The Police Service of Northern Ireland Reserve (Full-time) Severance Regulations 2006

PART 3 CAPPING MECHANISM

5.  The benefits of severance shall not exceed the amount calculated as potential earnings, and where this occurs the difference between the two shall be deducted from the severance lump sum.

6.  In paragraph 5—

“benefits of severance” means the sum of the severance lump sum under Part 2 of the Schedule, and the member’s gross pension entitlement, before commutation, payable between the date of leaving and compulsory retirement age (or the expiry of his period of extension);

“potential earnings” means the member’s basic salary and any standing allowances he would have earned by remaining as a member between the date of leaving until compulsory retirement age or the end of the period of extension.