SCHEDULE 6PENSIONABLE SERVICE AND TRANSFER VALUES

PART IISERVICE RECKONABLE ON RECEIPT OF TRANSFER VALUE

I12

1

Subject to paragraph 3, if the previous scheme is not a club scheme the period reckonable as pensionable service is that specified in sub-paragraph (2).

2

The period is—

((A+B+C)/(D+E))yearsmath

where—

  • A is the amount of the transfer value divided by the market level indicator for the month in which the material date occurred,

  • B is any amount in respect of graduated National Insurance modification notified by the scheme managers of the previous scheme,

  • C is 52 times the amount in respect of the person’s guaranteed minimum multiplied by the minimum pension factor,

  • D is 1/45th of the rate of his annual pensionable pay at the material date multiplied by the pension factor, and

  • E is 1/90th of the rate of his annual pensionable pay at the material date multiplied by the surviving spouse’s or civil partner’s pension factor.

3

The market level indicator for a month is to be ascertained from tables provided by the Government Actuary by reference to—

a

the person’s age at the material date; and

b

the average gross redemption yield on the first working day of the month, ascertained from the FT-Actuaries Share indices published in the Financial Times newspaper, on British Government index-linked stocks redeemable after 5 years or more, assuming inflation at 5 per cent (interpolating where that yield is not an integral percentage).

4

The amount in respect of the person’s guaranteed minimum is F + G,

where—

  • F is so much of his guaranteed minimum as is attributable to service before 6th April 1988, and

  • G is half of so much of it as is attributable to service after 5th April 1988.

5

The material date—

a

if the transfer value was received within 12 months after the date on which the person became a regular firefighter, is that date; and

b

in any other case, is the date on which the transfer value was received.

6

The factors are to be ascertained from tables provided by the Government Actuary by reference to the person’s age on the material date.