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(a) becomes entitled to immediate payment of benefits under the Scheme, other than under regulation 26;

(b) does not make an election under regulation 64; and

(c) regulation 65(11) does not apply,

the appropriate administering authority must use the accumulated value of the contributions invested under paragraph (1) for the provision of additional pension benefits under a pension policy as soon as reasonably practicable.

    (3) However, if the member dies before the policy is entered into, the accumulated value is payable to his executors.

    (4) In entering into the pension policy the administering authority must give effect to the member's wishes about the benefits it provides, so far as is practicable.

    (5) The benefits must be money purchase benefits and their value reasonable considering the accumulated value.

    (6) The AVCs may be used only to provide benefits in the form of a lump sum if-

(a) all the pension benefits payable to or in respect of the member under the Scheme are being commuted under regulation 48 or 49; and

(b) the annual rate referred to in that regulation is not exceeded by aggregating with them the additional pension benefits provided by the pension policy entered into under paragraph (2).

Changes of employment in which membership is continued
     64.  - (1) If a member who is paying AVCs leaves his employment with the employer who was his employing authority when he elected under regulation 59(1) to pay them and enters a new employment in which he is also a member, he may elect that that election should continue to have effect.

    (2) However, he may only do so if he enters the new employment before the expiry of the period of one month and one day beginning with the date on which he left the former employment.

    (3) The election must be made by notice given in writing to the member's new employing authority before the expiry of the period of one month beginning with the date on which the new employment begins.

    (4) The new employing authority must send the notice of election to the appropriate administering authority in relation to the new employment.

    (5) The member may continue paying AVCs under his existing election with effect from his next pay day in his new employment after his election to continue.

    (6) However, he may not pay any AVCs to cover any period falling between the employments.

    (7) If the same authority are the member's appropriate administering authority in both employments, they must continue to apply any AVCs to be used for death benefits towards the pension policy mentioned in regulation 62 and continue to invest all other AVCs paid by him as specified in regulation 63(1).

    (8) If those authorities are different, the former authority must transfer to the new authority a sum equal to the accumulated value of the member's additional contributions invested under regulation 63(1).

    (9) They must also assign to the new authority their rights under any pension policy under regulation 62 in respect of him which are assignable.

    (10) The new authority must apply and invest the sum received and payments of additional contributions as mentioned in paragraph (7).

    (11) Regulation 63(2), this regulation and regulation 65 apply to changes in the new employment as if the election under regulation 59(1) had been given in that employment (and so on).

Elections as to use of accumulated value of AVCs
     65.  - (1) This regulation applies where a person-

(a) leaves his employment with the employer who was his employing authority when he made an election under regulation 59(1) or 64(1) without becoming entitled to immediate payment of pension;

(b) stops being an active member without leaving that employment;

(c) becomes entitled to an ill-health pension under regulation 26; or

(d) elects under regulation 59(9) to stop paying AVCs but continues to be an active member and attains the age of 50.

    (2) Where paragraph (1)(a) or (c) applies to a person he must elect to have the accumulated value of the invested additional contributions specified in regulation 63(2) used in one or more of the permissible ways and he may so elect where paragraph (1)(b) or (d) applies to him.

    (3) Where paragraph (1)(a) applies, the permissible ways are-

(a) to subscribe to an occupational pension scheme (other than the Scheme);

(b) to subscribe to a personal pension scheme (including an additional voluntary contributions scheme, other than a FSAVC scheme);

(c) to subscribe to a self-employed pension arrangement;

(d) to purchase an appropriate policy from one or more AVC insurance companies.

    (4) Where paragraph (1)(b) applies, the only permissible way is that mentioned in paragraph (3)(b).

    (5) Where paragraph (1)(c) or (d) applies, the only permissible way is to acquire transfer credits in the Scheme.

    (6) Those credits are calculated on the same basis as if a transfer value were being accepted for the member under regulation 121.

    (7) Where paragraph (1)(d) applies and the member becomes entitled to the payment of retirement benefits by virtue of an election under regulation 30 (early payments), those transfer credits shall be reduced to such percentage of the credits to which he would otherwise be entitled as is shown as appropriate in guidance issued by the Government Actuary.

    (8) Transfer credits acquired under paragraph (5) must not entitle the member to benefits in the form of a lump sum payable at retirement (and accordingly the period of membership with which he is credited for other purposes shall be adjusted appropriately in accordance with such guidance as may be issued by the Government Actuary).

    (9) Where paragraph (1)(c) or (d) applies, the election under paragraph (2) may only be made-

(a) while the member remains an active member; or

(b) not later than 30 days after he stops being an active member or such later date as the employing authority may agree.

    (10) However, the employing authority may not agree under paragraph (9)(b) to the election being made later than-

(a) one year before the member's NRD; or

(b) the expiry of the period of six months beginning with the date on which he stops being an active member,

whichever is later.

    (11) Where a person who has stopped being employed by an employing authority or being a member receives-

(a) an ill-health grant under regulation 26;

(b) a repayment of contributions under regulation 86; or

(c) a payment under regulation 87(2),

he must immediately be paid the accumulated value of the invested additional contributions mentioned in regulation 63(2).

(a) to make a contribution to the arrangements that the new employing authority have made under this Chapter for AVCs; or

(b) if-


(i) his new employing authority have established arrangements under this Chapter for the payment of SCAVCs, and

(ii) he has made an application to contribute under those arrangements which has been accepted,



to make a contribution to the new employer's SCAVCs arrangements.

    (2) Such an election must be made by notice in writing to the member's new employing authority and may be made only if the member enters the new employment before the expiry of the period of one month and one day beginning with the date on which he left the former employment.

    (3) The new employing authority must send a copy of any election under this regulation to the appropriate administering authority.

    (4) Where an election is made under paragraph (1)(a), it must specify-

(a) whether the member wishes the election to be treated as an election under regulation 59(1) in respect of the member's new employment; and

(b) if he does, the matters which require to be specified in such an election.

    (5) Where an election is made under paragraph (1) and different authorities are the member's appropriate administering authority in the two employments, the former appropriate administering authority must transfer to the new authority a sum equal to the accumulated value of the member's invested additional contributions.

    (6) Where the election is under paragraph (1)(a), the new appropriate administering authority must apply and invest the sum received as mentioned in regulation 63, together with any additional contributions falling to be so invested under that regulation by virtue of contributions made in respect of the new employment by virtue of any election which is treated as made under paragraph (4).

    (7) Where the election is made under paragraph (1)(b)-

(a) if the new authority consent, the former authority must assign to them their rights under any pension policy under regulation 69(1) in respect of the member which are assignable; and

(b) the new appropriate administering authority must apply and invest the sum received in the same manner as any SCAVCs made in respect of the new employment (other than those used to provide death benefits).

Termination
     71.  - (1) Where a member who is making SCAVCs-

(a) leaves his employment and does not enter new employment in which he is a member; or

(b) stops being an active member without leaving that employment,

regulation 65 applies as respects the elections he must or may make for the use of the accumulated value of the invested additional contributions specified in regulation 63(2) (as it applies by virtue of regulation 69(3)) as it would apply to a person in his circumstances as respects the accumulated value mentioned in regulation 65.

    (2) Where neither paragraph (1)(a) nor (b) applies and an employing authority or a member stops paying SCAVCs (otherwise than by reason of the member having left his employment and entered new employment in which he is a member), the employing authority must give notice to the appropriate administering authority.