The Local Government Pension Scheme Regulations 1995

5.—(1) For the purposes of this Part of this Schedule, subject to sub-paragraph (2), the annual rate of remuneration of an employment is—

(a) if it is a former employment in respect of which the person is entitled to a retirement pension under these regulations, the 1974 regulations or the 1986 regulations—

(i) in the case of fixed-rate emoluments, the rate of any such emoluments on the last day of the period which is the relevant period for the purposes of regulation D1; and

(ii) in the case of fees, the average rate of any fees during the period by reference to which pensionable remuneration fell to be calculated under paragraph 9 of Schedule D1;

(b) if it is a former employment in respect of which the person is entitled to a retirement pension otherwise than as mentioned in paragraph (a)—

(i) in the case of fixed-rate emoluments, the rate of any such emoluments on the last day of employment; and

(ii) in the case of fees, the average rate of any fees during the period, within the last three years of employment, during which fees were receivable;

(c) in the case of the new employment—

(i) in the case of fixed-rate emoluments, the annual rate of such emoluments on the first day of employment;

(ii) in the case where fees are receivable but were not receivable in the former employment, a rate agreed by the person and the body employing him or, in default of agreement, a rate determined by the Secretary of State;

(iii) in the case where fees are receivable and were receivable in the former employment, subject to sub-paragraph (3), the annual rate of those fees, ascertained in accordance with paragraphs (a)(ii) and (b)(ii).

(2) For the purposes of sub-paragraph (1)(a) and (b), where—

(a) the person’s remuneration in the former employment was at any material time reduced or discontinued by reason of his absence from duty; and

(b) the absence was due to illness or injury or he made contributions or payments under section 6(5) of the Act of 1937 or regulation C3 or C4 of the 1986 regulations or regulation C5, C6 or C7 of these regulations,

then—

(i) any reduction or discontinuance of fixed-rate emoluments is to be disregarded, and

(ii) any fees are to be averaged over a period of the same length as the period mentioned in paragraph (1)(a) or (b), but ending immediately before the reduction or discontinuance.

(3) If the annual rate of remuneration of the new employment ascertained in accordance with this paragraph is less than that of the former employment, the annual rate of any fees ascertained in accordance with paragraph (1)(c)(iii) is to be reduced proportionately.