The Transport Holding Company (Compensation to Employees) Regulations 1972

Factors governing payment of retirement compensation

20.—(1) Where retirement compensation is payable under any one of regulations 21, 22, 23 and 24, such compensation shall not be payable under any other of those regulations.

(2) For the purpose of determining the amount of any retirement compensation which may, subject to the limits set out in these regulations, be payable thereunder, regard shall be had to the extent of the loss or the diminution of pension rights suffered and also to such of the factors set out in regulation 14(1) as may be relevant, and in addition the following further factors shall be taken into consideration—

(a) the terms of any pension scheme associated with any new employment undertaken; and

(b) the extent to which the person in question has sought pensionable employment, and the terms of any pension scheme which would have applied if he had accepted other suitable employment offered to him.

(3) If a person has attained the age of 40 years at the date on which he suffered loss or diminution of pension rights, the compensating authority, in calculating the amount of the retirement compensation payable to him, shall credit him with additional years of service or an additional period of contribution on the following basis, namely—

(a) 2 years, whether or not he has completed any years of service after attaining the age of 40 years, and

(b) 2 years for each of the first 4 completed years of his reckonable service between the date when he attained the age of 40 years and the date of the loss or diminution, and

(c) one year for each such year of service after the fourth;

but the additional years of service or period of contribution so credited shall not exceed the shortest of the following periods, namely—

(i) such number of years as, when added to his pensionable service, would amount to the maximum period of such service which would have been reckonable by him had he continued in his employment until attaining normal retiring age, or

(ii) the number of years of his reckonable service, or

(iii) 15 years;

and in calculating the amount of any retirement compensation payable to him any period so added shall be aggregated with any years of service or period of contribution entailing reduction of the relevant pension or retiring allowance because of a retirement pension payable under section 30 of the National Insurance Act 1965 or section 29 of the National Insurance Act (Northern Ireland) 1966.

(4) When retirement compensation is awarded, or when an award is reviewed under regulation 34, the additional compensation payable in consequence of any years of service or period of contribution credited to a person under paragraph (3) may be reduced or withheld to such extent as the compensating authority may think reasonable having regard to the pension scheme (if any) associated with any further employment obtained by him.

(5) If under his last relevant pension scheme the amount of any benefit to which a person might have become entitled could have been increased at the discretion of the body, trustees or other persons administering the pension scheme or of any other body or person, the compensating authority may increase, to an extent not exceeding that to which his accrued pension, accrued retiring allowance, accrued incapacity pension or accrued incapacity retiring allowance might have been increased or supplemented, the corresponding component of any retirement compensation payable to him; and in this connection the compensating authority shall have regard to the terms of any relevant resolutions of such body, trustees or other persons with regard to the increase of benefits and to the provisions of any enactment protecting the interests of that person.

(6) If under his last relevant pension scheme a person would have been entitled to surrender a proportion of any pension which might have become payable to him in favour of his spouse or any dependant, then, if he so desires and informs the compensating authority by notice in writing accordingly within one month after becoming entitled to retirement compensation under these regulations, he may surrender a proportion of so much of the said compensation as is payable by way of an annual sum on the like terms and conditions and in consideration of the like payments by the compensating authority as if the said annual sum were a pension to which he had become entitled under the said pension scheme.

(7) In calculating for the purposes of regulation 21, 22, 23 or 24 the amount of the annual sum which is equal to a person's accrued pension, no account shall be taken of any reduction falling to be made in that pension by reason of the provisions of any Act relating to National Insurance until the person reaches the age at which under his last relevant pension scheme the pension would have been so reduced.

(8) In paragraph (3) the expression “reckonable service” includes any period of employment of which account has been taken or is required to be taken in calculating the amount of any pension to which a person has become entitled under the last relevant pension scheme.