SCHEDULE 2BENEFIT LIMITS

PART IIretirement pensions

6

The annual rate of a participator’s retirement pension under these Regulations must not be such as to cause his total retirement benefits to exceed the permitted amount.

7

1

If the participator retires on his relevant birthday, the permitted amount is the greater of E and F, where—

  • E is 1/60th of his final remuneration for each of up to 40 years of relevant service, and

  • F is the lesser of G and H.

2

In sub-paragraph (1)—

  • G is 1/30th of his final remuneration for each of up to 20 years of relevant service, and

  • H is 2/3rds of his final remuneration less any retained benefits.

8

If the participator retires on a date later than his relevant birthday, the permitted amount is the greatest of J, K and, where applicable, L, where—

  • J is an amount calculated in accordance with paragraph 7 as at the later date,

  • K is an amount calculated in accordance with paragraph 7 as at his relevant birthday increased, up to the later date, either actuarially or in proportion to any increase in the Index, and

  • L is, in the case of a participator with more than 40 years of relevant service, 1/60th of his final remuneration for each of up to 45 years of relevant service, excluding any years before his relevant birthday in excess of 40.

9

1

If the participator retires after having, before his relevant birthday, ceased to be in relevant service, the permitted amount is the greater of (M + R) and—

(NP×Q)+Rmath

where—

  • M is 1/60th of his final remuneration for each of up to 40 years of relevant service,

  • N is the number of years on which M is calculated,

  • P is the number of years on which M would have been calculated if he had continued in relevant service up to his relevant birthday,

  • Q is an amount calculated in accordance with paragraph 7 as at his relevant birthday, and

  • R is the appropriate increase.

2

For the purposes of sub-paragraph (1) the appropriate increase is an increase in the amount in question, either—

a

in proportion to any increase in the Index, or

b

if greater, at 5 per cent compound,

from the cessation of relevant service to the date of retirement.