Marginal Citations
M1Source—1987 (No. 2) c. 51, Sch.3 Pt. II
5(1)his paragraph applies where an employee who is a member of the scheme retires on or after 17th March 1987.
(2)The rules of the scheme shall have effect as if they provided that in determining the employee’s relevant annual remuneration for the purpose of calculating benefits, no account should be taken of anything excluded from the definition of “remuneration” in section 612(1).
(3)In the case of an employee—
(a)whose employer is a company and who at any time in the last ten years of his service is a controlling director of the company, or
(b)whose relevant annual remuneration for the purpose of calculating benefits, so far as the remuneration is ascertained by reference to years beginning on or after 6th April 1987, would (apart from this Schedule) exceed the permitted maximum,
the rules of the scheme shall have effect as if they provided that his relevant annual remuneration must not exceed his highest average annual remuneration for any period of three or more years ending within the period of ten years which ends with the date on which his service ends.
(4)In the case of an employee within paragraph (b) of sub-paragraph (3) above who retires before 6th April 1991, the rules of the scheme shall have effect as if they provided that his relevant annual remuneration must not exceed the higher of—
(a)the average annual remuneration referred to in that sub-paragraph, and
(b)his remuneration (within the meaning given by section 612(1)) assessable to income tax under Schedule E for the year of assessment 1986-87.
(5)For the purposes of this paragraph a person is a controlling director of a company if—
(a)he is a director (as defined in section 612), and
(b)he is within paragraph (b) of section 417(5),
in relation to the company.
Modifications etc. (not altering text)
C1 See S.I.1988 No.1436 (in Part III Vol.5)for circumstances when paras.2-4, 5(2), 5(3), 6and 7disapplied.
C2 See S.I.1988 No.1436 (in Part III Vol.5)for circumstances when paras.2-4and 5(2), 5(3), 6and 7disapplied, and when paras.5(3), (4)modified.