Pensionable service meaning

Legislation safeguards the pension entitlements of members of occupational pension schemes and other employment‑related benefit arrangements, including workplace personal pension schemes that receive employer contributions, while they are away from work on statutory family leave. Statutory family leave encompasses: maternity leave paternity leave adoption leave parental leave shared parental leave parental bereavement leave carer’s leave Maternity leave Occupational pension schemes are taken to include a maternity equality rule requiring periods when a member is on maternity leave to be treated in the same manner as periods when they are not on maternity leave. This maternity equality rule applies to both paid and unpaid ordinary maternity leave (OML), as well as to paid additional maternity leave (AML). As a result, under this rule, time spent on OML and paid AML in a defined benefit (DB) scheme is recognised as pensionable service...

Statutory right to cash equivalent Individuals in defined benefit workplace pension schemes have a legal entitlement to transfer the cash equivalent of their scheme benefits to certain other pension arrangements. From 30 November 2021, using this right requires meeting one of two conditions set out in the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, SI 2021/1237, designed to protect members from fraudulent schemes. The stated cash equivalent is guaranteed for a three‑month period. This statutory entitlement takes precedence over any conflicting terms in the scheme’s trust deed and rules. The right applies where a member’s pensionable service has ended at least one year before normal pension age and the member has accrued rights under the scheme. Members who continue in service after pensionable service ends only acquire a...

Statutory minimum increase rates The summary below sets out the current statutory minimum uplift that occupational pension schemes must apply each year to each tranche of pension. Period of pensionable service to which the pension relates (or, for money purchase benefits, the period in which contributions were paid): Before 6 April 1997 — no statutory minimum increase. However, to refund surplus assets to a sponsoring employer under the Social Security Pensions Act 1975, s 58A, it was necessary (until 5 April 2006) to revalue all pensions in payment (excluding GMPs and money purchase benefits) annually in line with RPI, capped at 5%. Despite the absence of a statutory minimum, most defined benefit schemes provide some pre-1997 indexation under scheme rules or as a discretionary benefit. As at March 2023, research indicates that only 17% of members of private sector defined benefit schemes receive no pre-1997 indexation on benefits. There have been calls on the government to legislate to mandate inflation-linked increases to pensions...

What is the background to the consultation? The consultation, ‘Local Government Pension Scheme in England and Wales: Access and fairness’, released on 15 May 2025, seeks to fundamentally enhance fairness in, and access to, the LGPS. It will examine five principal areas of concern: tackling survivor pensions and death grants reducing the gender pensions gap examining the high rate of opt-outs from the LGPS strengthening forfeiture provisions delivery of the McCloud remedy What is being proposed? The document explains that some proposals offer definitive resolutions to entrenched issues (for example, securing equal survivor benefit entitlement), while others begin longer-term work (including measures to reduce the gender pensions gap). We highlight two central reforms: revisions to survivor benefits and actions to improve the gender pensions gap. Survivor benefit entitlement Currently, survivors in same-sex marriages, survivors in same-sex civil partnerships, and female survivors of opposite-sex marriages and opposite-sex civil partnerships have pensions assessed on the member’s service from...

Original news Mr E (CAS-63587-P0K4)—22 September 2025 Summary The Pensions Ombudsman upheld a complaint concerning inaccurate information supplied by a pension scheme. Relying on the mistaken figures, the member left his role and proceeded to buy a home with a mortgage. As he had been expressly assured that the numbers were correct, the scheme could not fall back on the disclaimer contained in the benefit statement. The determination serves as a reminder that pension schemes cannot invariably place dependence on disclaimers in benefit statements. What were the facts? Mr E was a member of the Teachers’ Pension Scheme (the Scheme). His employment record was complex, including an opt‑out from 1990 to 1994 that was later reinstated. In 2014, a system fault caused the Scheme to wrongly credit Mr E with an extra five years of pensionable service. His May 2012 statement, which carried a disclaimer, quoted an annual pension of £15,886; by February 2014, the estimate had risen to over £21,000. Accordingly, the complaint succeeded. Those misapplied...

Original news Professor G (PO-17403) – 23 January 2024 Summary The DPO upheld a complaint about a public sector scheme that wrongly advised the complainant he could remain an active member past age 60. Suggesting he could, on an exceptional basis, continue to accrue benefits amounted to a negligent misrepresentation. It was also a breach of the duty to administer the scheme in line with the statutory regulations. The case serves as a reminder that scheme providers should not promise benefits that are not authorised by their scheme rules... What were the facts? Professor G became a deferred member of the NHS Pension Scheme (the Scheme) in 1985. NHS Business Service Authority (NHS BSA) was the Scheme’s administrator. The NHS Pension Regulations 1995 (the Regulations), SI 1995/2008, stated that members could not accrue further pensionable service or pay contributions in the Scheme after age 60. In April 2000, when he was over 60, Professor G received an offer of employment from a new NHS employer indicating...

Statutory framework At present, four principal pension schemes operate in England and Wales for members of the armed forces. These are: Armed Forces Pension Scheme 1975 (AFPS 1975) — formerly open only to the regular forces; closed to new members from 6 April 2006 and stopped future accrual from 1 April 2022 Armed Forces Pension Scheme 2005 (AFPS 2005) — likewise for the regular forces only; also closed to future accrual from 1 April 2022 Reserve Forces Pension Scheme 2005 (RFPS 2005) — open to full time reservists; again closed to future accrual from 1 April 2022 Armed Forces Pension Scheme 2015 (AFPS 2015) — open to the regular forces and all reservists; effective from 1 April 2015 There are also several other schemes, run by the same manager, that provide pension or other occupational benefits to armed forces personnel. This Practice Note focuses on AFPS 2015. The AFPS 2015 was established under section...

FORTHCOMING DEVELOPMENT : Section 10 of the Finance Act 2022 will raise the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028, excluding members of the firefighters, police and armed forces public service pension schemes. The same Act will additionally permit members of registered pension schemes to access benefits before age 57 where, on or before 4 November 2021, either of the following applied: they already held an unqualified right to take benefits from that scheme; or they were part-way through a substantive transfer to a scheme conferring an unqualified right to a protected pension age below 57 on or before 4 November 2021. These conditions preserve access to a protected pension age of under 57 where satisfied by that date. To rely on this new 2028 protection, the scheme’s rules must, as at 11 February 2021, have provided an unqualified right to draw scheme benefits before reaching 57. For more details, see Practice Note: Increasing the normal...

What is the Teachers’ Pension Scheme? The Teachers’ Pension Scheme (TPS) is a statutory public service pension arrangement for members of the teaching profession in England and Wales. Since 1 April 2015, the TPS has consisted of two schemes: The reformed TPS (often described in TPS literature as the ‘2015 Scheme’), established on 1 April 2015 under the Public Service Pensions Act 2013 (PSPA 2013) as a career average revalued earnings (CARE) scheme. This Practice Note concerns that scheme. The legacy TPS, created by the Superannuation Act 1972 (SA 1972) as a final salary scheme for those who joined before 1 April 2015. It closed to future accrual on 31 March 2022, while retaining a final salary link within that scheme. For more, see Practice Note: The legacy Teachers’ Pension Scheme. Separate schemes operate in Scotland and Northern Ireland and are outside the scope of this Practice Note. When the reformed TPS launched, the government acted to close the legacy TPS to...