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1. In this Schedule, unless the context otherwise requires—
“Class A participant” means any participant who joined the scheme on or after 1st June 1989 or any other participant who has elected to become a Class A participant(1);
“Class B participant” means any participant who joined the scheme on or after 17th May 1987 and before 1st June 1989 and has not elected to become a Class A participant;
“Class C participant” means any participant who joined the scheme before 17th March 1987;
“index” at any time, means the index of retail prices published by the Central Statistical Office of the Chancellor of the Exchequer, or any successor agreed as appropriate by the Board of Inland Revenue, for the calendar month three months prior to that time;
“the multiple” means, in respect of a pension under article 7 of a person who is or has been a participant, the relevant terminal salary under article 7(10)(b);
“pensionable service” means actual service as a participant;
“retained benefits” means benefits for a participant derived from—
retirement benefits schemes approved or seeking approval under Chapter I Part XIV or relevant statutory schemes as defined in section 611A of the Taxes Act 1988(2), excluding benefits in respect of service;
funds to which section 608 of the Taxes Act 1988 applies, excluding benefits in respect of service;
retirement benefit schemes which have been accepted by the Board of Inland Revenue as “corresponding” for the purposes of section 596(2)(b)(3) of the Taxes Act 1988, excluding benefits in respect of service;
retirement annuity contracts or trust schemes approved under section 620 of the Taxes Act 1988, or personal pension schemes (other than arrangements to which only minimum contributions are paid) which related to relevant earnings from the current employment, or previous employments (including periods of self-employment whether alone or in partnership);
transfer payments from overseas schemes held in a type of arrangement defined in (a) or (d) above excluding those in respect of service,
including such benefits which have been transferred to another scheme, whether or not in the United Kingdom, but excluding such benefits which relate to service with an unassociated employer which is concurrent with service;
provided that:
if the total of the retained benefits is less than a pension of £260 those retained benefits may be disregarded; and
if the participant’s earnings in the 12 months after entry to the scheme do not exceed one quarter of the permitted maximum, benefits from those sources, other than those transferred into the scheme, shall not be classed as retained benefits;
“service” means service as a participant, and includes, where appropriate, any increase in reckonable service attributable to sums received by way of transfer value or to the purchase of added years.
Paragraph 29 of Schedule 6 to the Finance Act 1989 (c. 26) provides for a Class B participant to elect to become a Class A participant.
Section 611A was inserted by the Finance Act 1989 (c. 26), Schedule 6, paragraphs 15 and 18(1).
Section 596(2) was amended by the Finance Act 1989 (c. 26), Schedule 6, paragraphs 8(1), 2(b) and 18(1).
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