Reporter 17/7/02: Contributory Pension Scheme: Notice

Contributory Pension Scheme: Notice

15 July 2002

The Council give notice that, subject to the approval of Grace 1, p. 1223, 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:

1. Members with less than two years' Qualifying service (Rule 51.5 and 51.6)

The existing rules apply a two-year vesting period to benefits and as a result an employee who is admitted to membership of the Scheme on or after his or her sixty-third birthday would not be eligible for a pension from the Scheme at the Scheme's Normal Retirement Date.

The Managing Committee recognize that a small number of new employees are aged 63 or over on appointment. The proposed amendment will enable this group to join the Contributory Pension Scheme and receive a pension from the Scheme on retirement at or after the Scheme's Normal Retirement Age.

2. Definition of Full-time service (Rule 1.1)

As a result of an audit by the University's internal auditors it was noted that the full-time hours of employees in the University's M Division were not included in this rule, the amendment rectifies this omission.

3. Transfers from the Scheme (Rule 30.9)

The current Scheme rules allow members and former members of the Scheme to transfer their benefits out of the Scheme provided that such transfers are not within one year of the Scheme's Normal Retirement Age.

The Savings, Pensions, and Share Schemes Office of the Inland Revenue have now relaxed this requirement so that former members of the Scheme who continue in employment beyond the Scheme's Normal Retirement Age may transfer their benefits to an alternative pension arrangement, provided that their benefits have not come into payment and the relevant rule has been amended to allow such transfers to take place.

Full details of the changes and copies of the Rules of the Contributory Pension Scheme can be obtained from: Mrs S. E. Curryer, Head of Pensions Administration, 10 Peas Hill, Cambridge, CB3 3PN.

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