The Occupational Pension Schemes (Equal Treatment) Regulations 1995

Exceptions to the equal treatment rule: effect of indexation

14.—(1) The following circumstances are prescribed for the purposes of section 64(2) of the Pensions Act—

(a) the scheme is a salary-related contracted-out scheme under which the annual rate of a pension payable to or in respect of a member is increased by more than it would have been increased had the recipient been of the other sex; and

(b) the amount by which the pension increase exceeds any increase that would have applied had the member been of the other sex, does not exceed the relevant amount.

(2) In this regulation, the relevant amount means the amount by which

X exceeds Y

where—

• X is the amount by which the additional pension of a Category A retirement pension attributable to the member’s earnings factors during his period of pensionable service under the scheme would have been increased following an order made under section 150(9) of the Social Security Administration Act 1992(1) if the member had been of the other sex; and

• Y is the amount (if any) by which the member’s entitlement to the additional pension of a Category A retirement pension attributable to his earnings factors during his period of pensionable service under the scheme is increased following an order made under section 150(9) of the Social Security Administration Act 1992.

(1)

1992 c. 5. Section 150(1)(c), (2), (3) and (9) of that Act provides for the additional pension of a Category A retirement pension to be increased each year by reference to the general level of prices. See also section 46 of the Pension Schems Act 1993 (c. 48) by virtue of which any guaranteed minimum pension of a member of a salary-related contracted-out scheme (including any increases due under section 109 of that Act) is deducted from the member’s entitlement to additional pension.