The Public Service (Civil Servants and Others) Pensions Regulations (Northern Ireland) 2014

Annual rate of ill health pension

76.—(1) The annual rate of ill-health pension is calculated as follows—

(a) the annual rate of lower tier earned pension is calculated in the same way as the annual rate of full retirement earned pension(1) is calculated under regulation 61, but without subtracting the early payment reduction;

(b) the annual rate of upper tier top up earned pension is calculated in the same way as the annual rate of full retirement earned pension is calculated under regulation 61, but—

(i) the references to the member’s full retirement earned pension are taken to be references to the enhancement fraction of the earnings-related part of that pension; and

(ii) the early payment reduction is not subtracted;

(2) The annual rate of any full retirement added pension payable with a lower tier earned pension is calculated in the same way as it is calculated under regulation 61, but without subtracting the early payment reduction.

(3) In this regulation—

“the earnings-related part”, in relation to the member’s full retirement earned pension, means the proportion of that pension not attributable to an amount of transferred pension;

“the enhancement fraction” is

where—

• A is the member’s assumed period of pensionable service (expressed in years); and

• B is the shorter of—

  (a)

  the member’s period of service (expressed in years); and

  (b)

  the number of scheme years in relation to which an amount of earned pension was specified in the active member’s account;

• “the member’s assumed period of pensionable service” means the period (expressed in years)—

  (a)

  beginning with the day after the member’s period of service ceased; and

  (b)

  ending with—

  (i)

  for a member employed for a fixed term, the day with which that term ends; or

  (ii)

  for a member otherwise employed, the day before the day on which the member will reach prospective normal pension age (assuming that the member lives until that age); and

• “period of service” means a continuous period of pensionable service under this scheme.

(1)

Regulation 35 provides for the calculation of an amount of accrued earned pension. This amount forms the basis for determining the amount of full retirement earned pension under regulation 52. The annual rate of full retirement earned pension in relation to active members is calculated under regulation 61