EUROPEAN PARLIAMENT Citation and commencement of Order 1 This Order may be cited as the European Parliamentary (United Kingdom Representatives) Pensions (Consolidation and Amendment) Order 1994 and shall come into force on 15th July 1994. Interpretation 2 1 In this Order, unless the context otherwise requires— “the 1979 Act ” means the European Parliament (Pay and Pensions) Act 1979; “the Taxes Act 1988 ” means the Income and Corporation Taxes Act 1988 ; “the Pensions Act 1993 ” means the Pension Schemes Act 1993 ; “actual reckonable service” means in respect of a person, his aggregate period of reckonable service excluding— any increase in that period by virtue of article 11(4); any period added by the direction of the Managers under article 24(2)(b); and any added years purchased pursuant to article 27 and to Schedule 7; “added year” means a period of reckonable service purchased pursuant to article 27 and Schedule 7 including a part of a year expressed in days and any future added year; “aggregate period of reckonable service” in relation to a person means the aggregate of all separate periods of reckonable service of that person together with increases pursuant to articles 24(2)(b) and 27 and to Schedule 7; “basic or prospective pension” has the meaning assigned to it by article 12(9); “contracted-out scheme” means an occupational pension scheme which is for the time being specified in a contracting-out certificate issued by the Occupational Pensions Board under regulations made in accordance with section 7 of the Pensions Act 1993; “contribution” means any amount deducted from salary or deemed to have been paid under article 5 and any reference to the payment of a contribution shall be construed accordingly; “deferred pensioner” means a person who— having been but having ceased to be a participant; and having accrued rights to a pension under the scheme, is not, or was not at his death, yet entitled to receive a pension under the scheme; “fraction of a year” means part of a year of reckonable service expressed as the proportion borne by the number of days in that part to three hundred and sixty-five; “guaranteed minimum” has the same meaning as in sections 14 to 16 and section 17(2) to (4) of the Pensions Act 1993; “guaranteed minimum pension” has the same meaning as in section 8(2) of the Pensions Act 1993; “interest” (where the reference is to the payment of any sum with interest) means compound interest at the rate of four per cent per annum calculated with annual rests; “the life of a European Parliament” means the period beginning with the opening of the first session of the European Parliament following a general election of Representatives and ending on the day before the opening of the first session of the European Parliament following the next such general election; “the Managers” has the meaning assigned to it by article 3; “normal retirement date” means the date on which a participant reaches the age of sixty-five; “overseas fund or scheme” means a fund or scheme which is established outside the United Kingdom or wholly or primarily administered outside the United Kingdom; “participant” means a person making contributions under article 5 (or who is excused from making such contributions because his aggregate period of reckonable service exceeds that which would give rise to the maximum pension allowed in respect of him under the scheme); “payment for the purchase of added years” means such a payment whether payable periodically or by way of a single lump sum; “pensionable salary” has the meaning assigned to it by article 7(10)(a); “pensioner” means a person entitled to receive a pension under the scheme; “permitted maximum” for any tax year means the figure specified for that tax year in an Order made under section 590C of the Taxes Act 1988 ; “the provision as to cohabitation” has the meaning assigned to it by article 14(5); “the 1993 Regulations ” means the Parliamentary Pensions (Consolidation and Amendment) Regulations 1993 ; “reckonable service” has the meaning assigned to it by article 6; “relevant child” has the meaning assigned to it by article 14(5); “relevant date” means the relevant date for the determination under any provision of this Order of the pension of a person; “relevant terminal salary” has the meaning assigned to it by article 7(10)(b); “state scheme premium” has the meaning assigned to it by section 55 of the Pensions Act 1993; “the scheme” means the pension scheme from time to time in force made for United Kingdom Representatives to the European Parliament under section 4 of the 1979 Act; “tax year” means a year beginning on the 6th April in a year and ending on the following 5th April. 2 In this Order, except where the context otherwise requires:— a a reference to a numbered article or Schedule is a reference to the article of, or the Schedule to, this Order so numbered; and b a reference in an article or Schedule to a numbered paragraph is a reference to the paragraph of that article or Schedule so numbered; and c a reference in a paragraph to a numbered sub-paragraph is a reference to the sub-paragraph of that paragraph so numbered. Managers 3 1 Subject to the provisions of Schedule 1, the Secretary of State may appoint persons as managers to perform such functions in connection with the administration of the provisions of this Order as are conferred on them by this Order and may remove such persons at any time. Notice of such appointment or removal shall be given by the Secretary of State to the person so appointed or removed and to the other persons who are at the time managers immediately after the appointment or removal. Persons appointed as managers under this article are referred to in this Order as “the Managers”. 2 The provisions of Schedule 1 shall have effect with respect to the number, qualification and proceedings of and service of documents upon the Managers. Membership 4 1 Any person serving as a Representative shall be a participant in the scheme unless he has exercised an option under paragraph (2) below not to be a participant. 2 A participant may exercise an option in writing under this paragraph not to be a participant in the scheme. 3 Subject to paragraph (4) below, the effective opt-out date in respect of a Representative is whatever date the Managers shall determine to be the earliest practicable date after that on which they receive from him written notice of the exercise of the option. 4 If the Managers receive the written notice not more than three months after the date of a general election or by-election at which the person was elected for the first time as a Representative, the effective opt-out date is the date of that election and any contributions deducted from his salary since that election under article 5 shall be repaid to him. 5 A Representative who has exercised his right under paragraph (2) above to opt out of the scheme is referred to in this Order as an “opted-out Representative”. 6 An opted-out Representative may apply to rejoin the scheme as a participant as from the date of any general election or by-election at which he was elected as a Representative (“the effective opt-in date”) by giving notice in writing to the Managers within a period of three months beginning with the effective opt-in date provided that he pays to the Managers within twenty-eight days of their acceptance of his application, or within such longer period as the Managers may in their discretion determine, the sum certified by the Managers as being the amount which would have been deducted from his salary under article 5 between the effective opt-in date and the first date thereafter when a deduction from his salary under article 5 is made. Contributions from salary 5 1 Subject to paragraphs (4) and (5) below, there shall be deducted by the Treasury from each payment of salary to a participant made pursuant to section 1 of the 1979 Act an amount equal to the appropriate percentage thereof by way of contributions towards the cost of providing the pensions payable under this Order. 2 For the purposes of paragraph (1) the appropriate percentage in the case of a period beginning on or after 1st April 1992 shall be six per cent. 3 If a participant elects to forego, for any period, the whole or part of his salary as a Representative he shall for the purpose of this Order be deemed to have paid during that period the amounts required by paragraph (1) of this article in respect of the amounts he elects to forego. 4 Where in respect of any person who became a participant in the scheme on or after 1st June 1989, his annual salary as a Representative exceeds the permitted maximum, the contributions deducted from that annual salary shall be limited to the appropriate percentage (as defined in paragraph (2) above) of that permitted maximum. 5 Where a participant’s aggregate period of reckonable service exceeds that which would give rise to the maximum pension allowed in respect of that person under article 7(3) or (4) below, no deduction shall be made from his salary under this article. Reckonable Service 6 Subject to articles 22, 25(7) and 27 and to Schedule 7, any period during which a person was or is a participant is a period of reckonable service. Pension Entitlement 7 1 Subject to the provisions of this Order, the Treasury shall pay to a person who has ceased to be a participant a pension under this article as from the time when the following conditions are or were fulfilled in respect of him— a he is or was neither a Representative nor a candidate for election to the European Parliament; and b he has or had attained the age of sixty-five years. 2 Subject to paragraphs (3), (4), (5) and (7), and to article 8, the annual amount of a pension payable to a pensioner under this article shall be a sum equal to the aggregate of the amounts produced, in relation to each year or part of a year comprised in his aggregate period of reckonable service, by multiplying the relevant terminal salary by the appropriate fraction. 3 The annual amount of the pension payable under this article to a person who became a participant before 1st June 1989 shall not exceed whichever is the less of— a the amount equal to two-thirds of the relevant terminal salary; or b such maximum pension as is calculated in respect of that person in accordance with the provisions of Schedule 2, except to the extent that it is calculated by reference to so much (if any) of that person’s actual reckonable service as fell after he attained the age of sixty-five years. 4 The annual amount of the pension payable under this article to a person who became a participant on or after 1st June 1989 shall not exceed whichever is the less of— a the amount equal to two-thirds of the relevant terminal salary; or b such maximum pension as is calculated in respect of that person in accordance with the provisions of Schedule 2; or c the amount equal to two-thirds of the permitted maximum. 5 For the purpose of calculating the annual amount of a pension payable to a pensioner to whom both paragraphs (a) and (b) of section 1(2) of the 1979 Act have applied— a where the relevant terminal salary of the pensioner is calculated in accordance with paragraph (10)(b) by reference to a period during which the pensioner was not a person to whom section 1(2)(b) of the 1979 Act applied, his aggregate period of reckonable service shall, for the purpose of making the calculation referred to in paragraph (2), be divided by three in respect of those parts of his aggregate period of reckonable service to which the said section 1(2)(b) applied; and b where the relevant terminal salary of the pensioner is calculated in accordance with paragraph (10)(b) by reference to a period during which the pensioner was a person to whom section 1(2)(b) of the 1979 Act applied, his aggregate period of reckonable service shall, for the purpose of making the calculation referred to in paragraph (2), be multiplied by three in respect of those parts of his aggregate period of reckonable service to which the said section 1(2)(b) did not apply. 6 Subject to paragraphs (7) and (8), a pension under this article shall continue for the life of the person to whom it is payable. 7 No such pension shall be payable to a person in respect of any period during which he is a Representative or a candidate for election as a Representative. 8 The provisions of paragraph (6) shall not apply for the purposes of calculating the amounts payable under Article 18. 9 Notwithstanding any provision of this Order to the contrary, any person entitled to receive a pension under this Order— a shall be entitled to receive, subject to the provisions of paragraph (7), from the age of sixty-five years in the case of a man and from the age of sixty years in the case of a woman, a pension payable for the remainder of his or her life, at a rate equivalent to a weekly rate of not less than the guaranteed minimum unless his or her rights thereto are extinguished by payment of a state scheme premium; and b if the payment of the guaranteed minimum pension of that person is postponed in the circumstances to which section 13(4) and (5) of the Pensions Act 1993 applies, the guaranteed minimum pension of that person shall be increased to the extent, if any, specified in section 15(1) and (2) of that Act. 10 In this article, and the following provisions of this Order— a the expression “pensionable salary” means, subject to section 5(2) of the 1979 Act— i in the case of such a period as is described in section 1(2)(a) of the 1979 Act, a Member’s pensionable salary for that period; ii in the case of such a period as is described in section 1(2)(b) of the 1979 Act, one-third of a Member’s pensionable salary for that period; iii notwithstanding (i) and (ii) of this sub-paragraph, in respect of any reference in paragraphs (3) and (4) and in Schedules 2, 3 and 7 to the relevant terminal salary, in the case of such a period as is described in either section 1(2)(a) or section 1(2)(b) of the 1979 Act, a Member’s pensionable salary for that period; and b the expression “relevant terminal salary”— i in respect of a person whose aggregate period of reckonable service is not less than twelve months, means the amount of his pensionable salary for the last twelve months (whether continuous or discontinuous) during which he was a participant; and ii in respect of a person whose aggregate period of reckonable service is less than twelve months, means an amount calculated by multiplying his pensionable salary by the figure (whether a whole number or not) by which the number of days of his service must be multiplied to equal twelve months. 11 In paragraph (2) “the appropriate fraction” in relation to a year or part of a year comprised in a person’s aggregate period of reckonable service means: a in the case of a year or part of a year ending before 20th July 1983, one-sixtieth or, as the case may be, the fraction which bears to one-sixtieth the same proportion as the number of days in that part of a year bears to three hundred and sixty-five; and b in the case of a year or part of a year beginning on or after 20th July 1983, one-fiftieth or, as the case may be, the fraction which bears to one-fiftieth the same proportion as the number of days in that part of a year bears to three hundred and sixty-five. 12 For the purposes of paragraph (11), where a year or part of a year comprised in a person’s aggregate period of reckonable service began before, but ended on or after, 20th July 1983— a so much of that year or part of a year as ended with 19th July 1983 shall be treated as a part of a year in relation to which sub-paragraph (a) of that paragraph applies; and b the remainder of that year or part of a year shall be treated as a part of a year in relation to which sub-paragraph (b) of that paragraph applies. 13 For the purposes of paragraph (11), a period of reckonable service: a an application to purchase which, under the provisions of Schedule 7 (Purchase of added years), was accepted by the Managers before 31st August 1985; or b attributable to a direction under article 24(2)(b) (Transfers from other pension schemes) made before that date; or c attributable to the application of the provisions of paragraph (5) (Multiplying of reckonable service for certain purposes) in respect of a period to which (apart from under this paragraph) paragraph (11)(a) applies or of a period under sub-paragraph (a) or (b) above, shall be treated as a period to which paragraph (11)(a) applies; and a period of reckonable service: i an application to purchase which, under the provisions of Schedule 7, is accepted by the Managers on or after 31st August 1985; or ii attributable to a direction under article 24(2)(b) made on or after that date; or iii of a person who ceased or ceases to be a participant on or after 20th July 1983, being reckonable service attributable to the provisions of article 11(4) or (5); or iv attributable to the application of the provisions of paragraph (5) in respect of a period to which (apart from under this paragraph) paragraph (11)(b) applies or of a period under sub-paragraph (i) or (ii) above, shall be treated as a period to which paragraph (11)(b) applies. Commutation into lump sum 8 1 Subject to the provisions of article 27 and Schedule 7, any person who is entitled to receive a pension under article 7 may, before the first instalment of the pension is paid, give notice to the Managers that he wishes to commute into a lump sum such part of the pension as is specified in the notice. 2 Subject to the following paragraphs of this article, where a person has given notice under this article, the Treasury shall pay to that person such lump sum as the Managers direct as in their opinion being actuarially equivalent to the part of the pension specified in the notice, and the annual amount of his pension shall be reduced by such amount as the Managers direct as in their opinion being appropriate in consideration of the payment of that lump sum. 3 Before making any calculations pursuant to paragraph (2) the Managers shall consult the Government Actuary unless such calculations are made on the basis of tables prepared by the Government Actuary for the purpose of making such calculations. 4 If the amount of a lump sum calculated pursuant to paragraphs (2) and (3) would exceed the maximum commutable sum— a the amount of the lump sum so calculated shall be diminished by such proportion as is necessary to make it equal to the maximum commutable sum; and b the reduction of the annual amount of pension calculated to take account of the lump sum shall be diminished by the like proportion. 5 Subject to paragraph (6), for the purposes of paragraph (4) the maximum commutable sum shall be an amount calculated in accordance with Schedule 3 to this Order and, in the case of a person who became a participant on or after 1st June 1989, shall be subject to an overall maximum of 120/80 of the permitted maximum. 6 In determining the amount of the lump sum under this article the maximum commutable sum shall if necessary be diminished so that the annual amount of pension shall not be reduced under paragraph (2) below the rate of the guaranteed minimum pension. Early abated pensions 9 1 Any person who has ceased to be a Representative and who fulfils the conditions specified in article 7(1)(a) and has attained the age of fifty years but not that of sixty-five years may apply to the Managers for an immediate pension under paragraph (2). 2 If the Managers direct that they are satisfied that such a person does not intend to stand for re-election to the European Parliament he shall be entitled to receive a pension under Article 7, subject to paragraph (3), as if he had attained the age of sixty-five years on the date of his application or such later date as may be specified in the application. 3 The annual amount of a pension payable under paragraph (2) both before and after he attains the age of sixty-five years, shall, subject to article 8, be an amount calculated in accordance with article 7 reduced by such amount as the Managers after consulting the Government Actuary direct as in their opinion being appropriate having regard to the length of the period beginning with the date of his application or such later date referred to in paragraph (2) as may be specified in the application and ending with the date on which he would attain the age of sixty-five years. 4 The pension to which a person is entitled under this article shall not be reduced below the rate of the guaranteed minimum pension, as provided for by article 7(9). Early retirement 10 1 Where a person who— a is a participant and ceases to be a Representative; and b has attained the age of fifty years; and c has actual reckonable service of not less than fifteen years (hereinafter referred to in respect of a person as “his qualifying period”), including actual reckonable service as a participant on or after 2nd April 1991, applies in writing to the Managers for an immediate pension under this article, then, if the Managers are satisfied that he does not intend to stand for re-election to the European Parliament, he shall be entitled to receive a pension under article 7 as if he had attained the age of sixty-five years on the date of his application or, if later, such other date as may be there specified; but the annual amount of the pension to which he is so entitled both before and after he attains the age of sixty-five years, shall (subject to article 8) be an amount calculated in accordance with article 7 and abated in accordance with Schedule 4. 2 For the purposes of paragraph (1)(c) of this article, service of a person as a Member of the House of Commons, whether rendered before, on or after 2nd April 1991, may count towards his qualifying period to the extent that it is not concurrent with service as a Representative. Ill-health pensions 11 1 A participant who because of ill-health has ceased to be a Representative before attaining the age of sixty-five years may apply to the Managers for an early pension under article 7 if at the time when he so ceased he would have been entitled to receive a pension under article 7 but for his not having attained such age. 2 If on an application under paragraph (1) the Managers direct that they are satisfied— a that the applicant does not intend to seek re-election to the European Parliament; b that his ill-health would prevent him from adequately performing the duties of a Representative; and c that his ceasing to be a Representative was a direct consequence of his ill-health; he will be entitled to receive a pension under article 7 as from the time he ceased to be a Representative. 3 A participant who if he were to cease as mentioned in paragraph (1) at a particular date in the future because of ill-health, would become entitled to make an application under that paragraph may make such an application to the Managers before that date specifying in the application the date when he proposes so to cease, and if the Managers are satisfied that at the date so specified that applicant will, if he so ceases, be entitled to an early pension by virtue of paragraph (2) they shall make a direction to that effect. 4 The annual amount of a pension payable under article 7 to a person by virtue of this article shall, subject to article 8, be calculated in accordance with article 7(2), (3) and (4) but for the purposes of the calculation his aggregate period of reckonable service shall, subject to paragraph (5), be increased by a period equal to the period between his ceasing as mentioned in paragraph (1) above and the time when he would attain the age of sixty-five years. 5 In the case of a person to whom article 7(5)(a) applies, the increase referred to in paragraph (4) shall be divided by three in respect of that part of the aggregate period of reckonable service (not including any increase under this article) to which section 1(2)(b) of the 1979 Act applied, and in the case of a person to whom article 7(5)(b) applies the increase referred to in paragraph (4) shall be multiplied by three in respect of that part of the aggregate period of reckonable service (not including any increase under this article) to which the said section did not apply, and for the purpose of making the calculation referred to in article 7(2), article 7(5) shall not apply in respect of that part of the aggregate period of reckonable service which is attributable to the increase provided by paragraph (4) and this paragraph. 6 For the purpose of this article, a participant who has ceased to be a Representative at the end of the life of a European Parliament shall be treated as having so ceased because of ill-health if the Managers direct that they are satisfied that as a direct consequence of his ill-health he did not seek re-election to the European Parliament. 7 A person who because of ill-health has, while neither a Representative nor a candidate for election to the European Parliament, retired from gainful work before attaining the age of sixty-five years may apply to the Managers for an early pension under article 7 if at the time when he so retired he would have become entitled to receive a pension under that article but for his not having attained that age. 8 If, on an application under paragraph (7) the Managers direct that they are satisfied— a that the applicant does not intend to seek re-election to the European Parliament; b that his ill-health would prevent him from adequately performing the duties of a Representative; and c that his retirement from gainful work was a direct consequence of his ill-health; the applicant shall be entitled to receive a pension under article 7 as from the date of the direction. 9 Where an application is made under paragraph (7) the Managers shall make a direction as to whether they are satisfied as mentioned in paragraph (8) and, if they are so satisfied, shall state in the direction the date from which the pension will be payable, and they shall send a copy of the direction to the applicant. 10 In this paragraph “gainful work” means work under a contract of employment, or as the holder of an office, or as a self-employed person engaged in a business or profession being in any case work from which the person concerned gains the whole or a substantial part of his income. 11 Every application under this article must be accompanied by medical evidence of the applicant’s state of health. 12 The Managers may require the applicant to undergo a medical examination by a medical practitioner nominated by them for the purpose, the fees for which shall be paid by the Treasury. Widows' and widowers' pensions 12 1 Save that whichever is appropriate of paragraph (6) or paragraph (7) shall apply, this article shall apply in relation to a woman who was a participant on or after 31st July 1984 and who has died and her widower as it applies in relation to a man who has died and his widow. 2 Subject to the provisions of this article, the Treasury shall pay a pension under this article to the widow of a person who was at the time of his death either— a a participant; or b a pensioner; or c a deferred pensioner. 3 Subject to paragraphs (6) or (7) and (8), the annual amount of a widow’s pension under this article shall be five-eighths of the basic or prospective pension of her late husband. 4 Subject to paragraph (5), a pension payable under this article to a widow shall continue for her life or until her remarriage; but in the case of remarriage the Treasury shall at any time restore the pension if at such time the Managers direct that they are satisfied that the subsequent marriage has been terminated or that there are exceptional reasons for the payment of the pension notwithstanding the subsistence of that marriage. 5 No pension shall be payable under this article to a widow who, at her husband’s death, was cohabitating with another person; and if a widow entitled to such a pension cohabits with another person, the pension shall cease to be payable: Provided that the Treasury shall at any time pay or as the case may be restore the pension if at such time the Managers direct that they are satisfied that the cohabitation has been terminated or that there are exceptional reasons for the payment of the pension notwithstanding that the cohabitation continues. 6 Notwithstanding anything in this Order and in particular notwithstanding the provisions of paragraphs (4) and (5) above, the widow of a man who had a guaranteed minimum pension under the scheme shall, upon his death, during any period specified in section 17(5) of the Pensions Act 1993, be entitled to a pension for the remainder of her life at a rate equivalent to a weekly rate of not less than half the guaranteed minimum of that man. 7 Notwithstanding anything in this Order and in particular notwithstanding the provisions of paragraphs (4) and (5) above, the widower of a woman who had a guaranteed minimum pension under the scheme shall, upon her death, during any period and in any circumstances prescribed by regulations made under section 17(6) of the Pensions Act 1993 , be entitled to a pension for the remainder of his life at a rate equivalent to not less than half of that part of the woman’s guaranteed minimum pension which is attributable to earnings factors for the tax year 1988-89 and subsequent tax years. 8 Where a man dies in circumstances in which, apart from this paragraph, a widow’s pension calculated in accordance with paragraph (3) would be payable to a woman married by him within the six months ending with his death, then if— a there are no children of that marriage; b the man was married to her after he ceased to be a Representative; c the rate of the widow’s pension payable to her would be in excess of the widow’s guaranteed minimum pension; and d the Managers direct that it appears to them that his death within six months was to be foreseen by him at the date of the marriage, the Treasury shall pay only that part of the widow’s pension which comprises the widow’s guaranteed minimum pension unless the Managers direct that in the circumstances of the case in their opinion the limit imposed by this paragraph should not apply. 9 In this Order “basic or prospective pension”— a in relation to a person who has died and at the time of his death was a participant, means the annual amount of the pension calculated in respect of him in accordance with article 7 and, if he died while a participant before attaining the age of sixty-five years, the annual amount of the pension calculated in respect of him increased by virtue of article 15(5); and b in relation to a person who has died and at the time of his death was a pensioner, means the annual amount of the pension which he was entitled to receive calculated in accordance with article 7, including an ill-health pension calculated in accordance with article 11(4); provided that where the annual amount of his pension resulted from one or more reductions or abatements made under article 8(2), 9(3) or 10(1), no such reduction or abatement shall be made in calculating the annual amount of that pension for the purposes of this paragraph; and c in relation to a person who has died and at the time of his death was a deferred pensioner, means the annual amount of the pension calculated in accordance with article 7 which he would have been entitled to receive under that article if he had ceased to be a Representative immediately before his death and he had then fulfilled the conditions specified in sub-paragraphs (a) and (b) of paragraph (1) of that article. Widowers' pensions (no reckonable service on or after 31st July 1984) 13 1 Subject to the provisions of this article, the Treasury shall pay to a widower a pension under this article— a as from the day following the date of his wife’s death if at the time of her death he had attained the age of sixty-five years or was incapable by reason of bodily or mental infirmity of earning his own living; or b where the preceding sub-paragraph does not apply, as from the time when he attains the age of sixty-five or, before attaining that age, becomes incapable as mentioned in that sub-paragraph. 2 A widower shall only be entitled to a pension under paragraph (1) if his wife was not a participant at any time on or after 31st July 1984 and, at the time of her death, either— a was entitled to receive a pension under article 7; or b was not so entitled, but had been a participant and had an aggregate period of reckonable service of not less than four years. 3 The annual amount of a widower’s pension under this article shall be one half of the basic or prospective pension of his late wife. 4 A pension under this article shall, subject to the following provisions of this article, continue for the life of the widower, but may be terminated by the Treasury if the Managers inform them that he has remarried, or, if the widower has not yet attained the age of sixty-five years, the Managers direct that they are satisfied that he has ceased to be incapable as mentioned in paragraph (1). 5 The termination of a pension under paragraph (4) on a widower ceasing to be incapable as there mentioned before attaining the age of sixty-five years shall not affect his entitlement to the pension as from the time when he attains that age. 6 A pension terminated under paragraph (4) may be restored by the Treasury at any time if at such time the Managers direct that they are satisfied that— a the marriage upon which it was terminated has come to an end, b the pensioner has again become incapable as mentioned in paragraph (1), or c for exceptional reasons it is proper to restore the pension. 7 Article 12(5) shall apply for the purposes of this article with the necessary modifications. 8 Where a woman dies in circumstances in which, apart from this paragraph, a widower’s pension calculated in accordance with paragraph (3) of this article would be payable to a man married by her within a year ending with her death, then if— a there are no children of that marriage; and b the Managers inform the Treasury that it appears to them that her death within the year was to be foreseen by her at the date of her marriage, the Treasury shall not pay a widower’s pension under this article unless the Managers direct that they are of the opinion that in the circumstances of the case a widower’s pension should be paid. Children’s pensions 14 1 Subject to the provisions of this article, the Treasury shall pay a children’s pension for the benefit of any relevant child or children of a person who has died and who is or has been married, if at the time of his death the condition specified in sub-paragraph (a) or in sub-paragraph (b) or in sub-paragraph (c) of article 12(2) is fulfilled in his case. 2 The annual amount of a children’s pension payable under this article for the benefit of any relevant child or children of a person who has died in the circumstances mentioned in paragraph (1) shall be— a a sum equal to one-quarter of the basic or prospective pension of the deceased if there is one child or, if there is more than one, a sum equal to three-sixteenths of the basic or prospective pension of the deceased for each relevant child not exceeding two; or b if the widow or widower is dead and subject to paragraph (4) below, a sum equal to five-sixteenths of the basic or prospective pension of the deceased for each relevant child not exceeding two. 3 Where the deceased left a widow or widower who was (or, apart from the provision as to cohabitation would have been) entitled to a pension under article 12 or article 13 and that pension— a has ceased to be payable in consequence of the re-marriage of the widow or widower, or b was not payable, or has ceased to be payable, by reason of the provision as to cohabitation, any children’s pension under this article shall cease to be payable or, as the case may be, shall not be payable unless and until the Managers direct that they are satisfied that for exceptional reasons the children’s pension should be payable. 4 A children’s pension under this article shall be paid to or distributed between such person or persons as the Managers may from time to time direct as in their opinion appearing appropriate, and shall be applied by that person or those persons, without distinction, for the benefit of the relevant child or relevant children of the deceased or such of them as the Managers may from time to time direct as in their opinion appearing appropriate. 5 In this article “child” in relation to any person includes an illegitimate child or a stepchild, and “relevant child” (subject to the provisions of Schedule 5) means any child of the deceased, or of any wife or husband of the deceased, who— a is under seventeen years of age, or b is under twenty-two years of age and is within his period of full-time education as defined by that Schedule, or c was at the time of the death of the deceased wholly or mainly dependant on the deceased and was at that time and has at all times since been either a person falling within sub-paragraph (a) or sub-paragraph (b) of this paragraph or incapable, and likely to remain permanently incapable, by reason of bodily or mental infirmity, of earning his own living, and is not for the time being maintained out of moneys provided by Parliament in a hospital or similar institution so maintained, and “the provision as to cohabitation” means paragraph (5) of article 12 or that paragraph as applied by article 13(7). Enhancement of initial widow's, widowers' and children’s pensions 15 1 Where the widow of a man who— a has at any time been a participant; and b was at the time of his death entitled to receive a pension under article 7, is entitled to receive a pension under article 12, paragraphs (2) and (3) of this article shall apply. 2 If, for any part of the three month period, the aggregate of the following amounts, namely— a the amount payable to her by way of pension under article 12 apart from this paragraph; and b any amount which is payable to her by way of pension under article 14 for the benefit of any relevant child or children of the deceased, is less than the amount mentioned in paragraph (3) of this article, then for that part of that period the amount payable to her by way of pension under article 12 shall be increased by the difference. 3 The said amount is the amount which, if the deceased had lived, would have been payable to him for the part of the three month period in question by way of pension under article 7. 4 Where a man has died and at the time of his death, he— a was a participant; and b was not entitled to receive a pension under article 7, paragraphs (5) to (7) of this article (so far as applicable) shall apply if his widow is entitled to receive a pension under article 12 or if a children’s pension under article 14 is payable for the benefit of any relevant child or children of his. 5 If the deceased died before attaining the age of sixty-five years, the annual amount of any pension payable to his widow under article 12 or for the benefit of any relevant child or children of his under article 14 shall be calculated as if he had immediately before his death ceased to be a Representative because of ill-health and had by virtue of article 11 been entitled to receive a pension under article 7 as from the time when he so ceased. 6 If, for any part of the three month period, the aggregate of the following amounts, namely— a the amount payable to the deceased’s widow by way of pension under article 12 apart from this paragraph; and b any amount which is payable to her by way of pension under article 14 for the benefit of any relevant child or children of the deceased, is less than the amount mentioned in paragraph (7) of this article, then for that part of that period the amount payable to her by way of pension under article 12 shall be increased by the difference. 7 The said amount is the amount which, if— a the deceased had lived and had at the material time become entitled to a pension under article 7; and b the annual amount of that pension had been a sum equal to the participant’s pensionable salary at the rate in force at the material time, would have been payable to him for the part of the three month period in question by way of that pension. In this paragraph “the material time” means the time when the deceased in fact died. 8 The preceding provisions of this article are without prejudice to paragraphs (4), (5) and (8) of article 12 (duration of widow’s pension, and restrictions on payment). 9 The preceding provisions of this article shall apply in relation to a woman who has died and her widower as they apply in relation to a man who has died and his widow, subject in relation to any case in which a widower is entitled to receive a pension under article 13, to the following modifications— a any reference to article 12 shall be read as a reference to article 13; b the reference to paragraphs (4),(5) and (8) of article 12 shall be read as a reference to article 13(4),(6) and (8) and article 12(5) as applied by article 13(7); and c paragraphs (2) and (6) of this article shall not apply where the widower is entitled to a pension by virtue of article 13(1)(b). 10 In this article “the three month period”, in relation to a person who has died, means the period of three months beginning with the day following the date of his death. Gratuity on the death of a serving participant 16 1 Where a person has died at a time when he was a participant, the Managers, if they think fit in their discretion to do so, may grant, and if they so grant the Treasury shall pay, a gratuity under this article in respect of him. 2 A gratuity under this article in respect of a person shall be granted: a to the individual nominated in any nomination made by him for the purposes of this article which was in force at the time of his death; or b if no such nomination was in force at that time, to his personal representative. 3 The Managers shall treat a nomination made for the purposes of this article by any person (“the nominator”) as not being in force at the time of the nominator’s death: a if the individual nominated was the nominator’s wife or husband at the time the nomination was made but has subsequently ceased to be the nominator’s wife or husband; or b if the Managers are of the opinion that the payment of the gratuity to the individual is not reasonably practicable in all the circumstances. 4 A nomination for the purposes of this article must be made, and may be revoked, by a notice in writing to the Managers; and such a notice must be in such form as the Managers may require. 5 Subject to paragraph (6) below, the amount of a gratuity under this article in respect of a participant who dies in service at any time on or after 6th April 1988 shall be whichever of the two following amounts is the greater— a the amount equal to twice his pensionable salary at the time of his death; or b the aggregate of the contributions paid by that participant and not refunded to him, together with interest on each such contribution from the date on which it was paid. 6 In the case of a person who became a participant on or after 1st June 1989, the amount of the gratuity in paragraph (5) above shall be subject to an overall maximum of twice the permitted maximum. Gratuity on death of a pensioner after retirement 17 1 Where a person dies in circumstances where he has become entitled to receive a pension under article 7, and no pension in respect of him is payable under any of articles 12 to 14 the Treasury may, subject to the approval of the Managers, pay to his personal representative a gratuity under this article. 2 The Treasury shall not pay a gratuity under this article in respect of a person who was a participant at any time on or after 1st April 1992 if the amount of such gratuity would be less than the amount of any lump sum payable by virtue of article 18 and paragraph 3(2) of Schedule 6. 3 For the purposes of determining the amount of the gratuity which may be paid in respect of a person under this article, there shall be calculated— a the amount of the gratuity which the Treasury could have paid to the pensioner’s personal representative under article 16 had he died when he was a participant; and in determining such amount— i paragraph (5) of article 16 shall apply in the case of a pensioner who was a participant at any time on or after 6th April 1988; and ii paragraph (5) of article 16 shall apply in any other case, save that for sub-paragraph (5)(a) there shall be substituted “the amount of his pensionable salary at the time of his death”; and b the aggregate amount of the payment made to him by way of pension under article 7 together with any lump sum paid to him under article 8; and the amount of the gratuity shall be the amount (if any) by which the amount calculated under paragraph (a) exceeds the amount calculated under paragraph (b) above. 4 In the case of a person who became a participant on or after 1st June 1989, the amount of the gratuity in paragraph (3) above shall be subject to an overall maximum of twice the permitted maximum. Five year guarantee 18 Schedule 6 shall apply in respect of a deceased pensioner whose actual reckonable service includes service at any time on or after 1st April 1992. Transfers to other pension schemes 19 1 Any person who has ceased to be a Representative and who has not become entitled to a pension under this Order other than a guaranteed minimum pension arising under article 7(9) may by notice in writing request the Treasury to pay into or for the purposes of any fund or scheme to which this article applies a sum or sums representing the value of that person’s accrued pension rights under this Order, and on receipt of such notice the Treasury shall make the payment requested. 2 This article applies to any scheme or annuity which satisfies the requirements prescribed by regulations made under section 95(2) and (3) of the Pensions Act 1993. 3 Where a person has required the Managers to pay a transfer value to or for the purposes of any one or more than one scheme or annuity which does not include— a a contracted-out scheme; or b an appropriate personal pension scheme; or c a self-employed arrangement within the meaning of regulation 2D of the Occupational Pension Schemes (Transfer Values) Regulations 1985 or regulation 2A of the Personal Pension Schemes (Transfer Values) Regulations 1987 , the Managers shall pay a state scheme premium in respect of that person and subsections (2) and (3) of section 96 of the Pensions Act 1993 shall apply to the calculation of the transfer value payable. 4 A person may require the Managers to pay a transfer value in respect of him at any time before a date— a not more than one year before the date on which he attains the age of sixty-five years; or b not more than six months after the date on which he ceases to be a participant, whichever is the later. Transfers to other pension schemes after opt out 20 1 At the request on or after 6th April 1988 of any person who— a is an opted-out Representative; and b has not become entitled to a pension under this Order other than a guaranteed minimum pension arising under article 7(9), the Managers shall pay into or for the purposes of any one or more than one scheme or annuity to which this article applies the transfer value calculated in accordance with paragraph (3) below. 2 This article applies to any fund or scheme specified in article 19(2) above. 3 For the purposes of this article and subject to paragraph (4) below the transfer value payable will be the value of the person’s accrued pension rights as follows— a where they have accrued to or in respect of his period of actual reckonable service, that part which relates to his actual reckonable service on or after 6th April 1988; or b where they have accrued to or in respect of service notionally attributed to him as a result of a transfer from another pension scheme under article 24 or the purchase of added years pursuant to article 27 and Schedule 7, that part of such rights as was credited to him on or after 6th April 1988; or c where (a) and (b) both apply, the aggregate of the rights derived separately under each head. 4 Where on 5th April 1988 the person had an aggregate period of reckonable service of less than two years, the pension rights which have accrued by virtue of such service may, at his option, be included for the purposes of calculating a transfer value in accordance with paragraph (3) above. 5 Where a transfer value has been paid under this article in respect of a person who is an opted-out Representative and that person subsequently ceases to be a Representative, a transfer value may be paid under article 19 in respect of any pension rights accrued to or in respect of him in the scheme. 6 Paragraphs (3) and (4) of article 19 shall apply for the purposes of this article. Transfer to overseas pension schemes 21 1 At the request of any person who has been a participant but who has ceased to be a Representative and who has not become entitled to a pension under this Order other than a guaranteed minimum pension arising under Article 7(9), the Managers shall pay into or for the purposes of any one, or more than one, fund or scheme to which this article applies a sum or sums representing the transfer value of that person’s accrued pension rights. 2 This article applies to any overseas fund or scheme which is approved by the Managers, provided that the Managers shall before giving such approval consult and have regard to the views of the Board of Inland Revenue and the Occupational Pensions Board as to the suitability of the fund or scheme for the purposes of this article. 3 At the request of any person— a in respect of whom any sum has been paid under this article into or for the purposes of an overseas fund or scheme; and b who is not at the time the request is made a Representative, the Treasury may receive a sum, out of, or out of monies held for the purposes of, that fund or scheme, equal to the sum paid under this article together with interest thereon from the date of that payment at such a rate as may be agreed by the Treasury. Effect of transfers out on reckonable service 22 1 Subject to paragraph (2) below, where any sums are paid by the Managers under article 19, 20 or 21 in respect of any person, then— a for the purpose of calculating his aggregate period of reckonable service, no account shall be taken of any period before the date of that payment unless he is a person in respect of whom a sum is received by the Treasury under article 21(3); and b for the purposes of articles 25 and 26 any contributions paid by him before the date of that payment shall be treated as not having been paid. 2 Where, in the case of an opted-out Representative, the transfer value calculated in accordance with article 20(3) and paid under article 20 does not include the value of accrued pension benefits relating to service before 6th April 1988 and no transfer value has been paid under article 19, paragraph (1) above shall be disregarded in respect of— a his aggregate period of reckonable service before 6th April 1988; and b his contributions paid before that date. Certification by the Government Actuary 23 For the purposes of articles 19, 20 or 21, any transfer value of the whole or part of a person’s accrued pension rights under this Order shall be such sum as shall satisfy the requirements prescribed under Part IV Chapter IV of the Pensions Act 1993 and shall be certified by, or calculated in accordance with tables prepared by, the Government Actuary. Transfers from other pension schemes 24 1 At the request of any person who is for the time being a participant, the Treasury may receive any sums payable by way of transfer value in respect of him out of, or out of moneys held for purposes of, any fund or scheme to which this article applies, or under any enactment for the time being in force which authorises the transfer of pension rights. 2 Where any sums are received by the Treasury under paragraph (1) at the request of a person who is a participant at the time when the request is made— a for the purposes of articles 25 and 26 the sums so received so far as in the opinion of the Managers they represent his own contributory payments, shall be treated as if they were contributions paid by him, at the same times as those contributory payments were made, by deduction from his salary under article 5; b his aggregate period of reckonable service shall be treated as increased by the addition of such period as the Managers direct as in their opinion being appropriate and for the purposes of articles 7(2) and (5), such period shall be deemed to have been a period of service as a Representative to whom paragraph (a) of section 1(2) of the 1979 Act applied. 3 Before determining any period for the purposes of paragraph (2)(b) the Managers shall consult the Government Actuary as to what period would be appropriate in relation to the sums received by the Treasury at the request of the person in question, unless they determine the period in accordance with tables prepared by the Government Actuary, as being appropriate in relation to those sums. 4 This article applies to any scheme to which article 19 applies. Repayment of contributions to the contributor 25 1 Subject to paragraphs (3) and (6), any contributions paid by a person under article 5 shall be refunded to him by the Treasury with interest from the date on which the contributions were paid respectively, if he requests the Treasury to refund the contributions to him and, on the date of that request, the conditions specified in paragraph (2) are fulfilled in relation to him. 2 The conditions referred to in paragraph (1) are that— a the Managers have directed that they approve the refund of the contributions; b the contributor has ceased to be a Representative and he has not at any time since he so ceased again become a Representative; c his aggregate period of reckonable service is less than two years; d he has not become entitled to a pension under article 7. 3 A person shall not be entitled to a refund of the contributions paid by him, if that person is a person who in the case of a man had ceased to be a Representative during or on a date after the end of the tax year in which he attains the age of sixty-five years or in the case of a woman had ceased to be a Representative during or on a date after the end of the tax year in which she attained the age of sixty years. 4 If, after the refund of contributions to him under this article, the contributor becomes, or (as the case may be) again becomes a person entitled to pay and pays contributions under article 5, he may— a if he so desires, and makes the repayment before the end of the period of three months beginning with the date on which he becomes so liable, or b after the end of that period, with approval of the Managers, repay to the Treasury the sum so paid to him with interest from the date on which it was paid to him provided that in any tax year the amount of the repayment together with— i the contributions made by him under article 5; and ii any contributions made by him pursuant to article 27 and Schedule 7, shall not exceed the smaller of 15 per cent of his pensionable salary and 15 per cent of the permitted maximum; and any sum to be paid to the Treasury under this article may, if the Treasury so allow, be paid by instalments over such period, not exceeding three years, as the Treasury think fit. 5 Any amount whether of principal or interest paid by the contributor to the Treasury under paragraph (4) shall be treated for the purposes of this article as if it were a contribution paid by him at the time when he makes that payment. 6 The Treasury shall deduct from the amount of any contributions which may be repaid to a person in accordance with the provisions of this article the amount certified by the Secretary of State in accordance with section 61(2) of the Pensions Act 1993 in respect of that person. 7 In calculating a participant’s reckonable service, no account shall be taken of any period in respect of which contributions paid by him have been— a refunded to him under this article; and b not subsequently repaid by him to the Treasury. Repayment of contributions after the death of the contributor 26 Where a person dies or has died— a without leaving a widow, widower or relevant child (within the meaning of article 14) who is, or may become, entitled in respect of that person to receive a pension under any of articles 12 to 14; and b in circumstances where the conditions specified in article 25(2)(b) and (d) were fulfilled in relation to him, but where he had not made a request for a refund of contributions under that article, the Treasury shall refund to his personal representative the contributions paid by the contributor and not previously refunded by him, with interest from the dates on which the contributions were paid respectively. Purchase of added years 27 1 Schedule 7 shall have effect with respect to the purchase of additional periods of reckonable service by participants, and subject to the provisions of that Schedule the aggregate period of reckonable service of a participant who purchases such an additional period shall be treated as increased by such period. 2 The provisions of Schedule 7 are without prejudice to any maximum pension imposed in relation to a participant under article 7(3) or 7(4). 3 For the purposes of article 7(5) any period of reckonable service (by way of an added year) purchased by a participant under any of the provisions of Schedule 7 shall be deemed to be a period of service to which section 1(2)(b) of the 1979 Act did not apply. Application of pensions 28 Regulation R1 of the 1993 Regulations shall apply to pensions under this Order. Payments due to deceased persons 29 Regulation R2 of the 1993 Regulations shall have effect with respect to a sum which (if any part of it due by way of interest is disregarded) does not exceed the amount of the limit for the time being specified by virtue of Orders made from time to time under section 6 of the Administration of Estates (Small Payments) Act 1965 , which is payable by the Treasury by virtue of the provisions of this Order as it has effect with respect to such a sum payable by the Trustees of the Parliamentary Contributory Pension Fund, and accordingly references in the said regulation R2 to the Trustees shall be construed as references to the Treasury. Deductions of tax from refunds of contributions 30 Regulation N5(1) of the 1993 Regulations shall apply on the making of any repayment of contributions (including interest on contributions) under article 25 as it applies on the making of any repayment of contributions (including interest on contributions) under regulation N1 of those Regulations and accordingly the reference to the Trustees in that regulation shall be construed as a reference to the Treasury. Protection against adverse alterations 31 Where a person has ceased to be a Representative before this Order comes into force and this Order puts him in a worse position in relation to an accrued right than he would have been in apart from the Order, he or (where he has died) persons who are or may become entitled by virtue of that right to or to the benefit of any pension, or a person acting on behalf of that person or those persons, may opt for the accrued rights to remain unaffected by this Order. Revocations, modifications, savings and transitional provisions 32 1 The European Parliament (United Kingdom Representatives) Pensions Order 1980 and the other Orders specified in Part I of Schedule 8 are hereby revoked to the extent there mentioned but, prior to its revocation, the said Order of 1980 shall be deemed to have had effect with the modifications set out in Part II of that Schedule. 2 The revocations have effect subject to the savings in Part III of Schedule 8. 3 The provisions of Part III of Schedule 8 do not affect the general operation of section 16 of the Interpretation Act 1978 (general savings to be implied on a revocation). 4 Part IV of Schedule 8 has effect with respect to transitional matters in connection with the coming into force of this Order. Michael Howard One of Her Majesty’s Principal Secretaries of State Home Office 21st June 1994