The Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (Northern Ireland) 2003

Effect of cessation of new employment

18.—(1) Where an eligible person who has been awarded a credited period has ceased to hold a new employment in which he was a Scheme member or an assumed member, and the sum, in years, of –

(a) his earlier extra service adjusted in accordance with paragraph (4) of regulation 8 if paragraph (3) of that regulation applies to him;

(b) his credited period, reduced as may be necessary in accordance with paragraph (5); and

(c) his total membership for the purpose of calculating under the Pension Regulations, on the relevant assumptions, his retirement pension on cessation of his new employment,

exceeds the total membership which would have been used for the purpose of that calculation if he had held his terminated employment until his 65th birthday, his employing authority must reduce his annual compensation by such amount as it considers appropriate.

(2) For the purposes of this regulation, “total membership” includes membership which would be excluded by virtue of paragraph (4) of regulation 8 of the Pension Regulations (periods of membership: “total membership”).

(3) In deciding what is appropriate, the employing authority must seek to secure that the person is not able to obtain for himself or for any dependant of his greater financial benefits under these Regulations and the Pension Regulations than those to which he or they would have been entitled had he remained in his terminated employment until age 65.

(4) But if the position referred to in paragraph (3) cannot be secured by reduction of his annual compensation, his entitlement to that compensation shall cease.

(5) Where there has been a reduction of a person’s annual compensation in accordance with this regulation on account of a period of previous new employment or part of such a period (“the abatement period”) then, for the purposes of paragraph (1)(b), the length of his credited period shall be reduced by the abatement period.

(6) For the purposes of this regulation –

“new employment” shall not include employment with an admission body unless the person was eligible to be a member of the Scheme in that employment; and

“terminated employment” in paragraphs (1) and (3) refers, where there is more than one, to the first of them.