The National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998

3.—(1) “Final remuneration” means, subject to sub-paragraphs (2) and (3), the

greater of C and D,

where–

• C is the participator’s highest year’s adjusted salary in respect of pensionable service during the period of 5 years ending on the material date, and

• D is the average of the participator’s salary in respect of any period of 3 or more consecutive years ending no earlier than 10 years before the material date,

but, in respect of any year other than the one ending on the material date, the salary shall be taken to have been increased in proportion to any increase in the Index from the end of the year up to the material date.

(2) In respect of the tax year 1987/88 and following tax years, “final remuneration” shall not include any sums chargeable to tax under section 148 of the Taxes Act (payments on retirement or removal from office or employment) or chargeable under Schedule E to Part I of the Taxes Act and arising from the acquisition or disposal of shares, or an interest in shares, or from a right to acquire shares except where the shares or rights which give rise on or after 17 March 1987 to a Schedule E tax liability had been acquired before that date.

(3) Where the participator entered pensionable employment on or after 1st June 1989 and final remuneration, calculated under sub-paragraph (1), exceeds the permitted maximum under section 590C of the Taxes Act(1) (conditions for approval of retirement benefit schemes: earnings cap), then, for the purposes of calculating the participator’s final remuneration, no account shall be taken of the excess over that amount unless the participator is a person mentioned in regulation C1(3) of the 1995 Regulations.

(4) For the purposes of this paragraph, the Secretary of State shall select the years by reference to which the participator’s final remuneration is to be calculated and the years selected shall be those which produce the most favourable result to the participator.

(1)

Section 590C was inserted by the Finance Act 1989 (c. 26), Schedule 6, paragraph 4.