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[F1SCHEDULE 2AU.K.DETERMINATION OF ILL HEALTH AND INTERIM ILL HEALTH PAYMENTS

Textual Amendments

Cap on expected pension and actual pensionU.K.

7.—[F2(1) Where the amount of a qualifying member’s expected pension determined in accordance with paragraph 2, 3 or 3A multiplied by 0.9 exceeds the FAS cap—

(a)the amount of the ill health payment or interim ill heath payment payable to, or in respect of, that member under paragraph 2, 2A, 3 or 3A shall be determined on the basis that the product of that calculation was the amount of the FAS cap; and

(b)the amount “A” under paragraph 2 for the purposes of paragraph (b)(i) in the definition of “underlying rate” in paragraph 9 shall be the amount of the FAS cap;]

(2) Where the amount of a qualifying member’s actual pension or interim pension determined in accordance with this Schedule exceeds—

(a)the amount of the qualifying member’s expected pension determined in accordance with paragraph 2 or 3 multiplied by 0.9; or

(b)[F3the FAS cap],

no ill health payment or interim ill health payment shall be payable to, or in respect of, that member.]

[F4(3) In this paragraph, [F5the standard amount] is—

(a)where the qualifying member became entitled to an ill health payment in the period beginning on 1st April 2008 and ending on 31st March 2009, £27,987;

(b)where the qualifying member became entitled, or becomes entitled, to an ill health payment in the period beginning on 1st April 2009 and ending on 31st March 2010, £29,386; F6...

[F7(c)where the qualifying member becomes entitled to an ill health payment in the period beginning on 1st April 2010 and ending on 31st March 2011, £29,386; and

(d)where the beneficiary becomes entitled to an ill health payment after 31st March 2011, the amount determined in accordance with sub-paragraph (4).]

(4) For each successive period of 12 months from [F81st April 2011], [F9the standard amount] shall be—

(a)where paragraph (b) does not apply, the amount of [F9the standard amount] for the previous period of 12 months increased by the percentage increase [F10in the general level of prices] for the period of 12 months ending on the 30th September falling within that previous period of 12 months; or

(b)where there is no such percentage increase, the amount of [F9the standard amount] for the previous period of 12 months.

(5) Where the amount of [F11the standard amount] determined in accordance with sub-paragraph [F12(3)(d)] results in a fraction of a pound, that fraction shall be treated as a pound.]

Textual Amendments