Arrangement

part 1  3

part 2  6

part 3  10

PART 4  13

PART 5  16

THE STATES make the following Regulations under Article 2 of the Public Employees (Retirement) (Jersey) Law 1967[1] –

“ “employer-initiated salary reduction” means, in relation to a contributory member’s salary, the application of a reduction to that salary by an employer as a result of –

(a)     a workforce or other organisational restructure affecting that contributory member’s employment; or

(b)     a re-evaluation of any salary scale or structure that may apply in respect of that contributory member’s employment;”;

“ “salary reduction date” means the date an employer-initiated salary reduction is applied;”.

“(2A) Paragraph (2B) applies where –

(a)     an employer-initiated salary reduction is applied to a contributory member’s salary; and

(b)     the member is awarded added years of service under Regulation 15A.

(2B)   Where this paragraph applies –

(a)     the contributory member’s salary for each year of service before an employer-initiated salary reduction is applied is to be disregarded for the purposes of calculating the annual rate of retirement pension under paragraph (2); and

(b)     for the purposes of that calculation under paragraph (2), the contributory member’s average salary is determined for each description of case set out in column 1 of the following table, by reference to the corresponding method of calculation set out in column 2 of that table –

“(3)    For the purpose of calculating the number of completed years of service, the maximum number of years of service referred to in paragraph (2) and that paragraph as modified by Regulations 17(b), 18(b), 19(b), 20(1)(c) and (2)(c) and 20A(c), are to be disregarded in respect of service attributable to –

(a)     a refund or a transfer value paid under –

(i)      Regulation 12 before its repeal by the Public Employees (Contributory Retirement Scheme) (Miscellaneous Amendments) (Jersey) Regulations 2015[3], or

(ii)      original Regulation 14 before its repeal by the Public Employees (Contributory Retirement Scheme) (Amendment No. 11) (Jersey) Regulations 1989[4]; or

(b)     any additional period of service awarded under Regulation 15A.”.

“(4)    This Regulation does not apply where the contributory member’s salary is reduced as a result of an employer-initiated salary reduction.”.

“15A Award of additional service

(1)     Subject to paragraph (3), this Regulation has effect where an employer-initiated salary reduction is applied to a contributory member’s salary.

(2)     The employer must, by way of compensation for the detriment caused to that member’s pension as a result of the reduction, award the member with such additional period of service as is determined by the Actuary having regard, amongst other things, to –

(a)     the amount of service accrued by the member immediately before the salary reduction date; and

(b)     the member’s salary received before the salary reduction date and on and after that date.

(3)     This Regulation does not have effect where an employer-initiated salary reduction is applied in the case of a member who has attained normal retiring age but has not left service.”.

“ “employer-initiated salary reduction” means in relation to a member’s salary, the application of a reduction to that salary by an employer as a result of –

(a)     a workforce or other organisational restructure affecting that member’s employment; or

(b)     a re-evaluation of any salary scale or structure that may apply in respect of that member’s employment;”;

“(e)    any added years of pensionable service granted to a member on account of –

(i)      augmentation under Regulation 15,

(ii)      a pensionable allowance giving rise to added years under Regulation 17, or

(iii)     an employer-initiated salary reduction and awarded by way of compensation under Regulation 17A; and”;

“ “salary reduction date” means the date an employer-initiated salary reduction is applied;”.

“(5)    Paragraph (4) does not apply where a member’s salary is reduced as a result of an employer-initiated salary reduction.”.

“(3)    Subject to paragraphs (4) and (5), and Regulation 21, the pension payable to a male member and the pension and lump sum payable to a female member on retirement is calculated as follows –

(a)     in the case of a male member –

(i)      1/60 of the member’s average salary for each year of pensionable service, and

(ii)      disregarding any added years of pensionable service credited to a member on account of a pensionable allowance under Regulation 17 or awarded by way of compensation under Regulation 17A, the member’s pensionable service cannot exceed 45 years; and

(b)     in the case of a female member –

(i)      1/80 of the member’s average salary for each year of pensionable service, together with a lump sum equal to 3/80 of the member’s average salary for each year of pensionable service, and

(ii)      disregarding any added years of pensionable service credited to a member on account of a pensionable allowance under Regulation 17 or awarded by way of compensation under Regulation 17A, the member’s pensionable service cannot exceed 40 years.”.

“(4)    Paragraph (5) applies where –

(a)     an employer-initiated salary reduction is applied to a member’s salary; and

(b)     the member is awarded added years under Regulation 17A.

(5)     Where this paragraph applies –

(a)     the member’s salary received in any period before an employer-initiated salary reduction is applied is to be disregarded for the purposes of calculating the annual rate of pension under paragraph (3)(a)(i) or (b)(i); and

(b)     for the purposes of that calculation under paragraph (3)(a)(i) or (b)(i), the member’s average salary is determined for each description of case set out in column 1 of the following table, by reference to the corresponding method of calculation set out in column 2 of that table –

“17A Award of compensatory added years

(1)     Subject to paragraph (3), this Regulation has effect where an employer-initiated salary reduction is applied to a member’s salary.

(2)     The employer must, by way of compensation for the detriment caused to that member’s pension as a result of the reduction, award the member with such added years of pensionable service as is determined by the Actuary having regard, amongst other things, to –

(a)     the amount of service accrued by the member immediately before the salary reduction date; and

(b)     the member’s salary received before the salary reduction date, and on and after that date.

(3)     This Regulation does not have effect where an employer-initiated salary reduction is applied in the case of a member who has attained normal retiring age but has not left service.”.

“ “added years” means such period of additional pensionable service as may be granted to a member on account of –

(a)     any refund paid or transfer value received, as referred to in repealed Regulation 7 of the General Regulations or transfer payment under Regulation 23 of the Administration Regulations;

(b)     any additional voluntary contributions (and related employer contributions) paid under Regulation 3;

(c)     augmentation pursuant to Regulation 17;

(d)     in the case of a member referred to in Regulation 2(3)(a), any special contributions paid under arrangements made whilst a member of the Former Hospital Scheme;

(e)     any pensionable allowance; and

(f)      an employer-initiated salary reduction and awarded by way of compensation under Regulation 19A;”;

“ “employer-initiated salary reduction” means, in relation to a member’s salary, the application of a reduction to that salary by an employer as a result of –

(a)     a workforce or other organisational restructure affecting that member’s employment; or

(b)     a re-evaluation of any salary scale or structure that may apply in respect of that member’s employment;”;

“ “salary reduction date” means the date an employer-initiated salary reduction is applied;”.

“(9)    Paragraph (7) does not apply where a member’s salary is reduced as a result of an employer-initiated salary reduction.”.

“(1)    Subject to paragraphs (3) and (4), and Regulation 17 of the General Regulations, on retirement from service at, or after normal retiring age a member is entitled to receive a pension calculated as follows –

(a)     in the case of a category A member or a category B member –

(i)      the annual rate of pension is 1/45 of the member’s average salary for each completed year (and pro rata for completed days) of pensionable service, and

(ii)      disregarding any added years credited on account of a pensionable allowance under Regulation 18 or awarded by way of compensation under Regulation 19A, the member’s pensionable service cannot exceed 35 years;

(b)     in the case of any other member –

(i)      the annual rate of pension is 1/60 of the member’s average salary for each completed year (and pro rata for completed days) of pensionable service, and

(ii)      disregarding any added years credited on account of a pensionable allowance under Regulation 18 or awarded by way of compensation under Regulation 19A, the member’s pensionable service cannot exceed 45 years.”;

“(3)    Paragraph (4) applies where –

(a)     an employer-initiated salary reduction is applied to a member’s salary; and

(b)     the member is awarded added years under Regulation 19A.

(4)     Where this paragraph applies –

(a)     the member’s salary received in any period before an employer-initiated salary reduction is applied is to be disregarded for the purposes of calculating the annual rate of pension under paragraph (1)(a)(i) or (b)(i); and

(b)     for the purposes of that calculation under paragraph (1)(a)(i) or (b)(i), the member’s average salary is –

(i)      in the case of a member who retires from service 3 or more years after the salary reduction date, that member’s final pensionable salary received on and after the salary reduction date during the best successive 365 days in the 3 years immediately before, and ending on the day on which he or she retires from service;

(ii)      in the case of a member who retires from service less than 3 years’ but more than one year after the salary reduction date, that member’s final pensionable salary received on and after the salary reduction date during the best successive 365 days in the period commencing on the salary reduction date and ending on the day on which he or she retires from service; or

(iii)     in the case of a member who retires from service one year or less after the salary reduction date, that member’s final pensionable salary received on and after the salary reduction date, divided by the number of days for which the member received that salary multiplied by 365, and ending on the day on which he or she retires from service.”.

“19A Award of compensatory added years

(1)     This Regulation has effect where an employer-initiated salary reduction is applied to a member’s salary.

(2)     The employer must, by way of compensation for the detriment caused to that member’s pension as a result of the reduction, award the member with such added years as is determined by the Actuary having regard, amongst other things, to –

(a)     the amount of service accrued by the member immediately before the salary reduction date; and

(b)     the member’s salary received in the period before the salary reduction date, and on and after that date.”.

“(d)    in the case of a member referred to in Regulation 2(3)(a), any special contributions paid under arrangements made whilst a member of the Former Hospital Scheme;

(e)     any pensionable allowance; and

(f)      an employer-initiated salary reduction and awarded by way of compensation under Regulation 19A;”;

“ “employer-initiated salary reduction” means in relation to a member’s salary, the application of a reduction to that salary by an employer as a result of –

(a)     a workforce or other organisational restructure affecting that member’s employment; or

(b)     a re-evaluation of any salary scale or structure that may apply in respect of that member’s employment;”;

“ “salary reduction date” means the date an employer-initiated salary reduction is applied;”.

“(9)    Paragraph (7) does not apply where a member’s salary is reduced as a result of an employer-initiated salary reduction.”.

“(1)    Subject to paragraphs (3) and (4), and Regulation 17 of the General Regulations, on retirement from service at or after normal retiring age, a member is entitled to receive a pension calculated as follows –

(a)     in the case of a category A member or a category B member –

(i)      the annual rate of pension is 1/45 of the member’s average salary for each completed year (and pro rata for completed days) of pensionable service which relates to participation in the scheme under the 1967 Regulations or participation in the Former Hospital Scheme under the Former Hospital Scheme Rules,

(ii)      the annual rate of pension is 1/60th of the member’s average salary for each completed year (and pro rata for completed days) of pensionable service in respect of the remainder of the member’s pensionable service, and

(iii)     disregarding any added years, the member’s pensionable service cannot exceed 35 years by limiting (if necessary) the member’s pensionable service which counts under clause (ii);

(b)     in the case of a category C member, the annual rate of pension is 1/70th of the member’s average salary for each completed year (and pro rata for completed days) of pensionable service;

(c)     in the case of any other member –

(i)      the annual rate of pension is 1/60 of the member’s average salary for each completed year (and pro rata for completed days) of pensionable service which relates to participation in the scheme under the 1967 Regulations or participation in the Former Hospital Scheme under the Former Hospital Scheme Rules,

(ii)      the annual rate of pension is 1/80th of the member’s average salary for each completed year (and pro rata for completed days) of pensionable service in respect of the remainder of the member’s pensionable service, and

(iii)     disregarding any added years, the member’s pensionable service cannot exceed 45 years by limiting (if necessary) the member’s pensionable service which counts under clause (ii).”;

“(3)    Paragraph (4) applies where –

(a)     an employer-initiated salary reduction is applied to a member’s salary; and

(b)     the member is awarded added years under Regulation 19A.

(4)     Where this paragraph applies –

(a)     the member’s salary received in any period before an employer-initiated salary reduction is applied, is to be disregarded for the purposes of calculating the annual rate of pension under paragraph (1)(a)(i) and (ii), (c) or (b)(i) and (ii); and

(b)     for the purposes of that calculation under paragraph (1)(a)(i) and (ii), (c) or (b)(i) and (ii), the member’s average salary is –

(i)      in the case of a member who retires from service 3 or more years after the salary reduction date, that member’s final pensionable salary received on and after the salary reduction date during the best successive 365 days in the 3 years immediately before, and ending on the day on which he or she retires from service;

(ii)      in the case of a member who retires from service less than 3 years’ but more than one year after the salary reduction date, that member’s final pensionable salary received on and after the salary reduction date during the best successive 365 days in the period commencing on the salary reduction date and ending on the day on which he or she retires from service; or

(iii)     in the case of a member who retires from service one year or less after the salary reduction date, that member’s final pensionable salary received on and after the salary reduction date, divided by the number of days for which the member received that salary multiplied by 365, and ending on the day on which he or she retires from service.”.

“19A Award of compensatory added years

(1)     This Regulation has effect where an employer-initiated salary reduction is applied to a member’s salary.

(2)     The employer must, by way of compensation for the detriment caused to that member’s pension as a result of the reduction, award the member with such added years as is determined by the Actuary having regard, amongst other things, to –

(a)     the amount of service accrued by the member immediately before the salary reduction date; and

(b)     the member’s salary received before the salary reduction date, and on and after that date.”.