Reporter 24/11/99: Contributory Pension Scheme: Notice

Contributory Pension Scheme: Notice

22 November 1999

The Council give notice that, subject to the approval of Grace 2, p. 185, they have approved amendments of the Rules of the Contributory Pension Scheme in order to give effect to changes in the Scheme as set out below. These changes have been recommended by the Managing Committee of the Scheme.

The purposes of the amendments are as follows:

(i)	to amend the conditions for admission to the Scheme so that (a) the latest age at which eligible employees can join is raised to 63 for both men and women; (b) there is no longer an hours threshold for part-time employees; (c) all members must be employed for a fixed period of at least one year;
(ii)	to extend the right to an undiscounted early retirement pension from age 60 in respect of all service to both men and women and for a deferred pensioner to draw his or her pension late, between ages 65 and 75;
(iii)	to require the University to contribute to at least the minimum level set by the Schedule of Contributions;
(iv)	to remove the forty-year cap for pensionable service and to calculate pension to the nearest completed day rather than the nearest completed year;
(v)	to define final pensionable salary to allow the highest consecutive three-year average ending in the last ten years before retirement to be used if this gives a higher value than any single pensionable salary in the last five years;
(vi)	to provide a larger lump sum of four times salary with a refund of ordinary contributions and AVCs in addition as the death in service lump sum;
(vii)	to improve the spouse's and children's pensions on death in service, and to provide a funeral grant of £2,500;
(viii)	to permit deferred pensions for early leavers to be revalued after each complete twelve-month period in line with the RPI, capped at 12 per cent;
(ix)	to increase pensions in line with the RPI, capped at 12 per cent, subject to the Managing Committee being able to award the maximum rate of increase allowed by Revenue practice (currently 3 per cent a year) if the RPI falls below that figure;
(x)	to strengthen the definition of incapacity so that a member only qualifies if he or she becomes totally incapable of carrying out work of any kind, and to allow the trustees to vary, suspend, or terminate this pension if the pensioner regains health either in whole or in part, before the age of 65;
(xi)	miscellaneous minor amendments required to reflect current legislation or to confirm established administrative practice in the Scheme.

These changes will affect active members from the date the new rules are adopted. Former members and pensioner members will continue to be subject to the existing Regulations, subject to the various changes that have been made since February 1991.

Copies of the Rules of the Contributory Pension Scheme incorporating the amendments are available from the Pensions Office, Finance Division, 10 Peas Hill, Cambridge CB2 3PN. It is also intended to publish the Rules on the WWW in due course.

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