The Teachers’ Pensions Regulations 2010

Maximum amount of additional pension

3.—(1) The amount in respect of which an election (“the new election”) may be made must not exceed the maximum amount for the financial year in which notice of the new election is given to the Secretary of State less the sum of the uprated amounts in relation to each previous election made by, or for the benefit of, the AP beneficiary.

(2) The maximum amount for the financial year ending on 31st March 2011 is the amount determined for that financial year under paragraph 18 or 19 of Schedule 2A to TPR 1997.

(3) The maximum amount for a subsequent financial year is such amount as may be determined by the Treasury for that financial year in accordance with sub-paragraph (9).

(4) But if no maximum amount has been determined for that financial year under sub-paragraph (3), the maximum amount for that financial year is the maximum amount for the financial year before that financial year (“the previous financial year”) multiplied by the factor mentioned in sub-paragraph (5) if that factor is greater than 1, rounded to the nearest £100.

(5) The factor is RPI1/RPI2, where—

• RPI1 is the retail prices index for February in the previous financial year, and

• RPI2 is the retail prices index for February in the financial year before the previous financial year.

(6) The uprated amount in relation to a previous election is—

(a) the amount stated in the notice multiplied by the factor mentioned in sub-paragraph (8) if that factor is greater than 1,

(b) where the AP beneficiary is credited with an amount in respect of the election in accordance with paragraph 7, 8 or 9, that amount multiplied by the factor mentioned in sub-paragraph (8) if that factor is greater than 1, or

(c) where the AP beneficiary was previously credited with an amount in respect of the election in accordance with paragraph 10, an amount determined by the Secretary of State having regard to the contributions paid and any contributions treated as paid under paragraph 10(6) multiplied by the factor mentioned in sub-paragraph (8) if that factor is greater than 1.

(7) But where notice of the previous election was given to the Secretary of State in the same financial year as notice of the new election is to be given, the uprated amount in relation to the previous election is—

(a) the amount stated in the notice,

(b) where the AP beneficiary is credited with an amount in respect of the election in accordance with paragraph 7, 8 or 9, that amount, or

(c) where the AP beneficiary was previously credited with an amount in respect of the election in accordance with paragraph 10, an amount determined by the Secretary of State having regard to the contributions paid and any contributions treated as paid under paragraph 10(6).

(8) The factor is RPI1/RPI2, where—

• RPI1 is the retail prices index for February in the financial year before the financial year in which notice of the new election is given to the Secretary of State, and

• RPI2 is the retail prices index for February in the financial year before the financial year which includes the start date for the previous election.

(9) The Treasury is from time to time to review the operation of this paragraph and, as a result of such review, may determine the maximum amount for the financial year ending on 31st March 2012 or for any subsequent financial year.