Ordinance 5 for the Contributory Pension Scheme (CPS) (Statutes and Ordinances, p. 158) and Rule 5 of the Scheme rules permit the rules of the Contributory Pension Scheme to be amended from time to time. Except where the amendment is required to ensure the Scheme's continued approval by the Savings, Pensions and Share Schemes Office of the Inland Revenue (now HM Revenue & Customs) such changes require the authority of a Grace.
Rule 5 of the rules of the CPS further provides that the University shall have the power to amend the rules of the Scheme from time to time provided that the changes have been approved by two-thirds of the Scheme's Managing Committee.
Subject to the approval of Grace 1, p. 475, the Council has approved amendments of the Rules of the Contributory Pension Scheme in order to give effect to the changes in the Scheme outlined below. The proposed changes were discussed and approved by the Managing Committee, at their meeting on 5 December 2008.
Incapacity and ill-health pension (Rule 53.4)
In certain circumstances a member of the CPS retiring on the grounds of ill health could be eligible for a higher pension than if the member retired on the grounds of incapacity. This is because, where the retirement takes place on the grounds of ill health, the enhancement is calculated as one additional year for each five years of Reckonable Service in the Scheme. A member could therefore receive an enhancement which gave that member more service than if he or she had continued in the CPS until the Scheme's Normal Retirement Age (NRA). The proposed rule change limits the enhancement so that the total service the member has at retirement, including the enhancement, cannot be more than he or she would have had at NRA.
Pensionable pay (New Rule 57A)
Currently the rules of the CPS effectively define Pensionable Pay as taxable pay and so it is necessary to amend these with effect from 1 April 2009 when a salary exchange for pension contributions is to be introduced (see Reporter, p. 466). The new rule will permit the salary payable prior to any reduction to be used as Pensionable Pay.
Working hours and payment date (Rules 1 and 3.1)
The amendments also recognize the change in full-time working hours for staff in the 'M' and 'T' divisions and amend the rule relating to the payment of pensions to recognize the move by the University to a fixed pay date.
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.