The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001

Section A (Applicable to Class A Members)

9.  In this Section A of Appendix 4:

Final Remuneration means in relation to a Member at the date of commencement of his pension from the relevant Section, or the date on which he ceases to be a Current Member, if earlier, the highest of:

(a) his highest total yearly remuneration from the Employers for any one of the last five years, except that in calculating the remuneration for any such year (the Relevant Year) the amount of any fluctuating emoluments shall be taken as the yearly average over a period of three or more years (or, with the consent of the Board of the Inland Revenue, such lesser period as the Member has been in receipt of such emoluments) ending on the last day of the Relevant Year provided that for such purpose the fluctuating emoluments for a year other than the Relevant Year may be increased in proportion to any increase in the Index from the last day of that year up to the last day of the Relevant Year; and

(b) the highest yearly average of his total emoluments from the Employers for any period of three or more consecutive years ending not more than ten years before the said date; and

(c) in the case only of a Member who dies in Service, the yearly average of any fluctuating emoluments over a period of three or more years (or such lesser period as he was in receipt of such emoluments) ending at the date of his death and subject, with the necessary alterations in point of detail, to the proviso to sub-paragraph (a) above together with the yearly rate of all other remuneration from the Employers applicable immediately before the date of his death; and

(d) in the case only of a deceased Member his highest total emoluments from the Employers for any year ending not more than three years before the date of his death;

provided that:

(i) a Member’s remuneration or other emoluments shall for this purpose include remuneration assessed or assessable under Schedule E from a sick pay or permanent health insurance scheme of the Employer (being a scheme under which benefit will not continue beyond Normal Pension Date), benefits in kind to the extent that they are assessed or assessable under Schedule E as emoluments and otherwise to the extent agreed by the Board of Inland Revenue for this purpose, and directors' fees other than any to which the Member is not beneficially entitled or any which are treated for tax purposes as a receipt of a profession; but

(ii) except in respect of a Member who dies in Service, a Member’s remuneration or other emoluments for this purpose shall not include anything in respect of which tax is chargeable by virtue of section 148 of the Taxes Act or any amounts which arise from the acquisition or disposal of shares or an interest in shares or from a right to acquire shares where the rights were acquired on or after 17th March 1987,

(iii) if the Member’s remuneration had been reduced for more than ten years on account of incapacity, his Final Remuneration may be calculated by reference to the date of such reduction; and

(iv) in calculating a Member’s remuneration for any year the amount thereof may be deemed to be increased in proportion to any increase in the Index over the period since the end of such year; and

(v) the alternative in (a) above shall not apply in respect of a Member (other than a deceased Member) who is a Controlling Director; and

(vi) any excess of the amount calculated in accordance with this definition over the Permitted Maximum shall be disregarded.