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59.—(1) A phased retirement pension ceases to be payable to a person (P) from the date on which, following an increase in contributable salary other than a standard increase, the annual rate of P's contributable salary during the 12 months beginning on the relevant date exceeds 80% of—
(a)where P satisfied Condition 1 of regulation 57 (election to receive phased retirement benefits) when making the election (“the failed election”), the average annual rate of P's contributable salary during the 6 months before the reduction mentioned in paragraph (2)(b) of that regulation, or
(b)where P satisfied Condition 2 of that regulation when making the failed election, the average annual rate of P's contributable salary in the last 6 months of the previous employment.
(2) Where a pension ceases to be payable in accordance with paragraph (1)—
(a)the failed election is to be taken into account in determining for the purpose of regulation 57(8) (election to receive phased retirement benefits) the number of occasions on which P makes an election under that regulation;
(b)if P makes a subsequent election under regulation 57—
(i)the subsequent election is to be treated as P's first for the purpose of regulation 57(7) (election to receive phased retirement benefits),
(ii)the notice under regulation 57(12) (election to receive phased retirement benefits) in respect of the subsequent election must specify the same or a greater fraction of P's NPA 60 and NPA 65 reckonable service as was specified in the notice of the failed election, and
(iii)where P made an election to receive an additional pension with the failed election under regulation 73 (election to receive additional pension with phased retirement pension), P must make such an election with the subsequent election.
(3) In this regulation—
“contributable salary” is to be construed in accordance with regulation 57;
“relevant date” has the same meaning as in regulation 57(9);
“standard increase” means an increase in contributable salary which—
is applied generally to persons in the position of the employee in question in accordance with an order made under section 122 of EA 2002 or, where the employee is not a school teacher for the purposes of that section, by the employer, and
is unrelated to any change in the employee's duties or hours of work or otherwise to the particular circumstances of the employee's case.
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