Calculation of amount of premature retirement pensionN.I.
7.—(1) The annual rate of premature retirement pension payable to the member (M) is found by—
(a)taking the amount of full retirement earned pension specified in M's pensioner member's account;
(b)applying the actuarial reduction (if any) specified in that account in relation to that amount;
(c)subtracting the conversion amount (if any) specified in that account in relation to that amount;
(d)subtracting the allocation amount (if any) specified in that account in relation to that amount;
(e)adding the amount of full retirement additional pension (if any) specified in that account;
(f)applying the actuarial reduction (if any) specified in that account in relation to that amount; and
(g)subtracting the conversion amount (if any) specified in that account in relation to that amount.
(2) Sub-paragraph (3) applies if—
(a)M has received a related payment in respect of the termination of the employment;
(b)the terms and conditions relating to the employment require the payment to be reduced to take account of any contribution the employing authority is required to make to the scheme manager pursuant to regulation 34; and
(c)the payment has not been reduced.
(3) The amount of the payment (or, if there is more than one payment, the aggregate amount of those payments) is deducted from the amount of the pension.
(4) Sub-paragraph (5) applies—
(a)the reason for the termination is redundancy; and
(b)the contribution paid by the employing authority under regulation 34 is insufficient to meet the cost of the pension.
(5) The amount of pension is reduced by the amount which the cost exceeds the payment.
(6) In sub-paragraph (2) a related payment is—
(a)a redundancy payment under the Employment Rights (Northern Ireland) Order 1996 M1,
(b)a corresponding payment under the arrangements of the Whitley Councils for the Health Services of Great Britain.
(7) The cost referred to in sub-paragraph (4) is the amount which the scheme manager determines is necessary to buy out the cost of the actuarial reduction that would apply if the pension were calculated under paragraph 6 of this Schedule.
(8) The cost does not include the cost of early payment of an additional pension under Chapter 5 of Part 4.
(9) In determining the amount under sub-paragraph (7), the scheme manager must have regard to the advice of the scheme actuary.
(10) For the purposes of sub-paragraph (1)(b), the actuarial reduction must take account of—
(a)any buy-out election under Chapter 3 of Part 4;
(b)the scheme years that fall within the buy-out period (see regulation 44(6)); and
(c)in relation to each such scheme year, the number of years in respect of which the actuarial reduction is bought out.
Marginal Citations