Career Average Scheme members guide

​ Background and introduction

The Public Employees (Pensions) (Jersey) Law 2014 introduced the Public Employees’ Pension Scheme (PEPS). Regulations made under the law determine the scheme to be a Career Average Revalued Earnings (CARE) Scheme (or Career Average Scheme). The Career Average Scheme aims to provide pension benefits for you and your dependants when you retire or in the event of your death. The scheme benefits are calculated using the pensionable earnings you’re paid in each year you are a contributing member. The scheme aims to revalue your pension by Jersey RPI plus 1% every year whilst you continue to contribute.

This guide only applies to individuals who have joined the Career Average Scheme.

The information is based on the following legislations:

• Public Employees (Pension Scheme) (Administration) (Jersey) Regulations 2015
• Public Employees (Pension Scheme) (Membership and Benefits) (Jersey) Regulations 2015
• Public Employees (Pension Scheme) (Funding and Valuation) (Jersey) Regulations 2015
• Public Employees (Pension Scheme) (Transitional Provisions, Savings and Consequential Amendments) (Jersey) Regulations 2015

This is a guide to the scheme’s benefits provided by the above regulations. The PEPS members guide is for guidance purposes only and does not constitute legal, financial or investment advice. This guide is for general use and cannot cover every personal circumstance nor does it cover specific protected rights that apply to a limited number of employees. In the event of any dispute over your benefits, the appropriate legislation will prevail as this booklet does not confer any contractual or statutory rights and is provided for information purposes only. The guide may not be relied upon to claim entitlements greater than those provided for under the scheme’s legislation.

This guide describes the situation from the date it was last updated and should not be taken as a promise that provisions will not change. It m​ay be that changes are not immediately reflected in a revised version of this guide.

This guide explains the benefits available to you as a member of the Career Average Scheme. It describes how the scheme works, what it costs to be a member and the pension benefits that it aims to offer to you and your family.

If you have any questions about the Career Average Scheme, contact the Public Employees Pension Team on +44 (0) 1534 440227 or email PEPT@gov.je.

If you want to see a member of the PEPT at the Union Street Building you will need to make an appointment by calling or emailing the pensions team.

The Public Employees Pension Team (known as the PEPT or the Pensions Team) cannot provide legal, financial or investment advice.

About the scheme

There are 3 main pension schemes for public employees in Jersey:

• the Public Employees Pension Scheme (PEPS or Career Average Scheme)
• the Public Employees Contributory Retirement Scheme (PECRS or Final Salary Scheme)
• the Jersey Teachers’ Superannuation Fund (JTSF)

All 3 schemes have been set up to provide employees within the Government of Jersey, Admitted Bodies and accepted schools with a pension for life on retirement.

This guide focuses on the Public Employees Pension Scheme which provides Career Average benefits for:

• civil servants
• manual workers
• health workers such as doctors, nurses and midwives
• emergency services such as the Police, the Fire and Rescue Service and Prison Services
• Admitted Bodies

Admitted bodies are employers other than the States Employment Board which are permitted to be part of the Career Average Scheme, usually because of a present or historic link to the public sector.

The Career Average Scheme also provides benefits to family members and close dependants through survivor benefits. Benefits are payable to:

• spouses
• civil partners
• co-habiting partners
• eligible children
• dependants

The Career Average Scheme benefits are defined in the scheme legislation. Benefits under Career Average Scheme are calculated by reference to what is known as Career Average Revalued Earnings which means that you receive a pension based on a percentage of the pensionable earnings that you earn in each year you’re in active service.

The Career Average Scheme is administered by the Public Employees Pensions Team (PEPT) of the Treasury and Exchequer. The scheme is managed by a Committee of Management, which consists of:

• 6 employer nominated members
• 6 employee nominated members
• an independent chairperson

Notifying the Pensions Team

Remember to keep the Pensions Team informed of any changes to your circumstances. This can include any change of your address to ensure that we can keep in contact with you at any point.

You can update your contact details on your pension portal or find more information on updating your public service pension details.

Communicating to the member

The Pensions Team prefer to communicate to you via email or through gov.je. This can be more cost effective for the scheme. Contact us to let us know of any changes to your email address.

Key features

Pension

You build up pension while you’re an Active Member of the scheme. The amount of pension you build up is 1/66th of your pensionable earnings in each year. Whilst you’re an Active Member the aim of the scheme is to increase your pension by the Jersey Retail Prices Index plus 1%. This is subject to the schemes ability to pay. The pension is paid out at retirement for the rest of your life and will receive an annual increase, subject to below.

Tax-free cash

All members will have a one-off option to either commute some of their pension at retirement or commute some of their pension in employment into a tax-free lump sum. If you choose to take your lump sum whilst remaining in employment the amount that you will receive will be reduced to take into account that you are withdrawing part of your pension early.

Benefits payable on death or ill-health

As a member of the scheme you will receive immediate life cover and a pension for your spouse, civil partner, co-habiting partner, dependent, and any eligible children in the event of your death. A lump sum will also become payable if you die whilst an active member. If you ever become seriously ill and have a minimum of 2 years pensionable service in the scheme, you could receive immediate payment of ill health retirement benefits.

Benefits are not guaranteed

Your future benefits in the scheme are not guaranteed. The scheme is not a traditional balance of cost pension scheme, where a defined level of benefits would be guaranteed by your employer. If there is a deficit in the Fund employee benefits may be reduced to bring the Fund back to a balanced position.

The changes below are what can be applied if there is a deficit in the fund:

• the revaluation rate of your benefits whilst you are in employment may be cut to a minimum of 50% of Jersey RPI plus 1%
• the increase to your pension in retirement may be cut to a minimum of 50% of Jersey RPI 
• the increase to your pension in deferment may be cut to a minimum of 50% of Jersey RPI
• the rate at which you accrue future benefits may be reduced
• your employee contribution may be increased

Your benefits are dependent on the financial position of the pension fund remaining satisfactory. The financial position of the pension fund is determined every 3 years when the Scheme Actuary undertakes an actuarial valuation.

Freedom to choose when to take your pension

You do not need to reach your Normal Pension Age to take your payment of your pension. You can choose to retire and draw your pension before or after your Normal Pension Age. Your Normal Pension Age is simply the age you can retire and take the pension you have built up in full. Yet, if you choose to take your pension before your Normal Pension Age it will be reduced, as it's being paid earlier and for longer. If you decide to take it later than your Normal Pension Age it will receive an increase due to being paid later.

Tax relief

If you are a taxpayer, the real cost to you may, in fact, be less than the 7.75% or 10.10% you’re paying as your contributions may qualify for tax relief.

Furthermore, if you’re purchasing additional pension through paying additional voluntary contributions, you could also receive tax relief on any additional contributions that you may be paying.

Joining the scheme

Who can join

The scheme is available to all Government of Jersey employees who are on a permanent or fixed term contract. Membership is compulsory for permanent employees. Employees on a fixed term contract have the option to join the scheme.

Any option that you make as a fixed term contract employee will be binding for the period of the contract. You will have the option to opt in or out at each fixed term contract renewal. You will not be given the opportunity to back date your pension contributions for your previous contract.

Admitted employers may have different rules for joining the scheme. If you’re employed in an Admitted Body please contact your employer for further information.

Employees on a zero hour contract are not eligible to join the scheme.

Contributing to another pension scheme

You can continue to contribute another pension scheme, for example the Jersey Teachers Superannuation Fund (JTSF), or contribute towards a personal pension scheme approved under the Income Tax (Jersey) Law 1961 (as amended), as a member of Career Average Scheme.

Contribution rates

The rate of contributions that you will pay as a member of the Career Average Scheme will depend on which category of member you are.

For non-uniformed members, also known as Ordinary Members, the current contribution rate is 7.75%.

For uniformed members the current contribution rate is 10.10%.

Uniformed members include:

• Police Officers including the Chief Officer and Deputy Chief Officer
• Firefighters including the Chief Officer, Deputy Chief Officer and Officers in the Airport Rescue and Firefighting Service
• Prison Officers including the Prison Governor
• Emergency Ambulance Officers including the Chief Ambulance Officer and Assistant Chief Ambulance Officer
• Air Traffic Control Officers

Contributions are only payable on your pensionable earnings. Your pensionable earnings are defined as the total of all the salary and any pensionable allowances paid to you.

Payments on which you will not pay contributions include:

• overtime payments
  
• payments of a temporary nature
• payments in respect of untaken leave
• any travelling subsistence or any other allowance paid in respect of expenses
• payments in lieu of notice to terminate a contract of employment
• any payment for loss of future pensionable earnings or benefits

Always check your payslip to ensure that pension contributions are being deducted at the correct rate.

The contribution rate is dependent on the financial condition of the scheme and may be subject to adjustment following an actuarial review.

Contributions during child related leave

Child related leave means maternity, adoption and paternity leave.

If you’re intending to go on child related leave you and your employer must continue paying contributions on any pensionable earnings paid during your leave period.

If you’re on child related leave and receive 90% of your normal pensionable earnings, you and your employer must pay contributions based on 100% of your earnings.

If you’re intending to take unpaid child related leave you can request for that leave to be pensionable. Were you to do so, you must make a request in writing before you start the unpaid leave.

Whilst on unpaid leave, you and your employer will have to pay contributions based on 100% of the pensionable earnings that you would have earned over the unpaid period of leave. Contributions will be deducted from any pensionable earnings that you receive whilst on leave.

The above is only allowed under the current relevant Government of Jersey policy which is subject to change.

If you work for an Admitted Employer you will need to contract your employer for further information on child related leave. Their policies may differ from that of the Government of Jersey.

If you’re employed by an Admitted Body Employer, you will need their agreement to make any unpaid leave pensionable.

Employer contributions

Your employer currently pays a contribution rate of 16% of pensionable earnings for all members of the scheme. The scheme legislations caps the employer contribution rate at 16.5%. The employer contribution rate cannot increase above the cap.

Additional Voluntary Contributions (AVCs)

Members can use AVCs to increase their annual pension. You can also increase any lump sum should you decide to commute some of your pension on retirement or whilst in employment. Payment of AVCs will also increase any survivor benefits in the event of your death. 

There are 3 ways to pay AVCs to purchase additional pension:

• paying a singular amount out of your monthly or weekly pensionable earnings. For example, £500 in a single payment
• paying a regular fixed amount out of your monthly or weekly pensionable earnings. For example, £20 per month or per week
  
• paying a set percentage of your monthly or weekly pensionable earnings. For example, 5%

If you decide to pay a regular fixed amount it may buy a smaller amount of pension in future years because the rates are age-based. To start paying AVCs complete the form available on purchasing additional pension.

Each year you get closer to your Normal Pension Age the amount you pay will buy less and less additional pension. If you want to continue purchasing the same amount of pension each year, you will also need to increase your annual AVC contribution each year.

If you pay AVCs as a percentage of your salary the amount you pay will change each year in line with any changes to your contractual salary.

If you choose to pay by a regular fixed amount or by a fixed percentage, you can choose to make an open-ended commitment. You can continue to contribute every month/week, until you leave, retire or decide to stop your AVCs arrangement.

If you are finding it difficult to pay AVC’s, you can give notice to stop paying. Though, if you do you will only receive additional pension based on the AVCs you have paid into the scheme.

The terms for future AVC payments will be subject to regular review.

You can find further information on AVCs on purchasing additional pension or through the Pensions Team.

Pension benefits

When you can receive your pension

As an ordinary member of the scheme your Normal Pension Age is linked to the Island wide Jersey State pension age. The State pension age is due to rise to age 67 by 2031, with phased increases from 2020. The following chart shows how the increase in the Jersey State Pension Age impacts the Normal Pension Age for some members.

Check your pension age

If you are a uniformed member your Normal Pension Age will be age 60.

Retiring earlier or later than your normal pension age

If you are an ordinary member and you want to retire earlier than your Normal Pension Age, you have the option to take your benefits up to 10 years early. If you are a uniformed member you will be able to take early retirement up to 5 years early.

If you choose to take your benefits before your Normal Pension Age your benefits will be reduced to take account of them being paid earlier and for longer. The amount of reduction will be based on guidance supplied by the Scheme Actuary.

This information will be made available to all employees to assist them in making their decisions. It is important to contact the Pensions Team in advance of your intended retirement date so that they can provide you with details.

If you want to carry on working beyond your Normal Pension Age your benefits will attract an enhancement as you will be delaying the payment of benefits to a later date meaning that they may be paid for a shorter period. The amount of enhancement will also be based on actuarial guidance.

Deferred Final Salary Scheme pension

Having a deferred pension is one that you are no longer contributing towards but have not yet begun to take payment of. If, prior to becoming a member of Career Average Scheme, you had an entitlement under the Final Salary Scheme to a deferred pension, then those benefits will be payable in accordance with the Regulations under which it was accrued.

Becoming a member of Career Average Scheme will not affect the age at which you will be able to draw your deferred Final Salary Scheme benefits. Furthermore, you will be able to draw your deferred Final Salary Scheme benefits and remain in scheme employment.

For example, if you were a non-uniformed member of the New Members Regulations 1989, first employed before 1 January 2006, you can currently decide to receive your deferred benefits from age 60 without any deduction for drawing your pension early. This will remain the case. You will be entitled to start receiving your benefits on this basis even if you continue in employment. You cannot however draw your Career Average Scheme benefits whilst remaining in employment.

What your pension benefits consist of

Your Career Average Scheme benefits are made up of:

• an annual pension that will be increased in active service each year by Jersey RPI plus 1% subject to the scheme’s ability to pay
  
• the option to commute part of your pension for a Tax Free lump sum
  

How your pension is calculated

Under Career Average Scheme each member will have a pension record and in each scheme year a proportion of that year’s earnings will be added to that pension record.

The current rate at which you will build up pension in each scheme year is 1/66th of the amount of that years pensionable earnings, and any notional pensionable earnings, you are paid, whether or not it is earned in that scheme year. The accrual rate of 1/66th may be subject to change following an actuarial valuation.

If, during the scheme year, you were:

• due to ill health, on reduced or no pay
  
• on maternity or adoption leave
  
• your salary had been reduced other than by agreement, but you continued to pay contributions as if the salary had not been reduced
  

Your pension will be based on what we call your Notional Pensionable Earnings. This is explained in detail in the glossary at the back of the booklet but will typically mean the amount you were paid before the salary was reduced or stopped.

The amount of pension built up during the scheme year is then added to your pension record. The total of your accrued pension is then revalued annually at the end of the following year by the Jersey Retail Prices Index plus 1%, subject to the scheme’s ability to pay.

If you are paying AVCs then the amount of pension you receive each scheme year from these payments will be added to your pension record and will be included in the revaluation.

If you transferred in a pension from another pension provider, the amount of pension that the transfer purchases will be added to your pension record in the scheme year in which the transfer value is received and revalued accordingly.

At the beginning of each scheme year your pension record will have an opening balance; the opening balance shows the total value of the pension you have built up to the end of the previous year. At the end of each scheme year that opening balance is revalued. The aim of revaluation is to maintain the value of your pension in line with the rate of inflation.

The revalued opening balance and the amount of pension that you build up in the scheme year are added together to create the closing balance for that year. The closing balance then becomes the opening balance for the following scheme year.

Example of how your pension is worked out

Below in an example of a pension record for a member with 5 years’ service in the scheme.

Let us assume that the member joined on 1 January 2016, pensionable earnings are £26,400 in scheme year 1 and pensionable earnings increase by 1% each year. Let's also assume that the Jersey  Retail Prices Index plus 1%, the revaluation adjustment, is 3.5% each year.

If you retire from active service, or die, in the middle of a month benefits will not be payable until we have received and recorded all your pensionable earnings for that month. This will mean that your pension or a survivor pension will not be payable until the end of the following month. Your first pension payment will include backdated pension to the date at which you initially retired.

If you receive any further pensionable earnings after your pension record has been closed, your pension record will be adjusted to take account of the additional accrued pension from those earnings. Any lump sum taken will not be adjusted.

All benefits will be paid monthly and can only be paid into your bank account. A pension must be paid into the members account to whom the pension relates.

Small pensions for members over age 60

From 1 January 2024, if the total value of your pension at retirement is less than £50,000 and you are age 60 or over, you have the option to take this as a one off lump sum.

The lump sum is taxable. 70% being taxed at half the standard income tax rate. Members choosing this option are reminded that no further liability for benefits remain in the scheme. It is important to contact the Pensions Team in advance of your intended retirement date for further details.

The one off lump sum has to be paid in a single payment to one bank account or by a singular cheque. You cannot split a lump sum amount into multiple payments.

Paying Additional Voluntary Contributions

If you are purchasing additional pension through AVCs, your pension on retirement will include the additional amount of pension purchased, including any revaluation increases that the additional pension attracted from commencement until the date payment ceased.

If you choose to retire early and draw your benefits before your Normal Pension Age, your additional pension will be actuarially reduced for early payment along with your normal pension.

If you retire after your Normal Pension Age, the amount of extra pension you have bought will be actuarially increased to take into account the fact that it is being paid later.

Pension Payments and Taxation

If you retire and remain living in Jersey then your pension will not receive a deduction for tax. Each year you will have to inform Revenue Jersey of your pension income on your tax return. You can if you wish request for tax deducted from your pension at source, you need to discuss this with Revenue Jersey.

If you retire and opt to live outside of Jersey then the pension team will have to deduct 20% tax from your pension. If you can pay tax on your pension income in the country that you have moved to them you will need to contact Revenue Jersey to understand how to have your pension paid without deduction of tax.

If you are a pensioner who has moved to live in another country then you will need to inform the pensions team so that they can start to deduct 20% tax from your pension. The pensions team reserve the right to reclaim unpaid tax from the date you move out of Jersey.

Converting some of your pension into a lump sum at retirement

When you draw your pension you will be able to take up to 30% of your benefits as a one off tax free lump sum. Every £1 of pension that you commute you will receive £13.50.

Example of how a lump sum taken at retirement is worked out

If you have an annual pension of £10,000 (£833.33 per month) and you commute 30%, your lump sum will be £10,000 x 30% = £3,000 x £13.50 = £40,500.

After you have taken a lump sum your residual annual pension will be calculated as follows:

Starting pension of £10,000 – £3,000 (amount commuted for lump sum) gives a residual annual pension of £7,000 (£583.33 per month).

An option to take a lump sum must be made in writing before your benefits are paid. To ensure that you have sufficient time to decide it is important to contact the Pensions Team in advance of your intended retirement date for more details. You will only be able to take one lump sum payment and the amount of pension that you have commuted into a lump sum cannot be changed once the pension is in payment.

Taking a lump sum whilst remaining in employment

You will have the option, within 10 years of Normal Pension Age for ordinary members or within 5 years of Normal Pension Age for uniformed members, to request a one off lump sum whilst remaining in employment. Similar to taking a lump sum at retirement, you will be able to commute up to 30% of the pension accrued up to the date of the request.

For every £1 of pension that you commute you will receive £13.50. As you are receiving the lump sum early, and before you retire, it will be subject to an actuarial reduction.

Example of how a lump sum taken in employment is worked out

Below is an example of an ordinary member who has requested a lump sum in employment 7 years before their Normal Pension Age.

Assume that the member’s accrued pension is £10,000 and they want to take the full 30% as a lump sum. Also assume that the actuarial reduction is 3.5% for each year the lump sum is taken early.

A lump sum of 30% from an accrued pension of £10,000 (£833.33 per month) would be £10,000 x 30% = £3,000 x £13.50 = £40,500.

After taking the lump sum the residual accrued pension would be £10,000 – £3,000 (amount commuted for lump sum) = £7,000 (£583.33 per month).

The amount of lump sum the member would receive, following the actuarial reduction for taking the lump sum early, would be as follows:

• assumed actuarial reduction: 3.5% x 7 years = 24.5%
• lump sum reduction: £40,500 x 24.5% = £9,922.50
• remaining lump sum following actuarial reduction: £30,577.50

If you have transferred in benefits from which you have previously taken a lump sum you will not be allowed a further lump sum on those benefits. You will only be able to take a lump sum on the benefits you accrued as an active member.

All lump sums must be paid in a single payment to one bank account. You cannot split a lump sum amount into multiple payments.

Ill Health Pension

Find more information on the procedure and process for ill health retirement.

Retiring early due to permanent ill health

If you have to leave work due to illness or injury you may be able to receive immediate payment of your benefits.

To qualify for ill health benefits you must have at least 2 years’ service in the scheme and your employer, on an opinion from an Independent Occupational Health Advisor as appointed by the States Employment Board, must be satisfied that:

• you are unlikely to be able to perform your current duties due to your ill health or injury, and
  
• you meet the criteria for one of the categories of ill health pension as stated below
  

Ill health benefits can be paid at any age and are not reduced on account of early payment. In fact, your benefits could be increased to make up for your early retirement dependent on the level of ill health pension you have been awarded.

There are 2 categories of ill health pension, Un-enhanced and Enhanced:

Un-enhanced Ill Health Pension

If your employer is satisfied that you are unlikely to be capable of performing your current duties due to your ill health or injury but you are capable of undertaking any other employment before your Normal Pension Age, your ill health benefits will be based on the pension you have built up at your date of retirement.

Enhanced Ill Health Pension

If your employer is satisfied that you are unlikely to be capable of performing your current duties due to your ill health or injury and you are unlikely to be capable of undertaking any employment before your Normal Pension Age, your ill health benefits will be based on the pension you have built up at your date of retirement and may include additional pension based on your length of service in the scheme, as set out below.

The level of enhancement for an enhanced ill health pension is as follows:

• if your service in the scheme is less than 5 years you will not receive an enhancement
• if your service in the scheme is between 5 and 10 years your service will be doubled
• if your service in the scheme is between 10 years and 13 and a third years then your service will be increased to 20 years
• if your service in the scheme is more than 13 and a third years you will receive an additional 6 and 2 thirds years’ service

All enhancements will be capped at the service you would have been built up had you stayed in scheme employment until your Normal Pension Age. For example, if you have a Normal Pension Age of 67, you are awarded an enhanced ill health retirement at age 59 and you have 10 years’ service, you will only receive an enhancement of 8 years instead of the 10 years that would be allowed due to your length of pensionable service. This is due to the 10 year enhancement taking your total service past your Normal Pension Age.

The Committee of Management reserve the right to review any ill health retirement case and, where appropriate, may request a member who is receiving an ill health retirement pension to undergo further medical examinations to ensure that they still meet the criteria of their ill health pension. All further medical examinations will be performed with an independent medical advisor appointed by the Committee of Management.

Where the member refuses to undergo an examination, the Committee have the authority under the Regulations to withhold some or all of the member’s pension.

Serious Ill Health Commutation

If you have undergone a medical examination for ill health retirement and the Independent Occupational Health Advisor has stated in their report that you have less than 1 year to live, you will be offered the option to commute your entire accrued pension including any enhancement for a tax free lump sum.

If you opt to commute your pension you will be offered 30% of accrued pension at £13.50 for every £1 given up and for the remaining 70% you will receive £5 for every £1 of pension.

If you opt to commute your entire accrued pension, it will not prohibit any survivor pension from being paid to a surviving partner, dependant or child in the event of your death.

Transferring pension rights into the Career Average Scheme

If you are considering transferring your benefits from a UK public service pension scheme, please contact the Pensions Team. The Cabinet Office have agreed that the Career Average Scheme is within the Public Sector Transfer Inner Club.

How you can transfer

Before considering transferring any benefits into the scheme, other than Final Salary Scheme benefits which cannot be transferred into the Career Average Scheme under any circumstance, we recommend you seek independent financial advice on any proposed transfer. You need to understand the implications of transferring from your previous arrangement.

To begin the transfer process, you should contact the Pensions Team. Find more information on the process including transfer in request forms on transferring in a previous pension.

To be able to take advantage of transferring under the Public Sector Transfer Club rules the Pensions Team must receive, within 12 months of you becoming eligible to join or re-join the Career Average Scheme, written confirmation that you wish to proceed with your transfer under the Public Sector Transfer Club rules. Find more information below.

If you are not transferring your pension through the Public Sector Transfer Club you can make the request at any time after joining the Career Average Scheme.

Transferring your pension rights from a UK Public Sector Pension scheme

To ensure your benefits are transferred under the Public Sector Transfer Club rules, the Pension Team must receive your completed and signed Transfer documentation within 12 months of you becoming eligible to join. If you wish to Transfer in your benefits please notify the Pensions Department without delay to begin the process.

If you do not return the Transfer forms within the 12 month time limit that you wish for the transfer to proceed, your benefits will be transferred in on a non-Club basis and you may receive a lesser amount of pension as a result.

The Public Sector Transfer Club is split into the Inner Club and the Outer Club. The Inner Club refers to transfers of CARE benefits between Public Sector Schemes that operate on a CARE basis. The Outer Club refers to transfers of Final Salary benefits between Club schemes that operate on a Final Salary basis.

If you transfer Final Salary benefits under the Public Sector Transfer Club rules the benefits you will receive will be based on the Government of Jersey’s closed Final Salary Scheme called the Public Employees Contributory Retirement Scheme. Final salary benefits will be converted into added years and days and linked to your final salary on leaving scheme employment, either through retirement or by other means.

The Inner Club refers to transfers of CARE benefits between Public Sector Schemes that operate on a CARE basis. If you transfer in CARE benefits under the Public Sector Transfer Club rules, the Career Average Scheme will undertake to revalue those transferred in benefits in accordance with PSTC rules. Where CARE benefits transferred from a scheme with a revaluation rate linked to the UK Consumer Prices Index those benefits will be revalued by a revaluation rate linked to Jersey RPI whilst in Career Average Scheme.

If you have a break of more than 5 years between leaving your previous Public Sector Scheme and joining the Career Average Scheme your transfer may not be dealt with under Club rules.

For further information on whether you can transfer your previous schemes benefits through the Public Sector Transfer Club, please contact the Pensions Team.

Transferring pension rights from a personal pension scheme or a previous occupational pension scheme

If you opt to transfer pension rights from a personal pension scheme or a previous occupation pension scheme then a sum of money called a transfer value is offered to buy an amount of additional pension which is added to your pension record. If you transfer your previous pension rights into the Career Average Scheme your retirement benefits under the Career Average Scheme will increase. The additional pension is added to your pension record in the scheme year that the transfer payment is received.

Pension transfer general information

Any request you make to investigate a transfer will not be binding until you have been supplied with full details of the amount of extra pension the transfer payment will buy and you subsequently confirm that you wish the transfer to go ahead. Transfer quotations provided by a former pension provider are guaranteed for 3 months.

The Career Average Scheme, like many other pension schemes, reserves the right to revise, increase or decrease, a transfer value which has been found to be incorrect.

You will need to carefully consider whether to transfer or not, as a transfer may not always be advantageous. For example, you should compare the amount of extra pension the transfer payment will buy in the Career Average Scheme, when that pension is normally payable from, for example, your Normal Pension Age, and the other Career Average Scheme benefits, such as the ability to retire and draw benefits earlier than Normal Pension Age, death and survivor benefits, against the value of the package of benefits your previous pension scheme provides. 

Transfers from public sector schemes are treated differently if transferred in under Club transfer rules, see pension rights from a UK Public Sector Pension scheme where Club Transfer Rules apply for more information on this type of transfer.

Transferring your pension rights is not always an easy decision to make, and you may wish to seek the help of an independent financial adviser.

If you transfer in benefits and then take a lump sum in employment in the same year this could affect the amount of revaluation that you receive on your opening balance.

Previous pension in the Final Salary Scheme

If you have deferred benefits in Final Salary Scheme you will not be able to transfer those benefits into the Career Average Scheme. The benefits will be preserved in Final Salary Scheme until you become eligible to draw them.

Transferred in Final Salary benefits

If you have transferred in any final salary benefits under the Public Sector Transfer Club rules, the benefits you will receive will be based on the Final Salary Scheme’s New Members Regulations 1989.

Your benefits from your transfer in will be based on an accrual rate of 1/80th and the final salary will be calculated as the salary received in the best 365 successive days in the last 3 years of employment at the time of your retirement or leaving scheme employment.

You will also have the option to commute up to 30% of your transferred in final salary benefits for a lump sum at retirement. For every £1 of pension that you give up you will be given £13.50 in lump sum.

Any qualifying service connected with a transfer-in of final salary benefits will be recognised for the benefits under Career Average Scheme.

When you can receive your transferred in Final Salary benefits

You will be able to draw your final salary benefits from the Normal Retirement Age as stated in the New Members Regulations, which is age 65 if you are an ordinary member or age 55 if you are a uniformed member. If you are employed as a prison officer you will be able to defer payment of your transferred in Final Salary Scheme benefits from after age 55 up to age 60.

If you are an ordinary member you may choose to take your pension before your Normal Retirement Age, though you would have to leave employment. Unlike deferred benefits, you cannot draw your transferred in final salary benefits early and remain in employment.

If you choose to receive the final salary benefits you transferred in before your Normal Retirement Age then you will face a reduction of 2.4% for each year you retire early, up to a maximum 12% reduction.

For example, your normal pension age is 65 and you decide to retire and take receipt of your final salary benefits at age 61. As you are retiring 4 years early you will receive a 2.4% reduction for each year, which means that your benefits will be reduced by 9.6%.

If your annual pension was £10,000 (£833.33 per month) your reduction would be £10,000 x 9.6% = £960. Leaving you with an annual pension of £9,040 (£753.33 per month).

If you are a uniformed member you cannot request payment of your benefits before age 55.

• Normal Pension Age is the term used for the age under Career Average Scheme at which you can receive payment of your pension unreduced
  
• Normal Retirement Age is the term used for the age under Final Salary Scheme at which you can receive payment of your pension unreduced
  

If the Normal Pension Age under the Career Average Scheme is greater than your Normal Retirement Age under the Final Salary Scheme, you can choose to receive your transferred in benefits at your Final Salary Scheme Normal Retirement Age, remain in employment and continue to accrue further pension in Career Average Scheme until you choose to leave employment or retire.

Leave of Absence and the Career Average Scheme

Being on sick leave

If you are off work due to sickness, your benefits will continue to build up as if you were working normally and receiving your full pensionable earnings, and you will continue to pay contributions on any pensionable earnings that you are paid over the period of sick leave. If you go into a period of unpaid sick leave you will not have to pay any additional contributions and your benefits will continue building up at their full rate.

The benefits you build up over your period of sick leave is based on your full pensionable earnings. Where you have taken a reduction in your earnings, or where your pay has stopped, the amount of benefits that you would build up is based on Notional Pensionable Earnings. Typically amounting to what you were earning before pay was reduced or stopped.

Using Notional Pensionable Earnings to calculate your entitlements will make up for fact that you would not be paying contributions out of your ordinary salary. This will mean that you will continue to build up your benefits in the Career Average Scheme as if you were working normally and receiving your full pensionable earnings.

If we use your Notional Pensionable Earnings it will be based on your current employment only. Notional Pensionable Earnings will be calculated using the earnings of your most recent period of pensionable employment.

Being on parental leave

During any period of parental leave where you are being paid pensionable earnings you will continue to build up your pension as if you were still working and receiving full pay.

The following is based on the Government of Jersey parental leave policies. If you work for an Admitted Employer you will need to contact your local HR department regarding your entitlement during your maternity, adoption or paternity leave as they may differ from what is stated in this booklet.

Parental leave at full pay

In the first 20 weeks of your parental leave you will continue to contribute on 100% of your pensionable earnings and as a result you will continue to build up pension as normal.

Parental leave at no pay

During any period of parental leave where you will not be paid you can request that you and your employer continue to pay contributions for this period. 

Where you have made such a request, you and your employer will be required to pay contributions based on 100% of the earnings that you would have earned had you returned to work and were receiving 100% of your earnings.

Your personal contributions for the unpaid period of maternity or adoption leave are deducted from the paid element of the maternity or adoption leave along with the employees and employers normal contributions.

Where your pensionable earnings have been reduced or you are no longer receiving pensionable earnings, we would use notional pensionable earnings to calculate the amount of pension that you would receive. Using notional pensionable earnings will make up for the pensionable earnings you are not receiving which means that you will continue to build up your benefits in the Career Average Scheme as if you were working normally.

The contributions for the unpaid paternity period of leave can either be deducted from any pensionable earnings before you go on paternity leave or be split by paying 50% through the pay received whilst on leave and 50% on returning from leave.

Where you are no longer receiving pensionable earnings, we would use notional pensionable earnings to calculate the amount of pension that you would receive.

On unpaid leave of absence or on strike

If you are granted an unpaid leave of absence, or you are absent for a day or more due to a trade dispute, the period will not count for pension purposes. Also, you cannot opt for you and your employer to pay contributions to make up for the loss of pensionable salary received. Time spent on unpaid leave of absence or on trade disputes will not affect any eligibility criteria for payment of survivor or ill health benefits.

Changing employment category

If you are employed in the Government of Jersey or an Admitted Body and you are considering changing employment from a uniformed member of the scheme to an ordinary member of the scheme or vice versa there are implications to your pension benefits.

Moving between scheme categories

If you are currently a uniformed member and you are moving into an ordinary position the benefits that relate to your uniformed member position will become deferred and will be payable at age 60 or from age 55 subject to an actuarial reduction.

If you are moving from being an ordinary member to a uniformed member, your ordinary member benefits will become deferred. Your deferred benefits will be payable at the ordinary member normal pension age, or up to 10 years earlier subject to a reduction.

How long you have been a member of the Career Average Scheme can affect certain benefits, particularly ill health retirement. For example:

• if you have 10 years of service as a uniformed member
• you then change to become an ordinary member for 5 years
• regarding your Ill Health Benefits, it is as if you had been an ordinary member for 15 years

You cannot transfer your deferred pension into your active pension record when you change your scheme category in employment.

Revaluation and pension increases

Following the change in your employment category, your deferred pension will receive an annual increase of Jersey RPI. Your pension in active service will continue to increase by Jersey RPI plus 1%. All increases are subject to the scheme’s ability to pay. Your benefits may receive a lower rate increase if the pension fund is in deficit.

Leaving Employment before retirement

If you have been in the scheme less than 5 years and you leave before retirement there are 3 options available to you:

• you will be able to claim a refund of your contributions, less a 10% deduction for tax. We cannot refund any employer contributions.
• you may be able to transfer your benefits to a new pension arrangement
• you can choose to keep your benefits in the Career Average Scheme. your benefits will become deferred and will receive an annual increase of Jersey RPI, subject to the scheme’s ability to pay

If you leave employment after completing 5 years or more service you will not be eligible for a refund of contributions. You will remain eligible to transfer your benefits or keep them in Career Average Scheme as deferred benefits.

If you return to pensionable employment in the same category (Ordinary to Ordinary or Uniformed to Uniformed), we will re-open your deferred record. We will continue to use your record for your new active pensionable employment.

 When we reopen your deferred record you are no longer eligible for any leaver benefits. You will no longer have a deferred record as you will be building up benefits on that record under your new employment.

5 year time limit as a uniformed and an ordinary member

If you change your category without a break in service, we look at all the time you have been in the scheme when applying the 5 year rule. When you leave service we go back to your original start date to see how long you have been in the scheme.

5 year time limit if you have different periods of scheme employment

If you re-join the scheme as the same type of member your period of service will be treated as continuous. For example, if you were a uniformed member and become one again, or if you were an ordinary member and one again.

For example, if you left as a uniformed member with 3 years service and re-joined as a uniformed for a further 4 years, you will have built up 7 years of pensionable service.

As you have worked for another 4 years you have gone over the 5 year limit. This means that you have lost the ability to have a refund of contributions.

Deferred benefits

A deferred benefit is the amount of pension that you have built up in your active member record up to the date you leave employment.

Your deferred benefits remain in the scheme until you either:

• transfer them to another pension scheme
• request a refund of contributions, if you have less than 5 years’ service
• wait for the deferred benefits to become payable as a pension

Your deferred benefits consist of an annual pension payment and an option, on retirement, to exchange some pension for a one off tax-free lump sum.

Let us know what decision you have made regarding your deferred benefits using the online form on retiring from or leaving a public service pension scheme.

Calculation of deferred benefits

Your deferred pension is the value of the pension you built up whilst an active member of the scheme.

When you draw your deferred benefits you will have the option to commute up to 30% of your annual pension for a one off tax-free lump sum. You receive £13.50 lump sum for each £1 of annual pension.

Increases to your deferred benefits

The aim of the scheme is to increase your deferred benefits every year in line with the  Jersey Retail Prices Index. Once your deferred benefits are in payment the scheme aim is to continue to pay annual increases. All increases are subject to the scheme’s ability to pay.

Payment of your deferred benefits

As an ordinary member of the scheme your deferred benefits are payable in full from your Normal Pension Age. Your normal pension age is linked to the Jersey island wide State Pension Age. The Jersey island wide State Pension Age is due to rise from age 65 to age 67, phased in over the period from 2020 to 2031.

The deferred pension for a uniformed members is payable in full from their normal pension age of 60.

Your deferred benefits are also payable earlier than your normal pension age. As an ordinary member this would be up to 10 years before your Normal Pension Age and for a uniformed member this would be from age 55.

There will be a reduction applied to your pension benefits if you choose to take them before your normal pension age. The amount of reduction will be based on guidance supplied by the scheme Actuary. It is important to contact the Pensions Team in advance of your intended retirement date so that they can provide you with more details.

Survivor pension payable before receiving deferred benefits

If you are entitled to a deferred pension and die before payment commences, the following will apply.

A survivor pension will be paid to a surviving partner or to a dependant. A surviving partner would be:

• your spouse
• registered civil partner
• your co-habiting partner, subject to certain qualifying conditions

The survivor pension is payable immediately after your death for the rest of their life. The fund aims to increase survivor pensions in line with the Jersey Retail Prices Index, subject to the scheme’s ability to pay.

A survivor pension is equal to one-half of your deferred pension calculated from the date you left the scheme, including any pension increases up to the date of your death. If you do not leave a surviving partner the pension may be payable to a dependant. If there is more than one dependant, the pension will be distributed between them in accordance with the Scheme Regulations.

It is a decision of the Committee of Management whether to pay a dependants pension. They will only make a decision once they have received sufficient evidence.

If your surviving partner is younger than you by more than 20 years their pension will face a reduction. The reduction to the survivor’s pension will be 2.5% for each year by which the survivor’s age is more than 20 younger than you at the date of your death. The highest reduction applicable to a survivor pension is 50%.

For example, a member aged 50 dies leaving a surviving partner aged 20. As the surviving partner is 30 years younger than the member the survivor pension would face a reduction of 25%.

This is due to the age gap between the member and the spouse being 10 years over the 20-year limit. As a result the 10 years attracts a 2.5% reduction per year, or 25%.

Children’s pension payable before receiving deferred benefits 

Where there are 1 or 2 children, each child will receive a pension equal to one-half of the survivor pension. Where there are more than 2 children, each child will receive an amount equal to a survivor pension split equally between each child.

Where there is no survivor pension to be paid, then the child’s pension will be doubled.

Where a survivor has had their pension reduced, due to them being over 20 years younger than the deceased member, the child’s pension will be based on the reduced survivor pension.

Deferred benefits on returning to active membership

If you return to pensionable employment in the same scheme category, we will reopen your deferred pension record. Your deferred benefits will automatically be merged with your new active member pension record. This means that it is treated as one continuous period of service.

However, if you left as an ordinary member and returned as a uniformed member, or left as a uniformed member and returned as an ordinary member, and you previously deferred your benefits, on returning to service your benefits would remain deferred and would become payable ​in accordance with your previous membership status.

If you have deferred benefits in the Final Salary Scheme built up before 1 January 2016, you will not be able to transfer them or merge them into the Career Average Scheme. They will only be payable in accordance with the Final Salary Scheme Regulations to which they relate. 

Conversion of deferred benefits in to a one off lump sum

From 1 January 2024, if the total value of your deferred benefits is less than £15,000, you have the option to take your benefits as a one off lump sum. If you choose this option the lump sum will receive a 20% tax deduction, which is the standard income tax rate.

Deferred benefits which include transferred in benefits cannot be converted into a one off lump sum. The total value of your benefits is different from how much you would expect to be paid per year when the entitlement to receive a pension falls due. The value is based on what the scheme actuary determines as being a fair amount to pay you today instead of waiting to receive the benefits on retirement.

If you have any potential survivor beneficiaries such as a spouse, civil partner, dependant or children under the age of 23 years, you are strongly recommended to discuss your intentions with your potential beneficiaries before making a decision.

Refund of contributions

Calculation of a refund of contributions

If you leave the scheme before completing 5 years’ service you can choose a refund of contributions. A refund of contributions will include any pension contributions you have paid and any AVCs you have paid. A refund of contributions will have a deduction of 10% for tax purposes to take account of any tax relief gained when the contributions were paid into the scheme.

Where a refund of contributions has been made from the scheme in respect of your benefits in Career Average Scheme, you will lose your entitlement to any further benefits from the scheme and so would any person who might receive benefits from the scheme should you die.

If you have transferred in pension from a UK transferring arrangement on which you cannot receive a refund, you will need to contact the Pensions Team to enquire as to what contributions you will receive. 

No interest is payable on a refund of contributions.

Transfer out

Where you are considering transferring your benefits out of the Career Average Scheme, we recommend you seek independent financial advice so you understand the implications of transferring to a new arrangement and what this means for you.

Where you can transfer your pension to

If you are joining another pension arrangement, you may wish to consider transferring your PEPS benefits to it.

You may be entitled to transfer your benefits to another pension scheme approved under the Income Tax (Jersey) Law 1961 as amended. If the employer is a member of the UK Public Sector Transfer Club arrangements, then you have up to a year from the date you become eligible to join the employer's scheme to request a transfer estimate and agree to the transfer proceeding. 

If your new employer is not a member of the UK Public Sector Transfer Club you may still be entitled to a cash equivalent transfer. In either situation you are strongly advised to speak with your prospective employer about your transfer options.

Where a transfer has been made from the Fund in respect of your benefits in Career Average Scheme, you will lose your entitlement to any further benefits from the scheme and so would any person who might receive benefits from the scheme should you die.

Protection for your family

Benefits payable on death in employment

Death in Service Lump Sum

If you die in service as a member of the Career Average Scheme a death in service lump sum of 3 times your pensionable earnings is paid at your date of death, no matter how long you have been a member of the Career Average Scheme. 

The lump sum to be paid will be calculated by using your pensionable earnings earned over the best 365 consecutive days in the 3 years prior to the date of death.

If you have been employed for less than 3 years then it will be the best 365 days period of your employment.

If you have been employed for less than a year the lump sum will be based a full year’s equivalent pay.

To ensure that the lump sum is paid to the correct individual of your choice, you need to complete a nomination form found on survivor benefits. This form will enable us to know to whom to pay the lump sum and in what proportions.

Where no nomination has been made the Committee of Management, who govern the administration of the scheme, will determine who should receive the lump sum. Where there is no nomination will be paid into your estate.

If the Committee of Management has not made a decision on who to pay the lump sum within two years from the date of your death, the lump sum will be paid into your estate.

The lump sum nomination is not binding. The Committee of Management reserve a discretion to determine who to pay the death in service lump sum to and, if there is more than one nominee, in what proportions.

A survivor pension

A survivor pension is paid to a surviving partner or to a dependant. A surviving partner would be your spouse, registered civil partner or, subject to certain qualifying conditions, your co-habiting partner. To inform us of any surviving partner you need to complete a nomination form found on survivor benefits.

After your death this pension is paid to the survivors for the remainder of their life and the scheme aims to increase this pension each year in line with the Jersey RPI, subject to the scheme’s ability to pay.

A survivor pension is equal to one-half of the pension you built up at the date of your death and one half of the pension you could have built up had you remained in employment to your Normal Pension Age.

The pension is calculated using your notional pensionable earnings at the date of your death. If you chose to take a lump sum payment whilst in employment this will not be taken into account in the calculation of the survivor pension.

If your surviving partner is younger than you by more than 20 years then the surviving partner pension will face a reduction. Reduction to the survivor’s pension will be 2.5% for each year by which the survivor’s age exceeds your age by more than 20 years at the date of your death.

For example, a member aged 50 dies leaving a surviving partner aged 20. As the surviving partner is 30 years younger than the member the survivor pension would face a reduction of 25%. This is due to the age gap between the member and the spouse being 10 years over the 20 year limit and as a result the 10 years attracts a 2.5% reduction per year.

Children’s pension

A pension will be payable equal to one-half of the survivor pension for each child up to a maximum of 2 children, where there are more than 2 children the survivor’s pension will be split evenly between each child. The child’s pension will be doubled if there is no surviving partner or dependant.

A child’s pension is payable up to age 18 or, if they remain in full time education, up to their 23rd birthday.

Where a survivor has had their pension reduced to take account of them being 20 or more years younger than the deceased member, the child’s pension will be based on the reduced survivor pension.

Benefits payable on death in retirement

If you die after retiring, your benefits will no longer be payable. Your surviving partner, next-of-kin or person dealing with your Estate must immediately inform the Pensions Team of your date of death, otherwise an overpayment could occur.

A survivor's pension

A survivor pension will be paid to a surviving partner or to a dependant. This pension is payable immediately after your death for the rest of their life and will increase every year in line with the Jersey RPI, subject to the scheme’s ability to pay.

A survivor pension is equal to one-half of your pension at the date of your death. The survivor pension will be based on your full pension entitlement disregarding any reduction due to taking a lump sum at retirement or in employment.

The reduction in survivor pension is the same as shown in the section relating to death in service is also relevant for death of a pensioner.

Children’s pension

The children’s pension as calculated in the section relating to death in service is also relevant for death of a pensioner.

Benefits payable on dying with a deferred pension

If you die after you have left the scheme but you have deferred your benefits then your surviving partner or dependants and any eligible children would be entitled to survivor benefits.

A survivor's pension

A survivor pension will be paid to a surviving partner or to a dependant. This pension is payable immediately after your death for the rest of their life and will increase every year in line with the Jersey RPI, subject to the scheme’s ability to pay.

A survivor pension is equal to one-half of your deferred pension calculated when you left and including any pension increases up to the date of your death. Any reduction caused by taken a lump sum in employment prior to becoming a deferred member will be disregarded in the calculation of the survivor pension.

The reduction in survivor pension as shown in the section relating to death in service is also relevant for death of a deferred pensioner.

Children’s pension

The children’s pension as calculated in the section relating to death in service is also relevant for death of a deferred pensioner.

Conditions which need to be met for a Co-habiting Partner’s survivor's pension to be paid

For a co-habiting partner, of either opposite or same sex, to receive a survivor's pension on your death all of the following conditions must apply for a continuous period of at least 2 years on the date you both sign the nomination form:

• both you and your co-habiting partner are, and have been, free to marry each other or enter into a civil partnership with each other
• you and your co-habiting partner have been living together as if you were husband and wife, or civil partners
• neither you or your co-habiting partner have been living with someone else as if you or they were husband and wife or civil partners
• either your co-habiting partner is, and has been, financially dependent on you or you are and have been financially interdependent on each other

Your partner is financially dependent on you if you have the highest income. Financially interdependent means that you rely on your joint finances to support your standard of living. It does not mean that you need to be contributing equally. For example, if your partner’s income is a lot more than yours, he or she may pay the mortgage and most of the bills, and you may pay for the weekly shopping.

Dependants Pension

A dependants pension is payable where the members has no spouse, cohabiting partner, civil partner or child to pay a pension to. A dependants pension is payable to a person who has been nominated by a member of the scheme as being dependant on the member for the ordinary necessities of life.

There is no guarantee that a pension will be paid to a nominated dependant. On the death of a member the dependant would have to prove to the Committee of Management, the governing body of the Public Employees Pension Fund, that they have been dependant on the member. It will be up to the discretion of the Committee as to whether they determine this to be a sufficient level of dependency to warrant paying a pension.

Contact details

If you have any questions or issues about your benefits, the Final Salary Scheme or the PEPS or pensions in general, contact the Public Employees Pension Team (PEPT).

Glossary of terms

Accrued Pension

This is the amount of pension that you have built up as an active member of the scheme.

Accrual Rate

This is the rate at which your pension builds up each year. For example, the accrual rate in the Career Average Scheme is 1/66th and you earn 1/66th of your annual pensionable salary as a pension in each year you are a member of the scheme.

Actuarial Enhancement

The amount your benefits would increase by, based on actuarial assumptions, in the event that you retire and receive your benefits after your Normal Pension Age

Actuarial Reduction

The amount your benefits would reduce by, based on actuarial assumptions, in the event that you retire and receive your benefits before your Normal Pension Age.

Actuarial Assumptions

The various estimates, including assumptions related to changes in longevity, salaries, inflation, returns on assets, or other, used by the actuary for the actuarial valuation.

Active Member

You are an active member of the scheme whilst you remain in pensionable employment.

Active Service

This is the period of employment in which you are an Active Member of the scheme.

Admitted Body Employers

An Admitted Body is an employer, other than the States Employment Board, who, by agreement with the States Employment Board and the Chief Minister, allows their employees to become members of the pension scheme. 

Benefit Statements

A statement of the benefits accrued in the scheme up to the end of the year prior to the statement being produced.

Career Average Revalued Earnings

A scheme where the pension benefits earned for a year depend on your earnings in a given year.

Career Average Scheme

This is the scheme under the Public Employees’ Pension Fund (PEPF) that offers benefits based on Career Average Revalued Earnings also known as the Public Employees Pension Scheme.

Cash Equivalent Transfer Value (CETV)

A CETV is a monetary amount which represents the expected value of providing a member's benefits within the scheme. 

Civil Partner or Civil Partnership

A Civil Partnership is a relationship between two people of the same sex (civil partners) which is formed when they register as civil partners of each other.

Cohabiting Partner

For a cohabiting partner pension to be paid all of the following conditions must apply for a continuous period of at least 2 years on the date you, as a member, die:

• both you and your cohabiting partner are, and have been, free to marry each other or enter into a civil partnership with each other
• you and your cohabiting partner have been living together as if you were husband and wife, or civil partners
• neither you or your cohabiting partner have been living with someone else as if you/they were husband and wife or civil partners 
• either your cohabiting partner is, and has been, financially dependent on you or you are and have been financially interdependent on each other

Committee of Management

This is the Governing Body which oversees the running of the PEPF.

Commutation

This is where you can exchange some or all of your benefits for a one off lump sum cash payment. This payment may or may not be taxable.

Deferred Member

You are a deferred member of the scheme where you have left pensionable employment and you have left your benefits in the scheme.

Deferred Pension

Your pension is deferred immediately on leaving employment before being entitled to payment of a benefit from the scheme. A deferred pension is increased annually by Jersey Retails Prices Index, subject to the schemes ability to pay.

Deficit

Where, following an actuarial valuation, the Actuary determines that the schemes liabilities, the value of the benefits to be paid out, are greater than the assets in or the value of the fund. A deficit may occur for many reasons for example: where the value of the benefits to be paid out have increased due to increased longevity of the member or where there has been a poor investment performance in the fund.

Dependant

A dependant is a person who has to satisfy the Committee of Management that they were:

• financially dependent on you for the provision of all or most of the ordinary necessities of life
  
• in a mutually dependent financial relationship with you
  
• dependent on you because of a physical or mental impairment

Eligible Child

An eligible child must, at the date of your death: 

• be your natural child, who must be born within 12 months of your death
• be your adopted child; or 
  
• be your step-child

An eligible child must also meet the following requirements

• be under age 18 
• be aged 18 or over and under 23 and in full-time education or vocational training 
• be unable to engage in gainful employment because of physical or mental impairment and either has not reached the age of 23, or the impairment is, in the opinion of an independent registered medical practitioner, likely to be permanent and the child was dependent on you at the date of your death because of their mental or physical impairment

Employer

The definition of employer can be found in the Public Employees (Pensions) (Jersey) Law 2014.

Employee

An Employee is a person employed by an employer, who the employer certifies is either in full-time or part-time employee, and employed on a permanent or fixed-term contract of employment; or a person referred to in Article 1(2) of the Public Employees (Pensions) (Jersey) Law 2014.

Existing Members Regulations

The Existing Members Regulations (or the Public Employees (Contributory Retirement Scheme) (Existing Members) (Jersey) Regulations 1989) is part of the Final Salary Scheme which is closed to new membership. The Existing Members Regulations has an accrual rate of 1/60th for non-uniformed members and 1/45th for uniformed members and a contribution rate of 6.25%.

Final Salary Scheme

Final Salary Scheme is the Public Employees Contributory Retirement Scheme or PECRS. This scheme closed to new membership on 1 January 2016. The scheme offers benefits based on an accrual rate set in regulations, a member’s pensionable service calculated in years and days and the member’s final salary upon leaving the scheme or retiring.

Ill Health Retirement

A member would receive an ill health retirement where they are found to be incapable of performing their current duties due to ill health or injury by the independent occupational health advisor as appointed by the States Employment Board.

Inner Club

The Inner club refers to transfer of CARE scheme benefits between schemes made under the Public Services Pensions Act 2013 or such other public sector schemes whose rules are similar to those of any the schemes made under the 2013 Act.

Jersey RPI or Jersey  Retail Prices Index

This is a measure of inflation and like the UK Consumer Prices Index (CPI) it tracks the changing cost of a fixed basket of goods and services over time. However, unlike the CPI it takes into account items such as owner occupier housing costs. It also has a different population base for the indices from the CPI and the index is calculated in a different way.

New Members Regulations

The New Members Regulations (or the Public Employees (Contributory Retirement Scheme) (New Members) (Jersey) Regulations 1989) is the only part of the Final Salary Scheme which is open to new membership up to 1 January 2016. The New Members Regulations has an accrual rate of 1/80th for non-uniformed members and 1/60th for uniformed members and a contribution rate of 5%.

Non-Club transfer

This is a transfer based on the cash value of the benefits you have in the scheme that you are transferring from. 

Ordinary Member

An ordinary member is a member of the scheme who is not a uniformed member.

Normal Pension Age

Your Normal Pension Age is the age at which you can take the benefits that you have built up without incurring an actuarial reduction or increase. Your Normal Pension Age is linked to the Jersey Island wide State Pension Age.

Notional Pensionable Earnings

Notional pensionable earnings provides a figure to ensure your pension is not affected by any reduction in pensionable earnings due to a period of sickness or injury on reduced contractual pay or no pay, or on Maternity or Adoption Leave. It is also used where benefits require an enhancement.

Notional pensionable earnings is calculated as the pensionable earnings earned over the best 365 days in the three years prior to either absent from work due to sickness, going on maternity or adoption leave, dying in service, receiving an enhanced ill health pension or paying a higher rate of contributions due to taking an involuntary reduction in salary.

If you have been employed for less than three years but more than 1 year, your notional pensionable earnings will be calculated using the earnings earned over the best 365 successive days in respect of your actual period of employment. If you have been employed for less than one year then your pensionable earnings will be prorated up to a full year.

Normal Retirement Age

Normal Retirement Age is the age under the Final Salary Scheme Regulations at which benefits must be taken by, unless a member has permission from their employer to work beyond their Normal Retirement Age.

Outer Club

The Outer Club refers to transfers of final salary benefits between Public Sector Transfer Club schemes that operate on a final salary basis.

Pension Record

A pension record is the computerised record which holds all the information relating to your pension and membership in the scheme. The different pension records are an active member’s pension record, a deferred member’s pension record, a member retirement pension record and a survivor member’s pension record.

Pensionable Allowance

A pensionable allowance is a payment or allowance that is routinely paid to you in addition to your basic salary or wages.

As with pensionable earnings below, pensionable allowances does not include any travelling or subsistence allowances, any overtime payments, any payment in respect of untaken annual leave, any payment in lieu of notice to terminate employment, the monetary value of a car or pay received in lieu of a car and any award of compensation made for the purpose of pay relating to loss of future pensionable earnings or benefits

Pensionable Earnings

Pensionable earnings are the pay you normally pay contributions on and is made up of your annual salary and any pensionable allowances that you may receive.

Pensionable earnings does not include any travelling or subsistence allowances, any overtime payments, any payment in respect of untaken annual leave, any payment in lieu of notice to terminate employment, the monetary value of a car or pay received in lieu of a car and any award of compensation made for the purpose of pay relating to loss of future pensionable earnings or benefits.

Pensioner Member

You are a pensioner member where you have retired from the scheme and you are now in receipt of your benefits.

PEPF

The PEPF is the Public Employees Pension Fund for the Final Salary Scheme and the Career Average Scheme which provides pension benefits to public servants, excluding teachers, in Jersey. PEPF is “the Fund” as defined under Article 5 of the Public Employees (Pension) (Jersey) Law 2014. The PEPF covers the benefits provided by the Final Salary Scheme and the benefits provided by the Career Average Scheme.

PEPT or Pensions Team

The PEPT (or Pensions Team) is the Public Employees Pension Team who administer all public sector pensions scheme for all public employees who are members of those schemes.

Public Sector Transfer Club

A group of some 120 salary related occupational pension schemes. It allows easier movement of staff mainly within the public sector. It does this by making sure that employees receive broadly equivalent credits when they transfer their pensionable service to their new scheme regardless of any increase in salary when they move to their new employment.

Revaluation

Revaluat​ion is the process of increasing your accrued pension in active service at the end of every scheme year by Jersey RPI plus 1%. No matter what the funding level of the scheme is Revaluation is guaranteed at 50% of Jersey RPI plus 1%.

Scheme Actuary

The person or entity whose responsibility, as a minimum, is to evaluate present and future pension liabilities in order to determine the financial condition of the pension fund, following recognised actuarial methods.

Scheme Employment

Scheme employment is the employment in which you are eligible to be an active member of the scheme and you would pay contributions on any earnings received in conjunction with that employment.

Scheme Year

A Scheme Year is a period 12 months beginning on 1 January and ending on 31 December.

State Pension Age

This is the earliest age that you can receive your Jersey Social Security pension. The State Pension Age will increase to age 67 for all people born after 1 January 1955, with the increases being phased in over the period 2020 to 2031.

Check your pension age

Survivor Member

You are a survivor member where you are in receipt of benefits from the scheme as a result of an active, deferred or pensioner member’s death.

Surviving Partner

A surviving partner would be your spouse, registered civil partner or, subject to certain qualifying conditions, your co-habiting partner.

Uniformed Member

A uniformed member is a member of the scheme who is employed as 

• the Chief Officer or Deputy Chief Officer or a Police Officer in the Government of Jersey Police Force
• the Chief Officer or Deputy Chief Officer of, or a Firefighter in the Government of Jersey Fire and Rescue Service (including the Airport Rescue and Firefighting Service)
• the Prison Governor and Prison Officers
• Chief Ambulance Officer or Assistant Chief Ambulance Officer of, or an emergency ambulance officer in the Government of Jersey Ambulance Service
• an Air Traffic Control Officer in the Government of Jersey Air Traffic Control Service

List of Admitted Bodies

The Admitted Bodies to the pension scheme are:

• Andium Homes
• Beaulieu Convent School
• Brig-y-Don 
• Comité des Connétables
• Family Nursing and Home Care (FNHC)
• Jersey Advisory and Conciliation Services (JACS)
• Jersey Competition Regulatory Authority (JCRA)
• Jersey Data Protection Commission (JDPC)
• Jersey Employment Trust/Workforce Solutions (JET)
• Jersey Financial Services Commission (JFSC)
• Jersey Gambling Commission 
• Jersey Heritage Trust
• Jersey Overseas Aid Commission (JOAC)
• Jersey Post
  
• Jersey Telecom
• Les Amis Incorporated (Including Maison Variety)
• Parish of St Brelade (including Maison St Brelade) 
  
• Parish of St Clement
• Parish of Grouville
• Parish of St Helier
• Parish of St Lawrence
• Parish of St Martin
• Parish of St Ouen
• Parish of St Saviour
• Ports of Jersey