Amendment of Schedule 11E+W
7.—(1) Schedule 11 (determination of pensionable earnings: setting contribution rates) is amended as follows.
(2) In paragraph 2 (continuous employment spanning two scheme years)—
(a)in sub-paragraph (1)—
(i)for “Sub-paragraph (2)” substitute “This paragraph”;
(ii)for the words from “(M)” to the end substitute—
“(“M”) who—
(a)is in pensionable employment with the same employing authority on both—
(i)the last day of the previous scheme year; and
(ii)the first day of the current scheme year; and
(b)falls within any of the cases in sub-paragraph (2).”
(b)in sub-paragraph (2), for the table of cases substitute—
| “Column 1 | Column 2 |
|---|---|
| CASE 1 | |
M— (a) was in pensionable employment with an employing authority throughout the previous scheme year; and (b) paid contributions in respect of that employment at the same percentage rate throughout that year. | The amount of M’s pensionable earnings received during the previous scheme year. |
| CASE 2 | |
M— (a) was in pensionable employment with an employing authority throughout the previous scheme year; and (b) did not pay contributions in respect of that employment at the same percentage rate throughout that year. | The amount of M’s pensionable earnings determined by the formula—  where— RPE is the pensionable earnings received in respect of M’s employment for the period— (i) starting on the date M’s contribution rate last changed in the previous scheme year; and (ii) ending on the last day of that year; and NDPE is the number of days of pensionable employment with the employing authority for the period— (i) starting on the date M’s contribution rate last changed in that year; and (ii) ending on the last day of that year. |
| CASE 3 | |
M— (a) started pensionable employment with an employing authority during the previous scheme year; and (b) paid contributions in respect of that employment at the same percentage rate from the date the employment started to the last day of that year. | The amount of M’s pensionable earnings determined by the formula— where— RPE is the pensionable earnings received in respect of M’s employment for the period— (i) starting on the date M started that employment in the previous scheme year; and (ii) ending on the last day of that year; and NDPE is the number of days of pensionable employment with the employing authority for the period— (i) starting on the date M started that employment in that year; and (ii) ending on the last day of that year. |
| CASE 4 | |
M— (a) started pensionable employment with an employing authority during the previous scheme year; and (b) did not pay contributions in respect of that employment at the same percentage rate from the date the employment started to the last day of that year. | The amount of M’s pensionable earnings determined by the formula— where— RPE is the pensionable earnings received in respect of M’s employment for the period— (i) starting on the date M’s contribution rate last changed in the previous scheme year; and (ii) ending on the last day of that year; and NDPE is the number of days of pensionable employment with the employing authority for the period— (i) starting on the date M’s contribution rate last changed in that year; and (ii) ending on the last day of that year. |
| CASE 5 | |
M— (a) was in pensionable employment on a part-time basis with an employing authority throughout the previous scheme year and during that year M’s annual rate of pensionable earnings in respect of that employment changed; and (b) paid contributions in respect of that period at the same percentage rate throughout that year. | The amount of M’s pensionable earnings determined by the formula— where— RPE is the pensionable earnings received in respect of M’s employment for the period— (i) starting on the date M’s annual rate of pensionable earnings last changed in the previous scheme year; and (ii) ending on the last day of that year; and NDPE is the number of days of pensionable employment with the employing authority for the period— (i) starting on the date M’s annual rate of pensionable earnings last changed in that year; and (ii) ending on the last day of that year.”. |
(c)omit sub-paragraphs (3) and (4).
(3) After paragraph 2, insert—
“Members who do not fall within any of the cases in paragraph 2
2A.—(1) This paragraph applies for the purpose of determining the relevant contribution rate for the current scheme year for a member who—
(a)is in pensionable employment with the same employing authority on both—
(i)the last day of the previous scheme year; and
(ii)the first day of the current scheme year; and
(b)does not fall within any of the cases in paragraph 2.
(2) Where this paragraph applies—
(a)the scheme manager must determine the amount of the member’s pensionable earnings; and
(b)the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in paragraph (3A) of regulation 30 in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to the amount determined under paragraph (a).
(3) For the purposes of sub-paragraph (2)(a), the scheme manager must take the advice of the scheme actuary and have regard to—
(a)pensionable earnings attributable to pensionable service comparable to that of the member;
(b)prevailing pay scales;
(c)prevailing rates of pensionable allowances.
(4) A member is regarded as being in pensionable employment throughout the previous scheme year regardless of any period in that year during which the member continued to be employed by the same employer but did not make contributions to this scheme.
(5) For the purposes of calculating the member’s pensionable earnings, additional pensionable earnings that the member is treated as having received during an absence from work (see regulation 28) is included.
(6) The amount of pensionable earnings determined in accordance with this paragraph must be rounded down to the nearest whole pound.”.
(4) In paragraph 3 (change to employment or rate of pensionable earnings or allowances)—
(a)in sub-paragraph (1), for “(3)” substitute “(3A)”;
(b)in sub-paragraph (2)(a), for “(3)” substitute “(3A)”;
(c)omit sub-paragraph (4);
(d)for sub-paragraph (5), substitute—
“(5) Where sub-paragraph (1) or (2) applies the scheme manager must determine the member’s pensionable earnings by applying the formula—
where—
EPE is the pensionable earnings that the member’s employing authority estimates will be payable to the member from the date the employment mentioned in that sub-paragraph starts to the end of the current scheme year; and
NDPE is the number of days of pensionable employment from the date the employment starts to the end of that year.”;
(e)in sub-paragraph (7), for the words from “(6)” to the end substitute “(6) is to be taken as such amount as the employing authority considers appropriate for the current scheme year”.