3.—(1) Regulation 3 (Meaning of “superannuable pay”) is amended as provided by paragraphs (2) to (6).
(2) After paragraph (1) insert—
“(1A) Paragraphs (2) to (4) and (5) to (7) apply in respect of superannuable employment before 1st April 2008.”.
(3) After paragraph (4) insert—
“(4A) Paragraphs (4B) to (7) apply in respect of superannuable employment on, or after, 1st April 2008.
(4B) Subject to paragraph (4C), superannuable pay in excess of the permitted maximum will not be ignored.
(4C) Superannuable pay in excess of the permitted maximum will be ignored in respect of additional service being bought under regulation 67 and an unreduced lump sum being bought under regulation 68 if—
(a)the member elected to make such a purchase under regulation 72(3) from a birthday falling before 1st April 2008; and
(b)the member’s superannuable pay was restricted under paragraph (2) before that date; or
(c)the member’s superannuable pay would have been restricted under that paragraph if it had exceeded the permitted maximum.”.
(4) In paragraph (6), for “In these” substitute “Subject to paragraph (6A), in these”.
(5) After paragraph (6) insert—
“(6A) If the superannuable pay of a member credited with any period of superannuable service under regulation 61 (Transfers made under the Public Sector Transfer Arrangements) or regulation 63 (Special terms for transfers in (bulk transfers etc)) has exceeded the permitted maximum and either—
(a)paragraph 20 of Schedule 6 to the Finance Act 1989(1) applied to the member without the modification made by regulation 5 of the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990(2) in respect of benefits derived from all or part of that service under another scheme; or
(b)any equivalent scheme provision applied to the member in respect of all or part of that service when that person was a member of the scheme from which the transfer was accepted,
that excess shall be ignored for the purposes of calculating the final year’s superannuable pay under paragraph (6) in respect of the corresponding period of superannuable service credited under regulation 61 or 63.”.
(6) For paragraph (7) substitute—
“(7) In this regulation, “permitted maximum” means—
(a)in relation to any tax year before the tax year 2006-07, the figure specified for that tax year in an order made under section 590C of the Income and Corporation Taxes Act 1988; or
(b)subject to paragraphs (8) and (9), the figure for any later year is £108,600.
(8) If the retail prices index for the month of September preceding the tax year 2007-08 or any later tax year is higher than it was for the previous September, the figure for that year shall be an amount arrived at by—
(a)increasing the figure for the previous tax year by the same percentage as the percentage increase in the retail prices index; and
(b)if the result is not a multiple of £600, rounding it up to the nearest amount which is such a multiple.
(9) If the retail prices index for the month of September preceding the tax year 2007-08 or the month of September preceding any later tax year is not higher than it was for the previous September, the figure for that year shall be the same as for the previous tax year.”.