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4.—(1) In this Schedule, “relevant earnings” in relation to a person in service as a member of the armed forces means—
(a)basic pay for a person of the person’s rank and seniority, and
(b)any other amount if and to the extent that the Secretary of State has determined that it is to be treated as relevant earnings for this purpose.
(2) Subject to sub-paragraph (1)(b), “relevant earnings” does not include—
(a)any allowances,
(b)any additional amounts payable in respect of particular qualifications or duties, the location of service or the conditions in which service is temporarily performed, or
(c)any additional amounts payable to medical or dental officers as such.
(3) In the case of a person who has served on flexible terms during any period for which relevant earnings are to be calculated under sub-paragraph (1), that person’s relevant earnings are to be calculated as though they had not served on flexible terms for that period.
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