Recalculation of compensation
6.—(1) Subject to the following provisions of this regulation, the amount of the instalments of compensation payable in accordance with regulation 5 shall be varied in accordance with this regulation whenever, during the period when the compensation is being paid, the annual rate of remuneration with the new authority is increased, and instalments of compensation shall cease to be payable at any time during which the annual rate of remuneration with the new authority equals or exceeds that payable at the date of termination of employment with the old authority or, as the case may be, immediately before the reduction in question took effect.
(2) Any variation or cessation of payments of instalments under paragraph (1) shall affect only the instalments of compensation payable after the date on which the relevant increase in the annual rate of remuneration took effect.
(3) Where the amount of instalments of compensation payable under regulation 5 requires to be varied, recalculation of the remaining instalments payable shall be carried out in accordance with regulation 5 and accordingly the provisions of regulation 5(3)(a) or, as the case may be, (b) shall apply substituting for the reference there respectively to the annual rate of remuneration payable at the start of the new employment, or the annual rate of remuneration payable immediately after the reduction in question took effect, a reference to the revised annual rate of remuneration payable by the new authority.
(4) Where compensation is being paid in respect of more than one reduction of remuneration and an increase in the annual rate of remuneration takes effect, any variation in the amount of the instalments of compensation payable shall be made first to the compensation in respect of the most recent reduction; and where the increase equals or exceeds the amount of the most recent reduction instalments of compensation in respect of that reduction shall cease to be payable during the time that this effect continues; and any excess of the increase over the amount of the most recent reduction shall be applied similarly to the instalments in respect of the immediately preceding reduction; and any further such excesses shall be similarly applied to earlier reductions.
(5) Where under this regulation instalments of compensation in respect of any reduction of remuneration have been varied or have ceased to be payable in consequence of an increase of remuneration, and a subsequent decrease of remuneration during the period when compensation is being paid offsets the effect of that increase—
(a)in whole, the instalments of compensation shall, as from the date on which the decrease of remuneration takes effect, be restored to the amount which they were before the increase;
(b)in part the instalments of compensation shall, as from that date, be recalculated in accordance with this regulation on the basis of the amount of increase remaining.