a)(ii), subject to a maximum of the amount of 120/80ths of the multiple, less his retained lump sum benefits; and

(ii) the amount referred to in paragraph 2(b)(ii).

Maximum commutation for office holders (including those retiring on grounds of ill-health)

4. For the purposes of article G1(4), in the case of a participant entitled to a pension under article F2

(a) who has no retained lump sum benefits and who either was an office holder on his 65th birthday or is so entitled by virtue of article J1 or J2 (ill-health pensions), the amount of the maximum commutable sum shall be the amount of

(i) the number of eightieths of the multiple, specified in the table in Part II of this Schedule in relation to the number of years, each beginning on 1st April, during which he had any actual reckonable service; and

subject to a maximum of the amount of 120/80ths of the multiple;

(b) who has retained lump sum benefits, but would otherwise be within sub-paragraph (a), the amount of the maximum commutable sum shall be whichever is the greater of

(i) the amount of 120/80ths of the multiple, less his retained lump sum benefits; and

(ii) the amount of the product of three-eightieths of the multiple and, subject to a maximum of 40 years, the aggregate of

(a) the number of years, each beginning on 1st April, during which he has any actual reckonable service; and

(b) the number of years (if any) determined in respect of him under article P6(2).

Maximum commutation for office holders on early retirement

5. For the purposes of article G1(4), in the case of a participant entitled to a pension under article H2

(a) who has no retained lump sum benefits, was no longer an office holder on his 65th birthday and is not entitled to a pension by virtue of article J1 or J2, the amount of the maximum commutable sum, subject to a maximum of 120/80ths of the multiple, shall be whichever is the greater of

(i) the amount of the product of N/NS and the number of eightieths of the multiple, specified in the table in Part II of this Schedule in relation to the number of years, each beginning on 1st April, during which any part of his prospective actual reckonable service falls; and

(ii) the amount of the product of three-eightieths of the multiple and the number of years, each beginning on 1st April, during which he has any actual reckonable service,

aggregated with the amount referred to in paragraph 4(a)(ii);

(b) who has retained lump sum benefits but would otherwise be within sub-paragraph (a), paragraph 3(b) shall apply in respect of him, as if set out in this paragraph.

PART II

MAXIMUM COMMUTATION OF PENSIONS

TABLE

Number of years	Number of eightieths
1	3
2	6
3	9
4	12
5	15
6	18
7	21
8	24
9	30
10	36
11	42
12	48
13	54
14	63
15	72
16	81
17	90
18	99
19	108
20 or more	120

SCHEDULE 4

PERCENTAGE ABATEMENT OF PENSION ENTITLEMENT

1. The pension to which a person is entitled by virtue of article H1 shall be abated, having regard to the person's age and the length of his qualifying period at the date of his application or, if later, such other date as may be there specified, from the date from which that pension is payable by the percentage specified in the table below.

TABLE

Qualifying period (years)
Age pension brought into payment	20 or more	19	18	17	16	15
65	0.0	0.0	0.0	0.0	0.0	0.0
64	0.0	0.0	0.0	0.0	0.0	7.0
63	0.0	0.0	0.0	0.0	7.0	13.7
62	0.0	0.0	0.0	7.0	13.7	19.9
61	0.0	0.0	7.0	13.7	19.9	25.6
60	0.0	7.0	13.7	19.9	25.6	30.8
59	7.0	13.7	19.9	25.6	30.8	35.6
58	13.7	19.9	25.6	30.8	35.6	39.9
57	19.9	25.6	30.8	35.6	39.9	43.7
56	25.6	30.8	35.6	39.9	43.7	47.0
55	30.8	35.6	39.9	43.7	47.0	50.0
54	35.6	39.9	43.7	47.0	50.0	52.8
53	39.9	43.7	47.0	50.0	52.8	55.4
52	43.7	47.0	50.0	52.8	55.4	57.7
51	47.0	50.0	52.8	55.4	57.7	59.7
50	50.0	52.8	55.4	57.7	59.7	61.8

Where the age or the qualifying period is not an exact number of years the percentage abatement shall be obtained by interpolating first for the required age and secondly for the required qualifying period.

SCHEDULE 5

PURCHASE OF ADDED YEARS

Interpretation

1. In this Schedule

"payment for the purchase of added years" means such a payment whether payable periodically or by way of a single lump sum;

"periodical contributions" means the sums payable by a participating member whose application to purchase added years other than by a single payment has been accepted by the Trustees;

"final salary" means a member's final salary as defined in article F3(2);

"single mandate member" means a participating member who is not in receipt of a salary payable 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.

Purchase of added years by periodical contributions

2.-(1) A participating member may apply in writing to the Trustees to purchase added years by periodical contributions payable until he attains the age of 65 and the Trustees shall accept his application if all the following conditions in respect of that application are satisfied:

(a) the participating member will not at his next birthday after the date of the application have attained the age of 65;

(b) the participating member has satisfied the Trustees, in whatever manner the Trustees shall require, that he is in good health;

(c) the number of added years which the participating member has applied to purchase does not exceed the maximum permitted by paragraph 8;

(d) the participating member has supplied to the Trustees such information and evidence as they may require and has indicated whether his application is made under this sub-paragraph or sub-paragraph (2); and

(e) the participating member is, at the date the Trustees receive the application, a single mandate member.

(2) A participating member may, within the period of 12 months immediately following the date when he commenced a period of service as a single mandate member, or within such longer period as the Trustees may in special circumstances allow, apply in writing to the Trustees to purchase added years by the payment of periodical contributions for a period of three or four years and the Trustees shall accept his application if, at the date when the Trustees receive the application, the participating member has not reached the age of 65 and if the conditions mentioned in sub-paragraph (1)(b), (c) and (d) are satisfied in respect of that application.

3. An application by a participating member to purchase added years shall be irrevocable on and from the date when the Trustees accept it.

4. Where an application by a participating member to purchase added years by periodical contributions is accepted by the Trustees

(a) those periodical contributions shall, subject to the provisions of paragraph 5, be payable

(i) in the case of an application under paragraph 2(1), from the date of the participating member's birthday next following the receipt by the Trustees of his application and until the participating member attains the age of 65; and

(ii) in the case of an application under paragraph 2(2), for whichever of the periods of three or four years the participating member has chosen for the payment of periodical contributions beginning on such date not later than two months from the date of acceptance of the application as the Trustees shall specify by notice in writing to the participating member;

(b) periodical contributions by a participating member for the added years shall be payable by deductions from his salary or, in the case of arrears, in such manner as the Trustees may require; and

(c) the periodical contributions payable by a participating member for the added years shall be calculated in accordance with tables prepared from time to time by the Actuary appointed under article S1.

Interrupted service

5.-(1) If a participating member dies or ceases to be a member of the Assembly because of ill-health in circumstances to which article J1 applies and he

(a) has applied to purchase added years by periodical contributions; and

(b) has been notified in writing by the Trustees that his application has been accepted,

no further periodical contributions will be payable from the day following the date of his death or from the day following the date he ceases to be a member of the Assembly, as the case may be, and any added years that he has applied to purchase by periodical contributions shall be credited in full as reckonable service as a participating member.

(2) If a participating member who has applied to purchase added years by periodical contributions and whose application has been accepted by the Trustees ceases to be a member of the Assembly in circumstances to which article J1 does not apply, or if a participating member ceases to be a single mandate member, no such periodical contributions shall be payable by him from the day following the date when he so ceases but his reckonable service as a single mandate member shall in respect of each application be increased by

where

A is the number of added years he applied to purchase by periodical contributions;

B is the period (expressed to the nearest day) during which periodical contributions have been paid;

C is the total period during which periodical contributions would have been payable in accordance with paragraph 4(a).

(3) If a member to whom sub-paragraph (2) has applied subsequently commences a further period of service as a single mandate member before he has attained the age of 65, in circumstances in which the periods together constitute an aggregate period of reckonable service as a single mandate member, then subject to sub-paragraphs (4) and (6), he may give notice to the Trustees in writing within the period of three months beginning with the date upon which he commenced the further period of service that he intends to resume payment of his periodical contributions in respect of the added years for which he was making periodical contributions in his immediately preceding period of service and such periodical contributions shall then be payable from the date when he commenced the further period of service as a participating member and shall continue until he attains the age of 65 at the rate or rates applicable during that immediately preceding period.

(4) Where a participating member who ceased to pay periodical contributions by reason only of his ceasing to serve as a member of the Assembly or as a single mandate member, but subsequently became a single mandate member again and resumed the purchase of added years by periodical contributions in accordance with sub-paragraph (3) thereafter becomes entitled to a pension under article F1, his reckonable service as a single mandate member shall be increased in accordance with sub-paragraph (2) except that C shall be read as the total period during which he would have paid periodical contributions for those added years if his service as a single mandate member had been continuous.

(5) If a participating member to whom sub-paragraph (2) has applied subsequently commences a further period of service as a single mandate member before he has attained the age of 65, in circumstances in which the periods together constitute an aggregate period of reckonable service, then subject to sub-paragraphs (4) and (6), he may, if, in consequence of his break in service as a single mandate member, there has been a reduction in the number of added years which he is able to purchase in full, with the agreement of the Trustees and, subject to the provisions of paragraphs 2(1)(b) and 8(1), apply to purchase by periodical contributions payable until he attains the age of 65 some or all of the number of added years comprised in that reduction at the rate applicable to the participating member's birthday next following the receipt by the Trustees of his application.

(6) Sub-paragraphs (3), (4) and (5) shall not apply where the application to purchase added years before the participating member ceased to be a member of the Assembly or a single mandate member was made under paragraph 2(2).

Purchase of added years by lump sum

6.-(1) Subject to sub-paragraph (2), a participating member may apply in writing to the Trustees to purchase added years by a lump sum payment.

(2) The Trustees shall accept an application to purchase added years under this paragraph if all the following conditions in respect of that application are satisfied:

(a) the participating member has not reached the age of 65;

(b) the participating member applies to the Trustees within the period of 12 months immediately following the date when he commenced a period of service as a single mandate member or within such longer period as the Trustees may in special circumstances allow;

(c) the participating member has not applied to the Trustees under article J1 for an early pension because of ill-health;

(d) the number of added years which the member applies to purchase does not exceed the maximum permitted by paragraph 8;

(e) the participating member has supplied to the Trustees such information and evidence as it may require; and

(f) the participating member is, at the date the Trustees receive the application, a single mandate member.

(3) A participating member who has applied to purchase added years under paragraph 2(2) and to whom paragraph 5(2) applies may, in respect of any such application if

(a) in consequence of his ceasing to be a member of the Assembly or a single mandate member, there has been a reduction in the number of added years which he is able to purchase in full;

(b) the conditions of sub-paragraph (2)(c), (d) and (e) are satisfied in respect of the application made under this sub-paragraph; and

(c) the application under this sub-paragraph is made within three months of his ceasing to be a participating member of the Assembly or a single mandate member,

apply in writing to the Trustees to purchase by a lump sum payment some or all of the number of added years comprised in that reduction at the rate applicable at the member's birthday next following the receipt by the Trustees of the application.

Lump sum payments

7.-(1) Any participating member who has applied to the Trustees to purchase added years by a lump sum payment shall, within the period of six months commencing on the date when his application is accepted by the Trustees, make the lump sum payment which shall be calculated by reference to a member's ordinary salary at the time when his application was received by the Trustees and in accordance with tables to be prepared from time to time by the Actuary appointed under article S1 and the amount of his reckonable service as a single mandate member shall be increased accordingly with effect from the date on which the lump sum payment is received by the Trustees.

(2) If, after an application to purchase added years by lump sum payment has been made by a participating member and accepted by the Trustees, the payment is not received by the Trustees within the period of six months mentioned in sub-paragraph (1), the application to purchase shall cease to be valid.

Limits on purchase of added years

8.-(1) Subject to sub-paragraph (2), the amount of a participating member's periodical contributions for the purchase of added years, when aggregated with his contributions as a participating member under article D1 and any other additional voluntary contributions, shall not in any tax year exceed 15% of a member's ordinary salary or, if that salary exceeds the permitted maximum, 15% of the permitted maximum.

(2) Sub-paragraph (1) shall not apply to the purchase of added years by periodical contributions payable for a period of three years in accordance with paragraph 4(a)(ii), and for the purpose of the calculation referred to in sub-paragraph (1) such periodical contributions shall be disregarded.

(3) If a participating member applies to the Trustees to purchase added years by periodical contributions, the annual amount of periodical contributions payable by him in accordance with paragraph 4(a)(i), or for a period of four years in accordance with paragraphs 2(2) and 4(a)(ii), shall not be such as to exceed, at any time during the period such periodical contributions would be so payable, the amount (if any) by which for the time being

(a) the annual amount of his periodical contributions referred to in sub-paragraph (2) (if any), aggregated with the annual amount of his contributions as a participating member under article D1 and any other additional voluntary contributions,

is less than

(b) the limit under sub-paragraph (1).

(4) Subject to sub-paragraph (1), the maximum added years that a participating member may purchase both by lump sum payment and by periodical contributions shall be calculated so that his pension under one or both of articles F1 and F2, when aggregated with the pension equivalent of any lump sum under article G1 and any pension under the AVC Scheme or any additional voluntary contributions scheme, shall not exceed whichever may be appropriate of the limits set out in Schedule 2.

Further applications to purchase added years

9. Subject to the provisions of this Schedule, the Trustees may accept more than one application from a participating member to purchase added years by the payment of periodical contributions or lump sum payments.

General

10. The provisions of this Schedule are without prejudice to any maximum pension imposed in relation to a participating member by article F5, and Schedule 2 (maximum pensions payable).

SCHEDULE 6

ADDITIONAL VOLUNTARY CONTRIBUTIONS

Interpretation

1.-(1) In this Schedule

"approved scheme" means a retirement benefits scheme approved under Chapter I of Part XIV of the Taxes Act 1988 or such other legislation as may be in force from time to time in respect of such approval;

"contributor" means a participant who is admitted to the AVC Scheme in accordance with paragraph 3(1);

"dependant" of a contributor means the contributor's spouse and any eligible child of the contributor;

"free-standing additional voluntary contribution scheme" means an additional voluntary contribution scheme which is an approved scheme to which an employer does not contribute;

"index" has the same meaning as in Schedule 2;

"maximum pension" shall be construed in accordance with Schedule 2;

"pensionable service" has the same meaning as in Schedule 2;

"personal pension scheme" means a scheme approved under Chapter IV of Part XIV of the Taxes Act 1988;

"retained benefits" has the same meaning as in Schedule 2;

"retained death benefits" means any lump sum benefits payable on the contributor's death derived from the sources set out in the definition of "retained benefits" in Schedule 2; but -

(a) if the total of retained death benefit is less than £2,500, it may be disregarded; and

(b) benefits representing a return of the contributor's own contributions plus interest thereon and benefits derived from a return of funds under retirement annuity contracts approved under section 620 of the Taxes Act 1988 or personal pension schemes may be disregarded;

"retirement benefits scheme" means a scheme within the meaning of section 611 of the Taxes Act 1988;

"service" has the same meaning as in Schedule 2.

(2) In this Schedule, "final remuneration" means the greater of

(a) the highest emoluments of a person as a member of the Assembly or as a member of the Assembly and an office holder which are assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined for any period of 12 months in the 5 years preceding the relevant date, and

(b) the yearly average of the total emoluments of a person as a member of the Assembly or as member of the Assembly and an office holder which are assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined for any 3 or more consecutive years ending not earlier than 10 years before the relevant date;

provided that

(i) where final remuneration is computed by reference to any year other than the last complete year ending on the relevant date, the contributor's remuneration (as calculated in (a) above) or total emoluments (for the purposes of (b) above) of any year may be increased in proportion to any increase in the index from the last day of that year up to the relevant date;

(ii) an early retirement pension in payment by virtue of Part H of this Scheme may not be included in final remuneration;

(iii) a contributor in receipt of a much reduced remuneration by reason of incapacity for more than 10 years up to the relevant date may calculate final remuneration under (a) or (b) above with the final remuneration calculated at the cessation of normal pay and increased in accordance with the index;

(iv) final remuneration shall not exceed the permitted maximum.

For the purposes of providing immediate benefits at the relevant date it is permitted to calculate final remuneration on the appropriate basis above using remuneration assessable to tax under Case I or II of Schedule E and upon which tax liability has not been determined. On determination of this liability final remuneration shall be recalculated. If this results in a lower final remuneration then benefits in payment shall be reduced as necessary. Where final remuneration is greater it is possible to augment the benefits in payment. Such augmentation, however, must take the form of an annuity.

Where immediate benefits are not being provided or where a transfer payment is to be made in respect of accrued pension benefits then final remuneration may only be calculated using remuneration assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined.

Administration

2.-(1) Paragraphs 5 and 6 of Schedule 1 shall have effect for the purposes of the AVC Scheme.

(2) The Trustees shall be responsible for the discharge of all duties imposed on the administrator of an AVC Scheme under Chapter I of Part XIV of the Taxes Act 1988.

(3) Any sums received by the Trustees by virtue of the AVC Scheme shall be paid into a suspense account or accounts used for the purpose of the AVC Scheme.

AVC contributors

3.-(1) Subject to sub-paragraphs (2) and (3), any participant may become a contributor to the AVC Scheme by making written application in such form as the Trustees shall require and by having such application accepted.

(2) A contributor may not make any contributions to the AVC Scheme after he has ceased to be a participant, but may make a further application under sub-paragraph (1) if he again becomes a participant.

(3) The Trustees may, with effect from such date as they may determine, close the AVC Scheme to participants who are not contributors to the AVC Scheme at that date.

Contributions

4.-(1) A contributor may make contributions to the AVC Scheme of such amount within limits imposed by the Board of Inland Revenue, at such times and in such manner as may be specified by the Trustees, with the approval of the institution with which the contributions are to be invested.

(2) A contributor's contributions to the AVC Scheme in any tax year must not exceed whichever is the smaller of

(a) such amount determined by the Trustees on a basis acceptable to the Board of Inland Revenue as is likely to provide benefits equal to the limits set out in paragraph 10; or

(b) that percentage of the contributor's total salary which, together with any other contributions made by the contributor to any scheme (including this Scheme) providing benefits in respect of service, will bring the total of contributions to 15% of that salary, or where his annual salary exceeds the permitted maximum, to 15% of that permitted maximum.

(3) In sub-paragraph (2)(b), a contributor's total salary means

(a) in respect of a contributor who is a participating member and not a participating office holder, his salary as a member;

(b) in respect of a contributor who is both a participating member and a participating office holder, his salary as a member and his office holder's salary.

(4) A transfer value to the AVC Scheme shall only be accepted by the Trustees if it is from either

(a) a free-standing additional voluntary contributions scheme, which is not an appropriate personal pension scheme which satisfies the requirements prescribed under sections 5(3) and (5), 22 and 27(2) of the Pension Schemes Act ; or

(b) an additional voluntary scheme which is an approved scheme,

and, in either case

(i) it is certified by the administrator of that scheme to represent only the realisable value of the contributor's own contributions to that scheme; and

(ii) acceptance will not cause the contributor's benefits to exceed the limits set out in paragraph 10.

Investment of contributions

5.-(1) Each contributor's contributions shall be invested in such investments as the Trustees may from time to time determine, save that such contributions may not be used for the purpose of making any loan whatsoever.

(2) Without prejudice to the generality of sub-paragraph (1), the Trustees, in accordance with a contributor's instructions, may invest the contributor's contributions

(a) in an insurance policy or policies taken out with an insurance company, being a United Kingdom office or branch of an insurance company to which Part II of the Insurance Companies Act 1982 applies and which is authorised under section 3 or 4 of that Act to carry on ordinary long-term insurance business; or

(b) in a deposit account or accounts with a building society authorised by virtue of Part II of the Building Societies Act 1986.

(3) The Trustees shall, as soon as practicable, invest the contributions, with the institution and in the manner chosen by the contributor, in order to provide benefits which fall within the scope of paragraph 6.

(4) The investments made in respect of a contributor with an institution may be realised and reinvested at the request of the contributor with that or any other institution determined by the Trustees, in such amounts, at such times and in such manner as may be specified by the Trustees, with the approval of the institutions concerned.

Benefits which may be provided

6.-(1) Subject to the limits set out in paragraph 10, a contributor shall be entitled to whatever benefits are secured by the contributions paid by him, and by any transfer value accepted under paragraph 4(4).

(2) The benefits normally permitted are

(a) a lump sum payable on the death of the contributor;

(b) a return of the contributor's contributions in respect of retirement benefits to the extent of the total realisable value of the investments made by the Trustees with the contributions made by the contributor, payable either on the death of the contributor before retirement or in the circumstances referred to in paragraph 9;

(c) on the death of the contributor before retirement, a pension payable to the contributor's spouse throughout the remainder of his or her lifetime;

(d) on the death of the contributor after retirement, a pension payable to one or more dependants throughout the remainder of their lifetime (save that, in the case of a child not falling within article K2(5)(c), the pension shall only be payable until the child reaches the age of 17 or, if later, until the child ceases to be within his period of full-time education or training as defined in article M6(2); and

(e) a pension payable to the contributor from the contributor's retirement throughout the remainder of his or her lifetime, under which

(i) payments may be guaranteed to be payable for up to 10 years after retirement in any event; or

(ii) payments may be guaranteed to be payable for up to 5 years after retirement with any balance in respect of any period between death and the expiry of the period of 5 years being paid in one lump sum on death.

(3) Pensions may be level in payment, increase at a fixed rate, vary in line with the index or with the value of units in a unit trust, managed fund or insurance company fund or be provided on a with-profits basis.

(4) In the case of benefits payable at or after a contributor's retirement, the choice of which of the above types of benefit shall be payable shall be made by the contributor at retirement.

Payment of lump sums on death

7.-(1) Any lump sum payable on a contributor's death shall be paid or applied (by way of settlement or otherwise) within 2 years of the contributor's death by the Trustees to or for the benefit of any one or more of

(a) any individual nominated by the contributor in writing;

(b) the contributor's dependants, children, parents, grandparents and descendants of such persons; and

(2) The decision as to which individual or individuals should receive part or all of the lump sum and how much each shall receive shall be at the discretion of the Trustees.

(3) Any part of the lump sum which has not been so paid or applied within 2 years of the contributor's death shall be paid to the contributor's personal representatives.

(4) For the purposes of this paragraph, a lump sum includes a refund of contributions.

Purchase of pensions

8.-(1) On or before the date of his retirement, the contributor shall specify in writing to the Trustees the pension or pensions which are to be purchased on his behalf or on behalf of his dependants.

(2) The Trustees shall purchase the pension or pensions specified under sub-paragraph (1) from such insurer or friendly society as the Trustees may determine from time to time or as the contributor may in writing specify, being either

(a) a company which is a United Kingdom branch or office of an insurance company to which Part II of the Insurance Companies Act 1982 applies and which is authorised under section 3 or 4 of that Act to carry on ordinary long-term insurance business; or

(b) a friendly society authorised to carry on business under Part IV of the Friendly Societies Act 1992.

(3) The purchase by the Trustees of any pension under sub-paragraph (2) on behalf of a contributor or his dependants shall have the effect of discharging any liability of the Trustees to pay that pension to or in respect of that contributor.

Leaving the AVC Scheme

9.-(1) A contributor may cease to participate in the AVC Scheme at any time before benefits provided under paragraph 6 are taken by requiring the Trustees (in such manner as may, subject to sections 91 and 92 of the Pension Schemes Act, be specified by the Trustees) to do one or more of the following as appropriate:

(a) to transfer the value of the contributor's accrued benefits to an approved scheme of a subsequent employer, or to a personal pension scheme subject, in each case, to that scheme being willing to accept the transfer value and meeting the prescribed requirements referred to in section 91(2) of the Pension Schemes Act (and in each case the Trustees shall certify to the receiving scheme that the whole of the transfer value represents the realisable value of the contributor's contributions and that all of it must be used to secure a non-commutable pension) and after they have made such a transfer the Trustees will be discharged from any obligation to provide any benefits to which the transfer value relates;

(b) to use the value of the contributor's accrued benefits to purchase one or more insurance policies of the type described in section 91(2)(c) of the Pension Schemes Act;

(c) if the contributor's aggregate period of reckonable service as a member, including any service whilst a member of a previous employer's pension scheme from which a transfer value has been paid to this Scheme (including a transfer value to the AVC Scheme), totals less than 2 years, to pay the contributor the value of his accrued benefits after deduction of any tax payable by the Trustees.

(2) For the purposes of this paragraph, the value of a contributor's accrued benefits shall be the total realisable value of the investments made by the Trustees with the contributions paid by the contributor.

Maximum benefits

10.-(1) The lump sum benefit (exclusive of any refund of the contributor's own contributions and any transfer value received by the AVC Scheme in respect of the contributor plus interest if any) payable under the AVC Scheme on the death of a contributor while in service or (having left service with a deferred pension) before the commencement of the contributor's pension shall not, when aggregated with all other like benefits under this Scheme, personal pension schemes, free-standing additional voluntary contribution schemes and retained death benefits, exceed whichever is appropriate of

(a) 4 times final remuneration at the date of death; or

(b) 4 times final remuneration at the date of leaving service,

and any remuneration in excess of the permitted maximum shall be disregarded.

(2) A contributor's pension payable under the AVC Scheme, when aggregated with any other pensions and the pension equivalent of any lump sums under the rest of this Scheme and any pension under a free-standing additional voluntary contributions scheme in respect of service, shall not exceed such maximum pension as it calculated in respect of that contributor in accordance with Schedule 2.

(3) Any pensions for dependants payable under the AVC Scheme, when aggregated with any pension payable to dependants under Part K or under a free-standing additional voluntary contributions scheme, shall not exceed an amount equal to two-thirds of the maximum pension

(a) payable to the contributor at the date of the contributor's death (including any pension increases given under sub-paragraph (4)), or

(b) being a deferred benefit, payable to the contributor at normal retirement date, or

(c) prospectively payable to the contributor who dies in service had the contributor remained in service up to normal retirement date at the rate of pay in force immediately before the contributor's death, or

(d) prospectively payable to the contributor who dies in service after normal retirement date before taking any benefit under the rest of this Scheme on the basis that the contributor had retired on the day before he died,

and, in whichever case applies, the maximum pension shall be calculated as if the contributor had no retained benefits.

(4) Where a contributor chooses as a benefit an index-linked pension, the maximum amount of the pension ascertained in accordance with sub-paragraph (2) or (3) may be increased by up to 3% for each complete year, or, if greater, in proportion to any increase in the index which has occurred since payment of the pension commenced.

Surplus monies

11. The Trustees shall comply with the requirements of regulation 5 (restriction on discretion to approve - other schemes) of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993 and, where the AVC Scheme is the leading scheme in relation to a contributor, with the requirements of regulation 6 (calculation of surplus funds) of those Regulations so far as they concern main schemes.

Surrender at the request of the Trustees

12.-(1) The Trustees may require an institution with which contributions have been invested under the AVC Scheme to surrender the whole or part of the value of such contributions.

(2) If, pursuant to sub-paragraph (1), the Trustees require a surrender of the whole or part of the value of contributions, they shall reinvest such contributions in accordance with paragraph 5.

(3) If, on or before the date when the Trustees exercise their right under sub-paragraph (1), a request has been received from a contributor under paragraph 5(4), the Trustees may give effect to such request.

Taxation

13. Whenever the Trustees as administrator of the AVC Scheme are liable for any tax in respect of any payment made to any person under this Schedule, they may deduct sums equal in total to such tax from any payments made to such person in such manner as they consider proper.

Expenses

14. The expenses of establishing and administering the AVC Scheme shall be borne by the Fund.