The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001

Separate periods of Pensionable Service

32.6—(a) If a Member of the CAA Section is entitled to benefit from the CAA Section in respect of separate periods of Pensionable Service, then for the purpose of determining the amount of his entitlement to such benefit each such period shall except insofar as the provisions of Appendix 4 are concerned, and except as described paragraph (b) below, be treated separately as though it were his only period of Pensionable Service, provided always that:

(i) in a case where the earlier of any two periods of Pensionable Service was one during which the Member was for the purposes of the Pension Schemes Act 1993 in contracted-out employment by reference to the CAA Section and which has under the provisions of that Act not been treated as terminated, the foregoing shall not apply and the two periods of Pensionable Service shall for the purposes of calculating the total benefits in respect of the Member under the CAA Section be treated as continuous; and

(ii) in respect of a Class A Member who is Controlling Director who has a period of Service with more than one Employer, any period of his Service with an Employer which is associated with another Employer by virtue of a permanent community of interest rather than because one Employer is controlled by the other or both are controlled by a third party (control for this purpose having the meaning in section 840 of the Taxes Act(1) or, in the case of a close company, section 416 of that Act) shall be treated separately from any other period of the Member’s Service for the purposes of Appendix 4.

(b) Notwithstanding paragraph (a) above, a Member of the CAA Section who on ceasing to be in the employment of any of the Employers retained an entitlement to benefit under the CAA Section and who recommences Pensionable Service under the CAA Section within one year (or such longer period as the Trustees may in their discretion allow) may, provided that Rule 33 or 34 has not been applied in respect of him and that he is not in receipt of a pension from the CAA Section, elect by notice in writing to the Trustees that such earlier and later periods of Pensionable Service shall be deemed to be one continuous period of Pensionable Service subject to the following conditions:

(i) any amounts included within the earlier period by virtue of sub-paragraphs (a) and (c) of the definition of Pensionable Service (or the corresponding terms of the Previous Scheme Provisions) shall be excluded;

(ii) the Member shall complete such forms of discharge of liability in respect of any entitlement to benefit relating to such earlier period of Pensionable Service as the Trustee shall require;

(iii) the Member shall pay to the Trustees a sum equal to any amount paid to him from the CAA Section in respect of his earlier period of Pensionable Service and any amounts of tax for which the Trustees became liable as a result of such payment together with compound interest on such amount at 3% per annum (but excluding any amount relating to periods of Pensionable Service excluded in accordance with condition (i) above).

(1)

1988 c. 1.