PART XIV PENSION SCHEMES, SOCIAL SECURITY BENEFITS, LIFE ANNUITIES ETC.
CHAPTER I RETIREMENT BENEFIT SCHEMES
Approval of schemes
590C Earnings cap.
(1)
In arriving at an employee’s final remuneration for the purposes of section 590(3)(a) or (d), any excess of what would be his final remuneration (apart from this section) over the permitted maximum for the year of assessment in which his participation in the scheme ceases shall be disregarded.
(2)
In subsection (1) above “the permitted maximum”, in relation to a year of assessment, means the figure found for that year by virtue of subsections (3) and (4) below.
(3)
For the years 1988-89 and 1989-90 the figure is £60,000.
(4)
For any subsequent year of assessment the figure is also £60,000, subject to F1subsections (5) and (5A) below.
(5)
If the retail prices index for the month of F2September preceding a year of assessment falling within subsection (4) above is higher than it was for the previous F2September, the figure for that year shall be an amount arrived at by—
(a)
increasing the figure for the previous year of assessment by the same percentage as the percentage increase in the retail prices index, and
(b)
if the result is not a multiple of £600, rounding it up to the nearest amount which is such a multiple.
F3(5A)
If the retail prices index for the month of September preceding a year of assessment falling within subsection (4) above is not higher than it was for the previous September, the figure for that year shall be the same as the figure for the previous year of assessment.
(6)
The Treasury shall in the year of assessment 1989-90, and in each subsequent year of assessment, make an order specifying the figure which is by virtue of this section the figure for the following year of assessment.