Abatement of annual compensation during further employment
8.—(1) This regulation applies where the amount of retirement pension paid to a person is reduced under regulation E14 of the Superannuation Regulations.
(2) Where this regulation applies—
(a)where by virtue of regulation E14(3)(a) of the Superannuation Regulations no retirement pension is paid during a tax year, no compensation shall be paid in that tax year; and
(b)in any other case the compensation to which the person is entitled under regulation 7 in any tax year shall be reduced if necessary so as to secure that the compensation paid during that tax year does not exceed
where—
A has the same meaning as in regulation E14 of the Superannuation Regulations,
R is the full annual rate of the person’s compensation under regulation 7 during the tax year in question as increased under the Pensions (Increase) Act (Northern Ireland) 1971(1), and
S is the total of—
the full annual rate of the person’s retirement pension;
the full annual rate of compensation payable under regulation 7; and
the full annual rate of all compensation payable under regulation 12;
for the tax year in question as increased under the Pensions (Increase) Act (Northern Ireland) 1971.
(3) Where compensation falls to be reduced under paragraph (2) (b) in any tax year the compensating authority shall pay the compensation in accordance with regulation 25 at the rate which is appropriate without taking account of the reduction until the amount to which the compensation is to be reduced (on the assumption that the person will remain in employment at the same salary for the remainder of the tax year) has been paid.
(4) Once the appropriate amount of compensation has been paid as mentioned in paragraph (3) no further payment shall be made during that tax year unless the person ceases to be in the employment or is in employment at a lower salary in which case the compensating authority shall pay compensation during the remainder of the tax year to the person of such amount and at such times as is necessary in order to secure the result described in paragraph (2).