Arrangement

THE STATES, make the following Regulations under Article 2 of the Public Employees (Pensions) (Jersey) Law 2014[1] –

“ “added years” means, with effect from 1st January 2019, such period of additional pensionable service as may be granted to a member on account of an employer-initiated pensionable earnings reduction and awarded by way of compensation under Regulation 9A;”;

“ “employer-initiated pensionable earnings reduction” means, with effect from 1st January 2019, in relation to a transition member’s pensionable earnings, the application of a reduction to those earnings on or after the transition date 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;”;

“pensionable earnings reduction date” means, with effect from 1st January 2019, the date an employer-initiated pensionable earnings reduction is applied;”.

“(1A) With effect from 1st January 2019, this Regulation does not apply to a transition member awarded added years under Regulation 9A, and Regulation 9B is to apply instead for the purposes of calculating the member’s final pensionable earnings by reference to the relevant date.”.

“9A   Award of compensatory added years

(1)     With effect from 1st January 2019, this Regulation has effect where an employer-initiated pensionable earnings reduction is applied.

(2)     The employer must, by way of compensation for the detriment caused to that member’s 1967 Scheme retirement benefits 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 pensionable service accrued by the member, under the respective schemes; and

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

9B     Calculation of final pensionable earnings where Regulation 9A applies

(1)     With effect from 1st January 2019, this Regulation applies where a transition member is awarded added years under Regulation 9A.

(2)     This paragraph applies to a transition member who was a member of the 1967 Scheme under the Existing Members Regulations or New Members Regulations.

(3)     Where paragraph (2) applies, a transition member’s final pensionable earnings for the purposes of Article 11(2)(b), (3) and (4)(a) of the Law, must be calculated by reference to –

(a)     in the case of a transition member who has had an employer-initiated pensionable earnings reduction applied 10 or more years before the relevant date, the highest of that member’s pensionable earnings received over 365 consecutive days in the 10 years prior to, and ending on the relevant date;

(b)     in the case of a transition member who has had an employer-initiated pensionable earnings reduction applied less than 10 years, but more than one year before the relevant date the highest of that member’s pensionable earnings received over 365 consecutive days in the period commencing on the pensionable earnings reduction date, and ending on the relevant date; or

(c)     in the case of a transition member who has had an employer-initiated pensionable earnings reduction applied one year or less before the relevant date, the whole year equivalent of that member’s pensionable earnings received on and after the pensionable earnings reduction date, and ending on the relevant date.

(4)     This paragraph applies to a transition member who was a member of the 1967 Scheme under the 1967 Regulations or 1992 Regulations.

(5)     Where paragraph (4) applies, a transition member’s final pensionable earnings for the purposes of Article 11(2)(b), (3) and (4)(a) of the Law, must be calculated by reference to –

(a)     in the case of a transition member who has had an employer-initiated pensionable earnings reduction applied 3 or more years’ before the relevant date, the average of that member’s pensionable earnings received over the 3 years prior to, and ending on the relevant date;

(b)     in the case of a transition member who has had an employer-initiated pensionable earnings reduction applied less than 3 years’, but more than one year before the relevant date, the average of that member’s pensionable earnings received in the period commencing on the pensionable earnings reduction date, and ending on the relevant date; or

(c)     in the case of a transition member who has had an employer-initiated pensionable earnings reduction applied one year or less before the relevant date, the whole year equivalent of that member’s pensionable earnings received on and after the pensionable earnings reduction date, and ending on the relevant date.”.