623.The new provisions apply to all occupational pension schemes that hold GMP rights, subject to exceptions to be prescribed in regulations. All members who left pensionable service (or died) after the legislation comes into force and whose pensions (or survivors’ pensions) become payable after that date will have their benefits calculated under the new arrangements. However, the scheme managers or trustees will be able to elect, in a manner to be prescribed, to operate the new rules for members who left pensionable service before these provisions come into force. Where a scheme elects to calculate early leavers’ preserved pensions by reference to the new arrangements, that election must apply to all such deferred members and is a once and for all choice.
Part II: Pensions. Commentary on Sections Schedule 5 Paragraph 14: Cases in which alternative applies