Police Service of Northern Ireland and Police Service of Northern Ireland Reserve (Full-Time) (Severance) Regulations 2003

Regulation 9

PART III capping mechanism formula

1.  Benefits of severance will not exceed the amount calculated as potential earnings, where this occurs the difference will be deducted from the member’s severance lump sums.

2.  In paragraph 1:

“benefits of severance” means the member’s severance lump sum, by virtue of the Schedule Part II paragraphs 1-4, in addition to his gross pension entitlement before commutation, payable between the date of leaving and compulsory retirement age or the expiry of his existing period of extension of service;

“potential earnings” means the member’s basic salary plus any standing allowances he would have earned by remaining as a member between the date of leaving until compulsory retirement age or the end of the existing extension of service.