xmlns:atom="http://www.w3.org/2005/Atom"

PART IIICOMPENSATION FOR PREMATURE RETIREMENT

Adjustments to compensation: new employment

Reduction of annual compensation during new employment

16.—(1) If during any period during which a person holds a new employment the aggregate annual rate of—

(a)annual compensation payable to him;

(b)remuneration of his new employment; and

(c)retirement pension payable to him in relation to his former employment,

exceeds the annual rate of remuneration of his former employment, then, subject to paragraph (2), the rate of annual compensation payable to him in respect of that period shall be reduced by the amount of the excess.

(2) If concurrently with his former employment and during the period of 12 months ending with the material date a person who is entitled to annual compensation held any other employment with a LGPS employer or a relevant Scottish employer (“concurrent employment”), then, if—

(a)he ceased to hold the concurrent employment before the material date without having become entitled to receive a retirement pension in relation to it and enters new employment within 12 months after ceasing to hold the concurrent employment; or

(b)he ceases to hold the concurrent employment on or after the material date without having become so entitled and has later entered new employment,

his annual compensation shall only be reduced in relation to his new employment—

(i)if he spends in the new employment a time materially greater than the time which during the 12 months ending with the day on which he ceased to hold the concurrent employment he spent in that employment; and

(ii)if, and to the extent that, the aggregate annual rate mentioned in paragraph (1) exceeds the aggregate of—

(I)the annual rate of remuneration of his former employment; and

(II)the annual rate of remuneration of the concurrent employment during that year.

(3) In this regulation “retirement pension” means—

(a)a pension under regulation D5, D6, D7 or D9 of the LGPS Regulations (including an annual pension within the meaning of paragraph 1(2) of Schedule D5 to those Regulations); or

(b)an occupational pension.

(4) In this regulation “annual compensation”, in relation to a person, means—

(a)in paragraph (1)(a), the annual compensation payable to him under regulation 10; and

(b)elsewhere, the annual compensation which would, apart from regulation 15 and this regulation, be payable to him under these Regulations.

(5) For the purposes of this regulation, references to the “annual rate” of retirement pension or of the remuneration of a former employment or concurrent employment are references to the annual rate of such a pension or remuneration with official increases.

(6) In paragraph (5) “official increases”, in relation to a pension or remuneration, means the increases (if any) by which an annual pension of an amount equal to the annual rate of that pension or remuneration would have been increased under the Pensions (Increase) Act 1971(1) during the period ending with the day immediately preceding the day on which the person in question entered the new employment, on the assumption—

(a)that that pension were specified in Part II of Schedule 2 to that Act and began for the purposes of that Act on the day the pension actually began or, as the case may be, the next day after that on which he ceased to hold the employment; and

(b)that he had on that day attained the age of 55.

(7) In calculating the annual rate of remuneration of a former, concurrent or new employment, paragraph 5 of Schedule D5 to the LGPS Regulations (re-employed pensioners) shall apply on the relevant assumptions—

(a)as if a former or concurrent employment were a former employment, and a new employment were a new employment, within the meaning of that paragraph; and

(b)with respect to paragraph 5(1)(a), as if the source of entitlement were the LGPS Regulations;

but, in relation to a period of special service, paragraph 5(2)(b) of that Schedule shall have effect as if the words “or he made” onwards were omitted.