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SCHEDULES

SCHEDULE 4REVENUE RESTRICTIONS

Maximum additions under regulations 55 and 57

8.—(1) The maximum addition under regulation 55 or 57 is –

(a)the period (if any) by which the person’s potential period of membership falls short of 40 years; or

(b)his potential period of membership,

whichever is the shorter.

(2) His potential period of membership is the period he would be entitled to count as a period of membership in relation to his local government employment, assuming –

(a)if he is not an active member on the date of the resolution, that he became such a member on that date; and

(b)that he continued as an active member until his normal retirement date.

(3) If –

(a)the resolution under regulation 55 relates to a person who on the date of the resolution has retained rights; or

(b)on the date of the election under regulation 57 the member has retained rights,

the period of 40 years mentioned in sub-paragraph (1) must be reduced by the appropriate period.

(4) The appropriate period is such period as is certified by an actuary appointed by the Committee to be sufficient to secure –

(a)that the aggregate of –

(i)the relevant income benefits, and

(ii)the pension equivalent of the relevant capital benefits,

will not exceed two-thirds of his final remuneration; and

(b)that his retirement grant or , in the case of a Class C member, the aggregate of the retirement grant attributable to his period of membership before his normal retirement date and any retained rights in lump sum form, will not exceed his final remuneration by more than 50 per cent.

(5) In this regulation –

(6) For the purposes of sub-paragraphs (4) and (5) –

(a)it is to be assumed that the person will, until his normal retirement date, continue in the same employment and on the same terms and conditions (including, in particular, his scale of pay) as at the date of the resolution or, as the case may be, the election (assuming, if he has not entered the employment of the authority at that date, that he had done so on that date on the scale of pay at which the employment was offered to him);

(b)any period of membership on or after that date is to be disregarded; and

(c)regard is to be had to any advice from the Commissioners of Inland Revenue as to the calculation of the value of the earlier benefits.