2.2.6 Social Security Act 1985
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Revaluation of preserved pension in excess of the GMP, was introduced
by this Act.
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With effect from 1 January 1986, pension benefits in excess of
the GMP, on leaving service after that date have to be revalued
by the lesser of 5% pa and the Retail Prices Index, from the date
of leaving to retirement date. This provision applies only to benefits
accrued in respect of post 1 January 1985 service. This has been
extended by the Social Security Act 1990 to cover all service for
post 1 January 1991 leavers.
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Members leaving after 1 January 1986 with preserved pensions have
a right to transfer out.
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With transfers, where the receiving scheme is unable to accept
the member's GMP liability, it used to be possible to buy the member
back, into the State scheme by a payment of a Transfer Premium.
However from 6th April 1997, no transfer premiums are allowed (except
for the Contributions Equivalent Premium in cases of less than two
years service and a refund being taken)
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