Citation, commencement, interpretation and application

1. —(1) These Regulations may be cited as the Parliamentary Pensions (Amendment) Regulations 2009.

(2) These Regulations come into force on 1st September 2009.

(3) The definition of “the Principal Regulations” in paragraph (5), and regulation 14 have effect from 6th April 2006.

(4) Regulation 11 has effect from 1st October 2008.

(5) In these Regulations—

“office holder” and “participant” have the meanings set out in regulation A2( 3 ) of the Principal Regulations; and

“the Principal Regulations” means the Parliamentary Pensions (Consolidation and Amendment) Regulations 1993( 4 ).

(6) The amendments to the Principal Regulations provided for in regulations 2 to 10, 13 and 15 have effect only in relation to a person who is in service as a Member of the House of Commons or as an office holder on or after 1st September 2009.

(7) The amendments to the Principal Regulations provided for in regulations 2 to 4, 7 to 10, 13 and 15 do not have effect in relation to a person (“P”) who—

(a) applies for an ill-health pension in accordance with regulation J1(3) of the Principal Regulations and receives notice from the Trustees before 31st May 2009 notifying P that P is entitled to receive an ill-health pension payable from the time specified in P’s application, and

(b) ceases to be a participant at or before the time specified in P’s application.

Duration of pensions

2. In paragraph (1) of regulation F8 of the Principal Regulations after “Subject to the following provisions of this regulation” insert “and regulation J6”.

Ill-health pensions based on service as a participating Member

3. —(1) Regulation J1 of the Principal Regulations is amended as follows.

(2) For paragraph (2) substitute—

“ (2) If on an application under this regulation—

(a) the applicant (“A”) satisfies paragraph (1)(a);

(b) A has certified to the Trustees in such form as the Trustees require that A does not intend—

(i) to seek re-election to the House of Commons;

(ii) to accept any future offer of a qualifying office; or

(iii) to accept membership of the House of Lords; and

(c) the Trustees are satisfied that—

(i) A’s ceasing to be a participating Member as mentioned in paragraph (1)(a) is a direct consequence of A’s ill-health;

(ii) A’s ill-health is such as would permanently prevent A from performing adequately the duties of a Member of the House of Commons; and

(iii) A’s ill-health is such as would permanently prevent A from performing any gainful work,

A shall, subject to regulation J6, be entitled to receive an upper-tier ill-health pension as from the material time, payable under regulation F1 and calculated in accordance with paragraph (4). ” .

(3) After paragraph (2) insert—

“ (2A) If on an application under this regulation—

(a) the applicant (“A”)—

(i) satisfies the requirements of paragraph (1)(b) but not paragraph (1)(a); or

(ii) satisfies the requirements of paragraph (1)(a) but not paragraph (2);

(b) A has certified to the Trustees in such form as the Trustees require that A does not intend—

(i) to seek re-election to the House of Commons; or

(ii) to accept any future offer of a qualifying office; and

(c) the Trustees are satisfied that—

(i) A’s ceasing to be a participating Member as mentioned in paragraph (1)(a) or ceasing to be a participating office holder as mentioned in paragraph (1)(b) is a direct consequence of A’s ill-health; and

(ii) A’s ill-health is such as would permanently prevent A from performing adequately the duties of a Member of the House of Commons,

A shall, subject to regulation J6, be entitled to receive a lower-tier ill-health pension as from the material time, payable under regulation F1 and calculated in accordance with paragraph (4A). ” .

(4) For paragraph (3) substitute—

“ (3) Where a participant (“P”) would become entitled to make an application under paragraph (1) if, because of ill-health, P were to cease as mentioned in sub-paragraph (a) or (b) of paragraph (1) at a particular time in the future, P may make an application under paragraph (1) before so ceasing, specifying in the application the time when P proposes so to cease.

(3A) Where—

(a) a participant (“P”) makes an application in accordance with paragraph (3); and

(b) the Trustees are satisfied that if, because of ill-health, P ceases as mentioned in sub-paragraph (a) or (b) of paragraph (1) at the time specified in the application, P will be entitled under paragraph (2) or (2A) to receive a pension under regulation F1 as from that time,

the Trustees must give P notice in writing to that effect, specifying under which of paragraphs (2) or (2A) entitlement will arise. ” .

(5) For paragraph (4) substitute—

“ (4) The annual amount of an upper tier ill-health pension payable under regulation F1 to a person (“P”) by virtue of paragraph (2) shall (subject to Part G (Commutation)) be calculated in accordance with regulation F2; but for the purposes of that calculation P’s actual period of reckonable service as a participating Member shall be increased by a period equal to the period between P’s ceasing as mentioned in sub-paragraph (a) of paragraph (1) and the time when P would attain the age of sixty-five years.

(4A) The annual amount of a lower tier ill-health pension payable under regulation F1 to a person by virtue of paragraph (2A) shall (subject to Part G (Commutation)) be calculated in accordance with regulation F2. ” .

(6) In paragraph (5)(b) for “for the purpose of that calculation” substitute “for the purpose of calculating an upper tier ill-health pension payable by virtue of paragraph (2)”.

(7) In paragraph (6)(a) and (b), after “if, but only if, he” in each place where it occurs insert “makes an application under this regulation and”.

Ill-health pensions based on service as an office holder

4. —(1) Regulation J2 of the Principal Regulations is amended as follows.

(2) For sub-paragraph (1)(a) substitute—

“ (a) ceases to be a participating Member and a participating office holder before attaining the age of sixty-five years; or ” .

(3) For paragraph (2) substitute—

“ (2) If on an application under this regulation—

(a) the applicant (“A”) has certified to the Trustees in such form as the Trustees require that A does not intend—

(i) to seek election or re-election to the House of Commons; or

(ii) to accept any future offer of a qualifying office; and

(b) the Trustees are satisfied that—

(i) A’s ceasing to be a participating Member as mentioned in paragraph (1)(a) or ceasing to be a participating office holder as mentioned in paragraph (1)(b) is a direct consequence of A’s ill-health; and

(ii) A’s ill-health is such as would permanently prevent A from performing adequately the duties of a Member of the House of Commons,

A shall, subject to regulation J6, be entitled to receive a lower tier ill-health pension as from the material time, payable under regulation F3 and calculated in accordance with paragraph (4). ” .

(4) For paragraph (3) substitute—

“ (3) Where a participant (“P”) would become entitled to make an application under paragraph (1) if, because of ill-health, P were to cease as mentioned in sub-paragraph (a) or (b) of paragraph (1) at a particular time in the future, P may make an application under paragraph (1) before so ceasing, specifying in the application the time when P proposes so to cease.

(3A) Where—

(a) a participant (“P”) makes an application in accordance with paragraph (3); and

(b) the Trustees are satisfied that if, because of ill-health, P ceases as mentioned in sub-paragraph (a) or (b) of paragraph (1) at the time specified in the application, P will be entitled under paragraph (2) to receive a pension under regulation F3 as from that time,

the Trustees must give P notice in writing to that effect. ” .

(5) For paragraph (4) substitute—

“ (4) The annual amount of a lower tier ill-health pension payable under regulation F3 by virtue of this regulation shall (subject to Part G (Commutation)) be calculated in accordance with regulation F4. ” .

Ill-health pensions for former Members

5. —(1) Regulation J3 of the Principal Regulations is amended as follows.

(2) In paragraph (1)—

(a) for “retired from gainful work” substitute “permanently ceased to perform gainful work”;

(b) for “an early pension” substitute “early payment of his pension”; and

(c) for “he so retired” substitute “he so ceased to perform gainful work”.

(3) For paragraph (2) substitute—

“ (2) If on an application under this regulation—

(a) the applicant (“A”) has certified to the Trustees in such form as the Trustees require that A does not intend—

(i) to seek election to the House of Commons; or

(ii) to accept any future offer of a qualifying office; and

(b) the Trustees are satisfied that—

(i) A has permanently ceased to perform gainful work as a direct consequence of A’s ill-health; and

(ii) A’s ill-health is such as would permanently prevent A from performing adequately the duties of a Member of the House of Commons,

A shall, subject to regulation J6, be entitled to receive a pension under regulation F1 as from the date on which the Trustees are satisfied that A meets the conditions in paragraphs (1) and (2) of this regulation. ” .

(4) Omit paragraph (4).

Ill-health pensions for former office holders

6. In regulation J4 of the Principal Regulations for “retired from gainful work” substitute “permanently ceased to perform gainful work”.

Requirement for incapacity for occupation

7. Omit regulation J4A( 5 ) of the Principal Regulations.

Additional provisions relating to ill-health pensions

8. For regulation J5( 6 ) of the Principal Regulations substitute—

“ Additional provisions relating to ill-health pensions

J5. —(1) In connection with an application made by a person (“A”) under this Part, the Trustees must consider—

(a) evidence from a registered medical practitioner that, because of physical or mental impairment—

(i) A is incapable of carrying on A’s occupation; or

(ii) A is incapable of performing any gainful work,

and that A’s incapacity is likely to be permanent; and

(b) such other evidence as the Trustees consider appropriate.

(2) The Trustees may require A to undergo a medical examination by a registered medical practitioner nominated by them.

(3) Where the Trustees require A to undergo a medical examination, the Trustees may—

(a) determine whether the fees for that examination must be paid by A or by the Trustees; and

(b) refuse an application if the applicant refuses to undergo the medical examination.

(4) For the purposes of an application under this Part, the Trustees and the registered medical practitioner, when considering A’s degree of incapacity, may take into account—

(a) the duties of a Member of Parliament as specified by the Trustees; and

(b) where A is a participating Member, the location of A’s constituency.

(5) In considering whether A is incapable of carrying on A’s occupation or of performing any gainful work, the Trustees may take account of the views of any registered medical practitioner nominated by them as to the impact of any medical treatment that A could undergo. ” .

Ill-health definitions and review of ill-health pensions

9. After regulation J5 of the Principal Regulations insert—

“ Ill-health definitions

J5A. In this Part—

“gainful work” means—

and the Trustees may treat voluntary or unpaid work as gainful work if they consider that the duties of that work are equivalent to employment for which the person concerned could obtain an income; and

“permanent” in relation to a situation or condition means that the situation or condition will continue until the applicant attains the age of sixty-five years.

Review of ill-health pensions

J6. —(1) The Trustees may, at such intervals as the Trustees determine, review the continued payment of an ill-health pension in payment to a person (“P”) by virtue of this Part and may reduce that pension to the extent they consider appropriate or terminate that pension if—

(a) in the case of a pension payable by virtue of regulation J1(2), J3(2) or J4 the Trustees are no longer satisfied that P’s ill-health is such as would permanently prevent P from—

(i) performing adequately the duties of a Member of the House of Commons; or

(ii) performing any gainful work, or

(b) in the case of a pension payable by virtue of regulation J1(2A) or J2(2), the Trustees are no longer satisfied that P’s ill-health is such as would permanently prevent P from performing adequately the duties of a Member of the House of Commons.

(2) A review may not be carried out under this regulation on or after the date on which P attains the age of sixty-five years.

(3) Where a pension is reduced or terminated under this regulation, the pension payable to P with effect from the date when the reduction or termination applies shall, subject to paragraphs (5) and (7) and regulation F7, be the reduced pension (if any) that the Trustees determine should continue to be payable under paragraph (1).

(4) Paragraph (5) applies where—

(a) a pension has been reduced or terminated under this regulation, and

(b) P subsequently fulfils the conditions for payment of a pension by virtue of regulation H1 or H2, including the requirement to apply in writing to the Trustees.

(5) Where this paragraph applies, the amount of pension payable to P from the date of P’s application under regulation H1 or H2 or, if later, such other date as may be specified in the application must be no less than an amount—

(a) calculated in accordance with regulation H1 or H2, instead of in accordance with this Part; and

(b) reduced, in such manner as the Government Actuary determines, to take account of any lump sum received by P under Part G at the time of P’s retirement under this Part.

(6) Paragraph (7) applies where—

(a) a pension has been reduced or terminated under this regulation,

(b) paragraph (5) does not apply, and

(c) P subsequently fulfils the conditions for payment of a pension under regulation F1 or F3.

(7) Where this paragraph applies, the amount of pension payable to P from the date on which P fulfils the conditions in regulation F1 or F3 must be no less than an amount—

(a) calculated in accordance with regulation F2 or F4, instead of in accordance with this Part; and

(b) reduced, in such manner as the Government Actuary determines, to take account of any lump sum received by P under Part G at the time of P’s retirement under this Part. ” .

Death in service of participating Member

10. In paragraph (2) of regulation K4( 7 ) of the Principal Regulations for “had by virtue of regulation J1 been entitled to receive a pension” substitute “had by virtue of regulation J1(2) been entitled to receive an upper tier ill-health pension”.

Calculating amounts of transfer value payments

11. —(1) Regulation P5( 8 ) of the Principal Regulations is amended as follows.

(2) In paragraph (1) for “accordance with guidance and tables provided by the Government Actuary to the Trustees for use at the guarantee date” substitute “a manner determined by the Trustees, after consultation with the Government Actuary”.

(3) In paragraph (2) for “preparing those tables the Government Actuary must use such factors as he considers appropriate,” substitute “determining the manner in which the guaranteed cash equivalent transfer value payment is to be calculated, the Trustees must use such assumptions as they consider appropriate, having taken advice from the Government Actuary and”.

Procedure for applying for acceptance of a transfer value payment from another scheme

12. In regulation P8( 9 ) of the Principal Regulations for paragraph (2) substitute—

“ (2) An applicant must not make an application relating to—

(a) a transfer value payment from a personal pension scheme, or

(b) unless paragraph (3) applies, a transfer value payment relating only to voluntary contribution rights,

if the applicant has paid contributions to the personal pension scheme or towards those voluntary contribution rights after the relevant date. ” .

Effect of option to cease contributions by Members with enhanced protection

13. For paragraph (3)(b) of regulation T3( 10 ) of the Principal Regulations substitute—

“ (b) if a pension becomes payable to the individual under regulation F1 by virtue of regulation J1 (ill-health pensions based on service as a participating Member) the pension will be calculated as if it were a lower tier ill-health pension under rule J1(2A) and no enhancement will apply to the individual’s reckonable service. ” .

Maximum pensions

14. In the definition of “retained benefits” in paragraph 1 of Schedule 2( 11 ) of the Principal Regulations after “are derived from a registered pension scheme” insert “, excluding benefits in respect of service or which relate to earnings in respect of service”.

Purchase of added years in cases of interrupted service

15. In Schedule 6( 12 ) of the Principal Regulations for “regulation J1” in each place where it occurs substitute “regulation J1(2)”.

Review of transitional ill-health pensions

16. —(1) This regulation applies to an ill-health pension payable to a person (“P”) who—

(a) applies for the pension in accordance with regulation J1(3) of the Principal Regulations and receives notice from the Trustees before 31st May 2009 notifying P that P is entitled to receive the pension from the time specified in P’s application, and

(b) ceases to be a participant at or before the time specified in P’s application.

(2) The Trustees may, at such intervals as the Trustees determine, review the continued payment of the pension and may reduce the pension to the extent they consider appropriate or terminate the pension if the Trustees are no longer satisfied that P’s ill-health is such as would permanently prevent P from performing adequately the duties of a Member of the House of Commons.

(3) A review may not be carried out under this regulation on or after the date on which P attains the age of sixty-five years.

(4) Where a pension is reduced or terminated under this regulation, the pension payable to P with effect from the date when the reduction or termination applies shall, subject to paragraphs (6) and (8) and regulation F7( 13 ) of the Principal Regulations (guaranteed minimum pensions), be the reduced pension (if any) that the Trustees determine should continue to be payable under paragraph (2).

(5) Paragraph (6) applies where—

(a) a pension has been reduced or terminated under this regulation, and

(b) P subsequently fulfils the conditions for payment of a pension by virtue of regulation H1( 14 ) or H2( 15 ) of the Principal Regulations (early retirement for Members of the House of Commons or office holders who have been Members), including the requirement to apply in writing to the Trustees.

(6) Where this paragraph applies, the amount of pension payable to P from the date of P’s application under regulation H1 or H2 of the Principal Regulations or, if later, such other date as may be specified in the application must be no less than an amount—

(a) calculated in accordance with regulation H1 or H2 of the Principal Regulations, and

(b) reduced in such manner as the Government Actuary determines, to take account of any lump sum received by P under Part G( 16 ) of the Principal Regulations (commutation) at the time of P’s retirement under Part J( 17 ) of the Principal Regulations (ill-health pensions).

(7) Paragraph (8) applies where—

(a) a pension has been reduced or terminated under this regulation,

(b) paragraph (6) does not apply, and

(c) P subsequently fulfils the conditions for payment of a pension under regulation F1 or F3 of the Principal Regulations (entitlement of pensioner Members and office holders).

(8) Where this paragraph applies, the amount of pension payable to P from the date on which P fulfils the conditions in regulation F1 or F3 of the Principal Regulations must be no less than an amount—

(a) calculated in accordance with regulation F2( 18 ) or F4( 19 ) of the Principal Regulations (amount payable to pensioner Members and office holders), and

(b) reduced, in such manner as the Government Actuary determines, to take account of any lump sum received by P under Part G of the Principal Regulations at the time of P’s retirement under Part J of the Principal Regulations.