Overview of JPS 2022

The Judicial Pension Scheme 2022 (JPS 2022) launched on 1 April 2022 as the pension scheme for all UK eligible judicial office holders. It returns judges to a tax unregistered pension scheme.

JPS 2022 opened to all eligible salaried and fee-paid judicial office holders from 1 April 2022. Salaried and fee-paid judicial office holders who were in office when the Scheme commenced, and who were eligible for a judicial pension, will have joined the Scheme automatically for future service in that office, unless they decided to opt out of the Scheme.

This page has information to help our members find out more about JPS 2022 and how it works. There is also a selection of webinars that provide an overview of JPS 2022, fee paid pensions, partial retirement and sitting in retirement.

Eligibility

JPS 2022 is open to UK judiciary, except when their terms and conditions are specifically non-pensionable. This includes both salaried (full and part-time) and fee-paid judges. We will enrol newly appointed judges in JPS 2022, unless they opt out. For more information on opting out, see Do I have to join JPS 2022? below.

Active members of the following pension arrangements will have joined JPS 2022 from 1 April 2022, unless they opted out:

  • JPA 1981 - Judicial Pensions Act 1981
  • JUPRA - Judicial Pensions and Retirement Act 1993
  • FPJPS - The Judicial Pensions (Fee-Paid Judges) Regulation 2017
  • JPS 2015 - The Judicial Pensions Regulations 2015
  • NIJPS 2015 - The Judicial Pensions Regulations (Northern Ireland) 2015
  • PPA - The Partnership Pension Arrangement administered by Prudential

Salaried NLMs are generally eligible for JPS 2022 if they were eligible for a judicial pension under the previous scheme, JPS 2015.

Fee-paid NLMs whose office does not make them a tribunal chair are not eligible for a judicial pension, but they are entitled to a workplace pension. In these cases, the Ministry of Justice use the National Employment Savings Trust (NEST) as the pension provider. NEST is a defined contribution occupational pension scheme backed by the Government. Further information about the scheme and the scheme rules can be found here.

You can opt out of JPS 2022 using the opt out form. However, please note that this may adversely affect your benefits, including your final pension and death benefits.

If you opt out of JPS 2022:

  • No pension contributions will be made to any other pension arrangement on your behalf, and you will not receive any alternative payment to replace your JPS 2022 membership.
  • Your dependants will not be entitled to any pension or lump sum from JPS 2022 when you die. Death benefits may still be payable in respect of any pension benefits you built up before 1 April 2022.
  • You can choose to re-join JPS 2022 at a later date if you change your mind (although you will not be able to opt in more than once within a twelve-month period).
  • If you join another, or an additional, judicial office at a later date, you will automatically join JPS 2022 (if appropriate). If you do not want to join JPS 2022 at that time, you will need to opt out again.
  • Opting out excludes you from the option for a lower 3% contribution rate, even if you subsequently opt back in.

Contributions

JPS 2022 is a defined benefit scheme, with a career average revalued earnings (CARE) benefit basis. You will pay a default standard contribution rate of 4.26% of your pensionable earnings into your JPS 2022 pension. This will build up a pension at a rate of 2.50% of your pensionable earnings each year, which is a higher pension build-up rate than JPS 2015.

Judges who were in service on 31 March 2022 and were entitled to a judicial pension have the option of paying a lower contribution rate of 3% for a limited period, in return for a lower build-up rate of 2.42%. This option can only be chosen before 30 June 2022 and will only apply for the first three years of the Scheme from 1 April 2022 to 31 March 2025.

Previous judicial arrangements

From 31 March 2022, all the previous judicial pension arrangements were closed for building up future benefits. Existing pension benefits will be protected and accessible when a member retires. For instance, if a member has been a member of JUPRA or FPJPS they will have the right to retain the salary link to the benefits built up under JUPRA or FPJPS, as long as they do not have a disqualifying gap in service.

If you die in service, your nominated beneficiaries will receive a death in service lump sum payment from JPS 2022. This payment replaces any death in service lump sums you may have been entitled to under previous schemes. Please see the Scheme Guide for more information about how death in service and death in retirement lump sums are calculated.

Tax and limits

Tax-registered pension schemes are schemes which are registered with HMRC. They have limits on the amount of money a member can save into a pension without paying tax on their contributions; these limits are called the Annual Allowance (AA) and the Lifetime Allowance (LTA).

The AA is the annual limit on the amount you can save in all your pension schemes while still receiving tax relief.

The LTA is the limit on the amount of pension benefits that you can build up across all your pension schemes over your lifetime, without facing additional tax charges. In some cases, it is possible to apply for certain protections against exceeding the LTA.

JPS 2022 is not a tax-registered pension scheme, so any benefits built up in JPS 2022 will not count towards your AA or LTA. This means that being a member of JPS 2022 will not result in losing any LTA protection you may have.

It also means that the Scheme will pay for certain tax charges, such as the tax due on lump sums. It also has a lower contribution rate compared to tax-registered schemes, as contributions do not receive tax relief.

No, unlike previous schemes, there is no limit on the number of service years during which you can build up benefits in JPS 2022.

The normal retirement age for JPS 2022 (the age at which you can retire and take your pension without reduction) is linked to the State Pension age. Retiring before or after this age will lead to a relative reduction or enhancement in your pension.

If you can't find the answer you're looking for, please see
the JPS 2022 Scheme guide, or contact us using the details below.