Regulation 11(3)
1. This Schedule sets out the maximum pension payable to a person at the relevant date.
2.—(1) On retirement at any time after age 50 except before normal retirement date on grounds of incapacity, a pension of 1/60th of final remuneration for each year of service (not exceeding 40 years) or, if greater,
the lesser of—
(a)1/30th of final remuneration for each year of service (not exceeding 20 years); and
(b)2/3rds of final remuneration minus the pension value of all retained benefits.
(2) On retirement before normal retirement date on grounds of incapacity an immediate pension in accordance with sub-paragraph (1) above on the basis of the number of years which would have counted as service had the contributor remained in service to the normal retirement date.
(3) On leaving pensionable service before the normal retirement date a deferred pension—
(a)for contributors who remain in service, of that proportion of the amount calculated in accordance with sub-paragraph (2) above that the number (not exceeding 40) of years of service completed before leaving pensionable service bears to the potential number (not exceeding 40) of years of service had the contributor remained in service to the normal retirement date; or
(b)for other contributors, of the amount calculated in accordance with sub-paragraph (1) above,
increased by up to 3 per cent for each complete year, or, if greater, in proportion to any increase in the index which has occurred during the period of deferment.
(4) Benefits for a Class A contributor are further restricted as necessary to ensure that the contributor’s total retirement benefit from the AVC scheme, from the principal scheme and from any free-standing additional voluntary contribution scheme does not exceed 1/30th of the permitted maximum for each year of service. For the purpose of this limit service is the aggregate of service provided that the total shall not exceed 20 years. The permitted maximum in this context is that for the year of assessment in which the benefits commence to be paid or, if earlier, are transferred out of the principal scheme. For the purpose of calculating the total retirement benefit the pension equivalent of benefit in any form other than pension is one twelfth of its cash value.
3.—(1) On retirement at the normal retirement date a pension of 1/60th of final remuneration for each year of service (not exceeding 40 years) or, if greater,
the lesser of—
(a)(i)for Class C contributors the fraction of final remuneration ascertained from the following table—
| Years of Service | Appropriate fraction |
|---|---|
| 6 | 8/60 |
| 7 | 16/60 |
| 8 | 24/60 |
| 9 | 32/60 |
| 10 or more | 40/60 |
or
(ii)for Class B contributors 1/30th of final remuneration for each year of service (not exceeding 20 years);
and
(b)2/3rds of final remuneration minus the pension value of all retained benefits.
(2) On retirement before normal retirement date—
(a)on grounds of incapacity, the amount calculated in accordance with sub-paragraph (1) above on the basis that service is taken as the potential number of years of service had the contributor remained in service to the normal retirement date; or
(b)other than on grounds of incapacity the greater of—
(i)1/60th of final remuneration for each year of service (not exceeding 40 years);
and
(ii)that proportion of the amount calculated in accordance with paragraph (a) above that the number (not exceeding 40) of years of service completed before leaving service bears to the potential number (not exceeding 40) of years of service had the contributor remained in service to normal retirement date.
(3) On retirement after normal retirement date a pension of the greatest of—
(a)the amount calculated in accordance with sub-paragraph (1) above on the basis that the actual date of retirement was the contributor’s normal retirement date; or
(b)the amount which could have been provided at normal retirement date in accordance with sub-paragraph (1) above increased either actuarially in respect of the period of deferment or in proportion to any increase in the index during that period; or
(c)where the contributor’s total service has exceeded 40 years, the aggregate of 1/60th of final remuneration for each year of service before normal retirement date (not exceeding 40 such years) and of a further 1/60th of final remuneration for each year of service after normal retirement date, with an overall maximum 45 reckonable years.
Final remuneration being computed in respect of (a) and (c) above as at the actual date of retirement, provided that if a contributor elects to take any part of his benefits under the AVC scheme in advance of actual retirement, the limits set out above shall apply as if he had retired at the date that election takes effect, no account being taken of subsequent service, save that the maximum amount of any uncommuted pension not commencing immediately may be increased either actuarially in respect of the period of deferment or in proportion to any increase in the index during that period.
4. On leaving pensionable service before normal retirement date a deferred pension calculated in accordance with paragraph 2(3) or 3(2)(b) above but increased by up to 3 per cent for each complete year, or, if greater, in proportion to any increase in the index which has occurred during the period of deferment.